[34 Pa.B. 6509]
[Continued from previous Web Page] Emission Accountability
One commentator stated that § 129.204(b)(2)(ii) should include consideration for sources without final permits that are operating under plan approval and which may not have a short term limit (hourly limit) in the permit. The final-form regulation provides for sources operating under plan approval and those without express hourly emission limits.
One commentator stated that the emission monitoring methodology should be the most protective of public health. The commentator suggested that the rule specify that the most recent permit limits or best available control technology (BACT) or best available technology (BAT) limits be used. The Department responds that those lower limits continue to apply to the extent that there are units with permit limits lower than those in this final-form rulemaking. The imposition of BACT or BAT requirements on sources other than those already subject to the BACT or BAT requirements would not be cost-effective.
Several commentators suggested that the requirement in § 145.143(h) to notify the Department prior to May 1 each year if allowances will be used that season should be eliminated since it is difficult to predict if this will be the case. The provision has been deleted from the final-form rulemaking.
Two commentators stated that, based on experience with other facilities, 1 year is insufficient to install and certify a monitor. The commentators suggested that a more realistic date or schedule should be included in the regulations. The Department responds that most facilities are able to install and certify CEMS within 1 year. The regulated source owners and operators have been aware of the pending CEMS requirement since prior to October 2002.
One commentator stated that the CEMS requirements are more stringent than the Federal requirements and that stack tests would suffice. The Department responds that the CEMS requirements are necessary and permissible. There are no sufficiently accurate alternatives for monitoring NOx emissions from cement kilns. The majority of Pennsylvania kilns have CEMS. Monitoring data from cement kilns with CEMS show that emission variability is large and unpredictable over both short and long time scales. It is also not possible to offer flexible compliance alternatives based on averaging or allowance trading without accurate monitoring.
The same commentator asked whether the data availability requirements in § 139.101(12) apply. All Chapter 139 requirements are applicable if the owner or operator elects to use a Chapter 139 monitor. If a Part 75 monitor is selected, the requirements of Part 75 apply.
Two commentators requested a clarification or more specific guidance in the regulations or CEMS manual regarding how to substitute missing data from CEMS to comply with these regulations. The commentators suggested using previous 24-hour data or ozone season averages. The final-form rulemaking specifies that invalidated (or missing) data must be substituted with data calculated using the unit's potential emissions. The owner or operator may request, in writing, to use any alternative that adequately reflects the actual emissions.
One commentator suggested that the rule specify that the CEMS requirement applies only during the ozone season. The only time period for which the final-form rulemaking requires NOx emissions monitoring is the time period of May 1 through September 30 each year.
The same commentator asked whether the CEMS reports should be submitted on a calendar quarter basis and whether emission in lbs/hr should be reported. The final-form rulemaking specifies that CEMS reports must be submitted as required under Chapter 139 or 40 CFR Part 75, as applicable. Both require the submission of quarterly reports of emission rates in terms of the applicable standards.
Three commentators stated that emergency combustion turbines and engine units with 5% capacity factor limits should be exempt because they would be forced to run to do emission testing to comply. The commentators stated that these units do not have emission limits in their permits and the emissions are calculated using AP-42 emission factors. The final-form rulemaking allows the use of the permit limit in lieu of testing to calculate actual emissions. The final-form rulemaking specifically provides for the use of emission factors from AP-42 or the EPA's ''Factor Information Retrieval (Fire)'' Data System to determine emissions without the need for additional testing.
Renewable Energy
One commentator supported the ability to create credit from renewable power and suggested that it be expanded to the entire State, as is done in other states. The Department responds that the allowance provisions in the final-form rulemaking are different from the programs in other states. The reason the provisions do not provide for Statewide credit is to spur renewable generation within the five-county Southeast Pennsylvania ozone nonattainment area.
One commentator expressed strong support for the Zero Emission Reduction Credit provision. The commentator stated that the provision will have only a very small impact on other industries buying and selling NOx allowances, but will have a positive impact on the ability of persons or companies to build renewable energy generation. The commentator stated that the credit is not a subsidy but a recognition of the improved air quality that the avoided NOx represents to society. The Department agrees.
Two commentators stated that the definition of Tradable Renewable Credit (TRC) should clearly prohibit biomass, incineration, and hydro as renewable resources, and that the zero emission character should be retained. The Department responds that the qualifying renewable power is limited to zero emission generation and excludes hydropower from dams.
One commentator stated that the credit, if retained, should also be given for power generated by a dam since it has zero emissions. The commentator suggested that this should be the sole determinant. The Department responds that the goal of the final-form rulemaking is to reduce ozone. The zero emission credit provisions will reduce ozone by encouraging the installation of new zero emission renewable energy generation resources. Dams are not known to emit significant levels of NOx, but can emit varying levels of other pollutants, including VOCs that contribute to ozone production. Non-zero emission renewable energy sources are not included because quantification of the overall air quality benefits must be done on an individual basis, entails a degree of uncertainty, and imposes costs and administrative requirements that are beyond the scope of this initiative.
