Tenn. Comp. R. & Regs. 1200-03-27-.12 - NO[x] SIP CALL REQUIREMENTS FOR STATIONARY BOILERS AND COMBUSTION TURBINES

(1) Definitions. The terms used in this rule shall have the meanings set forth in this paragraph as follows:
(a) "Administrator" means the Administrator of the United States Environmental Protection Agency or the Administrator's duly authorized representative.
(b) "Affected facility" means the group of all affected units at a facility.
(c)
1. "Affected unit" means any unit identified as an existing affected unit in subparagraph (n) of this paragraph and any unit that has the following characteristics:
(i) The unit's maximum design heat input is greater than 250 MMBtu/hr;
(ii) The unit combusts, or will combust during any year, fossil fuel in the following amounts:
(I) Alone or in combination with any other fuel, where fossil fuel actually combusted comprises more than 50 percent of the annual heat input on a Btu basis during any year starting in 1995 or, if a unit had no heat input starting in 1995, during the last year of operation of the unit prior to 1995; or
(II) Alone or in combination with any other fuel, where fossil fuel is projected to comprise more than 50 percent of the annual heat input on a Btu basis during any year; and
(iii) The unit:
(I) Does not serve a generator producing electricity for sale at any time; or
(II) Serves a generator producing electricity for sale at any time and qualifies under 40 CFR § 72.6(b)(4) as an unaffected unit under the Acid Rain Program.
2. Notwithstanding part 1. of this subparagraph, any unit subject to 40 CFR 97 subpart EEEEE (CSAPR NOx Ozone Season Group 2 Trading Program) shall not be an affected unit.
(d) "Allocate" or "allocation" means the determination by the Technical Secretary of the amount of allowances to be credited to an affected facility.
(e) "Allowance" (or "NOx allowance") means a limited authorization issued by the Technical Secretary to emit one ton of nitrogen oxides ("NOx") during a control period of a specified calendar year or of any calendar year thereafter.
(f) "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.
(g) "Clean Air Act" or "CAA" means the Clean Air Act, 42 U.S.C. § 7401, et seq.
(h) "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 part 1. of this subparagraph is combined cycle, any associated duct burner, heat recovery steam generator, and steam turbine.
(i) "Commence operation" means the later of November 15, 1990, or the date the unit begins any mechanical, chemical, or electronic process, including, with regard to a unit, start-up of a unit's combustion chamber.
1. For a unit that commences operation as defined in this subparagraph, 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 operation of the unit, which shall continue to be treated as the same unit.
2. For a unit that commences operation as defined in this subparagraph, 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 operation, and the replacement unit shall be treated as a separate unit with a separate date for commencement of operation.
(j) "Compliance deadline" means, for a control period, midnight of December 1 (if it is a business day), or midnight of the first business day thereafter (if December 1 is not a business day) immediately following the control period.
(k) "Control period" or "ozone season" means the period beginning May 1 of a calendar year and ending on September 30 of the same year, inclusive.
(l) "Emissions" means air pollutants exhausted from a unit or source into the atmosphere, as measured, recorded, and reported to the Technical Secretary by the Responsible Official in accordance with paragraph (11) of this rule.
(m) "Excess emissions" means any ton of nitrogen oxides emitted by an affected facility during a control period that exceeds the total number of allowances allocated to an affected facility for a control period.
(n) "Existing affected unit" means the following units:

Packaging Corporation of America

Unit 17

Tate & Lyle, Loudon

Units 34 and 35

Resolute FP US, Inc.

Units 11 and 12

Eastman Chemical Company

Units 83-23 and 83-24; Units 253-25, Units 253-26, Units 253-27, Units 253-28, and Units 253-29; Units 325-30 and 325-31

