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NR 432.05(2) (2)Allowance allocation for units with 5 or more years of operation data.
NR 432.05(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 ozone season allowances equal to 93% of the tons of NOx emissions in the trading budget for Wisconsin in 40 CFR 97.340.
NR 432.05(2)(b) (b) The department shall allocate CAIR NOx ozone season allowances to each unit in an amount determined by equation 11:
  Equation 11
where:
Ai is the annual allocation of CAIR NOx ozone season 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 97.340
MAP is the main allocation pool of CAIR NOx ozone season allowances in tons which is the trading budget for Wisconsin in 40 CFR 97.340, 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 432.05(3) (3)Allocations for units with less than 5 years of operating data. In 2009 and annually thereafter, the department shall allocate CAIR NOx ozone season 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 432.05(3)(a) (a) For 2009 and each year thereafter, the department shall establish a new unit set-aside consisting of all CAIR NOx ozone season 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 97.340 for Wisconsin.
NR 432.05(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 ozone season allowances under this subsection, starting with 2009 or the first calendar year after the calendar year in which the CAIR NO x 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 ozone season allowances under sub. (2). The CAIR NOx ozone season allocation request shall be submitted on or before May 1 of the calendar year for which the CAIR NOx ozone season allowances are requested and after the date on which the CAIR NOx unit commences commercial operation.
NR 432.05(3)(c) (c) In a CAIR NOx ozone season allocation request under par. (b), the CAIR designated representative may not request CAIR NOx ozone season 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 432.05(3)(d) (d) The department shall review each CAIR NOx ozone season allocation request submitted under par. (b) and allocate CAIR NOx ozone season allowances for each calendar year as follows:
NR 432.05(3)(d)1. 1. The department shall establish the maximum amount of new unit set-aside CAIR NOx ozone season allowances a unit is eligible for based upon a request submitted under par. (b).
NR 432.05(3)(d)2. 2. Before June 1 of each calendar year, the department shall determine the sum of all CAIR NOx ozone season allowances established under subd. 1. for all new units in the calendar year.
NR 432.05(3)(d)3. 3. If the amount of CAIR NOx ozone season 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 ozone season allowances determined under subd. 1. to each CAIR NOx unit for which an allocation request was submitted.
NR 432.05(3)(d)4. 4. If the amount of the CAIR NOx ozone season 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 12:
- See PDF for diagram PDF Equation 12
where:
Ni is the annual allocation of CAIR NOx ozone season 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 97.340
Ri is the amount of CAIR NOx ozone season 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 432.05(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 ozone season allowances allocated for the calendar year to the CAIR NOx unit covered by the request.
NR 432.05(4) (4)Allocation of remaining new unit set-aside allowances. After completion of the procedures under sub. (3), any CAIR NOx ozone season allowances remaining in the new unit set-aside for the calendar year shall be allocated to the CAIR NO x units and CAIR renewable units that were allocated CAIR NOx ozone season allowances under sub. (2) for the calendar year in an amount determined using equation 13:
- See PDF for diagram PDF Equation 13
where:
Xi is the allocation of remaining CAIR NOx ozone season new unit set-aside ozone season 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 ozone season new unit set-aside allowances in tons
Ai is the annual allocation of CAIR NOx ozone season allowances for unit i calculated using equation 11
MAP is the main allocation pool of CAIR NOx ozone season allowances in tons which is the trading budget for Wisconsin in 40 CFR 97.340 minus the new unit set-aside established in sub. (3)
NR 432.05(5) (5)CAIR NOx ozone season allocations for 2009 to 2014. The CAIR NOx ozone season allocations for 2009 to 2014 for individual CAIR NOx units are listed in Table 2. - See PDF for table PDF
NR 432.05 History History: CR 06-104: cr. Register July 2007 No. 619, eff. 8-1-07.
NR 432.06 NR 432.06Timing requirements for allocations of CAIR NOx allowances and CAIR NOx ozone season allowances.
NR 432.06(1)(1) Allocations for 2009 to 2014. By April 30, 2007 or within 30 days after August 1, 2007, the department shall notify the administrator of the allocations of CAIR NOx allowances and CAIR NOx ozone season allowances for 2009 to 2014 for the units listed in Tables 1 and 2.
NR 432.06(2) (2)Allocations for 2015 and later years for units with 5 or more years of operating data.
