(a)
Definitions. For the purposes of this section, the following
definitions apply, provided that any term related to the administration of this
section that is not defined in this subsection shall be as defined or described
in 40 CFR 96 subpart AAAA and any remaining terms not defined shall be as
defined in section
22a-174-1 of the
Regulations of Connecticut State Agencies:
(1) "CAIR NOx Ozone
Season unit" means a unit that:
(A) Is a "CAIR
NOx Ozone Season unit" under
40
CFR 96.304; or
(B) Satisfies the criteria in one of the
following clauses:
(i) Is a fossil-fuel-fired
emission unit that operated at any time during the period from May through
September 1990 and that serves a generator with a nameplate capacity of fifteen
(15) megawatts or more,
(ii) Is a
fossil-fuel-fired emission unit that serves a generator that generates
electricity at a rated output of fifteen (15) megawatts or more by employing
"cogeneration technology," as defined in section
16-1 of
the Connecticut General Statutes,
(iii) Is a fossil-fuel-fired boiler or
indirect heat exchanger with a maximum design heat input of 250 MMBtu/hr or
more, or
(iv) Is a
fossil-fuel-fired emission unit that began operating after September 30, 1990
and that serves a generator that generates electricity at a rated output of
fifteen (15) megawatts or more.
(2) "CAIR NATS" means "CAIR
NOx Ozone Season Allowance Tracking System" as defined
in 40 CFR
96.302.
(3) "Coal-fired" means combusting any amount
of coal or coal-derived fuel, alone or in combination with any amount of any
other fuel, during any year.
(4)
"Combined heat and power system" or "CHP system" means a generation unit that
sequentially produces both electric power and thermal energy from a single
source.
(5) "Commence commercial
operation" means, with regard to a unit:
(A)
To have begun to produce steam, gas, or other heated medium used to generate
electricity for sale or use, including test generation, except as provided in
subparagraph (B) of this definition and
40 CFR
96.305.
(i)
For a unit that is a CAIR NOx Ozone Season unit on the
later of November 15, 1990 or the date the unit commences commercial operation
as defined in subparagraph (A) of this definition and that subsequently
undergoes a physical change (other than replacement of the unit by a unit at
the same source), such date shall remain the date of commencement of commercial
operation of the unit, which shall continue to be treated as the same
unit.
(ii) For a unit that is a
CAIR NOx Ozone Season unit on the later of November 15,
1990 or the date the unit commences commercial operation as defined in
subparagraph (A) of this definition and that is subsequently replaced by a unit
at the same source (e.g., repowered), such 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 of commencement of
commercial operation as defined in subparagraph (A) or (B) of this definition
as appropriate.
(B)
Except as provided in
40 CFR
96.305, for a unit that is not a CAIR
NOx Ozone Season unit on the later of November 15, 1990
or the date the unit commences commercial operation as defined in subparagraph
(A) of this definition, the unit's date of commencement of commercial operation
shall be the date on which the unit becomes a CAIR NOx
Ozone Season unit.
(i) For a unit with a date
of commencement of commercial operation as defined in subparagraph (B) of this
definition and that subsequently undergoes a physical change (other than
replacement of the unit by a unit at the same source), such date shall remain
the date of commencement of commercial operation of the unit, which shall
continue to be treated as the same unit.
(ii) For a unit with a date of commencement
of commercial operation as defined in subparagraph (B) of this definition and
that is subsequently replaced by a unit at the same source (e.g., repowered),
such 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 of commencement of commercial operation as defined in
subparagraph (A) or (B) of this definition as appropriate.
(C) Notwithstanding subparagraphs (A) and (B)
of this definition, for a unit not serving a generator producing electricity
for sale, the unit's date of commencement of operation shall also be the unit's
date of commencement of commercial operation.
(6) "Commence operation" means:
(A) To have begun any mechanical, chemical,
or electronic process, including, with regard to a unit, start-up of a unit's
combustion chamber, except as provided in subparagraph (B) of this definition,
provided that:
(i) For a unit that has
undergone a physical change other than replacement of the unit by a unit at the
same source after the date the unit commences operation as defined in
subparagraph (A) of this definition, such date shall remain the date of
commencement of operation of the unit, which shall continue to be treated as
the same unit, and
(ii) For a unit
that is replaced by a unit at the same source after the date the unit commences
operation as defined in subparagraph (A) of this definition, such date shall
remain the replaced unit's date of commencement of operation, and the
replacement unit shall be treated as a separate unit with a separate date of
commencement of operation as defined in subparagraphs (A)(i) or (A)(ii) of this
definition, as appropriate.
(B) Solely for purposes of 40 CFR 96, subpart
HHHH, for a unit that is not a CAIR NOx Ozone Season
unit on the later of November 15, 1990 or the date the unit commences operation
as defined in subparagraph (A) of this definition and that subsequently becomes
a CAIR NOx Ozone Season unit, the unit's date of
commencement of operation shall be the date on which the unit becomes a CAIR
NOx Ozone Season unit provided that:
(i) For a unit that subsequently undergoes a
physical change other than replacement of the unit by a unit at the same source
after the date the unit commences operation as defined in subparagraph (B) of
this definition, such date shall remain the date of commencement of operation
of the unit, which shall continue to be treated as the same unit, and
(ii) For a unit that is replaced by a unit at
the same source after the date the unit commences operation as defined in
subparagraph (B) of this definition, such date shall remain the replaced unit's
date of commencement of operation, and the replacement unit shall be treated as
a separate unit with a separate date of commencement of operation as defined in
subparagraph (A) or (B) of this definition, as appropriate.
(7) "Energy efficiency
project" or "EEP" means the installation or implementation at a stationary
source of one or more of the measures listed in subparagraphs (A) through (E)
of this definition that is not otherwise required by law or regulation and that
results in energy savings at a facility located in the State of Connecticut:
(A) The construction of a new building or
addition that exceeds the minimum energy efficiency requirements of the State
Building Code;
(B) The
installation, replacement or modification of equipment, fixtures or
materials;
(C) The commencement or
modification of building or facility operation and maintenance
procedures;
(D) A combined heat and
power system; or
(E) Any other
measure approved by the commissioner in writing.
