Chapter NR 437

NR 437.02(8) (8) “Law” means any federal or state statute, rule, order, mandatory emission limiting condition in an air permit or other legal requirement.

NR 437.02(9) (9) “Mandatory emission limiting condition in an air permit” means a condition in an air pollution control permit that restricts emissions in order to comply with a federal or state statute, rule, order or other legal requirement or in order to avoid application of a federal or state statute, rule, order or other legal requirement. “Mandatory emission limiting condition in an air permit” does not include a permit condition that reflects a lower emission level that is the result of a voluntary action or a contractual agreement with the department, such as an agreement under the Environmental Cooperative Agreement program (s. 299.80, Stats.), or a federal voluntary program.

NR 437.02(10) (10) “Ozone precursor” means nitrogen oxides and volatile organic compounds.

NR 437.02(11) (11) “Quantification protocol” means a replicable and workable method or set of methods for quantifying emissions, emission rates, or the amount of carbon sequestered.

NR 437.02(12) (12) “Renewable energy project” means a project or facility that produces energy from a renewable resource.

NR 437.02(13) (13) “Renewable resource” means any of the following: direct radiation from the sun, geothermal energy, wind, tidal or wave action, flowing water, biomass, human waste, or animal waste.

NR 437.02(14) (14) “Voluntary emission reduction” or “VER” means any emission reduction, avoided emission or carbon sequestration that occurs before it is required by law or that results in emissions that are lower than those allowed by law.

NR 437.02 History History: CR 02-012: cr. Register October 2002 No. 562, eff. 11-1-02.

NR 437.03 NR 437.03 Eligibility. Any person may register VERs under this chapter. VERs may be registered if they meet all of the following requirements, as applicable:

NR 437.03(1) (1) The VERs are not required by or go beyond the requirements of law. The following are examples of VERs that are eligible for registration:

NR 437.03(1)(a) (a) VERs that result from actions taken to comply with a law that result in reductions of greenhouse gas or air contaminant emissions that are not required by or go beyond those required by law.

NR 437.03(1)(b) (b) VERs that are made after an applicable law is in effect but before the reduction is required by law.

NR 437.03(1)(c) (c) VERs that are made and are reflected in an air pollution control permit, as long as the level of reduction is beyond what is required by law.

NR 437.03 Note Note: A VER may be reflected in an air pollution control permit when, for example, the permit contains a requirement to use air pollution control equipment which reduces emissions beyond what is required by law. VERs that are later used to meet netting or offset requirements or to qualify as a synthetic minor source under air permitting requirements are no longer eligible for registration under this chapter.

NR 437.03(1)(d) (d) VERs that are part of a contractual agreement with the department, as defined within the contractual agreement.

NR 437.03(2) (2) The VER is the result of one or more actions taken. Examples of actions include:

NR 437.03(2)(a) (a) Change in type of fuel used.

NR 437.03(2)(b) (b) Installation and operation or modification of emission control equipment.

NR 437.03(2)(c) (c) Implementation of energy efficiency measures by the energy producer or user.

NR 437.03(2)(d) (d) Production, use, or purchase of renewable energy.

NR 437.03(2)(e) (e) Changes to, replacement of, or retirement of a manufacturing or combustion process.

NR 437.03(2)(f) (f) Product reformulation or replacement.

NR 437.03(2)(g) (g) Beneficial reuse or recycling activities.

NR 437.03(2)(h) (h) Increases in vehicle fleet fuel efficiency.

NR 437.03(2)(i) (i) Changes that reduce vehicle miles traveled.

NR 437.03(2)(j) (j) Carbon sequestration projects.

NR 437.03(2)(k) (k) Projects to collect, store and dispose of mercury-containing products in a manner that will prevent or minimize future releases of mercury into the environment.

NR 437.03(3) (3) The action and VER occur within the state of Wisconsin.

NR 437.03(4) (4) The VER has not been registered by any other person under this chapter.

