NOX Budget State Implementation Plan
MEETING THE STATEWIDE
OXIDES OF NITROGEN (NOX)
BUDGET REQUIREMENTS CONTAINED
IN THE NOX SIP CALL
(63FR57396, OCTOBER 27, 1998)
EXECUTIVE SUMMARY
This revision to the State Implementation Plan (SIP) for ozone sets forth how New York will meet the emissions budget for oxides of nitrogen (NOx) established in the United States Environmental Protection Agency's (EPA) final rule entitled "Finding of Significant Contribution and Rulemaking for Certain States in the Ozone Transport Assessment Group Region for Purposes of Reducing Regional Transport of Ozone", otherwise known as the "NOx SIP Call." This rulemaking set a NOx emissions budget for New York of 240,289 tons for the five month summer control period in the year 2007. New York will meet this budget through control programs already in place and by limiting the NOx emissions of certain major stationary sources through the NOx budget trading program being established under 6 NYCRR 204.
Part 204 applies to the following source categories: Electricity Generating Units with nameplate capacities equal to or greater than 15 megawatts; non-Electricity Generating Units with maximum design heat inputs equal to or greater than 250 mmBTU per hour, and; Portland cement kilns with maximum design heat inputs equal to or greater than 250 mmBTU per hour. Starting in April 2000, and in accordance with the procedures given in Part 204, the Department of Environmental Conservation will allocate the budget to sources within the above categories Sources may hold or transfer allowances, but, at the end of each year's reconciliation period, must have enough allowances in its compliance accounts to cover emissions during the control period.
The Department is anticipating a final rulemaking from EPA to establish the final budget numbers.
Contents
1.0 INTRODUCTION
2.0 STATEWIDE NOx BUDGET
2.1 INTRODUCTION
2.2 ELECTRIC GENERATING UNITS
2.3 NON-EGU POINT SOURCES
2.4 AREA SOURCES
2.5 ONROAD SOURCES
2.5.1 TRANSPORTATION CONFORMITY
2.6 NON-ROADSOURCES
2.7 CONTROL PROGRAMS ACCOUNTED FOR IN THE STATEWIDE NOx BUDGET
3.0 DESCRIPTION OF NOx BUDGET TRADING PROGRAM
3.1 SUBPART 204-1: NOx BUDGET TRADING PROGRAM GENERAL PROVISION
3.2 SUBPART 204-2: AUTHORIZED ACCOUNT REPRESENTATIVES FOR NOx BUDGET SOURCES
3.3 SUBPART 204-3: PERMITS
3.4 SUBPART 204-4: COMPLIANCE CERTIFICATION
3.5 SUBPART 204-5: NOx ALLOWANCE ALLOCATIONS
3.6 SUBPART 204-6: NOx ALLOWANCE TRACKING SYSTEM
3.7 SUBPART 204-7: NOx ALLOWANCE TRANSFERS
3.8 SUBPART 204-8: MONITORING AND REPORTING
3.9 SUBPART 204-9: INDIVIDUAL UNIT OPT-INS
4.0 COMPLIANCE WITH EPA NOx SIP CALL CHECKLIST
5.0 REPORTING REQUIREMENTS
APPENDICES
Appendix Title
A 6 NYCRR 204
B 6 NYCRR 227-3
C Consolidated Regulatory Impact Statement for Part 204
D OTC NOx MOU
E State Environmental Quality Review Documents for NOx SIP:
Negative Declaration
Short Environmental Assessment Form
F Area Source Emission Budget
G Electric Generating Sources Emission Budget
H non-EGU Sources Emission Budget
I-L (Reserved)
M On-Road Sources Emission Budget
N Non-Road Sources Emission Budget
Glossary of Terms
ACT, the 1990 Amendments to the Clean Air Act
Area Source All stationary sources smaller than those defined as "major". Examples include gas stations. Also included are emission source such as consumer products and cleaning solvents.
BEA Bureau of Economic Analysis
BTU/hr British Thermal Units per hour
CALEV/LEV The California Low Emission Vehicle program for light duty vehicles
CFR Code of Federal Regulations
CMSA Consolidated Metropolitan Statistical Area
CTG Control Techniques Guidance issued by the US EPA which defines RACT for a particular source.