Projects that do not result in energy savings, such as
reductions in labor and load shifting, projects resulting in energy savings for
a CAIR NOx Ozone Season unit and mobile source measures
are not considered EEPs.
(8) "Energy Efficiency and Renewable Energy
Set-Aside Baseline Period" or "EERESA Baseline Period" means either of the two
control periods, as approved by the commissioner, preceding the year in which
an EEP, a renewable energy project (REP) or a qualifying other project (QOP),
as defined in this section, is first put in use or first becomes operational.
The EERESA Baseline Period remains constant when calculating CAIR
NOx Ozone Season allowance allocations for such REP, EEP
or QOP in any subsequent year.
(9)
"EERESA Representative" means a person who aggregates any combination of one or
more renewable energy projects, energy efficiency projects or qualifying other
projects, to equal at least one whole allowance, or who aggregates two or more
years of operation by a single project, to equal at least one whole allowance.
An EERESA representative includes, but is not limited to, the following: a
common owner of the aggregated projects, an energy service company, an emission
trading broker or a state or municipal entity.
(10) "Fossil-fuel-fired" means:
(A) With regard to a unit, combusting any
amount of fossil fuel in any calendar year; or
(B) Solely for purposes of applying
subparagraph (B) of the definition of "CAIR NOx Ozone
Season unit" in subsection (a) of this section, the combustion of fossil fuel,
any derivative of fossil fuel alone, or a combination of fuels, of which fossil
fuel:
(i) Comprises more than fifty percent
(50%) of the annual heat input (in Btu) in 1990 or any year thereafter;
or
(ii) Is projected to comprise
more than fifty percent (50%) of the annual heat input (in Btu), provided that
the commissioner shall consider an emission unit as "fossil-fuel fired" upon
the date such emission unit begins combusting fossil fuel.
(11) "Gross energy input" means
total fuel-related heat input in Btus per unit of time, based upon the higher
heating value of fuel.
(12)
"Indirect heat exchanger" means combustion equipment in which the flame or
products of combustion are separated from any contact with the principal
material in the process by metallic or refractory walls, and that emits exhaust
gases only through a stack. Indirect heat exchangers include, but are not
limited to, steam boilers, vaporizers, melting pots, heat exchangers, column
reboilers, fractioning column feed preheaters, reactor feed preheaters,
pyrolysis heaters and fuel-fired reactors.
(13) "Industrial Unit" means a
fossil-fuel-fired boiler or indirect heat exchanger with a maximum design heat
input of 250 MMBtu/hr or more.
(14)
"Nameplate capacity" means, solely for purposes of applying subparagraph (B) of
the definition of "CAIR NOx Ozone Season unit" in
subsection (a) of this section, the maximum electrical generating output (in MW
electrical) that a generator can sustain over a specified period of time when
not restricted by seasonal or other deratings as measured in accordance with
the United States Department of Energy standards.
(15) "Net electricity output" means the gross
electric generation (in MWh) less any of the energy output consumed in the
process of generation.
(16) "New
Unit" means any fossil-fuel-fired unit that commences operation on or after
January 1, 2006 and that serves a generator that generates electricity at a
rated output of fifteen (15) megawatts or more.
(17) "Normal system operation" means all
times of operation except periods of startup, shutdown or malfunction;
commissioner-approved stack testing; or intentional sootblowing, fuel switching
or sudden load changing.
(18)
"Permitting authority" shall mean "commissioner" as defined in section
22a-174-1 of the
Regulations of Connecticut State Agencies, except for purposes of the
definitions of "Allocate or allocation" and "CAIR NOx
Ozone Season allowance" in
40
CFR 96.302, in which case "permitting
authority" shall have the same meaning as in 40 CFR 96 subpart AAAA.
(19) "Phase I Unit" means a CAIR
NOx Ozone Season unit that is a fossil-fuel-fired unit
that operated at any time prior to November 15, 1990 and that serves a
generator with a nameplate capacity of fifteen (15) megawatts or
more.
(20) "Phase II Unit" means a
fossil-fuel-fired unit that began operating on or after November 15, 1990, that
serves a generator that generates electricity at a rated output of fifteen (15)
megawatts or more.
(21) "Proponent"
means any person who owns, leases, operates or controls an energy efficiency
project, a renewable energy project or a qualifying other project, or an EERESA
representative.
(22) "Prospective
project" means a REP, EEP or QOP that is not in operation but for which the
owner has awarded contracts for installation or purchase of components or begun
on-site construction or installation.
(23) "Qualifying other project" or "QOP"
means the implementation or installation of a measure at a stationary source
that is not otherwise required by law or regulation, that results in thermal or
electric energy savings, that is not an EEP or a REP and that is approved by
the commissioner in writing.
(24)
"Reciprocating grate waste tire fired Unit" means an emissions unit com-busting
a single item waste stream of tires that began operating on or after November
15, 1990, that serves a generator that generates electricity at a rated output
of fifteen (15) megawatts or more.
(25) "Renewable energy" means energy
generated by one or more of the following fuels, energy resources or
technologies, and that does not emit NOx: solar
photovoltaic or solar thermal energy; wind energy; fuel cells, which do not
employ a fuel processor that emits NOx; ocean thermal,
wave or tidal energy; or hydro and geothermal energy.
(26) "Renewable energy project" or "REP"
means one or more generation units producing renewable energy, located in the
State of Connecticut or directly and solely connected to transmission
facilities in the State of Connecticut, exclusive of a generation unit that has
been awarded CAIR NOx Ozone Season allowances under
another program administered by federal or state government.
(27) "State Building Code" means the State
Building Code adopted pursuant to section
29-252
of the Connecticut General Statutes.
(28) "State trading budget" means
"Connecticut emission budget" as identified in subsection (c) of this
section.
(29) "Unit of production"
means a manufactured item or raw, intermediate or final material, including
steam or other product, measured in discrete units and produced as a result of
the consumption of energy in a specific process or by a piece of
equipment.
(30) "Useful net thermal
energy" means, for a REP generating thermal energy or for use of a CHP system,
the energy output of thermal energy used for heating, cooling, industrial
processes or other beneficial uses.
(c)
Connecticut emission budget.
(1) The Connecticut emission budget is two
thousand six hundred ninety one (2,691) tons of NOx
during each control period for each year beginning in 2009.
