25 Pa. Code § 145.42 - NO[x] allowance allocations
(a) Unit
heat input shall be calculated as follows:
(1) The heat input (in mmBtu) used for
calculating NOx allowance allocations for each
NOx budget unit under §
145.4 (relating to applicability)
will be as follows:
(i) For a
NOx allowance allocation under §
145.41(a)
(relating to timing requirement for NOx allowance
allocations).
(A) For a unit under §
145.4(a)(1), the
average of the two highest amounts of the unit's heat input for the control
periods in 1995-1998.
(B) For a
unit under §
145.4(a)(2), the
control period in 1995 or, if the Administrator determines that reasonably
reliable data are available for control periods in 1996-1998, the average of
the two highest amounts of the unit's heat input for the control periods in
1995-1998.
(ii) For a
NOx allowance allocation under §
145.41(b), the
unit's average heat input for the control periods in 2002-2004.
(iii) For a NOx
allowance allocation under §
145.41(c), the
unit's average heat input for the control period in the years that are 4, 5, 6,
7 and 8 years before the first year for which the allocation is being
calculated.
(2) The
unit's heat input for the control period in each year specified under paragraph
(1) will be determined in accordance with 40 CFR Part 75 (relating to
continuous emission monitoring). Notwithstanding the first sentence of this
paragraph (2), the following apply:
(b) For each group of five control periods
specified in §§
145.41(a)-(c),
the Department will allocate to all NOx budget units in
a given state under §
145.4(a)(1) that
commenced operation before May 1, 1997, for allocations under §
145.41(a), May 1,
2003, for allocations under §
145.41(b), and
May 1 of the year 5 years before the first year for which the allocation under
§
145.41(c) is
being calculated, a total number of NOx allowances equal
to 95% of the portion of the State's trading program budget under §
145.40 (relating to State Trading
Program budget) covering these units. The Department will allocate in
accordance with the following procedures:
(1)
The Department will allocate NOx allowances to each
NOx budget unit under §
145.4(a)(1) for
each control period in an amount equaling 0.15 lb/mmBtu multiplied by the heat
input determined under subsection (a), divided by 2,000 lb/ton, and rounded to
the nearest whole number of NOx allowances as
appropriate.
(2) If the initial
total number of NOx allowances allocated to all
NOx budget units under §
145.4(a)(1) in
the state for a control period under subsection (b)(1) does not equal 95% of
the portion of the State's trading program budget under §
145.40 covering these units, the
Department will adjust the total number of NOx
allowances allocated to all these NOx budget units for
the control period under paragraph (1) so that the total number of
NOx allowances allocated equals 95% of the portion of
the State's trading program budget. This adjustment will be made by multiplying
each unit's allocation by 95% of the portion of the State's trading program
budget; dividing by the total number of NOx allowances
allocated under paragraph (1) for the control period; and rounding to the
nearest whole number of NOx allowances as appropriate.
(c) For each group of
five control periods specified in §
145.41(a)-(c),
the Department will allocate to all NOx budget units in
a given state under §
145.4(a)(2) that
commenced operation before May 1, 1997, for allocations under §
145.41(a), May 1,
2003, for allocations under §
145.41(b), and
May 1 of the year 5 years before the first year for which the allocation under
§
145.41(c) is
being calculated, a total number of NOx allowances equal
to 95% of the portion of the State's trading program budget under §
145.40 covering these units. The
Department will allocate in accordance with the following procedures:
(1) The Department will allocate
NOx allowances to each NOx budget
unit under §
145.4(a)(2) for
each control period in an amount equaling 0.17 lb/mmBtu multiplied by the heat
input determined under subsection (a), divided by 2,000 lb/ton, and rounded to
the nearest whole number of NOx allowances as
appropriate.
(2) If the initial
total number of NOx allowances allocated to all
NOx budget units under §
145.4(a)(2) in
the state for a control period under subsection (c)(1) does not equal 95% of
the portion of the State's Trading Program Budget under §
145.40 covering these units, the
Administrator will adjust the total number of NOx
allowances allocated to all these NOx budget units for
the control period under paragraph (1) so that the total number of
NOx allowances allocated equals 95% of the portion of
the State's Trading Program Budget under §
145.40 covering these units. This
adjustment will be made by multiplying each unit's allocation by 95% of the
portion of the State's Trading Program budget under §
145.40 covering these units;
dividing by the total number of NOx allowances allocated
under paragraph (1) for the control period; and rounding to the nearest whole
number of NOx allowances as
appropriate.
(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:
(1) The Department will establish one
allocation set-aside for each control period for each state. Each allocation
set-aside will be allocated NOx allowances equal to 5%
of the tons of NOx emission in the state's Trading
Program Budget under §
145.40, rounded to the nearest
whole number of NOx allowances as appropriate.