DEC New York State Department of Environmental Conservation
Department New York State Department of Environmental Conservation
ECL Environmental Conservation Law
ECOS Environmental Council of States
EGU Electricity Generating Unit
EPA United States Environmental Protection Agency
EMS95 1995 Emission Modeling System
Final Rule; Technical Amendment EPA's "Technical Amendment to the Finding of Significant Contribution and Rulemaking for Certain States for Purposes of Reducing Regional Transport of Ozone" (64 FR 26298, May 14, 1999)
Final Base NOx emission levels for 2007 assuming all Clean Air Act and New State control programs, but without the NOx budget trading program
Final Budget NOx emission levels for 2007 assuming all Clean Air Act and New York State control programs, including the NOx budget trading program
Five Month Summer Control Period Annual period of time beginning May 1st and ending September 30th
FOIL Freedom of Information Law
FR Federal Register
HPMS Highway Performance Monitoring System
I/M (Enhanced Motor Vehicle) Inspection and Maintenance; also IM-240
LAER Lowest Achievable Emission Rate. The most stringent emission limitation achieved in practice, or which can reasonably be expected to occur in practice for a category of emission sources taking into consideration each air contamination which must be controlled. In no event shall the application of this term permit a proposed new source or modification to emit any air contaminant in excess of the amount permitted under any applicable emission standard established under state or federal regulations.
Lb/mmBTU pollutant emission rate in pounds per million British Thermal Units
MACT Maximum Available Control Technology
MOU Memorandum of Understanding
MPO Metropolitan Planning Organization
MWe Megawatt electrical
NAAQS National Ambient Air Quality Standards
Nameplate Capacity The maximum electrical generating output (in MWe) 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
NATS NOx Allowance Tracking System
NET National Emission Trends data
NESHAP National Emission Standard for Hazardous Air Pollutants
NOx oxides of nitrogen
NOx SIP Call EPA's final rulemaking entitled "Finding of Significant Contribution and Rulemaking for Certain States in the Ozone Transport Assessment Group Region for Purposes of Reducing Regional Transport of Ozone" (63 FR 57396, October 27, 1998)
NSPS New Source Performance Standards as established in 40 CFR 60
NSR New Source Review
NY-NJ-CT CMSA Consolidated Metropolitan Statistical Area encompassing the NYMA and parts of western Connecticut and northern New Jersey
NYCRR New York Codes, Rules and Regulations
NYTEST New York State High Enhanced Inspection and Maintenance Program
OTAG Ozone Transportation Assessment Group
OTC Ozone Transport Commission Governing body of the OTR
OTR Ozone Transport Region, which is comprised of States of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, and Washington, D.C. Consolidated Metropolitan Statistical Area.
Phase I SIP New York State Implementation Plan for Ozone: Phase I Alternative Attainment Demonstration Meeting the 1996 15% and 1999 9% Rate of Progress Requirements For the New York and Lower Orange County Metropolitan Areas - Final Proposed Revision December 1998
Phase II SIP New York State Implementation Plan for Ozone: Phase II Alternative Attainment Demonstration - Demonstration of Attainment of the One-hour National Ambient Air Quality Standard for Ozone by the Year 2007 and Meeting the 3 Percent Per-Annum Rate of Progress Requirements for the Years 2002, 2005 and 2007 for the New York and Lower Orange County Metropolitan Areas - Final Revision, November 1998
PSD Prevention of Significant Deterioration program, as established in 40 CFR 52
RACT Reasonably Available Control Technology, the lowest emission limit that a particular source is capable of meeting by the application of control technology that is reasonably available considering technological and economic feasibility.
RFG (Federal) Reformulated Gasoline
ROP Rate of Progress; described in the CAA as Reasonable Further Progress
RVP Reid vapor pressure, a measure of the vapor pressure of a liquid fuel in pounds per square inch absolute at 100 F.
SCC Source Classification Code
SIC Standard Industrial Classification
SIP State Implementation Plan
SO2 Sulfur Dioxide
TCM Transportation Control Measure
TIP Transportation Improvement Program
Title IV Controls Programs established under Title IV of the Act to control acid rain
TPD Tons Per Day
VOC Volatile Organic Compound
VMT Vehicle Miles Traveled
1.0 INTRODUCTION
This revision to the State Implementation Plan for ozone sets forth how New York will meet the emissions budget for oxides of nitrogen (NOx) established in the United States Environmental Protection Agency's (EPA) final rule entitled, "Finding of Significant Contribution and Rulemaking for Certain States in the Ozone Transport Assessment Group Region for Purposes of Reducing Regional Transport of Ozone" otherwise known as the "NOx SIP Call" (63 FR 57356, October 27, 1998). This federal rulemaking set a NOx emissions budget for New York of 240,289 tons for the year 2007. New York will meet this budget through control programs already in place and by limiting the NOx emissions of certain major stationary sources through the NOx Budget Trading Program being established under 6 NYCRR 204.
The NOx SIP Call came about as the result of several years of study into the effects of the transport of ozone and its precursors. Ozone is the major constituent of smog and is formed in the atmosphere by the photochemical reaction of NOx and reactive hydrocarbons (volatile organic compounds, or VOCs) in the presence of high temperatures and ultraviolet light. Ozone is also a respiratory irritant. Repeated exposure to ozone can make people more susceptible to respiratory infection and lung inflammation, and can aggravate pre-existing respiratory diseases, such as asthma.
