Appendix V 

Applicable State Rules 

EFFECTIVE STATE RULES

10 CSR 10-6.300 Conformity of General Federal Actions to State Implementation Plans

PURPOSE: This rule implements section 176(c) of the Clean Air Act, as amended (42 U.S.C. 7401 et seq.) and

regulations under 40 CFR part 51 subpart W, with respect to the conformity of general federal actions to the

applicable implementation plan. Under those authorities, no department, agency or instrumentality of the federal

government shall engage in, support in any way or provide financial assistance for, license or permit, or approve any

activity which does not conform to an applicable implementation plan. This rule sets forth policy, criteria, and

procedures for demonstrating and assuring conformity of such actions to the applicable implementation plan. This rule

applies to all areas in the state of Missouri which are designated as nonattainment or maintenance for any criteria

pollutant or standard for which there is a national ambient air quality standard.

Editor's Note: The following material is incorporated into this rule by reference:

1) 42 United States Code 7401 and 7472 (Washington D.C.: U.S. Government Printing Office, 1989)

2) 40 Code of Federal Regulatons part 50; part 51, subpart W, Revised as of July 1, 1995; and part 81

(Washington, D.C.: U.S. Government Printing Office, 1995);

3) 23 United States Code (Washington D.C.: U.S. Government Printing Office, 1995);

4) 49 United States Code 1601 and 1607 (Washington, D.C.: U.S. Governmental Printing Office, 1995);

5) 23 United States Code 134 (Washington D.C.: U.S. Government Printing Office, 1995);

6) 40 Code of Federal Regulations (Washington D.C.: U.S. Government Printing Office, 1995);

7) Environmental Protection Agency "Compilation of Air Pollutant Emission Factors (AP42)" 5th Edition, Jan.

1995, Office of Air Quality Planning and Standards, Office of Air and Radiation, E.P.A. Research Triangle Park, NC

27711);

8) Guidelines on Air Quality Models (Revised July 1986) (Research Triangle Park, N.C.: U.S. Environmental

Protection Agency 1986).

In accordance with section 536.031(4), RSMo, the full text of material incorporated by reference will be made

available to any interested person at the Office of the Secretary of State and the headquarters of the adopting state

agency.

(1) General.

(A) No department, agency or instrumentality of the federal government shall engage in, support in any way or

provide financial assistance for, license or permit, or approve any activity which does not conform to an applicable

implementation plan.

(B) Under Clean Air Act (CAA) section 176(c) and 40 CFR part 51 subpart W, a federal agency must make a

determination that a federal action conforms to the applicable implementation plan in accordance with the requirements

of this rule before the action is taken.

(C) Subsection (1)(B) of this rule does not include federal actions where either--

1. A National Environmental Policy Act (NEPA) analysis was completed as evidenced by a final environmental

assessment (EA), environmental impact statement (EIS), or finding of no significant impact (FONSI) that was prepared

prior to January 31, 1994; or

2. All of the following conditions are met:

A. Prior to January 31, 1994, an EA was commenced or a contract was awarded to develop the specific

environmental analysis;

B. Sufficient environmental analysis is completed by March 15, 1994, so that the federal agency may determine

that the federal action is in conformity with the specific requirements and the purposes of the applicable

implementation plan pursuant to the agency's affirmative obligation under section 176(c) of the CAA; and

C. A written determination of conformity under section 176(c) of the CAA has been made by the federal agency

responsible for the federal action by March 15, 1994.

(D) Notwithstanding any provision of this rule, a determination that an action is in conformity with the applicable

implementation plan does not exempt the action from any other requirements of the applicable implementation plan,

the NEPA, or the CAA.

(2) Definitions.

(A) Terms used but not defined in this rule shall have the meaning given them by the CAA and Environmental

Protection Agency's (EPA's) regulations, in that order of priority. Definitions for some terms used in this rule may be

found in 10 CSR 10-6.020.

(B) Additional definitions specific to this rule are as follows:
1. Affected federal land manager—the federal agency or the federal official charged with direct responsibility for

management of an area designated as Class I under the CAA (42 U.S.C. 7472) that is located within one hundred

kilometers (100 km) of the proposed federal action;

2. Applicable implementation plan—the (portion) of the implementation plan, or most recent revision thereof,

which has been approved under section 110 of the CAA, or promulgated under section 110(c) of the CAA (federal

implementation plan), or promulgated or approved pursuant to regulations promulgated under section 301(d) of the

CAA and which implements the relevant requirements of the CAA;

3. Area wide air quality modeling analysis—an assessment on a scale that includes the entire nonattainment or

maintenance area which uses an air quality dispersion model to determine the effects of emissions on air quality;

4. CAA—the Clean Air Act, as amended;

5. Cause or contribute to a new violation—a federal action that—

A. Causes a new violation of a national ambient air quality standard (NAAQS) at a location in a nonattainment

or maintenance area which would otherwise not be in violation of the standard during the future period in question if

the federal action were not taken; or

B. Contributes, in conjunction with other reasonably foreseeable actions, to a new violation of a NAAQS at a

location in a nonattainment or maintenance area in a manner that would increase the frequency or severity of the new

violation;

6. Caused by, as used in the terms "direct emissions" and "indirect emissions"—emissions that would not

otherwise occur in the absence of the federal action;

7. Criteria pollutant or standard—any pollutant for which there is established a NAAQS at 40 CFR part 50;

8. Direct emissions—those emissions of a criteria pollutant or its precursors that are caused or initiated by the

federal action and occur at the same time and place as the action;

9. Emergency—a situation where extremely quick action on the part of the federal agencies involved is needed

and where the timing of such federal activities makes it impractical to meet the requirements of this rule, such as

natural disasters like hurricanes or earthquakes, civil disturbances such as terrorist acts, and military mobilizations;

10. Emissions budgets—those portions of the total allowable emissions defined in an EPA approved revision to

the applicable implementation plan for a certain date for the purpose of meeting reasonable further progress milestones

or attainment or maintenance demonstrations, for any criteria pollutant or its precursors, specifically allocated by the

applicable implementation plan to mobile sources, to any stationary source or class of stationary sources, to any federal

action or class of action, to any class of area sources, or to any subcategory of the emissions inventory. The allocation

system must be specific enough to assure meeting the criteria of section 176(c)(1)(B) of the CAA. An emissions budget

may be expressed in terms of an annual period, a daily period, or other period established in the applicable

implementation plan;

11. Emission offsets, for purposes of section (8) of this rule—emissions reductions which are quantifiable,

consistent with the applicable implementation plan attainment and reasonable further progress demonstrations, surplus

to reductions required by, and credited to, other applicable implementation plan provisions, enforceable under both

state and federal law, and permanent within the time frame specified by the program. Emissions reductions intended to

be achieved as emissions offsets under this rule must be monitored and enforced in a manner equivalent to that under

EPA's new source review requirements;

12. Emissions that a federal agency has a continuing program responsibility for—emissions that are specifically

caused by an agency carrying out its authorities, and does not include emissions that occur due to subsequent activities,

unless such activities are required by the federal agency. Where an agency, in performing its normal program

responsibilities, takes actions itself or imposes conditions that result in air pollutant emissions by a nonfederal entity

taking subsequent actions, such emissions are covered by the meaning of a continuing program responsibility;

13. EPA—the United States Environmental Protection Agency;

14. Federal action—any activity engaged in by a department, agency, or instrumentality of the federal

government, or any activity that a department, agency or instrumentality of the federal government supports in any

way, provides financial assistance for, licenses, permits, or approves, other than activities related to transportation

plans, programs, and projects developed, funded, or approved under Title 23 U.S.C. or the Federal Transit Act (49

U.S.C. 1601 et seq.). Where the federal action is a permit, license, or other approval for some aspect of a nonfederal

undertaking, the relevant activity is the part, portion, or phase of the nonfederal undertaking that requires the federal

permit, license, or approval;

15. Federal agency—for purposes of this rule, a federal department, agency, or instrumentality of the federal

government;

16. Increase the frequency or severity of any existing violation of any standard in any area—to cause a

nonattainment area to exceed a standard more often or to cause a violation at a greater concentration than previously

existed or would otherwise exist during the future period in question, if the project were not implemented;

17. Indirect emissions—those emissions of a criteria pollutant or its precursors that—

A. Are caused by the federal action, but may occur later in time or may be farther removed in distance from the

action itself but are still reasonably foreseeable; and

B. The federal agency can practicably control and will maintain control due to a continuing program

responsibility of the federal agency, including, but not limited to—

(I) Traffic on or to, or stimulated or accommodated by, a proposed facility which is related to increases or

other changes in the scale or timing of operations of such facility;
(II) Emissions related to the activities of employees of contractors or federal employees;

(III) Emissions related to employee commutation and similar programs to increase average vehicle

occupancy imposed on all employers of a certain size in the locality; or

(IV) Emissions related to the use of federal facilities under lease or temporary permit.

18. Local air quality modeling analysis—an assessment of localized impacts on a scale smaller than the entire

nonattainment or maintenance area, including, for example, congested roadway intersections and highways or transit

terminals, which uses an air quality dispersion model to determine the effects of emissions on air quality;

19. Maintenance area—any geographic region of the United States previously designated nonattainment pursuant

to the CAA Amendments of 1990 and subsequently redesignated to attainment subject to the requirement to develop a

maintenance plan under section 175A of the CAA;

20. Maintenance plan—a revision to the applicable implementation plan, meeting the requirements of section

175A of the CAA;

21. Metropolitan planning organization (MPO)—that organization designated as being responsible, together with

the state, for conducting the continuing, cooperative, and comprehensive planning process under 23 U.S.C. 134 and 49

U.S.C. 1607;

22. Milestone—has the meaning given in sections 182(g)(1) and 189(c)(1) of the CAA. A milestone consists of an

emissions level and the date on which it is required to be achieved;

23. National ambient air quality standards (NAAQS)—those standards established pursuant to section 109 of the

CAA and include standards for carbon monoxide (CO), lead (Pb), nitrogen dioxide (NO2

), ozone, particulate matter

(PM10), and sulfur dioxide (SO2);

24. NEPA—the National Environmental Policy Act of 1969, as amended (42 U.S.C. 4321 et seq.);

25. Nonattainment area (NAA)—any geographic area of the United States which has been designated as

nonattainment under section 107 of the CAA and described in 40 CFR part 81;

26. Precursors of a criteria pollutant—

A. For ozone, nitrogen oxides (NOx

) (unless an area is exempted from NOxrequirements under section 182(f)

of the CAA), and volatile organic compounds (VOCs); and

B. For PM10, those pollutants described in the PM10 nonattainment area applicable implementation plan as

significant contributors to the PM10levels;

27. Reasonably foreseeable emissions—projected future indirect emissions that are identified at the time the

conformity determination is made; the location of such emissions is known to the extent adequate to determine the

impact of such emissions; and the emissions are quantifiable, as described and documented by the federal agency based

on its own information and after reviewing any information presented to the federal agency;

28. Regionally significant action—a federal action for which the direct and indirect emissions of any pollutant

represent ten percent (10%) or more of a nonattainment or maintenance area's emissions inventory for that pollutant;

29. Regional water or wastewater projects—include construction, operation, and maintenance of water or

wastewater conveyances, water or wastewater treatment facilities, and water storage reservoirs which affect a large

portion of a nonattainment or maintenance area; and

30. Total of direct and indirect emissions—the sum of direct and indirect emissions increases and decreases

caused by the federal action; that is, the net emissions considering all direct and indirect emissions. Any emissions

decreases used to reduce such total shall have already occurred or shall be enforceable under state and federal law. The

portion of emissions which are exempt or presumed to conform under subsections (3)(C), (D), (E), or (F) of this rule

are not included in the "total of direct and indirect emissions," except as provided in subsection (3)(J). The "total of

direct and indirect emissions" includes emissions of criteria pollutants and emissions of precursors of criteria

pollutants. The segmentation of projects for conformity analyses when emissions are reasonably foreseeable is not

permitted by this rule.

(3) Applicability.

(A) Conformity determinations for federal actions related to transportation plans, programs, and projects developed,

funded, or approved under Title 23 U.S.C. or the Federal Transit Act (49 U.S.C. 1601 et seq.) must meet the procedures

and criteria of 10 CSR 10-2.390 and 10 CSR 10-5.480, in lieu of the procedures set forth in this rule.

(B) For federal actions not covered by subsection (3)(A) of this rule, a conformity determination is required for each

pollutant where the total of direct and indirect emissions in a nonattainment or maintenance area caused by a federal

action would equal or exceed any of the rates in paragraph (3)(B)1. or 2. of this rule.

1. For purposes of subsection (3)(B) of this rule, the following rates apply in nonattainment areas (NAAs):

Tons/Year

Ozone (VOC or NOx)

Serious NAAs 50

Severe NAAs 25

Extreme NAAs 10

Other ozone NAAs outside an

ozone transport region 100
Marginal and moderate NAAs

inside an ozone transport region

VOC 50

NOx 100

Carbon monoxide

All NAAs 100

SO2 or NO2

All NAAs 100

PM10

Moderate NAAs 100

Serious NAAs 70

Pb

All NAAs 25

2. For purposes of subsection (3)(B) of this rule, the following rates apply in maintenance areas:

Tons/Year

Ozone (NOx), SO2 or NO2

All maintenance areas 100

Ozone (VOC)

Maintenance areas inside

an ozone transport region 50

Maintenance areas outside

an ozone transport region 100

Carbon monoxide

All maintenance areas 100

PM10

All maintenance areas 100

Pb

All maintenance areas 25

(C) The requirements of this rule shall not apply to—

1. Actions where the total of direct and indirect emissions are below the emissions levels specified in subsection

(3)(B) of this rule;

2. The following actions which would result in no emissions increase or an increase in emissions that is clearly de

minimis:

A. Judicial and legislative proceedings;

B. Continuing and recurring activities such as permit renewals where activities conducted will be similar in

scope and operation to activities currently being conducted;

C. Rulemaking and policy development and issuance;

D. Routine maintenance and repair activities, including repair and maintenance of administrative sites, roads,

trails, and facilities;

E. Civil and criminal enforcement activities, such as investigations, audits, inspections, examinations,

prosecutions, and the training of law enforcement personnel;

F. Administrative actions such as personnel actions, organizational changes, debt management or collection,

cash management, internal agency audits, program budget proposals, and matters relating to the administration and

collection of taxes, duties and fees;

G. The routine, recurring transportation of material and personnel;

H. Routine movement of mobile assets, such as ships and aircraft, in home port reassignments and stations

(when no new support facilities or personnel are required) to perform as operational groups or for repair or overhaul;

I. Maintenance dredging and debris disposal where no new depths are required, applicable permits are secured,

and disposal will be at an approved disposal site;

J. With respect to existing structures, properties, facilities and lands where future activities conducted will be

similar in scope and operation to activities currently being conducted at the existing structures, properties, facilities,

and lands, actions such as relocation of personnel, disposition of federally-owned existing structures, properties,

facilities, and lands, rent subsidies, operation and maintenance cost subsidies, the exercise of receivership or

conservatorship authority, assistance in purchasing structures, and the production of coins and currency;

K. The granting of leases, licenses such as for exports and trade, permits, and easements where activities

conducted will be similar in scope and operation to activities currently being conducted;

L. Planning, studies, and provision of technical assistance;
M. Routine operation of facilities, mobile assets and equipment;

N. Transfers of ownership, interests, and titles in land, facilities, and real and personal properties, regardless of

the form or method of the transfer;

O. The designation of empowerment zones, enterprise communities, or viticultural areas;

P. Actions by any of the federal banking agencies or the federal reserve banks, including actions regarding

charters, applications, notices, licenses, the supervision or examination of depository institutions or depository

institution holding companies, access to the discount window, or the provision of financial services to banking

organizations or to any department, agency or instrumentality of the United States;

Q. Actions by the Board of Governors of the Federal Reserve System or any federal reserve bank to effect

monetary or exchange rate policy;

R. Actions that implement a foreign affairs function of the United States;

S. Actions (or portions thereof) associated with transfers of land, facilities, title, and real properties through an

enforceable contract or lease agreement where the delivery of the deed is required to occur promptly after a specific,

reasonable condition is met, such as promptly after the land is certified as meeting the requirements of the

Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), and where the federal agency

does not retain continuing authority to control emissions associated with the lands, facilities, title, or real properties;

T. Transfers of real property, including land, facilities, and related personal property from a federal entity to

another federal entity and assignments of real property, including land, facilities, and related personal property from a

federal entity to another federal entity for subsequent deeding to eligible applicants; and

U. Actions by the Department of the Treasury to effect fiscal policy and to exercise the borrowing authority of

the United States;

3. Actions where the emissions are not reasonably foreseeable, such as the following:

A. Initial Outer Continental Shelf lease sales which are made on a broad scale and are followed by exploration

and development plans on a project level; and

B. Electric power marketing activities that involve the acquisition, sale and transmission of electric energy; and

4. Individual actions which implement a decision to conduct or carry out a program that has been found to

conform to the applicable implementation plan, such as prescribed burning actions which are consistent with a land

management plan that has been found to conform to the applicable implementation plan.

(D) Notwithstanding the other requirements of this rule, a conformity determination is not required for the following

federal actions (or portion thereof):

1. The portion of an action that includes major new or modified stationary sources that require a permit under the

new source review (NSR) program (section 173 of the CAA) or the prevention of significant deterioration (PSD)

program (Title I, part C of the CAA);

2. Actions in response to emergencies or natural disasters such as hurricanes, earthquakes, etc., which are

commenced on the order of hours or days after the emergency or disaster and, if applicable, which meet the

requirements of subsection (3)(E) of this rule;

3. Research, investigations, studies, demonstrations, or training other than those exempted under paragraph

(3)(C)2, of this rule, where no environmental detriment is incurred or the particular action furthers air quality research,

as determined by the department;

4. Alteration and additions of existing structures as specifically required by new or existing applicable

environmental legislation or environmental regulations (for example, hush houses for aircraft engines and scrubbers for

air emissions); and

5. Direct emissions from remedial and removal actions carried out under the CERCLA and associated regulations

to the extent such emissions either comply with the substantive requirements of the PSD/NSR permitting program or

are exempted from other environmental regulation under the provisions of CERCLA and applicable regulations issued

under CERCLA.

(E) Federal actions which are part of a continuing response to an emergency or disaster under paragraph (3)(D)2. of

this rule and which are to be taken more than six (6) months after the commencement of the response to the emergency

or disaster under paragraph (3)(D)2. of this rule are exempt from the requirements of this rule only if--

1. The federal agency taking the actions makes a written determination that, for a specified period not to exceed an

additional six (6) months, it is impractical to prepare the conformity analyses which would otherwise be required and

the actions cannot be delayed due to overriding concerns for public health and welfare, national security interests and

foreign policy commitments; or

2. For actions which are to be taken after those actions covered by paragraph (3)(E)1. of this rule, the federal

agency makes a new determination as provided in paragraph (3)(E)1. of this rule.

(F) Notwithstanding other requirements of this rule, individual actions or classes of actions specified by individual

federal agencies that have met the criteria set forth in either paragraph (3)(G)1. or 2. and the procedures set forth in

subsection (3)(H) of this rule are presumed to conform, except as provided in subsection (3)(J) of this rule.

(G) The federal agency must meet the criteria for establishing activities that are presumed to conform by fulfilling

the requirements set forth in either paragraph (3)(G)1. or 2. of this rule.

1. The federal agency must clearly demonstrate using methods consistent with this rule that the total of direct and

indirect emissions from the type of activities which would be presumed to conform would not--

A. Cause or contribute to any new violation of any standard in any area;

B. Interfere with provisions in the applicable implementation plan for maintenance of any standard;
C. Increase the frequency or severity of any existing violation of any standard in any area; or

D. Delay timely attainment of any standard or any required interim emission reductions or other milestones in

any area including, where applicable, emission levels specified in the applicable implementation plan for purposes of—

(I) A demonstration of reasonable further progress;

(II) A demonstration of attainment; or

(III) A maintenance plan; or

2. The federal agency must provide documentation that the total of direct and indirect emissions from such future

actions would be below the emission rates for a conformity determination that are established in subsection (3)(B) of

this rule, based, for example, on similar actions taken over recent years.

(H) In addition to meeting the criteria for establishing exemptions set forth in paragraph (3)(G)1. or 2. of this rule,

the following procedures must also be complied with to presume that activities will conform:

1. The federal agency must identify through publication in the Federal Register its list of proposed activities that

are presumed to conform and the analysis, assumptions, emissions factors, and criteria used as the basis for the

presumptions;

2. The federal agency must notify the appropriate EPA regional office(s), state and local air quality agencies and,

where applicable, the agency designated under section 174 of the CAA and the MPO and provide at least thirty (30)

days for the public to comment on the list of proposed activities presumed to conform;

3. The federal agency must document its response to all the comments received and make the comments, response,

and final list of activities available to the public upon request; and

4. The federal agency must publish the final list of such activities in the Federal Register.

(I) Notwithstanding the other requirements of this rule, when the total of direct and indirect emissions of any

pollutant from a federal action does not equal or exceed the rates specified in subsection (3)(B) of this rule, but

represents ten percent (10%) or more of a nonattainment or maintenance area's total emissions of that pollutant, the

action is defined as a regionally significant action and the requirements of sections (1) and (5) (10) of this rule shall

apply for the federal action.

(J) Where an action presumed to be de minimis under paragraph (3)(C)1. or 2. of this rule or otherwise presumed to

conform under subsection (3)(F) of this rule is a regionally significant action or where an action otherwise presumed to

conform under subsection (3)(F) of this rule does not in fact meet one (1) of the criteria in paragraph (3)(G)1. of this

rule, that action shall not be considered de minimis or presumed to conform and the requirements of sections (1) and (5)

(10) of this rule shall apply for the federal action.

(K) The provisions of this rule shall apply in all nonattainment and maintenance areas.

(L) Any measures used to affect or determine applicability of this rule, as determined under this section, must result

in projects that are in fact de minimis, must result in such de minimis levels prior to the time the applicability

determination is made, and must be state or federally enforceable. Any measures that are intended to reduce air quality

impacts for this purpose must be identified (including the identification and quantification of all emission reductions

claimed) and the process for implementation (including any necessary funding of such measures and tracking of such

emission reductions) and enforcement of such measures must be described, including an implementation schedule

containing explicit timelines for implementation. Prior to a determination of applicability, the federal agency making

the determination must obtain written commitments from the appropriate persons or agencies to implement any

measures which are identified as conditions for making such determinations. Such written commitment shall describe

such mitigation measures and the nature of the commitment, in a manner consistent with the previous sentence. After

this rule is approved by EPA as a revision to the applicable implementation plan, enforceability through the applicable

implementation plan of any measures necessary for a determination of applicability will apply to all persons who agree

to reduce direct and indirect emissions associated with a federal action for a conformity applicability determination.

(4) Conformity Analysis. Any federal department, agency, or instrumentality of the federal government taking an

action subject to 40 CFR part 51 subpart W and this rule must make its own conformity determination consistent with

the requirements of this rule. In making its conformity determination, a federal agency must consider comments from

any interested parties. Where multiple federal agencies have jurisdiction for various aspects of a project, a federal

agency may choose to adopt the analysis of another federal agency (to the extent the proposed action and impacts

analyzed are the same as the project for which a conformity determination is required) or develop its own analysis in

order to make its conformity determination.

(5) Reporting Requirements.

(A) A federal agency making a conformity determination under section (8) must provide to the appropriate EPA

regional office(s), state and local air quality agencies and, where applicable, affected federal land managers, the agency

designated under section 174 of the CAA and the MPO a thirty (30)-day notice which describes the proposed action

and the federal agency's draft conformity determination on the action.

(B) A federal agency must notify the appropriate EPA regional office(s), state and local air quality agencies and,

where applicable, affected federal land managers, the agency designated under section 174 of the CAA and the MPO

within thirty (30) days after making a final conformity determination under section (8).

(6) Public Participation and Consultation.
(A) Upon request by any person regarding a specific federal action, a federal agency must make available for review

its draft conformity determination under section (8) with supporting materials which describe the analytical methods,

assumptions, and conclusions relied upon in making the applicability analysis and draft conformity determination.

(B) A federal agency must make public its draft conformity determination under section (8) by placing a notice by

prominent advertisement in a daily newspaper of general circulation in the areas affected by the action and by

providing thirty (30) days for written public comment prior to taking any formal action on the draft determination. This

comment period may be concurrent with any other public involvement, such as occurs in the NEPA process.

(C) A federal agency must document its response to all the comments received on its draft conformity determination

under section (8) and make the comments and responses available, upon request by any person regarding a specific

federal action, within thirty (30) days of the final conformity determination.

(D) A federal agency must make public its final conformity determination under section (8) for a federal action by

placing a notice by prominent advertisement in a daily newspaper of general circulation in the areas affected by the

action within thirty (30) days of the final conformity determination.

(7) Frequency of Conformity Determinations.

(A) The conformity status of a federal action automatically lapses five (5) years from the date a final conformity

determination is reported under section (5), unless the federal action has been completed or a continuous program has

been commenced to implement that federal action within a reasonable time.

(B) Ongoing federal activities at a given site showing continuous progress are not new actions and do not require

periodic redeterminations so long as the emissions associated with such activities are within the scope of the final

conformity determination reported under section (5).

(C) If, after the conformity determination is made, the federal action is changed so that there is an increase in the

total of direct and indirect emissions above the levels in subsection (3)(B), a new conformity determination is required.

(8) Criteria for Determining Conformity of General Federal Actions.

(A) An action required under section (3) to have a conformity determination for a specific pollutant, will be

determined to conform to the applicable implementation plan if, for each pollutant that exceeds the rates in subsection

(3)(B), or otherwise requires a conformity determination due to the total of direct and indirect emissions from the

action, the action meets the requirements of subsection (8)(C) of this rule, and meets any of the following requirements:

1. For any criteria pollutant, the total of direct and indirect emissions from the action are specifically identified

and accounted for in the applicable implementation plan's attainment or maintenance demonstration;

2. For ozone or nitrogen dioxide, the total of direct and indirect emissions from the action are fully offset within

the same nonattainment or maintenance area through a revision to the applicable implementation plan or a measure

similarly enforceable under state and federal law that effects emission reductions so that there is no net increase in

emissions of that pollutant;

3. For any criteria pollutant, except ozone and nitrogen dioxide, the total of direct and indirect emissions from the

action meet the requirements—

A. Specified in subsection (8)(B) of this rule, based on areawide air quality modeling analysis and local air

quality modeling analysis; or

B. Specified in paragraph (8)(A)5. of this rule and, for local air quality modeling analysis, the requirement of

subsection (8)(B) of this rule;

4. For CO or PM10—

A. Where the department determines (in accordance with sections (5) and (6) and consistent with the applicable

implementation plan) that an areawide air quality modeling analysis is not needed, the total of direct and indirect

emissions from the action meet the requirements specified in subsection (8)(B) of this rule, based on local air quality

modeling analysis; or

B. Where the department determines (in accordance with sections (5) and (6) and consistent with the applicable

implementation plan) that an areawide air quality modeling analysis is appropriate and that a local air quality modeling

analysis is not needed, the total of direct and indirect emissions from the action meet the requirements specified in

subsection (8)(B) of this rule, based on areawide modeling, or meet the requirements of paragraph (8)(A)5. of this rule;

or

5. For ozone or nitrogen dioxide, and for purposes of subparagraphs (8)(A)3.B. and (8)(A)4.B. of this rule, each portion

of the action or the action as a whole meets any of the following requirements:

A. Where EPA has approved a revision to an area's attainment or maintenance demonstration after 1990 and the

state makes a determination as provided in part (I) or where the state makes a commitment as provided in part (II). Any

such determination or commitment shall be made in compliance with sections (5) and (6).

(I) The total of direct and indirect emissions from the action (or portion thereof) is determined and

documented by the department to result in a level of emissions which, together with all other emissions in the

nonattainment (or maintenance) area, would not exceed the emissions budgets specified in the applicable

implementation plan.

(II) The total of direct and indirect emissions from the action (or portion thereof) is determined by the

department to result in a level of emissions which, together with all other emissions in the nonattainment (or

maintenance) area, would exceed an emissions budget specified in the applicable implementation plan and the

department makes a written commitment to EPA which includes the following:
(a) A specific schedule for adoption and submittal of a revision to the applicable implementation plan

which would achieve the needed emission reductions prior to the time emissions from the federal action would occur;

(b) Identification of specific measures for incorporation into the applicable implementation plan which

would result in a level of emissions which, together with all other emissions in the nonattainment or maintenance area,

would not exceed any emissions budget specified in the applicable implementation plan;

(c) A demonstration that all existing applicable implementation plan requirements are being implemented

in the area for the pollutants affected by the federal action, and that local authority to implement additional

requirements has been fully pursued;

(d) A determination that the responsible federal agencies have required all reasonable mitigation measures

associated with their action; and

(e) Written documentation including all air quality analyses supporting the conformity determination.

(III) Where a federal agency made a conformity determination based on a state commitment under part

(8)(A)5.A.(II) of this rule, such a state commitment is automatically deemed a call for an implementation plan revision

by EPA under section 110(k)(5) of the CAA, effective on the date of the federal conformity determination and

requiring response within eighteen (18) months or any shorter time within which the state commits to revise the

applicable implementation plan;

B. The action (or portion thereof), as determined by the MPO, is specifically included in a current transportation

plan and transportation improvement program which have been found to conform to the applicable implementation

plan under 10 CSR 10-2.390 or 10 CSR 10-5.480;

C. The action (or portion thereof) fully offsets its emissions within the same nonattainment or maintenance area

through a revision to the applicable implementation plan or an equally enforceable measure that effects emission

reductions equal to or greater than the total of direct and indirect emissions from the action so that there is no net

increase in emissions of that pollutant;

D. Where EPA has not approved a revision to the relevant implementation plan attainment or maintenance

demonstration since 1990, the total of direct and indirect emissions from the action for the future years (described in

subsection (9)(D) of this rule) do not increase emissions with respect to the baseline emissions, and--

(I) The baseline emissions reflect the historical activity levels that occurred in the geographic area affected by

the proposed federal action during-—

(a) Calendar year 1990;

(b) The calendar year that is the basis for the classification (or, where the classification is based on

multiple years, the year that is most representative in terms of the level of activity), if a classification is promulgated in

40 CFR part 81; or

(c) The year of the baseline inventory in the PM10 applicable implementation plan; and

(II) The baseline emissions are the total of direct and indirect emissions calculated for the future years

(described in subsection (9)(D) of this rule) using the historic activity levels (described in part (8)(A)5.D.(I) of this

rule) and appropriate emission factors for the future years; or

E. Where the action involves regional water or wastewater projects, such projects are sized to meet only the

needs of population projections that are in the applicable implementation plan, based on assumptions regarding per

capita use that are developed or approved in accordance with subsection (9)(A).

(B) The areawide and local air quality modeling analyses must--

1. Meet the requirements in section (9); and

2. Show that the action does not--

A. Cause or contribute to any new violation of any standard in any area; or

B. Increase the frequency or severity of any existing violation of any standard in any area.

(C) Notwithstanding any other requirements of this section, an action subject to this rule may not be determined to

conform to the applicable implementation plan unless the total of direct and indirect emissions from the action is in

compliance or consistent with all relevant requirements and milestones contained in the applicable implementation

plan, such as elements identified as part of the reasonable further progress schedules, assumptions specified in the

attainment or maintenance demonstration, prohibitions, numerical emission limits, and work practice requirements, and

such action is otherwise in compliance with all relevant requirements of the applicable implementation plan.

(D) Any analyses required under this section must be completed, and any mitigation requirements necessary for a

finding of conformity must be identified in compliance with section (10), before the determination of conformity is

made.

(9) Procedures for Conformity Determinations of General Federal Actions.

(A) The analyses required under this rule must be based on the latest planning assumptions.

1. All planning assumptions (including, but not limited to, per capita water and sewer use, vehicle miles traveled

per capita or per household, trip generation per household, vehicle occupancy, household size, vehicle fleet mix,

vehicle ownership, wood stoves per household, and the geographic distribution of population growth) must be derived

from the estimates of current and future population, employment, travel, and congestion most recently developed by the

MPO. The conformity determination must also be based on the latest assumptions about current and future background

concentrations and other federal actions.
2. Any revisions to these estimates used as part of the conformity determination, including projected shifts in

geographic location or level of population, employment, travel, and congestion, must be approved by the MPO or other

agency authorized to make such estimates for the area.

(B) The analyses required under this rule must be based on the latest and most accurate emission estimation

techniques available as described below, unless such techniques are inappropriate. If such techniques are inappropriate

and written approval of the EPA regional administrator is obtained for any modification or substitution, they may be

modified or another technique substituted on a case-by-case basis or, where appropriate, on a generic basis for a

specific federal agency program.

1. For motor vehicle emissions, the most current version of the motor vehicle emissions model specified by EPA

for use in the preparation or revision of implementation plans in the state or area must be used for the conformity

analysis as specified below:

A. The EPA must publish in the Federal Register a notice of availability of any new motor vehicle emissions

model; and

B. A grace period of three (3) months shall apply during which the motor vehicle emissions model previously

specified by EPA as the most current version may be used. Conformity analyses for which the analysis was begun

during the grace period or no more than three (3) years before the Federal Register notice of availability of the latest

emission model may continue to use the previous version of the model specified by EPA.

2. For nonmotor vehicle sources, including stationary and area source emissions, the latest emission factors

specified by EPA in the "Compilation of Air Pollutant Emission Factors (AP-42)" must be used for the conformity

analysis unless more accurate emission data are available, such as actual stack test data from stationary sources which

are part of the conformity analysis.

(C) The air quality modeling analyses required under this rule must be based on the applicable air quality models,

databases, and other requirements specified in the most recent version of the "Guideline on Air Quality Models

(Revised)" (1986), including supplements (EPA publication no. 450/2-78-027R), unless--

1. The guideline techniques are inappropriate, in which case the model may be modified or another model

substituted on a case-by-case basis or, where appropriate, on a generic basis for a specific federal agency program; and

2. Written approval of the EPA regional administrator is obtained for any modification or substitution.

(D) The analyses required under this rule must be based on the total of direct and indirect emissions from the action

and must reflect emission scenarios that are expected to occur under each of the following cases:

1. The CAA mandated attainment year or, if applicable, the farthest year for which emissions are projected in the

maintenance plan;

2. The year during which the total of direct and indirect emissions from the action for each pollutant analyzed is

expected to be the greatest on an annual basis; and

3. Any year for which the applicable implementation plan specifies an emissions budget.

(10) Mitigation of Air Quality Impacts.