NR 437.03(5) (5) 

NR 437.03(5)(a) (a) The amount of VERs to be registered is equal to or exceeds the corresponding threshold level in Table 1, except as provided in pars. (c) and (e).

NR 437.03(5)(b) (b) If emissions of more than one greenhouse gas have been reduced, the CO2 equivalents of each of the gases shall be totaled to determine whether the threshold level is met or exceeded.

NR 437.03(5)(c) (c) For actions which reduce emissions of multiple air contaminants or greenhouse gases, if the VER of at least one of the air contaminants or greenhouse gases equals or exceeds the registration threshold for that greenhouse gas or air contaminant, then all of the VERs may be registered, even if VERs for one or more greenhouse gases or air contaminants are below the corresponding thresholds.

NR 437.03(5)(d) (d) VERs may be aggregated from several or many sources to meet or exceed the registration threshold level in Table 1.

NR 437.03(5)(e) (e) The mass of mercury collected through a mercury collection and disposal project may be registered if it is equal to or exceeds 10 pounds.

NR 437.03(6) (6) The reduction or avoidance of emissions of greenhouse gases or the sequestration of carbon occurred after December 31, 1990.

NR 437.03(7) (7) The reduction or avoidance of emissions of air contaminants other than greenhouse gases occurred after December 31, 1993.

NR 437.03 History History: CR 02-012: cr. Register October 2002 No. 562, eff. 11-1-02.

NR 437.04 NR 437.04 Quantification protocols.

NR 437.04(1) (1) Quantification. The emission or carbon reserve baseline and the resulting VER shall be quantified using quantification protocols that are listed in sub. (2) (a) or that have been submitted to the department under sub. (2) (b).

NR 437.04(2) (2) Quantification protocols.

NR 437.04(2)(a) (a) The following protocols may be used to quantify baselines and VERs:

NR 437.04(2)(a)1. 1. Source emission testing performed in accordance with ss. NR 439.07 and 446.04.

NR 437.04(2)(a)2. 2. Continuous emissions monitoring performed in accordance with the methods specified in ss. NR 439.09 and 439.095 (6).

NR 437.04(2)(a)3. 3. Mass balance estimates based on evaluation of input and output streams using representative supplier data, engineering estimates or sampling analyses.

NR 437.04(2)(a)4. 4. Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories, intergovernmental panel on climate change, 1996, incorporated by reference in s. NR 484.06 (6).

NR 437.04(2)(a)5. 5. International Performance Measurement and Verification Protocol, Volume 1, U.S. department of energy, January 2001, incorporated by reference in s. NR 484.06 (7).

NR 437.04(2)(a)6. 6. Compilation of Air Pollutant Emission Factors, Volume I: Stationary, Point and Area Sources, U.S. environmental protection agency, AP-42, 5th edition, January 1, 1995, as revised by Supplements A to F and Update 2001, incorporated by reference in s. NR 484.05 (8).

NR 437.04(2)(a)7. 7. Compilation of Air Pollutant Emission Factors, Volume II: Mobile Sources, U.S. environmental protection agency, AP-42, 4th edition, September 1985, as revised by Supplement A (1991), incorporated by reference in s. NR 484.05 (8g).

NR 437.04(2)(a)8. 8. Compilation of Air Pollutant Emission Factors, Volume II: Mobile Sources, U.S. environmental protection agency, AP-42, 5th edition, Appendices G to K, incorporated by reference in s. NR 484.05 (8r).

NR 437.04(2)(a)9. 9. Emission Inventory Improvement Program Technical Reports, Volume I, Introduction and Use of EIIP Guidance for Emission Inventory Development, U.S. environmental protection agency, July 1997, incorporated by reference in s. NR 484.06 (4) (b) 1.

NR 437.04(2)(a)10. 10. Emission Inventory Improvement Program Technical Reports, Volume II, Point Sources, U.S. environmental protection agency, May 2002, incorporated by reference in s. NR 484.06 (4) (b) 2.