NR 432.06(2)(a)(a) By June 1, 2011 and June 1 of each year thereafter, the department shall determine the allocations of CAIR NOx allowances and CAIR NOx ozone season allowances, in accordance with ss. NR 432.03 (1) and (2) and 432.05 (1) and (2), which shall apply to CAIR NOx units and CAIR renewable units in the 4th year after the determination.
NR 432.06 Note Note: For example, in 2011, the department shall determine the allocations applicable in 2015 and in 2012, allocations for 2016.
NR 432.06(2)(b) (b) By July 31, 2011 and July 31 of each year thereafter, the department shall notify the administrator of each unit's allocation of CAIR NOx allowances and CAIR NOx ozone season allowances under par. (a) for the fourth year after the year of the notification.
NR 432.06(3) (3)Allocations for units with less than 5 years of operating data.
NR 432.06(3)(a)(a) By June 1, 2009 and June 1 of each year thereafter, the department shall determine the allocations of CAIR NOx allowances and CAIR NOx ozone season allowances, in accordance with ss. NR 432.03 (1), (3) and (4) and 432.05 (1), (3) and (4), for the year of the applicable determination under this section.
NR 432.06(3)(b) (b) By July 31, 2009 and July 31 of each year thereafter, the department shall notify the administrator of each unit's allocation of CAIR NOx allowances and CAIR NOx ozone season allowances under par. (a) for the year of the notification.
NR 432.06(4) (4)Public comments. On or before June 15, 2009 and on or before June 15 of each year thereafter, the department shall make available to the public each determination of CAIR NOx allowances and CAIR NOx ozone season allowances under sub. (1), (2) or (3) and shall provide an opportunity for submission of objections to the determination within 20 days. Objections shall be limited to addressing whether the determination is in accordance with ss. NR 432.03 and 432.05. Based on any objections, the department may adjust the determination to the extent necessary to ensure that it is in accordance with ss. NR 432.03 and 432.05.
NR 432.06 History History: CR 06-104: cr. Register July 2007 No. 619, eff. 8-1-07.
NR 432.07 NR 432.07 CAIR renewable units.
NR 432.07(1) (1) CAIR renewable representative.
NR 432.07(1)(a)(a) The owner and operator of each CAIR renewable unit shall select one and only one CAIR renewable representative who shall represent the CAIR renewable unit with regards to all matters concerning the unit under the CAIR NOx annual trading program and the CAIR NOx ozone season trading program.
NR 432.07(1)(b) (b) The CAIR renewable representative of the CAIR renewable unit shall be selected by an agreement binding on the owners and operators of the unit and shall act in accordance with the certifying statements found in par. (c).
NR 432.07(1)(c) (c) The CAIR renewable representative for the CAIR renewable unit shall submit to the department a certificate of representation. The certificate of representation shall include all of the following:
NR 432.07(1)(c)1. 1. Identification of CAIR renewable unit for which the certificate of representation is being submitted, including identification and nameplate capacity of each generator served by the unit.
NR 432.07(1)(c)2. 2. The name, address, e-mail address, telephone number and facsimile transmission number of the CAIR renewable representative.
NR 432.07(1)(c)3. 3. A list of the owners and operators of the CAIR renewable unit.
NR 432.07(1)(c)4. 4. The following certificate statements by the CAIR renewable representative:
NR 432.07(1)(c)4.a. a. “I certify that I was selected as the CAIR renewable representative, by an agreement binding on the owners and operators of the CAIR renewable unit."
NR 432.07(1)(c)4.b. b. “I certify that I have all the necessary authority to carry out my duties and responsibilities under the CAIR NOx annual trading program and the CAIR NOx ozone season trading program on behalf of the owners and operators of the CAIR renewable unit and that each owner and operator shall be fully bound by my representations, actions, inactions or submissions."
NR 432.07(1)(c)4.c. c. “I certify that the owners and operators of the CAIR renewable unit shall be bound by any order issued to me by the administrator, the department or a court regarding the CAIR renewable unit."
NR 432.07(1)(c)4.d. d. Where there are multiple holders of legal or equitable title to, or a leasehold interest in, a CAIR renewable unit, or where a utility or industrial customer purchases power from a CAIR renewable unit under a life-of-the-unit, firm power contractual arrangement, “I certify that: I have given a written notice of my selection as the CAIR renewable representative, and of the agreement by which I was selected to each owner and operator of the CAIR renewable unit; and any CAIR NOx allowances and CAIR NOx ozone season allowances and the proceeds of transactions involving CAIR NOx allowances and CAIR NOx ozone season allowances will be deemed to be held or distributed in proportion to each holder's legal, equitable, leasehold, or contractual reservation or entitlement, except that, if such multiple holders have expressly provided for a different distribution of CAIR NOx allowances or CAIR NOx ozone season allowances by contract, the CAIR NOx allowances, CAIR NOx ozone season allowances and the proceeds of transactions involving CAIR NOx allowances and CAIR NOx ozone season allowances will be deemed to be held or distributed in accordance with the contract."
