### ENCLOSURE 2

CERTIFICATION OF PUBLIC PARTICIPATION ACTIVITIES AND COMPLIANCE WITH STATE ADMINISTRATIVE PROCEDURES

As required by 40 CFR 51.102 and Section 2. 1 of Appendix V of 40 CFR Part 51, the following information regarding public participat ion activities and compliance with state administrative procedures is provided.

PUBLIC PARTICIPATION ACTIVITIES

As required by 40 CFR 51.102(a), a public comm ent period to provide the opportunity to submit written comments concerning a proposed revision to the Commonwealth of Virginia State Implementation Plan was hel d from August 4 to September 2, 2010.

As required by 40 CFR Part 51.102(a) and (d)(1 ) and (2), the public was given notice of the public comment period in the Washington Examiner (for the National Capital Interstate Air Quality Control Region), along with the location of the proposal for public inspection, on August 4, 2010. The notice included procedures to afford the public the opportunity to request that a hearing be hel d pursuant to 40 CFR 51.102(a); no such request was received. The attached copy of the notice provides the evidence required by Section 2.1(f) of Appendix V of 40 CFR Part 51. Similar notices were placed in at least one paper of general circulation in each of Virginia's other Air Quality Control Regions.

The Regional Administrator for the U.S. En vironmental Protection Agency was notified of the public comment period, as was each local air pollution control agency which will be significantly affected by the revision and is located in the affected Air Quality Control Regions. In addition, the District of Columbia, Maryland and Tennessee, which share affected interstate Air Quality Control Regions with Virginia, were notified of the public comment period. These notifications follow the requirements of 40 CFR Part 51.102(d)(3), (4) and (5).

COMPLIANCE WITH STATE ADMINISTRATIVE PROCEDURES

As required by Section 2.1(b) of Appendi x V of 40 CFR Part 51, the regulation amendments were published in the Virginia R egister of Regulations on February 16, 2009 after being duly adopted by the State Air Pollution Control Board on December 16, 2008, certified by the Office of the Attor ney General as within the board’s statutory authority on December 17, 2008 and thus fully enforceable under Virginia law, and submitted to the Virginia Registrar on behalf of the Board by the Department of Environmental Quality as a true and accura te copy of the duly adopted regulation on January 21, 2009, providing the evidence r equired by Section 2.1(b) and (e) of Appendix V of 40 CFR Part 51. As required by Section 2.1(d) of Appendix V of 40 CFR Part 51, a copy of the actual regulation submitted for approval and incorporation by

### reference into the Commonwealth of Virgin ia State Implementation Plan is attached, along with the effective date of March 18, 2009.

TEMPLATES\SIP-REG\REG02-PH SIP\NONATTN PLANS\2010\K07-SIP-2.DOC

# Regulations

Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2106 to protect public health andwelfare, he may direct that any of the above cited distances be increased. 4. The burning shall be attended at all times and conducted to ensure the best possible com bustion with a minimum of smoke being produced. Under no circumstances should the burning be allowed to smolder beyond the minimum period of time necessary for the destruction of the materials. 5. The burning shall be conducted only when the prevailing winds are away from any city, town or built-up area. 6. The use of special incineration devices shall be allowed only for the destruction of debris waste, clean burning construction waste, and clea n burning demolition waste.

7. Permits issued under this subs ection shall be limited to a specific period of time deemed appropriate by (designated local official). (C. An application for a permit under Section 000-7 A or 000-7 B shall be accompanied by a processing fee of $----. 4 )
Section (000-8). Penalties for violation.

A. Any violation of this ordinance is punishable as a Class 1 misdemeanor. (See § 15.2-1429 of the Code of Virginia.)

B. Each separate incident may be considered a new violation.

1 This provision shall be included in ordinances for urban areas. It may be included in ordinances for nonurban areas.

2 This provision shall be included in ordinances for urban areas. It may be included in ordinances for nonurban areas.

3 This provision shall be included in ordinances for jurisdictions within volatile organic compound emissions control areas. It may be included in ordinances for jurisdictions outside these areas.

4 The fee stipulation in this section is optional at the discretion of the jurisdiction.

VA.R. Doc. No. R09-1680; Filed January 21, 2009, 3:34 p.m. Final Regulation

REGISTRAR'S NOTICE: The following regulatory action is exempt from the Administrative Process Act in accordance with § 2.2-4006 A 4 c of the Code of Virginia, which excludes regulations that are necessary to meet the requirements of federal law or regulations, provided such regulations do not differ materially from those required by federal law or regulation. The State Air Pollution Control Board will receive, consider and respond to petitions by any interested person at any time with respect to reconsideration or revision.
Title of Regulation: 9VAC5-140. Regulation for Emissions Trading Programs (amending 9VAC5-140-1010, 9VAC5- 140-1020, 9VAC5-140-1060, 9VAC5-140-2010, 9VAC5- 140-2020, 9VAC5-140-3010, 9VAC5-140-3020). Statutory Authority: §§ 10.1-1308 and 10.1-1322.3 of the Code of Virginia; §§ 108, 109, 110 and 302 of the Clean Air Act; 40 CFR Part 51.

Effective Date: March 18, 2009.
Agency Contact: Mary E. Major, Department of Environmental Quality, 629 East Main Street, P.O. Box 1105, Richmond, VA 23218, telephone (804) 698-4423 or email memajor@deq.virginia.gov.
Summary:

Substantive amendments to the regulation include: 1. The definitions of “CAIR NOx Annual Trading Program,” “CAIR NOx Ozone Season Trading Program,” “CAIR SO 2 Trading Prog ram,” and “permitting authority” in 9VAC5-140-1 020, 9VAC5-140-2020, and 9VAC5-140-3020 are amended to clarify that they are not intended to create trading programs only for sources geographically located within the borders of the Commonwealth of Virginia. Therefore, qualifying sources within the Common wealth are to become full participants in the EPA-administered regional CAIR trading programs for annual NOx, ozone season NOx, and annual SO 2 , along with sources permitted by autho rities in all other states that are participating in the regional CAIR trading programs. The new language clarifies that the regulations should not be in terpreted to limit the trad ing program to Virginia sources, which would be contrary to the intention that sources covered by other states’ approved CAIR rules or by the CAIR FIP may trade allowances with sources in the Commonwealth. In additio n, the provisions of 9VAC5- 140-1010, 9VAC5-140-2010, and 9VAC5-140-3010 are amended to reflect this clarification. 2. The definition of “most stri ngent state or federal NOx emissions limitation” in 9V AC5-140-1020, 9VAC5-140- 2020, and 9VAC5-140-3020 is amended to clarify that the primary fuel, where it is not designated in the permit, is the fuel that would result in the lowest emission rate. 3. The definition of “cogeneration unit” in 9VAC5-140- 1020, 9VAC5-140-2020, and 9VAC5-140-3020 is amended so that most units co-firing biomass will be exempt from CAIR. Specifically, the calcu lation methodology is removed for the efficiency standar d in the cogeneration unit definition to exclude energy input from biomass making it more likely that units co-firing biomass are able to meet the efficiency standard and qualify for exemption from the rule. In these same sections, technical amendments were made to add a new definition of "biomass" and revise the definiti on of "total energy input ."

# Regulations

Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2107 Part II No x Annual Trading Program

Article 1 CAIR NO x Annual Trading Program General Provisions
9VAC5-140-1010. Purpose and authority

.

A. This part establishes general provisions and the designated representative, permitti ng, allowance, monitoring, and opt-in provisions for the State Clean Air Interstate Rule (CAIR) NO X Annual Trading Program, under § 110 of the Clean Air Act (42 USC § 7410) and 40 CFR 51.123, as a means of mitigating interstate transport of fine particulates and nitrogen oxides.

B. The purpose of this pa rt is not to create the CAIR NO X Annual Trading Program only for CAIR NO X units and CAIR NO X sources geographically located within the borders of the Commonwealth of Virginia. Upon approval by EPA in accordance with 40 CFR 51.123 (o)(1) or (2), qualifying CAIR NO X units and CAIR NO X sources within the Commonwealth will become full participants in the EPAadministered regional CAIR NO X Annual Trading Program, which will include CAIR NO X units and CAIR NO X sources permitted by authorities in all other states that are participating in th e regional CAIR NO X Annual Trading Program.

C. This part should not be interpreted to limit the CAIR NO X Annual Trading Program to Virginia CAIR NO X units and CAIR NO X sources, which would be contrary to the intention that CAIR NO X units and CAIR NO X sources covered by CAIR programs of other states approved in accordance with 40 CFR 51.123 (o)(1) or (2) or by the CAIR Federal Implementation Plan (subparts AA through II of 40 CFR Part 97) may trade allowances with CAIR NO X units and CAIR NO X sources in the Comm onwealth. While the CAIR NO X Annual Trading Program must include CAIR NO Xunits and CAIR NO X sources and permitting authorities beyond the borders of the Commonwealth, the permitting authority for Virginia (the State Air Pollution Control Board) has no authority to ensure compliance with this part by any permitting authority, person or entity outside the Commonwealth.

D. The board has the authority under the Code of Virginia to regulate the allocations of allowances, issuance of the budget permits, the administration of the opt-in provisions and other duties assigned to the permitting authority only for CAIR NO X units and CAIR NO Xsources in Virginia. The board authorizes the administrator to assist the board in implementing the CAIR NO X Annual Trading Program by carrying out the functions set fo rth for the administrator in this part. 9VAC5-140-1020 . Definitions. A. As used in this part, all words or terms not defined here shall have the meaning given them in 9VAC5 Chapter 10 (9VAC5

- 10), 9VAC5-10 (General Definitions) unless otherwise required by context.

B. For the purpose of this part and any related use, the words or terms shall have the meaning given them in this paragraph subsection

.

"Account number" means the identification number given by the administrator to each CAIR NO X Allowance Tracking System account.

"Acid rain emissions limitation" means a limitation on emissions of sulfur dioxide or nitrogen oxides under the Acid Rain Program.

"Acid Rain Program" means a multistate sulfur dioxide and nitrogen oxides air pollution control and emission reduction program established by the administrator under Title IV of the CAA and 40 CFR Parts 72 through 78.

"Administrator" means the ad ministrator of the United States Environmental Prot ection Agency or the administrator's duly authorized representative.

"Allocate" or "allocation" means, with regard to CAIR NO X allowances, the determination by a permitting authority or the administrator of the amount of such CAIR NO X allowances to be initially credited to a CAIR NO X unit, a new unit set-aside, a new energy efficiency/renewable energy unit set-aside, or other entity.

"Allocation year" means the year in which allowance allocations are calculated for a future year.

"Allowance transfer deadline" means, for a control period, midnight of March 1 (if it is a business day), or midnight of the first business day thereafter (if March 1 is not a business day), immediately following the c ontrol period and is the deadline by which a CAIR NO X allowance transfer must be submitted for recordation in a CAIR NO X source's compliance account in order to be used to meet the source's CAIR NO X emissions limitation for such control period in accordance with 9VAC5-140-1540.

"Alternate CAIR-designated representative" means, for a CAIR NO X source and each CAIR NO X unit at the source, the natural person who is authori zed by the owners and operators of the source and all such units at the source, in accordance with Article 2 (9VAC5-140-1100 et seq.) and Article 9 (9VAC5-140-1800 et seq.) of this part, to act on behalf of the CAIR-designated representative in matters pertaining to the CAIR NO X Annual Trading Program. If the CAIR NO X source is also a CAIR SO 2 source, then this natural person shall be the same person as the alternate CAIR-designated representative under the CAIR SO 2 Trading Program. If the CAIR NO X source is also a CAIR NO X Ozone Season source,

# Regulations

Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2108 then this natural person shall be the same person as the alternate CAIR-designated representative under the CAIR NO X Ozone Season Trading Program. If the CAIR NO X source is also subject to the Acid Rain Program, then this natural person shall be the same person as the alternate designated representative under the Acid Rain Program. If the CAIR NO X source is also subject to the Hg Budget Trading Program, then this natural person shall be the same person as the alternate Hg designated representative under the Hg Budget Trading Program.

"Automated data acquisition and handling system" or "DAHS" means that component of the continuous emission monitoring system, or other emissions monitoring system approved for use under Article 8 (9VAC5-140-1700 et seq.) of this part, designed to inte rpret and conve rt individual output signals from pollutant concentration monitors, flow monitors, diluent gas monitors, and other component parts of the monitoring system to produ ce a continuous record of the measured parameters in the measurement units required by Article 8 (9VAC5-140- 1700 et seq.) of this part.

“Biomass” means:

1. Any organic material grown for the purpose of being converted to energy; 2. Any organic byproduct of agriculture that can be converted into energy; or 3. Any material that can be converted into energy and is nonmerchantable for other purposes, that is segregated from other nonmerchantable material, and that is:

a. A forest-related organic resource, including mill residues, precommercial thinnings, slash, brush, or byproduct from conversion of trees to merchantable material; or b. A wood material, including pallets, crates, dunnage, manufacturing and construction materials (other than pressure-treated, chemically-treated, or painted wood products), and landscape or ri ght-of-way tree trimmings. "Biomass energy" means energy derived from the combustion or electro-chemical reaction (as with a fuel cell) of hydrocarbon materials of a biogenic origin using a solid, liquid or gaseous fuel. Biomass fu el materials include, but are not limited to, animal wastes (e.g., manure) and clean plant materials (e.g., wood chips, waste paper and crop wastes). Biomass fuels exclude products that have emissions that include heavy metals and other neurotoxins (e.g., municipal solid wastes). Biomass fuel materials may be converted to a gaseous fuel, such as landfills (i.e., landfill gas) or waste treatment facilities (i.e., digester gas), or to liquid fuels (e.g., biodiesel). To be considered a biomass facility, the facility must (i) employ maximum achi evable control technology and continuous emission stack monitors for all chemical emissions of concern to human health and (ii) be listed in one of the following categories: anaerobic digestion systems operating on animal or plant wastes, methane gas, combustion of clean wood, bark or other plant material; or on combustion of fuels derived entirely from processing of clean wood, bark, or other plant or animal material, including processing by gasification, pyrolysis, fermentation, distillation, or densification.

"Boiler" means an enclosed fossil- or other fuel-fired combustion device used to produce heat and to transfer heat to recirculating water, steam, or other medium.

"Bottoming-cycle cogeneration unit" means a cogeneration unit in which the en ergy input to the unit is first used to produce useful thermal energy and at least some of the reject heat from the useful thermal energy application or process is then used for electricity production.

"CAIR-authorized account representative" means, with regard to a general account, a responsible natural person who is authorized, in accordan ce with Article 2 (9VAC5-140-1100 et seq.), Article 6 (9VAC5-140-1 500 et seq.), and Article 9 (9VAC5-140-1800 et seq.) of this part, to transfer and otherwise dispose of CAIR NO X allowances held in the general account and, with regard to a compliance account, the CAIR-designated representative of the source.

"CAIR-designated representative" means, for a CAIR NO X source and each CAIR NO Xunit at the source, the natural person who is authorized by the owners and operators of the source and all such units at the source, in accordance with Article 2 (9VAC5-140-11 00 et seq.) and Article 9 (9VAC5- 140-1800 et seq.) of this part, to represent and legally bind each owner and operator in matters pertaining to the CAIR NO X Annual Trading Program. If the CAIR NO X source is also a CAIR SO 2 source, then this natural person shall be the same person as the CAIR-designated representative under the CAIR SO 2 Trading Program. If the CAIR NO X source is also a CAIR NO X Ozone Season source, then this natural person shall be the same person as the CAIR-designated representative under the CAIR NO X Ozone Season Trading Program. If the CAIR NO X source is also subject to the Acid Rain Program, then this natural person shall be the same person as the designated representative under the Acid Rain Program. If the CAIR NO X source is also subject to the Hg Budget Trading Program , then this natural person shall be the same person as the Hg designated representative under the Hg Budget Trading Program.