One commentator stated that mobile sources should not be allowed to generate credits under these rules. The Department disagrees. In the event new zero emission mobile activities are developed to replace existing activities and the emission reduction benefits can be quantified, the opportunity for credit generation should be available. The mobile emission reductions would only be creditable if they were surplus, permanent, quantifiable, and Federally enforceable emission reductions.
Two commentators stated that the demand for allowances from the set-aside should be modest because the potential for wind is small in the five-county Southeast Pennsylvania ozone nonattainment area and the cost of the most likely source, photo-voltaics, is relatively high. The commentators stated that this pilot program is low risk and a worthwhile opportunity to explore market-driven renewable programs and should be retained. The Department agrees.
One commentator suggested that allowances should be deducted from the new source set-aside to create the credits for renewable energy. The commentator suggested that a 15% allocation to renewable energy generation is possible using the 5% set-aside and should be made available for this purpose. The Department disagrees. The final-form rulemaking authorizes deducting allowances from the set-aside only when a unit affected by an emissions limit in §§ 129.201--129.301 uses a renewable energy credit against its actual emissions that are in excess of those limits. The purpose is to provide a positive incentive to the owners and operators of these units to turn to renewable energy as an alternative to increasing output from NOx emitting units.
One commentator expressed support for the zero emission renewable credit provisions. The commentator stated that fine particulate, ozone and NOx will be reduced to the benefit of public health. The commentator stated that these pollutants result in increased health care costs, lost workdays, and cardiopulmonary effects that may result in hospitalization or even death. The Department agrees.
The same commentator stated that the zero emission renewable credit provisions are a welcome and appropriate catalyst for the renewable energy industry in this Commonwealth, and pose no undue hardship on other industries. The commentator stated that the Department is acting responsibly by including this encouragement to the development of pollution-reducing energy generation technology and is supported because of the benefits to public health now and in the future. The Department agrees.
Three commentators stated that the 1.5 pound per MWH set-aside retirement has the potential to significantly reduce the amount of allowances available for new service units. The commentators stated that the amount of credit is ten times higher than that for new generation resources. One of the commentators suggested that if the provision is retained, 0.2 lb/MWH is more appropriate. The commentators stated that renewable energy generation threatens the economic viability of critical standby generation and that there are better ways for the state to promote renewables such as purchasing more of it. The commentators asked that the provision be eliminated. The Department disagrees. This provision will not materially impact the new source set-aside. This provision is only one part of a broader Pennsylvania initiative to encourage more environmentally friendly power sources.
One commentator stated that they commended the Department on the renewable energy portion of this rule. The commentator stated that Pennsylvania must reduce the air pollution impact of its energy production, and increasing the production of renewable energy is one of the most effective means to this end. The Department agrees.
Cement Kilns
Two commentators stated that the proposed FIP should be the basis for the emission limits. The emission limit contained in the final-form rulemaking is based upon the least stringent FIP limit.
Three commentators requested inter-company trading or participation in the allowance program, since this would encourage additional reductions in the cement industry. The commentators suggested that the enforceability issue could be rectified with a requirement for agreements between companies. The Department responds that the ability to trade allowances between companies requires emission limits to be established for each facility, and the limits to be protective of the overall SIP Call budget for the state. A minority of the industry indicates support for the ''opt-in'' approach, and given the competitive nature of the cement industry, a consensus on these limits would be difficult to establish and would require a lengthy process. A lengthy negotiation was conducted previously with regard to including the units in the NOx budget program. This negotiation led to no agreement among source operators.
One commentator suggested that the cement kiln emission limit should be lower than 6 pounds of NOx per ton of clinker to better protect human health. The commentator stated that best available control technology (BACT) and best available technology (BAT) levels of two to three pounds are achievable for precalciner kilns. The Department responds that the kilns that are achieving these low emission rates are required to continue to meet their permit limits that require these rates. The 6-pound per ton of clinker limit will require units that have not recently undergone BACT or BAT analysis to maintain their emissions at or below 6 pounds of NOx per ton of clinker.
One commentator stated that white cement kilns have different heat input and operating requirements than comparable kilns and should be given additional consideration regarding the emission limit in the rule. The commentator stated that the limit is inconsistent with the NOx SIP Call and represents a competitive disadvantage. The commentator stated that control technology is the preferred option to an emission-based limit. The Department responds that the budget for the NOx SIP Call includes controls for all kilns. The emission limit requires less control for the white cement kiln than that established in the budget. However, in conjunction with changes that have occurred at other facilities since the budget was established, the limit is adequate to meet the budget. Emission test data for the only white cement kiln in this Commonwealth indicate that the operators of the kiln have a demonstrated ability to meet the 6 pounds of NOx per ton of clinker limit.
One commentator stated that the limit of 6 pounds of NOx per ton of clinker emission is in accordance with the FIP and is reasonable for wet process kilns. The Department agrees.
The same commentators stated that the rules should contain provisions that will streamline the RACT and emission limits in these regulations. The Department responds that the RACT emission limits are rate-based limits that are based on previously required controls or operating practices, or both. The final-form rulemaking does not authorize the removal of previously established requirements.
