§ 145.43. Compliance supplement pool.
(a) For any NOx budget unit that reduces its NOx emission rate in the 2001 or 2002 control period, the owners and operators may request early reduction credits in accordance with the following requirements:
(1) Each NOx budget unit for which the owners and operators intend to request, or request, any early reduction credits in accordance with paragraph (4) shall monitor and report NOx emissions in accordance with this subchapter starting in the 2000 control period and for each control period for which the early reduction credits are requested. The unit’s percent monitor data availability may not be less that 90% during the 2000 control period, and the unit shall be in compliance with applicable state or Federal NOx emission control requirements during 2000—2002.
(2) NOx emission rate and heat input under paragraphs (3) and (4) shall be determined in accordance with this subchapter.
(3) Each NOx budget unit for which the owners and operators intend to request, or request, any early reduction credits under paragraph (4) shall reduce its NOx emission rate, for each control period for which early reduction credits are requested, to less than both 0.25 lb/mmBtu and 80% the unit’s NOx emission rate in the 2000 control period.
(4) The NOx authorized account representative of an NOx budget unit that meets the requirements of paragraphs (1) and (3) may submit to the Department a request for early reduction credits for the unit based on NOx emission rate reductions made by the unit in the control period for 2001 or 2002.
(i) In the early reduction credit request, the NOx authorized account representative may request early reduction credits for the control period in an amount equal to the unit’s heat input for the control period multiplied by the difference between 0.25 lb/mmBtu and the unit’s NOx emission rate for the control period, divided by 2000 lb/ton, and rounded to the nearest whole number of tons.
(ii) The early reduction credit request shall be submitted, in a format specified by the Department, by February 1, 2003. Requests submitted after February 1, 2003, will not be accepted.
(b) For any NOx budget unit that is subject to the requirements of § § 123.101—123.120 (relating to NOx allowance requirements), the owners and operators may request early reduction credits in accordance with the following requirements:
(1) The NOx authorized account representative of the unit may submit to the Department a request for early reduction credits in an amount equal to the amount of banked allowances under § § 123.101—123.120 that were allocated for the control period in 2001 or 2002 and are held by the unit, in accordance § § 123.101—123.120, as of the date of submission of the request. During the entire control period in 2001 or 2002 for which the allowances were allocated, the unit shall have monitored and reported NOx emissions in accordance the Guidance for Implementation of Emission Monitoring Requirements for the NOx Budget Program (January 28, 1997).
(2) The early reduction credit request under paragraph (1) shall be submitted, in a format specified by the Department, by February 1, 2003. Requests submitted after February 1, 2003, will not be accepted.
(3) The NOx authorized account representative of the unit may not submit a request for early reduction credits under paragraph (1) for banked allowances under the Ozone Transport Commission NOx Budget Program that were allocated for any control period during which the unit made NOx emission reductions for which he submits a request for early reduction credits under subsection (a) for the unit.
(c) For a NOx budget unit that is subject to the requirements of § § 123.101—123.120 that installs selective catalytic reduction or selective noncatalytic reduction to reduce NOx emissions after May 1999, the owners and operators may request control equipment early reduction credits in accordance with the following requirements:
(1) Each NOx budget unit for which the owners and operators intend to request, or request early reduction credits in accordance with this subsection shall monitor and report NOx emissions in accordance with this chapter.
(2) The unit shall be in compliance with applicable State or Federal NOx control requirements.
(3) NOx emission rate and heat input under this subsection shall be determined in accordance with this subchapter.
(4) Each NOx budget unit shall reduce its NOx emissions, for each control period for which early reduction credits are requested, to less than the allowances for the unit established in Chapter 123, Appendix E.
(5) The early reduction credit request shall be submitted, in a format specified by the Department, by February 1, 2003. Requests submitted after February 1, 2003, will not be accepted.
(d) For a NOx budget unit that installs and operates innovative control technology, the owners and operators may request innovative technology early reduction credits in accordance with the following requirements:
(1) For purposes of this subsection, innovative control technology is any technology that reduces the emissions of multiple air contaminants, including, at a minimum, NOx, SO2 and mercury, through the application of technology or technology improvements not previously applied to NOx budget units in an amount greater than any applicable state or Federal requirement.
(2) The unit shall be in compliance with any applicable State or Federal NOx control requirements.
(3) NOx emission rate and heat input under this subsection shall be determined in accordance with this subchapter.
(4) The owners and operators of each NOx budget unit shall submit a proposal for the development, design and testing of innovative control technology including milestones for completing each phase of the proposal along with a proposal and justification for the number of innovative early reduction credits requested based on the overall air quality benefits of the innovative technology.
(5) The innovative technology proposal shall be completed by and the early reduction credits used by November 30, 2004.