"CAIR NO Xallowance" means a limited authorization issued by a permitting authority or the administrator under Article 5 (9VAC5-140-1400 et seq.) of this part or 9VAC5- 140-1880, provisions of an implementation plan that are approved under 40 CFR 51.123(o)(1) or (2) or (p), or under subpart EE of 40 CFR Part 97 or 40 CFR 97.188, to emit one ton of nitrogen oxides during a control period of the specified calendar year for which the authorization is allocated or of any calendar year thereafter under the CAIR NO X Program.

# Regulations

Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2109 An authorization to emit nitro gen oxides that is not issued under Article 5 (9VAC5-140-1400 et seq.) of this part or 9VAC5-140-1880, provisions of an implementation plan that are approved under 40 CFR 51.123(o)(1) or (2) or (p), or under subpart EE of 40 CFR Part 97 or 40 CFR 97.188 shall not be a CAIR NO X allowance. No provision of the CAIR NO X Annual Trading Program, the CAIR permit application, the CAIR permit, or an exemption under 9VAC5-140-1040 B or 9VAC5-140-1050 and no provision of law shall be construed to limit the authority of the United States or board to terminate or limit such au thorization, which does not constitute a property right.

"CAIR NO X allowance deduction" or "deduct CAIR NO X allowances" means the pe rmanent withdrawal of CAIR NO X allowances by the administrator from a compliance account, e.g., in order to account for a specified number of tons of total nitrogen oxides emissi ons from all CAIR NO X units at a CAIR NO X source for a control period, determined in accordance with Article 8 (9VAC5-140-1700 et seq.) of this part, or to account for excess emissions.

"CAIR NO X Allowance Tracking System" means the system by which the administrator records allocations, deductions, and transfers of CAIR NO X allowances under the CAIR NO X Annual Trading Program. Such allowances will be allocated, held, deducted, or transferred only as whole allowances.

"CAIR NO XAllowance Tracking System account" means an account in the CAIR NO X Allowance Tracking System established by the administrator for purposes of recording the allocation, holding, transferring, or deducting of CAIR NO X allowances.

"CAIR NO Xallowances held" or "hold CAIR NO X allowances" means the CAIR NO X allowances recorded by the administrator, or submitted to the administrator for recordation, in accordance with Article 6 (9VAC5-140-1500 et seq.), Article 7 (9VAC5-140-1 600 et seq.), and Article 9 (9VAC5-140-1800 et seq.) of this part, in a CAIR NO X Allowance Tracking System account.

"CAIR NO X Annual core trading budget" means the amount of tons of NO X emissions in the CAIR NO X Annual trading budget for the control period minus the new unit set-aside budget and the new energy efficiency/renewable energy unit set-aside budget.

"CAIR NO X Annual trading budget " means the total number of NO X tons set forth in 9VAC5-140-1400 and apportioned to all CAIR NO X units and energy efficiency/renewable energy units in accordan ce with the CAIR NO X Annual Trading Program, for use in a given control period.

"CAIR NO X Annual Trading Program" means a multistate nitrogen oxides air pollution control and emission reduction program approved and administered by the administrator in accordance with this part, subparts AA through II of 40 CFR Part 96, and 40 CFR 51.123 (o)(1) or (2) or established by the administrator in accordance with subparts AA through II of 40 CFR Part 97 and 40 CFR 51.123(p) and 52.35, as a means of mitigating interstate transport of fine particulates and nitrogen oxides.

"CAIR NO X emissions limitation" means, for a CAIR NO X source, the tonnage equivalent, in NO X emissions in a control period, of the CAIR NO X allowances available for deduction for the source under 9VAC5-140-1540 A and B for the control period.

"CAIR NO X Ozone Season source" means a source that is subject to the CAIR NO XOzone Season Trading Program.

"CAIR NO X Ozone Season Trading Program" means a multistate nitrogen oxides air po llution control and emission reduction program approved and administered by the administrator in accordance with Part III (9VAC5-140-2010 et seq.) of this chapter, subparts AAAA through IIII of 40 CFR Part 96, and 40 CFR 51.123 (aa)(1) or (2) and (bb)(1), (bb)(2), or (dd) or established by the administrator in accordance with subparts AAAA through IIII of 40 CFR Part 97 and 40 CFR 51.123(ee) and 52.35, as a means of mitigating interstate transport of ozone and nitrogen oxides.

"CAIR NO X source" means a source that includes one or more CAIR NO X units.

"CAIR NO X unit" means a unit that is subject to the CAIR NO X Annual Trading Program under 9VAC5-140-1040 and, except for purposes of 9VAC5-140-1050 and Article 5 (9VAC5-140-1400 et seq.) of this part, a CAIR NO X opt-in unit under Article 9 (9VAC5-140-1800 et seq.) of this part.

"CAIR permit" means the terms and conditions in a Title V operating permit or state operating permit, issued by the permitting authority unde r Article 3 (9VAC5-140-1200 et seq.) of this part, including any permit revisions, specifying the CAIR NO X Annual Trading Program requirements applicable to a CAIR NO X source, to each CAIR NO X unit atthe source, and to the owners and operators and the CAIRdesignated representative of the source and each such unit.

"CAIR SO 2 source" means a source that is subject to the CAIR SO 2 Trading Program.

"CAIR SO 2 Trading Program" means a multistate sulfur dioxide air pollution control and emission reduction program approved and administered by th e administrator in accordance with Part IV (9VAC5-140-3010 et seq.) of this chapter, subparts AAA through III of 40 CFR Part 96, and 40 CFR 51.124 (o)(1) or (2) or established by the administrator in accordance with subparts AAA through III of 40 CFR Part 97 and 40 CFR 51.124(r) and 52.36, as a means of mitigating interstate transport of fine particu lates and sulfur dioxide.

"Clean Air Act" or "CAA" means the Clean Air Act, 42 USC § 7401 et seq.

# Regulations

Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2110 "Coal" means any solid fuel classified as anthracite, bituminous, subbituminous, or lignite.

"Coal-derived fuel" means any fuel (whether in a solid, liquid, or gaseous state) produced by the mechanical, thermal, or chemical processing of coal.

"Coal-fired" means:

1. Except for purposes of Article 5 (9VAC5-140-1400 etseq.) of this part, combusting any amount of coal or coalderived fuel, alone or in combination with any amount of any other fuel, during any year; or 2. For purposes of Article 5 (9VAC5-140-1400 et seq.) of this part, combusting any amount of coal or coal-derived fuel, alone or in combination with any amount of any other fuel, during a specified year. "Cogeneration unit" means a stationary, fossil-fuel-fired boiler or stationary, fossil-fuel-fired combustion turbine: 1. Having equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, or cooling purposes through the sequential use of energy; and 2. Producing during the 12-m onth period starting on the date the unit first produces electricity and during any calendar year after the calendar year in which the unit first produces electricity:

a. For a topping-cycle cogeneration unit; : (1) Useful thermal energy no t less than 5.0% of total energy output; and (2) Useful power that, when added to one-half of useful thermal energy produced, is not less then 42.5% of total energy input, if useful thermal energy produced is 15% or more of total energy output, or not less than 45% of total energy input, if useful th ermal energy produced is less than 15% of total energy output. b. For a bottoming-cycle cogene ration unit, useful power not less than 45% of total energy input. ; and 3. Provided that the total energ y input under subdivisions 2 a (2) and 2 b of this definiti on shall equal the unit’s total energy input from all fuel except biomass if the unit is a boiler.

"Combustion turbine" means:

1. An enclosed device comprising 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; and

2. If the enclosed device under subdivision 1 of this definition is combined cycle, any associated duct burner, heat recovery steam generator, and steam turbine. "Commence commercial operation" means, with regard to a unit: 1. To have begun to produce steam, gas, or other heated medium used to generate electricity for sale or use, including test generation, ex cept as provided in 9VAC5- 140-1050 and subdivision 8 of 9VAC5-140-1840.

a. For a unit that is a CAIR NO X unit under 9VAC5-140- 1040 on the later of November 15, 1990, or the date the unit commences commercial operation as defined in subdivision 1 of this definition and that subsequently undergoes a physical change (other than replacement of the unit by a unit at the same source), such date shall remain the date of commencement of commercial operation of the unit, which sh all continue to be treated as the same unit.

b. For a unit that is a CAIR NO X unit under 9VAC5-140- 1040 on the later of November 15, 1990, or the date the unit commences commercial operation as defined in subdivision 1 of this definition and that is subsequently replaced by a unit at the same source (e.g., repowered), such date shall remain th e replaced unit's date of commencement of commercial operation, and the replacement unit shall be treated as a separate unit with a separate date for commencement of commercial operation as defined in subdivision 1 or 2 of this definition as appropriate. 2. Notwithstanding subdivision 1 of this definition and except as provided in 9VAC5-140-1050, for a unit that is not a CAIR NO X unit under 9VAC5-140-1040 on the later of November 15, 1990, orthe date the unit commences commercial operation as defined in subdivision 1 of this definition, the unit's date for commencement of commercial operation shall be the da te on which the unit becomes a CAIR NO X unit under 9VAC5-140-1040.

a. For a unit with a date for commencement of commercial operation as defined in subdivision 2 of this definition and that subseque ntly undergoes a physical change (other than replacement of the unit by a unit at the same source), such date shall remain the date of commencement of commercial operation of the unit, which shall continue to be treated as the same unit.

b. For a unit with a date for commencement of commercial operation as defined in subdivision 2 of this definition and that is subsequ ently replaced by a unit at the same source (e.g., repowered), such date shall remain the replaced unit's date of commencement of commercial operation, and the replacement unit shall be treated as a separate unit with a separate date for commencement of commercial operation as defined in subdivision 1 or 2 of this definition as appropriate.

# Regulations

Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2111 "Commence operation" means:

1. 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 subdivision 8 of 9VAC5-140-1840. 2. For a unit that undergoes a physical change (other than replacement of the unit by a unit at the same source) after the date the unit commences operation as defined in subdivision 1 of this definitio n, such date shall remain the date of commencement of operation of the unit, which shall continue to be treatedas the same unit. 3. For a unit that is replaced by a unit at the same source (e.g., repowered) after the date the unit commences operation as defined in subdivision 1 of this definition, such date shall remain the replaced unit's date of commencement of operation, and the replacement unit shall be treated as a separate unit with a separate date for commencement of operation as defined in subdivision 1, 2, or 3 of this definition as appropriate, except as provided in subdivision 8 of 9VAC5-140-1840. "Common stack" means a single flue through which emissions from 2 or more units are exhausted.

"Compliance account" means a CAIR NO X Allowance Tracking System account, established by the administrator for a CAIR NO X source under Article 6 (9VAC5-140-1500 et seq.) or Article 9 (9VAC5-140-1800 et seq.) of this part, in which any CAIR NO X allowance allocations for the CAIR NO X units at the source are initially recorded and in which are held any CAIR NO X allowances available for use for a control period in order to meet the source's CAIR NO X emissions limitation in accor dance with 9 VAC5-140-1540.

"Continuous emission mon itoring system" or "CEMS" means the equipment required under Article 8 (9VAC5-140- 1700 et seq.) of this part to sample, analyze, measure, and provide, by means of readings recorded at least once every 15 minutes (using an automated data acquisition and handling system (DAHS)), a permanent record of nitrogen oxides emissions, stack gas volumetric flow rate, stack gas moisture content, and oxygen or carbon dioxide concentration (as applicable), in a manner co nsistent with 40 CFR Part 75. The following systems are the prin cipal types of continuous emission monitoring systems required under Article 8 (9VAC5-140-1700 et seq.) of this part: 1. A flow monitoring system, consisting of a stack flow rate monitor and an auto mated data acquisition and handling system and providi ng a permanent, continuous record of stack gas volumetric flo w rate, in standard cubic feet per hour (scfh); 2. A nitrogen oxides conce ntration monitoring system, consisting of a NO X pollutant concentration monitor and an automated data acquisitio n and handling system and providing a permanent, continuous record of NO X emissions, in parts per million (ppm); 3. A nitrogen oxides emission rate (or NO X -diluent) monitoring system, consisting of a NO X pollutant concentration monitor, a diluent gas (CO 2 or O 2 ) monitor, and an automated data acquisiti on and handling system and providing a permanent, continuous record of NO X concentration, in parts per million (ppm), diluent gas concentration, in percent CO 2 or O 2, and NO X emission rate, in pounds per million British thermal units (lb/mmBtu); 4. A moisture monitoring system, as defined in 40 CFR 75.11(b)(2) and providing a permanent, continuous record of the stack gas moisture content, in percent H 2 O;

5. A carbon dioxide monitori ng system, consisting of a CO 2 pollutant concentration monitor (or an oxygen monitor plus suitable mathematical equations from which the CO 2 concentration is derived) and an automated data acquisition and handling system and providing a permanent, continuou s record of CO 2 emissions, in percent CO 2 ; and 6. An oxygen monitoring system, consisting of an O 2 concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record of O 2 , in percent O 2 . "Control period" means the period beginning January 1 of a calendar year, except as provided in 9VAC5-140-1060 C 2, and ending on December 31 of the same year, inclusive.

"EERE proponent" means any person who owns, leases, operates or controls an energy efficiency unit or a renewable energy unit, or an EERE representative.

"EERE representative" means a party that aggregates one or more energy efficiency units or renewable energy units. An EERE representative may includ e, without limitation, a common owner of projects, an energy service company, an emission trading broker or a state or municipal entity.

"Emissions" means air pollutants exhausted from a unit or source into the atmosphere, as measured, recorded, and reported to the administrator by the CAIR-designated representative and as determined by the administrator in accordance with Article 8 (9VAC5-140-1700 et seq.) of this part.

"Energy efficiency unit" means an end-use energy efficiency project implemented after January 1, 2006, that reduces electricity consumption at a build ing or facility located in Virginia according to an energy efficiency verification protocol acceptable to the permitting authority. Projects resulting in energy savings at a CAIR NO X unit are not encompassed within this definition.

# Regulations

Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2112 "Excess emissions" means any ton of nitrogen oxides emitted by the CAIR NO X units at a CAIR NO X source during a control period that exceeds the CAIR NO X emissions limitation for the source.

"Fossil fuel" means natural gas, petroleum, coal, or any form of solid, liquid, or gaseous fuel derived from such material.

"Fossil-fuel-fired" means, with regard to a unit, combusting any amount of fossil fuel in any calendar year.

"Fuel oil" means any petroleum -based fuel (including diesel fuel or petroleum derivatives such as oil tar) and any recycled or blended petroleum product s or petroleum byproducts used as a fuel whether in a liquid, solid, or gaseous state.

"General account" means a CAIR NO X Allowance Tracking System account, established un der Article 6 (9VAC5-140- 1500 et seq.) of this part, that is not a compliance account.

"Generator" means a device that produces electricity. "Gross electrical output" means, with regard to a cogeneration unit, electricity made available for use, including any such electricity used in the power production process (which process includes, bu t is not limited to, any onsite processing or treatment of fuel combusted at the unit and any on-site emission controls).

"Heat input" means, with regard to a specified period of time, the product (in mmBtu/ time) of the gross calorific value of the fuel (in Btu/lb) divide d by 1,000,000 Btu/mmBtu and multiplied by the fuel feed rate into a combustion device (in lb of fuel/time), as measured, recorded, and reported to the administrator by the CAIR-designated representative and determined by the admini strator in accordance with Article 8 (9VAC5-140-1700 et seq.) of this part and excluding the heat derived from preheated combus tion air, recirculated flue gases, or exhaust from other sources.

"Heat input rate" means the amount of heat input (in mmBtu) divided by unit operating time (in hr) or, with regard to a specific fuel, the amount of heat input attributed to the fuel (in mmBtu) divided by the unit operating time (in hr) during which the unit combusts the fuel.

"Hg Budget Trading Program" means a multistate Hg air pollution control and emissi on reduction program approved and administered by the administrator in accordance with Part VI (9VAC5-140-5010 et seq.) of this chapter and 40 CFR 60.24(h)(6), or established by the administrator under § 111 of the Clean Air Act, as a means of reducing national Hg emissions.