(A) Any measures that are intended to mitigate air quality impacts must be identified (including the identification

and quantification of all emission reductions claimed) and the process for implementation (including any necessary

funding of such measures and tracking of such emission reductions) and enforcement of such measures must be

described, including an implementation schedule containing explicit timelines for implementation.

(B) Prior to determining that a federal action is in conformity, the federal agency making the conformity

determination must obtain written commitments from the appropriate persons or agencies to implement any mitigation

measures which are identified as conditions for making conformity determinations. Such written commitment shall

describe such mitigation measures and the nature of the commitment, in a manner consistent with subsection (10)(A) of

this rule.

(C) Persons or agencies voluntarily committing to mitigation measures to facilitate positive conformity

determinations must comply with the obligations of such commitments.

(D) In instances where the federal agency is licensing, permitting or otherwise approving the action of another

governmental or private entity, approval by the federal agency must be conditioned on the other entity meeting the

mitigation measures set forth in the conformity determination, as provided in subsection (10)(A) of this rule.

(E) When necessary because of changed circumstances, mitigation measures may be modified so long as the new

mitigation measures continue to support the conformity determination in accordance with sections (8) and (9) and this

section. Any proposed change in the mitigation measures is subject to the reporting requirements of section (5) and the

public participation requirements of section (6).

(F) Written commitments to mitigation measures must be obtained prior to a positive conformity determination and

such commitments must be fulfilled.

(G) After this rule is approved by EPA as an implementation plan revision, any agreements, including mitigation

measures, necessary for a conformity determination will be both state and federally enforceable. Enforceability through

the applicable implementation plan will apply to all persons who agree to mitigate direct and indirect emissions

associated with a federal action for a conformity determination.
(11) Savings Provision. The federal conformity rules under 40 CFR part 51 subpart W, in addition to any existing

applicable state requirements, establish the conformity criteria and procedures necessary to meet the requirements of

Clean Air Act section 176(c) until such time as this rule is approved by EPA as an implementation plan revision.

Following EPA approval of this rule as a revision to the applicable implementation plan (or a portion thereof), the

approved (or approved portion of the) state criteria and procedures will govern conformity determinations and the

federal conformity regulations contained in 40 CFR part 93 will apply only for the portion, if any, of the state's

conformity provisions that is not approved by EPA. In addition, any previously applicable implementation plan

requirements relating to conformity remain enforceable until the state revises its applicable implementation plan to

specifically remove them and that revision is approved by EPA.

AUTHORITY: section 643.050, RSMo 1994.* Original rule filed Oct. 4, 1994, effective May 28, 1995. Amended: Filed

Jan. 30, 1996, effective Sept. 30, 1996.

*Original authority 1965, amended 1972, 1992, 1993, 1995.
10 CSR 10-6.362 Clean Air Interstate Rule Annual NOx Trading Program

PURPOSE: This rule adopts the U.S. Environmental Protection Agency’s (EPA) regional trading program for nitrogen

oxides, which was developed to meet the requirements of the Clean Air Interstate Rule. The Clean Air Interstate Rule

was published on May 12, 2005. The evidence supporting the need for this proposed rulemaking, per section 536.016,

RSMo, is the U.S. Environmental Protection Agency’s Clean Air Interstate Rule published on May 12, 2005.

PUBLISHER’S NOTE: The secretary of state has determined that the publication of the entire text of the material

which is incorporated by reference as a portion of this rule would be unduly cumbersome or expensive. This material

as incorporated by reference in this rule shall be maintained by the agency at its headquarters and shall be made

available to the public for inspection and copying at no more than the actual cost of reproduction. This note applies

only to the reference material. The entire text of the rule is printed here.

(1) Applicability.

(A) Except as provided in subsection (1)(B) of this rule—

1. The following units in this state shall be Clean Air Interstate Rule (CAIR) nitrogen oxides (NOx) units, and any

source that includes one (1) or more such units shall be a CAIR NOx source, subject to the requirements of this rule:

any stationary, fossil-fuel-fired boiler or stationary, fossil-fuel-fired combustion turbine serving at any time, since the

later of November 15, 1990 or the startup of the unit’s combustion chamber, a generator with nameplate capacity of

more than twenty-five (25) megawatts electric (MWe) producing electricity for sale.

2. If a stationary boiler or stationary combustion turbine that, under paragraph (1)(A)1. of this rule, is not a CAIR

NOx unit begins to combust fossil fuel or to serve a generator with nameplate capacity of more than twenty-five (25)

MWe producing electricity for sale, the unit shall become a CAIR NOx unit as provided in paragraph (1)(A)1. of this

rule on the first date on which it both combusts fossil fuel and serves such generator.

(B) The units in the state that meet the requirements set forth in subparagraph (1)(B)1.A., (1)(B)2.A., or (1)(B)2.B.

of this rule shall not be CAIR NOx units—

1. Cogenerator exemption.

A. Any unit that is a CAIR NOx unit under paragraph (1)(A)1. or 2. of this rule—

(I) Qualifying as a cogeneration unit during the twelve (12)-month period starting on the date the unit first

produces electricity and continuing to qualify as a cogeneration unit; and

(II) Not serving at any time, since the later of November 15, 1990 or the startup of the unit’s combustion

chamber, a generator with nameplate capacity of more than twenty-five (25) MWe supplying in any calendar year more

than one-third of the unit’s potential electric output capacity or two hundred nineteen thousand (219,000) megawatt

hours (MWh), whichever is greater, to any utility power distribution system for sale.

B. If a unit qualifies as a cogeneration unit during the twelve (12)-month period starting on the date the unit first

produces electricity and meets the requirements of subparagraph (1)(B)1.A. of this rule for at least one (1) calendar

year, but subsequently no longer meets all such requirements, the unit shall become a CAIR NOx unit starting on the

earlier of January 1 after the first calendar year during which the unit first no longer qualifies as a cogeneration unit or

January 1 after the first calendar year during which the unit no longer meets the requirements of part (1)(B)1.A.(II) of

this rule.

2. Solid waste incinerator exemption.

A. Any unit that is a CAIR NOx unit under paragraph (1)(A)1. or 2. of this rule commencing operation before

January 1, 1985—

(I) Qualifying as a solid waste incineration unit; and

(II) With an average annual fuel consumption of non-fossil fuel for 1985–1987 exceeding eighty percent

(80%) (on a British thermal unit (Btu) basis) and an average annual fuel consumption of non-fossil fuel for any three

(3) consecutive calendar years after 1990 exceeding eighty percent (80%) (on a Btu basis).

B. Any unit that is a CAIR NOx unit under paragraph (1)(A)1. or 2. of this rule commencing operation on or

after January 1, 1985—

(I) Qualifying as a solid waste incineration unit; and

(II) With an average annual fuel consumption of non-fossil fuel for the first three (3) calendar years of

operation exceeding eighty percent (80%) (on a Btu basis) and an average annual fuel consumption of non-fossil fuel

for any three (3) consecutive calendar years after 1990 exceeding eighty percent (80%) (on a Btu basis).

C. If a unit qualifies as a solid waste incineration unit and meets the requirements of subparagraph (1)(B)2.A. or

B. of this rule for at least three (3) consecutive calendar years, but subsequently no longer meets all such requirements,

the unit shall become a CAIR NOx unit starting on the earlier of January 1 after the first calendar year during which the

unit first no longer qualifies as a solid waste incineration unit or January 1 after the first three (3) consecutive calendar

years after 1990 for which the unit has an average annual fuel consumption of fossil fuel of twenty percent (20%) or

more.

(C) Retired Unit Exemption. Unless otherwise noted in this section of the rule, all of the sections of 40 CFR 96.105

promulgated as of April 28, 2006 are hereby incorporated by reference in this rule, as published by the Office of the

Federal Register, U.S. National Archives and Records, 700 Pennsylvania Avenue NW, Washington, D.C. 20408. This

rule does not incorporate any subsequent amendments or additions.
(2) Definitions.

(A) Definitions for key words and phrases used in this rule may be found in sections 40 CFR 96.102 and 96.103 of

40 CFR 96 subpart AA promulgated as of April 28, 2006 are hereby incorporated by reference in this rule, as published

by the Office of the Federal Register, U.S. National Archives and Records, 700 Pennsylvania Avenue NW,

Washington, D.C. 20408. This rule does not incorporate any subsequent amendments or additions.

(B) Definitions of certain terms specified in this rule, other than those defined in this rule section, may be found in

10 CSR 10-6.020.

(3) General Provisions.

(A) Unless otherwise noted in this section of the rule, 40 CFR 96.106, 96.107, and 96.108 as well as all of the

sections of 40 CFR 96 subparts BB, CC (excluding any reference to 40 CFR 96 subpart EE), DD, FF, GG, and II

promulgated as of April 28, 2006 are hereby incorporated by reference in this rule, as published by the Office of the

Federal Register, U.S. National Archives and Records, 700 Pennsylvania Avenue NW, Washington, D.C. 20408. This

rule does not incorporate any subsequent amendments or additions.

(B) NOx Allowances.

1. Timing requirements for CAIR NOx allowance allocations.

A. By October 31, 2006, the permitting authority will submit to the administrator the CAIR NOx allowance

allocations, in a format prescribed by the administrator, for the calendar years in 2009, 2010, 2011, 2012, 2013, and

2014 consistent with the allocations listed in Table I of this rule.

B. By October 31, 2006, the permitting authority will submit to the administrator the CAIR NOx allowance

allocations, in a format prescribed by the administrator, for the calendar year beginning 2015 and extending through ten

(10) calendar years consistent with the allocations listed in Table I of this rule.

C. By October 31, 2015 and October 31 of every tenth year following, the permitting authority will submit to

the administrator the CAIR NOx allowance allocations, in a format prescribed by the administrator, for the calendar

year ten (10) years in the future and extending through ten (10) calendar years consistent with the allocations listed in

Table I of this rule.

2. NOx allowance allocations.

A. The state trading program NOx budget allocated by the director under subparagraphs (3)(B)2.B. and

(3)(B)2.C. of this rule for a calendar year will equal fifty-nine thousand eight hundred seventy-one (59,871) tons for

2009–2014 and forty-nine thousand eight hundred ninety-two (49,892) tons for 2015 and beyond.

B. The following NOx budget units shall be allocated NOx allowances for each calendar year in accordance with

Table I of paragraph (3)(B)2.B. of this rule.
_Table I

NOx Allocation NOx Allocation 2015

Facility ID Facility Name Unit ID Portion Statewide Pool 2009–2014 and Beyond

2076 ASBURY 1 1.842% 1,097 914

2079 HAWTHORN STATION 5A 5.531% 3,294 2,743

2079 HAWTHORN STATION 6 0.053% 31 26

2079 HAWTHORN STATION 7 0.031% 18 15

2079 HAWTHORN STATION 8 0.027% 16 13

2079 HAWTHORN STATION 9 0.116% 69 58

2080 MONTROSE STATION 1 1.530% 911 759

2080 MONTROSE STATION 2 1.589% 947 788

2080 MONTROSE STATION 3 1.581% 942 784

2081 NORTHEAST #11 0.005% 3 2

2081 NORTHEAST #12 0.004% 2 2

2081 NORTHEAST #13 0.011% 7 6

2081 NORTHEAST #14 0.009% 5 5

2081 NORTHEAST #15 0.008% 4 4

2081 NORTHEAST #16 0.005% 3 2

2081 NORTHEAST #17 0.011% 6 5

2081 NORTHEAST #18 0.007% 4 3

2082 FAIRGROUNDS 0.004% 2 2

2092 RALPH GREEN 3 0.015% 9 8

2094 SIBLEY 1 0.514% 306 255

2094 SIBLEY 2 0.512% 305 254

2094 SIBLEY 3 3.319% 1,977 1,646

2096 AMEREN VIADUCT 0.001% — —

2098 LAKE ROAD 6 0.910% 542 452

2098 LAKE ROAD 5 0.009% 5 4

2102 HOWARD BEND 0.002% 1 1

2103 LABADIE 1 4.890% 2,913 2,425

2103 LABADIE 2 5.033% 2,998 2,496

2103 LABADIE 3 5.589% 3,329 2,772

2103 LABADIE 4 5.009% 2,984 2,484

2104 MERAMEC 1 1.225% 730 607

2104 MERAMEC 2 1.134% 676 562

2104 MERAMEC 3 1.966% 1,171 975

2104 MERAMEC 4 2.985% 1,778 1,480

2104 MERAMEC GT1 0.000% 2 2

2104 MERAMEC GT2 0.000% 3 2

2107 SIOUX 1 3.891% 2,318 1,930

2107 SIOUX 2 3.832% 2,282 1,900

2122 CHILLICOTHE 0.003% 2 2

2123 COLUMBIA 6 0.068% 41 34

2123 COLUMBIA 7 0.073% 44 36

2123 COLUMBIA 8 0.001% 1 —

2132 BLUE VALLEY POWER 3 0.270% 161 134

2132 BLUE VALLEY POWER GT1 0.000% — —

2161 JAMES RIVER GT1 0.025% 15 12

2161 JAMES RIVER GT2 0.015% 9 8

2161 JAMES RIVER 3 0.492% 293 244

2161 JAMES RIVER 4 0.604% 360 300

2161 JAMES RIVER 5 1.031% 614 511

2167 NEW MADRID POWER PLANT 1 4.611% 2,747 2,287

2167 NEW MADRID POWER PLANT 2 5.095% 3,035 2,527

2168 THOMAS HILL ENERGY CENTER MB1 1.891% 1,126 938

2168 THOMAS HILL ENERGY CENTER MB2 2.792% 1,663 1,385

2168 THOMAS HILL ENERGY CENTER MB3 6.793% 4,046 3,369

2169 CHAMOIS POWER PLANT 2 0.530% 315 263

6065 IATAN STATION 1 6.699% 3,990 3,322

6074 GREENWOOD ENERGY CENTER 1 0.021% 12 10

6074 GREENWOOD ENERGY CENTER 2 0.020% 12 10

6074 GREENWOOD ENERGY CENTER 3 0.024% 14 12

6074 GREENWOOD ENERGY CENTER 4 0.025% 15 12

6155 RUSH ISLAND 1 4.838% 2,882 2,399
6

155RUSHISLAND24.613%2,7482,287

6195SOUTHWEST12.248%1,3391,115

6195SOUTHWESTCT1A0.005%32

6195SOUTHWESTCT1B0.005%32

6195SOUTHWESTCT2A0.005%32

6195SOUTHWESTCT2B0.005%32

6223EMPIRE3A0.004%22

6223EMPIRE3B0.004%22

6223EMPIRE4A0.003%22

6223EMPIRE4B0.003%22

6563EMPIRE—ENERGYCENTER10.036%2118

6563EMPIRE—ENERGYCENTER20.031%1916

6650MEXICO0.003%22

6651MOBERLY0.002%21

6652MOREAU0.003%22

6768SIKESTON12.612%1,5561,295

7296STATELINEUNIT110.131%7865

7296STATELINEUNIT12-10.204%122101

7296STATELINEUNIT12-20.256%153127

7604ST.FRANCISPOWERPL10.155%9277

7604ST.FRANCISPOWERPL20.117%7058

7749ESSEXPOWERPLANT10.018%119

7754NODAWAYPOWERPLANT10.019%119

7754NODAWAYPOWERPLANT20.018%119

7848HOLDENPOWERPLANT10.004%22

7848HOLDENPOWERPLANT20.006%43

7848HOLDENPOWERPLANT30.004%22

7903MCCARTNEYMGS1A0.002%11

7903MCCARTNEYMGS1B0.002%11

7903MCCARTNEYMGS2A0.002%11

7903MCCARTNEYMGS2B0.002%11

7964PENOCREEKENERGYCTRCT1A0.003%21

7964PENOCREEKENERGYCTRCT1B0.003%21

7964PENOCREEKENERGYCTRCT2A0.003%21

7964PENOCREEKENERGYCTRCT2B0.003%21

7964PENOCREEKENERGYCTRCT3A0.003%21

7964PENOCREEKENERGYCTRCT3B0.003%21

7964PENOCREEKENERGYCTRCT4A0.003%11

7964PENOCREEKENERGYCTRCT4B0.002%11

8567HIGGINSVILLE0.006%33

55178MEPPLEASANTHILLCT-10.166%9982

55178MEPPLEASANTHILLCT-20.153%9176

55234AUDRAINGENERATINGCT10.001%11

55234AUDRAINGENERATINGCT20.001%1—

55234AUDRAINGENERATINGCT30.001%1—

55234AUDRAINGENERATINGCT40.001%1—

55234AUDRAINGENERATINGCT50.001%11

55234AUDRAINGENERATINGCT60.000%——

55234AUDRAINGENERATINGCT70.000%——

55234AUDRAINGENERATINGCT80.001%——

55447COLUMBIAENERGYCTRCT010.001%11

55447COLUMBIAENERGYCTRCT020.001%11

55447COLUMBIAENERGYCTRCT030.001%1—

55447COLUMBIAENERGYCTRCT040.001%——

EnergyEfficiency/RenewableEnergy

setaside300300

Total100.000%59,87149,892
C. Any unit subject to section (1) of this rule other than those listed in Table I of this subsection will not be

allocated NOx budget allowances under this rule.

D. Reserved.

E. Any person seeking set-aside allowances for energy efficiency and renewable generation projects shall meet

the requirements of subparagraph (3)(B)2.E. of this rule.

(I) The purpose for establishing this set-aside is to allocate allowances to serve as incentives for saving or

generating electricity through the implementation of energy efficiency and renewable generation projects as defined in

this section.

(a) Each energy efficiency and renewable generation set-aside shall contain the number of NOx allowances

as provided in Table I of this subsection.

(b) Awards of allowances will be available only to eligible energy efficiency or renewable generation

projects that—

I. Commence operation after September 1, 2005;

II. Reduce electricity use, generate electricity from renewable resources or provide combined heat and

power benefits during the twelve (12)-month energy efficiency/renewable energy project period of January 1, 2008

through December 31, 2008 or subsequent twelve (12)-month energy efficiency/renewable energy project periods; and

III. In an application submitted by March 1 of each year, include adequate documentation of these

energy savings, renewable energy generation or combined heat and power benefits.

(c) Projects will be awarded allowances for the control period following the twelve (12)-month energy

efficiency/

renewable energy project period during which the qualifying project activities took place. For example, sponsors of

project activities that take place during the twelve (12)-month energy efficiency/renewable energy project period of

January 1, 2008 through December 31, 2008 will receive allowances for the 2009 control period.

(d) Eligible projects located in Missouri may qualify for awards from the set-aside for up to seven (7)

consecutive control periods. Eligible projects located outside Missouri may qualify for awards for up to five (5)

consecutive control periods.

(e) Department actions on applications for awards from the set-aside. The department shall act upon

applications as follows:

I. By May 31 of the control period for which NOx allowances are requested, the department shall take

the following actions:

a. For each application, the department shall determine whether the project is eligible and the

application is complete and shall notify the applicant of its determination; and

b. For the eligible and complete applications, the department shall calculate the total number of

allowances which the projects are qualified to receive, not to exceed the total number of allowances allocated to the setaside as provided in Table I of this subsection, and shall award said allowances to eligible energy efficiency or

renewable generation projects.

II. If the number of allowances awarded is fewer than allowances allocated to the set-aside as provided

in Table I of this subsection, the department shall transfer surplus allowances to the accounts of the electric utilities

listed in Table I of this subsection on a pro rata basis in the same proportion as allocations to NOx budget units set forth

in Table I of this subsection.

III. If the number of allowances claimed for award is more than allowances allocated to the set-aside as

provided in Table I of this subsection, the department shall allocate awards to sponsors of eligible projects as follows:

a. Up to the first one hundred fifty (150) allowances in the set-aside shall be awarded for eligible

projects located in Missouri, as follows. Up to the first sixty (60) allowances shall be awarded for eligible energy

efficiency projects in the order that the projects first achieved eligible status. The remaining allowances shall be

awarded for eligible projects located in Missouri in the order the projects first achieved eligible status, regardless of the

type of project; and

b. The remaining allowances in the set-aside shall be awarded for eligible projects on a pro rata basis

in proportion to total remaining claims for awards, regardless of project location.

(II) Project eligibility. Allocations from the energy efficiency and renewable generation set-aside may be

requested by any entity, including an electric utility listed in Table I of this subsection or its affiliate, that implements

and demonstrates eligible projects as defined in this subparagraph.

(a) Eligibility requirements. The department shall establish requirements for project eligibility and shall

determine which projects are eligible to receive awards from the set-aside.

(b) Only the following shall be eligible for awards from the set-aside:

I. Energy efficiency projects resulting in reduced or more efficient electricity use through the voluntary

installation, replacement, or modification of equipment, fixtures, or materials in a building or facility.

a. Energy efficiency projects may be directed toward or located within buildings or facilities owned,

leased, operated or controlled by an electric utility listed in Table I of this subsection or its affiliate. Eligibility

requirements for these projects shall be the same as for any other energy efficiency project.

b. Energy efficiency projects may include demand-side programs that result in reduced or more

efficient electricity use;

II. Renewable generation projects, includes electric generation from wind, photovoltaic systems, biogas

and hydropower projects. Renewable generation projects do not include nuclear power projects. Eligible biogas
projects include projects to generate electricity from methane gas captured from sanitary landfills, wastewater treatment

plants, sewage treatment plants or agricultural livestock waste treatment systems. Eligible hydropower projects are

restricted to systems—

a. That are certified by the Low Impact Hydropower Institute;

b. That employ a head of ten feet (10') or less; or

c. Employing a head greater than ten feet (10') that make use of a dam that existed prior to the

effective date of this rule;

III. Renewable biomass generation projects include projects in which one (1) or more biomass fuels is

fired separately or co-fired with one (1) or more fossil fuels to generate electricity. Biomass includes wood and wood

waste, energy crops such as switchgrass and agricultural wastes such as crop and animal waste. Electric generation

from combustion of municipal solid waste is not included; and

IV. Combined heat and power (CHP) projects that use integrated technologies, including cogeneration,

which convert fuel to electric, thermal, and mechanical energy for on-site or local use. In the case of electricity

generation, combined heat and power can include export of power to the local electric utility transmission grid. The

thermal energy from combined heat and power systems can be created and used in the form of steam, hot or chilled

water for process, space heating or cooling, or other applications. To be eligible, the combined heat and power

installation must meet or exceed technology-specific efficiency thresholds that will be established by the department.

(c) Additional eligibility requirements shall include the following:

I. Project information must be submitted on forms provided by the department. After the effective date

of this rule, any revision to the department-supplied forms will be presented to the regulated community for a forty-five

(45)-day comment period;

II. Only projects that are not required by federal government regulation and that are not and will not be

used to generate compliance or permitting credits otherwise in the state implementation plan (SIP) are eligible to

receive allowances from the set-aside;

III. Only electricity generation or savings that are not the basis for an award of CAIR annual NOx

allowance from a set-aside in another state’s CAIR annual NOxrule can be the basis for a claim from the Missouri setaside;

IV. Only projects that equal at least one (1) ton of NOx emissions, using conventional arithmetic

rounding, are eligible to receive allowances from the set-aside. Multiple projects may be aggregated into a single

allowance allocation request to equal one (1) or more tons of NOx emissions;

V. Only projects that commence operation after September 1, 2005, are eligible to receive allowances

from the set-aside;

VI. Sponsors must establish a compliance account or general account in EPA’s NOx Allowance

Tracking System (NATS). The application for an award from the set-aside must be submitted to the department by the

CAIR authorized account representative or alternate CAIR authorized account representative for the compliance

account or general account; and

VII. Location of eligible projects.

a. To be eligible, an energy efficiency project or combined heat and power project must be located

within Missouri.

b. To be eligible, a renewable generation project or biomass generation project may be located within

or outside of Missouri and must meet the following criteria:

(i) The number of allowances awarded to a renewable generation project or biomass generation

project located within or outside of Missouri shall be calculated based on the amount of power the facility delivers to

Missouri end-use customers. The sponsor must certify and demonstrate the amount of power from the renewable

generation project or biomass generation project that is delivered to Missouri end-use customers; and

(ii) If the renewable generation project or biomass generation project is located outside of Missouri,

the project must be sponsored by a Missouri electric generation and transmission cooperative, a Missouri electric

distribution utility or the affiliate of a Missouri electric distribution utility. For the purpose of this rule, “affiliate” shall

be defined as in 4 CSR 240-20.010.

(d) Pre-application project review. Sponsors of new energy efficiency/renewable energy projects must

submit a request for pre-application project review by March 31 of the year prior to the control period for which setaside awards will be claimed. For example, a project sponsor intending to apply for an award of 2009 control period

allowances must request a pre-application project review by March 31, 2008, and may request the review at any time

prior to that date. Pre-application project reviews will cover eligibility requirements and proposed measurement and

verification procedures. The request for pre-application project review must be submitted on forms provided by the

department. After the effective date of this rule, any revision to the department-supplied forms will be presented to the

regulated community for a forty-five (45)-day comment period;

(e) Eligibility for any project may be claimed by only one (1) entity. The department shall determine

procedures to be followed if multiple claims of eligibility for the same project are received.

(III) Applications and calculations of awards. To qualify for an award of allowances from the set-aside an

applicant must meet the following requirements:

(a) The project must be eligible as provided in part (3)(B)2.E.(II) of this rule;
(b) By March 1 following the twelve (12)-month energy efficiency/renewable energy project period during

which the eligible project activities occurred, the department must receive a complete application that meets the

following requirements:

I. The application shall be prepared on forms provided by the department and must be submitted by the

project’s CAIR authorized account representative or alternate CAIR authorized account representative. After the

effective date of this rule, any revision to the department-supplied forms will be presented to the regulated community

for a forty-five (45)-day comment period;

II. The applicant must demonstrate electricity savings or renewable generation and calculate the NOx

allowance award requested using methods that adhere to measurement and verification standards approved by the

department. The department shall have the right to require verification of data and calculations that are presented in an

application as a condition for awarding allowances to the applicant. Verification may include site visits by agents of

the department; and

III. If the applicant intends to reapply in subsequent years, the application must indicate the stream of

benefits that is expected in subsequent years;

(c) The department shall determine methods for calculating awards of allowances based upon the

following principles:

I. Allowances awarded to end-use electrical energy efficiency projects shall be calculated as the number

of MWh of electricity saved during a twelve (12)-month energy efficiency/renewable energy project period multiplied

by an emissions factor of 1.5 pounds of NOx per MWh appropriately converted and rounded to tons using conventional

arithmetic rounding. The department shall provide a factor to adjust the calculation of electricity saved to account for

transmission and distribution line losses;

II. Allowances awarded to renewable generation projects from wind, photovoltaic systems, biogas and

hydropower projects shall be calculated as the number of MWh of electricity generated during a twelve (12)-month

energy efficiency/renewable energy project period multiplied by an emissions factor of 1.5 pounds of NOx per MWh

appropriately converted and rounded to tons using conventional arithmetic rounding;

III. Allowances awarded to renewable biomass generation projects shall be calculated based on net NOx

emission reductions, appropriately converted and rounded to tons using conventional arithmetic rounding where—

a. Net NOx emissions shall be calculated as the number of MWh of electricity generated during a

twelve (12)-month energy efficiency/renewable energy project period multiplied by an emissions factor of 1.5 pounds

of NOx per MWh, minus the tons of NOx emitted by the renewable generating project during the twelve (12)-month

energy efficiency/renewable energy project period; and

b. When biomass is co-fired with other fuels, its share of electric generation and NOx emissions shall

be calculated based on its share of the total heat content of all fuels used in the co-firing process; and

IV. Allowances awarded to combined heat and power (CHP) projects shall be calculated based on the

difference between actual NOx emissions from the CHP system and the NOx emissions that would be emitted by an

equivalent business-as-usual (BAU) system. An equivalent BAU system consists of a conventional power plant that

produces electricity plus a conventional industrial boiler that produces useful heat (heat used for space, water or

industrial process heat). The department shall provide efficiency and NOx emission rates to be used in calculating NOx

emissions from the equivalent BAU system. In addition, to qualify for an award, a CHP system shall be required to

achieve an efficiency threshold. The threshold shall be set by the department and the efficiency of the CHP system

shall be calculated based on a method provided by the department; and

(d) The sponsor of a project located in Missouri that receives an award from the set-aside may reapply for

set-aside awards for up to an additional six (6) consecutive control periods by meeting the following requirements. The

sponsor of a project located outside of Missouri that receives an award from the set-aside may reapply for set-aside

awards for up to an additional four (4) consecutive control periods by meeting the following requirements:

I. Reapplication must be received by March 1 following the last day of the twelve (12)-month energy

efficiency/

renewable energy project period during which the energy efficiency and renewable electric generation activities took

place; and

II. The reapplication must be prepared on forms provided by the department and must be submitted by

the project’s CAIR authorized account representative or alternate CAIR authorized account representative. After the

effective date of this rule, any revision to the department-supplied forms will be presented to the regulated community

for a forty-five (45)-day comment period;

3. Compliance supplement pool.

A. For any CAIR NOx unit in the state that achieves NOx emission reductions in 2007 and 2008 that are not

necessary to comply with any state or federal emissions limitation applicable during such years, the CAIR designated

representative of the unit may request early reduction credits, and allocation of CAIR NOx allowances from the

compliance supplement pool in accordance with the following:

(I) The owners and operators of such CAIR NOx unit shall monitor and report the NOx emissions rate and the

heat input of the unit in accordance with section (4) of this rule in each calendar year for which early reduction credit is

requested;

(II) The CAIR designated representative of such CAIR NOx unit shall submit to the permitting authority by

May 1, 2009 a request, in a format specified by the permitting authority, for allocation of an amount of CAIR NOx

allowances from the compliance supplement pool not exceeding the sum of the amounts (in tons) of the unit’s NOx
emission reductions in 2007 and 2008 that are not necessary to comply with any state or federal emissions limitation

applicable during such years, determined in accordance with section (4) of this rule; and

(III) For units subject to the Acid Rain Program that do not have an applicable NOx emission limit, the Acid

Rain Program NOx emission rate limit that would have applied had the unit been limited by Acid Rain Program NOx

requirements or state emission rate limit shall be utilized to determine the number of potential CAIR NOx allowances

those units may receive.

B. For any CAIR NOx unit in the state whose compliance with CAIR NOx emissions limitation for the calendar

year 2009 would create an undue risk to the reliability of electricity supply during such calendar year, the CAIR

designated representative of the unit may request the allocation of CAIR NOx allowances from the compliance

supplement pool in accordance with the following:

(I) The CAIR designated representative of such CAIR NOx unit shall submit to the permitting authority by

May 1, 2009 a request, in a format specified by the permitting authority, for allocation of an amount of CAIR NOx

allowances from the compliance supplement pool not exceeding the minimum amount of CAIR NOx allowances

necessary to remove such undue risk to the reliability of electricity supply; and

(II) In the request under paragraph (3)(B)3. of this rule, the CAIR designated representative of such CAIR

NOx unit shall demonstrate that, in the absence of allocation to the unit of the amount of CAIR NOx allowances

requested, the unit’s compliance with CAIR NOx emissions limitation for the calendar year 2009 would create an undue

risk to the reliability of electricity supply during such calendar year. This demonstration must include a showing that it

would not be feasible for the owners and operators of the unit to:

(a) Obtain a sufficient amount of electricity from other electricity generation facilities, during the

installation of control technology at the unit for compliance with the CAIR NOx emissions limitation, to prevent such

undue risk; or

(b) Obtain under subparagraphs (3)(B)3.A. and C. of this rule, or otherwise obtain, a sufficient amount of

CAIR NOx allowances to prevent such undue risk.

C. The permitting authority will review each request under subparagraphs (3)(B)3.A. and B. of this rule

submitted by May 1, 2009 and will allocate CAIR NOx allowances for the calendar year 2009 to CAIR NOx units in the

state and covered by such request as follows:

(I) Upon receipt of each such request, the permitting authority will make any necessary adjustments to the

request to ensure that the amount of the CAIR NOx allowances requested meets the requirements of subparagraph

(3)(B)3.A. or B. of this rule;

(II) If the total amount of CAIR NOx allowances in all requests (as adjusted under part (3)(B)3.C.(I) of this

rule) is not more than nine thousand forty-four (9,044), the permitting authority will allocate to each CAIR NOx unit

covered by such requests the amount of CAIR NOx allowances requested (as adjusted under part (3)(B)3.C.(I) of this

rule); and

(III) If the total amount of CAIR NOx allowances in all requests (as adjusted under part (3)(B)3.C.(I) of this

rule) is more than nine thousand forty-four (9,044), the permitting authority will allocate CAIR NOx allowances to each

CAIR NOx unit covered by such requests as follows:

(a) The compliance supplement pool shall be divided into two (2) pools of three thousand fifteen (3,015)

allowances and six thousand twenty-nine (6,029) allowances each;

(b) Units located in Buchanan, Jackson or Jasper County that combust at least one hundred thousand

(100,000) passenger tire equivalents in each of 2007 and 2008 shall be eligible to request CAIR NOx allowances from

the smaller pool;

(c) CAIR NOx allowances from the smaller pool shall be allocated according to the following formula:

Unit’s allocation = Unit’s adjusted allocation × (3,015/Total adjusted allocations for eligible units)

Where:

“Unit’s allocation” is the number of CAIR NOx allowances allocated to the unit from the state’s compliance

supplement pool.

“Unit’s adjusted allocation” is the amount of CAIR NOx allowances requested for the unit under subparagraphs

(3)(B)3.A. and B. of this rule, as adjusted under part (3)(B)3.C.(I) of this rule.

“Total adjusted allocations for eligible units” is the sum of the amounts of allocations requested under subparagraphs

(3)(B)3.A. and B. of this rule, as adjusted under paragraph (3)(B)1. of this rule by the units identified in subpart

(3)(B)3.C.(III)(b) of this rule.

(d) Units that receive CAIR NOx allowances from the smaller portion of the compliance supplement pool

shall not be eligible to receive CAIR NOx allowances from the remaining portion of the compliance supplement pool;

and

(e) Any CAIR NOx allowances not allocated under subpart (3)(C)3.C. (III)(c) shall be added to the pool of

six thousand twenty-nine (6,029) allowances and allocated according to the following formula:

Unit’s allocation = Unit’s adjusted allocation × ((6,029 + Remainder from first allocation)/Total adjusted allocations

for eligible units)

Where:
“Unit’s allocation” is the number of CAIR NOx allowances allocated to the unit from the state’s compliance

supplement pool.

“Unit’s adjusted allocation” is the amount of CAIR NOx allowances requested for the unit under subparagraphs

(3)(B)3.A. and B. of this rule, as adjusted under part (3)(B)3.C.(I) of this rule.