The Valero Refining Company -Tennessee, LLC

Unit P049

TVA Cumberland

Startup Boilers A1 and A2

(o) "Fossil-fuel-fired" means, with regard to an affected unit, combusting any amount of fossil fuel (coal, natural gas, petroleum, or any form of solid, liquid, or gaseous fuel derived from such material) in any calendar year.
(p) "Heat input" means, with regard to a specified period of time, the product of the gross calorific value of the fuel (in Btu/lb) divided by 1,000,000 Btu/MMBtu and multiplied by the fuel feed rate into a combustion device (in pounds of fuel per unit of time), as measured and recorded in accordance with paragraph (11) of this rule. Heat input does not include the heat derived from preheated combustion air, recirculated flue gases, or exhaust from other sources.
(q) "Maximum design heat input" means the maximum amount of fuel per hour (in MMBtu/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.
(r) "Most stringent state or federal NOx emissions limitation" means, with regard to a unit, the lowest NOx emissions limitation (in terms of lb/MMBtu) that is applicable to the unit under state or federal law, regardless of the averaging period to which the emissions limitation applies.
(s) "New affected unit" means any affected unit that is not an existing affected unit.
(t) "Operator" means any person who operates, controls, or supervises an affected unit or an affected facility and shall include, but not be limited to, any holding company, utility system, or plant manager of such a unit or source.
(u) "Owner" means any of the following persons:
1. Any holder of any portion of the legal or equitable title in an affected facility or an affected unit; or
2. Any holder of a leasehold interest in an affected facility or an affected unit.
(v) "Receive" or "receipt of" means, when referring to the Technical Secretary or the Administrator, to come into possession of a document, information, or correspondence (whether sent in hard copy or by authorized electronic transmission), as indicated in an official log, or by a notation made on the document, information, or correspondence, by the Technical Secretary or the Administrator in the regular course of business.
(w) "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).
(x) "Responsible Official" has the same meaning as defined by Rule 1200-03-09-.02(11); however, a designated representative as defined by 40 CFR part 72, relative to actions, standards, requirements, or prohibitions under Title IV of the Clean Air Act or the regulations promulgated thereunder, including 40 CFR part 75, may also serve as the Responsible Official for any purposes under this rule.
(y) "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 section 502(c) of the Clean Air Act, a ''source,'' including a ''source'' with multiple units, shall be considered a single ''facility.''
(z)
1. "Submit" or "serve" means to send or transmit a document, information, or correspondence to the person specified in accordance with the applicable rule:
(i) In person;
(ii) By United States Postal Service; or
(iii) By other means of dispatch or transmission and delivery.
2. Compliance with any ''submission'' or ''service'' deadline shall be determined by the date of dispatch, transmission, or mailing and not the date of receipt.
(aa) "Technical Secretary" means the Technical Secretary of the Tennessee Air Pollution Control Board or a duly authorized representative.
(bb) "Ton" means 2,000 pounds. For the purpose of determining compliance with the ozone season NOx 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 paragraph (11) of this rule, 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.
(cc) "Unit" means a stationary, fossil-fuel fired boiler or combustion turbine or other stationary, fossil-fuel-fired combustion device.
(2) Measurements, abbreviations, and acronyms. Measurements, abbreviations, and acronyms used in this rule are defined as follows:

Btu - British thermal unit

CO2 - carbon dioxide

H2O - water hr - hour lb - pound

MMBtu - million Btu

NOx - nitrogen oxides

O2 - oxygen ppm - parts per million scfh - standard cubic feet per hour

SO2 - sulfur dioxide

(3) Applicability. Except as otherwise exempted by this rule, the provisions of this rule shall apply to each affected unit and each affected facility.
(4) Retired unit exemption.
(a)
1. Any affected unit that is permanently retired shall be exempt from this rule , except for the provisions of this paragraph and paragraphs (1), (2), (3), (6), subparagraphs (7)(c) through (f), and paragraphs (8) and (9) of this rule.
2. The exemption under part 1 of this subparagraph shall become effective the day on which the affected unit is permanently retired. Within 30 days of the unit's permanent retirement, the Responsible Official shall submit a report to the Technical Secretary and shall submit a copy of the statement to the Administrator. The report shall state, in a format prescribed by the Technical Secretary, that the unit was permanently retired on a specific date and that the unit will comply with the requirements of subparagraph (b) of this paragraph. The report shall include a signed statement by the Responsible Official certifying the truth, accuracy, and completeness of the information provided in the report.
(b) Special provisions.
1. An affected unit exempt under subparagraph (a) of this paragraph shall not emit any nitrogen oxides during a control period, starting on the date that the exemption takes effect.
2. For a period of 5 years from the date the records are created, the owners and operators of a unit exempt under subparagraph (a) of this paragraph shall retain, at the source that includes the unit, records demonstrating that the unit is permanently retired. The 5-year period for keeping records may be extended for cause, at any time before the end of the period, in writing by the Technical Secretary or the Administrator. The owners and operators of the unit bear the burden of proof that the unit is permanently retired.
3. Owners and operators shall comply with the requirements of this rule during all periods for which the exemption is not in effect.
(c) An exempt unit shall lose its exemption on the date on which the unit resumes operation.
(d) For the purpose of applying the monitoring, recordkeeping, and reporting requirements of paragraph (11) of this rule, a unit that loses its exemption under subparagraph (a) of this paragraph shall be treated as a unit that commences operation on the first date on which the unit resumes operation.
(5) State emissions budget. The state emissions budget for allowance allocations to affected units is 5,666 tons per control period for the control period in 2017 and thereafter.
(6) Allowance allocations for affected units:
(a) For each control period in 2017 and thereafter, the Technical Secretary will allocate NOx allowances in the amounts specified in the State Implementation Plan to all existing affected units.
(b) For new affected units, the heat input (in MMBtu) used for calculating NOx allowance allocations shall be determined in accordance with 40 CFR part 75, to the extent that the unit was subject to the requirements of 40 CFR part 75 for the year, or based on the best available data reported to the Technical Secretary for the unit.
(c) For each control period in 2017 and thereafter, the Technical Secretary will allocate allowances to new affected units in accordance with the following procedures:
1. The Technical Secretary will establish a new unit set-aside for each control period. For each control period, the new unit set-aside is established as the State emission budget established in paragraph (5) of this rule minus the number of NOx allowances allocated in subparagraph (a) of this paragraph.
2. The Responsible Official of a new affected unit may request NOx allowances from the Technical Secretary starting with the later of the control period in 2017 or the first control period in which the affected unit commences operation as provided in this part.
(i) The Responsible Official may request allowances for a control period in an amount not exceeding any of the following emission rates:
(I) The allowable NOx emission rate under any applicable provision of 40 CFR part 60;
(II) The allowable NOx emission rate under any state or federal construction or operating permit; and
(III) The allowable NOx emission rate under any provision in Tennessee's State Implementation Plan.
(ii) The emission rates indicated in items (i)(I) through (III) of this part shall be converted to tons as follows:
(I) For units with four years of heat input data, the emission rate shall be multiplied by the average of the three highest years of heat input (of the most recent four-year period) as indicated in subparagraph (b) of this paragraph divided by 2,000, and rounded to the nearest whole number as appropriate.
(II) For units with less than four years of heat input data, the emission rate shall be multiplied by the unit's maximum design heat input in MMBtu/hr, multiplied by 3,672 hours per control period, divided by 2,000, and rounded to the nearest whole number as appropriate.
3. The Technical Secretary will review each allowance allocation request and allocate NOx allowances for each control period as follows:
(i) The Technical Secretary will accept an allowance allocation request only if the request meets, or is adjusted by the Technical Secretary as necessary to meet, the requirements of part 2. of this subparagraph.
(ii) On or after February 1 before the control period, the Technical Secretary will determine the sum of NOx allowances requested under subpart (i) of this part for the control period.
(iii) If the amount of NOx allowances in the new unit set-aside for the control period is greater than or equal to the sum of NOx allowances requested, then the Technical Secretary will allocate the amount of NOx allowances requested to each new affected unit.
(iv) If the amount of NOx allowances in the new unit set-aside for the control period is less than the sum of NOx allowances requested, then the Technical Secretary will allocate to each new affected unit the amount of allowances requested, multiplied by the amount of allowances in the new unit set-aside for the control period, divided by the sum of NOx allowances requested, and rounded to the nearest whole allowance as appropriate.
(v) The Technical Secretary will notify each Responsible Official that submitted an allowance allocation request of the amount of allowances (if any) allocated for the control period to the affected unit covered by the request.
(vi) After completion of the procedures specified in subparts (i) through (v) of this part, the Technical Secretary will allocate NOx allowances remaining in the new unit set-aside to existing affected units, using the following formula and rounding to the nearest whole NOx allowance as appropriate:

Unit's share of NOx allowances = (Total NOx allowances remaining in new unit set-aside) x (Unit's NOx allowance allocation) ÷ (State trading program budget excluding new unit set-aside).