"Implementation plan" means the po rtion or portions of the state implementation plan, or the most recent revision thereof, which has been approved in subpart VV of 40 CFR Part 52 by the administrator under § 110 of the CAA, or promulgated under § 110(c) of the CAA, or promulgated or approved pursuant to regulations promulgated under § 301(d) of the CAA and that implements the relevant requirements of the CAA.

"Life-of-the-unit, firm power contractual arrangement" means 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 generated by 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 30 years, including contracts that permit an election for early termination; or 3. For a period no less than 25 years or 70% of the economic useful life of the un it determined as of the time the unit is built, with op tion rights to purchase or release some portion of the nameplate capacity and associated energy generated by the unit at the end of the period. "Maximum design heat input" means the maximum amount of fuel per hour (in Btu/hr) that a unit is capable of combusting on a steady state basis as of the initial installation of the unit as specified by the manufacturer of the unit.

"Monitoring system" means any monitoring system that meets the requirements of Article 8 (9VAC5-140-1700 et seq.) of this part, includi ng a continuous emissions monitoring system, an alternativ e monitoring system, or an excepted monitoring system under 40 CFR Part 75.

"Most stringent state or federal NO X emissions limitation" means the lowest NO X emissions limitation (in lb/mmBtu) that is applicable to the unit under th e Virginia Air Pollution Control Law or federal law, reg ardless of the averaging period to which the emissions limitation applies. In cases where a unit is subject to a permit that provides for the use of multiple fuels, the primary fu el shall be used as the basis to determine the most stri ngent state or federal NO X emissions limitation. The primary fuel shall be the fuel designated in the permit as such or resulting in the lowest emissions rate.

"Nameplate capacity" means, starting from the initial installation of a generator, th e maximum electrical generating output (in MWe) that the generat or is capable of producing on a steady state basis and during continuous operation (when not restricted by seasonal or other deratings) as of such installation as specified by th e manufacturer of the generator or, starting from the completi on of any subsequent physical change in the generator resulting in an increase in the maximum electrical generating ou tput (in MWe) that the generator is capable of producing on a steady state basis and during continuous operation (w hen not restricted by seasonal or other deratings), such increased maximum amount as of such completion as specified by the person conducting the physical change.

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Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2113 "New energy efficiency/renewable energy un it set-aside budget" means the amount of tons of NO X emissions in the CAIR NO X Annual trading budget for each control period in 2009 and thereafter multiplied by1.0%, rounded to the nearest whole allowance as appropriate.

"New unit set-aside budget" means the amount of tons of NO X emissions in the CAIR NO X Annual trading budget for the control period to wh ich the new unit set-aside applies multiplied by the new un it set-aside percentage, rounded to the nearest whole allowance as appropriate.

"New unit set-aside percentage" means 4.0% for each control period in 2009 through 2013 or 1.0% for each control period in 2014 and thereafter.

"Nonattainment condition" means a condition where any area is shown by air quality mon itoring data or that is shown by an air quality impact analysis (using modeling or other methods determined by the board to be reliable) to exceed the levels allowed by the ambien t air quality standard for a given pollutant, regardless of whether such demonstration is based on current or projected emissions data.

"Oil-fired" means, for purposes of Article 5 (9VAC5-140- 1400 et seq.) of this part, combusting fuel oil for more than 15% of the annual heat input in a specified year and not qualifying as coal-fired.

"Operator" means any person who operates, controls, or supervises a CAIR NO X unit or a CAIR NO X source and shall include, but not be limited to, any holding company, utility system, or plant manager of such a unit or source.

"Owner" means any of the following persons:

1. With regard to a CAIR NO X source or a CAIR NO X unit at a source, respectively:

a. Any holder of any portion of the legal or equitable title in a CAIR NO X unit at the source or the CAIR NO X unit; b. Any holder of a leasehold interest in a CAIR NO X unit at the source or the CAIR NO X unit; or c. Any purchaser of power from a CAIR NO X unit at the source or the CAIR NO X unit under a life of the unit, firm power contractual arrangement; provided that, unless expressly provided for in a leasehold agreement, the 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) on the revenues or income from such CAIR NO X unit; or 2. With regard to any general account, any person who has an ownership interest with respect to the CAIR NO X allowances held in the general account and who is subject to the binding agreement for the CAIR-authorized account representative to represent the pe rson's ownership interest with respect to CAIR NO X allowances. "Permitting authority" means the state air pollution control agency, local agency, other state agency, or other agency authorized by the administrator to issue or revise permits to meet the requirements of the CAIR NO XAnnual Trading Program in accordance with Article 3 (9VAC5

- 140

- 1200 et seq.) of this part or, if no such agency has been so authorized, the administrator. For the Commonwealth of Virginia, the permitting authority shall be the State Air Pollution Control Board. The board will issue or rev ise permits to meet the requirements of the CAIR NO X Annual Trading Program in accordance with Article 3 (9VAC5-140-1200 et seq.) of this part.

"Potential electrical output capacity" means 33.0% 33% of a unit's maximum design heat input, divided by 3,413 Btu/kWh, divided by 1,000 kWh /MWh, and multiplied by 8,760 hr/yr.

"Receive" or "receipt of" means, when referring to the permitting authority or the administrator, to come into possession of a document, information, or correspondence (whether sent in hard copy or by authorize d electronic transmission), as indicated in an official log, or by a notation made on the document, information, or correspondence, by the permitting authority or the administrator in the regular course of business.

"Recordation," "record," or "recorded" means, with regard to CAIR NO X allowances, the movement of CAIR NO X allowances by the administrat or into or between CAIR NO X Allowance Tracking System accounts, for purposes of allocation, transfer, or deduction.

"Reference method" means any direct test method of sampling and analyzing for an air pollutant as specified in 40 CFR 75.22.

"Renewable energy unit" means an electric generator that began commercial operation after January 1, 2006, and is powered by (i) wind, solar, ocean thermal, wave, tidal, geothermal, or biomass energy; or (ii) fuel cells powered by hydrogen generated by a renewable energy source. Renewable energy does not incl ude energy derived from (i) material that has been treated or painted or derived from demolition or construction material; (ii) municipal, industrial or other multiple source solid waste; and (iii) co-firing of biomass with fossil fuels or solid waste.

"Replacement," "replace," or "replaced" means, with regard to a unit, the demolishing of a unit, or the permanent shutdown and permanent disabling of a unit, and the construction of another unit (the replacement unit) to be used instead of the demolished or shutdown unit (the replaced unit).

"Repowered" means, with regard to a unit, replacement of a coal-fired boiler with one of the following coal-fired technologies at the same source as the coal-fired boiler:

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Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2114 1. Atmospheric or pressurized fl uidized bed combustion; 2. Integrated gasification combined cycle; 3. Magnetohydrodynamics;
4. Direct and indirect coal-fired turbines; 5. Integrated gasificati on fuel cells; or 6. As determined by the administrator in consultation with the Secretary of Energy, a derivative of one or more of the technologies under subdivisions 1 through 5 of this definition and any other coal -fired technology capable of controlling multiple combustion emissions simultaneously with improved boiler or generation efficiency and with significantly greater waste redu ction relative to the performance of technology in widespread commercial use as of January 1, 2005. "Sequential use of energy" means:

1. For a topping-cycle cogeneration unit, the use of reject heat from electricity production in a useful thermal energy application or process; or 2. For a bottoming-cycle cogeneration unit, the use of reject heat from useful thermal energy application or process in electricity production.
"Serial number" means, for a CAIR NO X allowance, the unique identification number assigned to each CAIR NO X allowance by the administrator.

"Solid waste incineration unit" m eans a stationary, fossilfuel-fired boiler or stationary , fossil-fuel-fired combustion turbine that is a "so lid waste incineration unit" as defined in § 129(g)(1) of the Clean Air Act.

"Source" means all buildings , structures, or installations located in one or more contiguous or adjacent properties under common control of the same person or persons. For purposes of § 502(c) of the Clean Air Act, a "source," including a "source" with multiple units, shall be considered a single "facility."

"State" means the Commonwealth of Virginia. The term "state" shall have its conventional meaning where such meaning is clear from the context.

"State operating permit" means a permit issued under Article 5 (9VAC5-80-800 et seq.) of Part II of 9VAC5 Chapter 80 9VAC5-80 (Permits for Stationary Sources)

. "State operating permit regulations" means the regulations codified in Article 5 (9VAC5-80-800 et seq.) of Part II of 9VAC5 Chapter 8 0 9VAC5-80 (Permits for Stationary Sources)

.

"Submit or serve" means 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" or "service" deadline shall be determined by the dat e of dispatch, transmission, or mailing and not the date of receipt. "Title V operating permit" means a permit issued under Article 1 (9VAC5-80-50 et seq.) or Article 3 (9VAC5-80-360 et seq.) of Part II of 9VAC5 Chapter 80 9VAC5-80 (Permits for Stationary Sources)

.

"Title V operating permit regulations" means the regulations codified in Article 1 (9VAC5-80-50 et seq.), Article 2 (9VAC5-80-310 et seq.), Article 3 (9VAC5-80-360 et seq.), and Article 4 (9VAC5-80-710 et seq.) of Part II of 9VAC5-80 (Permits for Stationary Sources)

.

"Ton" means 2,000 pounds. For the purpose of determining compliance with the CAIR NO X emissions limitation, total tons of nitrogen oxides emissions for a control period shall be calculated as the sum of all recorded hourly emissions (or the mass equivalent of the recorded hourly emission rates) in accordance with Article 8 (9VAC5-140-1700 et seq.) of this part, but with any remaining fraction of a ton equal to or greater than 0.50 tons deemed to equal one ton and any remaining fraction of a ton less than 0.50 tons deemed to equal zero tons.

"Topping-cycle cogeneration unit" means a cogeneration unit in which the en ergy input to the unit is first used to produce useful power, including electricity, and at least some of the reject heat from the electricity production is then used to provide useful thermal energy.

"Total energy input" means, with regard to a cogeneration unit, total energy of all forms supplied to the cogeneration unit, excluding energy produced by the cogeneration unit itself. Each form of energy supplied shall be measured by the lower heating value of that form of energy calculated as follows: LHV = HHV – 10.55(W + 9H)

where: LHV = lower heating value of fuel in Btu/lb. HHV = higher heating value of fuel in Btu/lb. W = Weight percent of moisture in fuel. H = Weight percent of hydrogen in fuel. "Total energy output" means, w ith regard to a cogeneration unit, the sum of useful power and useful thermal energy produced by the cogeneration unit.

"Unit" means a stationa ry, fossil-fuel-fired boiler or combustion turbine or other st ationary, fossil-fuel-fired combustion device.

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Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2115 "Unit operating day" means a calendar day in which a unit combusts any fuel.

"Unit operating hour" or "hour of unit operation" means an hour in which a unit co mbusts any fuel.

"Useful power" means, with regard to a cogeneration unit, electricity or mechanical energy made available for use, excluding any such energy used in the power production process (which process includes, bu t is not limited to, any onsite processing or treatment of fuel combusted at the unit and any on-site emission controls).

"Useful thermal energy" m eans, with regard to a cogeneration unit, thermal energy that is: 1. Made available to an industrial or commercial process (not a power production process), excluding any heat contained in condensate return or makeup water; 2. Used in a heating application (e.g., space heating or domestic hot water heating); or 3. Used in a space cooling application (i.e., thermal energy used by an absorption chiller). "Utility power distribution system" means the portion of an electricity grid owned or operated by a utility and dedicated to delivering electricity to customers.
9VAC5-140-1060. Standard requirements.

A. Permit requirements shall be as follows:

1. The CAIR-designated representative of each CAIR NO X source required to have a Title V operating permit and each CAIR NO X unit required to have a Title V operating permit at the source shall:

a. Submit to the permitting authority a complete CAIR permit application under 9VAC5-140-1220 in accordance with the deadlines specified in 9VAC5-140- 1210; and b. Submit in a timely manner any supplemental information that the permitting authority determines is necessary in order to review a CAIR permit application and issue or deny a CAIR permit. 2. The owners and operators of each CAIR NO X source required to have a Title V operating permit and each CAIR NO X unit required to have a Title V operating permit at the source shall have a CAIR permit issued by the permitting authority under Article 3 (9 VAC5-140-1200 et seq.) of this part for the source and operate the source and the unit in compliance with such CAIR permit. 3. Except as provided in Article 9 (9VAC5-140-1800 et seq.) of this part, the owners and operators of a CAIR NO X source that is not otherwise required to have a Title V operating permit and each CAIR NO X unit that is not otherwise required to have a Title V operating permit are not required to submit a CAIR permit application, and to have a CAIR permit, under Article 3 (9VAC5-140-1200 et seq.) of this part for such CAIR NO X source and such CAIR NO Xunit. B. Monitoring, rep orting, and record keeping shall be performed as follows: 1. The owners and operators, and the CAIR-designated representative, of each CAIR NO X source and each CAIR NO X unit at the source shall comp ly with the monitoring, reporting, and recordkeeping requirements of Article 8 (9VAC5-140-1700 et seq.) of this part. 2. The emissions measurements recorded and reported in accordance with Article 8 (9VAC5-140-1700 et seq.) of this part shall be used to determine compliance by each CAIR NO X source with the CAIR NO X emissions limitation under subsection C of this section. C. Nitrogen oxides emission requirements shall be as follows:

1. As of the allowance transfer deadline for a control period, the owners and operators of each CAIR NO X source and each CAIR NO X unit at the sour ce shall hold, in the source's compliance account, CAIR NO X allowances available for complian ce deductions for the control period under 9VAC5-140-1540 A in an amount not less than the tons of total nitrogen oxides emissions for the control period from all CAIR NO X units at the source, as determined in accordance with Article 8 (9VAC5-140- 1700 et seq.) of this part.

2. A CAIR NO X unit shall be subject to the requirements under subdivision 1 of this subsection for the control period starting on the later of January 1, 2009, or the deadline for meeting th e unit's monitor certification requirements under 9VAC5-140-1700 C 1, 2, or 5 and for each control period thereafter.

3. A CAIR NO X allowance shall not be deducted, for compliance with the requirements under subdivision 1 of this subsection, for a control period in a calendar year before the year for which the CAIR NO X allowance was allocated.

4. CAIR NO X allowances shall be held in, deducted from, or transferred into or among CAIR NO X Allowance Tracking System accounts in accordance with Article 5 (9VAC5-140-1400 et seq.), Article 6 (9VAC5-140-1500 et seq.), Article 7 (9VAC5-140-1600 et seq.), and Article 9 (9VAC5-140-1800 et seq.) of this part.

5. A CAIR NO X allowance is a limited authorization to emit one ton of nitrogen oxides in accordance with the CAIR NO XAnnual Trading Program. No provision of the CAIR NO X Annual Trading Program, the CAIR permit application, the CAIR permit, or an exemption under 9VAC5-140-1050 and no provision of law shall be

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2116 construed to limit th e authority of th e state or the United States to terminate or limit such authorization.

