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PA Bulletin, Doc. No. 08-667a

[38 Pa.B. 1705]
[Saturday, April 12, 2008]

[Continued from previous Web Page]

Annex A

TITLE 25. ENVIRONMENTAL PROTECTION

PART I. DEPARTMENT OF ENVIRONMENTAL PROTECTION

Subpart C. PROTECTION OF NATURAL RESOURCES

ARTICLE III. AIR RESOURCES

CHAPTER 121. GENERAL PROVISIONS

§ 121.1. Definitions.

   The definitions in section 3 of the act (35 P. S. § 4003) apply to this article. In addition, the following words and terms, when used in this article, have the following meanings, unless the context clearly indicates otherwise:

*      *      *      *      *

   Vintage or vintage year--The calendar year assigned to an allowance by the issuing authority that designates the first year in which it is valid to be applied against emissions.

*      *      *      *      *

CHAPTER 129. STANDARDS FOR SOURCES

ADDITIONAL NOx REQUIREMENTS

§ 129.201. Boilers.

   (a)  By May 1, 2005, and each year thereafter, the owner or operator of a boiler that meets the definition of a boiler in § 145.2 (relating to definitions) located in Bucks, Chester, Delaware, Montgomery or Philadelphia County shall comply with this section and § 129.204 (relating to emission accountability). This section does not apply to naval marine combustion units operated by the United States Navy for the purposes of testing and operational training or to units that combust municipal waste at a facility that is permitted as a resource recovery facility under Part I, Subpart D, Article VIII (relating to municipal waste).

   (b)  By October 31, 2005, and each year thereafter, the owner or operator of the boiler shall calculate the difference between the actual emissions from the unit for the period from May 1 through September 30 and the allowable emissions for that period.

   (c)  The owner or operator shall calculate allowable emissions by multiplying the unit's cumulative heat input for the period by the applicable emission rate in paragraph (1) or (2).

   (1)  The emission rate for a boiler with a nameplate rated capacity of greater than 100 million Btu/hour but less than or equal to 250 million Btu/hour shall be as follows:

   (i)  For a boiler firing natural gas or a boiler firing a noncommercial gaseous fuel, 0.10 pounds NOx per million Btu heat input.

   (ii)  For a boiler firing solid or liquid fuel, 0.20 pounds of NOx per million Btu heat input.

   (2)  The emission rate for a boiler with a nameplate rated capacity of greater than 250 million Btu/hour that is not subject to § 145.8(c) or (d) (relating to transition to CAIR NOx trading programs) shall be 0.17 pounds NOx per million Btu heat input.

§ 129.202. Stationary combustion turbines.

   (a)  By May 1, 2005, and each year thereafter, the owner or operator of a stationary combustion turbine with a nameplate rated capacity of greater than 100 million Btu/hour located in Bucks, Chester, Delaware, Montgomery or Philadelphia County shall comply with this section and § 129.204 (relating to emission accountability). This section does not apply to naval marine stationary combustion turbines operated by the United States Navy for the purposes of testing and operational training.

   (b)  By October 31, 2005, and each year thereafter, the owner or operator of the stationary combustion turbine shall calculate the difference between the actual emissions from the unit for the period from May 1 through September 30 and the allowable emissions for that period.

   (c)  The owner or operator shall calculate allowable emissions by multiplying the unit's cumulative heat input for the period by the applicable emission rate set forth in paragraph (1) or (2).

   (1)  The emission rate for a stationary combustion turbine with a nameplate rated capacity of greater than 100 million Btu/hour but less than or equal to 250 million Btu/hour heat input shall be as follows:

   (i)  A combined cycle or regenerative cycle stationary combustion turbine:

   (A)  When firing natural gas or a noncommercial gaseous fuel, 0.17 lbs NOx/MMBtu or 1.3 lbs NOx/MWH.

   (B)  When firing oil, 0.26 lbs NOx/MMBtu or 2.0 lbs NOx/MWH.

   (ii)  A simple cycle stationary combustion turbine:

   (A)  When firing natural gas or a noncommercial gaseous fuel, 0.20 lbs NOx/MMBtu or 2.2 lbs NOx/MWH.

   (B)  When firing oil, 0.30 lbs NOx/MMBtu or 3.0 lbs NOx/MWH.

   (2)  The emission rate for a stationary combustion turbine with a nameplate rated capacity of greater than 250 million Btu/hour heat input that is not subject to § 145.8(c) or (d) (relating to transition to CAIR NOx trading programs) is 0.17 lbs NOx per million Btu heat input.

§ 129.204. Emission accountability.

   (a) This section applies to units described in §§ 129.201--129.203 (relating to boilers; stationary combustion turbines; and stationary internal combustion enginers).

   (b)  The owner or operator shall determine actual emissions in accordance with one of the following:

   (1)  If the owner or operator of the unit is required to monitor NOx emissions with a CEMS operated and maintained in accordance with a permit or State or Federal regulation, the CEMS data reported to the Department to comply with the monitoring and reporting requirements of this article shall be used. Any data invalidated under Chapter 139 (relating to sampling and testing) shall be substituted with data calculated using the potential emission rate for the unit or, if approved by the Department in writing, an alternative amount of emissions that is more representative of actual emissions that occurred during the period of invalid data.

   (2)  If the owner or operator of the unit is not required to monitor NOx emissions with a CEMS, one of the following shall be used to determine actual emissions NOx:

   (i)  The 1-year average emission rate calculated from the most recent permit emission limit compliance demonstration test data for NOx.

   (ii)  The maximum hourly allowable NOx emission rate contained in the permit or the higher of the following:

   (A)  The highest rate determined by use of the emission factor for the unit class contained in the most up-to date version of the EPA publication, ''AP-42 Compilation of Air Pollution Emission Factors.''

   (B)  The highest rate determined by use of the emission factor for the unit class contained in the most up-to date version of EPA's ''Factor Information Retrieval (FIRE)'' data system.

   (iii)  CEMS data, if the owner or operator elects to monitor NOx emissions with a CEMS. The owner or operator shall monitor emissions and report the data from the CEMS in accordance with Chapter 139 or Chapter 145 (relating to interstate pollution transport reduction). Any data invalidated under Chapter 139 shall be substituted with data calculated using the potential emission rate for the unit or, if approved by the Department in writing, an alternative amount of emissions that is more representative of actual emissions that occurred during the period of invalid data.