NR 432.07(1)(c)5. 5. The signature of the CAIR renewable representative and the date signed.
NR 432.07(1)(d) (d) Upon receipt by the department of a complete certificate of representation under par. (c), the CAIR renewable representative of the CAIR renewable unit shall represent and by his or her representations, actions, inactions or submissions, legally bind each owner and operator of the CAIR renewable unit in all matters pertaining to the CAIR NOx trading program and the CAIR NOx ozone season trading program, notwithstanding any agreement between the CAIR renewable representative and owners and operators of the CAIR renewable unit.
NR 432.07(2) (2)Establishment of general account. The CAIR renewable representative shall establish a general account, for CAIR NOx allowances pursuant to 40 CFR 97.151 (b) and for CAIR NOx ozone season allowances pursuant to 40 CFR 97.351 (b) prior to submitting a request under s. NR 432.03 or 432.05 for CAIR NOx allowances or CAIR NOx ozone season allowances.
NR 432.07(3) (3)Aggregation of renewable units. If renewable units are aggregated pursuant to s. 299.83, Stats., the aggregated renewable units shall have only one CAIR renewable representative.
NR 432.07(4) (4)Requests for CAIR NOx allowances and CAIR NO x ozone season allowances. On or before May 1, 2011, or on or before May 1 of each year for which CAIR NOx allowances and CAIR NOx ozone season allowances are being requested, the CAIR renewable representative shall submit a request to the department for the allowances. The request shall contain specific unit information, including the monthly gross electrical output data to be used to calculate the unit's baseline energy output in ss. NR 432.03 and 432.05.
NR 432.07(5) (5)Multiple submissions. The department may not act as a mediator in situations where more than one entity submits a request for CAIR NOx allowances or CAIR NOx ozone season allowances based upon its ownership or operation interest in a CAIR renewable unit. If more than one entity submits an application for allowances for the same CAIR renewable unit for the same control period and the competing applications are not withdrawn, the department shall reject all the applications.
NR 432.07 History History: CR 06-104: cr. Register July 2007 No. 619, eff. 8-1-07.
NR 432.08 NR 432.08 Superior environmental performance.
NR 432.08(1)(1) The owner or operator of a CAIR NOx unit or a CAIR renewable unit may voluntarily perform activities that constitute superior environmental performance as defined in s. 299.83 (1) (g), Stats., for participation in Tier II of the environmental results program under ss. 299.80 and 299.83, Stats. These voluntary activities may include any of the following:
NR 432.08(1)(a) (a) Agreeing never to use a specified amount of CAIR NOx allowances or CAIR NOx ozone season allowances.
NR 432.08(1)(b) (b) Agreeing not to use a specified amount of CAIR NOx allowances or CAIR NOx ozone season allowances prior to a specified future year.
NR 432.08(1)(c) (c) Agreeing to reduce emissions of other pollutants such as sulfur dioxides, mercury, carbon dioxide or heavy metals beyond levels required by federal and state laws.
NR 432.08(2) (2) The level of environmental benefit provided by an entity that agrees to never use or to defer the use of a specified amount of CAIR NOx allowances or CAIR NOx ozone season allowances shall be based on the number of CAIR NOx allowances or CAIR NOx ozone season allowances involved and the number of years in which the allowances may not be used.
NR 432.08(3) (3) The environmental benefit provided by the reduction of emissions of pollutants other than NOx shall be based on the types of pollutants reduced and the amount of reduction beyond federal and state requirements.
NR 432.08(4) (4) In the context of a participation contract negotiated under the authority of s. 299.83 (6), Stats., or cooperative agreements negotiated under the authority of s. 299.80, Stats., reductions in recordkeeping, reporting or other administrative requirements related to state environmental regulations may be appropriate incentives for the activities described in sub. (1). The amount of flexibility provided shall be proportional to the environmental benefits provided by the participant.
NR 432.08 History History: CR 06-104: cr. Register July 2007 No. 619, eff. 8-1-07.
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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.