NR 432.03(2)(b)(b) The department shall allocate CAIR NOx allowances to each unit in an amount determined by 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: 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: 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. NR 432.03 HistoryHistory: CR 06-104: cr. Register July 2007 No. 619, eff. 8-1-07. NR 432.04NR 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)(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 NOx 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
∆EM2007 and ∆EM2008 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, ∆EMyear 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 ∆EMyear is calculated using 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: 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 HistoryHistory: CR 06-104: cr. Register July 2007 No. 619, eff. 8-1-07. NR 432.05NR 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)(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: 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: 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