(6) Failure to complete any phase of the proposal by the milestone date established under this section shall result in a loss of allowances in an amount equal to the amount of the innovative early reduction credits granted to the NOx budget unit.
(7) The early reduction credit request shall be submitted, in a format specified by the Department, by February 1, 2003. Requests submitted after February 1, 2003, will not be accepted.
(e) The Department will review each early reduction credit request submitted in accordance with subsections (a)—(d) and will allocate NOx allowances to NOx budget units in a given state and covered by the request as follows:
(1) Upon receipt of each early reduction credit request, the Department will make any necessary adjustments to the request to ensure that the amount of the early reduction credits requested meets the requirements of subsections (a)—(d).
(2) After February 1, 2003, the Department will publish in the Pennsylvania Bulletin a statement of the total number of early reduction credits requested by NOx budget units in the State.
(3) Pennsylvania’s compliance supplement pool is 15,763 NOx allowances.
(i) 1,576 NOx allowances are available for the control equipment early reduction credits established under subsection (c).
(ii) 1,576 NOx allowances are available for the innovative technology early reduction credits established under subsection (d).
(iii) 12,611 NOx allowances are available for the early reduction credits established under subsections (a) and (b).
(iv) Unused early reduction credits established under subparagraphs (i) and (ii) shall be available for the early reduction credits established under subsections (a) and (b).
(v) The compliance supplement pool for upwind states is listed in § 145.100(b) (relating to applicability to upwind states).
(4) If the compliance supplement pool for each of the categories of early reduction credits established in paragraph (3) has a number of NOx allowances not less than the amount of early reduction credits in all early reduction credit requests received under subsections (a)—(d) (as adjusted under subsection (e)(1)) submitted by February 1, 2003, the Department will allocate to each NOx budget unit covered by the request one allowance for each early reduction credit requested (as adjusted under paragraph (1)).
(5) If the compliance supplement pool has a smaller number of NOx allowances for any of the categories of early reduction credits established in paragraph (3) than the amount of early reduction credits in all early reduction requests under subsections (a)—(d) for 2001 and 2002 (as adjusted under paragraph (1)) submitted by February 1, 2003, the Department will allocate NOx allowances for each of the categories established in paragraph (3) to each NOx budget unit covered by the requests according to the following formula and rounding to the nearest whole number of NOx allowances as appropriate. This prorata allocation will be performed for allocations under subsections (c) and (d) and any requests for NOx allowances that are not fully allocated shall be available for allocation under subsections (a) and (b) if they otherwise qualify under those subsections:
unit’s allocation for early reduction credits = unit’s adjusted early reduction credits x (State’s compliance supplement pool ÷ total adjusted early reduction credits for all units)
where:
‘‘unit’s allocation for early reduction credits’’ is the number of NOx allowances allocated to the unit for early reduction credits.
‘‘unit’s adjusted early reduction credits’’ is the amount of early reduction credits requested for the unit for 2001 and 2002 in early reduction credit requests under subsection (a)—(d), as adjusted under paragraph (1).
‘‘States compliance supplement pool’’ is the number of NOx allowances for each category of early reduction credits established in paragraph (3).
‘‘total adjusted early reduction credits for all units’’ is the amount of early reduction credits requested for all units for 2001 and 2002 in early reduction credit requests under subsections (a)—(d), as adjusted under paragraph (1).
(6) By April 1, 2003, the Department will determine the allocations under paragraph (4) or (5). The Department will make available to the public each determination of NOx allowance allocations and will provide an opportunity for comment. Based on these comments, the Department will adjust each determination to the extent necessary to ensure that it is in accordance with paragraph (1), (4) or (5).
(7) By May 1, 2003, the NOx Budget Administrator will record the allocations under paragraph (3) or (5).
(8) NOx allowances recorded under paragraph (7) may be deducted for compliance under § 145.54 (relating to compliance) for the control period in 2003 or 2004. Notwithstanding § 145.55(a) (relating to banking), the NOx Budget Administrator will deduct as retired any NOx allowance that is recorded under paragraph (7) and that is not deducted for compliance under § 145.54 for the control period in 2003 or 2004.
(9) NOx allowances recorded under paragraph (7) are treated as banked allowances in 2004 for the purposes of § § 145.54(f) and 145.55(b).
Cross References This section cited in 25 Pa. Code § 145.2 (relating to definitions); 25 Pa. Code § 145.4 (relating to applicability); 25 Pa. Code § 145.5 (relating to retired unit exemption); 25 Pa. Code § 145.54 (relating to compliance); 25 Pa. Code § 145.70 (relating to general monitoring requirements); 25 Pa. Code § 145.74 (relating to recordkeeping and reporting); and 25 Pa. Code § 145.81 (relating to opt-in source general provisions).
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