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NR 432.03(1)(a)1.b. b. Use equation 1b if more than one unit serves the same generator and unit-level data for equation 1a is not available for all units:
- See PDF for diagram PDF Equation 1b
where:
Bi is the baseline energy output made available by cogeneration unit i in MWh
GEGen is the average of the 3 highest annual amounts of the annual gross electric output in MWh for the generator served over the 5-year period identified in par. (b)
TET is the average of the 3 highest annual amounts of annual useful thermal energy in mmBtu for the generator served over the 5-year period defined in par. (b)
3.4 is a conversion factor in mmBtu/MWh
NCi is the nameplate capacity of unit i
n is the number of units serving the same generator
NR 432.03(1)(a)2. 2. For a CAIR NOx unit that is not a cogeneration unit and that has operated for 5 or more consecutive calendar years and for a CAIR renewable unit that has operated for 5 or more consecutive calendar years, by using one of the following equations as appropriate:
NR 432.03(1)(a)2.a. a. Use equation 2a if the unit is the only unit serving a generator or, if more than one unit serves the same generator and unit-level data for equation 2a is available for all units:
- See PDF for diagram PDF Equation 2a
where:
B is the unit baseline energy output made available by the CAIR NOx unit or the CAIR renewable unit in MWh
GEavg is the average of the 3 highest annual amounts of the unit's annual gross electric output in MWh over the 5-year period identified in par. (b)
NR 432.03(1)(a)2.b. b. Use equation 2b if more than one unit serves the same generator and unit-level data for equation 2a is not available for all units:
- See PDF for diagram PDF Equation 2b
where:
Bi is the baseline energy output made available by CAIR NOx unit i or CAIR renewable unit i in MWh
GEGen is the average of the 3 highest annual amounts of the annual gross electric output in MWh for the generator served over the 5-year period identified in par. (b)
NCi is the nameplate capacity of unit i
n is the number of units serving the same generator
NR 432.03(1)(b) (b) Periodic updates of baseline energy output for units with more than 5 years operating data. The department shall use the procedures in this paragraph for calculating the unit baseline energy output for each CAIR NOx unit or CAIR renewable unit which has more than 5 years of operating data.
NR 432.03(1)(b)1. 1. In 2007, the department shall calculate the baseline energy output for each CAIR NOx unit for 2009 to 2014 allowances using data for the years 2000 to 2004.
NR 432.03(1)(b)2. 2. On or before May 1, 2011, and on or before May 1 of every fifth year thereafter, the department shall calculate the baseline energy output for each CAIR NOx unit and each CAIR renewable unit for the next 5 year allocation period using data from the 5 calendar year period beginning 9 years before the first year of the allocation period and ending 5 years before the first year of the allocation period.
NR 432.03 Note Note: For example in 2021, unit baseline energy output for the calculation of allocation for 2025 to 2029 allowances will be calculated using data from the years 2016 to 2020. In 2026, unit baseline energy output for the calculation of the allocation for 2030 to 2034 will be calculated using data from 2021 to 2025.
NR 432.03(1)(c) (c) Baseline energy output for new units and units achieving 5 years of operating data for the first time. The department shall use the procedures in this paragraph for calculating the unit baseline energy output for each CAIR NOx unit or CAIR renewable unit which have only 5 years of operating data.
NR 432.03(1)(c)1. 1. On or before May 1, 2011, the department shall calculate the baseline energy output for each CAIR NOx unit and each CAIR renewable unit that commences operation on or after January 1, 2001 and that has operating data for the years 2006 to 2010 for 2015 to 2019 allowances using data for years 2006 to 2010.
NR 432.03(1)(c)2. 2. On or before May 1, 2012, and on or before May 1 of every year thereafter, the department shall calculate the unit baseline energy output for each CAIR NOx unit and each CAIR renewable unit that has been operating for its first 5 consecutive years, using the first 5 years of operating data. Once the unit's baseline energy output has been established, the CAIR NOx unit or CAIR renewable unit's baseline energy output shall be updated according to par. (b).