“Remainder from first allocation” is the amount of CAIR NOx allowances from the smaller pool not allocated under

subparagraph (3)(C)3.C.

“Total adjusted allocations for eligible units” is the sum of the amounts of allocations requested for all units under

subparagraphs (3)(B)3.A. and B. of this rule, as adjusted under part (3)(B)3.C.(I) of this rule by units that were not

allocated CAIR NOx allowances under subparagraph (3)(C)3.C. of this rule; and

4. By November 30, 2009, the permitting authority will determine, and submit to the administrator, the allocations

under subparagraphs (3)(B)3.B. and (3)(B)3.C. of this rule; and

5. By January 1, 2010, the administrator will record the allocations under subparagraphs (3)(B)3.B. and (3)(B)3.C.

of this rule.

(4) Reporting and Record Keeping. Unless otherwise noted in this section of the rule, all of the sections of 40 CFR 96

subpart HH promulgated as of April 28, 2006 are hereby incorporated by reference in this rule, as published by the

Office of the Federal Register, U.S. National Archives and Records, 700 Pennsylvania Avenue NW, Washington, D.C.

20408. This rule does not incorporate any subsequent amendments or additions.

(5) Test Methods. (Not Applicable)

AUTHORITY: section 643.050, RSMo 2000.* Original rule filed Oct. 2, 2006, effective May 30, 2007.

*Original authority: 643.050, RSMo 1965, amended 1972, 1992, 1993, 1995.
10 CSR 10-6.364 Clean Air Interstate Rule Seasonal NOx Trading Program

PURPOSE: This rule adopts the U.S. Environmental Protection Agency’s (EPA) regional trading program for nitrogen

oxides, which was developed to meet the requirements of the Clean Air Interstate Rule. The evidence supporting the

need for this proposed rulemaking, per section 536.016, RSMo, is the U.S. Environmental Protection Agency’s Clean

Air Interstate Rule published on May 12, 2005.

PUBLISHER’S NOTE: The secretary of state has determined that the publication of the entire text of the material

which is incorporated by reference as a portion of this rule would be unduly cumbersome or expensive. This material

as incorporated by reference in this rule shall be maintained by the agency at its headquarters and shall be made

available to the public for inspection and copying at no more than the actual cost of reproduction. This note applies

only to the reference material. The entire text of the rule is printed here.

(1) Applicability.

(A) Except as provided in subsection (1)(B) of this rule—

1. The following units in this state shall be Clean Air Interstate Rule (CAIR) nitrogen oxides (NOx) Ozone Season

units, and any source that includes one or more such units shall be a CAIR NOx Ozone Season source, subject to the

requirements of this rule: any stationary, fossil-fuel-fired boiler or stationary, fossil-fuel-fired combustion turbine

serving at any time, since the later of November 15, 1990 or the startup of the unit’s combustion chamber, a generator

with nameplate capacity of more than twenty-five (25) megawatts electric (MWe) producing electricity for sale; and

2. If a stationary boiler or stationary combustion turbine that, under paragraph (1)(A)1. of this rule, is not a CAIR

NOx Ozone Season unit begins to combust fossil fuel or to serve a generator with nameplate capacity of more than

twenty-five (25) MWe producing electricity for sale, the unit shall become a CAIR NOx Ozone Season unit as provided

in paragraph (1)(A)1. of this rule on the first date on which it both combusts fossil fuel and serves such generator; or

3. Units in Bollinger, Butler, Cape Girardeau, Carter, Clark, Crawford, Dent, Dunklin, Franklin, Gasconade, Iron,

Jefferson, Lewis, Lincoln, Madison, Marion, Mississippi, Montgomery, New Madrid, Oregon, Pemiscot, Perry, Pike,

Ralls, Reynolds, Ripley, St. Charles, St. Francois, St. Louis, Ste. Genevieve, Scott, Shannon, Stoddard, Warren,

Washington and Wayne counties and the City of St. Louis which are not CAIR NOx Ozone Season units under

paragraphs (1)(A)1., (1)(A)2. and (1)(B) shall be Clean Air Interstate Rule (CAIR) nitrogen oxides (NOx) Ozone

Season units, and any source that includes one (1) or more such units shall be a CAIR NOx Ozone Season source if—

A. Electric generating units that serve a generator with a nameplate capacity greater than twenty-five megawatts

(25 MW) and—

(I) For non-cogeneration units—

(a) Commenced operation before January 1, 1997, and served a generator producing electricity for sale

under a firm contract to the electric grid during 1995 or 1996; or

(b) Commenced operation in 1997 or 1998 and served a generator producing electricity for sale under a

firm contract to the electric grid during 1997 or 1998; or

(c) Commenced operation on or after January 1, 1999, and served or serves at any time a generator

producing electricity for sale; and

(II) For cogeneration units—

(a) Commenced operation before January 1, 1997, and failed to qualify as an unaffected unit under 40 CFR

72.6(b)(4) for 1995 or 1996 under the Acid Rain Program; or

(b) Commenced operation in 1997 or 1998 and failed to qualify as an unaffected unit under 40 CFR

72.6(b)(4) for 1997 or 1998 under the Acid Rain Program; or

(c) Commenced operation on or after January 1, 1999, and failed or fails to qualify as an unaffected unit

under 40 CFR 72.6(b)(4) for any year under the Acid Rain Program; and

B. Non-electric generating boilers, combined cycle systems, and combustion turbines that have a maximum

design heat input greater than two hundred fifty (250) million British thermal units per hour (mmBtu/hr) and—

(I) For non-cogeneration units—

(a) Commenced operations before January 1, 1997, and did not serve a generator producing electricity for

sale under a firm contract to the electric grid during 1995 or 1996; or

(b) Commenced operations in 1997 or 1998 and did not serve a generator producing electricity for sale

under a firm contract to the electric grid during 1997 or 1998; or

(c) Commenced operation on or after January 1, 1999, and:

I. At no time served or serves a generator producing electricity for sale; or

II. At any time served or serves a generator with a nameplate capacity of twenty-five (25) MW or less

producing electricity for sale, and with the potential to use no more than fifty percent (50%) of the potential electrical

output capacity of the unit; and

(II) For cogeneration units—

(a) Commenced operation before January 1, 1997, and qualified as an unaffected unit under 40 CFR

72.6(b)(4) for 1995 or 1996 under the Acid Rain Program; or

(b) Commenced operation in 1997 or 1998 and qualified as an unaffected unit under 40 CFR 72.6(b)(4) for

1997 or 1998 under the Acid Rain Program; or
(c) Commenced operation on or after January 1, 1999, and qualified or qualifies as an unaffected unit

under 40 CFR 72.6(b)(4) for each year under the Acid Rain Program.

(III) Exemptions. The director shall provide the administrator written notice of the issuance of any permit

under section (3) of this rule and, upon request, a copy of the permit. Notwithstanding paragraph (1)(A)3. of this rule, a

unit shall not be a CAIR NOx Ozone Season unit if the unit has a federally enforceable permit that:

(a) Restricts the unit to burning only natural gas or fuel oil;

(b) Restricts the unit’s operating hours to the number calculated by dividing twenty-five (25) tons of

potential mass emissions by the unit’s maximum potential hourly NOx mass emissions;

(c) Requires that the unit’s maximum potential NOx mass emissions be calculated by multiplying the unit’s

maximum rated hourly heat input by the highest default NOx emission rate applicable to the unit under 40 CFR

75.19(c), Table LM-2;

(d) Requires that the owner or operator of the unit shall retain at the source that includes the unit, for five

(5) years, records demonstrating that the operating hours restriction, the fuel use restriction, and the other requirements

of the permit related to these restrictions were met; and

(e) Requires that the owner or operator of the unit shall report the unit’s hours of operation (treating any

partial hour of operation as a whole hour of operation) during each control period to the director by November 1 of

each year for which the unit is subject to the federally enforceable permit.

(IV) A CAIR NOx Ozone Season unit may not qualify for an exemption unless the emissions after the

exemption do not exceed the lesser of twenty-five (25) tons or the amount of allocations allocated to them. The owner

or operator of a CAIR NOx Ozone Season unit that is allocated CAIR NOx Ozone Season allowances under section (3)

of this rule, which requests an exemption under part (1)(A)3.B.III. of this rule, will surrender to the administrator the

CAIR NOx Ozone Season allowances for the control period after qualifying and every year after for which the

exemption remains in place.

(V) Loss of exemption. If, for any control period, the unit does not comply with the fuel use restriction under

subpart (1)(A)3.B.(III)(a) of this rule or the operating hours restriction subpart (1)(A)3.B.(III)(b) and subpart

(1)(A)3.B.(III)(c) of this rule, or the fuel use or the operating hour restrictions are removed from the unit’s federally

enforceable permit or otherwise becomes no longer applicable, the unit shall be a NOx budget unit, subject to the

requirements of this rule. Such unit shall be treated as commencing operation and, for a unit under paragraph (1)(A)3.

of this rule, commencing commercial operation on September 30 of the control period for which the fuel use restriction

or the operating hours restriction is no longer applicable or during which the unit does not comply with the fuel use

restriction or the operating hours restriction.

(B) The units in the state that meet the requirements set forth in subparagraph (1)(B)1.A., (1)(B)2.A., or (1)(B)2.B.

of this rule shall not be CAIR NOx Ozone Season units—

1. Cogenerator exemption.

A. Any unit that is a CAIR Ozone Season NOx unit under paragraph (1)(A)1. or 2. of this rule—

(I) Qualifying as a cogeneration unit during the twelve (12)-month period starting on the date the unit first

produces electricity and continuing to qualify as a cogeneration unit; and

(II) Not serving at any time, since the later of November 15, 1990 or the startup of the unit’s combustion

chamber, a generator with nameplate capacity of more than twenty-five (25) MWe supplying in any calendar year more

than one-third of the unit’s potential electric output capacity or two hundred nineteen thousand (219,000) megawatt

hours (MWh), whichever is greater, to any utility power distribution system for sale.

B. If a unit qualifies as a cogeneration unit during the twelve (12)-month period starting on the date the unit first

produces electricity and meets the requirements of subparagraph (1)(B)1.A. of this rule for at least one (1) calendar

year, but subsequently no longer meets all such requirements, the unit shall become a CAIR Ozone Season NOx unit

starting on the earlier of January 1 after the first calendar year during which the unit first no longer qualifies as a

cogeneration unit or January 1 after the first calendar year during which the unit no longer meets the requirements of

part (1)(B)1.A.(I) of this rule.

2. Solid waste incinerator exemption.

A. Any unit that is a CAIR NOx Ozone Season unit under paragraph (1)(A)1. or 2. of this rule commencing

operation before January 1, 1985—

(I) Qualifying as a solid waste incineration unit; and

(II) With an average annual fuel consumption of non-fossil fuel for 1985–1987 exceeding eighty percent

(80%)(on a Btu basis) and an average annual fuel consumption of non-fossil fuel for any three (3) consecutive calendar

years after 1990 exceeding eighty percent (80%)(on a Btu basis).

B. Any unit that is a CAIR NOx Ozone Season unit under paragraph (1)(A)1. or 2. of this rule commencing

operation on or after January 1, 1985—

(I) Qualifying as a solid waste incineration unit; and

(II) With an average annual fuel consumption of non-fossil fuel for the first three (3) calendar years of

operation exceeding eighty percent (80%)(on a Btu basis) and an average annual fuel consumption of non-fossil fuel

for any three (3) consecutive calendar years after 1990 exceeding eighty percent (80%)(on a Btu basis).

C. If a unit qualifies as a solid waste incineration unit and meets the requirements of subparagraph (1)(B)2.A. or

B. of this rule for at least three (3) consecutive calendar years, but subsequently no longer meets all such requirements,

the unit shall become a CAIR NOx Ozone Season unit starting on the earlier of January 1 after the first calendar year

during which the unit first no longer qualifies as a solid waste incineration unit or January 1 after the first three (3)
consecutive calendar years after 1990 for which the unit has an average annual fuel consumption of fossil fuel of

twenty percent (20%) or more.

(C) Retired Unit Exemption. Unless otherwise noted in this section of the rule, all of the sections of 40 CFR 96.305

promulgated as of April 28, 2006 are hereby incorporated by reference in this rule, as published by the Office of the

Federal Register, U.S. National Archives and Records, 700 Pennsylvania Avenue NW, Washington, D.C. 20408. This

rule does not incorporate any subsequent amendments or additions.

(2) Definitions.

(A) Definitions for key words and phrases used in this rule may be found in sections 40 CFR 96.302 and 96.303 of

40 CFR 96 subpart AAAA promulgated as of April 28, 2006 are hereby incorporated by reference in this rule, as

published by the Office of the Federal Register, U.S. National Archives and Records, 700 Pennsylvania Avenue NW,

Washington, D.C. 20408. This rule does not incorporate any subsequent amendments or additions.

(B) Definitions for key words and phrases used in paragraph (1)(A)3. of this rule may be found in sections 40 CFR

97.2 subpart A promulgated as of April 28, 2006 are hereby incorporated by reference in this rule, as published by the

Office of the Federal Register, U.S. National Archives and Records, 700 Pennsylvania Avenue NW, Washington, D.C.

20408. This rule does not incorporate any subsequent amendments or additions.

(C) Cogenerator—(for the purposes of paragraph (1)(A).3. of this rule) A cogeneration facility which:

1. For a unit that commenced construction on or prior to November 15, 1990, was constructed for the purpose of

supplying equal to or less than one-third its potential electrical output capacity or equal to or less than two hundred

nineteen thousand (219,000) MWe-hrs actual electric output on an annual basis to any utility power distribution system

for sale (on a gross basis). If the purpose of construction is not known, the administrator will presume that actual

operation from 1985 through 1987 is consistent with such purpose. However, if in any three (3) calendar year period

after November 15, 1990, such unit sells to a utility power distribution system an annual average of more than one-third

of its potential electrical output capacity and more than two hundred nineteen thousand (219,000) MWe-hrs actual

electric output (on a gross basis), that unit shall be an affected unit, subject to the requirements of the Acid Rain

Program; or

2. For units which commenced construction after November 15, 1990, supplies equal to or less than one-third its

potential electrical output capacity or equal to or less than two hundred nineteen thousand (219,000) MWe-hrs actual

electric output on an annual basis to any utility power distribution system for sale (on a gross basis). However, if in any

three (3) calendar year period after November 15, 1990, such unit sells to a utility power distribution system an annual

average of more than one-third of its potential electrical output capacity and more than two hundred nineteen thousand

(219,000) MWe-hrs actual electric output (on a gross basis), that unit shall be an affected unit, subject to the

requirements of the Acid Rain Program.

(D) Definitions of certain terms specified in this rule, other than those defined in this rule section, may be found in

10 CSR 10-6.020.

(3) General Provisions.

(A) Unless otherwise noted in this section, 40 CFR 96.306, 96.307, and 96.308 as well as all of the sections of 40

CFR 96 subparts BBBB, CCCC, DDDD, FFFF, GGGG, and IIII promulgated as of April 28, 2006 are hereby

incorporated by reference in this rule, as published by the Office of the Federal Register, U.S. National Archives and

Records, 700 Pennsylvania Avenue NW, Washington, D.C. 20408. This rule does not incorporate any subsequent

amendments or additions.

(B) CAIR NOx Ozone Season Allowances.

1. Timing requirements for CAIR NOx Ozone Season Allowance allocations.

A. By October 31, 2006, the permitting authority will submit to the administrator the CAIR NOx Ozone Season

Allowance allocations, in a format prescribed by the administrator, for the control periods in 2009, 2010, 2011, 2012,

2013, and 2014 consistent with the allocations established in Table I and Table II of this subsection.

B. By October 31, 2006, the permitting authority will submit to the administrator the CAIR NOx Ozone Season

Allowance allocations, in a format prescribed by the administrator, for the control period beginning 2015 and extending

through ten (10) control periods consistent with the allocations established in Table I and Table II of this subsection.

C. By October 31, 2015 and October 31 of every tenth year following, the permitting authority will submit to

the administrator CAIR NOx Ozone Season Allowance allocations, in a format prescribed by the administrator, for the

control period ten (10) years in the future and extending through ten (10) control periods consistent with Table I and

Table II of this subsection.

2. CAIR NOx Ozone Season Allowance allocations.

A. The state trading program NOx budget allocated by the director under subparagraphs (3)(B)2.B. and

(3)(B)2.C. of this rule for a control period will equal twenty-six thousand seven hundred thirty-seven (26,737) tons for

2009-2014 and twenty-two thousand two hundred ninety (22,290) tons for 2015 and beyond.

B. The following CAIR NOx ozone season units shall be allocated NOx allowances for each control period in

accordance with Table I of subparagraph (3)(B)2.B. of this rule._
Table I

NOx Allocation NOx Allocation 2015

Facility ID Facility Name Unit ID Portion Statewide Pool 2009–2014 and beyond

2076 ASBURY 1 1.85% 493 410

2079 HAWTHORN STATION 5A 5.51% 1,469 1,224

2079 HAWTHORN STATION 6 0.09% 25 21

2079 HAWTHORN STATION 7 0.05% 13 11

2079 HAWTHORN STATION 8 0.04% 11 9

2079 HAWTHORN STATION 9 0.23% 62 51

2080 MONTROSE STATION 1 1.53% 408 340

2080 MONTROSE STATION 2 1.55% 414 345

2080 MONTROSE STATION 3 1.63% 435 363

2081 NORTHEAST #11 0.01% 2 2

2081 NORTHEAST #12 0.01% 2 1

2081 NORTHEAST #13 0.02% 4 3

2081 NORTHEAST #14 0.01% 3 3

2081 NORTHEAST #15 0.01% 3 2

2081 NORTHEAST #16 0.01% 2 2

2081 NORTHEAST #17 0.01% 4 3

2081 NORTHEAST #18 0.01% 3 3

2082 FAIRGROUNDS 0.01% 2 2

2092 RALPH GREEN 0.03% 8 7

2094 SIBLEY 1 0.52% 138 115

2094 SIBLEY 2 0.50% 135 112

2094 SIBLEY 3 3.31% 884 737

2096 AMEREN VIADUCT 0.00% — —

2098 LAKE ROAD 6 0.86% 231 192

2098 LAKE ROAD (GAS TURBINE) 5 0.02% 5 4

2102 HOWARD BEND CT 0.00% 1 1

2103 LABADIE 1 4.57% 1,220 1,017

2103 LABADIE 2 4.84% 1,292 1,076

2103 LABADIE 3 5.19% 1,384 1,153

2103 LABADIE 4 4.81% 1,283 1,069

2104 MERAMEC 1 1.25% 333 278

2104 MERAMEC 2 1.14% 305 254

2104 MERAMEC 3 1.98% 529 441

2104 MERAMEC 4 2.89% 770 641

2104 MERAMEC GT1 — —

2107 SIOUX 1 3.68% 981 817

2107 SIOUX 2 3.68% 982 818

2122 CHILLICOTHE 0.01% 2 2

2123 COLUMBIA 6 0.09% 24 20

2123 COLUMBIA 7 0.10% 28 23

2123 COLUMBIA 8 0.00% 1 —

2132 BLUE VALLEY POWER 3 0.31% 84 70

2132 BLUE VALLEY POWER GT1 0.00% — —

2161 JAMES RIVER GT1 0.05% 13 11

2161 JAMES RIVER GT2 0.03% 9 7

2161 JAMES RIVER 3 0.48% 129 108

2161 JAMES RIVER 4 0.62% 164 137

2161 JAMES RIVER 5 1.07% 285 238

2167 NEW MADRID POWER PLA 1 4.76% 1,271 1,059

2167 NEW MADRID POWER PLA 2 4.94% 1,318 1,098

2168 THOMAS HILL ENERGY C MB1 1.90% 506 422

2168 THOMAS HILL ENERGY C MB2 2.73% 729 608

2168 THOMAS HILL ENERGY C MB3 6.63% 1,769 1,474

2169 CHAMOIS POWER PLANT 2 0.52% 138 115

6065 IATAN STATION 1 7.04% 1,877 1,564

6074 GREENWOOD ENERGY CENT 1 0.04% 10 9

6074 GREENWOOD ENERGY CENT 2 0.04% 10 8

6074 GREENWOOD ENERGY CENT 3 0.04% 12 10

6074 GREENWOOD ENERGY CENT 4 0.04% 11 9

6155 RUSH ISLAND 1 5.05% 1,346 1,122

6155 RUSH ISLAND 2 4.58% 1,221 1,018
6195 SOUTHWEST 1 2.28% 609 507

6195 SOUTHWEST CT1A 0.01% 3 2

6195 SOUTHWEST CT1B 0.01% 3 2

6195 SOUTHWEST CT2A 0.01% 2 2

6195 SOUTHWEST CT2B 0.01% 2 2

6223 EMPIRE 3A 0.01% 2 2

6223 EMPIRE 3B 0.01% 2 2

6223 EMPIRE 4A 0.01% 2 2

6223 EMPIRE 4B 0.01% 2 2

6563 EMPIRE—ENERGY CENTER 1 0.06% 16 13

6563 EMPIRE—ENERGY CENTER 2 0.04% 9 8

6650 MEXICO 0.00% 1 1

6651 MOBERLY 0.00% 1 1

6652 MOREAU 0.01% 2 1

6768 SIKESTON 1 2.62% 698 582

7296 STATE LINE UNIT 1 1 0.17% 46 38

7296 STATE LINE UNIT 1 2-1 0.32% 85 71

7296 STATE LINE UNIT 1 2-2 0.37% 98 82

7604 ST. FRANCIS POWER PL 1 0.21% 55 46

7604 ST. FRANCIS POWER PL 2 0.18% 49 41

7749 ESSEX POWER PLANT 1 0.03% 9 8

7754 NODAWAY POWER PLANT 1 0.04% 10 8

7754 NODAWAY POWER PLANT 2 0.03% 9 7

7848 HOLDEN POWER PLANT 1 0.01% 2 2

7848 HOLDEN POWER PLANT 2 0.01% 3 3

7848 HOLDEN POWER PLANT 3 0.01% 3 2

7903 MCCARTNEY MGS1A 0.00% 1 1

7903 MCCARTNEY MGS1B 0.00% 1 1

7903 MCCARTNEY MGS2A 0.00% 1 1

7903 MCCARTNEY MGS2B 0.00% 1 1

7964 PENO CREEK ENERGY CTR CT1A 0.01% 2 1

7964 PENO CREEK ENERGY CTR CT1B 0.01% 1 1

7964 PENO CREEK ENERGY CTR CT2A 0.01% 2 1

7964 PENO CREEK ENERGY CTR CT2B 0.01% 2 1

7964 PENO CREEK ENERGY CTR CT3A 0.01% 1 1

7964 PENO CREEK ENERGY CTR CT3B 0.01% 1 1

7964 PENO CREEK ENERGY CTR CT4A 0.01% 1 1

7964 PENO CREEK ENERGY CTR CT4B 0.00% 1 1

8567 HIGGINSVILLE 0.01% 3 3

55178 MEP PLEASANT HILL CT-1 0.28% 75 63

55178 MEP PLEASANT HILL CT-2 0.25% 67 56

55234 AUDRAIN GENERATING CT1 0.00% 1 —

55234 AUDRAIN GENERATING CT2 0.00% — —

55234 AUDRAIN GENERATING CT3 0.00% — —

55234 AUDRAIN GENERATING CT4 0.00% — —

55234 AUDRAIN GENERATING CT5 0.00% — —

55234 AUDRAIN GENERATING CT6 0.00% — —

55234 AUDRAIN GENERATING CT7 0.00% — —

55234 AUDRAIN GENERATING CT8 0.00% — —

55447 COLUMBIA ENERGY CTR CT01 0.00% 1 1

55447 COLUMBIA ENERGY CTR CT02 0.00% — —

55447 COLUMBIA ENERGY CTR CT03 0.00% — —

55447 COLUMBIA ENERGY CTR CT04 0.00% — —

Total 100.00% 26,678 22,231

C. The following existing non-electric generating unit (EGU) boilers shall be allocated NOx allowances for each

control period in accordance with Table II of subparagraph (3)(E)2.C of this rule.

Table II

NOx Allocation per Unit

Non-EGUs Boilers Unit Tons

Per Ozone Season

Anheuser Busch 6 14

Trigen Ashley Street Station Boiler 5 9

Trigen Ashley Street Station Boiler 6 36
D. Any unit subject to subsection (1)(B) of this rule, other than those listed in Tables I and II of this subsection,

will not be allocated CAIR NOx Ozone Season Allowances under this rule.

(4) Reporting and Record Keeping. Unless otherwise noted in this section, all of the sections of 40 CFR 96 subpart

HHHH promulaged as of April 28, 2006 are hereby incorporated by reference in this rule, as published by the Office of

the Federal Register, U.S. National Archives and Records, 700 Pennsylvania Avenue NW, Washington, D.C. 20408.

This rule does not incorporate any subsequent amendments or additions.

(5) Test Methods. (Not Applicable)

AUTHORITY: section 643.050, RSMo 2000. Original rule filed Oct. 2, 2006, effective May 30, 2007.

*Original authority: 643.050, RSMo 1965, amended 1972, 1992, 1993, 1995.
10 CSR 10-6.366 Clean Air Interstate Rule SO2 Trading Program

PURPOSE: This rule adopts the U.S. Environmental Protection Agency’s (EPA) regional trading program for sulfur

dioxide, which was developed to meet the requirements of the Clean Air Interstate Rule. The evidence supporting the

need for this proposed rulemaking, per section 536.016, RSMo, is the U.S. Environmental Protection Agency’s Clean

Air Interstate Rule published on May 12, 2005.

PUBLISHER’S NOTE: The secretary of state has determined that the publication of the entire text of the material

which is incorporated by reference as a portion of this rule would be unduly cumbersome or expensive. This material

as incorporated by reference in this rule shall be maintained by the agency at its headquarters and shall be made

available to the public for inspection and copying at no more than the actual cost of reproduction. This note applies

only to the reference material. The entire text of the rule is printed here.

(1) Applicability.

(A) Except as provided in subsection (1)(B) of this rule:

1. The following units in this state shall be Clean Air Interstate Rule (CAIR) sulfur dioxide (SO2) units, and any

source that includes one or more such units shall be a CAIR SO2 source, subject to the requirements of this rule: any

stationary, fossil-fuel-fired boiler or stationary, fossil-fuel-fired combustion turbine serving at any time, since the later

of November 15, 1990 or the startup of the unit’s combustion chamber, a generator with nameplate capacity of more

than twenty-five (25) megawatts electric (MWe) producing electricity for sale.

2. If a stationary boiler or stationary combustion turbine that, under paragraph (1)(A)1. of this rule, is not a CAIR

SO2 unit begins to combust fossil fuel or to serve a generator with nameplate capacity of more than twenty-five (25)

MWe producing electricity for sale, the unit shall become a CAIR SO2 unit as provided in paragraph (1)(A)1. of this

rule on the first date on which it both combusts fossil fuel and serves such generator.

(B) The units in the state that meet the requirements set forth in subparagraph (1)(B)1.A., (1)(B)2.A., or (1)(B)2.B.

of this rule shall not be CAIR SO2 units:

1. Cogenerator exemption.

A. Any unit that is a CAIR SO2 unit under paragraph (1)(A)1. or 2. of this rule—

(I) Qualifying as a cogeneration unit during the twelve (12)-month period starting on the date the unit first

produces electricity and continuing to qualify as a cogeneration unit; and

(II) Not serving at any time, since the later of November 15, 1990 or the startup of the unit’s combustion

chamber, a generator with nameplate capacity of more than twenty-five (25) MWe supplying in any calendar year more

than one-third of the unit’s potential electric output capacity or two hundred nineteen thousand (219,000) megawatt

hours (MWh), whichever is greater, to any utility power distribution system for sale.

B. If a unit qualifies as a cogeneration unit during the twelve (12)-month period starting on the date the unit first

produces electricity and meets the requirements of subparagraph (1)(B)1.A. of this rule for at least one (1) calendar

year, but subsequently no longer meets all such requirements, the unit shall become a CAIR SO2 unit starting on the

earlier of January 1 after the first calendar year during which the unit first no longer qualifies as a cogeneration unit or

January 1 after the first calendar year during which the unit no longer meets the requirements of part (1)(B)1.A.(II) of

this rule.

2. Solid waste incinerator exemption.

A. Any unit that is a CAIR SO2 unit under paragraph (1)(A)1. or 2. of this rule commencing operation before

January 1, 1985—

(I) Qualifying as a solid waste incineration unit; and

(II) With an average annual fuel consumption of non-fossil fuel for 1985–1987 exceeding eighty percent

(80%) (on a British thermal unit (Btu) basis) and an average annual fuel consumption of non-fossil fuel for any three

(3) consecutive calendar years after 1990 exceeding eighty percent (80%) (on a Btu basis).

B. Any unit that is a CAIR SO2 unit under paragraph (1)(A)1. or 2. of this rule commencing operation on or

after January 1, 1985—

(I) Qualifying as a solid waste incineration unit; and

(II) With an average annual fuel consumption of non-fossil fuel for the first three (3) calendar years of

operation exceeding eighty percent (80%) (on a Btu basis) and an average annual fuel consumption of non-fossil fuel

for any three (3) consecutive calendar years after 1990 exceeding eighty percent (80%) (on a Btu basis).

C. If a unit qualifies as a solid waste incineration unit and meets the requirements of subparagraph (1)(B)2.A. or

B. of this rule for at least three (3) consecutive calendar years, but subsequently no longer meets all such requirements,

the unit shall become a CAIR SO2 unit starting on the earlier of January 1 after the first calendar year during which the

unit first no longer qualifies as a solid waste incineration unit or January 1 after the first three (3) consecutive calendar

years after 1990 for which the unit has an average annual fuel consumption of fossil fuel of twenty percent (20%) or

more.

(C) Retired Unit Exemption. Unless otherwise noted in this section of the rule, all of the sections of 40 CFR 96.205

promulgated as of April 28, 2006 are hereby incorporated by reference in this rule, as published by the Office of the

Federal Register, U.S. National Archives and Records, 700 Pennsylvania Avenue NW, Washington, D.C. 20408. This

rule does not incorporate any subsequent amendments or additions.

(2) Definitions.
(A) Definitions for key words and phrases used in this rule may be found in sections 40 CFR 96.202 and

96.203 of 40 CFR 96 subpart AAA promulgated as of April 28, 2006 are hereby incorporated by reference

in this rule, as published by the Office of the Federal Register, U.S. National Archives and Records, 700

Pennsylvania Avenue NW, Washington, D.C. 20408. This rule does not incorporate any subsequent

amendments or additions.

(B) Definitions of certain terms specified in this rule, other than those defined in this rule section, may be

found in 10 CSR 10-6.020.

(3) General Provisions. Unless otherwise noted in this section, 40 CFR 96.206, 96.207, and 96.208 as well as all of the

sections of 40 CFR 96 subparts BBB, CCC, DDD, FFF, GGG, and III promulgated as of April 28, 2006 are hereby

incorporated by reference in this rule, as published by the Office of the Federal Register, U.S. National Archives and

Records, 700 Pennsylvania Avenue NW, Washington, D.C. 20408. This rule does not incorporate any subsequent

amendments or additions.

(4) Reporting and Record Keeping. Unless otherwise noted in this section, all of the sections of 40 CFR 96 subpart

HHH promulgated as of April 28, 2006 are hereby incorporated by reference in this rule, as published by the Office of

the Federal Register, U.S. National Archives and Records, 700 Pennsylvania Avenue NW, Washington, D.C. 20408.

This rule does not incorporate any subsequent amendments or additions.

(5) Test Methods. (Not Applicable)

AUTHORITY: section 643.050, RSMo 2000. Original rule filed Oct. 2, 2006, effective May 30, 2007.

*Original authority: 643.050, RSMo 1965, amended 1972, 1992, 1993, 1995.
10 CSR 10-6.350 Emission Limitations and Emissions Trading of Oxides of Nitrogen

PURPOSE: The purpose of this rule is to reduce the emissions of nitrogen oxides (NOx) and establish a NOx emissions

trading program for the state of Missouri. The reductions in NOx emissions will reduce the transport of ozone and its

precursors within the state of Missouri and to other states as required under the Clean Air Act.

(1) Applicability.

(A) This rule applies to any fossil fuel-fired electric generating unit that serves a generator with a nameplate capacity

of greater than twenty-five megawatts (25 MW).

(B) Exemptions.

1. Any unit under subsection (1)(A) of this rule which demonstrates, using the emission estimation methods

outlined in paragraph (5)(E)1. of this rule, that the unit’s mass NOx emissions are twenty-five (25) tons or less during

the control period is exempt from the requirements of this rule.

2. The provisions of section (3) of this rule shall not apply to any emergency standby generators, internal

combustion engines and peaking combustion turbine units demonstrated to operate less than four hundred (400) hours

per control period averaged over the three (3) most recent years of operation, which have installed and maintained in

proper operation a nonresettable engine hour meter.

(C) Loss of Exemption. If the exemption limit in paragraph (1)(B)1. or (1)(B)2. of this rule is exceeded, the

exemption shall not apply and the owner or operator must notify the staff director or designee within thirty (30) days.

If the owner or operator can demonstrate to the staff director or designee that the exemption limit was exceeded due to

emergency operations or uncontrollable circumstances, the exemption in paragraph (1)(B)1. or (1)(B)2. of this rule

shall apply.

(D) Compliance with this rule shall not relieve any owner or operator of the responsibility to comply fully with

applicable provisions of the Air Conservation Law and rules or any other requirements under local, state or federal law.

Specifically, compliance with this rule shall not violate the permit conditions previously established under 10 CSR 10-

6.060 or 10 CSR 10-6.065.

(E) Affected sources in the counties of Bollinger, Butler, Cape Girardeau, Carter, Clark, Crawford, Dent, Dunklin,

Franklin, Gasconade, Iron, Jefferson, Lewis, Lincoln, Madison, Marion, Mississippi, Montgomery, New Madrid,

Oregon, Pemiscot, Perry, Pike, Ralls, Reynolds, Ripley, St. Charles, St. Francois, St. Louis, Ste. Genevieve, Scott,

Shannon, Stoddard, Warren, Washington and Wayne counties and the City of St. Louis may demonstrate compliance

with the provisions of this rule using compliance with 10 CSR 10-6.360, provided that the emission rate of each unit

does not exceed 0.25 or 0.18 pound per million British thermal units (mmBtu), whichever is applicable.

(F) The requirements of sections (3), (4), and (5) of this rule will not apply to the control period beginning in 2009

and any control period thereafter.