(2) The commissioner shall implement the
Connecticut emission budget by allocation of NOx
allowances as described in subsection (e) of this section.
(3) The commissioner shall establish the
following accounts in the CAIR NATS:
(A) The
Connecticut State Account, to hold the Connecticut emission budget for
allocation to the compliance accounts of CAIR NOx Ozone
Season units; and
(B) The
Connecticut Retirement Account, to hold NOx allowances
exacted for purposes other than compliance with this section and permanently
retired.
(d)
Allocation timing.
(1) For CAIR
NOx Ozone Season units other than New Units, the
commissioner shall allocate CAIR NOx Ozone Season
allowances according to the following schedule:
(A) No later than April 30, 2007, determine
and notify the Administrator of each CAIR NOx Ozone
Season unit's allocation of CAIR NOx Ozone Season
allowances for the 2009, 2010 and 2011 control periods;
(B) No later than October 31, 2008, determine
and notify the Administrator of each CAIR NOx Ozone
Season unit's allocation of CAIR NOx Ozone Season
allowances for the 2012 control period; and
(C) No later than October 31, 2009 and each
year thereafter, determine and notify the Administrator of each CAIR
NOx Ozone Season unit's allocation of CAIR
NOx Ozone Season allowances for the control period in
the fourth calendar year after the year in which the notification is to be
submitted.
(2) For New
Units, the commissioner shall allocate CAIR NOx Ozone
Season allowances as follows:
(A) A New Unit
commencing operation between January 1 and September 30, 2006, inclusive:
(i) Shall be considered a New Unit for the
purpose of allocating CAIR NOx Ozone Season allowances
during the 2009 through 2011 control periods, and
(ii) Shall be considered a Cogeneration Unit,
an Industrial Unit, a Reciprocating grate waste tire fired Unit or a Phase II
Unit for the purpose of allocating CAIR NOx Ozone Season
allowances for the 2012 and later control periods;
(B) A New Unit commencing operation between
October 1, 2006 and September 30, 2007, inclusive:
(i) Shall be considered a New Unit for the
purpose of allocating CAIR NOx Ozone Season allowances
during the 2009 through 2012 control periods, and
(ii) Shall be considered a Cogeneration Unit,
an Industrial Unit, a Reciprocating grate waste tire fired Unit or a Phase II
Unit for the purpose of allocating CAIR NOx Ozone Season
allowances for the 2013 and later control periods;
(C) A New Unit commencing operation between
October 1, 2007 and September 30, 2008, inclusive:
(i) Shall be considered a New Unit for the
purpose of allocating CAIR NOx Ozone Season allowances
during the 2009 through 2013 control periods, and
(ii) Shall be considered a Cogeneration Unit,
an Industrial Unit, a Reciprocating grate waste tire fired Unit or a Phase II
Unit for the purpose of allocating CAIR NOx Ozone Season
allowances for the 2014 and later control periods; and
(D) A New Unit commencing operation after
September 30, 2008:
(i) Shall be considered a
New Unit for the period of time commencing with initial operation through
operation during the sixth control period or portion thereof following date of
initial operation, and
(ii) Shall
be considered a Cogeneration Unit, an Industrial Unit, a Reciprocating grate
waste tire fired Unit or a Phase II Unit for the purpose of allocating CAIR
NOx Ozone Season allowances for the seventh and later
control periods.
(3) For New Units, the commissioner will
determine and notify the Administrator of each New Unit's allocation of CAIR
NOx Ozone Season allowances by July 31 of the year for
which the CAIR NOx Ozone Season allowances are
allocated.
(e)
CAIR NOxOzone Season
allowance allocations.
(1) In applying
the provisions of this subsection to a CAIR NOx Ozone
Season unit, such unit shall be categorized as a Phase I Unit, a Cogeneration
Unit, an Industrial Unit, a New Unit, a Reciprocating grate waste tire fired
Unit or a Phase II Unit, as applicable. CAIR NOx Ozone
Season units meeting the definition of Cogeneration Unit shall not be
categorized as a Phase I Unit, Industrial Unit, Reciprocating grate waste tire
fired Unit or a Phase II Unit. CAIR NOx Ozone Season
units meeting the definition of Industrial Unit shall not be categorized as a
Phase I Unit, Cogeneration Unit, Reciprocating grate waste tire fired Unit or a
Phase II Unit.
(2) For the control
period commencing May 1, 2009 and through the 2014 control period, the
commissioner shall allocate among the owners or operators of CAIR
NOx Ozone Season units, other than New Units, up to two
thousand two hundred twenty-three (2,223) CAIR NOx Ozone
Season allowances.
(3) For the
control period commencing May 1, 2015 and each control period thereafter, the
commissioner shall allocate among the owners or operators of CAIR
NOx Ozone Season units, other than New Units, up to two
thousand two hundred eighty-nine (2,289) CAIR NOx Ozone
Season allowances.
(4) For the
control period commencing May 1, 2009 and through the 2014 control period, the
commissioner shall allocate among the owners or operators of New Units up to
two hundred (200) CAIR NOx Ozone Season
allowances.
(5) For the control
period commencing May 1, 2015 and each control period thereafter, the
commissioner shall allocate among the owners or operators of New Units up to
one hundred thirty-four (134) CAIR NOx Ozone Season
allowances.
(6) For the control
period commencing May 1, 2009 and each control period thereafter, the
commissioner shall allocate up to two hundred sixty-eight (268) CAIR
NOx Ozone Season allowances to Proponents in accordance
with subsection (f) of this section.
(7) For the 2009, 2010, and 2011 control
periods, the commissioner, in the following manner and order, shall:
(A) Allocate to the compliance account of
each Cogeneration Unit, Industrial Unit and Reciprocating grate waste tire
fired Unit the number of CAIR NOx Ozone Season
allowances equal to the product of the following equation:
Click
here to view image.
