NR 432.01(1)(e)(e) If a unit qualifies as a solid waste incineration unit and meets the requirements of par. (b) 2. or 3. for at least 3 consecutive calendar years, but subsequently no longer meets all the requirements, the unit shall become a CAIR NOx unit starting on the earlier of January 1 of the year immediately after the first calendar year during which the unit first no longer qualifies as a solid waste incinerator unit or January 1 of the year immediately after the first 3 consecutive calendar years after 1990 for which the unit has an average annual fuel consumption of fossil fuel of 20% or more of the unit’s total fuel consumption. NR 432.01(2)(2) Purpose. This chapter is adopted under s. 285.11, Stats., to allocate the NOx allowances for the CAIR NOx annual trading program and the CAIR NOx ozone season trading program. The purpose of this chapter is to implement only those parts of the CAIR NOx annual trading program and the CAIR NOx ozone season trading program that is administered by the EPA under the federal implementation plan for the CAIR relating to the allocation of CAIR NOx allowances found in 40 CFR part 97, Subparts EE and EEEE. NR 432.01(3)(3) Petition for applicability. An owner or operator of any unit may petition the administrator of the EPA at any time for a determination concerning the applicability, under sub. (1), of the CAIR NOx trading program and the CAIR NOx ozone season trading program to the unit pursuant to 40 CFR 97.104 (c) and 40 CFR 97.304. NR 432.01 NoteNote: This chapter modifies the schedule and methodology for allocating CAIR nitrogen oxides (NOx) allowances that are set forth in the federal implementation plan. This chapter does not have a provision allowing any fossil fuel-fired unit that is not a CAIR NOx unit to ”opt-in” to a CAIR NOx trading program. This chapter is not intended to modify in any other way the implementation or administration in Wisconsin of the federal implementation plan for CAIR. The CAIR NOx federal implementation plan is published in 40 CFR part 97. NR 432.01 HistoryHistory: CR 06-104: cr. Register July 2007 No. 619, eff. 8-1-07. NR 432.02NR 432.02 Definitions. The definitions contained in ch. NR 400 apply to the terms used in this chapter. In addition, the following definitions apply to the terms used in this chapter: NR 432.02(1)(1) “Actual weighted average NOx emission rate” means, for an NOx averaging plan under s. NR 409.065 (7), for a year the sum of the products of the actual annual average NOx emission rate and actual annual heat input, as determined in accordance with 40 CFR part 75 transfers, for all units in the NOx averaging plan for the year divided by the sum of the actual annual heat input, as determined in accordance with 40 CFR part 75, for all units in the NOx averaging plan for the year. NR 432.02(2)(2) “Allocate” or ”allocation” means, with regard to CAIR NOx allowances or CAIR NOx ozone season allowances, the determination by the department of the amount of CAIR NOx allowances or CAIR NOx ozone season allowances to be initially credited to a CAIR NOx unit, a CAIR renewable unit, or other entity. NR 432.02(3)(3) “Biomass” means a resource that derives energy from wood or plant material or residue, biological waste, crops grown for use as a resource or landfill gases. ”Biomass” does not include garbage, as defined in s. 289.01 (9), Stats., or nonvegetation – based industrial, commercial or household waste, except that ”biomass” includes refuse-derived fuel used for a renewable facility that was in service before January 1, 1998. NR 432.02(4)(4) “Boiler” means an enclosed fossil fuel-fired or other fuel-fired combustion device used to produce heat and to transfer heat to recirculating water, steam, or other medium. NR 432.02(5)(5) “Bottom-cycle cogeneration unit” means a cogeneration unit in which the energy input to the unit is first used to produce useful thermal energy and at least some of the reject heat from the useful thermal energy application or process is then used for electricity production. NR 432.02(7)(7) CAIR designated representative” means, for a CAIR NOx source and each CAIR NOx unit at the source, the natural person who is authorized by the owners and operators of the source and all units at the source, in accordance with 40 CFR part 97, Subparts BB and HH and Subparts BBBB and HHHH, to represent and legally bind each owner and operator in matters pertaining to the CAIR NOx annual trading program and the CAIR NOx ozone season trading program. This person shall be the same person as the designated representative for the CAIR NOx annual trading program and the CAIR NOx ozone season trading program. If the CAIR NOx source is also subject to the acid rain program, this natural person shall be the same person as the designated representative under the acid rain program. NR 432.02(8)(8) “CAIR NOx allowance” means a limited authorization issued by the department under this chapter, to emit