Pennsylvania Code › Title 25 - ENVIRONMENTAL PROTECTION › Part I - Department of Environmental Protection › Subpart C - Protection of Natural Resources › Article III - Air Resources › Chapter 145 - INTERSTATE POLLUTION TRANSPORT REDUCTION › Subchapter A - NO[x] BUDGET TRADING PROGRAM › GENERAL PROVISIONS › Section 145.8 - Transition to CAIR NO[x] trading programs

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Allowances
. The final
						  year for NOx allowance allocations to be made by the Department under
						  §§
													145.41 and
						  145.42 (relating to timing
						  requirements for NOx allowance allocations; and NOx allowance allocations) will
						  be 2008. Allocations in 2009 will be made in accordance with the Federal CAIR
						  Ozone Season Trading Program, 40 CFR Part 97 (relating to Federal NOx Budget
						  Trading Program and CAIR NOx and SO2 Trading Programs).
						  CAIR NOx Ozone Season allowance allocations for the control period starting May
						  1, 2010, and for each control period thereafter, will be distributed in
						  accordance with Subchapter D (relating to CAIR NOx and
						  SO2 Trading Programs).
(b)
Termination and retirement of
						  allowances
. NOx allowances already allocated under this subchapter for
						  2009 or later are terminated and may not be used for compliance with the CAIR
						  NOx Annual Trading Program or the CAIR NOx Ozone Season Trading Program, as
						  those terms are defined in 40 CFR 96.102 and
						  96.302 (relating to definitions).
						  By January 1, 2009, the Department will permanently retire the Commonwealth's
						  non-EGU NOx Trading Program Budget of 3,619 allowances established in §
													145.40 (relating to State Trading
						  Program budget).
(c)
Requirements replaced
. The emission limitations and monitoring
						  requirements established in Subchapter A (relating to NOx Budget Trading
						  Program) are replaced by the requirements in Subchapter D beginning with the
						  May 1, 2010, control period. If the owner or operator of a NOx budget unit or
						  CAIR NOx Ozone Season unit, as defined in
						  40 CFR
						  96.302, has failed to demonstrate compliance
						  with §
													145.54 (relating to compliance),
						  the provisions in 40 CFR
						  96.354 (relating to compliance with CAIR NOx
						  emissions limitation) shall be used to withhold CAIR NOx Ozone Season
						  allowances, as that term is defined in
						  40 CFR
						  96.302, in calendar year 2010 and beyond. If
						  no CAIR NOx Ozone Season allowances are provided to the unit under §
													145.221 (relating to timing
						  requirements for CAIR NOx Ozone Season allowance allocations), the owner or
						  operator of the unit shall acquire and retire a number of CAIR NOx Ozone Season
						  allowances as specified in 40 CFR 96.354.
(d)
Non-EGU NOx Trading Program
						  Budget
. For units subject to the applicability requirements of §?
						  145.4 (relating to applicability), but not subject to the CAIR NOx Ozone Season
						  Trading Program requirements of Subchapter D, the following requirements apply:
(1)
Statewide limitation
.
						  The sum of NOx ozone season emissions from all units subject to this subsection
						  may not exceed the Commonwealth's non-EGU NOx Trading Program budget of 3,619
						  tons during any ozone season.
(2)
CAIR NOx Ozone Season allowances
. All units subject to this
						  subsection shall monitor and report NOx emissions in accordance with 40 CFR
						  Part 96 , Subpart HHHH (relating to monitoring and reporting), and establish a
						  CAIR-authorized account representative and general account, in accordance with
						  40 CFR Part 96, Subparts BBBB and FFFF (relating to CAIR designated
						  representative for CAIR NOx Ozone Season sources; and CAIR NOx Ozone Season
						  Allowance Tracking System), incorporated into Subchapter D by reference, for
						  the purposes of ensuring continued compliance with the non-EGU NOx Trading
						  Program budget limitation of paragraph (1) and of retiring CAIR NOx Ozone
						  Season allowances.