Where:
ER = The lowest of:
(i) the unit's NOx
RACT emission rate (in lb/mmBtu of heat input) during the 2005 and 2006 control
periods, as required in section
22a-174-22 the
Regulations of Connecticut State Agencies, or
(ii) the unit's average permitted
NOx emission rate (in lb/mmBtu of heat input) during the
2005 and 2006 control periods, or
(iii) the average of the unit's actual
NOx emission rate (in lb/mmBtu of heat input) during the
2005 and 2006 control periods, unless the owner or operator submits a written
request for the commissioner's review and approval, for the use of an alternate
two-year control period during 2003 through 2006, including justification and
data for such alternate two-year control period.
HIAVG = the unit's actual average heat
input (in mmBtu) during the 2005 and 2006 control periods, unless the owner or
operator submits a written request for the commissioner's review and approval,
for the use of an alternate two-year control period during 2003 through 2006,
including justification and data for such alternate two-year control
period
(B)
Allocate to the compliance account of each Phase I Unit the number of CAIR
NOx Ozone Season allowances equal to the product of the
following equation:
Click
here to view image.
Where:
EOU = each Phase I Unit's average net
electricity output (in MWh) during the 2005 and 2006 control periods, unless
the owner or operator submits a written request for the commissioner's review
and approval, for the use of an alternate two-year control period during 2003
through 2006, including justification and data for such alternate two-year
control period
(C) Allocate
to the compliance account of each Phase II Unit the number of CAIR
NOx Ozone Season allowances equal to the product of the
following equation:
Click
here to view image.
Where:
A = 2,223 CAIR NOx Ozone Season
allowances
AALLOCATED = the total number of CAIR
NOx Ozone Season allowances allocated to Industrial
Units, Cogeneration Units, Reciprocating grate waste tire fired Units and Phase
I Units in a given year pursuant to subdivisions (7)(A) and (7)(B) of this
subsection
EOU = the Phase II Unit's average net
electricity output (in MWh) for the 2005 and 2006 control periods, unless the
owner or operator submits a written request for the commissioner's review and
approval, for the use of an alternate two-year control period during 2003
through 2006, including justification and data for such alternate two-year
control period
EOTOTAL = the total average net
electricity output (in MWh) of all Phase II Units during the 2005 and 2006
control periods, unless the owner or operator submits a written request for the
commissioner's review and approval, for the use of an alternate two-year
control period during 2003 through 2006, including justification and data for
such alternate two-year control period
(D) Any owner or operator may submit a
written request for the commissioner's review and approval for the use of an
alternate two-year control period pursuant to sections
22a-174-22 c(e)(7)(A),
(B) or (C) of the Regulations of Connecticut State Agencies if the average
NOx emission rate, average heat input or average net
electricity output data from the CAIR NOx Ozone Season
unit during the 2005 and 2006 control periods was not representative for the
following reasons:
(i) Transmission line
failure,
(ii) Equipment failure,
or
(iii) Any other reason related
to unplanned outage.
(8) For the 2012 control period, and each
control period thereafter, the commissioner, in the following manner and order,
shall:
(A) Allocate to the compliance account
of each Cogeneration Unit, Industrial Unit, and Reciprocating grate waste tire
fired Unit the number of CAIR NOx Ozone Season
allowances equal to the product of the following calculation:
Click
here to view image.
Where:
ER = the lowest of:
(i) the unit's NOx
RACT emission rate (in lb/mmBtu of heat input), during the
5th and 6th control
periods preceding the year of allocation, as required in section
22a-174-22 of the
Regulations of Connecticut State Agencies, or
(ii) the unit's average permitted
NOx emission rate (in lb/mmBtu of heat input) during the
5th and 6th control
periods preceding the year of allocation, or
(iii) the average of the unit's actual
NOx emission rate (in lb/mmBtu of heat input) during the
5th and 6th control
periods preceding the year of allocation.
HIAVG = the unit's actual average heat
input (in mmBtu) during the 5th and
6th control periods preceding the year of
allocation
(B)
Allocate to the compliance account of each Phase I Unit and Phase II Unit the
number of CAIR NOx Ozone Season allowances equal to the
product of the following equation:
Click
here to view image.
Where:
A = 2,223 CAIR NOx Ozone Season
allowances for 2009 through
2014; 2,289 CAIR NOx Ozone Season
allowances for 2015 and beyond
AALLOCATED = the total number of CAIR
NOx Ozone Season allowances allocated to Industrial
Units, Cogeneration Units and Reciprocating grate waste tire fired Units
pursuant to subdivision (8)(A) of this subsection for the control period
EOU = each Phase I and Phase II Unit's
average net electricity output (in MWh) during the
5th and 6th control
periods preceding the year of allocation
EOTOTAL = the total average net
electricity output (in MWh) of Phase I and Phase II Units during the
5th and 6th control
periods preceding the year of allocation
(9) By July 31 of the 2009 control period and
each control period thereafter, the commissioner shall:
(A) Allocate to the compliance account of
each New Unit the number of CAIR NOx Ozone Season
allowances equal to the product of the following equation, subject to the
limitation in subparagraph (B) of this subdivision:
Click
here to view image.
Where:
ER = the lower of:
(i)
0.12 lb/MMBtu, or
(ii) the unit's
permitted NOx emission rate (in lb/mmBtu of heat input)
during the control period.
HIR = the lower of:
(i) the unit's maximum design heat input (in
mmBtu/hr),
or
(ii) the
unit's permitted heat input rate (in mmBtu/hr) during the control period.
HOCP = the number of hours the unit
operated during the prior control period, rounded to the nearest whole hour by
rounding down for decimals less than 0.5, and rounded up for decimals of 0.5 or
greater. If the unit did not operate during the prior control period, the
number of hours shall be determined by the commissioner based on information
submitted pursuant to subsection (i)(2) of this section
(B) For 2009 through
2014:
Click
here to view image.
rounded to the nearest whole allowance, as appropriate.
For 2015 and beyond:
Click
here to view image.
rounded to the nearest whole allowance, as appropriate.
Where:
[SIGMA] NUACALCULATED = the total number
of CAIR NOx Ozone Season allowances calculated for New
Units pursuant to subdivision (9)(A) of this subsection
A ALLOCATED-NU = the number of CAIR
NOx Ozone Season allowances the commissioner shall
allocate to the compliance account of each New Unit
ANU = the number of CAIR
NOx Ozone Season allowances calculated for each New Unit
pursuant to subdivision (9)(A) of this subsection
The commissioner may adjust an allowance allocation under this
subparagraph as necessary to not exceed [SIGMA] NUACALCULATED.
