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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
where:
Actualyear is the unit's actual average emission rate for calendar year for 2007 or 2008 in lbs NOx/mmBtu determined in accordance with 40 CFR part 97, Subpart HH
0.25 is the target emission rate for early reductions in lbs NOx/mmBtu
NR 432.04(2) (2) Electric reliability. The department may allocate CAIR NOx allowances from the compliance supplement pool to any CAIR NOx unit for which the unit's CAIR designated representative demonstrates that compliance with the CAIR NOx allocation under s. NR 432.03, Table 1 for calendar year 2009 would create an undue risk to the reliability of electricity supply during 2009. The CAIR designated representative of the unit may request the allocation of CAIR NOx allowances from the compliance supplement pool in order to avoid an undue risk to the reliability of electricity supply during 2009 in accordance with the following requirements:
NR 432.04(2)(a) (a) The CAIR designated representative of the 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 not exceeding the minimum amount of CAIR NOx allowances necessary to remove the undue risk to the reliability of electricity supply.
NR 432.04(2)(b) (b) In the request under par. (a), the CAIR designated representative of the CAIR NOx unit shall demonstrate that, in the absence of an allocation to the unit in the amount of CAIR NOx allowances requested, the unit's compliance with CAIR NOx allocation under s. NR 432.03, Table 1 for calendar year 2009 would create an undue risk to the reliability of electricity supply during that year. This demonstration shall include a showing by the unit's CAIR designated representative that it would not be feasible to do both of the following:
NR 432.04(2)(b)1. 1. Obtain a sufficient amount of electricity from other electricity generation facilities for compliance with the CAIR NOx allocations under s. NR 432.03, Table 1 to prevent the undue risk.
NR 432.04(2)(b)2. 2. Obtain under subs. (1) and (3), or otherwise obtain, a sufficient amount of CAIR NOx allowances to prevent the undue risk.
NR 432.04(3) (3) Allocation procedure. The department shall review each request submitted under subs. (1) and (2) and shall allocate CAIR NOx allowances for calendar year 2009 to CAIR NOx units covered by the requests as follows:
NR 432.04(3)(a) (a) Upon receipt of each request, the department shall determine whether the amount of the CAIR NOx allowances requested from the compliance supplement pool meets the requirements of sub. (1) or (2).
NR 432.04(3)(b) (b) If the amount of CAIR NOx allowances in the compliance supplement pool is greater than or equal to the total amount of CAIR NOx allowances in all requests submitted under subs. (1) and (2), the department shall allocate to each CAIR NOx unit covered by the requests the amount of CAIR NOx allowances requested, and determined eligible for under par. (a).
NR 432.04(3)(c) (c) If the state's compliance supplement pool has a smaller amount of CAIR NOx allowances than the total amount of CAIR NOx allowances in all requests submitted under subs. (1) and (2), as adjusted under par. (a), the department shall allocate CAIR NOx allowances to each CAIR NOx unit covered by the requests according to equation 8:
- See PDF for diagram PDF Equation 8
where:
Zi is the amount of CAIR NOx allowances allocated to unit i from the state's compliance supplement pool 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 CSP
Yi is the amount of CAIR NOx allowances requested for unit i under subs. (1) and (2), as determined eligible under par. (a)
CSP is the amount of CAIR NOx allowances in the state's compliance supplement pool as provided in 40 CFR 97.143
k is the number of units which the department deemed eligible for requests made under subs. (1) and (2)
NR 432.04(3)(d) (d) By November 15, 2009, the department shall determine the allocations under par. (b) or (c), as applicable. The department shall make available to the public each determination of CAIR NOx allowances under par. (c) and shall provide an opportunity for submission of objections to the determination. Objections shall be limited to addressing whether the determination is in accordance with sub. (1) or (2) and par. (b) or (c) and data correction. Based on any objections, the department may adjust each determination to the extent necessary to ensure that it is in accordance with sub. (1) or (2) and par. (b) or (c) and the data is correct.
NR 432.04(3)(e) (e) By December 15, 2009, the department shall notify the administrator of the allocations made under par. (d).
NR 432.04 History History: CR 06-104: cr. Register July 2007 No. 619, eff. 8-1-07.
NR 432.05 NR 432.05  CAIR NOx ozone season allowance allocation. The department shall use the procedures in this section for calculating and allocating CAIR NOx ozone season allowances for CAIR NOx units and CAIR renewable units.
NR 432.05(1) (1) Unit baselines.
NR 432.05(1)(a)(a) Calculating baseline energy output. The department shall calculate the baseline energy output of each CAIR NOx unit and each CAIR renewable unit, in MWh according to the following equations as appropriate:
NR 432.05(1)(a)1. 1. For a CAIR NOx unit that is a cogeneration unit and that has operated for 5 or more consecutive calendar years, by using one of the following equations:
NR 432.05(1)(a)1.a. a. Use equation 1a 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 9a is available for all units:
- See PDF for diagram PDF Equation 9a
where:
B is the unit baseline energy output made available by the cogeneration unit in MWh
GEavg is the average of the 3 highest annual amounts of the unit's ozone season gross electric output in MWh over the 5-year period identified in par. (b)
TEavg is the average of the 3 highest annual amounts of the unit's ozone season useful thermal energy in mmBtu over the 5-year period identified in par. (b)
3.4 is a conversion factor in mmBtu/MWh
NR 432.05(1)(a)1.b. b. Use equation 9b if more than one unit serves the same generator and unit-level data for equation 9a is not available for all units:
- See PDF for diagram PDF Equation 9b
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 ozone season 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 ozone season 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 432.05(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 432.05(1)(a)2.a. a. Use equation 10a 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 10a is available for all units:
- See PDF for diagram PDF Equation 10a
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 ozone season gross electric output in MWh over the 5-year period identified in par. (b)
NR 432.05(1)(a)2.b. b. Use equation 10b if more than one unit serves the same generator and unit-level data for equation 10a is not available for all units:
- See PDF for diagram PDF Equation 10b
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 ozone season 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 432.05(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 432.05(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 ozone seasons 2000 to 2004.
NR 432.05(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 ozone season 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 432.05 Note Note: For example in 2021, unit baseline energy output for the calculation of allocation for 2025 to 2029 allowances will be calculated using ozone season 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 ozone season data from 2021 to 2025.
NR 432.05(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 432.05(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 ozone seasons 2006 to 2010.
NR 432.05(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 ozone seasons 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 432.05 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 432.05(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 432.05 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 ozone season 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 ozone season 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 ozone season 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 the ozone season in 2011. The next unit update would occur in 2021 and would use 2015 to 2019 ozone season 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 432.05(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 432.05(1m) (1m) State baseline.
NR 432.05(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 2.
NR 432.05(1m)(b) (b) In 2011 and annually thereafter, the department shall calculate an ozone season state baseline by summing the unit baselines calculated according to sub. (1) for all CAIR NOx units and all CAIR renewable units.
NR 432.05 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 432.05(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:
- See PDF for diagram PDF
  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.
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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.