G. Benefits, Costs and Compliance
Benefits
Overall, the citizens of this Commonwealth will benefit from this final-form rulemaking because the changes will result in improved air quality by reducing ozone and fine particulate precursor emissions and encourage new technologies and practices, which will reduce emissions. The final-form rulemaking will also reduce visibility impairment and acid deposition. Financial savings resulting from the final-form rulemaking in terms of effects on mortality, hospital admissions, acute bronchitis, acute respiratory systems, worker productivity, crops and forests could exceed $16 million per year, based on the EPA estimates.
Compliance Costs
The boilers, turbines and stationary internal combustion engines subject to the final-form Chapter 129 amendments are expected to reduce NOx emissions by approximately 3 tons per day in the Southeast Pennsylvania ozone nonattainment area. Emission reductions can be achieved through installation of control equipment, combustion unit modification or fuel switching. Cost to reduce emissions for these sources has been estimated to be $1,500 to $3,500 per ton of NOx for boilers; $3,000 per ton of NOx for turbines; and $1,700 to $4,400 per ton of NOx for stationary internal combustion engines. Cost estimates for the boilers, turbines and stationary internal combustion engines in the Southeast Pennsylvania ozone nonattainment area are within the recommended control cost range suggested by the Southeast Pennsylvania Ozone Stakeholder Working Group. The enhanced and simplified averaging and allowance compliance mechanisms will reduce average costs well below these estimates for operators of multiple units. A single unit without averaging opportunities that relies on allowances would also likely encounter costs well below the maximum estimates by obtaining allowances at the 2005 projected allowance cost of $2,000 per ton.
Large stationary internal combustion engines regulated by the final-form Chapter 145 regulations may install control equipment to meet the emission reduction requirements. Controls are estimated to cost $1,500 to $2,000 per ton of NOx reduced. Cement kilns may achieve emission reductions through improved fuel efficiency, resulting in a potential cost savings. The operators of three kilns will need to install continuous emission monitors at a cost of approximately $60,000 to $100,000 each.
Compliance Assistance Plan
The Department plans to educate and assist the regulated community and the public with understanding these new regulatory requirements through various means, including field inspector contacts, mailings and the Small Business Compliance Assistance Program.
Paperwork Requirements
Aside from electronic CEMS reports that will be required of the cement kiln owners or operators, the regulatory revisions will require a small amount of recordkeeping that is in addition to existing emission monitoring and reporting requirements, which includes the annual compliance calculations, test data generated (if any), and allowance transactions (if any).
H. Pollution Prevention
The Federal Pollution Prevention Act of 1990 established a National policy that promotes pollution prevention as the preferred means for achieving state environmental protection goals. The Department encourages pollution prevention, which is the reduction or elimination of pollution at its source, through the substitution of environmentally friendly materials, more efficient use of raw materials, or the incorporation of energy efficiency strategies. Pollution prevention practices can provide greater environmental protection with greater efficiency because they can result in significant cost savings to facilities that permanently achieve or move beyond compliance. This final-form rulemaking has incorporated the following pollution prevention provisions and incentives:
Section 129.205 provides for zero emission renewable energy production credit. This provision is intended to encourage the installation and production of new renewable generation. Production of energy from the renewable energy types authorized in this provision creates dramatically lower multi-media impacts than traditional energy production.
The overall structure of the emission requirements and compliance mechanism provides an incentive for greater production from cleaner units and encourages innovative ways to minimize emissions. Operators are given credit for implementing emission reduction measures that go beyond the minimum requirements. The emission requirements and compliance mechanism in these regulations provide a simple and flexible averaging mechanism to give a strong incentive for greater production from cleaner units and at the same time, a guaranteed reward for superior emissions control efforts.
I. Sunset Review
These regulations will be reviewed in accordance with the sunset review schedule published by the Department to determine whether the regulations effectively fulfill the goals for which they were intended.
J. Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on September 29, 2004, the Department submitted a copy of the notice of proposed rulemaking, published at 32 Pa.B. 5178, to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of the House and Senate Environmental Resources and Energy Committees for review and comment.
Under section 5(c) of the Regulatory Review Act, IRRC and the Committees were provided with copies of the comments received during the public comment period, as well as other documents when requested. In preparing these final-form regulations, the Department has considered all comments from IRRC, the Committees and the public.
Under section 5.1(j.2) of the Regulatory Review Act, on November 3, 2004, these final-form regulations were deemed approved by the House and Senate Committees. Under section 5.1(e) of the Regulatory Review Act, IRRC met on November 4, 2004, and approved the final-form rulemaking.
K. Findings of the Board
The Board finds that:
(1) Public notice of proposed rulemaking was given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and regulations promulgated thereunder in 1 Pa. Code §§ 7.1 and 7.2.
(2) A public comment period was provided as required by law, and all comments were considered.
(3) These regulations do not enlarge the purpose of the proposal published at 32 Pa.B. 5278.
(4) These regulations are necessary and appropriate for administration and enforcement of the authorizing acts identified in Section C of this order.