(C) Allocate to the compliance
account of each Phase I and Phase II Unit the number of CAIR
NOx Ozone Season allowances, if any, equal to the
product of the following equation:
For 2009 through 2014:
Click
here to view image.
For 2015 and beyond:
Click
here to view image.
Where:
AALLOCATED-NU = The number of CAIR
NOx Ozone Season allowances allocated to New Units
pursuant to subdivision (9)(A) of this subsection for the current year control
period.
AALLOCATED-P = The number of CAIR
NOx Ozone Season allowances allocated to Proponents
pursuant to subsection (f) of this section for the current year control
period.
EOU = For the years 2009 through 2011,
each Phase I and Phase II Unit's average net electricity output (in MWh) during
the 2005 and 2006 control periods, unless the owner or operator submits a
written request for the commissioner's review and approval, for the use of an
alternate two-year control period during 2003 through 2006, including
justification and data for such alternate two-year control period. For the year
2012 and each year thereafter, each Phase I and Phase II Unit's average net
electricity output (in MWh) during the 5th and
6th control periods preceding the year of
allocation.
EOTOTAL = For the years 2009 through
2011, the total average net electricity output (in MWh) of Phase I and Phase II
Units during the 2005 and 2006 control periods, unless the owner or operator
submits a written request for the commissioner's review and approval, for the
use of an alternate two-year control period during 2003 through 2006, including
justification and data for such alternate two-year control period. For the year
2012 and each year thereafter, the total average net electricity output (in
MWh) of Phase I and Phase II Units during the 5th
and 6th control periods preceding the year of
allocation.
(D) Any owner
or operator may submit a written request for the commissioner's review and
approval for the use of an alternate two-year control period pursuant to
Regulations of Connecticut State Agencies section
22a-174-22 c(e)(9)(C) if
average net electricity output data from the CAIR NOx
Ozone Season unit during the 2005 and 2006 control periods was not
representative for the following reasons:
(i)
Transmission line failure,
(ii)
Equipment failure, or
(iii) Any
other reason related to unplanned outage.
(10) In 2010, the commissioner may conduct a
review of the CAIR NOx Ozone Season allowance allocation
methodology in this subsection.
(11) For the purposes of this subsection, the
term "Cogeneration Unit" means a stationary, fossil-fuel-fired emission unit
that serves a generator that generates electricity at a rated output of fifteen
(15) megawatts or more by employing "cogeneration technology" as defined in
section
16-1 of
the Connecticut General Statutes.
(f)
Energy Efficiency and Renewable
Energy Set-Aside (EERESA) Allocation.
(1) Annual Allowance Allocations. For the
control period commencing May 1, 2009 and each control period thereafter, the
commissioner shall:
(A) Allocate to the
compliance account of each Proponent of a REP generating electrical energy the
number of CAIR NOx Ozone Season allowances equal to the
amount determined by the following equation, subject to the limitation in
subparagraph (H) of this subdivision:
Click
here to view image.
Where:
EEG = the net electrical energy generated by the REP (in MWh)
during the control period
(B) Allocate to the compliance account of
each Proponent of a REP generating useful net thermal energy the number of CAIR
NOx Ozone Season allowances equal to the amount
determined by the following equation, subject to the limitation in subparagraph
(H) of this subdivision:
Click
here to view image.
Where
TEG = the useful net thermal energy (in mmBtu) generated by the
REP during the control period
(C) Allocate to the compliance account of
each Proponent of an EEP saving electrical energy the number of CAIR
NOx Ozone Season allowances equal to the amount
determined by the following calculation, subject to the limitation in
subparagraph (H) of this subdivision:
Click
here to view image.
Where:
EES = the amount of electrical energy saved by the EEP (in MWh)
during the control period, calculated according to subparagraphs (C)(i) and
(C)(ii) of this subdivision
(i) Except
as provided in subparagraph (C)(ii) of this subdivision, the amount of
electrical energy saved shall be calculated by comparing the amount of
electrical energy consumed during the control period in the calendar year
preceding the year in which the application is submitted to the amount of
electrical energy consumed during the EERESA Baseline Period. If monthly data
for electrical energy consumed is not available, then electrical energy savings
shall be calculated by comparing the electrical energy consumed during the
calendar year preceding the year in which the application is submitted to the
amount of electrical energy consumed during the calendar year in which the
EERESA Baseline Period occurred, multiplied by five-twelfths, and
(ii) For the construction of a new building
or addition that exceeds the energy efficiency requirements of the State
Building Code, the amount of electrical energy saved shall be calculated by
comparing the amount of electrical energy consumed during the first full
control period immediately preceding the year the application is submitted to
the amount of electrical energy that would have been consumed at the same
occupancy level during the control period if the building or addition had been
constructed according to the minimum energy efficiency requirements of the
State Building Code. If monthly data for electrical energy consumed is not
available then electrical energy savings shall be calculated by comparing the
electrical energy consumed during the calendar year preceding the year the
application is submitted to the amount of electrical energy that would have
been consumed at the same occupancy level during the calendar year if the
building or addition had been constructed according to the minimum energy
efficiency requirements of the State Building Code, multiplied by
five-twelfths;
(D)
Allocate to the compliance account of each Proponent of an EEP saving thermal
energy the number of CAIR NOx Ozone Season allowances
equal to the amount determined by the following equation, subject to the
limitation in subparagraph (H) of this subdivision:
Click
here to view image.