6. A CAIR NO X allowance does not constitute a property right. 7. Upon recordation by th e administrator under Article 5 (9VAC5-140-1400 et seq.), Article 6 (9VAC5-140-1500 et seq.), Article 7 (9VAC5-140-1600 et seq.), or Article 9 (9VAC5-140-1800 et seq.) of this part, every allocation, transfer, or deduction of a CAIR NO X allowance to or from a CAIR NO X source's compliance account is incorporated automatically in any CAIR permit of the source that includes the CAIR NO X unit

. D. If a CAIR NO X source emits nitrogen oxides during any control period in excess of the CAIR NO X emissions limitation, then: 1. The owners and operators of the source and each CAIR NO Xunit at the source shall surrender the CAIR NO X allowances required for deduction under 9VAC5-140-1540 D 1 and pay any fine, pe nalty, or assessment or comply with any other remedy imposed, for the same violations, under the Clean Air Act or the Virginia Air Pollution Control Law; and 2. Each ton of such excess emissions and each day of such control period shall constitute a separate violation of this article, the Clean Air Act, and the Virginia Air Pollution Control Law. E. Recordkeeping and reporting shall be performed as follows: 1. Unless otherwise provided, the owners and operators of the CAIR NO X source and each CAIR NO X unit at the source shall keep on site at the source each of the following documents for a period of five years from the date the document is created. This period may be extended for cause, at any time before th e end of five years, in writing by the permitting au thority or the administrator.

a. The certificate of represen tation under 9VAC5-140- 1130 for the CAIR-designated representative for the source and each CAIR NO Xunit at the source and all documents that demonstrate the truth of the statements in the certificate of representation; provided that the certificate and documents shall be retained on site at the source beyond such five-year period until such documents are superseded because of the submission of a new certificate of representation under 9VAC5-140-1130 changing the CAIR-designated representative. b. All emissions monitoring information, in accordance with Article 8 (9VAC5-140 -1700 et seq.) of this part, provided that to the extent that Article 8 (9VAC5-140- 1700 et seq.) of this part pr ovides for a three-year period for recordkeeping, the three-year period shall apply. c. Copies of all reports, compliance certifications, and other submissions and all records made or required under the CAIR NO XAnnual Trading Program. d. Copies of all documents used to complete a CAIR permit application and any ot her submission under the CAIR NO X Annual Trading Program or to demonstrate compliance with the requirements of the CAIR NO X Annual Trading Program. 2. The CAIR-designated representative of a CAIR NO X source and each CAIR NO X unit at the source shall submit the reports required under the CAIR NO X Annual Trading Program, including those under Article 8 (9VAC5-140- 1700 et seq.) of this part. F. Liability shall be assign ed as follows:

1. Each CAIR NO X source and each CAIR NO X unit shall meet the requirements of the CAIR NO X Annual Trading Program. 2. Any provision of the CAIR NO X Annual Trading Program that applies to a CAIR NO X source or the CAIRdesignated representative of a CAIR NO X source shall also apply to the owners and operators of such source and of the CAIR NO Xunits at the source. 3. Any provision of the CAIR NO X Annual Trading Program that applies to a CAIR NO X unit or the CAIRdesignated representative of a CAIR NO X unit shall also apply to the owners and operators of such unit. G. No provision of the CAIR NO X Annual Trading Program, a CAIR permit application, a CAIR pe rmit, or an exemption under 9VAC5-140-1050 shall be construed as exempting or excluding the owners and operators, and the CAIR-designated representative, of a CAIR NO X source or CAIR NO X unit from compliance with any other provision of the applicable implementation plan, a state operating permit, the Virginia Air Pollution Control Law, or the Clean Air Act.

Part III NO x Ozone Season Trading Program

Article 1 CAIR NO x Ozone Season Trading Program General Provisions
9VAC5-140-2010. Purpose and authority

.

A. This part establishes general provisions and the designated representative, permitti ng, allowance, monitoring, and opt-in provisions for the State Clean Air Interstate Rule (CAIR) NO X Ozone Season Trading Program, under § 110 of the Clean Air Act and 40 CFR 51.123, as a means of mitigating interstate transport of ozone and nitrogen oxides. B. The purpose of this pa rt is not to create the CAIR NO X Ozone Season Trading Program only for CAIR NO X Ozone Season units and CAIR NO X Ozone Season sources

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2117 geographically located within the borders of the Commonwealth of Virginia. Upon approval by EPA in accordance with 40 CFR 51.123 (o)(1) or (2), qualifying CAIR NO X Ozone Season units and CAIR NO X Ozone Season sources within the Comm onwealth will become full participants in the EPA-admin istered regional CAIR NO X Ozone Season Trading Program, which will include CAIR NO X Ozone Season units and CAIR NO X Ozone Season sources permitted by auth orities in all other states that are participating in th e regional CAIR NO X Ozone Season Trading Program.

C. This part should not be interpreted to limit the CAIR NO X Ozone Season Trading Program to Virginia CAIR NO X Ozone Season units and CAIR NO X Ozone Season sources, which would be contrary to the intention that CAIR NO X Ozone Season units and CAIR NO X Ozone Season sources covered by CAIR programs of other states approved in accordance with 40 CFR 51.123 (o)(1) or (2) or by the CAIR Federal Implementation Plan (subparts AA through II of 40 CFR Part 97) may trade allowances with CAIR NO X Ozone Season units and CAIR NO X Ozone Season sources in the Commonwealth. While the CAIR NO X Ozone Season Trading Program must include CAIR NO X Ozone Season units and CAIR NO X Ozone Season sources and permitting authorities beyond the bo rders of the Commonwealth, the permitting authority for Virg inia (the State Air Pollution Control Board) has no auth ority to ensure compliance with this part by any permitting au thority, person or entity outside the Commonwealth.

D. The board has the authority under the Code of Virginia to regulate the allocations of allowances, issuance of the budget permits, the administration of the opt-in provisions and other duties assigned to the permitting authority only for CAIR NO X Ozone Season units and CAIR NO X Ozone Season sources in Virginia. The board authorizes the administrator to assist the board in implementing the CAIR NO X Ozone Season Trading Program by carrying out the functions set forth for the administrator in this part.

9VAC5-140-2020 . Definitions.

A. As used in this part, all words or terms not defined here shall have the meaning given them in 9VAC5 Chapter 10 (9VAC5

- 10), 9VAC5-10 (General Definitions) unless otherwise required by context .

B. For the purpose of this part and any related use, the words or terms shall have the meaning given them in this paragraph subsection

.

"Account number" means the identification number given by the administrator to each CAIR NO XOzone Season Allowance Tracking System account.

"Acid Rain emissions limitation" means a limitation on emissions of sulfur dioxide or nitrogen oxides under the Acid Rain Program. "Acid Rain Program" means a multistate sulfur dioxide and nitrogen oxides air pollution control and emission reduction program established by the administrator under Title IV of the CAA and 40 CFR Parts 72 through 78.

"Administrator" means the ad ministrator of the United States Environmental Prot ection Agency or the administrator's duly authorized representative.

"Allocate" or "allocation" means, with regard to CAIR NO X Ozone Season allowances, the determin ation by a permitting authority or the administrator of the amount of such CAIR NO X Ozone Season allowances to be initially credited to a CAIR NO X Ozone Season unit, a new unit set-aside, a new energy efficiency/renewable energy set-aside, or other entity.

"Allocation year" means the year in which allowance allocations are calculated for a future year.

"Allowance transfer deadline" means, for a control period, midnight of November 30 (if it is a business day), or midnight of the first business daythereafter (if November 30 is not a business day), immediately following the control period and is the deadline by which a CAIR NO X Ozone Season allowance transfer must be submitted for recordation in a CAIR NO X Ozone Season source's compliance account in order to be used to meet the source's CAIR NO X Ozone Season emissions limitation for su ch control period in accordance with 9VAC5-140-2540.

"Alternate CAIR-designated representative" means, for a CAIR NO X Ozone Season source and each CAIR NO X Ozone Season unit at the source, the natural person who is authorized by the owners and operators of the source and all such units at the source, in accordance with Article 2 (9VAC5-140-2100 et seq.) and Article 9 (9VAC5-140-2800 et seq.) of this part, to act on behalf of the CAIR-designated representative in matters pertain ing to the CAIR NO X Ozone Season Trading Program. If the CAIR NO X Ozone Season source is also a CAIR NO X source, then this natural person shall be the same person as the alternate CAIR-designated representative under the CAIR NO X Annual Trading Program. If the CAIR NO X Ozone Season source is also a CAIR SO 2 source, then this natural person shall be the same person as the alternate CAIR-designated representative under the CAIR SO 2 Trading Program. If the CAIR NO X Ozone Season source is also subject to th e Acid Rain Program, then this natural person shall be the same person as the alternate designated representative under the Acid Rain Program. If the CAIR NO X Ozone Season source is also subject to the Hg Budget Trading Program , then this natural person shall be the same person as the alternate Hg designated representative under the Hg Budget Trading Program.

"Automated data acquisition and handling system" or "DAHS" means that component of the continuous emission monitoring system, or other emissions monitoring system approved for use under Article 8 (9VAC5-140-2700 et seq.)

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Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2118 of this part, designed to inte rpret and conve rt individual output signals from pollutant concentration monitors, flow monitors, diluent gas monitors, and other component parts of the monitoring system to produ ce a continuous record of the measured parameters in the measurement units required by Article 8 (9VAC5-140- 2700 et seq.) of this part.

"Biomass" means:

1. Any organic material grown for the purpose of being converted to energy; 2. Any organic byproduct of agriculture that can be converted into energy; or 3. Any material that can be converted into energy and is nonmerchantable for other purposes, that is segregated from other nonmerchantable material, and that is:

a. A forest-related organic resource, including mill residues, precommercial thinnings, slash, brush, or byproduct from conversion of trees to merchantable material; or b. A wood material, including pallets, crates, dunnage, manufacturing and construction materials (other than pressure-treated, chemically-treated, or painted wood products), and landscape or ri ght-of-way tree trimmings. "Biomass energy" means energy derived from the combustion or electro-chemical reaction (as with a fuel cell) of hydrocarbon materials of a biogenic origin using a solid, liquid or gaseous fuel. Biomass fu el materials include, but are not limited to, animal wastes (e.g., manure) and clean plant materials (e.g. wood chips, wast e paper and crop wastes). Biomass fuels exclude products that have emissions that include heavy metals and other neurotoxins (e.g., municipal solid wastes). Biomass fuel materials may be converted to a gaseous fuel, such as landfills (i.e., landfill gas) or waste treatment facilities (i.e., digester gas), or to liquid fuels (e.g., biodiesel). To be considered a biomass facility, the facility must (i) employ maximum achi evable control technology and continuous emission stack monitors for all chemical emissions of concern to human health and (ii) be listed in one of the following categories: anaerobic digestion systems operating on animal or plant wastes, methane gas, combustion of clean wood, bark or other plant material; or on combustion of fuels derived entirely from processing of clean wood, bark, or other plant or animal material, including processing by gasification, pyrolysis, fermentation, distillation, or densification.

"Boiler" means an enclosed fossil- or other-fuel-fired combustion device used to produce heat and to transfer heat to recirculating water, steam, or other medium.

"Bottoming-cycle cogeneration unit" means a cogeneration unit in which the en ergy input to the unit is first used to produce useful thermal energy and at least some of the reject heat from the useful thermal energy application or process is then used for electricity production.

"CAIR-authorized account representative" means, with regard to a general account, a responsible natural person who is authorized, in accordan ce with Article 2 (9VAC5-140-2100 et seq.), Article 6 (9VAC5-140-2500 et seq.) and Article 9 (9VAC5-140-2800 et seq.) of this part, to transfer and otherwise dispose of CAIR NO X Ozone Season allowances held in the general account and, with regard to a compliance account, the CAIR-designated representative of the source.

"CAIR-designated representative" means, for a CAIR NO X Ozone Season source and each CAIR NO X Ozone Season unit at the source, the natural person who is authorized by the owners and operators of the source and all such units at the source, in accordance with Article 2 (9VAC5-140-2100 et seq.) and Article 9 (9VAC5-140-2800 et seq.) of this part, to represent and legally bind eac h owner and operator in matters pertaining to the CAIR NO X Ozone Season Trading Program. If the CAIR NO X Ozone Season source is also a CAIR NO X source, then this natural person shall be the same person as the CAIR-designated repr esentative under the CAIR NO X Annual Trading Program. If the CAIR NO X Ozone Season source is also a CAIR SO 2 source, then this natural person shall be the same person as the CAIR-designated representative under the CAIR SO 2 Trading Program. If the CAIR NO X Ozone Season source is also subject to the Acid Rain Program, then this natural person shall be the same person as the designated representative under the Acid Rain Program. If the CAIR NO X Ozone Season source is also subject to the Hg Budget Trading Program, then this natural person shall be the same person as the Hg designated representative under the Hg Budget Trading Program.

"CAIR NO X Annual Trading Program" means a multistate nitrogen oxides air pollution control and emission reduction program approved and administered by the administrator in accordance with Part II, subparts AA through II of 40 CFR Part 96, (9VAC5-140-1010 et seq.) of this chapter and 40 CFR 51.123 (o) (1) or (2) or established by the administrator in accordance with subparts AA through II of 40 CFR Part 97 and 40 CFR 51.123 (p) and 52.35, as a means of mitigating interstate transport of fine particul ates and nitrogen oxides.

"CAIR NO X Ozone Season allowance" means a limited authorization issued by a pe rmitting authority or the administrator under Article 5 (9VAC5-140-2400 et seq.) of this part, provisions of an implementation plan that are approved under 40 CFR 51.123(aa)(1) or (2) and (bb)(1), (bb)(2), (dd), or (ee), or under subpart EEEE of 40 CFR Part 97 or 40 CFR 97.388, to emit one ton of nitrogen oxides during a control period of the specified calendar year for which the authorization is allocated or of any calendar year thereafter under the CAIR NO X Ozone Season Trading Program or a limited authorization issued by a permitting authority for a control period during 2003 through 2008 under

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2119 the NO X Budget Trading Program under Part I (9VAC5-140- 10 et seq.) of this chapter or in accordance with 40 CFR 51.121(p) to emit one ton of nitrogen oxides during a control period, provided that the provision in 40 CFR 51.121(b)(2) (ii) (E) shall not be used in appl ying this definition and the limited authorization shall not have been used to meet the allowance-holding requirement under the NOx Budget Trading Program. An authorization to emit nitrogen oxides that is not issued under Article 5 (9VAC5-140-2400 et seq.) of this part, provisions of an implementation pl an approved under 40 CFR 51.123(aa)(1) or (2) and (bb) (1), (bb) (2), (dd), or (ee) or subpart EEEE of 40 CFR Part 97 or 40 CFR 97.388 or under the NO X Budget Trading Program as described in the prior sentence shall not be a CAIR NO X Ozone Season allowance. No provision of the CAIR NO X Ozone Season Program, the CAIR permit app lication, the CAIR permit, or an exemption under 9VAC5-140-2050 and no provision of law shall be construed to limit the authority of the United States or the board to terminate or limit such authorization, which does not constitute a property right.

"CAIR NO X Ozone Season allowance deduction" or "deduct CAIR NO X Ozone Season allowances" means the permanent withdrawal of CAIR NO X Ozone Season allowances by the administrator from a compliance account, e.g., in order to account for a specified number of tons of total nitrogen oxides emissions from all CAIR NO X Ozone Season units at a CAIR NO X Ozone Season source for a control period, determined in accordance with Article 8 (9VAC5-140-2700 et seq.) of this part, or to account for excess emissions.

"CAIR NO X Ozone Season Allowance Tracking System" means the system by which the administrator records allocations, deductions, and transfers of CAIR NO X Ozone Season allowances under the CAIR NO XOzone Season Trading Program. Such allowances will be allocated, held, deducted, or transferred only as whole allowances.

"CAIR NO X Ozone Season Allowance Tracking System account" means an account in the CAIR NO X Ozone Season Allowance Tracking System est ablished by the administrator for purposes of recording the allo cation, holding, transferring, or deducting of CAIR NO X Ozone Season allowances.

"CAIR NO X Ozone Season allowances held" or "hold CAIR NO X Ozone Season allowances" means the CAIR NO X Ozone Season allowances recorded by the administrator, or submitted to the administrator for recordation, in accordance with Article 6 (9VAC5-140-2500 et seq.), Article 7 (9VAC5- 140-2600 et seq.), and Article 9 (9VAC5-140-2800 et seq.) of this part, in a CAIR NO X Ozone Season Allowance Tracking System account.

"CAIR NO X Ozone Season core trading budget" means the amount of tons of NO X emissions in the CAIR NO X Ozone Season trading budget for the control period minus the amount of tons of NO Xemissions under subdivision 1 of the definition of new unit set-aside budget and the new energy efficiency/renewable energy unit set-aside budget.