(2) Definitions.

(A) Definitions of certain terms in this rule, other than those specified in this rule section, may be found in 10 CSR

10-6.020.

(B) Account certificate of representation—The completed and signed submission for certifying the designation of a

NOx authorized account representative for an affected unit or a group of identified affected units who is authorized to

represent the owners or operators of such unit or units and of the affected units at such source or sources with regard to

matters under the NOxtrading program.

(C) Account number—The identification number given to each NOxtrading program account.

(D) Automated data acquisition and handling system—That component of the Continuous Emissions Monitoring

System, or other emissions monitoring system approved for use by the department, designed to interpret and convert

individual output signals from pollutant concentration monitors, and other component parts of the monitoring system to

produce a continuous record of the measured parameters in the measurement units required in this rule.

(E) Average emission rate—The simple average of the hourly NOx emission rate as recorded by monitoring systems

approved in section (5) of this rule.

(F) Boiler—An enclosed fossil or other fuel-fired combustion device used to produce heat and to transfer heat to

recirculating water, steam, or other medium.

(G) Combined cycle system—A system comprised of one or more combustion turbines, heat recovery steam

generators, and steam turbines configured to improve overall efficiency of electricity generation or steam production.

(H) Combustion turbine—An enclosed fossil or other fuel-fired device that is comprised of a compressor, a

combustor, and a turbine, and in which the flue gas resulting from the combustion of fuel in the combustor passes

through the turbine, rotating the turbine.

(I) Common stack—A single flue through which emissions from two or more NOx units are exhausted.

(J) Compliance account—A NOx allow-ance tracking system account, established for an affected unit, in which the

NOx allowance allocations for the unit are initially recorded and in which are held NOx allowances available for use by

the unit for a control period for the purpose of meeting the unit’s NOx emission limitation.
(K) Continuous emissions monitoring system (CEMS)—The equipment required by this rule to sample, analyze,

measure, and provide, by readings taken at least once every fifteen (15) minutes of the measured parameters, a

permanent record of NOx emissions, expressed in tons per hour for NOx

.

(L) Control period—The period beginning May 1 of a calendar year and ending on September 30 of the same

calendar year.

(M) Cyclone EGU—An electric generating unit (EGU) with a fossil fuel-fired boiler consisting of one or more

horizontal cylindrical barrels that utilize tangentially applied air to produce a swirling combustion pattern of coal and

air.

(N) Early reduction credit (ERC)—NOx emission reductions in the years 2000, 2001, 2002 and 2003 that are below

the limits specified in subsection (3)(A) of this rule. ERCs will only be available for use during the years of 2004 and

2005. When calculating ERCs or performing calculations involving ERCs, ERCs shall always be rounded down to the

nearest ton.

(O) Electric generating unit (EGU)—Any fossil fuel-fired boiler or turbine that serves an electrical generator with

the potential to use more than fifty percent (50%) of the usable energy from the boiler or turbine to generate electricity.

(P) Emergency standby generator—A generator operated only during times of loss of primary power at the facility

that is beyond the control of the owner or operator of the facility or during routine maintenance.

(Q) Fossil fuel—Natural gas, petroleum, coal, or any form of solid, liquid or gaseous fuel derived from such

material.

(R) Fossil fuel-fired—With regard to a unit, the combustion of fossil fuel, alone or in combination with any other

fuel, where fossil fuel is projected to comprise more than fifty percent (50%) of the annual heat input.

(S) Generator—A device that produces electricity.

(T) Heat input—The product (expressed as million British thermal units per hour) of the gross calorific value of the

fuel (expressed as British thermal units per pound) and the fuel feed rate into a combustion device (expressed as pounds

per hour), as measured, recorded and reported to the department by the NOx authorized account representative and as

determined by the director in accordance with this rule and does not include the heat derived from preheated

combustion air, recirculated flue gases, or exhaust from other sources.

(U) Nameplate capacity—The maximum electrical generating output (expressed as megawatt) that a generator can

sustain over a specified period of time when not restricted by seasonal or other deratings, as listed in the National

Allowance Data Base (NADB) under the data field “NAMECAP” if the generator is listed in the NADB or as measured

in accordance with the United States Department of Energy standards. For generators not listed in the NADB, the

nameplate capacity shall be used.

(V) NOx allowance—An authorization by the department under the NOx

trading program to emit one (1) ton of NOx

during the control period of the specified year or of any year thereafter.

(W) NOx allowance tracking system—The system by which the director records allocations, deductions and transfers

of NOx allowances under the NOxtrading program.

(X) NOx allowance transfer deadline—Close of business on December 31 following the control period or, if

December 31 is not a business day, close of business on the first business day thereafter and is the deadline by which

NOx allowances may be submitted for recording in an affected unit’s compliance account, or the overdraft account of

the installation where the unit is located.

(Y) NOx authorized account representative—The person who is authorized by the owners or operators of the unit to

represent and legally bind each owner and operator in matters pertaining to the NOxtrading program.

(Z) NOx emissions limitation—For an affected unit, the tonnage equivalent of the NOx emissions rate available for

compliance deduction for the unit and for a control period adjusted by any deductions of such NOx allowances to

account for actual utilization for the control period or to an account for excess emissions for a prior control period or to

account for withdrawal from the NOx

trading program or for a change in regulatory status for an affected unit.

(AA) NOx emission rate—The amount of NOx emitted by a combustion unit in pounds per million British thermal

units of heat input as recorded by monitoring devices approved in section (5) of this rule.

(BB) NOx opt-in unit—An EGU whose owner or operator has requested to become an affected unit under the NOx

trading program and has been approved by the department.

(CC) NOx unit—Any fossil fuel-fired stationary boiler, combustion turbine, internal combustion engine or combined

cycle system.

(DD) Opt-in—To voluntarily become an affected unit under the NOx

trading program.

(EE) Overdraft account—The NOx allowance tracking system account established by the director for each NOx

authorized account representative.

(FF) Passenger tire equivalent (PTE)—The weight of waste tires or parts of waste tires equivalent to the average

weight of one (1) passenger tire. The average weight of one (1) passenger tire is equal to twenty (20) pounds.

(GG) Peaking combustion unit—A combustion turbine normally reserved for operation during the hours of highest

daily, weekly, or seasonal loads.

(HH) Serial number—When referring to NOx allowances, the unique identification number assigned to each NOx

allowance.
(II) Tire-derived fuel—The end product of a process that converts whole scrap tires into a specific chipped form

capable of being used as fuel.

(JJ) Unit load—The total output of a unit in any control period produced by combusting a given heat input of fuel

expressed in terms of the total electrical generation (expressed as megawatt) produced by the unit including generation

for use within the plant, and/or in the case of a unit that uses heat input for purposes other than electrical generation, the

total steam flow (lb/hr) produced by the unit, including steam for use by the unit.

(KK) Unit operating day—A calendar day in which a unit combusts any fuel.

(LL) Unit operating hour or hour of unit operation—Any hour or fraction of an hour during which a unit combusts

fuel.

(MM) Utilization—The heat input (ex-pressed as million British thermal units per hour) for a unit.

(3) General Provisions.

(A) NOx Emissions Limitations. Beginning May 1, 2004, the following NOx emission rates shall apply:

1. EGUs located in the counties of Bollinger, Butler, Cape Girardeau, Carter, Clark, Crawford, Dent, Dunklin,

Gasconade, Iron, Lewis, Lincoln, Madison, Marion, Mississippi, Montgomery, New Madrid, Oregon, Pemiscot, Perry,

Phelps, Pike, Ralls, Reynolds, Ripley, St. Charles, St. Francois, Ste. Genevieve, Scott, Shannon, Stoddard, Warren,

Washington and Wayne, shall limit emissions of NOxto the more stringent of a rate of 0.25 lbs NOx/million British

thermal units per hour (mmBtu) of heat input during the control period or any applicable permitted NOxlimitation

under 10 CSR 10-6.060.

2. EGUs located in the City of St. Louis and the counties of Franklin, Jefferson and St. Louis shall limit emissions

of NOx

to the more stringent rate of 0.18 lbs NOx/mmBtu of heat input during the control period, or any applicable

permitted NOx

limitation under 10 CSR 10-6.060. For the purpose of calculating ERCs under subparagraph (3)(B)5.C.

of this rule, the regulated NOx emission rate (NOxERr) for units located in these areas shall be 0.25 lbs NOx/mmBtu.

3. EGUs located in the counties of Buchanan, Jackson, Jasper, or Randolph shall limit emissions of NOxto the

more stringent rate of any applicable permitted NOx

limitation under 10 CSR 10-6.060 or the less stringent of:

A. 0.35 lbs NOx

/mmBtu of heat input during the control period; or

B. 0.68 lbs NOx/mmBtu of heat input during the control period, provided that the unit is a cyclone EGU and

burns tire-derived fuel in a quantity of at least one hundred thousand (100,000) PTEs per year. For installations with

multiple cyclone EGUs, compliance with the one hundred thousand (100,000) PTE burned per year may also be based

on the average number of PTEs burned per cyclone EGU.

4. EGUs located in any county not identified in paragraph (3)(A)1., (3)(A)2., or (3)(A)3. of this rule shall limit

emissions of NOxto the more stringent of a rate of 0.35 lbs NOx/mmBtu of heat input during the control period or any

applicable permitted NOx

limitation under 10 CSR 10-6.060.

5. In lieu of complying with the applicable emission limitations in paragraph (3)(A)1. through (3)(A)4. of this rule,

any affected unit may comply through the NOx emissions trading program under subsection (3)(B) of this rule.

(B) NOx Emissions Trading Program.

1. NOx authorized account representative. The NOx authorized account representative shall have the

responsibilities and meet the requirements identified in this subsection.

A. Each affected unit shall have only one NOx authorized account representative with respect to all matters

under the NOx

trading program. Each affected unit may have only one (1) alternate NOx authorized account

representative who may act on behalf of the NOx authorized account representative.

B. A NOx authorized account representative may be responsible for multiple units at an installation or within a

system of installations with the same owner.

C. The department will act on a valid submission made on behalf of owners or operators of an affected unit only

if the submission has been made, signed and certified by the NOx authorized account representative or the alternate

NOx authorized account representative.

D. Each unit must submit an account certificate of representation no later than January 1, 2004 or December 31

of the year in which the rule becomes applicable for units installed after January 1, 2004.

2. NOx allowance tracking system.

A. NOx allowance tracking system accounts. The department will establish one (1) compliance account for

each NOx unit and one (1) overdraft account for each NOx authorized account representative with one (1) or more NOx

units. Allocations of NOx allowances pursuant to paragraphs (3)(B)3. or (3)(B)10. of this rule and deductions or

transfers of NOx allowances pursuant to paragraphs (3)(B)3., (3)(B)7., (3)(B)9., or (3)(B)10. of this rule will be

recorded in the compliance accounts or overdraft accounts.

B. Establishment of accounts.

(I) Compliance accounts and overdraft accounts. Upon receipt of a complete account certificate of

representation, the department will establish—

(a) A compliance account for each affected NOx unit for which the account certificate of representation

was submitted; and

(b) An overdraft account for each NOx authorized account representative for which the account certificate

of representation was submitted.

(II) Account identification. The department will assign a unique identifying number to each compliance

account and each overdraft account.
C. Recording of NOx allowance allocations.

(I) The department will record the NOx allowances for the 2004 control period in the NOx units’ compliance

accounts.

(II) Serial numbers for allocated NOx allowances. The department will assign each NOx allowance a unique

identification number that will include digits identifying the year for which the NOx allowance is allocated.

3. NOx allowances.

A. Projected NOx allowances.

(I) By March 1, 2004, the NOx authorized account representative for each affected unit shall submit to the

department a report containing the following:

(a) The projected control period NOx emission rate for each affected unit;

(b) The average of the three (3) most recent control period heat inputs, unless those three (3) periods are

not representative of normal operation; and

(c) A plan identifying the methodology for compliance with subsection (3)(A) of this rule.

(II) The department will review each report and make any amendments within fifteen (15) working days.

(III) The department will develop a summary of projected NOx allowances on a unit by unit and statewide

basis for distribution on or before May 1 of each year using Equation 1 of this rule.

Equation 1:

HIp × ERp = NOxALp

2000

where:

HIp =the projected control period heat input for each NOx unit;

ERp =the projected control period

emission rate for each NOx

unit; and

NOxALp =the projected NOx allowance for

each NOx unit rounded down to

the nearest ton (in tons).

B. Control period NOx allowances.

(I) By October 31 following each control period, each NOx authorized account representative shall submit to

the department the actual total control period heat input and actual average emission rate in a compliance report

consistent with requirements of section (4) of this rule for each affected NOx unit.

(II) By November 15 following each control period, the department will issue a notice to each NOx

authorized account representative of the actual NOx allowances recorded in the unit compliance account for each

affected NOx unit using Equation 2 of this rule.

Equation 2:

HIa × Err = NOxALa

2000

where:

HIa =the actual control period heat input for each NOx unit;

ERr =the allowable control period emission rate for each NOx unit as determined in paragraphs (3)(A)1.

through (3)(A)4. of this rule; and

NOxALa =the actual NOx allowance for each

unit for the control period rounded down to the nearest ton (in

tons).

4. Compliance. By the end of the NOx allowance transfer deadline, each NOx unit shall have sufficient NOx

allowances in their compliance account to allow for the deductions in subparagraph (3)(B)4.B. of this rule.

A. NOx allowance transfer deadline. The NOx allowances are available to be deducted for compliance with a

unit’s NOx emissions limitation for a control period in a given year only if the NOx allowances—

(I) Were allocated for a control period in a prior year or the same year; and

(II) Are held in the unit’s compliance account or the unit’s overdraft account as of the NOx allowance transfer

deadline for that control period.
B. Deductions for compliance.

(I) The director will deduct NOx allowances to cover the unit’s NOx emissions for the control period—

(a) From the compliance account; and

(b) Only if no more NOx allowances available under subparagraph (3)(B)4.A. of this rule remain in the

compliance account, from the overdraft account. In deducting allowances for units from the overdraft account, the

director will begin with the unit having the compliance account with the lowest NOx Allowance Tracking System

account number and end with the unit having the compliance account with the highest NOx Allowance Tracking

System account number.

(II) The director will deduct NOx allowances until the number of NOx allowances deducted for the control

period equals the number of tons of NOx emissions, determined in accordance with part (3)(B)4.B.(III) of this rule,

from the unit for the control period for which compliance is being determined; or until no more NOx allowances

available under subparagraph (3)(B)4.A. of this rule remain in the respective account.

(III) For a NOx unit that is allocated NOx allowances under part (3)(B)3.B.(II) of this rule for a control

period, the department will deduct NOx allowances under subparagraph (3)(B)4.B. or (3)(B)4.E. of this rule to account

for the actual utilization of the unit during the control period. The department will calculate the number of NOx

allowances to be deducted to account for the unit’s actual utilization using Equation 3 of this rule.

Equation 3:

ΣHIa × ERa= NOxALd

where:

HIa =the actual control period heat

input for each NOx unit;

ERa =the actual control period emission rate for each NOx unit; and

NOxALd =the number of NOx allowances

that will be deducted from each

NOx unit’s compliance account

(rounded down to the nearest

allowance).

C. Identification of NOx allowances by serial number.

(I) The NOx authorized account representative may identify by serial number the NOx allowances to be

deducted from the unit’s compliance account under subparagraph (3)(B)4.B., (3)(B)4.D., or (3)(B)4.E. of this rule.

Such identification will be made in the compliance certification report submitted in accordance with paragraph (4)(A)1.

of this rule.

(II) The staff director will deduct NOx allowances for a control period from the compliance account, in the

absence of an identification or in the case of a partial identification of NOx allowances by serial number under part

(3)(B)4.C.(I) of this rule, or the overdraft account in the following order:

(a) Those NOx allowances that were allocated for the control period to the unit under part (3)(B)3.B.(II) of

this rule;

(b) Those NOx allowances that were allocated for the control period to any unit and transferred and

recorded in the account pursuant to paragraphs (3)(B)7. and (3)(B)8. of this rule, in order of their date of recording;

(c) Those NOx allowances that were allocated for a prior control period to the unit under part (3)(B)3.B.(II)

of this rule; and

(d) Those NOx allowances that were allocated for a prior control period to any unit and transferred and

recorded in the account pursuant to paragraphs (3)(B)7. and (3)(B)8. of this rule, in order of their date of recording.

D. Deductions for units sharing a common stack. In the case of units sharing a common stack and having

emissions that are not separately monitored or apportioned in accordance with section (4) of this rule—

(I) The NOx authorized account representative of the units shall identify the percentage of NOx allowances to

be deducted from each such unit’s compliance account to cover the unit’s share of NOx emissions from the common

stack for a control period. Such identification shall be made in the compliance certification report submitted in

accordance with paragraph (4)(A)1. of this rule.

(II) Notwithstanding part (3)(B)4.B.(II) of this rule, the director will deduct NOx allowances for each unit

until the number of NOx allowances deducted equals the unit’s identified percentage (under part (3)(B)4.D.(I) of this

rule) of the number of tons of NOx emissions, as determined in accordance with section (4) of this rule, from the

common stack for the control period for which compliance is being determined or, if no percentage is identified, an

equal percentage for each unit, plus the number of allowances required for deduction to account for actual utilization

under subparagraph (4)(A)1.G. of this rule for the control period.

E. The director will record in the appropriate compliance account or overdraft account all deductions from such

an account pursuant to subparagraphs (3)(B)4.B. and (3)(B)4.D. of this rule.

5. Banking.

A. NOx allowances may be banked for future use or transfer into a compliance account or an overdraft account,

as follows:
(I) Any NOx allowance that is held in a compliance account or an overdraft account, will remain in such

account until the NOx allowance is deducted or transferred under paragraphs (3)(B)4., (3)(B)5., (3)(B)6., or (3)(B)7. of

this rule.

(II) The director will designate, as a banked NOx allowance, any NOx allowance that remains in a compliance

account or an overdraft account after the director has made all deductions for a given control period from the

compliance account or overdraft account pursuant to paragraph (3)(B)4. of this rule.

B. Each year, starting in 2005, after the director has completed the designation of banked NOx allowances under

part (3)(B)5.A.(II) of this rule and before May 1 of the year, the department will determine the extent to which banked

NOx allowances may be used for compliance in the control period for the current year, as follows:

(I) The director will determine the total number of banked NOx allowances held in compliance accounts or

overdraft accounts.

(II) If the total number of banked NOx allowances determined, under part (3)(B)5.B.(I) of this rule, to be held

in compliance accounts or overdraft accounts is less than or equal to ten percent (10%) of the sum of the NOxtrading

program allocations for the previous control period, any banked NOx allowance may be deducted for compliance in

accordance with paragraph (3)(B)4. of this rule.

(III) If the total number of banked NOx allowances determined, under part (3)(B)5.B.(I) of this rule, and held

in compliance accounts or overdraft accounts exceeds ten percent (10%) of the sum of the state trading program

allocations for the previous control period, any banked allowance may be deducted for compliance in accordance with

paragraph (3)(B)4. of this rule, except as follows:

(a) The director will determine the adjustment factor using Equation 4 of this rule.

Equation 4:

AF = 0.1  ́ åNOxALa

åNOxALb

where:

AF =the adjustment factor;

NOxALa =the sum of the statewide NOx

allowance allocated for the previous control period; and

NOxALb =the sum of the banked NOx allowances as determined under

part (3)(B)5.B.(I) of this rule on

January 1 of the current year;

(b) The director will determine the number of banked NOx allowances in the account that may be deducted

for compliance in accordance with paragraph (3)(B)4. of this rule using Equation 5 of this rule. Any banked NOx

allowances in excess of the product of Equation 5 may be deducted for compliance in accordance with paragraph

(3)(B)4. of this rule, except that, if such NOx allowances are used to make a deduction, two (2) such NOx allowances

must be deducted for each deduction of one (1) NOx allowance required under paragraph (3)(B)4. of this rule.

Equation 5:

AF × NOxALb

where

AF =the adjustment factor calculated

in Equation 4; and

NOxALb =the number of NOx allowances

in a NOx unit’s account;

(IV) Geographic flow control.

(a) Banked NOx allowances made available for use in parts (3)(B)5.B.(II) and (3)(B)5.B.(III) of this rule

may be traded on a one to one (1:1) basis unless otherwise specified in subparts (3)(B)5.B.(IV)(b) and

(3)(B)5.B.(IV)(c) of this rule.

(b) Banked NOx allowances made available for use in parts (3)(B)5.B.(II) and (3)(B)5.B.(III) of this rule

may be traded from the control region for which paragraphs (3)(A)3. and (3)(A)4. of this rule are applicable to the

control region for which paragraph (3)(A)1. of this rule is applicable on a one and one-half to one (1.5:1) basis.

(c) Banked NOx allowances made available for use in part (3)(B)5.B.(II) and (3)(B)5.B.(III) of this rule

may be traded from the control region for which paragraphs (3)(A)1., (3)(A)3. and (3)(A)4. of this rule are applicable

to the control region for which paragraph (3)(A)2. of this rule is applicable on a one and one-half to one (1.5:1) basis.

C. Early reductions. For any affected NOx unit that reduces its NOx emission rate in the 2000, 2001, 2002 or

2003 control period, the owner or operator of the unit may request early reduction credits, and the department will

allocate ERCs by January 31 of each year to the unit in accordance with the following requirements.
(I) Each NOx unit for which the owner or operator requests any ERCs under part (3)(B)5.C.(IV) of this rule

shall monitor NOx emissions in accordance with section (4) of this rule for each control period for which such ERCs

are requested. The unit’s monitoring system availability shall be not less than ninety percent (90%) during the control

period, and the unit must not have been found to be in violation of any applicable state or federal emissions or

emissions-related requirements.

(II) NOx emission rate and heat input under parts (3)(B)5.C.(III) through (3)(B)5.C.(V) of this rule shall be

determined in accordance with section (4) of this rule.

(III) Each NOx unit for which the owner or operator requests any ERCs under part (3)(B)5.C.(IV) of this rule

shall reduce its NOx emission rate, for each control period for which ERCs are requested, to less than the applicable

requirement of subsection (3)(A) of this rule.

(IV) The NOx authorized account representative of a NOx unit that meets the requirements of parts

(3)(B)5.C.(I) and (3)(B)5.C.(III) of this rule may submit to the department a request for ERCs for the unit based on

NOx emission rate reductions made by the unit in the control period for 2000, 2001, 2002 or 2003 in accordance with

part (3)(B)5.C.(III) of this rule.

(a) In the ERC request, the NOx authorized account representative may request ERCs for such control

period using Equation 6 of this rule.

Equation 6:

ERC = HIa × (NOxERr – NOxERa) ÷ 2000

where:

ERC =the ERCs accrued rounded down

to the nearest ton of NOx

;

HIa =the actual control period heat

input for each NOx unit;

NOxERr =the regulated NOx emission rate

as identified in paragraphs

(3)(A)1. through (3)(A)4. of this

rule; and

NOxERa =the actual control period emission rate for each NOx unit.

(b) The ERC request must be submitted, in a format specified by the department, by October 31 of the year

in which the NOx emission rate reductions are made.

(V) The department will allocate NOx allowances no later than January 31 to NOx units meeting the

requirements of parts (3)(B)5.C.(I) and (3)(B)5.C.(III) of this rule and covered by early reduction requests meeting the

requirements of subpart (3)(B)5.C.(IV)(b) of this rule.

(VI) NOx allowances recorded under part (3)(B)5.C.(V) of this rule may be deducted for compliance under

paragraph (3)(B)3. of this rule for the control periods in 2004 or 2005. Notwithstanding subparagraph (3)(B)5.A. of this

rule, the director will deduct as retired any NOx allowance that is recorded under part (3)(B)5.C.(V) of this rule and is

not deducted for compliance in accordance with paragraph (3)(B)3. of this rule for the control period in 2004 or 2005.

(VII) NOx allowances recorded under part (3)(B)5.C.(V) of this rule are not treated as banked allowances in

2005 for the purposes of subparagraphs (3)(B)5.A. and (3)(B)5.B. of this rule.

(VIII) Compliance set-aside account.

(a) The department will establish a compliance set-aside account, which will contain fifty percent (50%) of

the ERCs, rounded down to the nearest ton, that are issued in accordance with part (3)(B)5.C.(II) of this rule.

(b) Fifty percent (50%) of the ERCs, rounded down to the nearest ton, in the compliance set-aside account

will be sold to the NOx authorized account representatives that apply for the ERCs and can demonstrate that the ERCs

will be used for compliance by a unit that is in a research, development or trial stage for new air pollution control

technology. If less than fifty percent (50%) of the ERCs are needed for these units, the remainder will be sold in

accordance with subpart (3)(B)5.C.(VIII)(c) of this rule.

(c) The remaining ERCs in the compliance set-aside account will be sold in the order of request.

(d) NOx authorized account representatives must request all of the ERCs needed from the compliance setaside account for the 2004 and 2005 control periods by February 28, 2004. The request for ERCs shall include the

following information:

I. The owner and operator;

II. The NOx authorized account representative;

III. The NOx unit identification number and name;

IV. The number of ERCs being requested; and

V. The overdraft or compliance account number.

(e) The department shall set the market rate for ERCs by February 1, 2004. Market rate shall not be set at

a value below five hundred dollars ($500) per ERC nor in excess of one thousand dollars ($1,000) per ERC, and shall

be established based on the following in the order listed:
I. The average rate of exchange of NOx credits and ERCs in the Missouri NOx Emissions Trading

Program; and

II. The most recent control cost data available.

(f) The department shall notify the successful purchasers of ERCs by April 1, 2004 and payment shall be

made by the purchaser to the sellers by April 15, 2004 for ERCs purchased. Once payment has been received by the

sellers, they shall notify the department and the appropriate ERCs shall be transferred to the appropriate account by

May 1, 2004.

(g) The ERCs will be sold from the compliance set-aside account on a percentage basis. Each purchaser

will purchase a portion of each seller’s ERCs.

(h) Once the appropriate ERCs are transferred to the purchaser’s account, the ERCs are non-transferrable.

(i) Any ERC allowances remaining in the compliance set-aside account after May 1, 2004, will be returned

to the unit that generated the ERCs by May 15, 2004.

(IX) All ERCs will be retired on January 31, 2006.

6. Account error. The director may correct any error in any NOx Allowance Tracking System account. Within ten

(10) business days of making such correction, the director will notify the NOx authorized account representative for the

account. The NOx authorized account representative will then have ten (10) business days to appeal the correction if

they feel the correction was made in error.

7. NOx allowance transfers. The NOx authorized account representatives seeking the recording of a NOx

allowance transfer shall submit the transfer request to the director. To be considered correctly submitted, the NOx

allowance transfer shall include the following elements in a format specified by the director:

A. The numbers identifying both the transferor and transferee accounts;

B. A specification by serial number of each NOx allowance to be transferred; and

C. The printed name and signature of the NOx authorized account representative of the transferor account and

the date signed.

8. Department recording.

A. Within five (5) business days of receiving a NOx allowance transfer, except as provided in subparagraph

(3)(B)9.B. of this rule, the department will record a NOx allowance transfer by moving each NOx allowance from the

transferor account to the transferee account as specified by the request, provided that—

(I) The transfer is correctly submitted under paragraph (3)(B)8. of this rule;

(II) The transferor account includes each NOx allowance identified by serial number in the transfer; and

(III) The transfer meets all other requirements of this paragraph.

B. A NOx allowance transfer that is submitted for recording following the NOx allowance transfer deadline and

that includes any NOx allowances allocated for a control period prior to or the same as the control period to which the

NOx allowance transfer deadline applies will not be recorded until after completion of the process of recording of NOx

allowance allocations of this rule.

C. Where a NOx allowance transfer submitted for recording fails to meet the requirements of subparagraph

(3)(B)7. of this rule, the department will not record such transfer.

9. Notification.

A. Notification of recording. Within five (5) business days of recording of a NOx allowance transfer under

paragraph (3)(B)8. of this rule, the department will notify each NOx authorized account representative of the transfer in

writing.

B. Notification of nonrecording. Within ten (10) business days of receipt of a NOx allowance transfer that fails

to meet the requirements of paragraph (3)(B)7. of this rule, the department will notify in writing the NOx authorized

account representatives of both accounts subject to the transfer of—

(I) A decision not to record the transfer; and

(II) The reasons for such nonrecording.

10. Individual EGU opt-ins. An EGU that is not an affected unit under subsection (1)(A) of this rule that vents all

of its emissions to a stack may qualify to become a NOx opt-in unit under this paragraph of this rule. A NOx opt-in unit

will not be allowed to participate in the NOxtrading program without prior approval.

A. A NOx opt-in unit shall have a NOx authorized account representative.

B. Request for initial NOx opt-in. In order to request to opt-in to the trading program, the NOx authorized

account representative of the unit must submit to the department at any time the following:

(I) The projected NOx emission rate for each affected unit;

(II) The average of the three (3) most recent years heat input on a monthly basis over the control period for

each affected unit; and

(III) A plan detailing the methodology for compliance with paragraph (3)(B)10. of this rule.

C. The department will review the request and respond within ninety (90) days of the date of receipt of the

request.

D. Request for opting-in to the NOx

trading program must be received by the department no later than February

1 of the same year as the control period that the NOx opt-in unit requests to begin participation in the NOx

trading

program.

E. The NOx opt-in units shall establish a baseline heat input and a baseline NOx emissions rate under the requirements of

subsection (5)(G) of this rule. After calculating the baseline heat input and the baseline NOx emissions rate for the NOx opt-in unit,

the department will notify the NOx authorized account representative of the unit of the resulting baseline.
F. The established baseline shall be the regulated NOx emission rate for the opt-in unit. The NOx opt-in unit

shall meet the same schedule as all NOx units with respect to all deadlines and schedules. The allowances issued to the

opt-in unit under this paragraph shall be calculated using Equation 7 of this rule.

Equation 7:

HIopt × ERopt = NOxALopt

2000

where:

HIopt =the actual control period heat

input for the NOx opt-in unit;

ERopt =the baseline emission rate for

the NOx opt-in unit as determined under subsection (5)(F)

of this rule; and

NOxALopt =the actual NOx allowances for

the opt-in unit for the control

period (in tons).

G. If at any time before the approval of a NOx opt-in unit, the department determines that the unit does not

qualify as a NOx opt-in unit under this paragraph, the department will issue a denial of the NOx opt-in request for the

unit.

H. Withdrawal of NOx opt-in request. A NOx authorized account representative of a unit may withdraw its

request to opt-in at any time prior to the approval for the NOx opt-in unit. Once the request for a NOx opt-in unit is

withdrawn, a NOx authorized account representative seeking to reapply must submit a new request for a NOx opt-in

unit under this subsection.

I. Effective date. The effective date of the initial NOx opt-in shall be May 1 of the first control period starting

after the approval of the NOx opt-in unit by the department. The unit shall be a NOx opt-in unit and an affected NOx

unit as of the effective date of the approval and be subject to the requirements of this rule.

J. Change in regulatory status. When a NOx opt-in unit becomes an affected unit, the NOx authorized account

representative shall notify the department in writing of such change in the NOx opt-in unit’s regulatory status within

thirty (30) days of such change.

K. Withdrawal from NOx

trading program. A NOx opt-in unit may withdraw from the NOxtrading program if it

meets the following requirements:

(I) To withdraw from the NOx

trading program, the NOx authorized account representative of a NOx opt-in

unit shall submit to the department a request to withdraw effective as of a specified date prior to May 1

or after September 30. The submission shall be made no later than ninety (90) days prior to the requested effective date

of withdrawal.

(II) Before a NOx opt-in unit may withdraw from the NOx

trading program, the following conditions must be

met.

(a) For the control period immediately before the withdrawal is to be effective, the NOx authorized account

representative must submit or must have submitted to the department an annual compliance certification report.

(b) If the NOx opt-in unit has excess emissions for the control period immediately before the withdrawal is to be effective, the department will deduct from the NOx opt-in unit’s compliance

account, or the overdraft account of the affected unit where the affected unit is located, the full amount required for the

control period.

(III) A NOx opt-in unit that withdraws from the NOxtrading program shall comply with all requirements

under the NOxtrading program concerning all years for which such NOx opt-in unit was a NOx opt-in unit, even if such

requirements must be complied with after the withdrawal takes effect.

(IV) Notification procedures shall be as follows:

(a) After the requirements for withdrawal under this paragraph have been met, the department will issue a

notification to the NOx authorized account representative of the NOx opt-in unit of the acceptance of the withdrawal of

the NOx opt-in unit as of a specified effective date that is after such requirements have been met and that is prior to

May 1 or after September 30.

(b) If the requirements for withdrawal under this paragraph have not been met, the department will issue a

notification to the NOx authorized account representative of the NOx opt-in unit that the NOx opt-in unit’s request to

withdraw is denied. If the NOx opt-in unit’s request to withdraw is denied, the NOx opt-in unit shall remain subject to

the requirements for a NOx opt-in unit.

(V) A NOx opt-in unit shall continue to be a NOx opt-in unit until the effective date of the withdrawal.
(VI) Once a NOx opt-in unit withdraws from the NOx

trading program, the NOx authorized account

representative may not submit another application for the NOx opt-in unit prior to the date that is four (4) years after the

date on which the withdrawal became effective.

11. Output based emissions trading of NOx. (Reserved)

(4) Reporting and Record Keeping.

(A) Reporting.

1. A compliance certification report for each affected unit subject to section (3) of this rule shall be submitted to

the department by October 31 following each control period. The report shall include:

A. The owner and operator;

B. The NOx authorized account representative;

C. NOx unit name, compliance and overdraft account numbers;

D. NOx emission rate limitation (lb/mmBtu);

E. Actual NOx emission rate (lb/mmBtu) for the control period;

F. Actual heat input (mmBtu) for the control period. The unit’s total heat input for the control period in each

year will be determined in accordance with section (5) of this rule; and

G. Actual NOx mass emissions (tons) for the control period.

2. Reporting shall be based on the test methods identified in section (5) of this rule. Any unit with valid

continuous emission montoring system (CEMS) data for the control period must use that data to determine compliance

with the provisions of this rule. The owner or operator for each affected unit which performs non-CEMS testing to

demonstrate compliance of a unit subject to section (3) of this rule shall submit:

A. A control period report identifying monthly fuel usage and monthly total heat input by December 31 of the

same year as the control period; and

B. A written report of all stack tests completed after controls are effective to the department within sixty (60)

days after completion of sample and data collection.

(B) Record Keeping.