   (iv)  An alternate calculation and recordkeeping procedure based upon emissions testing and correlations with operating parameters. The operator of the unit shall demonstrate that the alternate procedure does not underestimate actual emissions throughout the allowable range of operating conditions. In regard to obtaining the Department's approval for an alternate calculation method and recordkeeping procedure for actual emissions, the owner or operator may request an adjustment to the allowable emissions calculations set forth in §§ 129.201--129.203. An allowable emission adjustment may not overestimate a unit's allowable emissions and must be based upon the parameters and procedures proposed in the alternate calculation method for actual emissions. The alternate calculation and recordkeeping procedures must be approved by the Department, in writing, prior to implementation.

   (c)  The owner or operator of a unit subject to this section shall surrender to the Department one CAIR NOx allowance and one CAIR NOx Ozone Season allowance, as defined in 40 CFR 96.102 and 96.302 (relating to definitions), for each ton of NOx by which the combined actual emissions exceed the allowable emissions of the units subject to this section at a facility from May 1 through September 30. The surrendered allowances shall be of current year vintage. For the purpose of determining the amount of allowances to surrender, any remaining fraction of a ton equal to or greater than 0.50 ton is deemed to equal 1 ton and any fraction of a ton less than 0.50 ton is deemed to equal zero tons.

   (d)  If the combined allowable emissions from units subject to this section at a facility from May 1 through September 30 exceed the combined actual emissions from units subject to this section at the facility during the same period, the owner or operator may deduct the difference or any portion of the difference from the amount of actual emissions from units subject to this section at the owner or operator's other facilities.

   (e)  By November 1, 2005, and by November 1 of each year thereafter, an owner or operator of a unit subject to this section shall surrender the required NOx allowances to the Department's designated NOx allowance tracking system account and provide to the Department, in writing, the following:

   (1)  The serial number of each NOx allowance surrendered.

   (2)  The calculations used to determine the quantity of NOx allowances required to be surrendered.

   (f)  If an owner or operator fails to comply with subsection (e), the owner or operator shall by December 31 surrender three NOx allowances of the current or later year vintage for each NOx allowance that was required to be surrendered by November 1 of that year.

   (g)  The surrender of NOx allowances under subsection (f) does not affect the liability of the owner or operator of the unit for any fine, penalty or assessment, or an obligation to comply with any other remedy for the same violation, under the CAA or the act.

   (1)  For purposes of determining the number of days of violation, if a facility has excess emissions for the period May 1 through September 30, each day in that period (153 days) constitutes a day in violation unless the owner or operator of the unit demonstrates that a lesser number of days should be considered.

   (2)  Each ton of excess emissions is a separate violation.

CHAPTER 145. INTERSTATE POLLUTION TRANSPORT REDUCTION

Subchapter A. NOx BUDGET TRADING PROGRAM

GENERAL PROVISIONS

§ 145.8. Transition to CAIR NOx Trading Programs.

   (a)  Allowances. The final year for NOx allowance allocations to be made by the Department under §§ 145.41 and 145.42 (relating to timing requirements for NOx allowance allocations; and NOx allowance allocations) will be 2008. Allocations in 2009 will be made in accordance with the Federal CAIR Ozone Season Trading Program, 40 CFR Part 97 (relating to Federal NOx Budget Trading Program and CAIR NOx and SO2 Trading Programs). CAIR NOx Ozone Season allowance allocations for the control period starting May 1, 2010, and for each control period thereafter, will be distributed in accordance with Subchapter D (relating to CAIR NOx and SO2 Trading Programs).

   (b)  Termination and retirement of allowances. NOx allowances already allocated under this subchapter for 2009 or later are terminated and may not be used for compliance with the CAIR NOx Annual Trading Program or the CAIR NOx Ozone Season Trading Program, as those terms are defined in 40 CFR 96.102 and 96.302 (relating to definitions). By January 1, 2009, the Department will permanently retire the Commonwealth's non-EGU NOx Trading Program Budget of 3,619 allowances established in § 145.40 (relating to State Trading Program budget).

   (c)  Requirements replaced. The emission limitations and monitoring requirements established in Subchapter A (relating to NOx Budget Trading Program) are replaced by the requirements in Subchapter D beginning with the May 1, 2010, control period. If the owner or operator of a NOx budget unit or CAIR NOx Ozone Season unit, as defined in 40 CFR 96.302, has failed to demonstrate compliance with § 145.54 (relating to compliance), the provisions in 40 CFR 96.354 (relating to compliance with CAIR NOx emissions limitation) shall be used to withhold CAIR NOx Ozone Season allowances, as that term is defined in 40 CFR 96.302, in calendar year 2010 and beyond. If no CAIR NOx Ozone Season allowances are provided to the unit under § 145.221 (relating to timing requirements for CAIR NOx Ozone Season allowance allocations), the owner or operator of the unit shall acquire and retire a number of CAIR NOx Ozone Season allowances as specified in 40 CFR 96.354.

   (d)  Non-EGU NOx Trading Program Budget. For units subject to the applicability requirements of § 145.4 (relating to applicability), but not subject to the CAIR NOx Ozone Season Trading Program requirements of Subchapter D, the following requirements apply:

   (1)  Statewide limitation. The sum of NOx ozone season emissions from all units subject to this subsection may not exceed the Commonwealth's non-EGU NOx Trading Program budget of 3,619 tons during any ozone season.

   (2)  CAIR NOx ozone season allowances. All units subject to this subsection shall monitor and report NOx emissions in accordance with 40 CFR Part 96, Subpart HHHH (relating to monitoring and reporting), and establish a CAIR-authorized account representative and general account, in accordance with 40 CFR Part 96, Subparts BBBB and FFFF (relating to CAIR designated representative for CAIR NOx ozone season sources; and CAIR NOx ozone season allowance tracking system), incorporated into Subchapter D by reference, for the purposes of ensuring continued compliance with the non-EGU NOx Trading Program budget limitation of paragraph (1) and of retiring CAIR NOx ozone season allowances.

   (3)  CAIR NOx allowances. All units subject to this subsection shall establish a CAIR-authorized account representative and general account in accordance with 40 CFR Part 96, Subparts BB and FF (relating to CAIR designated representative for CAIR NOx sources; and CAIR NOx allowance tracking system), incorporated into Subchapter D by reference, for the purpose of retiring CAIR NOx allowances.

   (4)  Emissions below Statewide limitation. If the total ozone season emissions from all units subject to this subsection are less than 3,438 tons of NOx, the Department's permanent retirement of allowances covers all applicable emissions and no additional account transactions are required by the units covered under this subsection.