(5) These regulations are necessary for the Commonwealth to achieve and maintain ambient air quality standards and to satisfy related Federal Clean Air Act requirements.
(6) These regulations are necessary for the Commonwealth to avoid sanctions under the Federal Clean Air Act.
L. Order
The Board, acting under the authorizing statutes, orders that:
(a) The regulations of the Department, 25 Pa. Code Chapters 121, 129 and 145, are amended by amending §§ 121.1 and 145.42 and adding §§ 129.201--129.205, 145.111--145.113 and 145.141--145.143 to read as set forth in Annex A, with ellipses referring to the existing text of the regulations.
(b) The Chairperson of the Board shall submit this order and Annex A to the Office of General Counsel and the Office of Attorney General for review and approval as to legality and form, as required by law.
(c) The Chairperson of the Board shall submit this order and Annex A to IRRC and the Senate and House Environmental Resources and Energy Committees as required by the Regulatory Review Act.
(d) The Chairperson of the Board shall certify this order and Annex A and deposit them with the Legislative Reference Bureau, as required by law.
(e) This order shall take effect immediately upon publication in the Pennsylvania Bulletin.
KATHLEEN A. MCGINTY
Chairperson(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 34 Pa.B. 6292 (November 20, 2004.))
Fiscal Note: Fiscal Note 7-378 remains valid for the final adoption of the subject regulations.
Annex A
TITLE 25. ENVIRONMENTAL PROTECTION
PART I. DEPARTMENT OF ENVIRONMENTAL PROTECTION
Subpart C. PROTECTION OF NATURAL RESOURCES
ARTICLE III. AIR RESOURCES
CHAPTER 121. GENERAL PROVISIONS § 121.1. Definitions.
The definitions in section 3 of the act (35 P. S. § 4003) apply to this article. In addition, the following words and terms, when used in this article, have the following meanings, unless the context clearly indicates otherwise:
* * * * * MWH--Megawatt Hour
* * * * * ppmvd--Parts per million dry volume.
* * * * * Stationary internal combustion engine--For purposes of § 129.203 (relating to stationary internal combustion engines), an internal combustion engine of the reciprocating type that is either attached to a foundation at a facility or is designed to be capable of being carried or moved from one location to another and is not a mobile air contamination source.
* * * * * Tradable renewable certificate--A certificate issued by a tradable renewable certificate issuing body in recognition of renewable energy generation. A certificate represents a specific amount of electricity or thermal power equivalent that was generated.
Tradable renewable certificate issuing body--An entity approved by the Department to issue and account for tradable renewable certificates in accordance with a protocol consistent with the laws and renewable energy programs of the Commonwealth.
* * * * *
CHAPTER 129. STANDARDS FOR SOURCES
ADDITIONAL NOx REQUIREMENTS § 129.201. Boilers.
(a) By May 1, 2005, and each year thereafter, the owner or operator of a boiler that meets the definition of a boiler in § 145.2 (relating to definitions) located in Bucks, Chester, Delaware, Montgomery or Philadelphia County shall comply with this section and § 129.204 (relating to emission accountability). This section does not apply to naval marine combustion units operated by the United States Navy for the purposes of testing and operational training or to units that combust municipal waste at a facility that is permitted as a resource recovery facility under Part I, Subpart D, Article VIII (relating to municipal waste).
(b) By October 31, 2005, and each year thereafter, the owner or operator of the boiler shall calculate the difference between the actual emissions from the unit for the period from May 1 through September 30 and the allowable emissions for that period.
(c) The owner or operator shall calculate allowable emissions by multiplying the unit's cumulative heat input for the period by the applicable emission rate set forth in paragraph (1) or (2).
(1) The emission rate for a boiler with a nameplate rated capacity of greater than 100 million Btu/hour but less than or equal to 250 million Btu/hour shall be as follows:
(i) For a boiler firing natural gas or a boiler firing a noncommercial gaseous fuel, 0.10 pounds NOx per million Btu heat input.
(ii) For a boiler firing solid or liquid fuel, 0.20 pounds of NOx per million Btu heat input.
(2) The emission rate for a boiler with a nameplate rated capacity of greater than 250 million Btu/hour that is not subject to §§ 145.1--145.7, 145.10--145.14, 145.30, 145.31, 145.40--145.43, 145.50--145.57, 145.60--145.62 and 145.70--145.76 shall be 0.17 pounds NOx per million Btu heat input. The owner or operator of a boiler may demonstrate compliance with this paragraph through the provisions of §§ 145.80--145.88 (relating to opt-in process).
§ 129.202. Stationary combustion turbines.
(a) By May 1, 2005, and each year thereafter, the owner or operator of a stationary combustion turbine with a nameplate rated capacity of greater than 100 million Btu/hour located in Bucks, Chester, Delaware, Montgomery or Philadelphia County shall comply with this section and § 129.204 (relating to emission accountability). This section does not apply to naval marine stationary combustion turbines operated by the United States Navy for the purposes of testing and operational training.
(b) By October 31, 2005, and each year thereafter, the owner or operator of the stationary combustion turbine shall calculate the difference between the actual emissions from the unit for the period from May 1 through September 30 and the allowable emissions for that period.