one ton of nitrogen oxides during a calendar year for which the authorization is allocated or during any calendar year thereafter under the CAIR NOx annual trading program. An authorization to emit nitrogen oxides that is not issued under this chapter, 40 CFR part 97, Subpart EE, 40 CFR 97.188, or provisions of a state implementation plan that are approved under 40 CFR 51.123 (o) (1) or (2) is not a CAIR NOx allowance. NR 432.02(9)(9) “CAIR NOx annual trading program” means a multi-state nitrogen oxides air pollution control and emission reduction program established by the administrator in accordance with 40 CFR part 97, Subparts AA to HH and 40 CFR 51.123 (p) and 52.35 or approved and administered by the administrator under provisions of a state implementation plan that are approved under 40 CFR 51.123 (o) (1) or (2), as a means of mitigating interstate transport of fine particulates and nitrogen oxides. NR 432.02(10)(10) “CAIR NOx ozone season allowance” means a limited authorization issued by the department under this chapter, to emit one ton of nitrogen oxides during an ozone season for which the authorization is allocated or during an ozone season of any calendar year thereafter under the CAIR NOx ozone season trading program or a limited authorization issued by a permitting authority for a control period during 2003 through 2008 under the NOx budget trading program in accordance with 40 CFR 51.121 (p) to emit one ton of nitrogen oxides during a control period, provided that the provision in 40 CFR 51.121 (b) (2) (ii) (E) may not be used in applying this definition and the limited authorization may not have been used to meet the allowance-holding requirement under the NOx budget trading program. An authorization to emit nitrogen oxides that is not issued under this chapter, 40 CFR part 97, Subpart EEEE, 40 CFR 97.388, or provisions of a state implementation plan that are approved under 40 CFR 51.123 (aa) (1) and (bb) (1), (aa) (2) and (bb) (1), (bb) (2) or (dd) or that meets the requirements of 40 CFR 51.121 (p) is not a CAIR NOx ozone season allowance. NR 432.02(11)(11) “CAIR NOx ozone season trading program” means a multi-state nitrogen oxides air pollution control and emission reduction program established by the administrator in accordance 40 CFR part 97, Subparts AAAA to HHHH and 40 CFR 51.123(ee) and 52.35 or administered by the administrator under provisions of a state implementation plan that are approved under 40 CFR 51.123 (aa) (1) and (bb) (1), (aa) (2) and (bb) (1), (bb) (2) or (dd), as a means of mitigating interstate transport of ozone and nitrogen oxides. NR 432.02(12)(12) “CAIR NOx source” means a source that includes one or more CAIR NOx units. NR 432.02(14)(14) “CAIR renewable representative” means, for a CAIR renewable unit, the natural person who is authorized by the owners and operators of the unit in accordance with s. NR 432.07, to represent and legally bind each owner and operator in matters pertaining to the CAIR NOx annual trading program and the CAIR NOx ozone season trading program. NR 432.02(15)(15) “CAIR renewable unit” means an installed and operational electric generating facility, located in this state, commencing operation on or after January 1, 2001 that does either of the following: NR 432.02(15)(a)(a) Generates renewable energy serving a generator with nameplate capacity greater than 25 MWe. NR 432.02(15)(b)(b) Consists of units combined pursuant to s. 299.83, Stats., serving generators with combined nameplate capacity of greater than 25 MWe. NR 432.02(16)(16) “Coal-fired” means combusting any amount of coal or coal-derived fuel, alone or in combination with any amount of any other fuel, during a specified year. NR 432.02(17)(17) “Cogeneration unit” means a stationary, fossil fuel-fired boiler or stationary, fossil fuel-fired combustion turbine which has equipment used to produce electricity and useful thermal energy for industrial, commercial, heating or cooling purposes through the sequential use of energy and which during the 12-month period starting on the date the unit first produces electricity and during any calendar year after the calendar year in which the unit first produces electricity, does one of the following, as appropriate: NR 432.02(17)(a)(a) For a topping-cycle cogeneration unit, produces useful thermal energy not less than 5% of total energy output and useful power that, when added to one-half of useful thermal energy produced, is not less then 42.5% of total energy input if useful thermal energy produced is 15% or more of total energy output, or not less than 45% of total energy input if useful thermal energy produced is less than 15% of total energy output. NR 432.02(17)(b)(b) For a bottoming-cycle cogeneration unit, produces useful power not less than 45% of total energy input. NR 432.02(18)(18) “Combustion turbine” means 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. If the enclosed device is combined cycle, the