Recognizing the adverse health and welfare impacts of ozone, the United States Congress, through the Clean Air Act (the Act), established ozone as a criteria pollutant, and delegated to the Environmental Protection Agency (EPA) the responsibility to promulgate and periodically revise the National Ambient Air Quality Standard (NAAQS) for ozone. EPA also is given the responsibility, through section 110 of the Act, to require States to revise their State Implementation Plans (SIPS) to provide for the implementation, maintenance, and enforcement of the NAAQS.
In the fall of 1990, Congress revised the Act to include, among other things, changes to the way States were to address bringing areas into attainment with the ozone NAAQS. Among the changes were a revised classification scheme for ozone nonattainment, with those areas with more severe ozone problems being given more time to attain. Congress also recognized that the transport of ozone and its precursors is a component of air pollution, and included language in sections 110 and 126 of the act prohibiting states from contributing significantly to nonattainment in, or interfering with the maintenance by, any other State with respect to any NAAQS. Congress, in further recognition of the multi-state contribution to nonattainment, established the Ozone Transport Region (OTR) through section 184 of the Act. New York is part of the OTR.
Congress required specific levels of control for VOC and NOx in the OTR, and also established the Ozone Transport Commission (OTC) for the purpose of assessing the degree of ozone transport in the OTR and recommending strategies to mitigate regional transport. Through the OTC, the OTR States confirmed that they would implement Reasonably Available Control Technology (RACT) on major sources of NOx, and agreed to a phased approach for additional controls beyond RACT. This agreement for additional controls to be established for power plants and other large fuel combustion sources is known as the OTC Memorandum of Understanding (MOU). The MOU established an emissions trading system for NOx. New York promulgated the first phase of this program as Part 227-3, which is attached as Appendix B.
After the revisions to the Act were in place, EPA began a series of "SIP Calls" to bring the States into attainment with the ozone NAAQS within the time frames given in the Act. It was the third such round of required SIP revisions, due in November of 1994, which began the groundwork for the NOx SIP Call. The November 1994 SIP revisions were to include a demonstration of how the affected areas were to attain the NAAQS by their statutory deadlines. However, nearly all nonattainment areas in the eastern United States, including the New York, New Jersey, Connecticut Consolidated Metropolitan Statistical Area (NY-NJ-CT CMSA) documented that, without lower ozone levels entering into the eastern United States modeling domain, they could not attain the ozone NAAQS. Even when modeling was performed with zero man-made emissions from within the modeling domain, ozone levels were found to be above the NAAQS. As a result, New York along with several other northeast states filed petitions pursuant to section 110(a)(2)(D) of the Act along with their November 1994 SIP submittals requesting EPA review the SIPS of upwind states to assure they contain adequate provisions to prohibit the emission of air pollutants which contribute significantly to nonattainment in another state.
As a result of the November 1994 SIP submittals, Mary Nichols, then EPA Assistant Administrator for Air and Radiation, issued a policy memorandum on March 2, 1995 to address the regional transport of ozone and its precursors and bring downwind areas into attainment with the NAAQS. To realize these commitments, EPA and the States, under the auspices of the Environmental Council of States (ECOS) formed the Ozone Transport Assessment Group (OTAG). New York participated in OTAG.
OTAG was a collective process among 37 States, the District of Columbia, EPA, environmental groups, interested members of the public, and other stakeholders. OTAG concluded that regional reductions in NOx emissions were needed to reduce the transport of ozone and its precursors. OTAG recommended that major sources of NOx be controlled under State NOx budgets, and also recommended the development of an emission trading program.
After reviewing OTAG's findings and recommendations, EPA proposed a rule to limit summer season NOx emissions in a group of States that EPA believes to be significant contributors to ozone in downwind areas. On November 7, 1997, EPA published a Notice of Proposed Rulemaking in the Federal Register (62 FR 60318) making a determination that transport of ozone from certain States in the OTAG region makes a significant contribution to nonattainment, or interferes with the maintenance of attainment, with the ozone NAAQS in downwind States. EPA also, through the Notice of Proposed Rulemaking, proposed summer season NOx budgets for each of these States, and required those States to amend their SIPs through the call-in procedure established in section 110 of the Act. EPA later published a Supplemental Notice of Proposed Rulemaking (63 FR 25902, May 11, 1998) within which it made technical corrections to the State NOx budgets and proposed a model emissions trading rule. EPA promulgated the final rule for the NOx SIP Call in the Federal Register on October 27, 1998 (63 FR 57356).
EPA's model emission trading rule, 40 CFR 96, is a market based system designed to reduce the costs of complying with the new NOx emission limits. This trading system places a collective cap on NOx emissions from major sources and provides for the trading of allowances similar to Title IV of the Act's SO2 Allowance Trading Program.