(c) The owner or operator shall calculate allowable emissions by multiplying the unit's cumulative heat input for the period by the applicable emission rate set forth in paragraph (1) or (2).
(1) The emission rate for a stationary combustion turbine with a nameplate rated capacity of greater than 100 million Btu/hour but less than or equal to 250 million Btu/hour heat input shall be as follows:
(i) A combined cycle or regenerative cycle stationary combustion turbine:
(A) When firing natural gas or a noncommercial gaseous fuel, 0.17 lbs NOx /MMBtu or 1.3 lbs NOx/MWH.
(B) When firing oil, 0.26 lbs NOx/MMBtu or 2 lbs NOx/MWH.
(ii) A simple cycle stationary combustion turbine:
(A) When firing natural gas or a noncommercial gaseous fuel 0.20 lbs NOx/MMBtu or 2.2 lbs NOx/MWH.
(B) When firing oil, 0.30 lbs NOx/MMBtu or 3 lbs NOx/MWH.
(2) The emission rate for a stationary combustion turbine with a nameplate rated capacity of greater than 250 million Btu/hour heat input that is not subject to §§ 145.1--145.7, 145.10--145.14, 145.30, 145.31, 145.40--145.43, 145.50--145.57, 145.60--145.62 and 145.70--145.76 is 0.17 lb NOx per million Btu heat input. The owner or operator of a stationary combustion turbine may demonstrate compliance with this paragraph through the provisions of §§ 145.80--145.88 (relating to opt-in process).
§ 129.203. Stationary internal combustion engines.
(a) By May 1, 2005, the owner or operator of a stationary internal combustion engine rated at greater than 1,000 horsepower and located in Bucks, Chester, Delaware, Montgomery or Philadelphia County shall comply with this section and § 129.204 (relating to emission accountability). This section does not apply to naval marine combustion units operated by the United States Navy for the purposes of testing and operational training or to stationary internal combustion engines regulated under Chapter 145, Subchapter B (relating to emissions of NOx from stationary internal combustion engines).
(b) By October 31, 2005, and each year thereafter, the owner or operator of the stationary internal combustion engine shall calculate the difference between the actual emissions from the unit during the period from May 1 through September 30 and the allowable emissions for that period.
(c) The owner or operator shall calculate allowable emissions by multiplying the cumulative hours of operations for the unit for the period by the horsepower rating of the unit and by the applicable emission rate set forth in paragraph (1) or (2).
(1) For a spark-ignited engine, 3.0 grams of NOx per brake horsepower-hour.
(2) For a compression ignition stationary internal combustion engine firing diesel fuel or a combination of diesel fuel and natural gas, 2.3 grams of NOx per brake horsepower-hour.
(d) Emissions from a stationary internal combustion engine that has been or is replaced by an electric motor may be counted as allowable emissions for purposes of this section and § 129.204, as follows:
(1) For a replaced spark-ignited engine, 3.0 grams of NOx per brake horsepower-hour of the replacement motor, less 1.5 pounds of NOx per MWH of electricity consumed by the replacement motor.
(2) For a replaced compression ignition stationary internal combustion engine that fired diesel fuel or a combination of diesel fuel and natural gas, 2.3 grams of NOx per brake horsepower-hour, less 1.5 pounds of NOx per MWH of electricity consumed by the replacement motor.
§ 129.204. Emission accountability.
(a) This section applies to units described in §§ 129.201--129.203 (relating to boilers; stationary combustion turbines; and stationary internal combustion engines).
(b) The owner or operator shall determine actual emissions in accordance with one of the following:
(1) If the owner or operator of the unit is required to monitor NOx emissions with a CEMS operated and maintained in accordance with a permit or State or Federal regulation, the CEMS data reported to the Department to comply with the monitoring and reporting requirements of this article shall be used. Any data invalidated under Chapter 139 (relating to sampling and testing) data shall be substituted with data calculated using the potential emission rate for the unit or, if approved by the Department in writing, an alternative amount of emissions that is more representative of actual emissions that occurred during the period of invalid data.
(2) If the owner or operator of the unit is not required to monitor NOx emissions with a CEMS, one of the following shall be used to determine actual emissions of NOx:
(i) The 1-year average emission rate calculated from the most recent permit emission limit compliance demonstration test data for NOx.
(ii) The maximum hourly allowable NOx emission rate contained in the permit or the higher of the following:
(A) The highest rate determined by use of the emission factor for the unit class contained in the most up-to date version of the EPA publication, ''AP-42 Compilation of Air Pollution Emission Factors.''
(B) The highest rate determined by use of the emission factor for the unit class contained in the most up-to date version of EPA'S ''Factor Information Retrieval (FIRE)'' data system.
(iii) CEMS data, if the owner or operator elects to monitor NOx emissions with a CEMS. The owner or operator shall monitor emissions and report the data from the CEMS in accordance with Chapter 139 or Chapter 145 (relating to interstate pollution transport reduction). Any data invalidated under Chapter 139 shall be substituted with data calculated using the potential emission rate for the unit or, if approved by the Department in writing, an alternative amount of emissions that is more representative of actual emissions that occurred during the period of invalid data.
