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
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: 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: 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 NoteNote: 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 NoteNote: 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 NoteNote: 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)(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 NoteNote: 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: 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 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 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: 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 NOx 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: 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