   (5)  Allowable emissions per unit. By January 31, 2009, and by January 31 of each year thereafter, the Department will determine the allowable amount of NOx emissions for the next ozone season for each unit subject to this subsection, as follows:

   Allowable emission rate X each unit's heat input

   Where ''Allowable emission rate'' =

3,438 tons of NOx
_________________
Combined heat input of all units during
the most recent ozone season

   (6)  Allowance surrender for excess emissions. If the combined NOx emissions from all units subject to this subsection exceed 3,438 tons in an ozone season, then a unit whose actual emissions exceed the unit's allowable emissions for that ozone season, as determined under paragraph (5), shall surrender to the Department by April 30 of the year following the ozone season one CAIR NOx ozone season allowance and one CAIR NOx allowance for each ton of excess emissions. A unit whose excess emissions are 0.5 ton or greater of the next excess ton shall surrender 1 full ton of CAIR NOx allowances (banked or current) for that excess emission. Units under common ownership may include the allowable and actual emissions from multiple units to determine whether a unit must surrender allowances.

   (7)  Surrender procedure. To surrender allowances under paragraph (6), an owner or operator of a unit shall surrender the required CAIR NOx ozone season allowances and CAIR NOx allowances to the Department's designated NOx allowance tracking system account and provide to the Department, in writing, the following:

   (i)  The serial number of each allowance surrendered.

   (ii)  The calculations used to determine the quantity of allowances required to be surrendered.

   (8)  Failure to surrender allowances. If an owner or operator fails to comply with paragraph (6), the owner or operator shall by June 30 surrender three CAIR NOx ozone season allowances and three CAIR NOx allowances of the current or later year vintage for each ton of excess emissions as calculated under paragraph (6).

   (9)  Liability not affected. The surrender of CAIR NOx ozone season allowances and CAIR NOx allowances under paragraph (6) does not affect the liability of the owner or operator of the unit for any fine, penalty or assessment, or an obligation to comply with any other remedy for the same violation, under the CAA or the act.

(i)  For purposes of determining the number of days of violation, if a facility has excess emissions for the period May 1 through September 30, each day in that period (153 days) constitutes a day in violation unless the owner or operator of the unit demonstrates that a lesser number of days should be considered.
(ii)  Each ton of excess emissions is a separate violation.

   (10)  Allowance retirement. The Department will permanently retire to the Department's CAIR NOx retirement account the allowances surrendered under paragraphs (6)--(9).

   (11)  Actual emissions below allowable emissions. If a facility's allowable emissions exceed the facility's actual emissions for an ozone season, the owner or operator may deduct the difference or any portion of the difference from the actual emissions of units under the facility's common control that are subject to §§ 129.201--129.203 (relating to boilers; stationary combustion turbines; and stationary internal combustion engines).

   (12)  Corrections. One hundred and eighty-one tons of allowable NOx emissions are available to the Department annually for accounting corrections.

Subchapter B. EMISSIONS OF NOx FROM STATIONARY INTERNAL COMBUSTION ENGINES

§ 145.113. Standard requirements.

*      *      *      *      *

   (d)  The owner or operator of a unit subject to this section shall surrender to the Department one CAIR NOx allowance and one CAIR NOx ozone season allowance, as defined in 40 CFR 96.102 and 96.302 (relating to definitions), for each ton of NOx by which the combined actual emissions exceed the allowable emissions of the units subject to this section at a facility from May 1 through September 30. The surrendered allowances shall be of current year vintage. For the purposes of determining the amount of allowances to surrender, any remaining fraction of a ton equal to or greater than 0.50 ton is deemed to equal 1 ton and any fraction of a ton less than 0.50 ton is deemed to equal zero tons.

*      *      *      *      *

Subchapter C. EMISSIONS OF NOx FROM CEMENT MANUFACTURING

§ 145.143. Standard requirements.

   (a)  By October 31, 2005, and each year thereafter, the owner or operator of a Portland cement kiln shall calculate the difference between the actual emissions from the unit during the period from May 1 through September 30 and the allowable emissions for that period.

   (b)  The owner or operator shall determine allowable emissions by multiplying the tons of clinker produced by the Portland cement kiln for the period by 6 pounds per ton of clinker produced.

   (c)  The owner or operator shall install and operate a CEMS, and shall report CEMS emissions data, in accordance with the CEMS requirements of either Chapter 139 or 145 (relating to sampling and testing; and interstate pollution transport reduction) and calculate actual emissions using the CEMS data reported to the Department. Any data invalidated under Chapter 139 shall be substituted with data calculated using the potential emission rate for the unit or, if approved by the Department in writing, an alternative amount of emissions that is more representative of actual emissions that occurred during the period of invalid data.

   (d)  The owner or operator of a Portland cement kiln subject to this section shall surrender to the Department one CAIR NOx allowance and one CAIR NOx ozone season allowance, as defined in 40 CFR 96.102 and 96.302 (relating to definitions), for each ton of NOx by which the combined actual emissions exceed the allowable emissions of the Portland cement kilns subject to this section at a facility from May 1 through September 30. The surrendered allowances shall be of current year vintage. For the purposes of determining the amount of allowances to surrender, any remaining fraction of a ton equal to or greater than 0.50 ton is deemed to equal 1 ton and any fraction of a ton less than 0.50 ton is deemed to equal zero tons.

   (e)  If the combined allowable emissions from Portland cement kilns at a facility from May 1 through September 30 exceed the combined actual emissions from Portland cement kilns subject to this section at the facility during the same period, the owner or operator may deduct the difference or any portion of the difference from the amount of actual emissions from Portland cement kilns at the owner or operator's other facilities located in this Commonwealth for that period.

   (f)  By November 1, 2005, and each year thereafter, an owner or operator subject to this subchapter shall surrender the required NOx allowances to the Department's designated NOx allowance tracking system account, as defined in § 121.1 (relating to definitions), and shall provide in writing to the Department, the following:

   (1)  The serial number of each NOx allowance surrendered.

   (2)  The calculations used to determine the quantity of NOx allowances required to be surrendered.

   (g)  If an owner or operator fails to comply with subsection (f), the owner or operator shall by December 31 surrender three NOx allowances of the current or later year vintage for each NOx allowance that was required to be surrendered by November 1.

   (h)  The surrender of NOx allowances under subsection (g) does not affect the liability of the owner or operator of the Portland cement kiln for any fine, penalty or assessment, or an obligation to comply with any other remedy for the same violation, under the CAA or the act.

   (1)  For purposes of determining the number of days of violation, if a facility has excess emissions for the period May 1 through September 30, each day in that period (153 days) constitutes a day in violation unless the owner or operator of the Portland cement kiln demonstrates that a lesser number of days should be considered.

   (2)  Each ton of excess emissions is a separate violation.

Subchapter D. CAIR NOx AND SO2 TRADING PROGRAMS

GENERAL PROVISIONS

145.201.Purpose.
145.202.Definitions.
145.203.Applicability.
145.204.Incorporation of Federal regulations by reference.