"CAIR NO X Ozone Season emissions limitation" means, for a CAIR NO X Ozone Season source, the tonnage equivalent, in NO X emissions in a control period, of the CAIR NO X Ozone Season allowances available for deduction for the source under 9VAC5-140-2540 A and B for the control period.

"CAIR NO X Ozone Season source" means a source that includes one or more CAIR NO X Ozone Season units.

"CAIR NO X Ozone Season trading budget" means the total number of NO X tons set forth in 9VAC5-140-2400 and apportioned to all CAIR NO X Ozone Season units and energy efficiency/renewable energy units in accordance with the CAIR NO X Ozone Trading Program, for use in a given control period.

"CAIR NO X Ozone Season Trading Program" means a multistate nitrogen oxides air po llution control and emission reduction program approved and administered by the administrator in accordance with this part, subparts AAAA through IIII of 40 CFR Part 96, and 40 CFR 51.123 (aa)(1) or (2) and (bb)(1), (bb)(2), or (dd) or established by the administrator in accordance with subparts AAAA through IIII of 40 CFR Part 97 and 40 CFR 51.123(ee) and 52.35, as a means of mitigating interstate transpo rt of ozone and nitrogen oxides.

"CAIR NO X Ozone Season unit" means a unit that is subject to the CAIR NO X Ozone Season Trading Program under 9VAC5-140-2040 and, except for purposes of 9VAC5-140- 2050 and Article 5 (9VAC5-140- 2400 et seq.) of this part, a CAIR NO X Ozone Season opt-in unit under Article 9 (9VAC5-140-2800 et seq.) of this part.

"CAIR NO X source" means a source that is subject to the CAIR NO XAnnual Trading Program.

"CAIR permit" means the terms and conditions in a Title V operating permit or state operating permit, issued by the permitting authority unde r Article 3 (9VAC5-140-2200 et seq.) of this part, including any permit revisions, specifying the CAIR NO XOzone Season Trading Program requirements applicable to a CAIR NO XOzone Season source, to each CAIR NO X Ozone Season unit at the source, and to the owners and operators and the CA IR-designated representative of the source and each such unit.

"CAIR SO 2 source" means a source that is subject to the CAIR SO 2 Trading Program.

"CAIR SO 2 Trading Program" means a multistate sulfur dioxide air pollution control and emission reduction program approved and administered by th e administrator in accordance with Part IV (9VAC5-140-3010 et seq.) of this chapter, subparts AAA through IIII of 40 CFR Part 96, and 40 CFR 51.124 (o)(1) or (2) or established by the administrator in accordance with subparts AAA through III of 40 CFR Part 97

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2120 and 40 CFR 51.124(r) and 52.36, as a means of mitigating interstate transport of fine particu lates and sulfur dioxide.

"Clean Air Act" or "CAA" means the Clean Air Act, 42 USC § 7401 et seq.

"Coal" means any solid fuel classified as anthracite, bituminous, subbituminous, or lignite.

"Coal-derived fuel" means any fuel (whether in a solid, liquid, or gaseous state) produced by the mechanical, thermal, or chemical processing of coal.

"Coal-fired" means:

1. Except for purposes of Article 5 (9VAC5-140-2400 etseq.) of this part, combusting any amount of coal or coalderived fuel, alone or in combination with any amount of any other fuel, during any year; or 2. For purposes of Article 5 (9VAC5-140-2400 et seq.) of this part, combusting any amount of coal or coal-derived fuel, alone or in combination with any amount of any other fuel, during a specified year. "Cogeneration unit" means a stationary, fossil-fuel-fired boiler or stationary, fossil-fuel-fired combustion turbine: 1. Having equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, or cooling purposes through the sequential use of energy; and 2. Producing during the 12-m onth period starting on the date the unit first produces electricity and during any calendar year after the calendar year in which the unit first produces electricity:

a. For a topping-cycle cogeneration unit, : (1) Useful thermal energy no t less than 5.0% of total energy output; and (2) Useful power that, when added to one-half of useful thermal energy produced, is not less then 42.5% of total energy input, if useful thermal energy produced is 15% or more of total energy output, or not less than 45% of total energy input, if useful th ermal energy produced is less than 15% of total energy output. b. For a bottoming-cycle cogene ration unit, useful power not less than 45% of total energy input. ; and 3. Provided that the total energ y input under subdivisions 2 a (2) and 2 b of this definiti on shall equal the unit’s total energy input from all fuel except biomass if the unit is a boiler.

"Combustion turbine" means:

1. An enclosed device comprising 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; and 2. If the enclosed device under subdivision 1 of this definition is combined cycle, any associated duct burner, heat recovery steam generator, and steam turbine. "Commence commercial operation" means, with regard to a unit: 1. To have begun to produce steam, gas, or other heated medium used to generate electricity for sale or use, including test generation, ex cept as provided in 9VAC5- 140-2050 and subdivision 8 of 9VAC5-140-2840.

a. For a unit that is a CAIR NO X Ozone Season unit under 9VAC50-140-2040 on the later of November 15, 1990, or the date the unit commences commercial operation as defined in subdivision 1 of this definition and that subsequently undergoes a physical change (other than replacement of the unit by a unit at the same source), such date shall remain the date of commencement of commercial operation of the unit which shall continue to be treated as the same unit.

b. For a unit that is a CAIR NO XOzone Season unit under 9VAC5-140-2040 the later of November 15 1990, or on the date the unit commences commercial operation as defined in subdivision 1 of this definition and that is subsequently replaced by a unit at the same source (e.g., repowered), such date shall remain the replaced unit's date of commencement of commercial operation, and the replacement unit shall be treated as a separate unit with a separate date for commencement of commercial operation as defined in subdivision 1 or 2 of this definition as appropriate. 2. Notwithstanding subdivision 1 of this definition and except as provided in 9VAC5-140-2050, for a unit that is not a CAIR NO X Ozone Season unit under 9VAC5-140- 2040 on the later of Novemb er 15, 1990, or the date the unit commences commercial operation as defined in subdivision 1 of this definition, the unit's date for commencement of commercial operation shall be the date on which the unit becomes a CAIR NO X Ozone Season unit under 9VAC5-140-2040.

a. For a unit with a date for commencement of commercial operation as defined in subdivision 2 of this definition and that subseque ntly undergoes a physical change (other than replacement of the unit by a unit at the same source), such date shall remain the date of commencement of commercial operation of the unit, which shall continue to be treated as the same unit.

b. For a unit with a date for commencement of commercial operation as defined in subdivision 2 of this definition and that is subsequ ently replaced by a unit at the same source (e.g., repowered), such date shall remain the replaced unit's date of commencement of commercial operation, and the replacement unit shall be treated as a separate unit with a separate date for commencement of

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2121 commercial operation as defined in subdivision 1 or 2 of this definition as appropriate. "Commence commercial operation" means, with regard to an existing nonelectric generating unit that serves a generator, to have begun to produce steam, gas, or other heated medium used to generate electricity fo r sale or use, including test generation. For a unit that is a CAIR NO X Ozone Season unit under 9VAC5-140-2040 C 2 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, reconstr ucted, or repowered. Except as provided in Article 9 (9VAC5- 140-2800 et seq.) of this part, for a unit that is not a CAIR NO X Ozone Season unit under 9VAC5-140-2040 C 2 on the date the unit commences commercial operation, the date the unit becomes a CAIR NO X Ozone Season unit under 9VAC5-140-2040 C 2 shall be the unit's date of commencement of commercial operation.

"Commence operation" means:

1. 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 subdivision 8 of 9VAC5-140-2840. 2. For a unit that undergoes a physical change (other than replacement of the unit by a unit at the same source) after the date the unit commences operation as defined in subdivision 1 of this definitio n, such date shall remain the date of commencement of operation of the unit, which shall continue to be treatedas the same unit. 3. For a unit that is replaced by a unit at the same source (e.g., repowered) after the date the unit commences operation as defined in subdivision 1 of this definition, such date shall remain the replaced unit's date of commencement of operation, and the replacement unit shall be treated as a separate unit with a separate date for commencement of operation as defined in subdivisions 1, 2, or 3 of this definition as ap propriate, except as provided in subdivision 8 of 9VAC5-140-2840. "Commence operation" means, with regard to an existing nonelectric generating unit, to have begun any mechanical, chemical, or electronic process, including, with regard to a unit, start-up of a unit's combustion chamber. For a unit that is a CAIR NO X Ozone Season unit under 9VAC5-140-2040 C 2 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 m odified, reconstructed, or repowered. Except as provided in Article 9 (9VAC5-140- 2800 et seq.) of this part, for a unit that is not a CAIR NO X Ozone Season unit under 9VAC5-140-2040 C 2 on the date of commencement of operation, the date the unit becomes a CAIR NO X Ozone Season unit under 9VAC5-140-2040 C 2 shall be the unit's date of commencement of operation. "Common stack" means a single flue through which emissions from 2 or more units are exhausted.

"Compliance account" means a CAIR NO XOzone Season Allowance Tracking System account, established by the administrator for a CAIR NO X Ozone Season source under Article 6 (9VAC5-140-2500 et seq. ) or Article 9 (9VAC5- 140-2800 et seq.) of this part, in which any CAIR NO X Ozone Season allowance allocations for the CAIR NO X Ozone Season units at the source are initially recorded and in which are held any CAIR NO X Ozone Season allowances available for use for a control period in order to meet the source's CAIR NO XOzone Season emissions limitation in accordance with 9VAC5-140-2540.

"Continuous emission mon itoring system" or "CEMS" means the equipment required under Article 8 (9VAC5-140- 2700 et seq.) of this part to sample, analyze, measure, and provide, by means of readings recorded at least once every 15 minutes (using an automated data acquisition and handling system (DAHS)), a permanent record of nitrogen oxides emissions, stack gas volumetric flow rate, stack gas moisture content, and oxygen or carbon dioxide concentration (as applicable), in a manner co nsistent with 40 CFR Part 75. The following systems are the prin cipal types of continuous emission monitoring systems required under Article 8 (9VAC5-140-2700 et seq.) of this part: 1. A flow monitoring system, consisting of a stack flow rate monitor and an auto mated data acquisition and handling system and providi ng a permanent, continuous record of stack gas volumetric flo w rate, in standard cubic feet per hour (scfh); 2. A nitrogen oxides conce ntration monitoring system, consisting of a NO X pollutant concentration monitor and an automated data acquisitio n and handling system and providing a permanent, continuous record of NO X emissions, in parts per million (ppm); 3. A nitrogen oxides emission rate (or NO X -diluent) monitoring system, consisting of a NO X pollutant concentration monitor, a diluent gas (CO 2 or O 2 ) monitor, and an automated data acquisiti on and handling system and providing a permanent, continuous record of NO X concentration, in parts per million (ppm), diluent gas concentration, in percent CO 2 or O 2 , and NO X emission rate, in pounds per million British thermal units (lb/mmBtu); 4. A moisture monitoring system, as defined in 40 CFR 75.11(b)(2) and providing a permanent, continuous record of the stack gas moisture content, in percent H 2 O;

5. A carbon dioxide monitori ng system, consisting of a CO 2 pollutant concentration monitor (or an oxygen monitor plus suitable mathematical equations from which the CO 2 concentration is derived) and an automated data acquisition and handling system and providing a

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Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2122 permanent, continuou s record of CO 2 emissions, in percent CO 2 ; and 6. An oxygen monitoring system, consisting of an O 2 concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record of O 2 , in percent O 2 . "Control period" or "ozone season" means the period beginning May 1 of a calendar year, except as provided in 9VAC5-140-2060 C 2, and ending on September 30 of the same year, inclusive.

"EERE proponent" means any person who owns, leases, operates or controls an energy efficiency unit or a renewable energy unit, or an EERE representative.

"EERE representative" means a party that aggregates one or more energy efficiency units or renewable energy units. An EERE representative may includ e, without limitation, a common owner of projects, an energy service company, an emission trading broker or a state or municipal entity.

"Electricity for sale under firm contract to the grid" means electricity for sale where the capacity in volved is intended to be available at all times during the period covered by a guaranteed commitment to deliver, even under adverse conditions.

"Emissions" means air pollutants exhausted from a unit or source into the atmosphere, as measured, recorded, and reported to the administrator by the CAIR-designated representative and as determined by the administrator in accordance with Article 8 (9VAC5-140-2700 et seq.) of this part.

"Energy efficiency unit" means an end-use energy efficiency project implemented after January 1, 2006, that reduces electricity consumption at a build ing or facility located in Virginia according to an energy efficiency verification protocol acceptable to the permitting authority. Projects resulting in energy savings at a CAIR NO X Ozone Season unit are not encompassed within this definition.

"Excess emissions" means any ton of nitrogen oxides emitted by the CAIR NO X Ozone Season units at a CAIR NO X Ozone Season source during a control period that exceeds the CAIR NO X Ozone Season emissions limitation for the source.

"Existing nonelectric generati ng unit" means a source of NO X emissions that is a CAIR NO X Ozone Season unit under 9VAC5-140-2040 C 1 and listed in 9VAC5-140-2430.

"Fossil fuel" means natural gas, petroleum, coal, or any form of solid, liquid, or gaseous fuel derived from such material.

"Fossil-fuel-fired" means, with regard to a unit, combusting any amount of fossil fuel in any calendar year. "Fossil fuel-fired" means, with regard to an existing nonelectric generating unit: 1. For units that commenced operation before January 1, 1996, the combustion of fossil fuel, alone or in combination with any other fuel, where fossil fuel actually combusted comprises more than 50% of the annual heat input on a Btu basis during 1995 or, if a unit had no heat input in 1995, du ring the last year of op eration of the unit prior to 1995; 2. For units that commenced operation on or after January 1, 1996, and before January 1, 1997, the combustion of fossil fuel, alone or in combin ation with any other fuel, where fossil fuel actually combusted comprises more than 50% of the annual heat input on a Btu basis during 1996;

or 3. For units that commence operation on or after January 1, 1997:

a. The combustion of fossil fuel , alone or in combination with any other fuel, where fossil fuel actually combusted comprises more than 50% of the annual heat input on a Btu basis during any year; or

b. The combustion of fossil fuel, alone or in combination with any other fuel, where fossil fuel is projected to comprise more than 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. "Fuel oil" means any petroleum -based fuel (including diesel fuel or petroleum derivatives such as oil tar) and any recycled or blended petroleum products or petroleum by-products used as a fuel whether in a liquid, solid, or gaseous state.

"General account" means a NO X Ozone Season Allowance Tracking System account, estab lished under Article 6 (9VAC5-140-2500 et seq.) of this part, that is not a compliance account.

"Generator" means a device that produces electricity. "Gross electrical output" means, with regard to a cogeneration unit, electricity made available for use, including any such electricity used in the power production process (which process includes, bu t is not limited to, any onsite processing or treatment of fuel combusted at the unit and any on-site emission controls).

"Heat input" means, with regard to a specified period of time, the product (in mmBtu/ time) of the gross calorific value of the fuel (in Btu/lb) divide d by 1,000,000 Btu/mmBtu and multiplied by the fuel feed rate into a combustion device (in lb of fuel/time), as measured, recorded, and reported to the administrator by the CAIR-designated representative and determined by the admini strator in accordance with Article 8 (9VAC5-140-2700 et seq.) of this part and excluding the heat

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Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2123 derived from preheated combus tion air, recirculated flue gases, or exhaust from other sources.

"Heat input rate" means the amount of heat input (in mmBtu) divided by unit operating time (in hr) or, with regard to a specific fuel, the amount of heat input attributed to the fuel (in mmBtu) divided by the unit operating time (in hr) during which the unit combusts the fuel.

"Hg Budget Trading Program" means a multistate Hg air pollution control and emissi on reduction program approved and administered by the administrator in accordance with Part VI (9VAC5-140-5010 et seq.) of this chapter and 40 CFR 60.24(h)(6), or established by the administrator under § 111 of the Clean Air Act, as a means of reducing national Hg emissions.