NR 432.03 Note Note: Starting in 2011, and every year thereafter, new units that commence operation on or after January 1, 2001 will have their unit baseline energy output calculated once the unit has 5 consecutive years of operating data. The 5 years of data do not have to be full years of data. Once the unit has 5 or more years of operating data, this unit is then incorporated into the state baselines calculated in s. NR 432.03 (1m) and receives allocations from the main allocation pool under s. NR 432.03 (2). These new units are incorporated into the main allocation pool on a yearly basis.
NR 432.03(1)(d) (d) Baseline energy output for retired units. If a unit is retired in any year, the department shall calculate the baseline energy output according to par. (b). If a unit only operates a portion of the year, the data for that portion shall constitute the unit's data for that year.
NR 432.03 Note Note: The following is an example of how a retired unit's baseline energy output is calculated. A unit is retired in 2011. In 2011, unit baselines are updated using 2006 to 2010 annual data that will be used to calculate allocations for 2015 to 2019. For 2015 to 2019 allocations, the retired unit would receive all allowances based upon its unit baseline for 2006 to 2010 operating data even though it is no longer operating. In 2016, the next unit baseline updating year, the baseline for the unit would be determined using the most recent 5 years of data, 2011 to 2015. The 2016 updated baseline would be used to determine allocations for 2020 to 2025. If the unit had some operating data in 2011, it would receive minimal allowances in 2020 to 2025 based on the amount of electrical generation in 2011. The next unit update would occur in 2021 and would use 2015 to 2019 operating data. Since the unit would have no operating data for this time period it would no longer receive allocations. Under this procedure a unit that is retired in 2011 could receive allowances until 2025.
NR 432.03(1)(e) (e) Data used for energy generation baselines. In performing the unit energy output baseline calculations under pars. (a) to (d), the department shall use data reported by the CAIR designated representative to EPA under 40 CFR part 97, Subpart HH and available from the EPA and data reported by the CAIR renewable representative to the department under s. NR 432.07. If the required data is unavailable from the EPA, the department shall request the required data directly from the unit's CAIR designated representative. If the representative does not provide data within 30 days of the department's request, the department shall estimate the unit's baseline energy output using best available data.
NR 432.03(1m) (1m)State baseline.
NR 432.03(1m)(a)(a) Prior to 2011, the department shall establish the state baseline by summing the unit baselines calculated according to sub. (1) for all CAIR NOx units listed in Table 1.
NR 432.03(1m)(b) (b) In 2011 and annually thereafter, the department shall calculate an annual state baseline by summing the unit baselines calculated according to sub. (1) for all CAIR NOx units and all CAIR renewable units.
NR 432.03 Note Note: The state baseline is updated starting in 2011 annually to incorporate new units that have 5 years of operating data and have established a baseline under s. NR 432.03 (a) and (b). Once a new unit has established a baseline, it is eligible for allowances from the main allocation pool.
NR 432.03(2) (2)Allowance allocation for units with 5 or more years of operation data.
NR 432.03(2)(a)(a) In 2007, and in 2011 and annually thereafter, the department shall allocate to all CAIR NOx units and CAIR renewable units for which a unit baseline has been calculated under sub. (1), a total amount of CAIR NOx allowances equal to 93% of the tons of NOx emissions in the trading budget for Wisconsin in 40 CFR 97.140.