Where:
TES = the amount of thermal energy saved by the EEP (in mmBtu)
during the control period calculated according to subparagraphs (D)(i) and
(D)(ii) of this subdivision
(i) Except
as provided in subparagraph (D)(ii) of this subdivision, the amount of thermal
energy saved shall be calculated by comparing the amount of thermal energy
consumed during the control period in the calendar year preceding the year in
which the application is submitted to the amount of thermal energy consumed
during the EERESA Baseline Period. If monthly data for thermal energy consumed
is not available, then thermal energy savings shall be calculated by comparing
the thermal energy consumed during the calendar year preceding the year in
which the application is submitted to the amount of thermal energy consumed
during the calendar year in which the EERESA Baseline Period occurred,
multiplied by five-twelfths, and
(ii) For the construction of a new building
or addition that exceeds the energy efficiency requirements of the State
Building Code, the amount of thermal energy saved shall be calculated by
comparing the amount of thermal energy consumed during the first full control
period immediately preceding the year the application is submitted to the
amount of thermal energy that would have been consumed at the same occupancy
level during the control period if the building or addition had been
constructed according to the minimum energy efficiency requirements of the
State Building Code. If monthly data for thermal energy consumed is not
available then thermal energy savings shall be calculated by comparing the
thermal energy consumed during the calendar year immediately preceding the year
the application is submitted to the amount of thermal energy that would have
been consumed at the same occupancy level during the calendar year if the
building or addition had been constructed according to the minimum energy
efficiency requirements of the State Building Code, multiplied by
five-twelfths;
(E)
Allocate to the compliance account of each Proponent of an EEP saving thermal
or mechanical energy in a manufacturing process where energy consumption is
measured on a unit of production basis, the number of CAIR
NOx Ozone Season allowances equal to the amount
determined by the following equation, subject to the limitation in subparagraph
(H) of this subdivision:
Click
here to view image.
EC1 = Energy consumed during the EERESA
Baseline Period in mmBtu. If monthly data is not available for the control
period, then EC1 = the amount of energy consumed during
any one of the three calendar years before the year in which the EEP was first
put in use or first became operational, multiplied by five-twelfths
PP1 = Units of product produced per
EERESA Baseline Period. If monthly data is not available for the control
period, then PP1 = the units of product produced during
any one of the three calendar years before the year in which the EEP was first
put in use or first became operational, multiplied by five-twelfths
NE1 = NOx emitted
during the consumption of energy, measured in pounds per mmBtu heat input
during the EERESA Baseline Period. If monthly data is not available for the
control period, then NE1 = NOx
emitted during any one of the three calendar years before the year in which the
EEP was first put in use or first became operational, multiplied by
five-twelfths
EC2 = Energy consumed during the control
period in the year before the calendar year in which the application is
submitted. If monthly data is not available for the control period, then
EC2 = energy consumed during the calendar year before
the year in which the application is submitted, multiplied by
five-twelfths
PP2 = Units of product produced during
the control period in the year before the calendar year in which the
application is submitted. If monthly data is not available for the control
period then PP2 = units of product produced during the
calendar year before the year in which the application is submitted, multiplied
by five-twelfths
NE2 = NOx emitted
during the consumption of energy, measured in pounds per mmBtu heat input
during the control period in the year before the calendar year in which the
application is submitted. If monthly data is not available for the control
period then NE2 = NOx emitted
during the calendar year before the year in which the application is submitted,
multiplied by five-twelfths
(F) Allocate to the compliance account of
each Proponent of a combined heat and power system with actual energy
efficiency equal to or greater than 60%, as determined according to the
equation in subparagraph (F)(i) of this subdivision, the number of CAIR
NOx Ozone Season allowances equal to the amount
determined by the equation in subparagraph (F)(ii) of this subdivision, subject
to the limitation in subparagraph (H) of this subdivision:
(i)
Click here to view
image.Where:
Eff% = Actual energy efficiency
NEO = Net electricity output of the system converted to British
thermal units, (Btus) per unit of time
UTO = Net useful thermal energy output, in Btus per unit of
time
GEI = Gross energy input, and
(ii)
Click
here to view image.
Click
here to view image.
Where:
NEE = the number of kilowatt-hours of net electrical energy
generated by the system during the EERESA Baseline Period. If monthly data is
not available for the EERESA Baseline Period, then the number of kilowatt-hours
of net electrical energy generated by the system during any one of the three
calendar years before the year in which the system first generated energy,
multiplied by five-twelfths
NUTE = the number of British thermal units (Btu) of net useful
thermal energy used by the system for space, water or industrial process heat
during a control period. If monthly data is not available for the control
period, then NUTE = the number of British thermal units (Btu) of net useful
thermal energy used by the system for space, water or industrial process heat
during a calendar year, multiplied by five-twelfths
HI = the heat input of fuel used by the system to produce
electrical or thermal energy during the EERESA Baseline Period. If monthly data
is not available for the EERESA Baseline Period, then HI = the heat input of
fuel used by the system to produce electrical or thermal energy during any one
of the three calendar years before the year during which the system first
generated energy, multiplied by five-twelfths
NOxRATE = NOx
emitted in normal system operation by the project (lbs
NOx/mmBtu)
(G) Allocate to the compliance account of
each Proponent of a QOP the number of CAIR NOx Ozone
Season allowances equal to an amount determined under subparagraphs (A) through
(F), inclusive, of this subdivision, as may be applicable, or an amount
determined by the commissioner, subject to the limitation in subparagraph (H)
of this subdivision; and
(H)
Click
here to view image.
Where:
[SIGMA] PACALCULATED = the total number
of CAIR NOx Ozone Season allowances calculated for
Proponents pursuant to subparagraphs (A) through (G), as applicable, of this
subdivision
AALLOCATED-P = the number of CAIR
NOx Ozone Season allowances the commissioner shall
allocate to the compliance account of each Proponent
AP = the number of CAIR
NOx Ozone Season allowances calculated for each
Proponent pursuant to subparagraphs (A) through (G), as applicable, of this
subdivision
(2)
Only REPs that were built and began generating energy and EEPs and QOPs that
were built and in use, or installed and operational, on or after January 1,
2001 are eligible to receive CAIR NOx Ozone Season
allowances.