"Implementation plan" means the po rtion or portions of the state implementation plan, or the most recent revision thereof, which has been approved in subpart VV of 40 CFR Part 52 by the administrator under § 110 of the CAA, or promulgated under § 110(c) of the CAA, or promulgated or approved pursuant to regulations promulgated under § 301(d) of the CAA and which implements th e relevant requirements of the CAA.

"Life of the unit, firm power contractual arrangement" means 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 generated by 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 30 years, including contracts that permit an election for early termination; or 3. For a period no less than 25 years or 70.0% 70% of the economic useful life of the un it determined as of the time the unit is built, with op tion rights to purchase or release some portion of the nameplate capacity and associated energy generated by the unit at the end of the period. "Maximum design heat input" means the maximum amount of fuel per hour (in Btu/hr) that a unit is capable of combusting on a steady state basis as of the initial installation of the unit as specified by the manufacturer of the unit.

"Monitoring system" means any monitoring system that meets the requirements of Article 8 (9VAC5-140-2700 et seq.) of this part, includi ng a continuous emissions monitoring system, an alternativ e monitoring system, or an excepted monitoring system under 40 CFR Part 75.

"Most stringent state or federal NO X emissions limitation" means the lowest NO X emissions limitation (in lb/mmBtu) that is applicable to the unit under th e Virginia Air Pollution Control Law or federal law, reg ardless of the averaging period to which the emissions limitation applies. In cases where a unit is subject to a permit which provides for the use of multiple fuels, the primary fuel shall be used as the basis to determine the most stri ngent state or federal NO X emissions limitation. The primary fuel shall be the fuel designated in the permit as such or resulting in the lowest emissions rate.

"Nameplate capacity" means, starting from the initial installation of a generator, th e maximum electrical generating output (in MWe) that the generat or is capable of producing on a steady state basis and during continuous operation (when not restricted by seasonal or other deratings) as of such installation as specified by th e manufacturer of the generator or, starting from the completi on of any subsequent physical change in the generator resulting in an increase in the maximum electrical generating ou tput (in MWe) that the generator is capable of producing on a steady state basis and during continuous operation (w hen not restricted by seasonal or other deratings), such increased maximum amount as of such installation as specified by the person conducting the physical change.

"New energy efficiency/renewable energy un it set-aside budget" means the amount of tons of NO Xemissions in the CAIR NO X Ozone Season trading budget for each control period in 2009 and thereafter multiplied by 1.0%, rounded to the nearest whole allowance as appropriate.

"New nonelectric generating unit" means a source of NO X emissions that is a CAIR NO X Ozone Season unit under 9VAC5-140-2040 C 2.

"New unit set-aside budget" means the sum of:

1. The amount of tons of NO Xemissions in the CAIR NO X Ozone Season trading budget for the control period to which the new unit set-aside app lies multiplied by the new unit set-aside percentage, ro unded to the nearest whole allowance as appropriate.

2. 736 tons of NO X emissions for each control period. "New unit set-aside percentage" means 4.0% for each control period in 2009 through 2013 or 1.0 % for each control period in 2014 and thereafter.

"Nonelectric generating unit" means a source of NO X emissions that is a CAIR NO X Ozone Season unit under 9VAC5-140-2040 C but is not covered under 9VAC5-140- 2040 A.

"Nonattainment condition" means a condition where any area is shown by air quality mon itoring data or which is shown by an air quality imp act analysis (using modeling or other methods determined by the board to be reliable) to exceed the levels allowed by the ambient air quality standard for a given pollutant, regardless of whether such demonstration is based on curren t or projected emissions data.

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2124 "Oil-fired" means, for purposes of Article 5 (9VAC5-140- 2400 et seq.) of this part, combusting fuel oil for more than 15.0% 15% of the annual heat input in a specified year and not qualifying as coal-fired.

"Operator" means any person who operates, controls, or supervises a CAIR NO X Ozone Season unit or a CAIR NO X Ozone Season source and shall include, but not be limited to, any holding company, utility system, or plant manager of such a unit or source.

"Owner" means any of the following persons:

1. With regard to a CAIR NO X Ozone Season source or a CAIR NO X Ozone Season unit at a source, respectively:

a. Any holder of any portion of the legal or equitable title in a CAIR NO X Ozone Season unit at the source or the CAIR NO XOzone Season unit; b. Any holder of a leasehold interest in a CAIR NO X Ozone Season unit at the source or the CAIR NO X Ozone Season unit; or c. Any purchaser of power from a CAIR NO X Ozone Season unit at the source or the CAIR NO X Ozone Season unit under a life of the unit, firm power contractual arrangement; provide d that, 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 i ndirectly) on the revenues or income from such CAIR NO X Ozone Season unit; or 2. With regard to any general account, any person who has an ownership interest with respect to the CAIR NO X Ozone Season allowances held in the general account and who is subject to the binding agreement for the CAIR-authorized account representative to represent the person's ownership interest with respect to CAIR NO X Ozone Season allowances. "Permitting authority" means the state air pollution control agency, local agency, other state agency, or other agency authorized by the administrator to issue or revise permits to meet the requirements of the CAIR NO X Ozone Season Trading Program in accordance with Article 3 (9VAC5

- 140

- 2200 et seq.) of this part or, if no such agency has been so authorized, the administrato r. For the Commonwealth of Virginia, the permitting authority shall be the State Air Pollution Control Board. The board will issue or revise permits to meet the requirements of the CAIR NO X Ozone Season Trading Program in accordance with Article 3 (9VAC5-140-2200 et seq.) of this part.

"Potential electrical output capacity" means 33.0% 33% of a unit's maximum design heat input, divided by 3,413 Btu/kWh, divided by 1,000 kWh /MWh, and multiplied by 8,760 hr/yr. "Receive or receipt of" means, when referring to the permitting authority or the administrator, to come into possession of a document, information, or correspondence (whether sent in hard copy or by authorize d electronic transmission), as indicated in an official log, or by a notation made on the document, information, or correspondence, by the permitting authority or the administrator in the regular course of business.

"Recordation," "record," or "recorded" means, with regard to CAIR NO X Ozone Season allowances, the movement of CAIR NO X Ozone Season allowances by the administrator into or between CAIR NO X Ozone Season Allowance Tracking System accounts, for purposes of allocation, transfer, or deduction.

"Reference method" means any direct test method of sampling and analyzing for an air pollutant as specified in 40 CFR 75.22.

"Renewable energy unit" means an electric generator that began commercial operation after January 1, 2006, and is powered by (i) wind, solar, ocean thermal, wave, tidal, geothermal, or biomass energy, or (ii) fuel cells powered by hydrogen generated by a renewable energy source. Renewable energy does not incl ude energy derived from: (i) material that has been treated or painted or derived from demolition or construction material; (ii) municipal, industrial or other multiple source solid waste; and (iii) co-firing of biomass with fossil fuels or solid waste.

"Replacement," "replace," or "replaced" means, with regard to a unit, the demolishing of a unit, or the permanent shutdown and permanent disabling of a unit, and the construction of another unit (the replacement unit) to be used instead of the demolished or shutdown unit (the replaced unit).

"Repowered" means, with regard to a unit, replacement of a coal-fired boiler with one of the following coal-fired technologies at the same source as the coal-fired boiler: 1. Atmospheric or pressurized fl uidized bed combustion; 2. Integrated gasification combined cycle; 3. Magnetohydrodynamics;
4. Direct and indirect coal-fired turbines; 5. Integrated gasificati on fuel cells; or 6. As determined by the administrator in consultation with the Secretary of Energy, a derivative of one or more of the technologies under subdivisions 1 through 5 of this definition and any other coal -fired technology capable of controlling multiple combustion emissions simultaneously with improved boiler or generation efficiency and with significantly greater waste redu ction relative to the performance of technology in widespread commercial use as of January 1, 2005.

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Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2125 "Sequential use of energy" means:

1. For a topping-cycle cogeneration unit, the use of reject heat from electricity production in a useful thermal energy application or process; or 2. For a bottoming-cycle cogeneration unit, the use of reject heat from useful thermal energy application or process in electricity production.
"Serial number" means, for a CAIR NO X Ozone Season allowance, the unique identification number assigned to each CAIR NO XOzone Season allowance by the administrator.

"Solid waste incineration unit" m eans a stationary, fossilfuel-fired boiler or stationary , fossil-fuel-fired combustion turbine that is a "so lid waste incineration unit" as defined in § 129(g)(1) of the Clean Air Act.

"Source" means all buildings , structures, or installations located in one or more contiguous or adjacent properties under common control of the same person or persons. For purposes of § 502(c) of the Clean Air Act, a "source," including a "source" with multiple units, shall be considered a single "facility."

"State" means the Commonwealth of Virginia. The term "state" shall have its conventional meaning where such meaning is clear from the context.

"State operating permit" means a permit issued under Article 5 (9VAC5-80-800 et seq.) of Part II of 9VAC5 Chapter 80 9VAC5-80 (Permits for Stationary Sources)

. "State operating permit regulations" means the regulations codified in Article 5 (9VAC5-80-800 et seq.) of Part II of 9VAC5 Chapter 80 9VAC5-80 (Permits for Stationary Sources)

.

"Submit or serve" means 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" or "service" deadline shall be determined by the dat e of dispatch, transmission, or mailing and not the date of receipt. "Title V operating permit" means a permit issued under Article 1 (9VAC5-80-50 et seq.) or Article 3 (9VAC5-80-360 se seq.) of Part II of 9VAC5 Chapter 80 9VAC5-80 (Permits for Stationary Sources)

.

"Title V operating permit regulations" means the regulations codified in Article 1 (9VAC5-80-50 et seq.), Article 2 (9VAC5-80-310 et seq.), Article 3 (9VAC5-80-360 et seq.), and Article 4 (9VAC5-80-710 et seq.) of Part II of 9VAC5 Chapter 80 9VAC5-80 (Permits for Stationary Sources)

. "Ton" means 2,000 pounds. For the purpose of determining compliance with the CAIR NO X Ozone Season emissions limitation, total tons of nitrogen oxides emissions for a control period shall be calculated as the sum of all recorded hourly emissions (or the ma ss equivalent of the recorded hourly emission rates) in accordance with Article 8 (9VAC5- 140-2700 et seq.) of this part, but with any remaining fraction of a ton equal to or greater than 0.50 tons deemed to equal one ton and any remaining fraction of a ton less than 0.50 tons deemed to equal zero tons.

"Topping-cycle cogeneration unit" means a cogeneration unit in which the en ergy input to the unit is first used to produce useful power, including electricity, and at least some of the reject heat from the electricity production is then used to provide useful thermal energy.

"Total energy input" means, with regard to a cogeneration unit, total energy of all forms supplied to the cogeneration unit, excluding energy produced by the cogeneration unit itself. Each form of energy supplied shall be measured by the lower heating value of that form of energy calculated as follows: LHV = HHV – 10.55(W + 9H)

where:

LHV = lower heating value of fuel in Btu/lb. HHV = higher heating value of fuel in Btu/lb. W = Weight percent of moisture in fuel. H = Weight percent of hydrogen in fuel. "Total energy output" means, w ith regard to a cogeneration unit, the sum of useful power and useful thermal energy produced by the cogeneration unit.

"Unit" means a stationa ry, fossil-fuel-fired boiler or combustion turbine or other st ationary, fossil-fuel-fired combustion device.

"Unit operating day" means a calendar day in which a unit combusts any fuel.

"Unit operating hour" or "hour of unit operation" means an hour in which a unit co mbusts any fuel.

"Useful power" means, with regard to a cogeneration unit, electricity or mechanical energy made available for use, excluding any such energy used in the power production process (which process includes, bu t is not limited to, any onsite processing or treatment of fuel combusted at the unit and any on-site emission controls).

"Useful thermal energy" m eans, with regard to a cogeneration unit, thermal energy that is: 1. Made available to an industrial or commercial process (not a power production process), excluding any heat contained in condensate return or makeup water;

# Regulations

Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2126 2. Used in a heating application (e.g., space heating or domestic hot water heating); or 3. Used in a space cooling application (i.e., thermal energy used by an absorption chiller). "Utility power distribution system" means the portion of an electricity grid owned or operated by a utility and dedicated to delivering electricity to customers.

Part IV SO 2 Annual Trading Program

Article 1 CAIR SO 2 Trading Program General Provisions
9VAC5-140-3010. Purpose and authority

.

A. This part establishes general provisions and the designated representative, permitti ng, allowance, monitoring, and opt-in provisions for the State Clean Air Interstate Rule (CAIR) SO 2 Trading Program, under § 110 of the Clean Air Act and 40 CFR 51.124, as a means of mitigating interstate transport of fine particulates and sulfur dioxide.

B. The purpose of this part is not to create the CAIR SO 2 Trading Program only for CAIR SO 2 units and CAIR SO 2 sources geographically located within the borders of the Commonwealth of Virginia. Upon approval by EPA in accordance with 40 CFR 51.124 (o)(1) or (2), qualifying CAIR SO 2 units and CAIR SO 2 sources within the Commonwealth will become full participants in the EPAadministered regional CAIR SO 2 Annual Trading Program, which will include CAIR SO 2 units and CAIR SO 2 sources permitted by authorities in all other states that are participating in the regional CAIR SO 2 Trading Program.

C. This part should not be interpreted to limit the CAIR SO 2 Trading Program to Virginia CAIR SO 2 units and CAIR SO 2 sources, which would be contrary to th e intention that CAIR SO 2 units and CAIR SO 2 sources covered by CAIR programs of other states approved in accordance with 40 CFR 51.124 (o)(1) or (2) or by the CA IR Federal Implementation Plan (subparts AAA through III of 40 CFR Part 97) may trade allowances with CAIR SO 2 units and CAIR SO 2 sources in the Commonwealth. While the CAIR SO 2 Trading Program must include CAIR SO 2 units and CAIR SO 2 sources and permitting authorities beyond the borders of the Commonwealth, the permitti ng authority for Virginia (the State Air Pollution Control Board) has no authority to ensure compliance with this part by an y permitting authority, person or entity outside the Commonwealth.

D. The board has the authority under the Code of Virginia to regulate the allocations of allowances, issuance of the budget permits, the administration of the opt-in provisions and other duties assigned to the permitti ng authority only for CAIR SO 2 units and CAIR SO 2 sources in Virginia. The board authorizes the administrator to assist the board in implementing the CAIR SO 2 Trading Program by carrying out the functions set forth for the administrator in this part.

9VAC5-140-3020. Definitions.

A. As used in this part, all words or terms not defined here shall have the meaning given them in 9VAC5 Chapter 10 (9VAC5

- 10), 9VAC5-10 (General Definitions) unless otherwise required by context.

B. For the purpose of this part and any related use, the words or terms shall have the meaning given them in this subsection.

"Account number" means the identification number given by the administrator to each CAIR SO 2 Allowance Tracking System account.

"Acid rain emissions limitation" means a limitation on emissions of sulfur dioxide or nitrogen oxides under the Acid Rain Program.

"Acid Rain Program" means a multistate sulfur dioxide and nitrogen oxides air pollution control and emission reduction program established by the administrator under Title IV of the CAA and 40 CFR Parts 72 through 78.

"Administrator" means the ad ministrator of the United States Environmental Prot ection Agency or the administrator's duly authorized representative.

"Allocate" or "allocation" mean s, with regard to CAIR SO 2 allowances issued under th e Acid Rain Program, the determination by the adminis trator of the amount of such CAIR SO 2 allowances to be initially credited to a CAIR SO 2 unit or other entity and, with regard to CAIR SO 2 allowances issued under provisions of a st ate implementation plan that are approved under 40 CFR 51.124 (o) (1) or (2) or (r) or 9VAC5-140-3880, the determination by a permitting authority of the amount of such CAIR SO 2 allowances to be initially credited to a CAIR SO 2 unit or other entity.