(3)
CAIR
						  NOx allowances
. All units subject to this subsection shall establish a
						  CAIR-authorized account representative and general account in accordance with
						  40 CFR Part 96, Subparts BB and FF (relating to CAIR designated representative
						  for CAIR NOx sources; and CAIR NOx allowance tracking system), incorporated
						  into Subchapter D by reference, for the purpose of retiring CAIR NOx
						  allowances.
(4)
Emissions
						  below Statewide limitation
. If the total ozone season emissions from
						  all units subject to this subsection are less than 3,438 tons of NOx, the
						  Department's permanent retirement of allowances covers all applicable emissions
						  and no additional account transactions are required by the units covered under
						  this subsection.
(5)
Allowable emissions per unit
. By January 31, 2009, and by
						  January 31 of each year thereafter, the Department will determine the allowable
						  amount of NOx emissions for the next ozone season for each unit subject to this
						  subsection, as follows:
Allowable emission rate X each unit's heat input
Where
"Allowable emission rate" =
3,438 tons of NOx
____________
Combined heat input of all units during
the most recent ozone season
(6)
Allowance surrender for excess
						  emissions
. If the combined NOx emissions from all units subject to
						  this subsection exceed 3,438 tons in an ozone season, then a unit whose actual
						  emissions exceed the unit's allowable emissions for that ozone season, as
						  determined under paragraph (5), shall surrender to the Department by April 30
						  of the year following the ozone season one CAIR NOx Ozone Season allowance and
						  one CAIR NOx allowance for each ton of excess emissions. A unit whose excess
						  emissions are 0.5 ton or greater of the next excess ton shall surrender 1 full
						  ton of CAIR NOx allowances (banked or current) for that excess emission. Units
						  under common ownership may include the allowable and actual emissions from
						  multiple units to determine whether a unit must surrender allowances.
(7)
Surrender procedure
. To
						  surrender allowances under paragraph (6), an owner or operator of a unit shall
						  surrender the required CAIR NOx Ozone Season allowances and CAIR NOx allowances
						  to the Department's designated NOx allowance tracking system account and
						  provide to the Department, in writing, the following:
(i) The serial number of each allowance
						  surrendered.
(ii) The calculations
						  used to determine the quantity of allowances required to be
						  surrendered.
(8)
Failure to surrender allowances
. If an owner or operator fails
						  to comply with paragraph (6), the owner or operator shall by June 30 surrender
						  three CAIR NOx Ozone Season allowances and three CAIR NOx allowances of the
						  current or later year vintage for each ton of excess emissions as calculated
						  under paragraph (6).
(9)
Liability not affected
. The surrender of CAIR NOx ozone season
						  allowances and CAIR NOx allowances under paragraph (6) does not affect the
						  liability of the owner or operator of the unit for any fine, penalty or
						  assessment, or an obligation to comply with any other remedy for the same
						  violation, under the CAA or the act.
(i) For
						  purposes of determining the number of days of violation, if a facility has
						  excess emissions for the period May 1 through September 30, each day in that
						  period (153 days) constitutes a day in violation unless the owner or operator
						  of the unit demonstrates that a lesser number of days should be
						  considered.
(ii) Each ton of excess
						  emissions is a separate violation.
(10)
Allowance retirement
.
						  The Department will permanently retire to the Department's CAIR NOx retirement
						  account the allowances surrendered under paragraphs (6)-(9).
(11)
Actual emissions below allowable
						  emissions
. If a facility's allowable emissions exceed the facility's
						  actual emissions for an ozone season, the owner or operator may deduct the
						  difference or any portion of the difference from the actual emissions of units
						  under the facility's common control that are subject to §§
														129.201-129.203 (relating to boilers;
						  stationary combustion turbines; and stationary internal combustion
						  engines).
(12)
Corrections
. One hundred and eighty-one tons of allowable NOx
						  emissions are available to the Department annually for accounting
						  corrections.