ADDITIONAL REQUIREMENTS FOR CHAPTER 127
EMISSION REDUCTION CREDIT PROVISIONS

145.205.Emission reduction credit provisions.

ADDITIONAL REQUIREMENTS FOR CAIR NOx
ANNUAL TRADING PROGRAM

145.211.Timing requirements for CAIR NOx allowance allocations.
145.212.CAIR NOx allowance allocations.
145.213.Supplemental monitoring, recordkeeping and reporting requirements for gross electrical output and useful thermal energy for units subject to 40 CFR 96.170--96.175.

ADDITIONAL REQUIREMENTS FOR CAIR NOx
OZONE SEASON TRADING PROGRAM

145.221.Timing requirements for CAIR NOx ozone season allowance allocations.
145.222.CAIR NOx ozone season allowance allocations.
145.223.Supplemental monitoring, recordkeeping and reporting requirements for gross electrical output and useful thermal energy for units subject to 40 CFR 96.370--96.375.

GENERAL PROVISIONS

§ 145.201. Purpose.

   This subchapter incorporates by reference the CAIR NOx Annual Trading Program and CAIR NOx Ozone Season Trading Program as a means of mitigating the interstate transport of fine particulates and NOx, and the CAIR SO2 Trading Program as a means of mitigating the interstate transport of fine particulates and SO2. This subchapter also establishes general provisions and the applicability, allowance and supplemental monitoring, recordkeeping and reporting provisions.

§ 145.202. Definitions.

   The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:

   Demand side management--The management of customer consumption of electricity or the demand for electricity through the implementation of any of the following:

   (i)  Energy efficiency technologies, management practices or other strategies in residential, commercial, institutional or government customers that reduce electricity consumption by those customers.

   (ii)  Load management or demand response technologies, management practices or other strategies in residential, commercial, industrial, institutional and government customers that shift electric load from periods of higher demand to periods of lower demand.

   (iii)  Industrial by-product technologies consisting of the use of a by-product from an industrial process, including the reuse of energy from exhaust gases or other manufacturing by-products that are used in the direct production of electricity at the facility of a customer.

   Demand side management energy efficiency qualifying resource--A demand side management energy efficiency measure that has no associated NOx emissions and that generates certified alternative energy credit.

   EIA--The Energy Information Administration of the United States Department of Energy or its successor.

   MWh-Megawatt-hour--One million watt-hours.

   Pennsylvania Alternative Energy Portfolio Standard--An applicable standard promulgated under the Alternative Energy Portfolio Standards Act (73 P. S. §§ 1648.1--1648.8).

   Renewable energy--

   (i)  Renewable enegry generated by one or more of the following fuels, energy resources or technologies, and that does not emit NOx or SO2:

   (A)  Solar photovoltaic or solar thermal energy.

   (B)  Wind energy.

   (C)  Fuel cells that do not employ a fuel processor that emits NOx.

   (D)  Ocean thermal, wave or tidal energy.

   (E)  Low-impact hydro energy.

   (F)  Geothermal energy.

   (ii)  The term does not include energy generated from nuclear fuel, biomass, landfill gas, fuel cells that employ a fuel processor that emits NOx, or hydro using pumped storage.

   Renewable energy certificate--The tradable alternative energy credit instrument generated under, and used to establish, verify and monitor compliance with, the Pennsylvania Alternative Energy Portfolio Standard. A unit of credit shall equal 1 megawatt-hour of electricity from an alternative energy source.

   Renewable energy qualifying resource--A renewable energy measure that generates renewable energy certificates.

§ 145.203. Applicability.

   This subchapter applies to CAIR NOx units, CAIR NOx ozone season units and CAIR SO2 units.

§ 145.204. Incorporation of Federal regulations by reference.

   (a)  Except as otherwise specified in this subchapter, the provisions of the CAIR NOx Annual Trading Program, found in 40 CFR Part 96 (relating to NOx budget trading program and CAIR NOx and SO2 trading programs for State implementation plans), including all appendices, future amendments and supplements thereto, are incorporated by reference.

   (b)  Except as otherwise specified in this subchapter, the provisions of the CAIR SO2 Trading Program, found in 40 CFR Part 96, including all appendices, future amendments and supplements thereto, are incorporated by reference.

   (c)  Except as otherwise specified in this subchapter, the provisions of the CAIR NOx Ozone Season Trading Program, found in 40 CFR Part 96, including all appendices, future amendments and supplements thereto, are incorporated by reference.

   (d)  In the event of a conflict between Federal regulatory provisions incorporated by reference in this subchapter and Pennsylvania regulatory provisions, the provision expressly set out in this subchapter shall be followed unless the Federal provision is more stringent. Federal regulations that are cited in this subchapter or that are cross-referenced in the Federal regulations incorporated by reference include any Pennsylvania modifications made to those Federal regulations.

ADDITIONAL REQUIREMENTS FOR CHAPTER 127 EMISSION REDUCTION CREDIT PROVISIONS

§ 145.205. Emission reduction credit provisions.

   The following conditions shall be satisfied in order for the Department to issue a permit or plan approval to the owner or operator of a unit not subject to this subchapter that is relying on emissions reduction credits (ERCs) or creditable emissions reductions in an applicability determination under Chapter 127, Subchapter E (relating to new source review), or is seeking to enter into an emissions trade authorized under Chapter 127 (relating to construction, modification, reactivation and operation of sources), if the ERCs or creditable emission reductions were, or will be, generated by a unit subject to this subchapter.

   (1)  Prior to issuing the permit or plan approval, the Department will permanently reduce the Commonwealth's CAIR NOx trading budget or CAIR NOx Ozone Season Trading Budget, or both, as applicable, beginning with the sixth control period following the date the plan approval or permit to commence operations or increase emissions is issued. The Department will permanently reduce the applicable CAIR NOx budgets by an amount of allowances equal to the ERCs or creditable emission reductions relied upon in the applicability determination for the non-CAIR unit subject to Chapter 127, Subchapter E or in the amount equal to the emissions trade authorized under Chapter 127, as if these emissions had already been emitted.

   (2)  The permit or plan approval must prohibit the owner or operator from commencing operation or increasing emissions until the owner or operator of the CAIR unit generating the ERC or creditable emission reduction surrenders to the Department an amount of allowances equal to the ERCs or emission reduction credits relied upon in the applicability determination for the non-CAIR unit under Chapter 127, Subchapter E or the amount equal to the ERC trade authorized under Chapter 127, for each of the five consecutive control periods following the date the non-CAIR unit commences operation or increases emissions. The allowances surrendered must be of present or past vintage years.