combustion turbine includes any associated duct burner, heat recovery steam generator, and steam turbine. NR 432.02(19)(19) “Commence commercial operation” means, with regard to a unit: NR 432.02(19)(a)1.1. For a unit that is a CAIR NOx unit under 40 CFR 97.104 or 97.304 on the later of November 15, 1990 or the date the unit commences commercial operation as defined in par. (a) (intro.) and that subsequently undergoes a physical change other than replacement of the unit by a unit at the same source, the date shall remain the date of commencement of commercial operation of the unit, which shall continue to be treated as the same unit. NR 432.02(19)(a)2.2. For a unit that is a CAIR NOx unit under 40 CFR 97.104 or 97.304 on the later of November 15, 1990 or the date the unit commences commercial operation as defined in par. (a) (intro.) and that is subsequently replaced by a unit at the same source, e.g., repowered, the date shall remain the replaced unit’s date of commencement of commercial operation, and the replacement unit shall be treated as a separate unit with a separate date for commencement of commercial operation as defined in par. (a) (intro.) or (b) (intro.) as appropriate. NR 432.02(19)(b)1.1. For a unit with a date for commencement of commercial operation as defined in par. (b) (intro.) and that subsequently undergoes a physical change, other than replacement of the unit by a unit at the same source, the date shall remain the date of commencement of commercial operation of the unit, which shall continue to be treated as the same unit. NR 432.02(19)(b)2.2. For a unit with a date for commencement of commercial operation as defined in par. (b) (intro.) and that is subsequently replaced by a unit at the same source, e.g., repowered, the date shall remain the replaced unit’s date of commencement of commercial operation, and the replacement unit shall be treated as a separate unit with a separate date for commencement of commercial operation as defined in par. (a) (intro.) or (b) (intro.) as appropriate. NR 432.02(20)(20) “Conventional resource” means a resource that derives energy from coal, oil, nuclear power or natural gas. A fuel cell that derives energy from natural gas is not a conventional resource. NR 432.02(21)(21) “Generator” means a device that produces electricity. NR 432.02(22)(22) “Gross electrical output” means electricity made available for use, including any electricity used in the power production process. A power production process includes any on-site processing or treatment of fuel combusted at the unit and any on-site emission controls. NR 432.02(23)(23) “Heat input” means, with regard to a specified period of time, the product, in mmBtu/time, 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 lb of fuel/time, as measured, recorded, and reported to the administrator by the CAIR designated representative and determined by the administrator in accordance with 40 CFR part 97, Subpart HH and excluding the heat derived from preheated combustion air, recirculated flue gases, or exhaust from other sources. NR 432.02(24)(24) “Heat input rate” means the amount of heat input, in mmBtu, divided by unit operating time, in hours, or, with regard to a specific fuel, the amount of heat input attributed to the fuel, in mmBtu, divided by the unit operating time, in hours, during which the unit combusts the fuel. NR 432.02(26)(26) “Nameplate capacity” means, starting from the initial installation of a generator, the maximum electrical generating output, in MWe, that the generator is capable of producing on a steady state basis and during continuous operation, when not restricted by seasonal or other deratings, as of the installation as specified by the manufacturer of the generator or, starting from the completion of any subsequent physical change in the generator resulting in an increase in the maximum electrical generating output, in MWe, that the generator is capable of producing on a steady state basis and during continuous operation, when not restricted by seasonal or other deratings, the increased maximum amount as of the completion as specified by the person conducting the physical change. NR 432.02(27)(27) “Operator” means any person who operates, controls or supervises a CAIR NOx unit, a CAIR NOx source or a CAIR renewable unit and includes any holding company, utility system or plant manager of a unit or source. NR 432.02(28)(a)(a) Any holder of any portion of the legal or equitable title in a CAIR NOx unit at the source, a CAIR NOx unit or a CAIR renewable unit. NR 432.02(28)(b)(b) Any holder of a leasehold interest in a CAIR NOx unit at the source, a CAIR NOx unit or a CAIR renewable unit. NR 432.02(28)(c)(c) Any purchaser of power from a CAIR NOx unit at the source, a CAIR NOx unit or a CAIR renewable unit under a life-of-the-unit, firm power contractual arrangement; provided that, unless expressly provided for in a leasehold agreement, owner may not include