"Allowance transfer deadline" means, for a control period, midnight of March 1, (if it is a business day), or midnight of the first business day thereafter (if March 1 is not a business day) immediately following the control period and is the deadline by which a CAIR SO 2 allowance transfer must be submitted for recordation in a CAIR SO 2 source's compliance account in order to be used to meet the source's CAIR SO 2 emissions limitation for such control period in accordance with 9VAC5-140-3540.

"Alternate CAIR-designated representative" means, for a CAIR SO 2 source and each CAIR SO 2 unit at the source, the natural person who is authori zed by the owners and operators of the source and all such units at the source, in accordance with Articles 2 (9VAC5-140-3100 et seq.) and 9 (9VAC5-140-3800 et seq.) of this part, to act on behalf of the CAIRdesignated representative in matters pertaining to the CAIR SO 2 Trading Program. If the CAIR SO 2 source is also a CAIR

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Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2127 NO X source, then this natural person shall be the same person as the alternate CAIR-designated representative under the CAIR NO X Annual Trading Program. If the CAIR SO 2 source is also a CAIR NO XOzone Season source, then this natural person shall be the sam e person as the alternate CAIRdesignated representative under the CAIR NO X Ozone Season Trading Program. If the CAIR SO 2 source is also subject to the Acid Rain Program, then th is natural person shall be the same person as the alternate designated representative under the Acid Rain Program. If the CAIR SO 2 source is also subject to the Hg Budget Trading Program, then this natural person shall be the same person as the alternate Hg designated representative under the Hg Budget Trading Program.

"Automated data acquisition and handling system" or "DAHS" means that component of the continuous emission monitoring system, or other emissions monitoring system approved for use under Article 8 (9VAC5-140-3700 et seq.) of this part, designed to inte rpret and conve rt individual output signals from pollutant concentration monitors, flow monitors, diluent gas monitors, and other component parts of the monitoring system to produ ce a continuous record of the measured parameters in the measurement units required by Article 8 (9VAC5-140- 3700 et seq.) of this part.

“Biomass” means:

1. Any organic material grown for the purpose of being converted to energy; 2. Any organic byproduct of agriculture that can be converted into energy; or 3. Any material that can be converted into energy and is nonmerchantable for other purposes, that is segregated from other nonmerchantable material, and that is:

a. A forest-related organic resource, including mill residues, precommercial thinnings, slash, brush, or byproduct from conversion of trees to merchantable material; or b. A wood material, including pallets, crates, dunnage, manufacturing and construction materials (other than pressure-treated, chemically-treated, or painted wood products), and landscape or ri ght-of-way tree trimmings.

"Boiler" means an enclosed fossil- or other-fuel-fired combustion device used to produce heat and to transfer heat to recirculating water, steam, or other medium.

"Bottoming-cycle cogeneration unit" means a cogeneration unit in which the en ergy input to the unit is first used to produce useful thermal energy and at least some of the reject heat from the useful thermal energy application or process is then used for electricity production.

"CAIR-authorized account representative" means, with regard to a general account, a responsible natural person who is authorized, in accordance with Articles 2 (9VAC5-140- 3100 et seq.), 6 (9VAC5-140-3500 et seq.) and 9 (9VAC5- 140-3800 et seq.) of this part, to transfer and otherwise dispose of CAIR SO 2 allowances held in the general accountand, with regard to a compliance account, the CAIRdesignated representative of the source.

"CAIR-designated representative" means, for a CAIR SO 2 source and each CAIR SO 2 unit at the source, the natural person who is authorized by the owners and operators of the source and all such units at the source, in accordance with Articles 2 (9VAC5-140-3100 et seq.), 6 (9VAC5-140-3500 et seq.) and 9 (9VAC5-140-3800 et seq.) of this part, to represent and legally bind eac h owner and operator in matters pertaining to the CAIR SO 2 Trading Program. If the CAIR SO 2 source is also a CAIR NO X source, then this natural person shall be the same pe rson as the CAIR-designated representative under the CAIR NO X Annual Trading Program. If the CAIR SO 2 source is also a CAIR NO X Ozone Season source, then this natural person shall be the same person as the CAIR-designated representative under the CAIR NO X Ozone Season Trading Program. If the CAIR SO 2 source is also subject to the Acid Rain Program, then this natural person shall be the same person as the designated representative under the Acid Rain Program. If the CAIR SO 2 source is also subject to the Hg Budget Trading Program, then this natural person shall be the same person as the alternate Hg designated representative under the Hg Budget Trading Program.

"CAIR NO X Annual Trading Program" means a multistate nitrogen oxides air pollution control and emission reduction program approved and administered by the administrator in accordance with Part II (9VAC5-140-1010 et seq.) of this chapter, subparts AA through II of 40 CFR Part 96, and 40 CFR 51.123 (o)(1) or (2) or established by the administrator in accordance with subparts AA through II of 40 CFR Part 97 and 40 CFR 51.123(p) and 52.35, as a means of mitigating interstate transport of fine particul ates and nitrogen oxides.

"CAIR NO X Ozone Season source" means a source that is subject to the CAIR NO XOzone Season Trading Program.

"CAIR NO X Ozone Season Trading Program" means a multistate nitrogen oxides air po llution control and emission reduction program approved and administered by the administrator in accordance with Part III (9VAC5-140-2010 et seq.) of this chapter, subparts AAAA through IIII of 40 CFR Part 96, and 40 CFR 51.123 (aa)(1) or (2) and (bb)(1), (bb)(2), or (dd) or established by the administrator in accordance with subparts AAAA through IIII of 40 CFR Part 97 and 40 CFR 51.123(ee) and 52.35, as a means of mitigating interstate transport of ozone and nitrogen oxides.

"CAIR NO X source" means a source that is subject to the CAIR NO XAnnual Trading Program.

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Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2128 "CAIR permit" means the terms and conditions in a Title V operating permit or state operating permit, issued by the permitting authority unde r Article 3 (9VAC5-140-3200 et seq.) of this part, including any permit revisions, specifying the CAIR SO 2 Trading Program requirements applicable to a CAIR SO 2 source, to each CAIR SO 2 unit at the source, and to the owners and operators and the CAIR-designated representative of the source and each such unit.

"CAIR SO 2 allowance" means a li mited authorization issued by the administrator under the Acid Rain Program, or by a permitting authority under 9VAC5-140-3880, provisions of an implementation plan that are approved under 40 CFR 51.124(o)(1) or (2) or (r), or 40 CFR 97.288, to emit sulfur dioxide during the contr ol period of the specified calendar year for which the authorization is allocated or of any calendar year thereafter under the CAIR SO 2 Trading Program as specified in subdivisions 1 through 3 of this definition. No provision of the CAIR SO 2 Annual Trading Program, the CAIR permit app lication, the CAIR permit, or an exemption under 9VAC5-140-3040 B or 9VAC5-140- 3050 and no provision of law shall be construed to limit the authority of the United States or the board to terminate or limit such authorization, which does not constitute a property right.

1. For one CAIR SO 2 allowance allocated for a control period in a year before 2010, one ton of su lfur dioxide, except as provided in 9VAC5-140-3540 B;

2. For one CAIR SO 2 allowance allocated for a control period in 2010 through 2014, 0.50 ton of sulfur dioxide, except as provided in 9VAC5-140-3540 B; and

3. For one CAIR SO 2 allowance allocated for a control period in 2015 or later, 0.35 ton of sulfur dioxide, except as provided in 9VAC5-140-3540 B.

4. An authorization to emit sulfu r dioxide that is not issued under 9VAC5-140-3880, under the Acid Rain Program under the provisions of a state implementation plan that are approved under 40 CFR 51.124(o)(1) or (2) or (r), or under 40 CFR 97.288 shall not be a CAIR SO 2 allowance.

"CAIR SO 2 allowance deduction" or "deduct CAIR SO 2 allowances" means the permanent withdrawal of CAIR SO 2 allowances by the administrator from a compliance account, e.g., in order to account for a specified number of tons of total sulfur dioxide emissions from all CAIR SO 2 units at a CAIR SO 2 source for a control period, determined in accordance with Article 8 (9VAC5-140-3700 et seq .) of this part, or to account for excess emissions.

"CAIR SO 2 Allowance Tracking System" means the system by which the administrator records allocations, deductions, and transfers of CAIR SO 2 allowances under the CAIR SO 2 Trading Program. This is th e same system as the Allowance Tracking System under 40 CFR 72.2 by which the administrator records allocations, deduction, and transfers of acid rain SO 2 allowances under the Acid Rain Program.

"CAIR SO 2 Allowance Tracking System account" means an account in the CAIR SO 2 Allowance Tracking System established by the administrator for purposes of recording the allocation, holding, transferring, or deducting of CAIR SO 2 allowances. Such allowances will be allocated, held, deducted, or transferred only as whole allowances.

"CAIR SO 2 allowances held" or "hold CAIR SO 2 allowances" means the CAIR SO 2 allowances recorded by the administrator, or submitted to the administrator for recordation, in accordance with Articles 6 (9VAC5-140-3500 et seq.), 7 (9VAC5-140-3600 et seq.), and 9 (9VAC5-140- 3800 et seq.) of this part or 40 CFR Part 73, in a CAIR SO 2 Allowance Tracking System account.

"CAIR SO 2 emissions limitation" means, for a CAIR SO 2 source, the tonnage equivalent, in SO 2 emissions in a control period, of the CAIR SO 2 allowances available for deduction for the source under 9VAC5-140-3540 A and B for the control period.

"CAIR SO 2 source" means a source that includes one or more CAIR SO 2 units.

"CAIR SO 2 Trading Program" means a multi-state sulfur dioxide air pollution control and emission reduction program approved and administered by th e administrator in accordance with this part, subparts AAA through III of 40 CFR Part 96, and 40 CFR 51.124 (o)(1) or (2) or established by the administrator in accordance with subparts AAA through III of 40 CFR Part 97 and 40 CFR 51.124(r) and 52.36, as a means of mitigating interstate transport of fine particulates and sulfur dioxide.

"CAIR SO 2 unit" means a unit th at is subject to the CAIR SO 2 Trading Program under 9VAC5-140-3040 and, except for purposes of 9VAC5-140-3050, a CAIR SO 2 opt-in unit under Article 9 (9VAC5-140-3800 et seq.) of this part.

"Clean Air Act" or "CAA" means the Clean Air Act, 42 USC § 7401 et seq.

"Coal" means any solid fuel classified as anthracite, bituminous, subbituminous, or lignite.

"Coal-derived fuel" means any fuel (whether in a solid, liquid, or gaseous state) produced by the mechanical, thermal, or chemical processing of coal.

"Coal-fired" means combusting any amount of coal or coalderived fuel, alone, or in combination with any amount of any other fuel.

"Cogeneration unit" means a stationary, fossil-fuel-fired boiler or stationary, fossil-fuel-fired combustion turbine:

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Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2129 1. Having equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, or cooling purposes through the sequential use of energy; and 2. Producing during the 12-m onth period starting on the date the unit first produces electricity and during any calendar year after the calendar year in which the unit first produces electricity:

a. For a topping-cycle cogeneration unit, : (1) Useful thermal energy no t less than 5.0% of total energy output; and (2) Useful power that, when added to one-half of useful thermal energy produced, is not less then 42.5% of total energy input, if useful thermal energy produced is 15.0% 15% or more of total energy output, or not less than 45.0% 45% of total energy input, if useful thermal energy produced is less than 15.0% 15% of total energy output. b. For a bottoming-cycle cogene ration unit, useful power not less than 45.0% 45% of total energy input. ; and 3. Provided that the total energ y input under subdivisions 2 a (2) and 2 b of this definiti on shall equal the unit’s total energy input from all fuel except biomass if the unit is a boiler.

"Combustion turbine" means:

1. An enclosed device comprising 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; and

2. If the enclosed device under subdivision 1 of this definition is combined cycle, any associated duct burner, heat recovery steam generator, and steam turbine. "Commence commercial operation" means, with regard to a unit: 1. To have begun to produce steam, gas, or other heated medium used to generate electricity for sale or use, including test generation, ex cept as provided in 9VAC5- 140-3050 and subdivision 8 of 9VAC5-140-3840.

a. For a unit that is a CAIR SO 2 unit under 9VAC5-140- 3040 on the later of November 15, 1990, or the date the unit commences commercial operation as defined in subdivision 1 of this definition and that subsequently undergoes a physical change (other than replacement of the unit by a unit at the same source), such date shall remain the date of commencement of commercial operation of the unit, which sh all continue to be treated as the same unit.

b. For a unit that is a CAIR SO 2 unit under 9VAC5-140- 3040 on the later of November 15, 1990, or the date the unit commences commercial operation as defined in subdivision 1 of this definition and that is subsequently replaced by a unit at the same source (e.g., repowered), such date shall remain th e replaced unit's date of commencement of commercial operation, and the replacement unit shall be treated as a separate unit with a separate date for commencement of commercial operation as defined in subdivision 1 or 2 of this definition as appropriate. 2. Notwithstanding subdivision 1 of this definition and except as provided in 9VAC5-140-3050, for a unit that is not a CAIR SO 2 unit under 9VAC5-140-3040 on the later of November 15, 1990, orthe date the unit commences commercial operation as defined in subdivision 1 of this definition, the unit's date for commencement of commercial operation shall be the da te on which the unit becomes a CAIR SO 2 unit under 9VAC5-140-3040.

a. For a unit with a date for commencement of commercial operation as defined in subdivision 2 of this definition and that subseque ntly undergoes a physical change (other than replacement of the unit by a unit at the same source), such date shall remain the date of commencement of commercial operation of the unit, which shall continue to be treated as the same unit.

b. For a unit with a date for commencement of commercial operation as defined in subdivision 2 of this definition and that is subsequ ently replaced by a unit at the same source (e.g., repowered), such date shall remain the replaced unit's date of commencement of commercial operation and the replacement unit shall be treated as a separate unit with a separate date for commencement of commercial operation as defined in subdivision 1 or 2 of this definition as appropriate. "Commence operation" means:

1. 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 subdivision 8 of 9VAC5-140-3840. 2. For a unit that undergoes a physical change (other than replacement of the unit by a unit at the same source) after the date the unit commences operation as defined in subdivision 1 of this definitio n, such date shall remain the date of commencement of operation of the unit, which shall continue to be treatedas the same unit. 3. For a unit that is replaced by a unit at the same source (e.g., repowered) after the date the unit commences operation as defined in subdivision 1 of this definition, such date shall remain the replaced unit's date of commencement of operation, and the replacement unit shall be treated as a separate unit with a separate date for commencement of operation as defined in subdivision 1, 2, or 3 of this definition as appropriate, except as provided in subdivision 8 of 9VAC5-140-3840.

# Regulations

Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2130 "Common stack" means a single flue through which emissions from two or more units are exhausted.

"Compliance account" means a CAIR SO 2 Allowance Tracking System account, established by the administrator for a CAIR SO 2 source subject to an acid rain emissions limitations under 40 CFR 73.31(a) or (b) or for any other CAIR SO 2 source under Article 6 (9VAC5-140-3500 et seq.) or Article 9 (9VAC5-140-3800 et seq.) of this part, in which any CAIR SO 2 allowance allocations for the CAIR SO 2 units at the source are initially recorded and in which are held any CAIR SO 2 allowances available for use for a control period in order to meet the source's CAIR SO 2 emissions limitation in accordance with 9VAC5-140-3540.