ADDITIONAL REQUIREMENTS FOR CAIR NOx ANNUAL TRADING PROGRAM

§ 145.211. Timing requirements for CAIR NOx allowance allocations.

   (a)  Provisions not incorporated by reference. The requirements of 40 CFR 96.141 (relating to timing requirements for CAIR NOx allowance allocations) are not incorporated by reference. Instead of 40 CFR 96.141, the requirements set forth in this section apply.

   (b)  Regular allocations. The Department will make regular allocations of CAIR NOx allowances as follows:

   (1)  Except for allocations made under subsection (c), by April 30, 2008, the Department will submit to the Administrator the CAIR NOx allowance allocations made in accordance with § 145.212 (relating to CAIR NOx allowance allocations) for the control periods in 2010-2012 in a format prescribed by the Administrator.

   (2)  Except for allocations made under subsection (c), by April 30, 2009, the Department will submit to the Administrator the CAIR NOx allowance allocations made in accordance with § 145.212 for the control period in 2013 in a format prescribed by the Administrator. By April 30 every year after 2009, the Department will submit the allocations for the next consecutive control period.

   (3)  The Department will reserve 1.3% of the CAIR NOx Trading Budget for each annual control period for allocation to units as provided under § 145.212(f)(2).

   (c)  New CAIR NOx unit allowance allocations. By April 30, 2011, and by April 30 every year thereafter, the Department will submit to the Administrator the CAIR NOx allowance allocations made in accordance with § 145.212(e). The Department will base the allocations on actual emissions in the calendar year preceding the year of the submission.

   (d)  Publication. The Department will publish notice of the proposed CAIR NOx allowance allocations in the Pennsylvania Bulletin and will publish the final allocations after a 15-day public comment period. The Department will include in the notice the name and telephone number of a person to contact for access to additional information. The Department will publish notice according to the following schedule:

   (1)  For allocations made under subsection (b)(1), by April 1, 2008.

   (2)  For allocations made under subsection (b)(2), by April 1, 2009, and by April 1 every year thereafter.

   (3)  For allocations made under subsection (c), by March 1 each year, beginning in 2011.

   (e)  Order of budget allowance withdrawal. The Department will issue CAIR NOx allowances from the CAIR NOx Trading Budget established in 40 CFR 96.140 (relating to State trading budgets) in the following order:

   (1)  To new units under § 145.212(e).

   (2)  To units under § 145.212(f)(2).

   (3)  To units under § 145.212(c).

§ 145.212. CAIR NOx allowance allocations.

   (a)  Provisions not incorporated by reference. The requirements of 40 CFR 96.142 (relating to CAIR NOx allowance allocations) are not incorporated by reference. Instead of 40 CFR 96.142, the requirements in this section apply.

   (b)  Baseline heat input. Baseline heat input for each CAIR NOx unit will be converted as follows:

   (1)  A unit's control period heat input and a unit's status as coal-fired or oil-fired for a calendar year under this paragraph will be determined in one of the following two ways:

   (i)  In accordance with 40 CFR Part 75 (relating to continuous emission monitoring), to the extent that the unit was otherwise subject to 40 CFR Part 75 for the year.

   (ii)  Based on the best available data reported to the Department for the unit, to the extent the unit was not otherwise subject to the requirements of 40 CFR Part 75 for the year.

   (2)  Except as provided in subparagraphs (iv) and (v), a unit's converted control period heat input for a calendar year shall be determined as follows:

   (i)  The control period gross electrical output of the generators served by the unit multiplied by 7,900 Btu/kWh if the unit is coal-fired for the year, and divided by 1,000,000 Btu/mmBtu.

   (ii)  The control period gross electrical output of the generators served by the unit multiplied by 6,675 Btu/kWh if the unit is not coal-fired for the year, and divided by 1,000,000 Btu/mmBtu.

   (iii)  If a generator is served by two or more units, the gross electrical output of the generator will be attributed to each unit in proportion to the share of the total control period heat input from each of the units for the year.

   (iv)  For a unit that is a boiler and has equipment used to produce electricity and useful thermal energy for industrial, commercial, heating or cooling purposes through the sequential use of energy, the total heat energy (in Btus) of the steam produced by the boiler during the annual control period, divided by 0.8 and by 1,000,000 Btu/mmBtu.

   (v)  For a unit that is a combustion turbine and has equipment used to produce electricity and useful thermal energy for industrial, commercial, heating or cooling purposes through the sequential use of energy, the annual control period gross electrical output of the enclosed device comprising the compressor, combustor and turbine multiplied by 3,413 Btu/kWh, plus the total heat energy (in Btu) of the steam produced by any associated heat recovery steam generator during the annual control period divided by 0.8, and with the sum divided by 1,000,000 Btu/mmBtu.

   (vi)  Calculations will be based on the best output data available on or before January 31 of the year the allocations are published. If unit level electrical or steam output data are not available from EIA, or submitted by this date by the owner or operator of the CAIR NOx unit, then heat input data for the period multiplied by 0.25 and converted to MWh will be used to determine total output.

   (c)  Existing unit, new unit and subsection (f)(1) qualifying resource allocation baseline. For each control period beginning with January 1, 2010, and each year thereafter, the Department will allocate to qualifying resources and CAIR NOx units, including CAIR NOx units issued allowances under subsection (e), a total amount of CAIR NOx allowances equal to the number of CAIR NOx allowances remaining in the Commonwealth's CAIR NOx trading budget under 40 CFR 96.140 (relating to State trading budgets) for those control periods using summed baseline heat input data as determined under subsections (b) and (f)(1) from a baseline year that is 6 calendar years before the control period.

   (d)  Proration of allowance allocations. The Department will allocate CAIR NOx allowances to each existing CAIR NOx unit and qualifying resource in an amount determined by multiplying the amount of CAIR NOx allowances in the Commonwealth's CAIR NOx trading budget available for allocation under subsection (c) by the ratio of the baseline heat input of the existing CAIR NOx unit or qualifying resource to the sum of the baseline heat input of existing CAIR NOx units and of the qualifying resources, rounding to the nearest whole allowance as appropriate.

   (e)  Allocations to new CAIR NOx units. By March 31, 2011, and March 31 each year thereafter, the Department will allocate CAIR NOx allowances under § 145.211(c) (relating to timing requirements for CAIR NOx allowance allocations) to CAIR NOx units equal to the previous year's emissions at each unit, unless the unit has been issued allowances of the previous year's vintage in a regular allocation under § 145.211(b). The Department will allocate CAIR NOx allowances under this subsection of a vintage year that is 5 years later than the year in which the emissions were generated. The number of CAIR NOx allowances allocated may not exceed the actual emission of the year preceding the year in which the Department makes the allocation. The allocation of these allowances to the new unit will not reduce the number of allowances the unit is entitled to receive under another provision of this subchapter.