NR 432.03(2)(b) (b) The department shall allocate CAIR NOx allowances to each unit in an amount determined by equation 3:
- See PDF for diagram PDF Equation 3
where:
Ai is the annual allocation of CAIR NOx allowances for unit i rounded to the nearest whole ton, adjusted by the department as needed to ensure that the sum of the allowances to all units does not exceed 93% of the trading budget in 40 CFR 97.140
MAP is the main allocation pool of CAIR NOx allowances in tons which is the trading budget for Wisconsin in 40 CFR 97.140, minus the new unit set-aside established in sub. (3)
Bi is the unit baseline established under sub. (1) for unit i
Bs is the state baseline as determined under sub. (1m)
NR 432.03(3) (3)Allocations for units with less than 5 years of operating data. In 2009 and annually thereafter, the department shall allocate CAIR NOx allowances to CAIR NOx units for which a request is received under par. (b) and that commenced operation on or after January 1, 2001 and for which a baseline energy output cannot be determined under sub. (1), in accordance with the following procedures:
NR 432.03(3)(a) (a) For 2009 and each year thereafter, the department shall establish a new unit set-aside consisting of all CAIR NOx allowances available for new units in that year. The new unit set-aside in each year shall be equal to 7% of the amount of tons of NOx emissions in the trading budget under 40 CFR 97.140 for Wisconsin.
NR 432.03(3)(b) (b) The CAIR designated representative of a CAIR NOx unit that commenced operation on or after January 1, 2001, may submit to the department a request to be allocated CAIR NOx allowances under this subsection, starting with 2009 or the first calendar year after the calendar year in which the CAIR NOx unit commences commercial operation, whichever is later, and until the first calendar year for which the unit is eligible for and is allocated CAIR NOx allowances under sub. (2). The CAIR NOx allocation request shall be submitted on or before May 1 of the calendar year for which the CAIR NOx allowances are requested and after the date on which the CAIR NOx unit commences commercial operation.
NR 432.03(3)(c) (c) In a CAIR NOx annual allocation request under par. (b), the CAIR designated representative may not request CAIR NOx allowances exceeding the CAIR NOx unit's total tons of NOx emissions during the calendar year immediately before the calendar year of the request.
NR 432.03(3)(d) (d) The department shall review each CAIR NOx annual allocation request submitted under par. (b) and allocate CAIR NOx allowances for each calendar year as follows:
NR 432.03(3)(d)1. 1. The department shall establish the maximum amount of new unit set-aside CAIR NOx allowances a unit is eligible for based upon a request submitted under par. (b).
NR 432.03(3)(d)2. 2. Before June 1 of each calendar year, the department shall determine the sum of all CAIR NOx allowances established under subd. 1. for all new units in the calendar year.
NR 432.03(3)(d)3. 3. If the amount of CAIR NOx allowances in the new unit set-aside for the calendar year under par. (a) is greater than or equal to the sum determined under subd. 2., the department shall allocate the amount of CAIR NOx allowances determined under subd. 1. to each CAIR NOx unit for which an allocation request was submitted.
NR 432.03(3)(d)4. 4. If the amount of the CAIR NOx allowances in the new unit set-aside for the calendar year under par. (a) is less than the sum determined under subd. 2., the department shall allocate to each CAIR NOx unit for which the department established a maximum amount under subd. 1. greater than zero, an amount determined using equation 4:
- See PDF for diagram PDF Equation 4
where:
Ni is the annual allocation of CAIR NOx set-aside allowances for new unit i for the calendar year rounded to the nearest whole ton, adjusted by the department as needed to ensure that the sum of the allowances to all units does not exceed 7% of the trading budget in 40 CFR 97.140
Ri is the amount of CAIR NOx allowances the department determined unit i is eligible for under subd. 1.
NUSA is the new unit set-aside established under par. (a)
k is the number of units for which the department established an amount greater than 0 under subd. 1.
NR 432.03(3)(e) (e) The department shall notify each CAIR designated representative that submitted an allocation request under par. (b) of the amount of CAIR NOx allowances allocated for the calendar year to the CAIR NOx unit covered by the request.