(iv) An alternate calculation and recordkeeping procedure based upon emissions testing and correlations with operating parameters. The operator of the unit shall demonstrate that the alternate procedure does not underestimate actual emissions throughout the allowable range of operating conditions. The alternate calculation and recordkeeping procedures must be approved by the Department, in writing, prior to implementation.
(c) The owner or operator of a unit subject to this section shall surrender to the Department one NOx allowance, as defined in § 145.2 (relating to definitions), for each ton of NOx by which the combined actual emissions exceed the allowable emissions of the units subject to this section at a facility from May 1 through September 30. The surrendered NOx allowances shall be of current year vintage. For the purpose of determining the amount of allowances to surrender, any remaining fraction of a ton equal to or greater than 0.50 ton is deemed to equal 1 ton and any fraction of a ton less than 0.50 ton is deemed to equal zero tons.
(d) If the combined allowable emissions from units subject to this section at a facility from May 1 through September 30 exceed the combined actual emissions from units subject to this section at the facility during the same period, the owner or operator may deduct the difference or any portion of the difference from the amount of actual emissions from units subject to this section at the owner or operator's other facilities.
(e) By November 1, 2005, and by November 1 of each year thereafter, an owner or operator of a unit subject to this section shall surrender the required NOx allowances to the Department's designated NOx allowance tracking system account and provide to the Department, in writing, the following:
(1) The serial number of each NOx allowance surrendered.
(2) The calculations used to determine the quantity of NOx allowances required to be surrendered.
(f) If an owner or operator fails to comply with subsection (e), the owner or operator shall by December 31 surrender three NOx allowances of the current or later year vintage for each NOx allowance that was required to be surrendered by November 1 of that year.
(g) The surrender of NOx allowances under subsection (f) 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.
(1) 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.
(2) Each ton of excess emissions is a separate violation.
§ 129.205. Zero emission renewable energy production credit.
In calculating actual emissions from a facility under § 129.204 (relating to emission accountability), the owner or operator may deduct 1.5 pounds of NOx per MWH of electricity or thermal power equivalent for each MWH of zero emission renewable energy produced, if the following conditions are met:
(1) The zero emission renewable energy production is certified in a tradable renewable certificate.
(2) The zero emission renewable energy was generated by a power source that produced zero emissions and used 100% renewable energy, such as solar or wind power, in producing the renewable energy. For hydropower, the power must be generated without the use of a dam.
(3) The zero emission renewable energy power source was originally brought into production on or after December 11, 2004.
(4) The zero emission renewable energy power source is located in Bucks, Chester, Delaware, Montgomery or Philadelphia County.
(5) The owner or operator surrenders the renewable tradable certificate to the Department.
(6) The owner or operator certifies that the conditions of this section have been satisfied.
CHAPTER 145. INTERSTATE POLLUTION
TRANSPORT REDUCTION
Subchapter A. NOx BUDGET TRADING PROGRAM
NOx ALLOWANCE ALLOCATIONS § 145.42. NOx allowance allocations.
* * * * * (d) For each control period specified in § 145.41(d), the Department will allocate NOx allowances to NOx budget units in a given State under § 145.4(a) (except for units exempt under § 145.4(b)) that commence operation, or are projected to commence operation, on or after May 1, 1997 (for control periods under § 145.41(a)); May 1, 2003 (for control periods under § 145.41(b)); and May 1 of the year 5 years before the beginning of the group of 5 years that includes the control period (for control periods under § 145.41(c)). The Department may also use this set-aside to address allocation revisions to units under subsections (a)--(c). For each ton of NOx deducted under § 129.205 (relating to zero emission renewable energy production credit), the Department will retire one NOx allowance from the allowances in the set-aside for the subsequent control period. The Department will make the allocations under this subsection in accordance with the following procedures:
* * * * *
Subchapter B. EMISSIONS OF NOx FROM
STATIONARY INTERNAL COMBUSTION ENGINES Sec.
145.111. Applicability. 145.112. Definitions. 145.113. Standard requirements. § 145.111. Applicability.
(a) An owner or operator of an engine described in subsection (c) that emitted 153 tons or more of NOx from May 1 through September 30 in any year from 1995 through 2004 shall comply with this subchapter by May 1, 2005, and each year thereafter.
(b) An owner or operator of an engine described in subsection (c) that emits 153 tons or more of NOx from May 1 through September 30 in any year after 2004 shall comply with this subchapter by May 1 of the following calendar year and each year thereafter.
(c) Subsections (a) and (b) apply to the following engines:
(1) A rich burn or lean burn stationary internal combustion engine with an engine rating equal to or greater than 2,400 brake horsepower.
(2) A diesel stationary internal combustion engine with an engine rating equal to or greater than 3,000 brake horsepower.
(3) A dual-fuel stationary internal combustion engine with an engine rating equal to or greater than 4,400 brake horsepower.