   (f)  Allocations to qualifying resources and units exempted by section 405(g)(6)(a) of the Clean Air Act. For each control period beginning with 2010 and thereafter, the Department will allocate CAIR NOx allowances to qualifying resources under paragraph (1) in this Commonwealth that are not also allocated CAIR NOx allowances under another provision of this subchapter and to existing units under paragraph (2) that were exempted at any time under section 405(g)(6)(a) of the Clean Air Act (42 U.S.C.A. § 7651d(g)(6)(A)), regarding phase II SO2 requirements, and that commenced operation prior to January 1, 2000, but did not receive an allocation of SO2 allowances under the EPA's Acid Rain Program, as follows:

   (1)  The Department will allocate CAIR NOx allowances to a renewable energy qualifying resource or demand side management energy efficiency qualifying resource in accordance with subsections (c) and (d) upon receipt by the Department of an application, in writing, on or before June 30 of the year following the control period, except for vintage year 2011 and 2012 NOx allowance allocations whose application deadline will be prescribed by the Department, meeting the requirements of this paragraph. The number of allowances allocated to the qualifying resource will be determined by converting the certified quantity of electric energy production, useful thermal energy, and energy equivalent value of the measures approved under the Pennsylvania Alternative Energy Portfolio Standard to equivalent thermal energy. Equivalent thermal energy is a unit's baseline heat input for allocation purposes. The conversion rate for converting electrical energy to equivalent thermal energy is 3,413 Btu/kWh. To receive allowances under this subsection, the qualifying resource must have commenced operation after January 1, 2005, must be located in this Commonwealth and may not be a CAIR NOx unit. The following procedures apply:

   (i)  The owner of a qualifying renewable energy resource shall appoint a CAIR-authorized account representative and file a certificate of representation with the EPA and the Department.

   (ii)  The Department will transfer the allowances into an account designated by the owner's CAIR-authorized account representative of the qualifying resource, or into an account designated by an aggregator approved by the Pennsylvania Public Utility Commission or its designee.

   (iii)  The applicant shall provide the Department with the corresponding renewable energy certificate serial numbers.

   (iv)  At least one whole allowance must be generated per owner, operator or aggregator for an allowance to be issued.

   (2)  The Department will allocate CAIR NOx allowances to the owner or operator of a CAIR SO2 unit that commenced operation prior to January 1, 2000, that has not received an SO2 allocation for that compliance period, as follows:

   (i)  By January 31, 2011, and each year thereafter, the owner or operator of a unit may apply, in writing, to the Department under this subsection to receive extra CAIR NOx allowances.

   (ii)  The owner or operator may request under this subparagraph one CAIR NOx allowance for every 8 tons of SO2 emitted from a qualifying unit during the preceding control period. An owner or operator of a unit covered under this subparagraph that has opted into the Acid Rain Program may request one CAIR NOx allowance for every 8 tons of SO2 emissions that have not been covered by the SO2 allowances received as a result of opting into the Acid Rain Program.

   (iii)  If the original CAIR NOx allowance allocation for the unit for the control period exceeded the unit's actual emissions of NOx for the control period, the owner or operator shall also deduct the excess CAIR NOx allowances from the unit's request under subparagraph (ii). This amount is the unit's adjusted allocation and will be allocated unless the proration described in subparagraph (iv) applies.

   (iv)  The Department will make any necessary corrections and then sum the requests. If the total number of NOx allowances requested by all qualified units under this paragraph, as adjusted by subparagraph (iii), is less than 1.3% of the Commonwealth's CAIR NOx Trading Budget, the Department will allocate the corrected amounts. If the total number of NOx allowances requested by all qualified units under this paragraphexceeds 1.3% of the Commonwealth's CAIR NOx Trading Budget, the Department will prorate the allocations based upon the following equation:

AA = [EA X (0.013 X BNA )] / TRA

where,

   AA is the unit's prorated allocation,

   EA is the adjusted allocation the unit may request under subparagraph (iii),

   BNA is the total number of CAIR NOx allowances in the Commonwealth's CAIR NOx Trading Budget,

   TRA is the total number of CAIR NOx allowances requested by all units requesting allowances under this paragraph.

   (3)  The Department will review each CAIR NOx allowance allocation request under this subsection and will allocate CAIR NOx allowances for each control period under a request as follows:

   (i)  The Department will accept an allowance allocation request only if the request meets, or is adjusted by the Department as necessary to meet, the requirements of this section.

   (ii)  On or after January 1 of the year of allocation, the Department will determine the sum of the CAIR NOx allowances requested.

   (4)  Up to 1.3% of the Commonwealth's CAIR NOx trading budget is available for allocation in each allocation cycle from 2011-2016 to allocate 2010-2015 allowances for the purpose of offsetting SO2 emissions from units described in paragraph (2). Beginning January 1, 2017, and for each allocation cycle thereafter, the units will no longer be allocated CAIR NOx allowances under paragraph (2). Any allowances remaining after this allocation will be allocated to units under § 145.212(c) during the next allocation cycle.

   (5)  Notwithstanding the provisions of paragraphs (2)--(4), the Department may extend, terminate or otherwise modify the allocation of NOx allowances made available under this subsection for units exempted under section 405(g)(6)(a) of the Clean Air Act after providing notice in the Pennsylvania Bulletin and at least a 30-day public comment period.

   (g)  The Department will correct any errors in allocations made by the Department and discovered after final allocations are made but before the next allocation cycle, in the subsequent allocation cycle using future allowances that have not yet been allocated.

§ 145.213. Supplemental monitoring, recordkeeping and reporting requirements for gross electrical output and useful thermal energy for units subject to 40 CFR 96.170--96.175.

   (a)  By January 1, 2009, or by the date of commencing commercial operation, whichever is later, the owner or operator of the CAIR NOx unit shall install, calibrate, maintain and operate a wattmeter, measure gross electrical output in megawatt-hours on a continuous basis and record the output of the wattmeter. If a generator is served by two or more units, the information to determine the heat input of each unit for that control period shall also be recorded, so as to allow each unit's share of the gross electrical output to be determined. If heat input data are used, the owner or operator shall comply with the applicable provisions of 40 CFR Part 75 (relating to continuous emission monitoring).