a passive lessor, or a person who has an equitable interest through the lessor, whose rental payments are not based, either directly or indirectly, on the revenues or income from the CAIR NOx unit. NR 432.02(29)(29) “Permitting authority” means a state air pollution control agency, local agency, other state agency or other agency authorized by the administrator of the EPA to issue or revise permits to meet the requirements of the CAIR NOx trading program or the CAIR NOx ozone season trading program in accordance with 40 CFR part 97, Subpart CC and CCCC or, if no agency has been authorized, the administrator of the EPA. NR 432.02(30)(30) “Potential electrical output capacity” means 33% of a unit’s maximum design heat input, divided by 3,413 Btu/kWh, divided by 1,000 kWh/MWh and multiplied by 8,760 hr/yr. NR 432.02(31)(31) “Renewable energy” means electricity derived from a renewable resource. NR 432.02(32)(32) “Renewable resource” means any of the following: NR 432.02(32)(a)(a) A resource that derives electricity from any of the following: NR 432.02(32)(a)1.1. A fuel cell that uses a renewable fuel, as determined by the public service commission. NR 432.02(32)(b)(b) A resource that derives electricity from hydroelectric power. NR 432.02(32)(c)(c) Any resource not described in par. (a) or (b), except a conventional resource, that the public service commission has designated as a renewable resource in rules promulgated under s. 196.378 (4), Stats. NR 432.02 NoteNote: The definition of a renewable resource is based on the definition in s. 196.378 (1) (h), Stats. NR 432.02(33)(33) “Repowered” means, with regard to a unit, replacement of a coal-fired boiler with one of the following coal-fired technologies at the same source as the coal-fired boiler: NR 432.02(33)(f)(f) As determined by the administrator in consultation with the secretary of energy, a derivative of one or more of the technologies under pars. (a) to (e) and any other coal-fired technology capable of controlling multiple combustion emissions simultaneously with improved boiler or generation efficiency and with significantly greater waste reduction relative to the performance of technology in widespread commercial use as of January 1, 2005. NR 432.02(34)(34) “Solid waste incineration unit” means a stationary, fossil-fuel-fired boiler or stationary, fossil-fuel-fired combustion turbine that is a ‘‘solid waste incineration unit’’ as defined in section 129 (g) (1) of the Act (42 USC 7429 (g) (1)). NR 432.02(35)(35) “Topping-cycle cogeneration unit” means a cogeneration unit in which the energy input to the unit is first used to produce useful power, including electricity, and at least some of the reject heat from the electricity production is then used to provide useful thermal energy. NR 432.02(36)(36) “Total energy input” means, with regard to a cogeneration unit, total energy of all forms supplied to a cogeneration unit, excluding energy produced by the cogeneration unit itself. NR 432.02(37)(37) “Total energy output” means, with regard to a cogeneration unit, the sum of useful power and useful thermal energy produced by the cogeneration unit. NR 432.02(38)(a)(a) A stationary, fossil fuel-fired boiler or combustion turbine or other stationary, fossil fuel-fired combustion device. NR 432.02(39)(39) “Useful thermal energy” means, with regard to a cogeneration unit, thermal energy that is any of the following: NR 432.02(39)(a)(a) Made available to an industrial or commercial process, not a power production process, excluding any heat contained in condensate return or makeup water. NR 432.02(39)(b)(b) Used in a heating application, such as space heating or hot water heating. NR 432.02(39)(c)(c) Used in space cooling application, such as thermal energy used by an absorption chiller. NR 432.02(40)(40) “Utility power distribution system” means the portion of an electricity grid owned or operated by a utility and dedicated to delivering electricity to customers. NR 432.02 NoteNote: The definitions in this section are limited to use in this chapter and are substantively similar to the federal CAIR definitions found in 40 CFR part 97 except for ”gross electrical output” and ”useful thermal energy”. The difference in the definitions for these 2 terms is necessary to implement the state allocation structure that differs from the allocation structure in the federal implementation plan. NR 432.02 HistoryHistory: CR 06-104: cr. Register July 2007 No. 619, eff. 8-1-07. NR 432.03NR 432.03 CAIR NOx allowance allocation. The department shall use the procedures in this section for calculating and allocating CAIR NOx allowances for CAIR NOx units and CAIR renewable units. NR 432.03(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 432.03(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 432.03(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 1a is available for all units: where:
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