§ 145.112. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
CEMS--Continuous Emission Monitoring System--The equipment required under this subchapter or Chapter 139 (relating to sampling and testing) to sample, analyze, measure and provide, by readings taken at least every 15 minutes of the measured parameters, a permanent record of NOx emissions.
Diesel stationary internal combustion engine--A compression-ignited two- or four-stroke engine in which liquid fuel injected into the combustion chamber ignites when the air charge has been compressed to a temperature sufficiently high for auto-ignition.
Dual-fuel stationary internal combustion engine--A compression-ignited stationary internal combustion engine that is burning liquid fuel and gaseous fuel simultaneously.
Engine rating--The output of an engine as determined by the engine manufacturer and listed on the nameplate of the unit, regardless of any derating.
Lean-burn stationary internal combustion engine--Any two- or four-stroke spark-ignited engine that is not a rich-burn stationary internal combustion engine.
Rich-burn stationary internal combustion engine--A two- or four-stroke spark-ignited engine where the manufacturer's original recommended operating air/fuel ratio divided by the stoichiometric air/fuel ratio is less than or equal to 1.1.
Stationary internal combustion engine--For the purposes of this subchapter, an internal combustion engine of the reciprocating type that is either attached to a foundation at a facility or is designed to be capable of being carried or moved from one location to another and is not a mobile air contamination source.
Stoichiometric air/fuel ratio--The air/fuel ratio where all fuel and all oxygen in the air/fuel mixture will be consumed.
Unit--An engine subject to this subchapter.
§ 145.113. Standard requirements.
(a) The owner or operator of a unit subject to this subchapter shall calculate the difference between the unit's actual emissions from May 1 through September 30 and the allowable emissions for that period by the following dates:
(1) For a unit described in § 145.111(a) (relating to applicability), by October 31, 2005, and each year thereafter.
(2) For a unit described in § 145.111(b), by October 31 of the calendar year following the year that this subchapter becomes applicable to the unit and each year thereafter.
(b) The owner or operator shall calculate allowable emissions by multiplying the unit's cumulative hours of operation for the period by the unit's horsepower rating and the unit's applicable emission rate set forth in paragraph (1), (2) or (3).
(1) The emission rate for a rich burn stationary internal combustion engine with an engine rating equal to or greater than 2,400 brake horsepower shall be 1.5 grams per brake horsepower-hour.
(2) The emission rate for a lean burn stationary internal combustion engine with an engine rating equal to or greater than 2,400 brake horsepower shall be 3.0 grams per brake horsepower-hour.
(3) The emission rate for a diesel stationary internal combustion engine with an engine rating equal to or greater than 3,000 brake horsepower, or a dual-fuel stationary internal combustion engine with an engine rating equal to or greater than 4,400 brake horsepower shall be 2.3 grams per brake horsepower-hour.
(c) The owner or operator shall determine actual emissions by using one of the following:
(1) If the owner or operator of the unit is required to monitor NOx emissions with a CEMS operated and maintained in accordance with a permit or State or Federal regulation, data reported to the Department to comply with the monitoring and reporting requirements of this article. Any data invalidated under Chapter 139 (relating to sampling and testing) shall be substituted with data calculated using the potential emission rate for the unit or, if approved by the Department in writing, an alternative amount of emissions that is more representative of actual emissions that occurred during the period of invalid data.
(2) If the owner or operator of the unit is not required to monitor NOx emissions with a CEMS, one of the following shall be used to determine actual emissions of NOx:
(i) CEMS data, if the owner or operator elects to monitor NOx emissions with a CEMS. The owner or operator shall monitor emissions and report the data from the CEMS in accordance with Chapter 139 or Chapter 145 (relating to interstate pollution transport reduction). Any data invalidated under Chapter 139 shall be substituted with data calculated using the potential emission rate for the unit or, if approved by the Department in writing, an alternative amount of emissions that is more representative of actual emissions that occurred during the period of invalid data.
(ii) An alternate calculation and recordkeeping procedure based upon emissions testing and correlations with operating parameters. The operator of the unit shall demonstrate that the alternate procedure does not underestimate actual emissions throughout the allowable range of operating conditions. The alternate calculation and recordkeeping procedures must be approved by the Department, in writing, prior to implementation.
(iii) The average emission rate calculated from test data from NOx emission tests conducted from May 1 through September 30 of that year. The emissions tests must be conducted in accordance with the permit emission limit compliance monitoring procedures. Tests must be conducted at least once every 735 hours of operation. The Department may reduce the frequency of the emission testing for a unit based on the consistency of the data gathered from the testing. At least one test is required during the period of May 1 through September 30.
(d) The owner or operator of a unit subject to this section shall surrender to the Department one NOx allowance, as defined in § 145.2 (relating to definitions), for each ton of NOx by which the combined actual emissions exceed the allowable emissions of the units subject to this section at a facility from May 1 through September 30. The surrendered NOx allowances shall be of current year vintage. For the purposes of determining the amount of allowances to surrender, any remaining fraction of a ton equal to or greater than 0.50 ton is deemed to equal 1 ton and any fraction of a ton less than 0.50 ton is deemed to equal zero tons.