   (b)  By September 1, 2008, for a CAIR NOx unit that is a cogeneration unit, and for a CAIR NOx unit with cogeneration capabilities, the owner or operator shall install, calibrate, maintain and operate meters for steam flow in lbs/hr, temperature in degrees Fahrenheit, and pressure in PSI, to measure and record the useful thermal energy that is produced, in mmBtu/hr, on a continuous basis. The owner or operator of a CAIR NOx unit that produces useful thermal energy but uses an energy transfer medium other than steam, such as hot water or glycol, shall install, calibrate, maintain and operate the necessary meters to measure and record the data necessary to express the useful thermal energy produced, in mmBtu/hr, on a continuous basis. If the unit ceases to produce useful thermal energy, the owner or operator may cease operation of the meters, but operation of the meters shall be resumed if the unit resumes production of useful thermal energy.

   (c)  Beginning with 2009, the designated representative of the unit shall submit to the Department an annual report showing monthly gross electrical output and monthly useful thermal energy from the unit. The report is due by January 31 for the preceding calendar year.

   (d)  The owner or operator of a CAIR NOx unit shall maintain onsite the monitoring plan detailing the monitoring system and maintenance of the monitoring system, including quality assurance activities. The owner or operator of a CAIR NOx unit shall retain the monitoring plan for at least 5 years from the date that it is replaced by a new or revised monitoring plan. The owner or operator of a CAIR NOx unit shall provide the Department with a written copy of the monitoring plan by January 1, 2009, and thereafter within 3 calendar months of making updates to the plan.

   (e)  The owner or operator of a CAIR NOx unit shall retain records for at least 5 years from the date the record is created or the data collected as required by subsections (a) and (b), and the reports submitted to the Department and the EPA in accordance with subsections (c) and (d).

ADDITIONAL REQUIREMENTS FOR CAIR NOx OZONE SEASON TRADING PROGRAM

§ 145.221. Timing requirements for CAIR NOx ozone season allowance allocations.

   (a)  Provisions not incorporated by reference. The requirements of 40 CFR 96.341 (relating to timing requirements for CAIR NOx ozone season allowance allocations) are not incorporated by reference. Instead of 40 CFR 96.341, the requirements in this section apply.

   (b)  Regular allocations. The Department will make regular allocations of CAIR NOx ozone season allowances as follows:

   (1)  Except for allocations made under subsection (c), by April 30, 2008, the Department will submit to the Administrator the CAIR NOx ozone season allowance allocations made in accordance with § 145.222 (relating to CAIR NOx ozone season allowance allocations) for the control periods in 2010-2012 in a format prescribed by the Administrator.

   (2)  Except for allocations made under subsection (c), by April 30, 2009, the Department will submit to the Administrator the CAIR NOx ozone season allowance allocations made in accordance with § 145.222 for the control period in 2013 in a format prescribed by the Administrator. By April 30 every year after 2009, the Department will submit the allocations for the next consecutive control period.

   (c)  New CAIR NOx unit allowance allocations. By April 30, 2011, and by April 30 every year thereafter, the Department will submit to the Administrator the CAIR NOx Ozone Season allowance allocations made in accordance with § 145.222(e). The Department will base the allocations on actual emissions in the ozone season in the calendar year preceding the year of the submission.

   (d)  Publication. The Department will publish notice of the proposed CAIR NOx Ozone Season allowance allocations in the Pennsylvania Bulletin and will publish the final allocations after a 15-day public comment period. The Department will include in the notice the name and telephone number of a person to contact for access to additional information. The Department will publish notice according to the following schedule:

   (1)  For allocations made under subsection (b)(1), by April 1, 2008.

   (2)  For allocations made under subsection (b)(2), by April 1, 2009, and by April 1 every year thereafter.

   (3)  For allocations made under subsection (c), by March 1 each year, beginning in 2011.

   (e)  Order of budget allowance withdrawal. The Department will issue CAIR NOx ozone season allowances from the CAIR NOx ozone season Trading Budget established in 40 CFR 96.240 (relating to State trading budgets) in the following order:

   (1)  To new units under § 145.222(e).

   (2)  To units under § 145.222(c).

§ 145.222. CAIR NOx Ozone Season allowance allocations.

   (a)  Provisions not incorporated by reference. The requirements of 40 CFR 96.342 (relating to CAIR NOx ozone season allowance allocations) are not incorporated by reference. Instead of 40 CFR 96.342, the requirements in this section apply.

   (b)  Baseline heat input. Baseline heat input for each CAIR NOx ozone season unit will be converted as follows:

   (1)  A unit's control period heat input and a unit's status as coal-fired or oil-fired for the ozone season portion of a calendar year under this paragraph will be determined in one of the following two ways:

   (i)  In accordance with 40 CFR Part 75 (relating to continuous emission monitoring), to the extent that the unit was otherwise subject to the requirements of 40 CFR Part 75 for the control period.

   (ii)  Based on the best available data reported to the Department for the unit, to the extent the unit was not otherwise subject to the requirements of 40 CFR Part 75 for the year.

   (2)  Except as provided in subparagraphs (iv) and (v), a unit's converted control period heat input for the ozone season portion of a calendar year shall be determined as follows:

   (i)  The control period gross electrical output of the generators served by the unit multiplied by 7,900 Btu/kWh if the unit is coal-fired for the ozone season control period, and divided by 1,000,000 Btu/mmBtu.

   (ii)  The control period gross electrical output of the generators served by the unit multiplied by 6,675 Btu/kWh if the unit is not coal-fired for the ozone season control period, and divided by 1,000,000 Btu/mmBtu.

   (iii)  If a generator is served by 2 or more units, the gross electrical output of the generator will be attributed to each unit in proportion to the share of the total control period heat input from each of the units for the ozone season control period.

   (iv)  For a unit that is a boiler and has equipment used to produce electricity and useful thermal energy for industrial, commercial, heating or cooling purposes through the sequential use of energy, the total heat energy (in Btus) of the steam produced by the boiler during the ozone season control period, divided by 0.8 and by 1,000,000 Btu/mmBtu.

   (v)  For a unit that is a combustion turbine and has equipment used to produce electricity and useful thermal energy for industrial, commercial, heating or cooling purposes through the sequential use of energy, the control period gross electrical output of the enclosed device comprising the compressor, combustor and turbine multiplied by 3,413 Btu/kWh, plus the total heat energy (in Btu) of the steam produced by any associated heat recovery steam generator during the ozone season control period divided by 0.8, and with the sum divided by 1,000,000 Btu/mmBtu.

   (vi)  Calculations will be based on the best output data available on or before January 31 of the year the allocations are published. If unit level electrical or steam output data are not available from EIA, or submitted by this date by the owner or operator of the CAIR NOx Ozone Season unit, then heat input data for the period multiplied by 0.25 and converted to MWh will be used to determine total output.