"Continuous emission mon itoring system" or "CEMS" means the equipment required under Article 8 (9VAC5-140- 3700 et seq.) of this part to sample, analyze, measure, and provide, by means of readings recorded at least once every 15 minutes (using an automated data acquisition and handling system (DAHS)), a permanent record of sulfur dioxide emissions, stack gas volumetric flow rate, stack gas moisture content, and oxygen or carbon dioxide concentration (as applicable), in a manner co nsistent with 40 CFR Part 75. The following systems are the prin cipal types of continuous emission monitoring systems required under Article 8 (9VAC5-140-3700 et seq.) of this part: 1. A flow monitoring system, consisting of a stack flow rate monitor and an auto mated data acquisition and handling system and providi ng a permanent, continuous record of stack gas volumetric flo w rate, in standard cubic feet per hour (scfh); 2. A sulfur dioxide monitoring system, consisting of a SO 2 pollutant concentration monitor and an automated data acquisition and handling system and providing a permanent, contin uous record of SO 2 emissions, in parts per million (ppm); 3. A moisture monitoring system, as defined in 40 CFR 75.11(b)(2) and providing a permanent, continuous record of the stack gas moisture content, in percent H 2 O;

4. A carbon dioxide monitori ng system, consisting of a CO 2 pollutant concentration monitor (or an oxygen monitor plus suitable mathematical equations from which the CO 2 concentration is derived) and an automated data acquisition and handling system and providing a permanent, continuou s record of CO 2 emissions, in percent CO 2 ; and 5. An oxygen monitoring system, consisting of an O 2 concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record of O 2 in percent O 2 . "Control period" means the period beginning January 1 of a calendar year, except as provided in 9VAC5-140-3060 C 2, and ending on December 31 of the same year, inclusive.

"Emissions" means air pollutants exhausted from a unit or source into the atmosphere, as measured, recorded, and reported to the administrator by the CAIR-designated representative and as determined by the administrator in accordance with Article 8 (9VAC5-140-3700 et seq.) of this part.

"Excess emissions" means any ton, or portion of a ton, of sulfur dioxide emitted by the CAIR SO 2 units at a CAIR SO 2 source during a control period that exceeds the CAIR SO 2 emissions limitation for the source, provided that any portion of a ton of excess emissions shall be treated as one ton of excess emissions.

"Fossil fuel" means natural gas, petroleum, coal, or any form of solid, liquid, or gaseous fuel derived from such material.

"Fossil-fuel-fired" means, with regard to a unit, combusting any amount of fossil fuel in any calendar year.

"General account" means a CAIR SO 2 Allowance Tracking System account, established un der Article 6 (9VAC5-140- 3500 et seq.) of this part, that is not a compliance account.

"Generator" means a device that produces electricity. "Heat input" means, with regard to a specified period of time, the product (in mmBtu/ time) of the gross calorific value of the fuel (in Btu/lb) divide d by 1,000,000 Btu/mmBtu and multiplied by the fuel feed rate into a combustion device (in lb of fuel/time), as measured, recorded, and reported to the administrator by the CAIR-designated representative and determined by the admini strator in accordance with Article 8 (9VAC5-140-3700 et seq.) of this part and excluding the heat derived from preheated combus tion air, recirculated flue gases, or exhaust from other sources.

"Heat input rate" means the amount of heat input (in mmBtu) divided by unit operating time (in hr) or, with regard to a specific fuel, the amount of heat input attributed to the fuel (in mmBtu) divided by the unit operating time (in hr) during which the unit combusts the fuel.

"Hg Budget Trading Program" means a multistate Hg air pollution control and emissi on reduction program approved and administered by the administrator in accordance with Part VI (9VAC5-140-5010 et seq.) of this chapter and 40 CFR 60.24(h)(6), or established by the administrator under § 111 of the Clean Air Act, as a means of reducing national Hg emissions.

"Implementation plan" means the po rtion or portions of the state implementation plan, or the most recent revision thereof, which has been approved in subpart VV of 40 CFR Part 52 by the administrator under § 110 of the CAA, or promulgated under § 110(c) of the CAA, or promulgated or approved

# Regulations

Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2131 pursuant to regulations promulgated under § 301(d) of the CAA and which implements th e relevant requirements of the CAA.

"Life of the unit, firm power contractual arrangement" means 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 generated by 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 30 years, including contracts that permit an election for early termination; or 3. For a period no less than 25 years or 70.0% 70% of the economic useful life of the un it determined as of the time the unit is built, with op tion rights to purchase or release some portion of the nameplate capacity and associated energy generated by the unit at the end of the period. "Maximum design heat input" means the maximum amount of fuel per hour (in Btu/hr) that a unit is capable of combusting on a steady state basis as of the initial installation of the unit as specified by the manufacturer of the unit.

"Monitoring system" means any monitoring system that meets the requirements of Article 8 (9VAC5-140-3700 et seq.) of this part, includi ng a continuous emissions monitoring system, an alternativ e monitoring system, or an excepted monitoring system under 40 CFR Part 75.

"Most stringent state or federal SO 2 emissions limitation" means, with regard to a unit, the lowest SO 2 emissions limitation (in terms of lb/mmBtu) that is applicable to the unit under the Virginia Air Pollution Control Law or federal law, regardless of the averaging pe riod to which the emissions limitation applies. In cases where a unit is subject to a permit that provides for the use of multiple fuels, the primary fuel shall be used as the basis to determine the most stringent state or federal SO 2 emissions limitation. The primary fuel shall be the fuel designated in the perm it as such or resulting in the lowest emissions rate.

"Nameplate capacity" means, starting from the initial installation of a generator, th e maximum electrical generating output (in MWe) that the generat or is capable of producing on a steady state basis and during continuous operation (when not restricted by seasonal or other deratings) as of such installation as specified by th e manufacturer of the generator or, starting from the completi on of any subsequent physical change in the generator resulting in an increase in the maximum electrical generating ou tput (in MWe) that the generator is capable of producing on a steady state basis and during continuous operation (w hen not restricted by seasonal or other deratings), such increased maximum amount as of such completion as specified by the person conducting the physical change.

"Nonattainment condition" means a condition where any area is shown by air quality mon itoring data or that is shown by an air quality impact analysis (using modeling or other methods determined by the board to be reliable) to exceed the levels allowed by the ambien t air quality standard for a given pollutant, regardless of whether such demonstration is based on current or projected emissions data.

"Operator" means any person who operates, controls, or supervises a CAIR SO 2 unit or a CAIR SO 2 source and shall include, but not be limited to, any holding company, utility system, or plant manager of such a unit or source.

"Owner" means any of the following persons:

1. With regard to a CAIR SO 2 source or a CAIR SO 2 unit at a source, respectively:

a. Any holder of any portion of the legal or equitable title in a CAIR SO 2 unit at the source or the CAIR SO 2 unit; b. Any holder of a leasehold interest in a CAIR SO 2 unit at the source or the CAIR SO 2 unit; or c. Any purchaser of power from a CAIR SO 2 unit at the source or the CAIR SO 2 unit under a life of the unit, firm power contractual arrangemen t; provided that, 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 di rectly or indirectly) on the revenues or income from such CAIR SO 2 unit; or 2. With regard to any general account, any person who has an ownership interest with respect to the CAIR SO 2 allowances held in the general account and who is subject to the binding agreement for the CAIR-authorized account representative to represent the pe rson's ownership interest with respect to CAIR SO 2 allowances. "Permitting authority" means the state air pollution control agency, local agency, other state agency, or other agency authorized by the administrator to issue or revise permits to meet the requirements of the CAIR SO 2 Trading Program in accordance with Article 3 (9VAC5

- 140

- 3200 et seq.) of this part or, if no such agency has been so authorized, the administrator. For the Commonw ealth of Virginia, the permitting authority shall be the State Air Pollution Control Board. The board will issue or rev ise permits to meet the requirements of the CAIR SO 2 Trading Program in accordance with Article 3 (9VAC5-140-3200 et seq.) of this part.

"Potential electrical output capacity" means 33.0% 33% of a unit's maximum design heat input, divided by 3,413 Btu/kWh, divided by 1,000 kWh /MWh, and multiplied by 8,760 hr/yr.

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Volume 25, Issue 12 Virginia Register of Regulations February 16, 2009

2132 "Receive or receipt of" means, when referring to the permitting authority or the administrator, to come into possession of a document, information, or correspondence (whether sent in hard copy or by authorize d electronic transmission), as indicated in an official log, or by a notation made on the document, information, or correspondence, by the permitting authority or the administrator in the regular course of business.

"Recordation," "record," or "recorded" means, with regard to CAIR SO 2 allowances, the movement of CAIR SO 2 allowances by the administrator into or between CAIR SO 2 Allowance Tracking System accounts, for purposes of allocation, transfer, or deduction.

"Reference method" means any direct test method of sampling and analyzing for an air pollutant as specified in 40 CFR 75.22.

"Replacement," "replace," or "replaced" means, with regard to a unit, the demolishing of a unit, or the permanent shutdown and permanent disabling of a unit, and the construction of another unit (the replacement unit) to be used instead of the demolished or shutdown unit (the replaced unit).

"Repowered" means, with regard to a unit, replacement of a coal-fired boiler with one of the following coal-fired technologies at the same source as the coal-fired boiler: 1. Atmospheric or pressurized fl uidized bed combustion; 2. Integrated gasification combined cycle; 3. Magnetohydrodynamics;
4. Direct and indirect coal-fired turbines; 5. Integrated gasificati on fuel cells; or 6. As determined by the administrator in consultation with the Secretary of Energy, a derivative of one or more of the technologies under subdivisions 1 through 5 of this definition and any other coal -fired technology capable of controlling multiple combustion emissions simultaneously with improved boiler or generation efficiency and with significantly greater waste redu ction relative to the performance of technology in widespread commercial use as of January 1, 2005. "Sequential use of energy" means:

1. For a topping-cycle cogeneration unit, the use of reject heat from electricity production in a useful thermal energy application or process; or 2. For a bottoming-cycle cogeneration unit, the use of reject heat from useful thermal energy application or process in electricity production. "Serial number" means, for a CAIR SO 2 allowance, the unique identification number assigned to each CAIR SO 2 allowance by the administrator.

"Solid waste incineration unit" m eans a stationary, fossilfuel-fired boiler or stationary , fossil-fuel-fired combustion turbine that is a "so lid waste incineration unit" as defined in § 129(g)(1) of the Clean Air Act.

"Source" means all buildings , structures, or installations located in one or more contiguous or adjacent properties under common control of the same person or persons. For purposes of § 502(c) of the Clean Air Act, a "source," including a "source" with multiple units, shall be considered a single "facility."

"State" means the Commonwealth of Virginia. The term "state" shall have its conventional meaning where such meaning is clear from the context.

"State operating permit" means a permit issued under Article 5 (9VAC5-80-800 et seq.) of Part II of 9VAC5 Chapter 80 9VAC5-80 (Permits for Stationary Sources)

. "State operating permit regulations" means the regulations codified in Article 5 (9VAC5-80-800 et seq.) of Part II of 9VAC5 Chapter 80 9VAC5-80 (Permits for Stationary Sources)

.

"Submit or serve" means 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" or "service" deadline shall be determined by the dat e of dispatch, transmission, or mailing and not the date of receipt. "Title V operating permit" means a permit issued under Article 1 (9VAC5-80-50 et seq.) or Article 3 (9VAC5-80-360 se seq.) of Part II of 9VAC5 Chapter 80 9VAC5-80 (Permits for Stationary Sources)

.

"Title V operating permit regulations" means the regulations codified in Article 1 (9VAC5-80-50 et seq.), Article 2 (9VAC5-80-310 et seq.), Article 3 (9VAC5-80-360 et seq.), and Article 4 (9VAC5-80-710 et seq.) of Part II of 9VAC5 Chapter 80 9VAC5-80 (Permits for Stationary Sources)

.

"Ton" means 2,000 pounds. For the purpose of determining compliance with the CAIR SO 2 emissions limitation, total tons of sulfur dioxide emissions for a control period shall be calculated as the sum of all recorded hourly emissions (or the mass equivalent of the recorded hourly emission rates) in accordance with Article 8 (9VAC5-140-3700 et seq.) of this part, but with any remaining fraction of a ton equal to or greater than 0.50 tons deemed to equal one ton and any

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2133 remaining fraction of a ton less than 0.50 tons deemed to equal zero tons.

"Topping-cycle cogeneration unit" means a cogeneration unit in which the en ergy input to the unit is first used to produce useful power, including electricity, and at least some of the reject heat from the electricity production is then used to provide useful thermal energy.

"Total energy input" means, with regard to a cogeneration unit, total energy of all forms supplied to the cogeneration unit, excluding energy produced by the cogeneration unit itself. Each form of energy supplied shall be measured by the lower heating value of that form of energy calculated as follows: LHV = HHV – 10.55(W + 9H)

where:

LHV = lower heating value of fuel in Btu/lb. HHV = higher heating value of fuel in Btu/lb. W = Weight percent of moisture in fuel. H = Weight percent of hydrogen in fuel. "Total energy output" means, w ith regard to a cogeneration unit, the sum of useful power and useful thermal energy produced by the cogeneration unit.

"Unit" means a stationa ry, fossil-fuel-fired boiler or combustion turbine or other st ationary, fossil-fuel-fired combustion device.

"Unit operating day" means a calendar day in which a unit combusts any fuel.

"Unit operating hour" or "hour of unit operation" means an hour in which a unit co mbusts any fuel.

"Useful power" means, with regard to a cogeneration unit, electricity or mechanical energy made available for use, excluding any such energy used in the power production process (which process includes, bu t is not limited to, any onsite processing or treatment of fuel combusted at the unit and any on-site emission controls).

"Useful thermal energy" m eans, with regard to a cogeneration unit, thermal energy that is: 1. Made available to an industrial or commercial process (not a power production process), excluding any heat contained in condensate return or makeup water; 2. Used in a heating application (e.g., space heating or domestic hot water heating); or 3. Used in a space cooling application (i.e., thermal energy used by an absorption chiller). "Utility power distribution system" means the portion of an electricity grid owned or operated by a utility and dedicated to delivering electricity to customers.

VA.R. Doc. No. R09-1686; Filed January 21, 2009, 3:35 p.m.

STATE WATER CONTROL BOARD Final Regulation Title of Regulation: 9VAC25-260. Water Quality Standards (amending 9VAC25-2 60-10, 9VAC25-260-20, 9VAC25-260-30, 9VAC25-260-50, 9VAC25-260-90, 9VAC25-260-140, 9VAC25-260-160, 9VAC25-260-170, 9VAC25-260-185, 9VAC25-260-187, 9VAC25-260-310, 9VAC25-260-350, 9VAC25-260-360, 9VAC25-260-380, 9VAC25-260-390, 9VAC25-260-400, 9VAC25-260-410, 9VAC25-260-415, 9VAC25-260-420, 9VAC25-260-430, 9VAC25-260-440, 9VAC25-260-450, 9VAC25-260-460, 9VAC25-260-470, 9VAC25-260-480, 9VAC25-260-490, 9VAC25-260-500, 9VAC25-260-510, 9VAC25-260-520, 9VAC25-260-530, 9VAC25- 260-540; repealing 9VAC25- 260-55, 9VAC25-260-290, 9VAC25-260-320). Statutory Authority: § 62.1-44.15 of the Code of Virginia; 33 USC § 1251 et seq. of the federal Clean Water Act; 40 CFR Part 131.

Effective Date: Effective upon filing notice of U.S. EPA approval with the Registrar of Regulations.
Agency Contact: David C. Whitehurst, Department of Environmental Quality, P.O. B ox 1105, 629 East Main Street, Richmond, VA 23218, telephone (804) 698-4121, FAX (804) 698-4116, or email dcwhitehurst@deq.virginia.gov.

Summary: The most important potential ch anges to the water quality standards are a narrative criterion to recognize that certain waters in the Commonwealth are naturally low in dissolved oxygen and pH (swamp waters), and updates to the toxics and bacteria criteria and special standards to reflect site specific conditions. There are changes in many other sections of the regulation during this review. These include the updates to the Chesapeake Bay nutrient related criteria, updates to stream cla ssifications in the river basin section tables, deletions of sections that are unused or no longer needed, and miscellaneous updates and clarifications. The following substantive changes have been made since the proposed action was published: retention of the existing E. coli bacteria criteria in 9 VAC25-260-170 at the current 0.8% risk level for freshwater recreation with some updates to more closely reflect Environmental Protection Agency (EPA) recommendations; and postponement of revisions to the freshwater aquatic life criteria for cadmium and lead until considered more fully by the triennial review ad hoc adv isory committee that will be