(e) If the combined allowable emissions from units subject to this subchapter at a facility from May 1 through September 30 exceed the combined actual emissions from units subject to this subchapter at the facility during the same period, the owner or operator may deduct the difference or any portion of it from the amount of actual emissions from units subject to this subchapter at the owner or operator's other facilities located in this Commonwealth for that same period.
(f) By November 1 of each year, an owner or operator of a unit subject to this subchapter shall surrender the required NOx allowances to the Department's designated NOx allowance tracking system account, as defined in § 121.1 (relating to definitions), and shall provide in writing to the Department the following:
(1) The serial number of each NOx allowance surrendered.
(2) The calculations used to determine the quantity of NOx allowances required to be surrendered.
(g) If an owner or operator fails to comply with subsection (f), the owner or operator shall by December 31 surrender three NOx allowances of the current or later year vintage for each nox allowance that was required to be surrendered by November 1.
(h) The surrender of NOx allowances under subsection (g) does not affect the liability of the owner or operator of units for any fine, penalty or assessment, or other obligation to comply with any other remedy for the same violation, under the CAA or the act.
(1) 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.
(2) Each ton of excess emissions is a separate violation.
Subchapter C. EMISSIONS OF NOx FROM CEMENT MANUFACTURING Sec.
145.141. Applicability. 145.142. Definitions. 145.143. Standard requirements. 145.144. Reporting, monitoring and recordkeeping. § 145.141. Applicability.
Beginning May 1, 2005, an owner or operator of a Portland cement kiln shall comply with this subchapter.
§ 145.142. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
CEMS--Continuous Emission Monitoring System--The equipment required under this subchapter or Chapter 139 (relating to sampling and testing) to sample, analyze, measure and provide, by readings taken at least every 15 minutes of the measured parameters, a permanent record of NOx emissions.
Clinker--The product of a Portland cement kiln from which finished cement is manufactured by milling and grinding.
Portland cement--A hydraulic cement produced by pulverizing clinker consisting essentially of hydraulic calcium silicates, usually containing one or more of the forms of calcium sulfate as an interground addition.
Portland cement kiln--A system, including any solid, gaseous or liquid fuel combustion equipment, used to calcine and fuse raw materials, including limestone and clay, to produce Portland cement clinker.
§ 145.143. Standard requirements.
(a) By October 31, 2005, and each year thereafter, the owner or operator of a Portland cement kiln shall calculate the difference between the actual emissions from the unit during the period from May 1 through September 30 and the allowable emissions for that period.
(b) The owner or operator shall determine allowable emissions by multiplying the tons of clinker produced by the Portland cement kiln for the period by 6 pounds per ton of clinker produced.
(c) The owner or operator shall install and operate a CEMS, and shall report CEMS emissions data, in accordance with the CEMS requirements of either Chapters 139 or 145 (relating to sampling and testing; and interstate pollution transport reduction) and calculate actual emis-sions using the CEMS data reported to the Department. Any data invali-dated under Chapter 139 shall besubstituted with data calculated using the potential emission rate for the unit or, if approved by the Department in writing, an alternative amount of emissions that is more representative of actual emissions that occurred during the period of invalid data.
(d) The owner or operator of a Portland cement kiln subject to this section shall surrender to the Department one NOx allowance, as defined in § 145.2 (relating to definitions), for each ton of NOx by which the combined actual emissions exceed the allowable emissions of the Portland cement kilns subject to this section at a facility from May 1 through September 30. The surrendered NOx allowances shall be of current year vintage. For the purposes of determining the amount of allowances to surrender, any remaining fraction of a ton equal to or greater than 0.50 ton is deemed to equal 1 ton and any fraction of a ton less than 0.50 ton is deemed to equal zero tons.
(e) If the combined allowable emissions from Portland cement kilns at a facility from May 1 through September 30 exceed the combined actual emissions from Portland cement kilns subject to this section at the facility during the same period, the owner or operator may deduct the difference or any portion of the difference from the amount of actual emissions from Portland cement kilns at the owner or operator's other facilities located in this Commonwealth for that period.
(f) By November 1, 2005, and each year thereafter, an owner or operator subject to this subchapter shall surrender the required NOx allowances to the Department's designated NOx allowance tracking system account, as defined in § 121.1 (relating to definitions), and shall provide in writing to the Department, the following:
(1) The serial number of each NOx allowance surrendered.
(2) The calculations used to determine the quantity of NOx allowances required to be surrendered.
(g) If an owner or operator fails to comply with subsection (f), the owner or operator shall by December 31 surrender three NOx allowances of the current or later year vintage for each NOx allowance that was required to be surrendered by November 1.
(h) The surrender of NOx allowances under subsection (g) does not affect the liability of the owner or operator of the Portland cement kiln 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.
(1) 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 Portland cement kiln demonstrates that a lesser number of days should be considered.
(2) Each ton of excess emissions is a separate violation.
[Pa.B. Doc. No. 04-2176. Filed for public inspection December 10, 2004, 9:00 a.m.]
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