   (c)  Existing unit, new unit and subsection (f)(1) qualifying resource allocation baseline. For each control period beginning with the 2010 control period and thereafter, the Department will allocate to qualifying resources and CAIR NOx ozone season units, including CAIR NOx ozone season units issued allowances under subsection (e), a total amount of CAIR NOx ozone season allowances equal to the number of CAIR NOx ozone season allowances remaining in the Commonwealth's CAIR NOx Ozone Season Trading Budget under 40 CFR 96.140 (relating to State trading budgets) for those control periods using summed baseline heat input data as determined under subsections (b) and (f)(1) from an ozone season control period in a baseline year that is 6 calendar years before the control period.

   (d)  Proration of allowance allocations. The Department will allocate CAIR NOx ozone season allowances to each existing CAIR NOx ozone season unit and qualifying resource in an amount determined by multiplying the amount of CAIR NOx ozone season allowances in the Commonwealth's CAIR NOx ozone season Trading Budget available for allocation under subsection (c) by the ratio of the baseline heat input of the existing CAIR NOx ozone season unit or qualifying resource to the sums of the baseline heat input of existing CAIR NOx ozone season units and of the qualifying resources, rounding to the nearest whole allowance as appropriate.

   (e)  Allocations to new CAIR NOx ozone season units. By March 31, 2011, and March 31 each year thereafter, the Department will allocate CAIR NOx ozone season allowances under § 145.221(c) (relating to timing requirements for CAIR NOx ozone season allowance allocations) to CAIR NOx ozone season units equal to the previous year's emissions at each unit, unless the unit has been issued allowances of the previous year's vintage in a regular allocation under § 145.221(b). The Department will allocate CAIR NOx allowances under this subsection of a vintage year that is 5 years later than the year in which the emissions were generated. The number of CAIR NOx ozone season allowances allocated shall not exceed the actual emission of the year preceding the year in which the Department makes the allocation. The allocation of these allowances to the new unit will not reduce the number of allowances the unit is entitled to receive under another provision of this subchapter.

   (f)  Allocations to qualifying resources. For each control period beginning with the 2010 control period, and thereafter, the Department will allocate CAIR NOx ozone season allowances to qualifying resources in this Commonwealth that are not also allocated CAIR NOx ozone season allowances under another provision of this subchapter, as follows:

   (1)  The Department will allocate CAIR NOx ozone season allowances to a renewable energy qualifying resource or demand side management energy efficiency qualifying resource in accordance with subsections (c) and (d) upon receipt by the Department of an application, in writing, on or before June 30 of the year following the control period, except for vintage year 2011 and 2012 NOx ozone season allowance allocations whose application deadline will be prescribed by the Department, meeting the requirements of this paragraph. The number of allowances allocated to the qualifying resource will be determined by converting the certified quantity of electric energy production, useful thermal energy, and energy equivalent value of the measures approved under the Pennsylvania Alternative Energy Portfolio Standard to equivalent thermal energy. Equivalent thermal energy is a unit's baseline heat input for allocation purposes. The conversion rate for converting electrical energy to equivalent thermal energy is 3,413 Btu/kWh. To receive allowances under this subsection, the qualifying resource must have commenced operation after January 1, 2005, must be located in this Commonwealth and may not be a CAIR NOx ozone season unit. The following procedures apply:

   (i)  The owner of a qualifying renewable energy resource shall appoint a CAIR-authorized account representative and file a certificate of representation with the EPA and the Department.

   (ii)  The Department will transfer the allowances into an account designated by the owner's CAIR-authorized account representative of the qualifying resource, or into an account designated by an aggregator approved by the Pennsylvania Public Utility Commission or its designee.

   (iii)  The applicant shall provide the Department with the corresponding renewable energy certificate serial numbers.

   (iv)  At least one whole allowance must be generated per owner, operator or aggregator for an allowance to be issued.

   (g)  The Department will correct any errors in allocations made by the Department and discovered after final allocations are made but before the next allocation cycle, in the subsequent allocation cycle using future allowances that have not yet been allocated.

§ 145.223. Supplemental monitoring, recordkeeping and reporting requirements for gross electrical output and useful thermal energy for units subject to 40 CFR 96.370--96.375.

   (a)  By January 1, 2009, or by the date of commencing commercial operation, whichever is later, the owner or operator of the CAIR NOx ozone season unit shall install, calibrate, maintain and operate a wattmeter, measure gross electrical output in megawatt-hours on a continuous basis and record the output of the wattmeter. If a generator is served by two or more units, the information to determine the heat input of each unit for that control period shall also be recorded, so as to allow each unit's share of the gross electrical output to be determined. If heat input data are used, the owner or operator shall comply with the applicable provisions of 40 CFR Part 75 (relating to continuous emission monitoring).

   (b)  By September 1, 2008, for a CAIR NOx ozone season unit that is a cogeneration unit, and for a CAIR NOx ozone season unit with cogeneration capabilities, the owner or operator shall install, calibrate, maintain and operate meters for steam flow in lbs/hr, temperature in degrees Fahrenheit and pressure in PSI, to measure and record the useful thermal energy that is produced, in mmBtu/hr, on a continuous basis. The owner or operator of a CAIR NOx ozone season unit that produces useful thermal energy but uses an energy transfer medium other than steam, such as hot water or glycol, shall install, calibrate, maintain and operate the necessary meters to measure and record the data necessary to express the useful thermal energy produced, in mmBtu/hr, on a continuous basis. If the unit ceases to produce useful thermal energy, the owner or operator may cease operation of the meters, but operation of the meters shall be resumed if the unit resumes production of useful thermal energy.

   (c)  Beginning with 2009, the designated representative of the unit shall submit to the Department an annual report showing monthly gross electrical output and monthly useful thermal energy from the unit. The report is due by January 31 for the preceding calendar year.

   (d)  The owner or operator of a CAIR NOx ozone season unit shall maintain onsite the monitoring plan detailing the monitoring system and maintenance of the monitoring system, including quality assurance activities. The owner or operator of a CAIR NOx ozone season unit shall retain the monitoring plan for at least 5 years from the date that it is replaced by a new or revised monitoring plan. The owner or operator of a CAIR NOx ozone season unit shall provide the Department with a written copy of the monitoring plan by January 1, 2009, and thereafter within 3 calendar months of making updates to the plan.

   (e)  The owner or operator of a CAIR NOx ozone season unit shall retain records for at least 5 years from the date the record is created or the data collected as required by subsections (a) and (b), and the reports submitted to the Department and the EPA in accordance with subsections (c) and (d).

[Pa.B. Doc. No. 08-667. Filed for public inspection April 11, 2008, 9:00 a.m.]



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