1. Each owner or operator of an affected unit subject to section (3) of this rule shall maintain records of the

following:

A. Total fuel consumed during the control period;

B. The total heat input for each emissions unit during the control period;

C. Reports of all stack testing conducted to meet the requirements of this rule;

D. All other data collected by a CEMS necessary to convert the monitoring data to the units of the applicable

emission limitation;

E. All performance evaluations conducted in the past year;

F. All monitoring device calibration checks;

G. All monitoring system, monitoring device and performance testing measurements;

H. Records of adjustments and maintenance performed on monitoring systems and devices; and

I. A log identifying each period during which the CEMS or alternate procedure was inoperative, except for zero

and span checks, and the nature of the repairs and adjustments performed to make the system operative.

2. All records must be kept on-site for a period of five (5) years and made available to the department upon

request.

3. Each owner or operator of any gas- or oil-fired unit that qualifies for the low-emitter exemption in paragraph

(1)(B)1. of this rule or the low hours of operation exemption in paragraph (1)(B)2. of this rule, shall maintain records of

the total operating hours during which fuel is consumed for each emission unit during the control period. In the event

that another record keeping schedule has been previously approved for the EGU and is included as an operating permit

condition, the EGU may use that schedule to comply with this requirement.

(5) Test Methods and Monitoring. For units subject to this rule, the following requirements shall apply:

(A) Compliance shall be measured during the control period;

(B) All valid data shall be used for calculating NOx emissions rates;

(C) Coal-Fired Units. Any coal-affected unit subject to this rule shall install, certify, operate, maintain, and quality

assure a NOx and diluent CEMS pursuant to the requirements in 40 CFR part 75;

(D) Non-Exempt Peaking Units. Any gas- or oil-fired peaking unit that is subject to the emission limitation or

trading aspects of this rule shall:

1. Install, certify, operate, maintain, and quality assure a NOx and diluent CEMS; or

2. Install, certify, operate, and quality assure fuel-metering equipment pursuant to 40 CFR part 75, Appendix D

and shall establish a NOx

-to-load curve pursuant to 40 CFR part 75, Appendix E;

(E) Exempt Units.

1. The following hierarchy of methods may be used to determine if a unit qualifies for the low-emitter exemption

in paragraph (1)(B)1. of this rule. If data is not available for an emission estimation method or an emission estimation

method is impractical for a source, then the subsequent emission estimation method should be used in its place:

A. CEMS as specified in 10 CSR 10-6.110;
B. Stack tests as specified in 10 CSR 10-6.110;

C. Material/mass balance;

D. AP-42 (Environmental Protection Agency (EPA) Compilation of Emission Factors) or FIRE (Factor

Information and Retrieval System) (as updated);

E. Other EPA documents as specified in 10 CSR 10-6.110;

F. Sound engineering calculations; or

G. Facilities shall obtain department pre-approval of emission estimation methods other than those listed in

subparagraphs (5)(E)1.A. through (5)(E)1.F. of this rule before using such method to estimate emissions. In the event

that such method has previously been approved for the EGU and included as an operating permit condition, the EGU

may use that method to comply with this requirement.

2. Any gas- or oil-fired unit that qualifies for the low-emitter exemption in paragraph (1)(B)1. or the low hours of

operation exemption in paragraph (1)(B)2. shall install and operate a non-resettable hour meter or determine the hours

of operation for each emission unit during the control period. In the event that another monitoring method has

previously been approved for the EGU and included as an operating permit condition, the EGU may use that method to

comply with this requirement.

(F) Opt-In Units. Any unit that opts into the trading program, pursuant to paragraph (3)(B)10., shall be monitored

consistent with the provisions of subsections (5)(D) and (5)(E) above. For the purpose of establishing the baseline

allowance allocation, an opt-in unit shall install, certify, operate, maintain, and quality assure the monitoring device(s)

and collect data for at least one (1) control season prior to submission of an opt-in application.

AUTHORITY: section 643.050, RSMo 2000.* Original rule filed Feb. 15, 2000, effective Sept. 30, 2000. Amended:

Filed Dec. 4, 2002, effective Aug. 30, 2003. Amended: Filed Oct. 2, 2006, effective May 30, 2007.

*Original authority: 203.050, RSMo 1965, amended 1972, transferred to 643.050, RSMo 1986, amended 1992, 1993, 1995.
10 CSR 10-6.360 Control of NOx Emissions From Electric Generating Units and Non-Electric Generating

Boilers

PURPOSE: This rule reduces emissions of oxides of nitrogen (NOx) to ensure compliance with the federal NOx control

plan to reduce the transport of air pollutants. The rule establishes an emission budget for large electric generating

units and non-electric generating boilers. The evidence supporting the need for this proposed rulemaking, per section

536.016, RSMo, is the U.S. Environmental Protection Agency NOx State Implementation Plan (SIP) Call dated April

21, 2004.

(1) Applicability.

(A) This rulemaking shall apply throughout Bollinger, Butler, Cape Girardeau, Carter, Clark, Crawford, Dent,

Dunklin, Franklin, Gasconade, Iron, Jefferson, Lewis, Lincoln, Madison, Marion, Mississippi, Montgomery, New

Madrid, Oregon, Pemiscot, Perry, Pike, Ralls, Reynolds, Ripley, St. Charles, St. Francois, St. Louis, Ste. Genevieve,

Scott, Shannon, Stoddard, Warren, Washington and Wayne counties and the City of St. Louis.

(B) The following units shall be NOx budget units, and any source that includes one (1) or more such units shall be a

NOx budget source, subject to the requirements of this rule:

1. Electric generating units that serve a generator with a nameplate capacity greater than twenty-five megawatts

(25 MW) and—

A. For non-cogeneration units—

(I) Commenced operation before January 1, 1997, and served a generator producing electricity for sale under

a firm contract to the electric grid during 1995 or 1996; or

(II) Commenced operation in 1997 or 1998 and served a generator producing electricity for sale under a firm

contract to the electric grid during 1997 or 1998; or

(III) Commenced operation on or after January 1, 1999, and served or serves at any time a generator

producing electricity for sale; and

B. For cogeneration units—

(I) Commenced operation before January 1, 1997, and failed to qualify as an unaffected unit under 40 CFR

72.6(b)(4) for 1995 or 1996 under the Acid Rain Program; or

(II) Commenced operation in 1997 or 1998 and failed to qualify as an unaffected unit under 40 CFR

72.6(b)(4) for 1997 or 1998 under the Acid Rain Program; or

(III) Commenced operation on or after January 1, 1999, and failed or fails to qualify as an unaffected unit

under 40 CFR 72.6(b)(4) for any year under the Acid Rain Program; and

2. Non-electric generating boilers, combined cycle systems, and combustion turbines that have a maximum

design heat input greater than two hundred fifty (250) million British thermal units per hour (mmBtu/hr) and—

A. For non-cogeneration units—

(I) Commenced operations before January 1, 1997, and did not serve a generator producing electricity for

sale under a firm contract to the electric grid during 1995 or 1996; or

(II) Commenced operations in 1997 or 1998 and did not serve a generator producing electricity for sale under

a firm contract to the electric grid during 1997 or 1998; or

(III) Commenced operation on or after January 1, 1999, and:

(a) At no time served or serves a generator producing electricity for sale; or

(b) At any time served or serves a generator with a nameplate capacity of twenty-five (25) MW or less

producing electricity for sale, and with the potential to use no more than fifty percent (50%) of the potential electrical

output capacity of the unit; and

B. For cogeneration units—

(I) Commenced operation before January 1, 1997, and qualified as an unaffected unit under 40 CFR

72.6(b)(4) for 1995 or 1996 under the Acid Rain Program; or

(II) Commenced operation in 1997 or 1998 and qualified as an unaffected unit under 40 CFR 72.6(b)(4) for

1997 or 1998 under the Acid Rain Program; or

(III) Commenced operation on or after January 1, 1999, and qualified or qualifies as an unaffected unit under

40 CFR 72.6(b)(4) for each year under the Acid Rain Program.

(C) Exemptions. The director shall provide the administrator written notice of the issuance of any permit under

subsection (3)(C) of this rule and, upon request, a copy of the permit. Notwithstanding subsection (1)(A) of this rule, a

unit shall not be a NOx budget unit if the unit has a federally enforceable permit that:

1. Restricts the unit to burning only natural gas or fuel oil;

2. Restricts the unit’s operating hours to the number calculated by dividing twenty-five (25) tons of potential mass

emissions by the unit’s maximum potential hourly NOx mass emissions;

3. Requires that the unit’s maximum potential NOx mass emissions be calculated by multiplying the unit’s

maximum rated hourly heat input by the highest default NOx emission rate applicable to the unit under 40 CFR

75.19(c), Table LM-2;
4. Requires that the owner or operator of the unit shall retain at the source that includes the unit, for five (5) years,

records demonstrating that the operating hours restriction, the fuel use restriction, and the other requirements of the

permit related to these restrictions were met; and

5. Requires that the owner or operator of the unit shall report the unit’s hours of operation (treating any partial

hour of operation as a whole hour of operation) during each control period to the director by November 1 of each year

for which the unit is subject to the federally enforceable permit.

(D) Loss of Exemption. If, for any control period, the unit does not comply with the fuel use restriction under

paragraph (1)(C)1. of this rule or the operating hours restriction under paragraphs (1)(C)2. and 3. of this rule, or the fuel

use or the operating hour restrictions are removed from the unit’s federally enforceable permit or otherwise becomes no

longer applicable, the unit shall be a NOx budget unit, subject to the requirements of this rule. Such unit shall be treated

as commencing operation and, for a unit under paragraph (1)(B)1. of this rule, commencing commercial operation on

September 30 of the control period for which the fuel use restriction or the operating hours restriction is no longer

applicable or during which the unit does not comply with the fuel use restriction or the operating hours restriction.

(E) Retired Unit Exemption. This subsection applies to any NOx budget unit that is permanently retired.

1. Standard provisions.

A. Any NOx budget unit that is permanently retired shall be exempt from the NOx budget trading program,

except for the provision of subsection (1)(E), sections (1) and (2), subsections (3)(E), (3)(F) and (3)(G) of this rule.

B. The exemption under subparagraph (1)(E)1.A. of this rule shall become effective the day on which the unit is

permanently retired. Within thirty (30) days of permanent retirement, the NOx authorized account representative shall

submit a statement to the director. A copy of the statement shall be submitted to the administrator. The statement shall

state that the unit is permanently retired and will comply with the requirements of paragraph (1)(E)2. of this rule.

C. After receipt of the notice under subparagraph (1)(E)1.B. of this rule, the director will amend any permit

covering the source at which the unit is located to add the provisions and requirements of the exemption under

subparagraph (1)(E)1.A. and paragraph (1)(E)2. of this rule.

2. Special provisions.

A. A unit exempt under this subsection shall not emit any nitrogen oxides, starting on the date that the

exemption takes effect.

B. The owners and operators and, to the extent applicable, the NOx authorized account representative of a unit

exempt under this section shall comply with the requirements of the NOx budget trading program concerning all

periods for which the exemption is not in effect, even if such requirements arise, or must be complied with, after the

exemption takes effect.

C. Reserved

D. For a period of five (5) years from the date the records are created, the owners and operators of a unit exempt

under this section shall retain, at the source that includes the unit, records demonstrating that the unit is permanently

retired. The five (5)-year period for keeping records may be extended for cause, at any time prior to the end of the

period, in writing by the director or the administrator. The owners and operators bear the burden of proof that the unit is

permanently retired.

E. A unit exempt under subsection (1)(E) of this rule and located at a source that is required, except for this

exemption, would be required to have a Title V or a non-Title V operating permit, shall not resume operation unless the

NOx authorized account representative of the source submits a complete NOx budget permit application for the unit not

less than eighteen (18) months prior to the later of May 1, 2007 or the date on which the unit is to first resume

operation.

3. Loss of exemption. For the purpose of applying monitoring requirements under section (4) of this rule, a unit

that loses its exemption under subsection (1)(E) of this rule shall be treated as a unit that commences operation or

commercial operation on the first date on which the unit resumes operation. On the earlier of the following dates, a

unit exempt under subsection (1)(E) of this rule shall lose its exemption:

A. The date on which the NOx authorized account representative submits a NOx budget permit application under

subparagraph (1)(E)2.E. of this rule; or

B. The date on which the NOx authorized account representative is required under subparagraph (1)(E)2.E. of

this rule to submit a NOx budget permit application.

(F) Compliance with this rule shall not relieve any owner or operator of the responsibility to comply fully with

applicable provisions of the Air Conservation Law and rules or any other requirements under local, state or federal law.

Specifically, compliance with this rule shall not violate the permit conditions previously established under 10 CSR 10-

6.060 or 10 CSR 10-6.065.

(G) Computation of Time.

1. Unless otherwise stated, any time period scheduled under the NOx budget trading program to begin on the

occurrence of an act or event, shall begin on the day the act or event occurs.

2. Unless otherwise stated, any time period scheduled under the NOx budget trading program to begin before the

occurrence of an act or event, shall be computed so that the period ends the day before the act or event occurs.

3. Unless otherwise stated, if the final day of any time period under the NOx budget trading program falls on a

weekend or a state or federal holiday, the time period shall be extended to the next business day.

(H) The requirements of sections (3), (4) and (5) of this rule will not apply to the control period beginning in 2009

and any control period therafter.
(2) Definitions.

(A) Account certificate of representation—The completed and signed submission required by subsection (3)(B) of

this rule for certifying the designation of a NOx authorized account representative for a NOx budget source or a group

of identified NOx budget sources who is authorized to represent the owners and operators of such source or sources and

of the NOx budget units at such source or sources with regard to matters under the NOx budget trading program.

(B) Account number—The identification number given by the administrator to each NOx allowance tracking system

account.

(C) Acid rain emissions limitation—As defined in 40 CFR 72.2, a limitation on emissions of sulfur dioxide or

nitrogen oxides under the Acid Rain Program under Title IV of the Clean Air Act.

(D) Administrator—The administrator of the United States Environmental Protection Agency or the administrator’s

duly authorized representative.

(E) Affiliate—Any person including an individual, corporation, service company, corporate subsidiary, firm,

partnership, incorporated or unincorporated association, political subdivision including a public utility district, city,

town, county, or a combination of political subdivisions, which directly or indirectly, through one (1) or more

intermediaries, controls, is controlled by, or is under common control with the regulated electrical corporation.

(F) Allocate or allocation—The determination by the director or the administrator of the number of NOx allowances

to be initially credited to a NOx budget unit or an allocation set-aside.

(G) Automated data acquisition and handling system (DAHS)—That component of the continuous emissions

monitoring system (CEMS), or other emissions monitoring system approved for use under section (4) of this rule,

designed to interpret and convert individual output signals from pollutant concentration monitors, flow monitors,

diluent gas monitors, and other component parts of the monitoring system to produce a continuous record of the

measured parameters in the measurement units required in this rule.

(H) Boiler—An enclosed fossil or other fuel-fired combustion device used to produce heat and to transfer heat to

recirculating water, steam, or other medium.

(I) CAA—The Clean Air Act, 42 U.S.C. 7401, as amended by Pub. L. No. 101-595 (November 15, 1990).

(J) Combined cycle system—A system comprised of one (1) or more combustion turbines, heat recovery steam

generators, and steam turbines configured to improve overall efficiency of electricity generation or steam production.

(K) Combustion turbine—An enclosed fossil or other fuel-fired device that is comprised of a compressor, a

combustor, and a turbine, and in which the flue gas resulting from the combustion of fuel in the combustor passes

through the turbine, rotating the turbine.

(L) Commence commercial operation—With regard to a unit that serves a generator, 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 subsection (1)(E) of this rule, for a unit that is a NOx budget unit under section (1) of this rule on the date

the unit commences commercial operation, such date shall remain the unit’s date of commencement of commercial

operation even if the unit is subsequently modified, reconstructed, or repowered. Except as provided in subsections

(1)(E) or (3)(H) of this rule, for a unit that is not a NOx budget unit under section (1) of this rule on the date the unit

commences commercial operation, the date the unit becomes a NOx budget unit under section (1) of this rule shall be

the unit’s date of commencement of commercial operation.

(M) Commence operation—To have begun any mechanical, chemical, or electronic process, including, with regard

to a unit, start-up of a unit’s combustion chamber. Except as provided in subsection (1)(E) of this rule, for a unit that is

a NOx budget unit under section (1) of this rule on the date of commencement of operation, such date shall remain the

unit’s date of commencement of operation even if the unit is subsequently modified, reconstructed, or repowered.

Except as provided in subsection (1)(E) of this rule or subsection (3)(H) of this rule, for a unit that is not a NOx budget

unit under section (1) of this rule on the date of commencement of operation, the date the unit becomes a NOx budget

unit under section (1) of this rule shall be the unit’s date of commencement of operation.

(N) Common stack—A single flue through which emissions from two (2) or more units are exhausted.

(O) Compliance account—NOx allowance tracking system account, established by the administrator for a NOx

budget unit under subsection (3)(F) of this rule, in which the NOx allowance allocations for the unit are initially

recorded and in which are held NOx allowances available for use by the unit for a control period for the purpose of

meeting the unit’s NOx emissions limitation.

(P) Compliance certification—A submission to the director or the administrator, that is required under subsection

(3)(D) of this rule to report a NOx budget source’s or a NOx budget unit’s compliance or noncompliance with this part

and that is signed by the NOx authorized account representative in accordance with subsection (3)(B) of this rule.

(Q) Continuous emissions monitoring system (CEMS)—The equipment required under section (4) of this rule to

sample, analyze, measure, and provide, by readings taken at least once every fifteen (15) minutes of the measured

parameters, a permanent record of nitrogen oxides emissions, expressed in tons per hour for nitrogen oxides. The

following systems are component parts included, consistent with 40 CFR 75, in a continuous emissions monitoring

system:

1. Flow monitor;

2. Nitrogen oxides pollutant concentration monitors;

3. Diluent gas monitor (oxygen or carbon dioxide) when such monitoring is required by section (4) of this rule;

4. A continuous moisture monitor when such monitoring is required by section (4) of this rule; and

5. An automated data acquisition and handling system.
(R) Control period—The period beginning May 1 of a calendar year and ending on September 30 of the same

calendar year.

(S) Emissions—Air pollutants exhausted from a unit or source into the atmosphere, as measured, recorded, and

reported to the administrator by the NOx authorized account representative and as determined by the administrator in

accordance with section (4) of this rule.

(T) Energy Information Administration—The Energy Information Administration of the United States Department of

Energy.

(U) Fossil fuel—Natural gas, petroleum, coal, or any form of solid, liquid, or gaseous fuel derived from such

material.

(V) Fossil fuel-fired—With regard to a unit, the combustion of fossil fuel, alone or in combination with any other

fuel, where fossil fuel—

1. Actually combusted comprises more than fifty percent (50%) of the annual heat input on a Btu basis during any

year starting in 1995 or, if a unit had no heat input starting in 1995, during the last year of operation of the unit prior to

1995; or

2. Is projected to comprise more than fifty percent (50%) of the annual heat input on a Btu basis during any year;

provided that the unit shall be “fossil fuel-fired” as of the date, during such year, on which the unit begins combusting

fossil fuel.

(W) General account—A NOx allowance tracking system account, established under subsection (3)(F) of this rule,

that is not a compliance account or an overdraft account.

(X) Generator—A device that produces electricity.

(Y) Heat input—The product (in mmBtu/time) of the gross calorific value of the fuel (in Btu/lb) and the fuel feed

rate into a combustion device (in mass of fuel/time), as measured, recorded, and reported to the administrator by the

NOx authorized account representative and as determined by the administrator in accordance with section (4) of this

rule, and does not include the heat derived from preheated combustion air, recirculated flue gases, or exhaust from

other sources.

(Z) Life-of-the-unit, firm power contractual arrangement—A unit participation power sales agreement under which a

utility or industrial customer reserves, or is entitled to receive, a specified amount or percentage of nameplate capacity

and associated energy from any specified unit and pays its proportional amount of such unit’s total costs, pursuant to a

contract—

1. For the life of the unit;

2. For a cumulative term of no less than thirty (30) years, including contracts that permit an election for early

termination; or

3. For a period equal to or greater than twenty-five (25) years or seventy percent (70%) of the economic useful life

of the unit determined as of the 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.

(AA) Maximum design heat input—The ability of a unit to combust a stated maximum amount of fuel per hour on a

steady state basis, as determined by the physical design and physical characteristics of the unit.

(BB) Maximum potential hourly heat input—An hourly heat input used for reporting purposes when a unit lacks

certified monitors to report heat input. If the unit intends to use Appendix D of 40 CFR 75 to report heat input, this

value should be calculated, in accordance with 40 CFR 75, using the maximum fuel flow rate and the maximum gross

calorific value. If the unit intends to use a flow monitor and a diluent gas monitor, this value should be reported, in

accordance with 40 CFR 75, using the maximum potential flow rate and either the maximum carbon dioxide

concentration (in percent CO2

) or the minimum oxygen concentration (in percent O2).

(CC) Maximum potential NOx emission rate—The NOx emission rate of nitrogen oxides (in lb/mmBtu) calculated in

accordance with section 3 of Appendix F of 40 CFR 75, using the maximum potential nitrogen oxides concentration as

defined in section 2 of Appendix A of 40 CFR 75, and either the maximum oxygen concentration (in percent O2) or the

minimum carbon dioxide concentration (in percent CO2), under all operating conditions of the unit except for unit startup, shutdown, and upsets.

(DD) Maximum rated hourly heat input—A unit-specific maximum hourly heat input (mmBtu) which is the higher

of the manufacturer’s maximum rated hourly heat input or the highest observed hourly heat input.

(EE) Monitoring system—Any monitoring system that meets the requirements of section (4) of this rule, including a

continuous emissions monitoring system, an excepted monitoring system, or an alternative monitoring system.

(FF) Nameplate capacity—The maximum electrical generating output (in MW) that a generator can sustain over a

specified period of time when not restricted by seasonal or other deratings as measured in accordance with the United

States Department of Energy standards.

(GG) Non-Title V permit—A federally enforceable permit administered by the director pursuant to the CAA and

regulatory authority under the CAA, other than Title V of the CAA and 40 CFR 70 or 40 CFR 71.

(HH) NOx allowance—An authorization by the department or the administrator under the NOx budget trading

program to emit up to one (1) ton of nitrogen oxides during the control period of the specified year or of any year

thereafter.
(II) NOx allowance deduction or deduct NOx allowances—The permanent withdrawal of NOx allowances by the

administrator from a NOx allowance tracking system compliance account or overdraft account to account for the

number of tons of emissions from a NOx budget unit for a control period, determined in accordance with section (4) of

this rule, or for any other NOx allowance surrender obligation under this part.

(JJ) NOx allowances held or hold NOx allowances—The NOx allowances recorded by the administrator, or submitted

to the administrator for recordation, in accordance with subsections (3)(F) and (G) of this rule, in a NOx allowance

tracking system account.

(KK) NOx allowance tracking system—The system by which the administrator records allocations, deductions, and

transfers of NOx allowances under the NOx budget trading program.

(LL) NOx allowance tracking system account—An account in the NOx allowance tracking system established by the

administrator for purposes of recording the allocation, holding, transferring, or deducting of NOx allowances.

(MM) NOx allowance transfer deadline—Midnight of November 30 or, if November 30 is not a business day,

midnight of the first business day thereafter and is the deadline by which NOx allowances may be submitted for

recordation in a NOx budget unit’s compliance account, or the overdraft account of the source where the unit is located,

in order to meet the unit’s NOx budget emissions limitation for the control period immediately preceding such deadline.

(NN) NOx authorized account representative—For a NOx budget source or NOx budget unit at the source, the natural

person who is authorized by the owners and operators of the source and all NOx budget units at the source, in

accordance with subsection (3)(B) of this rule, to represent and legally bind each owner and operator in matters

pertaining to the NOx budget trading program or, for a general account, the natural person who is authorized, in

accordance with subsection (3)(F) of this rule, to transfer or otherwise dispose of NOx allowances held in the general

account.

(OO) NOx budget emissions limitation—For a NOx budget unit, the tonnage equivalent of the NOx allowances

available for compliance deduction for the unit and for a control period under subparagraph (3)(F)5.A. or B. of this rule

for the control period or to account for excess emissions for a prior control period under subparagraph (3)(F)5.D. of this

rule or to account for withdrawal from the NOx budget program.

(PP) NOx budget permit—The legally binding and federally enforceable written document, or portion of such

document, issued by the director, including any permit revisions, specifying the NOx budget trading program

requirements applicable to a NOx budget source, to each NOx budget unit at the NOx budget source, and to the owners

and operators and the NOx authorized account representative of the NOx budget source and each NOx budget unit.

(QQ) NOx budget source—A source that includes one (1) or more NOx budget units.

(RR) NOx budget trading program—A multi-state nitrogen oxides air pollution control and emission reduction

program established in accordance with this rule and pursuant to 40 CFR 51.121, as a means of mitigating the interstate

transport of ozone and nitrogen oxides, an ozone precursor.

(SS) NOx budget unit—A unit that is subject to the NOx budget trading program emissions limitation under section

(1) or paragraph (3)(H)1. of this rule.

(TT) Operating—With regard to a unit under part (3)(C)3.D.(II) and paragraph (3)(H)1. of this rule, having

documented heat input for more than eight hundred seventy-six (876) hours in the six (6) months immediately

preceding the submission of an application for an initial NOx budget permit under subparagraph (3)(H)4.A. of this rule.

(UU) Operator—Any person who operates, controls, or supervises a NOx budget unit, or a NOx budget source and

shall include, but not be limited to, any holding company, utility system, or plant manager of such a unit or source.

(VV) Overdraft account—The NOx allowance tracking system account, established by the administrator under

subsection (3)(F) of this rule, for each NOx budget source where there are two (2) or more NOx budget units.

(WW) Owner—Any of the following persons:

1. Any holder of any portion of the legal or equitable title in a NOx budget unit;

2. Any holder of a leasehold interest in a NOx budget unit;

3. Any purchaser of power from a NOx budget unit under a life-of-the-unit, firm power contractual arrangement.

However, unless expressly provided for in a leasehold agreement, owner shall not include a passive lessor, or a person

who has an equitable interest through such lessor, whose rental payments are not based, either directly or indirectly,

upon the revenues or income from the NOx budget unit; or

4. With respect to any general account, any person who has an ownership interest with respect to the NOx

allowances held in the general account and who is subject to the binding agreement for the NOx authorized account

representative to represent that person’s ownership interest with respect to NOx allowances.

(XX) Receive or receipt of—When referring to the director or the administrator, to come into possession of a

document, information, or correspondence (whether sent in writing or by authorized electronic transmission), as

indicated in an official correspondence log, or by a notation made on the document, information, or correspondence, by

the director or the administrator in the regular course of business.

(YY) Recordation, record, or recorded—With regard to NOx allowances, the movement of NOx allowances by the

administrator from one (1) NOx allowance tracking system account to another, for purposes of allocation, transfer, or

deduction.

(ZZ) Reference method—Any direct test method of sampling and analyzing for an air pollutant as specified in

Appendix A of 40 CFR 60.

(AAA) Serial number—When referring to NOx allowances, the unique identification number assigned to each NOx

allowance by the administrator, under subparagraph (3)(F)4.C. of this rule.
(BBB) Source—Any governmental, institutional, commercial, or industrial structure, installation, plant, building, or

facility that emits or has the potential to emit any regulated air pollutant under the CAA. For purposes of section 502(c)

of the CAA, a “source,” including a “source” with multiple units, shall be considered a single “facility.”

(CCC) State—One (1) of the forty-eight (48) contiguous states and the District of Columbia specified in 40 CFR

51.121, or any non-federal authority in or including such states or the District of Columbia (including local agencies,

and statewide agencies) or any eligible Indian tribe in an area of such state or the District of Columbia, that adopts a

NOx budget trading program pursuant to 40 CFR 51.121. To the extent a state incorporates by reference the provisions

of this part, the term “state” shall mean the incorporating state. The term “state” shall have its conventional meaning

where such meaning is clear from the context.

(DDD) State trading program NOx budget—The total number of tons apportioned to all NOx budget units in a given

state, in accordance with the NOx budget trading program, for use in a given control period.

(EEE) Submit or serve—To send or transmit a document, information, or correspondence to the person specified in

accordance with the applicable regulation—

1. In person;

2. By United States Postal Service; or

3. By other means of dispatch or transmission and delivery. Compliance with any “submission,” “service,” or

“mailing” deadline shall be determined by the date of dispatch, transmission, or mailing and not the date of receipt.

(FFF) Title V operating permit—A permit issued under Title V of the CAA and 40 CFR 70 or 40 CFR 71.

(GGG) Title V operating permit regulations—The regulations that the administrator has approved or issued as

meeting the requirements of Title V of the CAA and 40 CFR 70 or 40 CFR 71.

(HHH) Ton or tonnage—Any “short ton” (i.e., two thousand (2,000) pounds). For the purpose of determining

compliance with the NOx budget emissions limitation, total tons for a control period shall be calculated as the sum of

all recorded hourly emissions (or the tonnage equivalent of the recorded hourly emissions rates) in accordance with

section (4) of this rule, with any remaining fraction of a ton equal to or greater than 0.50 ton deemed to equal one (1)

ton and any fraction of a ton less than 0.50 ton deemed to equal zero tons.

(III) Unit—a fossil fuel-fired stationary boiler, combustion turbine, or combined cycle system.

(JJJ) Unit load—The total (i.e., gross) output of a unit in any control period (or other specified time period) produced

by combusting a given heat input of fuel, expressed in terms of:

1. The total electrical generation (MW) produced by the unit, including generation for use within the plant; or

2. In the case of a unit that uses heat input for purposes other than electrical generation, the total steam pressure

(psia) produced by the unit, including steam for use by the unit.

(KKK) Unit operating day—A calendar day in which a unit combusts any fuel.

(LLL) Unit operating hour or hour of unit operation—Any hour or fraction of an hour during which a unit combusts

fuel.

(MMM) Utilization—The heat input (expressed in mmBtu/time) for a unit. The unit’s total heat input for the control

period in each year will be determined in accordance with 40 CFR 75 if the NOx budget unit was otherwise subject to

the requirements of 40 CFR 75 for the year, or will be based on the best available data reported to the administrator for

the unit if the unit was not otherwise subject to the requirements of 40 CFR 75 for the year.

(NNN) Definitions of certain terms specified in this rule, other than those defined in this rule section, may be found

in 10 CSR 10-6.020.

(3) General Provisions.

(A) Standard Requirements.

1. Permit requirements.

A. The NOx authorized account representative of each NOx budget source required to have a federally

enforceable permit and each NOx budget unit required to have a federally enforceable permit at the source shall:

(I) Submit to the director a complete NOx budget permit application under paragraph (3)(C)3. of this rule in

accordance with the deadlines specified in subparagraphs (3)(C)2.B. and C. of this rule; and

(II) Submit in a timely manner any supplemental information that the director determines is necessary in

order to review a NOx budget permit application and issue or deny a NOx budget permit.

B. The owners and operators of each NOx budget source required to have a federally enforceable permit and

each NOx budget unit required to have a federally enforceable permit at the source shall have a NOx budget permit

issued by the director and operate the unit in compliance with such NOx budget permit.

C. The owners and operators of a NOx budget source that is not otherwise required to have a federally

enforceable permit are not required to submit a NOx budget permit application, and to have a NOx budget permit, under

subsection (3)(C) of this rule for such NOx budget source.

2. Monitoring requirements.

A. The owners and operators and, to the extent applicable, the NOx authorized account representative of each

NOx budget source and each NOx budget unit at the source shall comply with the monitoring requirements of section

(4) of this rule.

B. The emissions measurements recorded and reported in accordance with section (4) of this rule shall be used

to determine compliance by the unit with the NOx budget emissions limitation under paragraph (3)(A)3. of this rule.

3. Nitrogen oxides requirements.
A. The owners and operators of each NOx budget source and each NOx budget unit at the source shall hold NOx

allowances available for compliance deductions under paragraph (3)(F)5. of this rule, as of the NOx allowance transfer

deadline, in the unit’s compliance account and the source’s overdraft account in an amount not less than the total

emissions for the control period from the unit, as determined in accordance with section (4) of this rule.

B. Each ton of nitrogen oxides emitted in excess of the NOx budget emissions limitation shall constitute a

separate violation of this rule, the CAA, and applicable state law.

C. A NOx budget unit shall be subject to the requirements under subparagraph (3)(A)3.A. of this rule starting on

the later of May 1, 2007 or the date on which the unit commences operation.

D. NOx allowances shall be held in, deducted from, or transferred among NOx allowance tracking system

accounts in accordance with subsections (3)(E), (F), (G), and (H) of this rule.

E. A NOx allowance shall not be deducted, in order to comply with the requirements under subparagraph

(3)(A)3.A. of this rule, for a control period in a year prior to the year for which the NOx allowance was allocated.

F. A NOx allowance allocated by the director or the administrator under the NOx budget trading program is a

limited authorization to emit one (1) ton of nitrogen oxides in accordance with the NOx budget trading program. No

provision of the NOx budget trading program, the NOx budget permit application, the NOx budget permit, or an

exemption under subsection (1)(E) of this rule and no provision of law shall be construed to limit the authority of the

United States or the state to terminate or limit such authorization.

G. A NOx allowance allocated by the director or the administrator under the NOx budget trading program does

not constitute a property right.

H. Upon recordation by the administrator under subsections (3)(F), (G), or (H) of this rule, every allocation,

transfer, or deduction of a NOx allowance to or from a NOx budget unit’s compliance account or the overdraft account

of the source where the unit is located is deemed to amend automatically, and become a part of, any NOx budget permit

of the NOx budget unit by operation of law without any further review.

4. Excess emissions requirements. The owners and operators of a NOx budget unit that has excess emissions in

any control period shall:

A. Surrender the NOx allowances required for deduction under part (3)(F)5.D.(I) of this rule; and

B. Pay any fine, penalty, or assessment or comply with any other remedy imposed under part (3)(F)5.D.(III) of

this rule.

5. Record keeping and reporting requirements.

A. Unless otherwise provided, the owners and operators of the NOx budget source and each NOx budget unit at

the source shall keep on-site at the source each of the following documents for a period of five (5) years from the date

the document is created. This period may be extended for cause, at any time prior to the end of five (5) years, in writing

by the director or the administrator.

(I) The account certificate of representation for the NOx authorized account representative for the source and

each NOx budget unit at the source and all documents that demonstrate the truth of the statements in the account

certificate of representation, in accordance with paragraph (3)(B)4.; provided that the certificate and documents shall be

retained on-site at the source beyond such five (5)-year period until such documents are superseded because of the

submission of a new account certificate of representation changing the NOx authorized account representative.