(3) Each Proponent
shall apply to the commissioner to receive an allocation of CAIR
NOx Ozone Season allowances from the EERESA according to
the following procedures:
(A) Prior to
submitting an application to receive an allocation of CAIR
NOx Ozone Season allowances from the EERESA, each
Proponent shall establish a general account in accordance with
40 CFR
96.351;
(B) All applications shall be submitted on
the Department's Energy Efficiency and Renewable Energy Set-Aside Allowance
Application form and shall include the following information:
(i) A description of the project that
includes the installation date and the estimated lifetime, a calculation of the
amount of energy saved or generated and an explanation of the electricity
monitoring and verification method,
(ii) If the project requires approval by the
commissioner as an EEP or a QOP, a request for such approval,
(iii) Any additional information that the
commissioner may request, and
(iv)
A certification prepared and signed as required by section
22a-174-2 a(a) of the
Regulations of Connecticut State Agencies;
(C) In 2009, and each year thereafter,
Proponents shall submit applications to the Department by February 1 of each
year. The designated year in which the allowances are allocated shall
correspond to the calendar year in which the application is submitted. The
allocation shall be based on the energy saved or generated in the calendar year
or, for projects aggregated over several years of operation, years preceding
the year in which the application is submitted;
(D) A Proponent may request an allocation of
allowances from the EERESA for a maximum of five (5) years at a time. A
separate verification of operation and calculation of energy generation or
energy savings shall be submitted annually for each year during which a REP
generates energy or an EEP or a QOP saves energy;
(E) Only one Proponent may submit an
application to be allocated allowances from the EERESA for a single REP, EEP or
QOP in a single calendar year. If more than one Proponent submits an
application for the same project for the same calendar year, the commissioner,
at his or her discretion, may refuse to accept such applications; and
(F) A Proponent shall not submit an
application under this subsection for energy generation or energy savings
equivalent to less than one whole allowance. An EERESA Representative may
submit an application that:
(i) Aggregates
any combination of one or more REPs, EEPs or QOPs that individually save or
generate energy in a single calendar year equivalent to less than one allowance
but for which the energy savings or generation is equivalent to a minimum of
one whole allowance when aggregated,
(ii) Aggregates two or more years of
operation by a single REP, EEP or QOP that saves or generates energy equivalent
to less than one allowance in a single year but for which the energy savings or
generation is equivalent to a minimum of one whole allowance when aggregated,
and
(iii) Aggregates two or more
years of operation by any combination of one or more REPs, EEPs or QOPs that
save or generate energy in a single calendar year equivalent to less than one
whole allowance when aggregated but for which the energy savings or generation
is equivalent to a minimum of one whole allowance when aggregated over two or
more years of operation.
(4) Each Proponent shall measure the amount
of energy saved or generated by each project according to subparagraph (A) or
subparagraph (B) of this subdivision, as follows:
(A)
(i)
Adhering to the requirements of the International Performance Measurement and
Verification Protocol, as revised in March 2002, DOE/GO-102002-1554 or the U.S.
Environmental Protection Agency's Conservation Verification Protocol;
and
(ii) Adhering to the
measurement and verification provisions of New England Power Pool's or NEPOOL's
Operating Procedure 18 "Metering and Telemetering" or other provisions
acceptable to the commissioner; and
(iii) Making the normalization adjustments
for energy savings in accordance with the International Performance Measurement
and Verification Protocol, as revised in March 2002, DOE/GO-102002-1554;
or
(B) Using any
applicable measurement and verification protocols submitted to and approved by
the commissioner.
(5)
Nothing in this subsection shall preclude the commissioner from reducing the
number of allowances allocated to a REP, EEP or QOP to account for:
(A) Any NOx emissions
associated with the operation of a REP, EEP or QOP;
(B) Uncertainty in the measurement or
verification of the actual emissions reductions or energy savings achieved by a
project; and
(C) Any other
circumstances identified by the commissioner in writing and provided to the
Proponent.
(6) The
Proponent of a prospective project may apply to the commissioner to receive an
estimate of the number of allowances that the commissioner may award from the
EERESA to the prospective project pursuant to the requirements of this
subsection after the prospective project has operated for one ozone season. The
following considerations shall apply to such a prospective project:
(A) An application made pursuant to this
subdivision shall be made on a form prescribed by the commissioner and shall
include the following information:
(i) The
Proponent's full name and business address,
(ii) The name and telephone number for a
person to contact regarding the application,
(iii) A description of the project that
includes the estimated completion date, the calculation of the electricity
anticipated to be saved or supplied and an explanation of the planned
electricity monitoring and verification method,
(iv) Any other information requested by the
permitting authority, and
(v) A
certification prepared and signed as required by section
22a-174-2 a(a) of the
Regulations of Connecticut State Agencies;
(B) After completing the construction or
installation of a prospective project for which the commissioner has made an
estimate of allowances that may be allocated from the EERESA pursuant to this
subdivision and after operating the project for one ozone season, the Proponent
may apply to receive an actual allocation of allowances from the EERESA
according to the requirements of subdivision (3) of this subsection;
and
(C) A determination by the
commissioner concerning an application submitted pursuant to this subdivision
is not a binding commitment to allocate the estimated number of allowances from
the EERESA to the Proponent after such project initiates operation.
(7) In 2010, the commissioner may
conduct a review of the Energy Efficiency and Renewable Energy Set-Aside
Allocation program, including, but not limited to, the following factors:
(A) Success in facilitating energy efficiency
and renewable energy projects;
(B)
Impacts on CAIR NOx Ozone Season allowance price and
availability; and
(C)
Appropriateness of the size of the EERESA.
(g)
CAIR
NOxOzone Season allowance
use.
(1) A CAIR
NOx Ozone Season allowance reserved, allocated, banked
or traded is reserved, allocated, banked or traded subject to all applicable
legal requirements and limitations, including, but not limited to, the
requirements of this section and the provisions of sections
22a-1,
22a-5,
22a-6,
22a-174
and
22a-174c
of the Connecticut General Statutes.
(2) Except as provided in subdivision (3) of
this subsection and subsection (i) of this section, CAIR
NOx Ozone Season allowances cannot be used to meet or
exceed the limitations of any permit, order or other applicable
requirement.
(3)
Reserved.
(4) Emission offsets
required for new or modified major stationary sources of
NOx must be obtained in accordance with section
22a-174-3 a of the
Regulations of Connecticut State Agencies and are subject to the offset
requirements of Section 173 of the Act. CAIR NOx Ozone
Season allowances may not be used as offsets, unless the commissioner
permanently adjusts the state trading budget commensurate with the number of
unused NOx allowances approved for use as offsets and
the owner or operator of a CAIR NOx Ozone Season unit
meets the following conditions:
(A) Reduces
the emissions of such CAIR NOx Ozone Season unit such
that not all CAIR NOx Ozone Season allowances allocated
to that unit are used; and
(B)
Satisfies the requirements of section
22a-174-3
a(l)(5) of the Regulations of Connecticut State
Agencies.