NR 437.04(2)(a)11. 11. Emission Inventory Improvement Program Technical Reports, Volume III, Area Sources and Area Source Method Abstracts, U.S. environmental protection agency, December 2001, incorporated by reference in s. NR 484.06 (4) (b) 3.

NR 437.04(2)(a)12. 12. Emission Inventory Improvement Program Technical Reports, Volume IV, Mobile Sources, U.S. environmental protection agency, September 1997, incorporated by reference in s. NR 484.06 (4) (b) 4.

NR 437.04(2)(a)13. 13. Emission Inventory Improvement Program Technical Reports, Volume VI, Quality Assurance Procedures and DARS Software, U.S. environmental protection agency, September 1997, incorporated by reference in s. NR 484.06 (4) (b) 5.

NR 437.04(2)(a)14. 14. Emission Inventory Improvement Program Technical Reports, Volume VII, Data Management Procedures, U.S. environmental protection agency, January 1999, incorporated by reference in s. NR 484.06 (4) (b) 6.

NR 437.04(2)(a)15. 15. Emission Inventory Improvement Program Technical Reports, Volume VIII. Estimating Greenhouse Gas Emissions, U.S. environmental protection agency, October 1999, published electronically, incorporated by reference in s. NR 484.06 (4) (b) 7.

NR 437.04(2)(a)16. 16. Emission Inventory Improvement Program Technical Reports, Volume IX, Particulate Emissions, U.S. environmental protection agency, August 2001, published electronically, incorporated by reference in s. NR 484.06 (4) (b) 8.

NR 437.04(2)(a)17. 17. Voluntary reporting of greenhouse gases under Section 1605(b) of the Energy Policy Act of 1992 - General Guidelines, October 1994, U.S. department of energy, incorporated by reference in s. NR 484.05 (14).

NR 437.04(2)(a)18. 18. Sector-Specific Issues and Reporting Methodologies Supporting the General Guidelines for the Voluntary Reporting of Greenhouse Gases under Section 1605(b) of the Energy Policy Act of 1992, Volumes I, Electricity Supply Sector, Residential and Commercial Buildings Sector, and Industrial Sector, October 1994, U.S. department of energy, incorporated by reference in s. NR 484.05 (15).

NR 437.04(2)(a)19. 19. Sector-Specific Issues and Reporting Methodologies Supporting the General Guidelines for the Voluntary Reporting of Greenhouse Gases under Section 1605(b) of the Energy Policy Act of 1992, Volumes II, Transportation Sector, Forestry Sector, and Agricultural Sector, October 1994, U.S. department of energy, incorporated by reference in s. NR 484.05 (16).

NR 437.04(2)(a)20. 20. The Greenhouse Gas Protocol – a corporate accounting and reporting standard, World Resources Institute and World Business Council for Sustainable Development, September 2001, incorporated by reference in s. NR 484.11 (11) (a).

NR 437.04(2)(a)21. 21. GHG Calculation Tools, World Resources Institute and World Business Council for Sustainable Development, October 2001, incorporated by reference in s. NR 484.11 (11) (b).

NR 437.04(2)(a)22. 22. Factor Information Retrieval Data System (FIRE), U.S. environmental protection agency, office of air quality planning and standards, version 6.23, incorporated by reference in s. NR 484.06 (4) (a).

NR 437.04(2)(b) (b) Alternative protocols may be submitted to the department, with the following information:

NR 437.04(2)(b)1. 1. A copy or description of the protocol.

NR 437.04(2)(b)2. 2. Documentation of the accuracy and replicability of the protocol.

NR 437.04(2)(b)3. 3. The name and address of the organization that developed the protocol.

NR 437.04(2)(b)4. 4. Whether the protocol has been approved by another state, federal or international agency or organization for registering voluntary emission reductions or carbon sequestration or for regulatory purposes.