(d) Adjustment of allowance allocations for new and existing affected units. The Technical Secretary may, after appropriate notice and comment, adjust the allowance allocations for new and existing affected units as necessary to comply with applicable requirements promulgated by the Administrator or to provide additional allowances for new construction.
(7) NOx emission requirements.
(a) As of the compliance deadline for a control period, the tons of total nitrogen oxides emissions for the control period from all affected units at an affected facility, as determined in accordance with paragraph (11) of this rule, shall not exceed the number of allowances allocated to the affected facility.
1. Allowances are available to an affected facility for a given control period only if the allowances were allocated to the affected facility for the same control period.
2. An affected unit shall be subject to the requirements of this paragraph for the control period starting on the later of May 1, 2017, or the deadline for meeting the unit's monitor certification requirements under paragraph (11) of this rule, and for each control period thereafter.
(b) Recordkeeping and reporting requirements.
1. The owners, operators, and Responsible Official of each affected facility and each affected unit shall comply with the recordkeeping and reporting requirements of this subparagraph.
2. The emissions measurements recorded and reported in accordance with paragraph (11) of this rule shall be used to determine compliance of each affected facility with the requirements of this paragraph.
3. Unless otherwise provided, the owners and operators of the affected facility shall maintain the following documents at the affected facility location for a period of 5 years from the date the document is created. This period may be extended for cause, at any time before the end of 5 years, in writing by the Technical Secretary or the Administrator.
(i) All emissions monitoring information, in accordance with paragraph (11) of this rule, provided that to the extent that paragraph (11) of this rule provides for a 3-year period for recordkeeping, the 3-year period shall apply.
(ii) Copies of all reports, compliance certifications, and other submissions and all records made or required under this paragraph.
(iii) Copies of any other submission used to demonstrate compliance with this paragraph.
4. Reserved.
(c) Excess emissions requirements. If an affected facility emits nitrogen oxides during any control period in excess of the number of allowances allocated to the affected facility, then:
1. The Technical Secretary may deduct allowances from the affected facility's allocation for the following control period, in an amount up to 3 times the number of tons of the facility's excess emissions;
2. The affected facility shall pay any fine, penalty, or assessment, or comply with any other remedy imposed, for the same violations, under the Clean Air Act or applicable state law; and
3. Each ton of such excess emissions and each day of such control period shall constitute a separate violation of this rule, the Clean Air Act, and applicable state law.
(d) Liability.
1. Each affected facility and each affected unit shall meet the requirements of this rule.
2. Any provision of this rule that applies to an affected facility, an affected unit, or a Responsible Official shall also apply to the owners and operators of such affected facility or affected unit.
3. Any person who knowingly violates any requirement or prohibition of this rule shall be subject to enforcement pursuant to applicable state or federal law.
4. Any person who knowingly makes a false material statement in any record, submission, or report required by this rule shall be subject to criminal enforcement pursuant to the applicable state or federal law.
(e) Effect on other authorities. No provision of this rule shall be construed as exempting or excluding the owners and operators and the Responsible Official of an affected facility or an affected unit from compliance with any other provision of the applicable, approved State Implementation Plan, a federally enforceable permit, or the Clean Air Act.
(f) An allowance does not constitute a property right.
(8) Computation of time.
(a) Unless otherwise stated, any time period scheduled under this rule to begin on the occurrence of an act or event shall begin on the day the act or event occurs.
(b) Unless otherwise stated, any time period scheduled under this rule to begin before the occurrence of an act or event shall be computed so that the period ends the day before the act or event occurs.
(c) Unless otherwise stated, if the final day of any time period under this rule falls on a weekend or a state or federal holiday, the time period shall be extended to the next business day.
(9) Technical Secretary's action on submissions.
(a) The Technical Secretary may review and conduct independent audits concerning any submission under this rule and make appropriate adjustments of the information in the submissions.
(b) The Technical Secretary may deduct allowances from or transfer allowances to an affected facility based on the information in the submissions.
(10) The Technical Secretary may, at his or her sole discretion and on his or her own motion, correct any error in the allocation of any affected facility. Within 10 business days of making such correction, the Technical Secretary will notify the Responsible Official for the affected facility.
(11) Monitoring and Reporting
(a) Except as otherwise allowed in subparagraph (b) of this paragraph, the owners and operators, and to the extent applicable, the Responsible Official, of an affected unit shall comply with the applicable monitoring, recordkeeping, and reporting requirements provided in 40 CFR part 75 for each control period. The Responsible Official shall be authorized as provided in, and shall certify each submission and may delegate his or her authority in accordance with, 40 CFR 72 subpart B.
(b) Petitions. The Responsible Official of an affected unit may submit a petition to the Technical Secretary and the Administrator requesting approval of an alternative to any requirement of this paragraph. The application of any alternative to any requirement of this paragraph is granted only to the extent that the petition is approved in writing by both the Technical Secretary and the Administrator.

Notes

Tenn. Comp. R. & Regs. 1200-03-27-.12
New rule filed November 21, 2016; effective February 19, 2017. Amendments filed September 13, 2019; effective 12/12/2019.

Authority: T.C.A. §§ 4-5-201, et seq. and 68-201-101, et seq.

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