(5) If the
owner or operator of a CAIR NOx Ozone Season unit
transfers emission reductions as offsets to sources of
NOx not participating in a CAIR
NOx Ozone Season allowance trading program administered
by the Administrator under
40
CFR 51.123, such owner or operator shall
surrender the CAIR NOx Ozone Season allowances
representing the emissions reductions in an amount equivalent to the emission
reductions transferred off-budget.
(i)
Allowance tracking and banking;
monitoring; recordkeeping and reporting; and other requirements.
(1) Each owner or operator and each
designated representative of a CAIR NOx Ozone Season
unit that is subject to this section shall comply with each applicable
requirement set forth in Table 22c-1 and incorporated by reference herein, as
follows:
(A) Terms used in the incorporated
sections of the CFR shall be defined as in
40
CFR 96.302, unless defined in subsection (a)
of this section;
(B) To the extent
that Table 22c-1 of this section refers to text in 40 CFR 96 that includes the
Hg Budget Trading Program, CAIR SO2 trading, CAIR
NOx Annual Trading Program, 40 CFR 96 subpart IIII and
CAIR NOx Ozone Season Opt-in Unit, such references are
not incorporated by reference;
(C)
To the extent the federal regulations incorporated into this section refer to
CAIR NOx Ozone Season Allowance Allocations, Subpart
EEEE and 40 CFR 96.340-42, such references shall be replaced with subsections
(c), (d), (e) or (f) of this section, as appropriate; and
(D) To the extent the federal regulations
incorporated into this section refer to
40
CFR 96.304, such references shall be replaced
with subsection (b) of this section.
(2) Additional reporting requirements. Each
owner and operator of a CAIR NOx Ozone Season unit shall
report the information identified in this subdivision:
(A) By October 31 of each year, the owner or
operator of each CAIR NOx Ozone Season unit shall report
to the commissioner the metered net electricity output (in MWh) and useful
steam output (in mmBtu) for the facility at which the unit is located for that
year's control period. If data for steam output is not available, the owner or
operator may report heat input providing useful steam output as a surrogate for
useful steam output; and
(B) The
owner or operator of each New Unit operating in the first control period
following the date of commencement of operation shall by July 1 of that first
control period report to the commissioner an estimate of the total number of
hours of operation for the control period. The owner or operator of each New
Unit operating in the second and later control periods following the date of
commencement of operation shall by July 1 of such second and later control
periods report to the commissioner the number of hours the unit operated during
the prior control period, rounded to the nearest whole hour by rounding down
for decimals less than 0.5, and rounded up for decimals of 0.5 or
greater.
(3) Monitoring
and related reporting requirements. The requirements of
40 CFR
96.374(d)(2)(ii) shall only
apply to those owners and operators of CAIR NOx Ozone
Season units that are not subject to an Acid Rain emissions limitation and are
not monitoring NOx emissions using a Continuous emission
monitoring system (CEMS).
(4)
Additional excess emissions requirements. The Administrator shall deduct, for
excess emissions in the 2008 control period determined according to section
22a-174-22 b of the
Regulations of Connecticut State Agencies, CAIR NOx
Ozone Season allowances allocated for the 2009 control period in the manner
specified in
40 CFR
96.354(d) for excess
emissions in the 2009 control period and beyond.
(5) Copies of the relevant sections of 40 CFR
96 incorporated by reference in this section are available by contacting:
Connecticut Department of Environmental Protection
Bureau of Air Management
Planning and Standards Division
79 Elm Street
Hartford, Connecticut 06106
(860) 424-3027
Table 22c-1
40 Code of Federal Regulations Part 96 Provisions
Incorporated by Reference as of October 19, 2007
|
Subpart AAAA-CAIR NO x
Ozone Season Trading Program General Provisions |
Section 96.302 |
Definitions. |
Section 96.303 |
Measurements, abbreviations, and acronyms. |
Section 96.305 |
Retired unit exemption. |
Section 96.306 |
Standard requirements. |
Section 96.307 |
Computation of time. |
Section 96.308 |
Appeal procedures. |
Subpart BBBB-CAIR Designated Representative for
CAIR NOx Ozone Season Sources |
Section 96.310 |
Authorization and responsibilities of CAIR designated
representative. |
Section 96.311 |
Alternate CAIR designated representative. |
Section 96.312 |
Changing CAIR designated representative and alternate
CAIR designated representative; changes in owners and operators. |
Section 96.313 |
Certificate of representation. |
Section 96.314 |
Objections concerning CAIR designated
representative. |
Section 96.315 |
Delegation by CAIR designated representative and
alternate CAIR designated representative. |
Subpart CCCC-Permits |
Section 96.320 |
General CAIR NOx Ozone Season
Trading Program permit requirements. |
Section 96.321 |
Submission of CAIR permit applications. |
Section 96.322 |
Information requirements for CAIR permit
applications. |
Section 96.323 |
CAIR permit contents and term. |
Section 96.324 |
CAIR permit revisions. |
Subpart FFFF-CAIR NOx
Ozone Season Allowance Tracking System |
Section 96.351 |
Establishment of accounts. |
Section 96.352 |
Responsibilities of CAIR authorized account
representative. |
Section 96.353 |
Recordation of CAIR NOx Ozone
Season allowance allocations. |
Section 96.354 |
Compliance with CAIR NOx
emissions limitation. |
Section 96.355 |
Banking. |
Section 96.356 |
Account error. |
Section 96.357 |
Closing of general accounts. |
Subpart GGGG-CAIR NOx
Ozone Season Allowance Transfers |
Section 96.360 |
Submission of CAIR NOx Ozone
Season allowance transfers. |
Section 96.361 |
EPA recordation. |
Section 96.362 |
Notification. |
Subpart HHHH-Monitoring and
Reporting |
Section 96.370 |
General requirements. |
Section 96.371 |
Initial certification and recertification
procedures. |
Section 96.372 |
Out of control periods. |
Section 96.373 |
Notifications. |
Section 96.374 (Except as provided in subsection (i)(3)
of this section) |
Recordkeeping and reporting. |
Section 96.375 |
Petitions. |