NR 437.04(2)(c) (c) The department shall maintain a list of alternative quantification protocols submitted under par. (b) and make the list available to the public.

NR 437.04(2)(d) (d) If no protocol is available for quantifying a VER, the action may be registered without quantifying the VER, but the baseline shall be quantified. If no protocol is available for quantifying a baseline, the action may be registered without quantifying the baseline. When a protocol becomes available, the baseline and VER shall be quantified for each year for which the action is registered.

NR 437.04 History History: CR 02-012: cr. Register October 2002 No. 562, eff. 11-1-02.

NR 437.05 NR 437.05 Baseline determination. Any person wishing to register a VER shall determine a baseline in order to quantify the amount of emissions reduced or avoided or the amount of carbon sequestered, except as provided in sub. (4). Baselines shall be determined as follows:

NR 437.05(1) (1) Standard baseline.

NR 437.05(1)(a) (a) Emission reductions. Baselines for emission reduction actions shall be determined as the average annual actual emissions or emission rate for the 2 years immediately preceding the year in which the VER action is taken.

NR 437.05(1)(b) (b) Avoided emissions.

NR 437.05(1)(b)1. 1. Baselines for renewable energy projects shall be determined as the average annual emission rate for the Wisconsin generating system of the electric power generator whose emissions are avoided by the renewable energy project, in terms of mass per unit of energy produced. The average annual emission rate shall be the average of the emission rates for the 2 years immediately preceding the year in which the VER action is taken.

NR 437.05(1)(b)2. 2. Baselines for energy efficiency projects shall be determined as the average annual emission rate for the Wisconsin generating system of the electric power generator whose emissions are avoided by the energy efficiency project, in terms of mass per unit of energy produced. The average annual emission rate shall be the average of the emission rates for the 2 years immediately preceding the year in which the VER action is taken.

NR 437.05(2) (2) Alternative baselines.

NR 437.05(2)(a) (a) Alternative years may be used to determine the baseline if the 2 years immediately preceding the year in which the emission reduction or avoidance action was taken are not representative of the emissions or emission rate before the emission reduction action was taken. Any person using alternative years shall submit documentation to the department explaining the reason for the use of different years.

NR 437.05(2)(b) (b) For VER projects for which there are no prior emissions, the baseline shall be determined as the emission limits or performance standards required by law, if applicable. If there are no applicable emission limits or performance standards, the baseline shall be determined as the industry or activity average emission or emission rate. Any person using an alternative baseline under this subsection shall submit documentation to the department describing how the baseline was determined.

NR 437.05(2)(c) (c) For VERs that result from actions taken to comply with a law and that result in emissions which are lower than those required by law, the baseline shall be the standard baseline as described in sub. (1) or the emission limits required by law, whichever is less.

NR 437.05(3) (3) Baseline for carbon sequestration. For carbon sequestration projects, the baseline shall be determined as the amount of carbon, quantified in terms of carbon dioxide equivalents, stored in the carbon sequestration project area at the beginning of the project.

NR 437.05(4) (4) No baseline. When no quantification protocol is available to determine a baseline, the action may be registered without determining a baseline.

NR 437.05 History History: CR 02-012: cr. Register October 2002 No. 562, eff. 11-1-02.

NR 437.06 NR 437.06 Quantifying and registering voluntary emission reductions and quantifying baselines.

NR 437.06(1) (1) VERs and baselines shall be quantified on either a mass or a rate basis, or both. Mass-based VERs shall be quantified and registered as total tons or pounds per year. Rate-based VERs shall be quantified and registered as tons or pounds per unit of input or output.

NR 437.06(2) (2) Greenhouse gas VERs and baselines shall be quantified in terms of carbon dioxide equivalents.

NR 437.06(3) (3) Ozone precursor VERs and baselines may be quantified for the 5-month ozone season as defined in s. NR 400.02 (117), in terms of tons or pounds per day averaged over the ozone season, or they may be quantified on a calendar year basis, as tons per year.