(2) The NOx authorized
account representative of a NOx budget unit specified in
this section may submit to the Department a request, in a format specified by
the Department, to be allocated NOx allowances for the
control period. The NOx allowance allocation request
must be received by the Department on or after the date on which the State
permitting authority issues a permit to construct the unit and by January 1
before the control period for which NOx allowances are
requested.
(3) In a
NOx allowance allocation request under paragraph (2),
the NOx authorized account representative for a
NOx budget unit under §
145.4(a)(1) may
request for the control period NOx allowances in an
amount that does not exceed the lesser of the following:
(i) 0.15 lb/mmBtu multiplied by the unit's
maximum design heat input, multiplied by the lesser of 3,672 hours or the
number of hours remaining in the control period starting with the day in the
control period on which the unit commences operation or is projected to
commence operation, divided by 2,000 lb/ton, and rounded to the nearest whole
number of NOx allowances as appropriate.
(ii) The unit's most stringent State or
Federal NOx emission limitation multiplied by the unit's
maximum design heat input, multiplied by the lesser of 3,672 hours or the
number of hours remaining in the control period starting with the day in the
control period on which the unit commences operation or is projected to
commence operation, divided by 2,000 lb/ton, and rounded to the nearest whole
number of NOx allowances as
appropriate.
(4) In a
NOx allowance allocation request under paragraph (2),
the NOx authorized account representative for a
NOx budget unit under §
145.4(a)(2) may
request for a control period NOx allowances in an amount
that does not exceed the lesser of the following:
(i) 0.17 lb/mmBtu multiplied by the unit's
maximum design heat input, multiplied by the lesser of 3,672 hours or the
number of hours remaining in the control period starting with the day in the
control period on which the unit commences operation or is projected to
commence operation, divided by 2,000 lb/ton, and rounded to the nearest whole
number of NOx allowances as appropriate.
(ii) The unit's most stringent state or
Federal NOx emission limitation multiplied by the unit's
maximum design heat input, multiplied by the lesser of 3,672 hours or the
number of hours remaining in the control period starting with the day in the
control period on which the unit commences operation or is projected to
commence operation, divided by 2,000 lb/ton, and rounded to the nearest whole
number of NOx allowances as
appropriate.
(5) The
Department will review each NOx allowance allocation
request submitted in accordance with paragraph (2) and will allocate
NOx allowances pursuant to the request as follows:
(i) Upon receipt of the
NOx allowance allocation request, the Department will
make any necessary adjustments to the request to ensure that the requirements
of paragraphs (2)-(4) are met.
(ii)
The Department will determine the following amounts:
(A) The sum of the NOx
allowances requested (as adjusted under subparagraph (i)) in all
NOx allowance allocation requests under paragraph (2)
for the control period.
(B) For
units exempt under §
145.4(b) in the
state that commenced 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 beginning of the group of 5 years that
includes the control period (for control periods under §
145.41(c)), the
sum of the NOx emission limitations (in tons of
NOx) on which each unit's exemption under §
145.4(b) is
based.
(iii) If the
number of NOx allowances in the allocation set-aside for
the control period less the amount under subparagraph (ii)(B) is not less than
the amount determined under subparagraph (ii)(A), the Department will allocate
the amount of the NOx allowances requested (as adjusted
under subparagraph (i)) to the NOx budget unit for which
the allocation request was submitted.
(iv) If the number of
NOx allowances in the allocation set-aside for the
control period less the amount under subparagraph (ii)(B) is less than the
amount determined under subparagraph (ii)(A), the Department will allocate, to
the NOx budget unit for which the allocation request was
submitted, the amount of NOx allowances requested (as
adjusted under subparagraph (i)) multiplied by the number of
NOx allowances in the allocation set-aside for the
control period less the amount determined under subparagraph (ii)(B), divided
by the amount determined under subparagraph (ii)(A), and rounded to the nearest
whole number of NOx allowances as appropriate.
(e) Beginning in the 2008
control period, a NOx budget unit identified in
subsection (d) may, upon request to the Department, receive allocations
calculated under subsections (b) and (c). For the Department to grant the
request, the NOx budget unit shall have at least one
complete control period of heat input data measured as specified in
§§
145.70-145.75 (relating to recordkeeping
and reporting requirements). If heat input data is available from more than one
control period but less than the number of control periods specified in
subsection (a)(1)(ii) or (iii), the data will be averaged based on the number
of available control periods.