(II) All emissions monitoring information, in accordance with section (4) of this rule; provided that to the

extent that section (4) of this rule provides for a three (3)-year period for record keeping, the three (3)-year period shall

apply.

(III) Copies of all reports, compliance certifications, and other submissions and all records made or required

under the NOx budget trading program.

(IV) Copies of all documents used to complete a NOx budget permit application and any other submission

under the NOx budget trading program or to demonstrate compliance with the requirements of the NOx budget trading

program.

B. The NOx authorized account representative of a NOx budget source and each NOx budget unit at the source

shall submit the reports and compliance certifications required under the NOx budget trading program, including those

under subsections (3)(D), (3)(H), or section (4) of this rule.

6. Liability.

A. Any person who knowingly violates any requirement or prohibition of the NOx budget trading program, a

NOx budget permit, or an exemption under subsection (1)(E) of this rule shall be subject to enforcement pursuant to

applicable state or federal law.

B. Any person who knowingly makes a false material statement in any record, submission, or report under the

NOx budget trading program shall be subject to criminal enforcement pursuant to the applicable state or federal law.

C. No permit revision shall excuse any violation of the requirements of the NOx budget trading program that

occurs prior to the date that the revision takes effect.

D. Each NOx budget source and each NOx budget unit shall meet the requirements of the NOx budget trading

program.

E. Any provision of the NOx budget trading program that applies to a NOx budget source (including a provision

applicable to the NOx authorized account representative of a NOx budget source) shall also apply to the owners and

operators of such source and of the NOx budget units at the source.
F. Any provision of the NOx budget trading program that applies to a NOx budget unit (including a provision

applicable to the NOx authorized account representative of a NOx budget unit) shall also apply to the owners and

operators of such unit. Except with regard to the requirements applicable to units with a common stack under section

(4) of this rule, the owners and operators and the NOx authorized account representative of one NOx budget unit shall

not be liable for any violation by any other NOx budget unit of which they are not owners or operators or the NOx

authorized account representative and that is located at a source of which they are not owners or operators or the NOx

authorized account representative.

7. Effect on other authorities. No provision of the NOx budget trading program, a NOx budget permit application, a

NOx budget permit, or an exemption under subsection (1)(E) of this rule shall be construed as exempting or excluding

the owners and operators and, to the extent applicable, the NOx authorized account representative of a NOx budget

source or NOx budget unit from compliance with any other provision of the applicable, approved state implementation

plan, a federally enforceable permit, or the CAA.

(B) NOx Authorized Account Representative for NOx Budget Sources.

1. Responsibilities of the NOx authorized account representative.

A. Except as provided under paragraph (3)(B)2. of this rule, each NOx budget source, including all NOx budget

units at the source, shall have one (1) and only one (1) NOx authorized account representative, with regard to all matters

under the NOx budget trading program concerning the source or any NOx budget unit at the source.

B. The NOx authorized account representative of the NOx budget source shall be selected by an agreement

binding on the owners and operators of the source and all NOx budget units at the source.

C. Upon receipt by the administrator of a complete account certificate of representation under paragraph

(3)(B)4. of this rule, the NOx authorized account representative of the source shall represent and, by his or her

representations, actions, inactions, or submissions, legally bind each owner and operator of the NOx budget source

represented and each NOx budget unit at the source in all matters pertaining to the NOx budget trading program, not

withstanding any agreement between the NOx authorized account representative and such owners and operators. The

owners and operators shall be bound by any decision or order issued to the NOx authorized account representative by

the director, the administrator, or a court regarding the source or unit.

D. No NOx budget permit shall be issued, and no NOx allowance tracking system account shall be established

for a NOx budget unit at a source, until the administrator has received a complete account certificate of representation

under paragraph (3)(B)4. of this rule for a NOx authorized account representative of the source and the NOx budget

units at the source.

E. NOx budget trading program submissions.

(I) Each submission under the NOx budget trading program shall be submitted, signed, and certified by the

NOx authorized account representative for each NOx budget source on behalf of which the submission is made. Each

such submission shall include the following certification statement by the NOx authorized account representative: “I am

authorized to make this submission on behalf

of the owners and operators of the NOx budget sources or NOx budget units for which the submission is made. I certify

under penalty of law that I have personally examined, and am familiar with, the statements and information submitted

in this document and all its attachments. Based on my inquiry of those individuals with primary responsibility for

obtaining the information, I certify that the statements and information are to the best of my knowledge and belief true,

accurate, and complete. I am aware that there are significant penalties for submitting false statements and information

or omitting required statements and information, including the possibility of fine or imprisonment.”

(II) The director and the administrator will accept or act on a submission made on behalf of owner or

operators of a NOx budget source or a NOx budget unit only if the submission has been made, signed, and certified in

accordance with part (3)(B)1.E.(I) of this rule.

2. Alternate NOx authorized account representative.

A. An account certificate of representation may designate one (1) and only one (1) alternate NOx authorized

account representative who may act on behalf of the NOx authorized account representative. The agreement by which

the alternate NOx authorized account representative is selected shall include a procedure for authorizing the alternate

NOx authorized account representative to act in lieu of the NOx authorized account representative.

B. Upon receipt by the administrator of a complete account certificate of representation under paragraph

(3)(B)4. of this rule, any representation, action, inaction, or submission by the alternate NOx authorized account

representative shall be deemed to be a representation, action, inaction, or submission by the NOx authorized account

representative.

C. Except in paragraphs (3)(B)2. through 4., (3)(F)2. and subparagraph (3)(B)1.A. of this rule, whenever the

term “NOx authorized account representative” is used in this part, the term shall be construed to include the alternate

NOx authorized account representative.

3. Changing the NOx authorized account representative and the alternate NOx authorized account representative;

changes in the owners and operators.

A. Changing the NOx authorized account representative. The NOx authorized account representative may be

changed at any time upon receipt by the administrator of a superseding complete account certificate of representation

under paragraph (3)(B)4. of this rule. Notwithstanding any such change, all representations, actions, inactions, and

submissions by the previous NOx authorized account representative prior to the time and date when the administrator

receives the superseding account certificate of representation shall be binding on the new NOx authorized account

representative and the owners and operators of the NOx budget source and the NOx budget units at the source.
B. Changing the alternate NOx authorized account representative. The alternate NOx authorized account

representative may be changed at any time upon receipt by the administrator of a superseding complete account

certificate of representation under paragraph (3)(B)4. of this rule. Notwithstanding any such change, all representations,

actions, inactions, and submissions by the previous alternate NOx authorized account representative prior to the time

and date when the administrator receives the superseding account certificate of representation shall be binding on the

new alternate NOx authorized account representative and the owners and operators of the NOx budget source and the

NOx budget units at the source.

C. Changes in the owners and operators.

(I) In the event a new owner or operator of a NOx budget source or a NOx budget unit is not included in the

list of owners and operators submitted in the account certificate of representation, such new owner or operator shall be

deemed to be subject to and bound by the account certificate of representation, the representations, actions, inactions,

and submissions of the NOx authorized account representative and any alternate NOx authorized account representative

of the source or unit, and the decisions, orders, actions, and inactions of the director or the administrator, as if the new

owner or operator were included in such list.

(II) Within thirty (30) days following any change in the owners or operators of a NOx budget source or a NOx

budget unit, including the addition of a new owner or operator, the NOx authorized account representative or alternate

NOx authorized account representative shall submit a revision to the account certificate of representation amending the

list of owners and operators to include the change.

4. Account certificate of representation.

A. A complete account certificate of representation for a NOx authorized account representative or an alternate

NOx authorized account representative shall include the following elements in a format prescribed by the administrator:

(I) Identification of the NOx budget source and each NOx budget unit at the source for which the account

certificate of representation is submitted.

(II) The name, address, e-mail address (if any), telephone number, and facsimile transmission number (if any)

of the NOx authorized account representative and any alternate NOx authorized account representative.

(III) A list of the owners and operators of the NOx budget source and of each NOx budget unit at the source.

(IV) The following certification statement by the NOx authorized account representative and any alternate

NOx authorized account representative: “I certify that I was selected as the NOx authorized account representative or

alternate NOx authorized account representative, as applicable, by an agreement binding on the owners and operators of

the NOx budget source and each NOx budget unit at the source. I certify that I have all the necessary authority to carry

out my duties and responsibilities under the NOx budget trading program on behalf of the owners and operators of the

NOx budget source and of each NOx budget unit at the source and that each such owner and operator shall be fully

bound by my representations, actions, inactions, or submissions and by any decision or order issued to me by the

director, the administrator, or a court regarding the source or unit.”

(V) The signature of the NOx authorized account representative and any alternate NOx authorized account

representative and the dates signed.

B. Unless otherwise required by the director or the administrator, documents of agreement referred to in the

account certificate of representation shall not be submitted to the director or the administrator. Neither the director nor

the administrator shall be under any obligation to review or evaluate the sufficiency of such documents, if submitted.

5. Objections concerning the NOx authorized account representative.

A. Once a complete account certificate of representation under paragraph (3)(B)4. of this rule has been

submitted and received, the director and the administrator will rely on the account certificate of representation unless

and until a superseding complete account certificate of representation under paragraph (3)(B)4. of this rule is received

by the administrator.

B. Except as provided in subparagraph (3)(B)3.A. or B. of this rule, no objection or other communication

submitted to the director or the administrator concerning the authorization, or any representation, action, inaction, or

submission of the NOx authorized account representative shall affect any representation, action, inaction, or submission

of the NOx authorized account representative or the finality of any decision or order by the director or the administrator

under the NOx budget trading program.

C. Neither the director nor the administrator will adjudicate any private legal dispute concerning the

authorization or any representation, action, inaction, or submission of any NOx authorized account representative,

including private legal disputes concerning the proceeds of NOx allowance transfers.

(C) NOx Budget Permits.

1. General NOx budget trading program permit requirements.

A. For each NOx budget source required to have a federally enforceable permit, such permit shall include a NOx

budget permit administered by the director.

(I) For NOx budget sources required to have a Title V operating permit, the NOx budget portion of the Title V

permit shall be administered in accordance with the director’s Title V operating permits regulations promulgated under

40 CFR 70 or 71, except as provided otherwise by subsection (3)(C) or (H) of this rule.

(II) For NOx budget sources required to have a non-Title V permit, the NOx budget portion of the non-Title V

permit shall be administered in accordance with the director’s regulations promulgated to administer non-Title V

permits, except as provided otherwise by subsection (3)(C) or (H) of this rule.
B. Each NOx budget permit (including a draft or proposed NOx budget permit, if applicable) shall contain all

applicable NOx budget trading program requirements and shall be a complete and segregable portion of the permit

under subparagraph (3)(C)1.A. of this rule.

2. Submission of NOx budget permit applications.

A. The NOx authorized account representative of any NOx budget source required to have a federally

enforceable permit shall submit to the director a complete NOx budget permit application under paragraph (3)(C)3. of

this rule by the applicable deadline in subparagraph (3)(C)3.B. of this rule.

B. Application time.

(I) For NOx budget sources required to have a Title V operating permit:

(a) For any source, with one (1) or more NOx budget units under section (1) of this rule that commence

operation before January 1, 2006, the NOx authorized account representative shall submit a complete NOx budget

permit application under paragraph (3)(C)3. of this rule covering such NOx budget units to the director at least eighteen

(18) months (or such lesser time provided under the director’s Title V operating permits regulations for final action on

a permit application) before May 1, 2007.

(b) For any source, with any NOx budget unit under section (1) of this rule that commences operation on or

after January 1, 2006, the NOx authorized account representative shall submit a complete NOx budget permit

application under paragraph (3)(C)3. of this rule covering such NOx budget unit to the director at least eighteen (18)

months (or such lesser time provided under the director’s Title V operating permits regulations for final action on a

permit application) before the later of May 1, 2007 or the date on which the NOx budget unit commences operation.

(II) For NOx budget sources required to have a non-Title V permit:

(a) For any source, with one (1) or more NOx budget units under section (1) of this rule that commence

operation before January 1, 2006, the NOx authorized account representative shall submit a complete NOx budget

permit application under paragraph (3)(C)3. of this rule covering such NOx budget units to the director at least eighteen

(18) months (or such lesser time provided under the director’s non-Title V permits regulations for final action on a

permit application) before May 1, 2007.

(b) For any source, with any NOx budget unit under section (1) of this rule that commences operation on or

after January 1, 2006, the NOx authorized account representative shall submit a complete NOx budget permit

application under paragraph (3)(C)3. of this rule covering such NOx budget unit to the director at least eighteen (18)

months (or such lesser time provided under the director’s non-Title V permits regulations for final action on a permit

application) before the later of May 1, 2007 or the date on which the NOx budget unit commences operation.

C. Duty to reapply.

(I) For a NOx budget source required to have a Title V operating permit, the NOx authorized account

representative shall submit a complete NOx budget permit application under paragraph (3)(C)3. of this rule for the NOx

budget source covering the NOx budget units at the source in accordance with the director’s Title V operating permits

regulations addressing operating permit renewal.

(II) For a NOx budget source required to have a non-Title V permit, the NOx authorized account

representative shall submit a complete NOx budget permit application under paragraph (3)(C)3. of this rule for the NOx

budget source covering the NOx budget units at the source in accordance with the director’s non-Title V permits

regulations addressing permit renewal.

3. Information requirements for NOx budget permit applications. A complete NOx budget permit application shall

include the following elements concerning the NOx budget source for which the application is submitted, in a format

prescribed by the director:

A. Identification of the NOx budget source, including plant name and the Office of Regulatory Information

Systems (ORIS) or facility code assigned to the source by the Energy Information Administration, if applicable;

B. Identification of each NOx budget unit at the NOx budget source and whether it is a NOx budget unit under

section (1) of this rule or under subsection (3)(H) of this rule; and

C. The standard requirements under subsection (3)(A) of this rule.

4. NOx budget permit contents.

A. Each NOx budget permit (including any draft or proposed NOx budget permit, if applicable) will contain, in a

format prescribed by the director, all elements required for a complete NOx budget permit application under paragraph

(3)(C)3. of this rule as approved or adjusted by the director.

B. Each NOx budget permit is deemed to incorporate automatically the definitions of terms under section (2) of

this rule and, upon recordation by the administrator under subsections (3)(F), (G), or (H) of this rule, every allocation,

transfer, or deduction of a NOx allowance to or from the compliance accounts of the NOx budget units covered by the

permit or the overdraft account of the NOx budget source covered by the permit.

5. Effective date of initial NOx budget permit. The initial NOx budget permit covering a NOx budget unit for which

a complete NOx budget permit application is timely submitted under subparagraph (3)(C)2.B.of this rule shall become

effective by the later of:

A. May 1, 2007;

B. May 1 of the year in which the NOx budget unit commences operation, if the unit commences operation on

or before May 1 of that year;

C. The date on which the NOx budget unit commences operation, if the unit commences operation during a

control period; or
D. May 1 of the year following the year in which the NOx budget unit commences operation, if the unit

commences operation on or after October 1 of the year.

6. NOx budget permit revisions.

A. For a NOx budget source with a Title V operating permit, except as provided in subparagraph (3)(C)4.B. of

this rule, the director will revise the NOx budget permit, as necessary, in accordance with the director’s Title V

operating permits regulations addressing permit revisions.

B. For a NOx budget source with a non-Title V permit, except as provided in subparagraph (3)(C)4.B. of this

rule, the director will revise the NOx budget permit, as necessary, in accordance with the director’s non-Title V permits

regulations addressing permit revisions.

(D) Compliance Certification.

1. Compliance certification report.

A. For each control period in which one (1) or more NOx budget units at a source are subject to the NOx budget

emissions limitation, the NOx authorized account representative of the source shall submit to the director and the

administrator by November 30 of that year, a compliance certification report for each source covering all such units.

B. The NOx authorized account representative shall include in the compliance certification report under

subparagraph (3)(D)1.A. of this rule the following elements, in a format prescribed by the administrator, concerning

each unit at the source and subject to the NOx budget emissions limitation for the control period covered by the report:

(I) Identification of each NOx budget unit;

(II) At the NOx authorized account representative’s option, the serial numbers of the NOx allowances that are

to be deducted from each unit’s compliance account under paragraph (3)(F)5. of this rule for the control period;

(III) At the NOx authorized account representative’s option, for units sharing a common stack and having

emissions that are not monitored separately or apportioned in accordance with section (4) of this rule, the percentage of

NOx allowances that is to be deducted from each unit’s compliance account under subparagraph (3)(F)5.E. of this rule;

and

(IV) The compliance certification under subparagraph (3)(D)1.C. of this rule.

C. In the compliance certification report under subparagraph (3)(D)1.A. of this rule, the NOx authorized account

representative shall certify, based on reasonable inquiry of those persons with primary responsibility for operating the

source and the NOx budget units at the source in compliance with the NOx budget trading program, whether each NOx

budget unit for which the compliance certification is submitted was operated during the calendar year covered by the

report in compliance with the requirements of the NOx budget trading program applicable to the unit, including:

(I) Whether the unit was operated in compliance with the NOx budget emissions limitation;

(II) Whether the monitoring plan that governs the unit has been maintained to reflect the actual operation and

monitoring of the unit, and contains all information necessary to attribute emissions to the unit, in accordance with

section (4) of this rule;

(III) Whether all the emissions from the unit, or a group of units (including the unit) using a common stack,

were monitored or accounted for through the missing data procedures and reported in the quarterly monitoring reports,

including whether conditional data were reported in the quarterly reports in accordance with section (4) of this rule. If

conditional data were reported, the owner or operator shall indicate whether the status of all conditional data has been

resolved and all necessary quarterly report resubmissions have been made;

(IV) Whether the facts that form the basis for certification under section (4) of this rule of each monitor at the

unit or a group of units (including the unit) using a common stack, or for using an excepted monitoring method or

alternative monitoring method approved under section (4) of this rule, if any, has changed; and

(V) If a change is required to be reported under part (3)(D)1.C.(IV) of this rule, specify the nature of the

change, the reason for the change, when the change occurred, and how the unit’s compliance status was determined

subsequent to the change, including what method was used to determine emissions when a change mandated the need

for monitor recertification.

2. Director’s and administrator’s action on compliance certifications.

A. The director or the administrator may review and conduct independent audits concerning any compliance

certification or any other submission under the NOx budget trading program and make appropriate adjustments of the

information in the compliance certifications or other submissions.

B. The administrator may deduct NOx allowances from or transfer NOx allowances to a unit’s compliance

account or a source’s overdraft account based on the information in the compliance certifications or other submissions,

as adjusted under subparagraph (3)(D)2.A. of this rule.

(E) NOx Allowance Allocations.

1. The state trading program NOx budget allocated by the director under paragraphs (3)(E)2. and (3)(E)3. of this

rule for a control period will equal the total number of tons of emissions apportioned to the NOx budget units in

Missouri for the control period, as determined by the applicable, approved state implementation plan.

2. The following NOx budget units shall be allocated NOx allowances for each control period in accordance with

Table I of paragraph (3)(E)2.

_Table I

Percentage of NOx Allowances

NOx Budget Unit Unit 1995 Heat Input by Unit

Associated Electric Cooperative— 1 8.49 1126
New Madrid

Associated Electric Cooperative— 2 8.91 1182

New Madrid

Ameren—Howard Bend 1 0.02 3

Ameren—Labadie 1 8.64 1146

Ameren—Labadie 2 9.52 1263

Ameren—Labadie 3 10.92 1449

Ameren—Labadie 4 10.09 1339

Ameren—Meramec 1 0.86 114

Ameren—Meramec 2 0.66 88

Ameren—Meramec 3 1.14 152

Ameren—Meramec 4 2.11 280

Ameren—Meramec 5 0.04 5

Ameren—Rush Island 1 10.59 1405

Ameren—Rush Island 2 10.52 1395

Ameren—Sioux 1 6.10 809

Ameren—Sioux 2 5.47 726

Ameren—Viaduct 1 0.03 4

City of Sikeston 1 5.88 780

Energy efficiency and renewable

generation projects set-aside 134

3. The following existing non-EGU boilers shall be allocated NOx allowances for each control period in accordance

with Table II of paragraph (3)(E)3.

Table II

NOx Limitation per Unit

Non-EGUs Boilers Unit Tons Per Ozone Season

Anheuser Busch 6 14

Trigen Ashley Street Station Boiler 5 9

Trigen Ashley Street Station Boiler 6 36

4. Any unit subject to subsection (1)(B) other than those listed in Tables I and II of this subsection will not be allocated

NOx budget allowances under this rule.

5. Reserved

6. Any person seeking set aside NOx allowances for energy efficiency and renewable generation projects shall

meet the requirements of paragraph (3)(E)6. of this rule.

A. The purpose for establishing these set-asides is to allocate NOx allowances to serve as incentives for saving

or generating electricity through the implementation of energy efficiency and renewable generation projects as defined

in this section.
(I) Each energy efficiency and renewable generation set-aside shall contain the number of NOx allowances as

provided in Table I of this subsection.

(II) Awards of NOx allowances will be available only to eligible energy efficiency or renewable generation

projects that—

(a) Commence operation after September 1, 2005;

(b) Reduce electricity use, generate electricity from renewable resources or provide combined heat and

power benefits during the period of May 1 through September 30, 2006, or subsequent control periods; and

(c) In an application submitted by November 30 of each year, include adequate documentation of these

energy savings, renewable energy generation or combined heat and power benefits.

(III) Projects will be awarded NOx allowances denominated for the control period following the control

period during which the qualifying project activities took place. For example, sponsors of project activities that take

place during the 2006 control period will receive NOx allowances denominated for the 2007 control period.

(IV) Projects may qualify for awards from the set-aside for up to five (5) consecutive control periods.

(V) Department actions on applications for awards from the set-aside. The department shall act upon

applications as follows:

(a) By March 1 preceding the control period for which NOx allowances are requested, the department shall

take the following actions:

I. For each application, the department shall determine whether the project is eligible and the application

is complete and shall notify the applicant of its determination.

II. For the eligible and complete applications, the department shall calculate the total number of NOx

allowances which the projects are qualified to receive, not to exceed the total number of NOx allowances allocated to

the set-aside as provided in Table I of this subsection, and shall award said NOx allowances to eligible energy

efficiency or renewable generation projects.

(b) If the number of NOx allowances awarded is fewer than NOx allowances allocated to the set-aside as

provided in Table I of this subsection, the department shall transfer surplus NOx allowances to the accounts of the

electric utilities listed in Table I of this subsection on a pro rata basis in the same proportion as allocations to NOx

budget units set forth in Table I of this subsection.

(c) If the number of NOx allowances claimed for award is more than NOx allowances allocated to the setaside as provided in Table I of this subsection, the department shall determine awards based on each applicant’s

position in an eligible projects queue that will be established by the department.

B. Project eligibility. Allocations from the energy efficiency and renewable generation set-aside may be

requested by any entity, including an electric utility listed in Table I of this subsection or its affiliate, that implements

and demonstrates eligible projects as defined in this subparagraph.

(I) Eligibility requirements. The department shall establish requirements for project eligibility and shall

determine which projects are eligible to receive awards from the set-aside.

(II) Only the following shall be eligible for awards from the set-aside:

(a) Energy efficiency projects resulting in reduced or more efficient electricity use through the voluntary

modification of maintenance and operating procedures in a building or facility or the voluntary installation,

replacement, or modification of equipment, fixtures, or materials in a building or facility.

I. Energy efficiency projects may be directed toward or located within buildings or facilities owned,

leased, operated or controlled by an electric utility listed in Table I of this subsection or its affiliate. Eligibility

requirements for these projects shall be the same as for any other energy efficiency project.

II. Energy efficiency projects may include demand side programs that result in reduced or more efficient

electricity use;

(b) Renewable generation projects, including electric generation from wind, photovoltaic systems, biogas,

geothermal and hydropower projects. Renewable generation projects do not include nuclear power projects. Eligible

biogas projects include projects to generate electricity from methane gas captured from sanitary landfills, wastewater

treatment plants, sewage treatment plants or agricultural livestock waste treatment systems. Eligible hydropower

projects are restricted to systems—

I. That are certified by the Low Impact Hydropower Institute;

II. That employ a head of ten feet (10') or less; or

III. Employing a head greater than ten feet (10') that make use of a dam that existed prior to the effective

date of this rule;

(c) Renewable biomass generation projects including projects in which one (1) or more biomass fuels is

fired separately or co-fired with one (1) or more fossil fuels to generate electricity. Biomass includes wood and wood

waste, energy crops such as switchgrass and agricultural wastes such as crop and animal waste. Electric generation

from combustion of municipal solid waste is not included; and

(d) Combined heat and power projects that use integrated technologies, including cogeneration, which

convert fuel to electric, thermal, and mechanical energy for on-site or local use. In the case of electricity generation

combined heat and power can include export of power to the local electric utility transmission grid. The thermal energy

from combined heat and power systems can be created and used in the form of steam, hot or chilled water for process,

space heating or cooling, or other applications. To be eligible, the combined heat and power installation must meet or

exceed technology-specific efficiency thresholds that will be established by the department.
(III) Additional eligibility requirements shall include the following:

(a) NOx authorized account representative must be designated for the project on forms provided by the

department;

(b) Only projects that are not required by federal government regulation and that are not and will not be

used to generate compliance or permitting credits otherwise in the SIP are eligible to receive NOx allowances from the

set-aside;

(c) Only projects that equal at least one (1) ton of NOx emissions, using conventional arithmetic rounding,

are eligible to receive NOx allowances from the set-aside. Multiple projects may be aggregated into a single NOx

allowance allocation request to equal one (1) or more tons of NOx emissions;

(d) Only projects that commence

operation after September 1, 2005 are eligible to receive NOx allowances from the setaside;

(e) Location of the project:

I. Renewable generation projects and renewable biomass generation projects, as defined in subpart

(3)(E)6.B.(II)(C) of this rule located anywhere in the state of Missouri are eligible if the generation facility meets all

other eligibility requirements and—

a. The facility is owned, leased, operated or controlled by an electric utility listed in Table I of this

subsection or an affiliate and generates electricity that is primarily intended to be marketed or distributed to end users

who are included in the utility’s native load or who are located in the Missouri SIP region; or

b. The facility supplies power through a power purchase contract to an electric utility listed in Table I

of this subsection or an affiliate and the power purchased is primarily intended to be marketed or distributed to end

users who are included in the utility’s native load or who are located in the Missouri SIP region.

II. Energy efficiency projects and combined heat and power projects, as defined in subpart

(3)(E)6.B.(II)(d) of this rule, must be located in the area described in subsection (1)(A) of this rule to be eligible to

receive NOx allowances from the set-aside.

(IV) Pre-application eligibility review. Project sponsors may request a pre-application eligibility review

preceding project activities that will serve as the basis for an application for awards from the set-aside. The review will

cover eligibility requirements that can be determined prior to receipt of a complete application for awards. The request

for early eligibility review must be submitted on forms provided by the department.

(V) Eligibility for any project may be claimed by only one (1) entity. The department shall determine

procedures to be followed if multiple claims of eligibility for the same project are received.

C. Applications and calculations of awards. To qualify for an award of NOx allowances from the set-aside an

applicant must meet the following requirements:

(I) The project must be eligible as provided in paragraph (3)(E)6. of this rule;

(II) A complete application must be received by the last business day of November following the period of

May 1 through September 30 during which the eligible project activities occurred. The application shall—

(a) Be prepared on forms provided by the department and must be submitted by the project’s NOx

authorized account representative;

(b) Be submitted with certification by a professional engineer attesting that information and calculations

submitted in the application are complete and accurate.

I. The department shall have the right to require verification of data and calculations that are presented in

an application as a condition for awarding NOx allowances to the applicant; and

II. Verification may include site visits by agents of the department;

(c) Demonstrate electricity savings or renewable generation and calculate the NOx allowance award

requested using methods that adhere to measurement and verification standards approved by the department; and

(d) If the applicant intends to reapply in subsequent years, the application must indicate the stream of

benefits that is expected in subsequent years;

(III) The department shall determine methods for calculating awards of NOx allowances based upon the

following principles:

(a) NOx allowances awarded to end-use electrical energy efficiency projects shall be calculated as the

number of megawatt hours (MWh) of electricity saved during a control period multiplied by an emissions factor of 1.5

pounds of NOx per MWh appropriately converted and rounded to tons using conventional arithmetic rounding. The

department shall provide a factor to adjust the calculation of electricity saved to account for transmission and

distribution line losses;

(b) NOx allowances awarded to renewable generation projects from wind, photovoltaic systems, biogas,

geothermal and hydropower projects shall be calculated as the number of kilowatt hours of electricity generated during

a control period multiplied by an emissions factor of 1.5 pounds of NOx per MWh appropriately converted and rounded

to tons using conventional arithmetic rounding;

(c) NOx allowances awarded to renewable biomass generation projects shall be calculated based on net

NOx emission reductions, appropriately converted and rounded to tons using conventional arithmetic rounding where—
I. Net NOx emissions shall be calculated as the number of kilowatt hours of electricity generated during a

control period multiplied by an emissions factor of 1.5 pounds of NOx per MWh, minus the tons of NOx emitted by the

renewable generating project during the control period; and

II. When biomass is co-fired with other fuels, its share of electric generation and NOx emissions shall be

calculated based on its share of the total heat content of all fuels used in the co-firing process; and

(d) The department shall determine methods for calculating NOx allowances for combined heat and power

projects; and

(IV) A project’s NOx authorized account representative may reapply for set-aside awards for up to five (5)

consecutive control periods by meeting the following requirements:

(a) Reapplication must be received by the last business day of November following the last day of the

control period during which the energy efficiency and renewable electric generation activities took place;

(b) The reapplication must be prepared on forms provided by the department and must be submitted by the

project’s NOx authorized account representative; and

(c) The application must be submitted with certification by a professional engineer attesting that

information and calculations submitted in the application are complete and accurate.

(F) NOx Allowance Tracking System.

1. NOx allowance tracking system accounts.

A. Nature and function of compliance accounts and overdraft accounts. Consistent with subparagraph

(3)(F)2.A. of this rule, the administrator will establish one (1) compliance account for each NOx budget unit and one (1)

overdraft account for each source with one (1) or more NOx budget units. Allocations of NOx allowances pursuant to

subsection (3)(E) or paragraph (3)(H)9. of this rule and deductions or transfers of NOx allowances pursuant to

paragraphs (3)(D)2., (3)(F)5., (3)(F)7., subsection (3)(G), or subsection (3)(H) of this rule will be recorded in the

compliance accounts or overdraft accounts in accordance with subsection (3)(F) of this rule.

B. Nature and function of general accounts. Consistent with subparagraph (3)(F)2.B. of this rule, the

administrator will establish, upon request, a general account for any person. Transfers of NOx allowances pursuant to

subsection (3)(G) of this rule will be recorded in the general account in accordance with subsection (3)(F) of this rule.

2. Establishment of accounts.

A. Compliance accounts and overdraft accounts. Upon receipt of a complete account certificate of

representation under paragraph (3)(B)4. of this rule, the administrator will establish—

(I) A compliance account for each NOx budget unit for which the account certificate of representation was

submitted; and

(II) An overdraft account for each source for which the account certificate of representation was submitted

and that has two (2) or more NOx budget units.

B. General accounts.

(I) Any person may apply to open a general account for the purpose of holding and transferring NOx

allowances. A complete application for a general account shall be submitted to the administrator and shall include the

following elements in a format prescribed by the administrator:

(a) Name, mailing address, e-mail address (if any), telephone number, and facsimile transmission number

(if any) of the NOx authorized account representative and any alternate NOx authorized account representative;

(b) At the option of the NOx authorized account representative, organization name and type of

organization;

(c) A list of all persons subject to a binding agreement for the NOx authorized account representative or

any alternate NOx authorized account representative to represent their ownership interest with respect to the NOx

allowances held in the general account;

(d) The following certification statement by the NOx authorized account representative and any alternate

NOx authorized account representative: “I certify that I was selected as the NOx authorized account representative or

the alternate NOx authorized account representative, as applicable, by an agreement that is binding on all persons who

have an ownership interest with respect to NOx allowances held in the general account. I certify that I have all the

necessary authority to carry out my duties and responsibilities under the NOx budget trading program on behalf of such

persons and that each such person shall be fully bound by my representations, actions, inactions, or submissions and by

any order or decision issued to me by the administrator or a court regarding the general account.”;

(e) The signature of the NOx authorized account representative and any alternate NOx authorized account

representative and the dates signed; and

(f) Unless otherwise required by the director or the administrator, documents of agreement referred to in

the account certificate of representation shall not be submitted to the permitting authority or the administrator. Neither

the director nor the administrator shall be under any obligation to review or evaluate the sufficiency of such documents,

if submitted.

(II) Upon receipt by the administrator of a complete application for a general account under part (3)(F)2.B.(I)

of this rule:

(a) The administrator will establish a general account for the person or persons for whom the application is

submitted;
(b) The NOx authorized account representative and any alternate NOx authorized account representative for

the general account shall represent and, by his or her representations, actions, inactions, or submissions, legally bind

each person who has an ownership interest with respect to NOx allowances held in the general account in all matters

pertaining to the NOx budget trading program, notwithstanding any agreement between the NOx authorized account

representative or any alternate NOx authorized account representative and such person. Any such person shall be bound

by any order or decision issued to the NOx authorized account representative or any alternate NOx authorized account

representative by the administrator or a court regarding the general account;

(c) Each submission concerning the general account shall be submitted, signed, and certified by the NOx

authorized account representative or any alternate NOx authorized account representative for the persons having an

ownership interest with respect to NOx allowances held in the general account. Each such submission shall include the

following certification statement by the NOx authorized account representative or any alternate NOx authorized account

representative: “I am authorized to make this submission on behalf of the persons having an ownership interest with

respect to the NOx allowances held in the general account. I certify under penalty of law that I have personally

examined, and am familiar with, the statements and information submitted in this document and all its attachments.

Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify that the

statements and information are to the best of my knowledge and belief true, accurate, and complete. I am aware that

there are significant penalties for submitting false statements and information or omitting required statements and

information, including the possibility of fine or imprisonment.”; and

(d) The administrator will accept or act on a submission concerning the general account only if the

submission has been made, signed, and certified in accordance with subpart (3)(F)2.B.(II)(c) of this rule.

(III) NOx authorized account representative for general accounts.

(a) An application for a general account may designate one (1) and only one (1) NOx authorized account

representative and one (1) and only one (1) alternate NOx authorized account representative who may act on behalf of

the NOx authorized account representative. The agreement by which the alternate NOx authorized account

representative is selected shall include a procedure for authorizing the alternate NOx authorized account representative

to act in lieu of the NOx authorized account representative.