NR 432.03(4) (4)Allocation of remaining new unit set-aside allowances. After completion of the procedures under sub. (3), any CAIR NOx allowances remaining in the new unit set-aside for the calendar year shall be allocated to the CAIR NOx units and CAIR renewable units that were allocated CAIR NOx allowances under sub. (2) for the calendar year in an amount determined using equation 5:
- See PDF for diagram PDF Equation 5
where:
Xi is the allocation of remaining CAIR NOx new unit set-aside annual allowances for unit i rounded to the nearest whole ton, adjusted by the department as needed to ensure that the sum of the allowances to all units does not exceed the amount of U
U is the amount of unallocated CAIR NOx new unit set-aside allowances in tons
Ai is the annual allocation of CAIR NOx allowances for unit i calculated using equation 3
MAP is the main allocation pool of CAIR NOx allowances in tons which is the trading budget for Wisconsin in 40 CFR 97.140 minus the new unit set-aside established in sub. (3)
NR 432.03(5) (5)CAIR NOx allocations for 2009 to 2014. The CAIR NOx allocations for 2009 to 2014 for individual CAIR NOx units are listed in Table 1. - See PDF for table PDF
NR 432.03 History History: CR 06-104: cr. Register July 2007 No. 619, eff. 8-1-07.
NR 432.04 NR 432.04 Compliance supplement pool. In addition to the CAIR NOx allowances allocated under s. NR 432.03, the department may allocate for calendar year 2009 only, additional allowances from the compliance supplement pool up to the amount designated by the EPA in 40 CFR 97.143 for Wisconsin for the purposes identified in this section.
NR 432.04(1) (1)Early reduction credits.
NR 432.04(1)(a)(a) The department may allocate CAIR NOx allowances from the compliance supplement pool to a CAIR NOx unit if the unit's CAIR designated representative demonstrates that it achieved early reductions of NOx emissions. To be eligible for early reduction credits, the unit's CAIR designated representative shall demonstrate all of the following:
NR 432.04(1)(a)1. 1. The CAIR NO x unit's average annual NOx emission rate for 2007 or 2008 is less than 0.25 lb/mmBtu based on heat input.
NR 432.04(1)(a)2. 2. If the unit is included in a NOx averaging plan under s. NR 409.065 (7) for 2007 or 2008, the NOx averaging plan has an actual weighted average NOx emission rate for 2007 or 2008 equal to or less than the actual weighted average NOx emission rate for preceding year.
NR 432.04(1)(a)3. 3. Compared to the preceding year, the CAIR NOx unit achieves NOx emission reductions in both 2007 and 2008.
NR 432.04(1)(b) (b) The CAIR designated representative of the unit may request early reduction credits, and allocation of CAIR NOx allowances from the compliance supplement pool for early reduction credits, in accordance with the following:
NR 432.04(1)(b)1. 1. The CAIR designated representative shall monitor and report the NOx emissions rate and the heat input of the unit based on monitoring data required in accordance with 40 CFR part 97, Subpart HH in each calendar year for which early reduction credits are requested.
NR 432.04(1)(b)2. 2. The CAIR designated representative of a CAIR NOx unit shall submit to the department by July 31, 2009 a request for allocation of an amount of CAIR NOx allowances from the compliance supplement pool. The request may not exceed the value determined using equation 6:
Equation 6
where:
ER is the amount of CAIR NOx allowances a CAIR designated representative may request based on early emission reductions in 2007 and 2008 rounded to the nearest ton
HI2007 is the total heat input to the unit for the calendar year 2007 in mmBtu
HI2008 is the total heat input to the unit for the calendar year 2008 in mmBtu
2000 is a conversion factor in lb/ton
DEM2007 and DEM 2008 are the differences between the actual emission rates for 2007 and 2008 respectively and the target emission rate for early reductions in lbs NOx/mmBtu. If the unit's actual average emission rate for the calendar year is greater than 0.25, DEMyear is equal to 0. If the unit's actual average emission rate for the calendar year is equal to or less than 0.25, then DEMyear is calculated using equation 7
- See PDF for diagram PDF Equation 7
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Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.