(f)
The NOx Budget Administrator will take the following
action for sources that are allocated NOx allowances
under subsection (d):
(1) The
NOx Budget Administrator will deduct
NOx allowances under §
145.54(b), (e) or
(f) (relating to compliance) to account for
the actual heat input of the unit during the control period. The
NOx Budget Administrator will calculate the number of
NOx allowances to be deducted to account for the unit's
actual heat input using the following formulas and rounding to the nearest
whole number of NOx allowance as appropriate, provided
that the number of NOx allowances to be deducted shall
be zero if the number calculated is less than zero:
NOx allowances deducted for actual heat input for a unit under § 145.4(a)(1) = unit's NOx allowances allocated for control period - (unit's actual control period heat input x unit's emission rate x 2,000 lb/ton).
NOx allowances deducted for actual heat input for a unit under § 145.4(a)(2) = unit's NOx allowances allocated for control period - (unit's actual control period heat input x unit's emission rate x 2,000 lb/ton)
where:
"unit's NOx allowances allocated for control period" is the number of NOx allowances allocated to the unit for the control period under subsection (d).
"unit's actual control period heat input" is the heat input (in mmBtu) of the unit during the control period.
"unit's emission rate" is the emission rate in lb/mmBtu for the unit as determined under paragraphs (3) and (4).
(2) The NOx
Budget Administrator will transfer any NOx allowances
deducted under subsection (c)(1) to the allocation set-aside for the control
period for which they were allocated.
(g) After making the deductions for
compliance under §
145.54(b), (e) or
(f) for a control period, the
NOx Budget Administrator will determine whether any
NOx allowances remain in the allocation set-aside for
the control period. The NOx Budget Administrator will
allocate these NOx allowances to the
NOx budget units in the state using the following
formula and rounding to the nearest whole number of NOx
allowances as appropriate:
unit's share of NOx allowances remaining in allocation set-aside = total NOx allowances remaining in allocation set-aside x (unit's NOx allowance allocation ÷ state's Trading Program Budget excluding allocation set-aside)
where:
"total NOx allowances remaining in allocation set-aside" is the total number of NOx allowances remaining in the allocation set-aside for the control period.
"unit's NOx allowance allocation" is the number of NOx allowances allocated under subsection (b) or (c) to the unit for the control period to which the allocation set-aside applies.
"State's Trading Program budget excluding allocation set-aside" is the State's Trading Program budget under § 145.40 for the control period to which the allocation set-aside applies multiplied by 95%, rounded to the nearest whole number of NOx allowances as appropriate.
(h) If the
Department determines that NOx allowances were allocated
under subsection (b), (c) or (d) for a control period and the recipient of the
allocation is not actually a NOx budget unit under
§
145.4(a), the
Department will notify the NOx authorized account
representative and then will act in accordance with the following procedures:
(1) The NOx Budget
Administrator will not record these NOx allowances for
the control period in an account under §
145.53 (relating to recordation of
NOx allowance allocations).
(i) If the NOx Budget
Administrator already recorded these NOx allowances for
the control period in an account under §
145.53 and if the
NOx Budget Administrator makes this determination before
making all deductions under §
145.54 (except deductions under
§
145.54(d)(2)) for
the control period, the NOx Budget Administrator will
deduct from the account NOx allowances equal in number
to and allocated for the same or a prior control period as the
NOx allowances allocated to the recipient for the
control period. The NOx authorized account
representative shall ensure that the account contains the
NOx allowances necessary for completion of the
deduction. If the account does not contain the necessary
NOx allowances, the NOx Budget
Administrator will deduct the required number of NOx
allowances, regardless of the control period for which they were allocated,
whenever NOx allowances are recorded in the account.
(ii) If the
NOx Budget Administrator already recorded the
NOx allowances for the control period in an account
under §
145.53 and if the
NOx Budget Administrator makes this determination after
making all deductions under §
145.54 (except deductions under
§
145.54(d)(2)) for
the control period, then the NOx Budget Administrator
will apply subparagraph (i) to any subsequent control period for which
NOx allowances were allocated to the
recipient.
(2) The
NOx Budget Administrator will transfer the
NOx allowances that are not recorded, or that are
deducted, under paragraph (1) to an allocation set-aside for the state in which
the source is located.
(i)
The Department will publish for comment a list of the allocations in the
Pennsylvania Bulletin.
Notes
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 § 145.8 (relating to transition to CAIR NOx trading programs); 25 Pa. Code § 145.40 (relating to State Trading Program budget); 25 Pa. Code § 145.41 (relating to timing requirements for NOx allowance allocations); 25 Pa. Code § 145.50 (relating to NOx Allowance Tracking System accounts); 25 Pa. Code § 145.53 (relating to recordation of NOx allowance allocations); 25 Pa. Code § 145.54 (relating to compliance); 25 Pa. Code § 145.81 (relating to opt-in source general provisions); and 25 Pa. Code § 145.87 (relating to opt-in unit change in regulatory status).
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