(b) Upon receipt by the administrator of a complete application for a general account under part

(3)(F)2.B.(I) of this rule, any representation, action, inaction, or submission by any alternate NOx authorized account

representative shall be deemed to be a representation, action, inaction, or submission by the NOx authorized account

representative.

(IV) Changes in account representatives for general accounts; changes in owners and operators.

(a) The NOx authorized account representative for a general account may be changed at any time upon

receipt by the administrator of a superseding complete application for a general account under part (3)(F)2.B.(I) of this

rule. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous NOx

authorized account representative prior to the time and date when the administrator receives the superseding application

for a general account shall be binding on the new NOx authorized account representative and the persons with an

ownership interest with respect to the NOx allowances in the general account.

(b) The alternate NOx authorized account representative for a general account may be changed at any time

upon receipt by the administrator of a superseding complete application for a general account under part (3)(F)2.B.(I)

of this rule. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous

alternate NOx authorized account representative prior to the time and date when the administrator receives the

superseding application for a general account shall be binding on the new alternate NOx authorized account

representative and the persons with an ownership interest with respect to the NOx allowances in the general account.

(c) Changes in the owners and operators.

I. In the event a new person having an ownership interest with respect to NOx allowances in the general

account is not included in the list of such persons in the account certificate of representation, such new person shall be

deemed to be subject to and bound by the account certificate of representation, the representation, actions, inactions,

and submissions of the NOx authorized account representative and any alternate NOx authorized account representative

of the source or unit, and the decisions, orders, actions, and inactions of the administrator, as if the new person were

included in such list.

II. Within thirty (30) days following any change in the persons having an ownership interest with respect

to NOx allowances in the general account, including the addition of persons, the NOx authorized account representative

or any alternate NOx authorized account representative shall submit a revision to the application for a general account

amending the list of persons having an ownership interest with respect to the NOx allowances in the general account to

include the change.

(V) Objections concerning the NOx authorized account representative for a general account.

(a) Once a complete application for a general account under part (3)(F)2.B.(I) of this rule has been

submitted and received, the administrator will rely on the application unless and until a superseding complete

application for a general account under part (3)(F)2.B.(I) of this rule is received by the administrator.
(b) Except as provided in part (3)(F)2.B.(IV) of this rule, no objection or other communication submitted

to the administrator concerning the authorization, or any representation, action, inaction, or submission of the NOx

authorized account representative or any alternate NOx authorized account representative for a general account shall

affect any representation, action, inaction, or submission of the NOx authorized account representative or any alternate

NOx authorized account representative or the finality of any decision or order by the administrator under the NOx

budget trading program.

(c) The administrator will not adjudicate any private legal dispute concerning the authorization or any

representation, action, inaction, or submission of the NOx authorized account representative or any alternate NOx

authorized account representative for a general account, including private legal disputes concerning the proceeds of

NOx allowance transfers.

C. Account identification. The administrator will assign a unique identifying number to each account

established under subparagraphs (3)(F)2.A. or B. of this rule.

3. Responsibilities of NOx authorized account representative.

A. Following the establishment of a NOx allowance tracking system account, all submissions to the

administrator pertaining to the account, including, but not limited to, submissions concerning the deduction or transfer

of NOx allowances in the account, shall be made only by the NOx authorized account representative for the account.

B. NOx authorized account representative identification. The administrator will assign a unique identifying

number to each NOx authorized account representative.

4. Recordation of NOx allowance allocations.

A. The administrator will record the NOx allowances for 2007 and 2008 in the NOx budget units’ compliance

accounts and the allocation set-asides, as allocated under subsection (3)(E) of this rule.

B. Each year, after the administrator has made all deductions from a NOx budget unit’s compliance account and

the overdraft account pursuant to paragraph (3)(F)5. of this rule, the administrator will record NOx allowances, as

allocated to the unit under subsection (3)(E) of this rule or under part (3)(H)9.A.(II) of this rule, in the compliance

account for the year after the last year for which NOx allowances were previously allocated to the compliance account.

Each year, the administrator will also record NOx allowances, as allocated under subsection (3)(E) of this rule, in the

allocation set-aside for the year after the last year for which NOx allowances were previously allocated to an allocation

set-aside.

C. Serial numbers for allocated NOx allowances. When allocating NOx allowances to and recording them in an

account, the administrator will assign each NOx allowance a unique identification number that will include digits

identifying the year for which the NOx allowance is allocated.

5. Compliance.

A. NOx allowance transfer deadline. The NOx allowances are available to be deducted for compliance with a

unit’s NOx budget emissions limitation for a control period in a given year only if the NOx allowances—

(I) Were allocated for a control period in a prior year or the same year; and

(II) Are held in the unit’s compliance account, or the overdraft account of the source where the unit is

located, as of the NOx allowance transfer deadline for that control period or are transferred into the compliance account

or overdraft account by a NOx allowance transfer correctly submitted for recordation under paragraph (3)(G)1. of this

rule by the NOx allowance transfer deadline for that control period.

B. Deductions for compliance.

(I) Following the recordation, in accordance with paragraph (3)(G)2. of this rule, of NOx allowance transfers

submitted for recordation in the unit’s compliance account or the overdraft account of the source where the unit is

located by the NOx allowance transfer deadline for a control period, the administrator will deduct NOx allowances

available under subparagraph (3)(F)5.A. of this rule to cover the unit’s emissions (as determined in accordance with

section (4) of this rule) for the control period—

(a) From the compliance account; and

(b) Only if no more NOx allowances available under subparagraph (3)(F)5.A. of this rule remain in the

compliance account, from the overdraft account. In deducting NOx allowances for units at the source from the overdraft

account, the administrator will begin with the unit having the compliance account with the lowest NOx allowance

tracking system account number and end with the unit having the compliance account with the highest NOx allowance

tracking system account number (with account numbers sorted beginning with the left-most character and ending with

the right-most character and the letter characters assigned values in alphabetical order and less than all numeric

characters).

(II) The administrator will deduct NOx allowances first under subpart (3)(F)5.B.(I)(a) of this rule and then

under subpart (3)(F)5.B.(I)(b) of this rule—

(a) Until the number of NOx allowances deducted for the control period equals the number of tons of

emissions, determined in accordance with section (4) of this rule, from the unit for the control period for which

compliance is being determined; or

(b) Until no more NOx allowances available under subparagraph (3)(F)5.A. of this rule remain in the

respective account.

C. Identification of NOx allowances.
(I) Identification of NOx allowances by serial number. The NOx authorized account representative for each

compliance account may identify by serial number the NOx allowances to be deducted from the unit’s compliance

account under subparagraph (3)(F)5.B., D., or E. of this rule. Such identification shall be made in the compliance

certification report submitted in accordance with paragraph (3)(D)1. of this rule.

(II) First-in, first-out. The administrator will deduct NOx allowances for a control period from the compliance

account, in the absence of an identification or in the case of a partial identification of NOx allowances by serial number

under part (3)(F)5.C.(I) of this rule, or the overdraft account on a first-in, first-out (FIFO) accounting basis in the

following order:

(a) Those NOx allowances that were allocated for the control period to the unit under subsection (3)(E) or

(H) of this rule;

(b) Those NOx allowances that were allocated for the control period to any unit and transferred and

recorded in the account pursuant to subsection (3)(G) of this rule, in order of their date of recordation;

(c) Those NOx allowances that were allocated for a prior control period to the unit under subsection (3)(E) or (H) of

this rule; and

(d) Those NOx allowances that were allocated for a prior control period to any unit and transferred and

recorded in the account pursuant to subsection (3)(G) of this rule, in order of their date of recordation.

D. Deductions for excess emissions.

(I) After making the deductions for compliance under subparagraph (3)(F)5.B. of this rule, the administrator

will deduct from the unit’s compliance account or the overdraft account of the source where the unit is located a

number of NOx allowances, allocated for a control period after the control period in which the unit has excess

emissions, equal to three (3) times the number of the unit’s excess emissions.

(II) If the compliance account or overdraft account does not contain sufficient NOx allowances, the

administrator will deduct the required number of NOx allowances, regardless of the control period for which they were

allocated, whenever NOx allowances are recorded in either account.

(III) Any NOx allowance deduction required under subparagraph (3)(F)5.D. of this rule shall not affect the

liability of the owners and operators of the NOx budget unit for any fine, penalty, or assessment, or their obligation to

comply with any other remedy, for the same violation, as ordered under the CAA or applicable state law. The following

guidelines will be followed in assessing fines, penalties or other obligations:

(a) For purposes of determining the number of days of violation, if a NOx budget unit has excess emissions

for a control period, each day in the control period (one hundred fifty-three (153) days) constitutes a day in violation

unless the owners and operators of the unit demonstrate that a lesser number of days should be considered; and

(b) Each ton of excess emissions is a separate violation.

E. Deductions for units sharing a common stack. In the case of units sharing a common stack and having

emissions that are not separately monitored or apportioned in accordance with section (4) of this rule—

(I) The NOx authorized account representative of the units may identify the percentage of NOx allowances to

be deducted from each such unit’s compliance account to cover the unit’s share of emissions from the common stack

for a control period. Such identification shall be made in the compliance certification report submitted in accordance

with paragraph (3)(D)1. of this rule; and

(II) Notwithstanding subpart (3)(F)5.B.(II)(a) of this rule, the administrator will deduct NOx allowances for

each such unit until the number of NOx allowances deducted equals the unit’s identified percentage (under part

(3)(F)5.E.(I) of this rule) of the number of tons of emissions, as determined in accordance with section (4) of this rule,

from the common stack for the control period for which compliance is being determined or, if no percentage is

identified, an equal percentage for each such unit.

F. The administrator will record in the appropriate compliance account or overdraft account all deductions from

such an account pursuant to subparagraph (3)(F)5.B., D., or E. of this rule.

6. Banking.

A. NOx allowances may be banked for future use or transfer in a compliance account, an overdraft account, or a

general account, as follows:

(I) Any NOx allowance that is held in a compliance account, an overdraft account, or a general account will

remain in such account unless and until the NOx allowance is deducted or transferred under paragraphs (3)(D)2.,

(3)(F)5., (3)(F)7., subsection (3)(G), or subsection (3)(H) of this rule.

(II) The administrator will designate, as a “banked” NOx allowance, any NOx allowance that remains in a

compliance account, an overdraft account, or a general account after the administrator has made all deductions for a

given control period from the compliance account or overdraft account pursuant to paragraph (3)(F)5. of this rule and

that was allocated for that control period or a control period in a prior year.

B. Each year starting in 2008, after the administrator has completed the designation of banked NOx allowances

under part (3)(F)6.A.(II) of this rule and before May 1 of the year, the administrator will determine the extent to which

banked NOx allowances may be used for compliance in the control period for the current year, as follows:

(I) The administrator will determine the total number of banked NOx allowances held in compliance

accounts, overdraft accounts, or general accounts.

(II) If the total number of banked NOx allowances determined, under part (3)(F)6.B.(I) of this rule, to be held

in compliance accounts, overdraft accounts, or general accounts is less than or equal to ten percent (10%) of the sum of

the state trading program NOx budgets for the control period for the states in which NOx budget units are located, any

banked NOx allowance may be deducted for compliance in accordance with paragraph (3)(F)5. of this rule.
(III) If the total number of banked NOx allowances determined, under part (3)(F)6.B.(I) of this rule, to be

held in compliance accounts, overdraft accounts, or general accounts exceeds ten percent (10%) of the sum of the state

trading program NOx budgets for the control period for the states in which NOx budget units are located, any banked

NOx allowance may be deducted for compliance in accordance with paragraph (3)(F)5. of this rule, except as follows:

(a) The administrator will determine the following ratio: 0.10 multiplied by the sum of the state trading

program NOx budgets for the control period for the states in which NOx budget units are located and divided by the

total number of banked NOx allowances determined, under part (3)(F)6.B.(I) of this rule, to be held in compliance

accounts, overdraft accounts, or general accounts.

(b) The administrator will multiply the number of banked NOx allowances in each compliance account or

overdraft account. The resulting product is the number of banked NOx allowances in the account that may be deducted

for compliance in accordance with paragraph (3)(F)5. of this rule. Any banked NOx allowances in excess of the

resulting product may be deducted for compliance in accordance with paragraph (3)(F)5. of this rule, except that, if

such NOx allowances are used to make a deduction, two (2) such NOx allowances must be deducted for each deduction

of one (1) NOx allowance required under paragraph (3)(F)5. of this rule.

C. Any NOx budget unit may reduce its NOx emission rate in the 2002 through the 2006 control period, the

owner or operator of the unit may request early reduction credits, and the permitting authority may allocate NOx

allowances in 2007 to the unit in accordance with the following requirements:

(I) Each NOx budget unit for which the owner or operator requests any early reduction credits under part

(3)(F)6.C.(IV) of this rule shall monitor emissions in accordance with section (4) of this rule starting prior to the first

control period for which ERCs are requested and for each control period for which such early reduction credits are

requested. The unit’s monitoring system availability shall be not less than ninety percent (90%) during the applicable

control period, and the unit must be in compliance with any applicable state or federal emissions or emissions-related

requirements;

(II) NOx emission rate and heat input under part (3)(F)6.C.(III) through (V) of this rule shall be determined in

accordance with section (4) of this rule;

(III) Each NOx budget unit for which the owner or operator requests any early reduction credits under part

(3)(F)6.C.(IV) of this rule shall reduce its NOx emission rate, for each control period for which early reduction credits

are requested, to:

(a) Less than 0.25 lb/mmBtu in the years 2002 and 2003;

(b) Less than 0.25 lb/mmBtu in the years 2004 and 2005 for sources located in an area listed in subsection

(1)(A) other than the City of St. Louis and the counties of Franklin, Jefferson, and St. Louis; or

(c) Less than 0.18 lb/mmBtu in the years 2004 through 2006 for sources located in the City of St. Louis

and the counties of Franklin, Jefferson, and St. Louis.

(d) The calculation of early reduction credits in any year from 2002 through 2006 must be below any

applicable limitation, which is more stringent than the requirements of subparts (a) through (c) of this part.

(IV) The NOx authorized account representative of a NOx budget unit that meets the requirements of part

(3)(F)6.C.(I) and (III) of this rule may submit to the director a request for early reduction credits for the unit based on

NOx emission rate reductions made by the unit in the control period for 2002 or 2006 in accordance with part

(3)(F)6.C.(III) of this rule.

(a) In the early reduction credit request, the NOx authorized account representative may request early

reduction credits for such control period in an amount equal to the unit’s heat input for such control period multiplied

by the difference between the applicable NOx emission rate in part (3)(F)6.C.(III) of this rule and the unit’s NOx

emission rate rounded to the nearest ton.

(b) The early reduction credit request must be submitted, in a format specified by the director, by October

31 of the year in which the NOx emission rate reductions on which the request is based are made or such later date

approved by the permitting authority;

(V) The director will allocate NOx allowances, to NOx budget units meeting the requirements of part

(3)(F)6.C.(I) and (III) of this rule and covered by early reduction requests meeting the requirements of subpart

(3)(F)6.C.(IV)(b) of this rule, in accordance with the following procedures:

(a) Upon receipt of each early reduction credit request, the director will accept the request only if the

requirements of parts (3)(F)6.C.(I), (III), and subpart (3)(F)6.C.(IV)(b) of this rule are met and, if the request is

accepted, will make any necessary adjustments to the request to ensure that the amount of the early reduction credits

requested meets the requirement of parts (3)(F)6.C.(II) and (IV) of this rule;

(b) The director will allocate not more than five thousand six hundred thirty (5,630) ERCs over the period

from 2002 through 2006, as follows:

I. The director will allocate not more than one half (1/2) of the total ERCs in the years 2002 and 2003;

II. The director will allocate not more than one half (1/2) of the total ERCs in the years 2004 and 2005;

and

III. The director will allocate any remaining allowances during the year 2006;

(c) If the number of ERC allowances requested for a reduction achieved in a given control period from

2002 through 2006 is less than the number of ERCs to be distributed in accordance with the requirements of part (b) of

this subparagraph, the director will allocate to each budget EGU one (1) allowance for each accepted ERC requested;

and
(d) If the number of ERC allowances requested for a reduction achieved in a given control period from

2002 through 2006 is greater than the number of ERCs to be distributed in accordance with the requirements of part (b)

of this subparagraph, the director will allocate to each budget EGU allowances for accepted requests on a pro rata basis;

(VI) The director will submit to the administrator the allocations of NOx allowances determined under part

(3)(F)6.C.(V) of this rule by the dates listed in subparts (a) and (b) of this part. The administrator will record such

allocations to the extent that they are consistent with the requirements of parts (3)(F)6.C.(I) through (V) of this rule:

(a) For the years 2002 and 2003, the director will submit NOx allowances on or before April 1, 2006;

(b) For the years 2004 through 2006, the director will submit NOx allowances on or before April 1, 2007;

(VII) NOx allowances recorded under part (3)(F)6.C.(VI) of this rule may be deducted for compliance under

paragraph (3)(F)5. of this rule for the control periods in 2007 or 2008. Notwithstanding subparagraph (3)(F)6.A. of this

rule, the administrator will deduct as retired any NOx allowance that is recorded under part (3)(F)6.C.(VI) of this rule

and is not deducted for compliance in accordance with paragraph (3)(F)5. of this rule for the control period in 2007 or

2008; and

(VIII) NOx allowances recorded under part (3)(F)6.C.(VI) of this rule are not treated as banked NOx

allowances in 2007, and are treated as banked allowances in 2008, for the purposes of subparagraphs (3)(A)3., (3)(A)4.

and (3)(A)5. of this rule.

7. Account error. The administrator may, at his or her sole discretion and on his or her own motion, correct any

error in any NOx allowance tracking system account. Within ten (10) business days of making such correction, the

administrator will notify the NOx authorized account representative for the account.

8. Closing of general accounts.

A. The NOx authorized account representative of a general account may instruct the administrator to close the

account by submitting a statement requesting deletion of the account from the NOx allowance tracking system and by

correctly submitting for recordation under paragraph (3)(G)1. of this rule a NOx allowance transfer of all NOx

allowances in the account to one (1) or more other NOx allowance tracking system accounts.

B. If a general account shows no activity for a period of a year or more and does not contain any NOx

allowances, the administrator may notify the NOx authorized account representative for the account that the account

will be closed and deleted from the NOx allowance tracking system following twenty (20) business days after the

notice is sent. The account will be closed after the twenty (20)-day period unless before the end of the twenty (20)-day

period the administrator receives a correctly submitted transfer of NOx allowances into the account under paragraph

(3)(G)1. of this rule or a statement submitted by the NOx authorized account representative demonstrating to the

satisfaction of the administrator good cause as to why the account should not be closed.

(G) NOx Allowance Transfers.

1. Submission of NOx allowance transfers. The NOx authorized account representatives seeking recordation of a

NOx allowance transfer shall submit the transfer to the administrator. To be considered correctly submitted, the NOx

allowance transfer shall include the following elements in a format specified by the administrator:

A. The numbers identifying both the transferor and transferee accounts;

B. A specification by serial number of each NOx allowance to be transferred; and

C. The printed name and signature of the NOx authorized account representative of the transferor account and

the date signed.

2. EPA recordation.

A. Within five (5) business days of receiving a NOx allowance transfer, except as provided in subparagraph

(3)(G)2.B. of this rule, the administrator will record a NOx allowance transfer by moving each NOx allowance from the

transferor account to the transferee account as specified by the request, provided that—

(I) The transfer is correctly submitted under paragraph (3)(G)1. of this rule;

(II) The transferor account includes each NOx allowance identified by serial number in the transfer; and

(III) The transfer meets all other requirements of this rule.

B. A NOx allowance transfer that is submitted for recordation following the NOx allowance transfer deadline

and that includes any NOx allowances allocated for a control period prior to or the same as the control period to which

the NOx allowance transfer deadline applies will not be recorded until after completion of the process of recordation of

NOx allowance allocations in subparagraph (3)(F)4.B. of this rule.

C. Where a NOx allowance transfer submitted for recordation fails to meet the requirements of subparagraph

(3)(G)2.A. of this rule, the administrator will not record such transfer.

3. Notification.

A. Notification of recordation. Within five (5) business days of recordation of a NOx allowance transfer under

paragraph (3)(G)2. of this rule, the administrator will notify each party to the transfer. Notice will be given to the NOx

authorized account representatives of both the transferor and transferee accounts.

B. Notification of non-recordation. Within ten (10) business days of receipt of a NOx allowance transfer that

fails to meet the requirements of subparagraph (3)(G)2.A. of this rule, the administrator will notify the NOx authorized

account representatives of both accounts subject to the transfer of—

(I) A decision not to record the transfer; and

(II) The reasons for such non-recordation.

C. Nothing in this section shall preclude the submission of a NOx allowance transfer for recordation following

notification of non-recordation.

(H) Reserved
(4) Reporting and Record Keeping.

(A) General Requirements. The owners and operators, and to the extent applicable, the NOx authorized account

representative of a NOx budget unit, shall comply with the monitoring and reporting requirements as provided in this

rule and in subpart H of 40 CFR part 75. For purposes of complying with such requirements, the definitions in section

(2) of this rule and in 40 CFR 72.2 shall apply, and the terms “affected unit,” “designated representative,” and

“continuous emission monitoring system” (or “CEMS”) in 40 CFR 75 shall be replaced by the terms “NOx budget

unit,” “NOx authorized account representative,” and “continuous emission monitoring system” (or “CEMS”),

respectively, as defined in section (2) of this rule.

1. Requirements for installation, certification, and data accounting. The owner or operator of each NOx budget

unit must meet the following requirements:

A. Install all monitoring systems required under section (4) for monitoring mass. This includes all systems

required to monitor NOx emission rate, concentration, heat input, and flow, in accordance with 40 CFR 75.72 and

75.76;

B. Install all monitoring systems for monitoring heat input, if required under subsection (4)(G) of this rule for

developing NOx allowance allocations;

C. Successfully complete all certification tests required under subsection (4)(B) of this rule and meet all other

provisions of this rule and 40 CFR 75 applicable to the monitoring systems under subparagraphs (4)(A)1.A. and B. of

this rule; and

D. Record, and report data from the monitoring systems under subparagraphs (4)(A)1.A. and B. of this rule.

2. Compliance dates. The owner or operator must meet the requirements of subparagraphs (4)(A)1.A. through C.

of this rule on or before the following dates and must record and report data on and after the following dates:

A. NOx budget units for which the owner or operator intends to apply for early reduction credits under

subparagraph (3)(F)6.C. of this rule must comply with the requirements of section (4) of this rule by May 1, 2006;

B. Except for NOx budget units under subparagraphs (4)(A)2.A. of this rule, NOx budget units under section (1)

of this rule that commence operation before January 1, 2006, must comply with the requirements of section (4) of this

rule by May 1, 2006;

C. NOx budget units under section (1) of this rule that commence operation on or after January 1, 2006 and that

report on an annual basis under paragraph (4)(E)4. of this rule must comply with the requirements of section (4) of this

rule by the later of the following dates:

(I) May 1, 2006; or

(II) The earlier of:

(a) One hundred eighty (180) days after the date on which the unit commences operation; or

(b) For units under paragraph (1)(B)1. of this rule, ninety (90) days after the date on which the unit

commences commercial operation;

D. NOx budget units under section (1) of this rule that commence operation on or after January 1, 2006 and that

report on a control season basis under paragraph (4)(E)4. of this rule must comply with the requirements of section (4)

of this rule by the later of the following dates:

(I) The earlier of:

(a) One hundred eighty (180) days after the date on which the unit commences operation; or

(b) For units under paragraph (1)(B)1. of this rule, ninety (90) days after the date on which the unit

commences commercial operation;

(II) However, if the applicable deadline under part (4)(A)2.D.(I) of this rule does not occur during a control

period, May 1, immediately following the date determined in accordance with part (4)(A)2.D.(I) of this rule;

E. For a NOx budget unit with a new stack or flue for which construction is completed after the applicable

deadline under subparagraphs (4)(A)2.A., B., or C. or subsection (3)(H) of this rule:

(I) Ninety (90) days after the date on which emissions first exit to the atmosphere through the new stack or

flue;

(II) However, if the unit reports on a control season basis under paragraph (4)(E)4. of this rule and the

applicable deadline under part (4)(A)2.E.(I) of this rule does not occur during the control period, May 1 immediately

following the applicable deadline in part (4)(A)2.E.(I) of this rule.

3. Reporting data prior to initial certification.

A. The owner or operator of a NOx budget unit that misses the certification deadline under subparagraph

(4)(A)2.A. of this rule is not eligible to apply for early reduction credits. The owner or operator of the unit becomes

subject to the certification deadline under subparagraph (4)(A)2.B. of this rule.

B. The owner or operator of a NOx budget unit under subparagraph (4)(A)2.C. or D. of this rule must determine,

record and report mass, heat input (if required for purposes of allocations) and any other values required to determine

mass (e.g. NOx emission rate and heat input or concentration and stack flow) using the provisions of 40 CFR 75.70(g),

from the date and hour that the unit starts operating until all required certification tests are successfully completed.

4. Prohibitions.

A. No owner or operator of a NOx budget unit or a non-NOx budget unit monitored under 40 CFR

75.72(b)(2)(ii) shall use any alternative monitoring system, alternative reference method, or any other alternative for

the required continuous emission monitoring system without having obtained prior written approval in accordance with

subsection (4)(F) of this rule.
B. No owner or operator of a NOx budget unit or a non-NOx budget unit monitored under 40 CFR

75.72(b)(2)(ii) shall operate the unit so as to discharge, or allow to be discharged, emissions to the atmosphere without

accounting for all such emissions in accordance with the applicable provisions of section (4) of this rule and 40 CFR 75

except as provided for in 40 CFR 75.74.

C. No owner or operator of a NOx budget unit or a non-NOx budget unit monitored under 40 CFR

75.72(b)(2)(ii) shall disrupt the continuous emission monitoring system, any portion thereof, or any other approved

emission monitoring method, and thereby avoid monitoring and recording mass emissions discharged into the

atmosphere, except for periods of recertification or periods when calibration, quality assurance testing, or maintenance

is performed in accordance with the applicable provisions of section (4) of this rule and 40 CFR 75 except as provided

for in 40 CFR 75.74.

D. No owner or operator of a NOx budget unit or a non-NOx budget unit monitored under 40 CFR

75.72(b)(2)(ii) shall retire or permanently discontinue use of the continuous emission monitoring system, any

component thereof, or any other approved emission monitoring system under section (4) of this rule, except under any

one (1) of the following circumstances:

(I) During the period that the unit is covered by a retired unit exemption under subsection (1)(E) of this rule

that is in effect;

(II) The owner or operator is monitoring emissions from the unit with another certified monitoring system

approved, in accordance with the applicable provisions of section (4) and 40 CFR 75, by the director for use at that unit

that provides emission data for the same pollutant or parameter as the retired or discontinued monitoring system; or

(III) The NOx authorized account representative submits notification of the date of certification testing of a

replacement monitoring system in accordance with subparagraph (4)(B)2.B. of this rule.

(B) Initial Certification and Recertification Procedures.

1. The owner or operator of a NOx budget unit that is subject to an acid rain emissions limitation shall comply

with the initial certification and recertification procedures of 40 CFR 75, except that:

A. If, prior to January 1, 2005, the administrator approved a petition under 40 CFR 75.17(a) or (b) for

apportioning the NOx emission rate measured in a common stack or a petition under 40 CFR 75.66 for an alternative to

a requirement in 40 CFR 75.17, the NOx authorized account representative shall resubmit the petition to the

administrator under paragraph (4)(F)1. of this rule to determine if the approval applies under the NOx budget trading

program.

B. For any additional CEMS required under the common stack provisions in 40 CFR 75.72, or for any

concentration CEMS used under the provisions of 40 CFR 75.71(a)(2), the owner or operator shall meet the

requirements of paragraph (4)(B)2. of this rule.

2. The owner or operator of a NOx budget unit that is not subject to an acid rain emissions limitation shall comply

with the following initial certification and recertification procedures, except that the owner or operator of a unit that

qualifies to use the low mass emissions excepted monitoring methodology under 40 CFR 75.19 shall also meet the

requirements of paragraph (4)(B)3. of this rule and the owner or operator of a unit that qualifies to use an alternative

monitoring system under subpart E of 40 CFR 75 shall also meet the requirements of paragraph (4)(B)4. of this rule.

The owner or operator of a NOx budget unit that is subject to an acid rain emissions limitation, but requires additional

CEMS under the common stack provisions in 40 CFR 75.72, or that uses a concentration CEMS under 40 CFR

75.71(a)(2) also shall comply with the following initial certification and recertification procedures.

A. Requirements for initial certification. The owner or operator shall ensure that each monitoring system

required by subpart H of 40 CFR 75 (which includes the automated data acquisition and handling system) successfully

completes all of the initial certification testing required under 40 CFR 75.20. The owner or operator shall ensure that all

applicable certification tests are successfully completed by the deadlines specified in paragraph (4)(A)2. of this rule. In

addition, whenever the owner or operator installs a monitoring system in order to meet the requirements of this rule in a

location where no such monitoring system was previously installed, initial certification according to 40 CFR 75.20 is

required.

B. Requirements for recertification. Whenever the owner or operator makes a replacement, modification, or

change in a certified monitoring system that the administrator or the director determines significantly affects the ability

of the system to accurately measure or record mass emissions or heat input or to meet the requirements of 40 CFR

75.21 or Appendix B to 40 CFR 75, the owner or operator shall recertify the monitoring system according to 40 CFR

75.20(b). Furthermore, whenever the owner or operator makes a replacement, modification, or change to the flue gas

handling system or the unit’s operation that the administrator or the director determines to significantly change the flow

or concentration profile, the owner or operator shall recertify the continuous emissions monitoring system according to

40 CFR 75.20(b). Examples of changes which require recertification include: replacement of the analyzer, change in

location or orientation of the sampling probe or site, or changing of flow rate monitor polynomial coefficients.

C. Certification approval process for initial certifications and recertification.

(I) Notification of certification. The NOx authorized account representative shall submit to the appropriate

EPA regional office and the permitting authority a written notice of the dates of certification in accordance with

subsection (4)(D) of this rule.

(II) Certification application. The NOx authorized account representative shall submit to the director a

certification application for each monitoring system required under subpart H of 40 CFR 75. A complete certification

application shall include the information specified in subpart H of 40 CFR 75.
(III) Except for units using the low mass emission excepted methodology under 40 CFR 75.19, the

provisional certification date for a monitor shall be determined using the procedures set forth in 40 CFR 75.20(a)(3). A

provisionally certified monitor may be used under the NOx budget trading program for a period not to exceed one

hundred twenty (120) days after receipt by the director of the complete certification application for the monitoring

system or component thereof under part (4)(B)2.C.(II) of this rule. Data measured and recorded by the provisionally

certified monitoring system or component thereof, in accordance with the requirements of 40 CFR 75, will be

considered valid quality-assured data (retroactive to the date and time of provisional certification), provided that the

director does not invalidate the provisional certification by issuing a notice of disapproval within one hundred twenty

(120) days of receipt of the complete certification application by the director.

(IV) Certification application formal approval process. The director will issue a written notice of approval

or disapproval of the certification application to the owner or operator within one hundred twenty (120) days of receipt

of the complete certification application under part (4)(B)2.C.(II) of this rule. In the event the permitting authority does

not issue such a notice within such one hundred twenty (120)-day period, each monitoring system which meets the

applicable performance requirements of 40 CFR 75 and is included in the certification application will be deemed

certified for use under the NOx budget trading program.

(a) Approval notice. If the certification application is complete and shows that each monitoring system meets the

applicable performance requirements of 40 CFR 75, then the director will issue a written notice of approval of the

certification application within one hundred twenty (120) days of receipt.

(b) Incomplete application notice. A certification application will be considered complete when all of the

applicable information required to be submitted under part (4)(B)2.C.(II) of this rule has been received by the director.

If the certification application is not complete, then the director will issue a written notice of incompleteness that sets a

reasonable date by which the NOx authorized account representative must submit the additional information required to

complete the certification application. If the NOx authorized account representative does not comply with the notice of

incompleteness by the specified date, then the director may issue a notice of disapproval under subpart

(4)(B)2.C.(IV)(c) of this rule.

(c) Disapproval notice. If the certification application shows that any monitoring system or component

thereof does not meet the performance requirements of this rule, or if the certification application is incomplete and the

requirement for disapproval under subpart (4)(B)2.C.(IV)(b) of this rule has been met, the director will issue a written

notice of disapproval of the certification application. Upon issuance of such notice of disapproval, the provisional

certification is invalidated by the director and the data measured and recorded by each uncertified monitoring system or

component thereof shall not be considered valid quality-assured data beginning with the date and hour of provisional

certification. The owner or operator shall follow the procedures for loss of certification in part (4)(B)2.C.(V) of this

rule for each monitoring system or component thereof which is disapproved for initial certification.

(d) Audit decertification. The director may issue a notice of disapproval of the certification status of a

monitor in accordance with paragraph (4)(C)2. of this rule.

(V) Procedures for loss of certification. If the permitting authority issues a notice of disapproval of a

certification application under subpart (4)(B)2.C.(IV)(c) of this rule or a notice of disapproval of certification status

under subpart (4)(B)2.C.(IV)(d) of this rule, then—

(a) The owner or operator shall substitute the following values, for each hour of unit operation during the

period of invalid data beginning with the date and hour of provisional certification and continuing until the time, date,

and hour specified under 40 CFR 75.20(a)(5)(i):

I. For units using or intending to monitor for NOx emission rate and heat input or for units using the low

mass emission excepted methodology under 40 CFR 75.19, the maximum potential NOx emission rate and the

maximum potential hourly heat input of the unit; and

II. For units intending to monitor for mass emissions using a pollutant concentration monitor and a flow

monitor, the maximum potential concentration of and the maximum potential flow rate of the unit under section 2.1 of

Appendix A of 40 CFR 75;

(b) The NOx authorized account representative shall submit a notification of certification retest dates and a

new certification application in accordance with parts (4)(B)2.C.(I) and (II) of this rule; and

(c) The owner or operator shall repeat all certification tests or other requirements that were failed by the

monitoring system, as indicated in the director’s notice of disapproval, no later than thirty (30) unit operating days after

the date of issuance of the notice of disapproval.

3. Initial certification and recertification procedures for low mass emission units using the excepted methodologies

under 40 CFR 75.19. The owner or operator of a gas-fired or oil-fired unit using the low mass emissions excepted

methodology under 40 CFR 75.19 shall meet the applicable general operating requirements of 40 CFR 75.10, the

applicable requirements of 40 CFR 75.19, and the applicable certification requirements of subsection (4)(B) of this

rule, except that the excepted methodology shall be deemed provisionally certified for use under the NOx budget

trading program, as of the following dates:

A. For units that are reporting on an annual basis under paragraph (4)(E)4. of this rule—

(I) For a unit that commenced operation before its compliance deadline under paragraph (4)(B)2. of this rule,

from January 1 of the year following submission of the certification application for approval to use the low mass

emissions excepted methodology under 40 CFR 75.19 until the completion of the period for the director review; or
(II) For a unit that commenced operation after its compliance deadline under paragraph (4)(B)2. of this rule,

the date of submission of the certification application for approval to use the low mass emissions excepted

methodology under 40 CFR 75.19 until the completion of the period for director review; or

B. For units that are reporting on a control period basis under part (4)(E)2.C.(II) of this rule:

(I) For a unit that commenced operation before its compliance deadline under paragraph (4)(B)2. of this rule,

where the certification application is submitted before May 1, from May 1 of the year of the submission of the

certification application for approval to use the low mass emissions excepted methodology under 40 CFR 75.19 until

the completion of the period for the director review;

(II) For a unit that commenced operation before its compliance deadline under paragraph (4)(B)2. of this rule,

where the certification application is submitted after May 1, from May 1 of the year following submission of the

certification application for approval to use the low mass emissions excepted methodology under 40 CFR 75.19 until

the completion of the period for the director review; or

(III) For a unit that commences operation after its compliance deadline under paragraph (4)(B)2. of this rule,

where the unit commences operation before May 1, from May 1 of the year that the unit commenced operation, until

the completion of the period for the director’s review; or

(IV) For a unit that has not operated after its compliance deadline under paragraph (4)(B)2. of this rule,

where the certification application is submitted after May 1, but before October 1, from the date of submission of a

certification application for approval to use the low mass emissions excepted methodology under 40 CFR 75.19 until

the completion of the period for the director’s review.

4. Certification/recertification procedures for alternative monitoring systems. The NOx authorized account

representative representing the owner or operator of each unit applying to monitor using an alternative monitoring

system approved by the administrator and, if applicable, the director under subpart E of 40 CFR 75 shall apply for

certification to the permitting authority prior to use of the system under the trading program. The NOx authorized

account representative shall apply for recertification following a replacement, modification or change according to the

procedures in paragraph (4)(B)2. of this rule. The owner or operator of an alternative monitoring system shall comply

with the notification and application requirements for certification according to the procedures specified in

subparagraph (4)(B)2.C. of this rule and 40 CFR 75.20(f).

(C) Out of Control Periods.

1. Whenever any monitoring system fails to meet the quality assurance requirements of Appendix B of 40 CFR

75, data shall be substituted using the applicable procedures in subpart D, Appendix D, or Appendix E of 40 CFR 75.

2. Audit decertification. Whenever both an audit of a monitoring system and a review of the initial certification or

recertification application reveal that any system or component should not have been certified or recertified because it did not meet a particular performance specification or other

requirement under subsection (4)(B) of this rule or the applicable provisions of 40 CFR 75, both at the time of the

initial certification or recertification application submission and at the time of the audit, the director will issue a notice

of disapproval of the certification status of such system or component. For the purposes of this paragraph, an audit shall

be either a field audit or an audit of any information submitted to the permitting authority or the administrator. By

issuing the notice of disapproval, the director revokes prospectively the certification status of the system or component.

The data measured and recorded by the system or component shall not be considered valid quality-assured data from

the date of issuance of the notification of the revoked certification status until the date and time that the owner or

operator completes subsequently approved initial certification or recertification tests. The owner or operator shall

follow the initial certification or recertification procedures in subsection (4)(B) of this rule for each disapproved

system.

(D) Notifications. The NOx authorized account representative for a NOx budget unit shall submit written notice to the

permitting authority and the administrator in accordance with 40 CFR 75.61, except that if the unit is not subject to an

acid rain emissions limitation, the notification is only required to be sent to the director.

(E) Record Keeping and Reporting.

1. General provisions.

A. The NOx authorized account representative shall comply with all record keeping and reporting requirements

in this section and with the requirements of subparagraph (3)(B)1.E. of this rule.

B. If the NOx authorized account representative for a NOx budget unit subject to an acid rain emission limitation

who signed and certified any submission that is made under subpart F or G of 40 CFR 75 and which includes data and

information required under section (4) of this rule or subpart H of 40 CFR 75 is not the same person as the designated

representative or the alternative designated representative for the unit under 40 CFR 72, the submission must also be

signed by the designated representative or the alternative designated representative.

2. Monitoring plans.

A. The owner or operator of a unit subject to an acid rain emissions limitation shall comply with requirements

of 40 CFR 75.62, except that the monitoring plan shall also include all of the information required by subpart H of 40

CFR 75.

B. The owner or operator of a unit that is not subject to an acid rain emissions limitation shall comply with

requirements of 40 CFR 75.62, except that the monitoring plan is only required to include the information required by

subpart H of 40 CFR 75.
3. Certification applications. The NOx authorized account representative shall submit an application to the

permitting authority within forty-five (45) days after completing all initial certification or recertification tests required

under subsection (4)(B) of this rule including the information required under subpart H of 40 CFR 75.

4. Quarterly reports. The NOx authorized account representative shall submit quarterly reports, as follows:

A. If a unit is subject to an acid rain emission limitation or if the owner or operator of the NOx budget unit

chooses to meet the annual reporting requirements of section (4) of this rule, the NOx authorized account representative

shall submit a quarterly report for each calendar quarter beginning with:

(I) For units that elect to comply with the early reduction credit provisions under paragraph (3)(F)6. of this

rule, the calendar quarter that includes the date of initial provisional certification under part (4)(B)2.C.(III) of this rule.

Data shall be reported from the date and hour corresponding to the date and hour of provisional certification;

(II) For units commencing operation prior to May 1, 2006 that are not required to certify monitors by May 1,

2005 under subparagraph (4)(A)2.A. of this rule, the earlier of the calendar quarter that includes the date of initial

provisional certification under part (4)(B)2.C.(III) of this rule or, if the certification tests are not completed by May 1,

2006, the partial calendar quarter from May 1, 2006 through June 30, 2006. Data shall be recorded and reported from

the earlier of the date and hour corresponding to the date and hour of provisional certification or the first hour on May

1, 2006; or

(III) For a unit that commences operation after May 1, 2006, the calendar quarter in which the unit

commences operation. Data shall be reported from the date and hour corresponding to when the unit commenced

operation.

B. If a NOx budget unit is not subject to an acid rain emission limitation, then the NOx authorized account

representative shall either:

(I) Meet all of the requirements of 40 CFR 75 related to monitoring and reporting mass emissions during the

entire year and meet the reporting deadlines specified in subparagraph (4)(E)4.A. of this rule; or

(II) Submit quarterly reports only for the periods from the earlier of May 1 or the date and hour that the

owner or operator successfully completes all of the recertification tests required under 40 CFR 75.74(d)(3) through

September 30 of each year in accordance with the provisions of 40 CFR 75.74(b). The NOx authorized account

representative shall submit a quarterly report for each calendar quarter, beginning with:

(a) For units that elect to comply with the early reduction credit provisions under paragraph (3)(F)6. of this

rule, the calendar quarter that includes the date of initial provisional certification under part (4)(B)2.C.(III) of this rule.

Data shall be reported from the date and hour corresponding to the date and hour of provisional certification;

(b) For units commencing operation prior to May 1, 2006 that are not required to certify monitors by May

1, 2005 under subparagraph (4)(A)2.A. of this rule, the earlier of the calendar quarter that includes the date of initial

provisional certification under part (4)(B)2.C.(III) of this rule, or if the certification tests are not completed by May 1,

2006, the partial calendar quarter from May 1, 2006 through June 30, 2006. Data shall be reported from the earlier of

the date and hour corresponding to the date and hour of provisional certification or the first hour of May 1, 2006;

(c) For units that commence operation after May 1, 2006 during the control period, the calendar quarter in

which the unit commences operation. Data shall be reported from the date and hour corresponding to when the unit

commenced operation;

(d) For units that commence operation after May 1, 2006 and before May 1 of the year in which the unit

commences operation, the earlier of the calendar quarter that includes the date of initial provisional certification under

part (4)(B)2.C.(III) of this rule or, if the certification tests are not completed by May 1 of the year in which the unit

commences operation, May 1 of the year in which the unit commences operation. Data shall be reported from the

earlier of the date and hour corresponding to the date and hour of provisional certification or the first hour of May 1 of

the year after the unit commences operation; or

(e) For units that commence operation after May 1, 2006 and after September 30 of the year in which the

unit commences operation, the earlier of the calendar quarter that includes the date of initial provisional certification

under part (4)(B)2.C.(III) of this rule or, if the certification tests are not completed by May 1 of the year after the unit

commences operation, May 1 of the year after the unit commences operation. Data shall be reported from the earlier of

the date and hour corresponding to the date and hour of provisional certification or the first hour of May 1 of the year

after the unit commences operation.

C. The NOx authorized account representative shall submit each quarterly report to the administrator within

thirty (30) days following the end of the calendar quarter covered by the report. Quarterly reports shall be submitted in

the manner specified in subpart H of 40 CFR 75 and 40 CFR 75.64.

(I) For units subject to an acid rain emissions limitation, quarterly reports shall include all of the data and

information required in subpart H of 40 CFR 75 for each NOx budget unit (or group of units using a common stack) as

well as information required in subpart G of 40 CFR 75.

(II) For units not subject to an acid rain emissions limitation, quarterly reports are only required to include all

of the data and information required in subpart H of 40 CFR 75 for each NOx budget unit (or group of units using a

common stack).
D. Compliance certification. The NOx authorized account representative shall submit to the administrator a

compliance certification in support of each quarterly report based on reasonable inquiry of those persons with primary

responsibility for ensuring that all of the unit’s emissions are correctly and fully monitored. The certification shall state

that:

(I) The monitoring data submitted were recorded in accordance with the applicable requirements of this rule

and 40 CFR 75, including the quality assurance procedures and specifications;

(II) For a unit with add-on emission controls and for all hours where data are substituted in accordance with

40 CFR 75.34(a)(1), the add-on emission controls were operating within the range of parameters listed in the

monitoring plan and the substitute values do not systematically underestimate emissions; and

(III) For a unit that is reporting on a control period basis under paragraph (4)(E)4. of this rule, the NOx

emission rate and concentration values substituted for missing data under subpart D of 40 CFR 75 are calculated using

only values from a control period and do not systematically underestimate emissions.

(F) Petitions.

1. The NOx authorized account representative of a NOx budget unit that is subject to an acid rain emissions

limitation may submit a petition under 40 CFR 75.66 to the administrator requesting approval to apply an alternative to

any requirement of section (4) of this rule.

A. Application of an alternative to any requirement of section (4) of this rule is in accordance with section (4) of

this rule only to the extent that the petition is approved by the administrator, in consultation with the permitting

authority.

B. Notwithstanding subparagraph (4)(F)1.A. of this rule, if the petition requests approval to apply an alternative

to a requirement concerning any additional CEMS required under the common stack provisions of 40 CFR 75.72, the

petition is governed by paragraph (4)(F)2. of this rule.

2. The NOx authorized account representative of a NOx budget unit that is not subject to an acid rain emissions

limitation may submit a petition under 40 CFR 75.66 to the director and the administrator requesting approval to apply

an alternative to any requirement of section (4) of this rule.

A. The NOx authorized account representative of a NOx budget unit that is subject to an acid rain emissions

limitation may submit a petition under 40 CFR 75.66 to the director and the administrator requesting approval to apply

an alternative to a requirement concerning any additional CEMS required under the common stack provisions of 40

CFR 75.72 or a concentration CEMS used under 40 CFR 75.71(a)(2).

B. Application of an alternative to any requirement of section (4) of this rule is in accordance with section (4) of

this rule only to the extent the petition under paragraph (4)(F)2. of this rule is approved by both the permitting authority

and the administrator.

(G) Additional Requirements to Provide Heat Input Data for Allocations Purposes.

1. The owner or operator of a unit that elects to monitor and report mass emissions using a concentration system

and a flow system shall also monitor and report heat input at the unit level using the procedures set forth in 40 CFR 75

for any source located in a state developing source allocations based upon heat input.

2. The owner or operator of a unit that monitors and reports mass emissions using a concentration system and a

flow system shall also monitor and report heat input at the unit level using the procedures set forth in 40 CFR 75 for

any source that is applying for early reduction credits under paragraph (3)(F)6. of this rule.

(H) Record Keeping and Reporting Maintenance.

1. Unless otherwise provided, the owners and operators of the NOx budget source and each NOx budget unit at the

source shall keep on-site at the source each of the following documents for a period of five (5) years from the date the

document is created. This period may be extended for cause, at any time prior to the end of five (5) years, in writing by

the director or the administrator.

A. The account certificate of representation for the NOx authorized account representative for the source and

each NOx budget unit at the source and all documents that demonstrate the truth of the statements in the account

certificate of representation, in accordance with paragraph (3)(B)4.; provided that the certificate and documents shall be

retained on-site at the source beyond such five (5)-year period until such documents are superseded because of the

submission of a new account certificate of representation changing the NOx authorized account representative.

B. All emissions monitoring information, in accordance with section (4) of this rule; provided that to the extent

that section (4) of this rule provides for a three (3)-year period for record keeping, the three (3)-year period shall apply.

C. Copies of all reports, compliance certifications, and other submissions and all records made or required

under the NOx budget trading program.

D. Copies of all documents used to complete a NOx budget permit application and any other submission under

the NOx budget trading program or to demonstrate compliance with the requirements of the NOx budget trading

program.

2. The NOx authorized account representative of a NOx budget source and each NOx budget unit at the source shall

submit the reports and compliance certifications required under the NOx budget trading program, including those under

subsections (3)(D), (3)(H), or section (4) of this rule.

(5) Test Methods. (Not Applicable)
AUTHORITY: section 643.050, RSMo 2000.* Original rule filed Feb. 14, 2005, effective Oct. 30, 2005. Amended:

Filed Oct. 2, 2006, effective May 30, 2007.

*Original authority: 643.050, RSMo 1965, amended 1972, 1992, 1993, 1995.
10 CSR 10-6.380 Control of NOx Emissions From Portland Cement Kilns

PURPOSE: This rule reduces emissions of oxides of nitrogen (NOx) to ensure compliance with the federal NOx control

plan to reduce the transport of air pollutants. The rule establishes NOx control equipment and NOx emission levels for

cement kilns. The evidence supporting the need for this proposed rulemaking per section 536.016, RSMo, is the U.S.

Environmental Protection Agency NOx State Implementation Plan (SIP) Call dated April 21, 2004.

(1) Applicability. This rule applies to any cement kiln located in the counties of Bollinger, Butler, Cape Girardeau,

Carter, Clark, Crawford, Dent, Dunklin, Franklin, Gasconade, Iron, Jefferson, Lewis, Lincoln, Madison, Marion,

Mississippi, Montgomery, New Madrid, Oregon, Pemiscot, Perry, Pike, Ralls, Reynolds, Ripley, St. Charles, St.

Francois, St. Louis, Ste. Genevieve, Scott, Shannon, Stoddard, Warren, Washington and Wayne counties and the City

of St. Louis that—

(A) Is a long dry kiln with an actual process rate of at least twelve tons of clinker produced per hour (12 TPH);

(B) Is a long wet kiln with an actual process rate of at least ten (10) TPH;

(C) Is a preheater kiln with an actual process rate of at least sixteen (16) TPH; or

(D) Is a precalciner or preheater/precalciner kiln with an actual process rate of at least twenty-two (22) TPH.

(2) Definitions.

(A) Clinker—The product of a Portland cement kiln from which finished cement is manufactured by milling and

grinding.

(B) Long-dry kiln—A kiln fourteen feet (14') or larger in diameter, four hundred feet (400') or greater in length,

which employs no preheating of the feed and the inlet feed to the kiln is dry.

(C) Long-wet kiln—A kiln fourteen feet (14') or larger in diameter, four hundred feet (400') or greater in length,

which employs no preheating of the feed and the inlet feed to the kiln is a slurry.

(D) Low-NOx burners—A type of cement kiln burner (a device that functions as an injector of fuel and combustion

air into kiln to produce a flame that burns as close as possible to the center line of the kiln) that has a series of channels

or orifices that 1) allow for the adjustment of the volume, velocity, pressure, and/or direction of the air carrying the

fuel, known as primary air, into the kiln, and 2) impart high momentum and turbulence to the fuel stream to facilitate

mixing of the fuel and secondary air.

(E) Mid-kiln firing—Secondary firing in kiln systems by injecting fuel at an intermediate point in the kiln system

using a specially designed fuel injection mechanism for the purpose of decreasing NOx emissions through—

1. The burning of part of the fuel at a lower temperature; and

2. The creation of reducing conditions at the point of initial combustion.

(F) Portland cement—A hydraulic cement produced by pulverizing clinker consisting essentially of hydraulic

calcium silicates, usually containing one (1) or more of the forms of calcium sulfate as an interground addition.

(G) Portland cement kiln—A system, including any solid, gaseous or liquid fuel combustion equipment, used to

calcine and fuse raw materials, including limestone and clay, to produce Portland cement clinker.

(H) Preheater/precalciner kiln—A kiln where the feed to the kiln system is preheated in cyclone chambers and that

utilizes a second burner to provide heat for calcination of material prior to the material entering the rotary kiln which

forms clinker.

(I) Preheater kiln—A kiln where the feed to the kiln system is preheated in cyclone chambers prior to the final

fusion, which forms clinker.

(J) Recoverable fuel—Fuels that have been permitted for use for energy recovery under 10 CSR 10-6.065.

(K) Renewable fuel—Renewable energy resources that include but are not limited to solar (photovoltaic), wind, and

biomass. Biomass includes but is not limited to: agricultural crops and crop waste, untreated wood and wood wastes,

livestock waste, wastepaper, and organic municipal solid waste.

(L) Definitions of certain terms specified in this rule, other than those defined in this rule section, may be found in 10

CSR 10-6.020.

(3) General Provisions.

(A) Beginning May 1, 2007 an owner or operator of any Portland cement kiln subject to this rule shall not operate

the kiln during the period starting May 1 and ending September 30 of each year, unless the kiln installs and operates

with one (1) of the following:

1. Low-NOx burners;

2. Mid-kiln firing;

3. An alternative control technology that is approved by the staff director, and incorporated in the federally

approved SIP, and is proven to achieve emission reductions of thirty percent (30%) or greater;

4. An emission rate of:

A. For long-wet kilns—6.8 pounds of NOx per ton of clinker produced, averaged over the period from May 1

through September 30 of each year.
B For long-dry kilns—6.0 pounds of NOx per ton of clinker produced, averaged over the period from May 1

through September 30 of each year.

C. For preheater kilns—4.1 pounds of NOx per ton of clinker produced, averaged over the period from May 1

through September 30 of each year.

D. For preheater/precalciner kilns—2.7 pounds of NOx per ton of clinker produced, averaged over the period

from May 1 through September 30 of each year; or

5. The findings of a case-by-case study committed to and conducted by the owner or operator and approved by the

staff director, and incorporated into the federally approved SIP, taking into account energy, environmental, and

economic impacts and other costs to determine an emission limitation that is achievable for the installation through

application of production processes or available methods, systems and techniques, including fuel cleaning or treatment

or innovative fuel combustion techniques for control of NOx.

(B) To meet the requirements of paragraph (3)(A)3. or (3)(A)5. of this rule, the owner or operator may take into

account as a portion of the required NOxreductions, physical and quantifiable measures to increase energy efficiency,

reduce energy demand, or increase use of renewable or recoverable fuels.

(C) Excess Emissions During Start-Up, Shutdown, or Malfunction. If the owner or operator provides notice of

excess emissions pursuant to state rule 10 CSR 10-6.050(3)(B), the director will determine whether the excess

emissions are attributable to start-up, shutdown or malfunction conditions, pursuant to rule 10 CSR 10-6.050(3)(C). If

the director determines that the excess emissions are attributable to such conditions, and if such excess emissions cause

a kiln to exceed the applicable emission limits in this rule, the director will determine whether enforcement action is

warranted, as provided in rule 10 CSR 10-6.050(3)(C). If the director determines that the excess emissions are

attributable to a start-up, shutdown, or malfunction condition and does not warrant enforcement action, those emissions

would not be included in the calculation of ozone season NOx emissions.

(4) Reporting and Record Keeping.

(A) Reporting Requirements. The owner or operator of a kiln subject to this rule shall comply with the following

requirements:

1. By May 1, 2007, the owner or operator shall submit to the staff director the identification number and type of

each unit subject to this rule, the name and address of the plant where the unit is located, and the name and telephone

number of the person responsible for demonstrating compliance with this rule;

2. The owner or operator shall submit to the staff director by October 31 of each year, beginning in the year 2007,

an annual report documenting for that unit:

A. The emissions, in pounds of NOx per ton of clinker produced from each affected Portland cement kiln during

the period from May 1 through September 30;

B. The results of any performance testing; and

C. Cement kiln clinker production, in tons, from May 1 through September 30; and

3. If the owner or operator elects to comply with paragraph (3)(A)3. or (3)(A)5. of this rule, the owner or operator

will supply, starting April 2008, the staff director with a report as specified in the compliance plan.

(B) Record Keeping Requirements.

1. Any owner or operator of a unit subject to this rule shall produce and maintain records, which shall include, but

are not limited to the results of any initial performance test, the results of any subsequent performance tests, the date,

time and duration of any start-up, shutdown or malfunction in the operation of any of the cement kilns or the emissions

monitoring equipment, as applicable.

2. If an owner or operator elects to use subsection (3)(B) of this rule as part of the compliance plan, the owner or

operator must retain records as agreed to in the approved compliance plan.

3. Daily cement kiln clinker production in tons per day.

4. Any applicable monitoring data.

5. All records required to be produced or maintained shall be retained on-site for a minimum of five (5) years and

made available upon request.

(C) Monitoring Requirements.

1. An owner or operator complying with paragraph (3)(A)1. or (3)(A)2. of this rule shall maintain and operate the

device according to the manufacturer’s specifications as approved by the permitting agency. The monitoring shall:

A. Include parameters indicated in the manufacturer’s specifications and recommendations for the low-NOx

burner or mid-kiln firing system as approved by the permitting agency; and

B. Identify the specific operation conditions to be monitored and correlation between the operating conditions

and NOx emission rate.

2. An owner or operator complying with paragraph (3)(A)3., (3)(A)4., or (3)(A)5. of this rule shall complete an

initial performance test by May 1, 2007 and subsequent performance tests, on an annual basis, consistent with the

requirements of section (5) of this rule.

3. An owner or operator may comply with the requirements in paragraph (4)(C)1. through the use of an alternative

compliance method approved by the staff director and incorporated in the federally approved SIP.

4. Any deviation from the operating conditions or specifications, which result in an increase in NOx emissions,

established in this paragraph constitute a violation of this rule, unless the owner or operator demonstrates to the

satisfaction of the director that the deviation did not result in an increase in NOx emissions.
(5) Test Methods. NOx emission level testing shall use one (1) of the following methods as specified by 40 CFR part

60 Appendix A—Reference Methods:

(A) Method 7—Determination of Nitrogen Oxide Emissions from Stationary Sources;

(B) Method 7A—Determination of Nitrogen Oxide Emissions from Stationary Sources—Ion Chromatographic

Method;

(C) Method 7C—Determination of Nitrogen Oxide Emissions from Stationary Sources—AlkalinePermanganate/Colorimetric Method;

(D) Method 7D—Determination of Nitrogen Oxide Emissions from Stationary Sources—Alkaline-Permanganate/Ion

Chromatographic Method; or

(E) Method 7E—Determination of Nitrogen Oxide Emissions from Stationary Sources (Instrumental Analyzer

Procedure).

AUTHORITY: section 643.050, RSMo 2000.* Original rule filed Feb. 14, 2005, effective Oct. 30, 2005.

*Original authority: 643.050, RSMo 1965, amended 1972, 1992, 1993, 1995.
10 CSR 10-6.390 Control of NOx Emissions From Large Stationary Internal Combustion Engines

PURPOSE: This rule reduces emissions of oxides of nitrogen (NOx) to ensure compliance with the federal NOx control

plan to reduce the transport of air pollutants. This rule establishes emission levels for large stationary internal

combustion engines. The evidence supporting the need for this proposed rulemaking, per section 536.016, RSMo, is the

U.S. Environmental Protection Agency NOx State Implementation Plan (SIP) Call dated April 21, 2004.

(1) Applicability. This rule applies to any large stationary internal combustion engine located in the counties of

Bollinger, Butler, Cape Girardeau, Carter, Clark, Crawford, Dent, Dunklin, Franklin, Gasconade, Iron, Jefferson,

Lewis, Lincoln, Madison, Marion, Mississippi, Montgomery, New Madrid, Oregon, Pemiscot, Perry, Pike, Ralls,

Reynolds, Ripley, St. Charles, St. Francois, St. Louis, Ste. Genevieve, Scott, Shannon, Stoddard, Warren, Washington,

and Wayne counties and the City of St. Louis greater than one thousand three hundred (1,300) horsepower that—

(A) Emitted greater than one (1) ton per day of NOx on average during the period from May 1 through September 30

of 1995, 1996, or 1997; or

(B) Begins operation after September 30, 1997.

(C) Any stationary internal combustion engine that meets the definition of emergency standby engine in subsection

(2)(C) of this rule is exempt from this rule.

(2) Definitions.

(A) Diesel engine—A compression ignited (CI) two- or four-stroke engine in which liquid fuel is injected into the

combustion chamber and ignited when the air charge has been compressed to a temperature sufficiently high for autoignition.

(B) Dual fuel engine—Compression ignited stationary internal combustion engine that is capable of burning liquid

fuel and gaseous fuel simultaneously.

(C) Emergency standby engine—An internal combustion engine used only when normal electrical power or natural

gas service is interrupted, or for the emergency pumping of water for either fire protection or flood relief. An

emergency standby engine may not be operated to supplement a primary power source when the load capacity or rating

of the primary power source has been either reached or exceeded.

(D) Engine rating—The output of an engine as determined by the engine manufacturer and listed on the nameplate of

the unit, regardless of any derating.

(E) Higher heating value (HHV)—The total heat liberated per mass of fuel burned in British thermal units (Btu) per

pound, when fuel and dry air at standard conditions undergo complete combustion and all resultant products are

brought to their standard states at standard conditions. If certification of the HHV is not provided by the third party

fuel supplier, it shall be determined by one of the following test methods: ASTM D2015-85 for solid fuels; ASTM

D240-87 or ASTM D2382-88 for liquid hydrocarbon fuels; or ASTM D1826-88 or ASTM D1945-81 in conjunction

with ASTM D3588-89 for gaseous fuels. These methods are all incorporated by reference as specified at 40 CFR

52.3002.

(F) Lean-burn engine—Any two- or four-stroke spark ignited (SI) engine with greater than four percent (4%) oxygen

in the engine exhaust.

(G) Maintenance operation—Normal routine maintenance on any stationary internal combustion engine subject to

this rule or the use of an emergency standby engine and fuel system during testing, repair and routine maintenance to

verify its readiness for emergency standby use.

(H) Output—The shaft work output from any engine plus the energy reclaimed by any useful heat recovery system.

(I) Peak load—The maximum instantaneous operating load.

(J) Permitted capacity factor—The annual permitted fuel use divided by the manufacturers specified maximum fuel

consumption times eight thousand seven hundred sixty (8,760) hours per year.

(K) Rich-burn engine—A two- or four-stroke SI engine where the oxygen content in the exhaust stream before any

dilution is one percent (1%) or less measured on a dry basis.

(L) Stationary internal combustion engine—Internal combustion engine of the reciprocating type that is either

attached to a foundation at a facility or is designed to be capable of being carried or moved from one (1) location to

another and remains at a single site at a building, structure, facility, or installation for more than twelve (12)

consecutive months. Any engine or engines that replace an engine at a site that is intended to perform the same or

similar function as the engine replaced is included in calculating the consecutive time period. Nonroad engines and

engines used solely for competition are not stationary internal combustion engines.

(M) Stoichiometric air/fuel ratio—The air/fuel ratio where all fuel and all oxygen in the air/fuel mixture will be

consumed.

(N) Unit—Any diesel, lean-burn, or rich-burn stationary internal combustion engine as defined in this section.

(O) Utilization rate—The amount of an engine’s capacity reported in horsepower-hours that is utilized.

(P) Definitions of certain terms used in this rule, other than those specified in this rule, may be found in 10 CSR 10-

6.020.

(3) General Provisions.
(A) An owner or operator of a large stationary internal combustion engine meeting the applicability of paragraph

(1)(A)1. of this rule shall calculate the allowable NOx emission rate for each applicable engine using:

ER =(NOx act

/UR) × 1.102 × 10

-6

× 0.1

where,

ER = the allowable emission rate for each engine in grams per horsepowerhour;

NOx act= the highest actual NOx emissions, reported in tons per

control period, for the period from

May 1 through September 30 for

one of the years 1995, 1996, or

1997 based on the best available

emission information for each

engine; and

UR = the utilization rate in horse-powerhours during the same period as

NOx act

(B) An owner or operator of a large stationary internal combustion engine meeting the applicability of paragraph

(1)(A)2. of this rule shall not operate an engine to exceed the permitted emission rate or the following emission rate,

whichever is more stringent:

1. For rich-burn SI engines 3.0 grams per horsepower-hour; or

2. For lean-burn SI engines 3.0 grams per horsepower-hour;

(C) An owner or operator of a large stationary internal combustion engine may choose to establish a facility-wide

NOx emissions cap in lieu of compliance with subsection (3)(A) of this rule. If the owner or operator elects to comply

with the requirements of subsection (3)(A), the owner or operator shall submit a commitment in writing no later than

May 1, 2005, to the director stating the intent to comply with that subsection. If the owner or operator commits to

comply with this subsection rather than subsection (3)(A) of this rule, the owner or operator shall submit the following

to the director:

1. The facility-wide NOx emissions from the year of data that would be used in paragraph (3)(A)1. of this rule on a

unit-by-unit basis;

2. The number of tons of NOx emission reductions that would be required in paragraph (3)(A)1. of this rule on a

unit-by-unit basis;

3. A detailed inventory of all engines being used to comply with the NOx emission cap including the:

A. Uncontrolled emission rate of all engines at the facility;

B. Controlled emission rate for all engines being controlled under the NOx emissions cap;

C. Capacity of each engine at the facility; and

D. Utilization rate of each engine at the facility; and

4. The controlled NOx emissions from the facility during the control period, May 1 through September 30.

(D) To meet the requirements of subsection (3)(A) or (3)(B) of this rule, the owner or operator may take into account

as a portion of the required NOxreductions, physical and quantifiable measures to increase energy efficiency, reduce

energy demand, or increase use of renewable fuels.

(E) Monitoring Requirements.

1. Any owner or operator meeting the applicability of section (1) of this rule shall not operate such equipment

unless it is equipped with one of the following:

A. A continuous emissions monitoring system (CEMS), which meets the applicable requirements of 40 CFR

part 60, subpart A, Appendix B, and complies with the quality assurance procedures specified in 40 CFR part 60,

Appendix F. The CEMS shall be used to demonstrate compliance with the applicable emission limit; or

B. A calculational and record keeping procedure based upon actual NOx emissions testing and correlations with

operating parameters. The installation, implementation and use of such an alternate calculational and record keeping

procedure must be approved by the director and EPA and incorporated into the SIP in writing prior to implementation.

2. The CEMS or approved alternate monitoring procedure shall be operated and maintained in accordance with an

on-site CEMS or alternate monitoring plan approved by the director.

(F) Excess Emissions During Start-Up, Shutdown, or Malfunction. If the owner or operator provides notice of

excess emissions pursuant to state rule 10 CSR 10-6.050(3)(B), the director will determine whether the excess

emissions are attributable to start-up, shutdown or malfunction conditions, pursuant to rule 10 CSR 10-6.050(3)(C). If

the director determines that the excess emissions are attributable to such conditions, and if such excess emissions cause

a kiln to exceed the applicable emission limits in this rule, the director will determine whether enforcement action is

warranted, as provided in rule 10 CSR 10-6.050(3)(C). If the director determines that the excess emissions are

attributable to a start-up, shutdown, or malfunction condition and does not warrant enforcement action, those emissions

would not be included in the calculation of ozone season NOx emissions.

(4) Reporting and Record Keeping.
(A) Reporting Requirements. The owner or operator subject to this rule shall comply with the following

requirements:

1. The owner or operator shall submit to the director the identification number and type of each unit subject to this

rule, the name and address of the plant where the unit is located, and the name and telephone number of the person

responsible for demonstrating compliance with this rule before May 1, 2007;

2. The owner or operator shall submit an annual report documenting for each controlled unit the total NOx

emissions from May 1 through September 30 of each year to the director by November 1 of that year, beginning in

2007; and

3. The owner or operator of a unit subject to this rule and operating a CEMS shall submit an excess emissions

monitoring systems performance report, in accordance with the requirements of 40 CFR 60.7(c) and 60.13.

(B) Record Keeping Requirements. Any owner or operator of a unit subject to this rule shall maintain all records

necessary to demonstrate compliance with this rule for a period of five (5) years at the plant at which the subject unit is

located. The records shall be made available to the director upon request. The owner or operator shall maintain

records of the following information for each day of the control period the unit is operated:

1. The identification number of each unit and the name and address of the plant where the unit is located for each

unit subject to the requirements of this rule;

2. The calendar date of record;

3. The number of hours the unit is operated during each day including start-ups, shutdowns, malfunctions, and the

type and duration of maintenance and repair;

4. The date and results of each emissions inspection;

5. A summary of any emissions corrective maintenance taken;

6. The results of all compliance tests; and

7. If a unit is equipped with a CEMS—

A. The identification of time periods during which NOx standards are exceeded, the reason for the exceedance,

and action taken to correct the exceedance and to prevent similar future exceedances; and

B. The identification of the time periods for which operating conditions and pollutant data were not obtained

including reasons for not obtaining sufficient data and a description of corrective actions taken.

(5) Test Methods. (Not Applicable)

AUTHORITY: section 643.050, RSMo 2000.* Original rule filed Feb. 14, 2005, effective Oct. 30, 2005.

*Original authority: 643.050, RSMo 1965, amended 1972, 1992, 1993, 1995.