New York's NOx Budget Trading Program, Part 204, is similar to the model rule in 40 CFR 96. Part 204 applies to Electricity Generating Units with nameplate capacities equal to or greater than 15 Megawatts (MWe), Portland cement kiln units with maximum design heat inputs equal to or greater than 250 million BTU per hour (mmBTU/hr) and Non-electricity Generating Units with a maximum design heat input equal to or greater than 250 mmBTU/hr. Other units may opt-in to the program. The rule establishes a seasonal budget for these sources of 41,350 tons of NOx, and includes a compliance supplement pool of 2370 tons. The compliance supplement pool was established to protect energy reliability during the first two years of the program. A copy of Part 204 is attached to this document as Appendix A.
The remainder of this SIP revision is divided into four parts: Chapter 2, which explains how New York will comply with the Statewide NOx budget established above; Chapter 3, which explains how New York's NOx Budget Trading Program will work, Chapter 4 which explains how this SIP revision complies with EPA's NOx SIP Call checklist; and the supporting technical Appendices.
The appendices are not included with this document. They can be requested by contacting the Department at:
New York State Department of Environmental Conservation
Division of Air Resources
Bureau of Air Quality Planning
625 Broadway, 2nd Floor
Albany, NY 12233-3251
(518) 402-8396
2.0 STATEWIDE NOx BUDGET
2.1 INTRODUCTION
EPA's final rulemaking established NOx budgets for the 22 states in the OTR and the District of Columbia. These budgets were calculated for each state by growing the statewide NOx inventory from the base year of 1995 using appropriate growth factors to the year 2007. This inventory assumed all Clean Air Act control measures already in place and is the base year 2007 projected inventory. EPA then assumed the following control levels:
- For EGUS greater than 25 megawatts (Mw), a control level of 0.15 pounds of NOx per million BTU (lb/mmBTU),
- For non-EGUs (industrial boilers and turbines with maximum rated heat input greater than 250 mmBtu/hr) a 60% reduction from uncontrolled levels, and,
- For cement kilns with NOx emissions greater than 1 ton per typical ozone season day ("Portland cement kiln units"), a 30% reduction from uncontrolled levels.
EPA then reduced the inventory accordingly. This reduced inventory is the year 2007 NOx budget. New York's budget is 240,289 tons per ozone season.
The final rulemaking does not require all sources named above to be controlled to the levels provided above. The rule allows the states to establish individually how they will meet their overall statewide budgets. New York has chosen to establish a NOx budget trading program under 6 NYCRR 204 (NOx Budget Trading Program) in order to comply with this budget, and this Trading Program is described in Chapter 3. Part 204 will limit the total NOx emissions from sources regulated under the Budget Trading Program to 41,350 tons per ozone control period. Part 204 applies to the following sources:
- EGUs with nameplate capacities equal to or greater than 15 MW;
- Non-EGUs with maximum design heat inputs equal to or greater than 250 mmBTU/hr, and;
- Portland cement kiln units with maximum design heat inputs equal to or greater than 250 mmBTU/hr.
As stated above, Part 204 establishes an emissions cap of 41,350 tons of NOx per ozone control period for all the sources listed above. Section 204-5.3 further breaks the emissions cap down into budgets for each individual source category as follows:
- EGUs: 30,405 tons per season;
- Non-EGUs: 2860 tons per season, and;
- Portland cement kilns: 8085 tons per season.
Sources within each category are not limited to individual emission limits through Part 204, although they may have emission limits established under other State or federal control programs. The sum total of all NOx emissions from all sources in each category subject to Part 204 must be at or below the emission limits listed above.
EPA's rulemaking established budgets for all NOx sources within New York State, not just those sources described above. Budgets have also been established for point sources, area sources, on-road (highway) and non-road sources. The budgets established for sources not included in New York's NOx Trading Program are subject to change with revisions to the State's inventories, and are not enforceable. The measures that New York adopts, and EPA approves, to meet theses budgets are enforceable. While these budgets cannot be enforced, they are not an excuse for sources to exceed permitted emission limits or violate applicable State or Federal regulations.
Table 2-1 below shows the breakdown of New York's year 2007 final NOx Budget. The last two columns compare EPA's emission budget as anticipated to be published in an upcoming final rule in the Federal Register to those budgets that New York is accepting for the purpose of meeting EPA's NOx SIP Call. It is important to note that the budget numbers presented in the column entitled, "Anticipated Final Budget from upcoming EPA rulemaking" are different from those published in EPA's Final Rule; Technical Amendment entitled, "Technical Amendment to the Finding of Significant Contribution and Rulemaking for Certain States for Purposes of Reducing Regional Transport of Ozone," (64 FR 26298, May 14, 1999), and published in the first proposed SIP revision for this action. It should also be noted that the budget numbers listed in Table 2-1 are not final values until they are published in the Federal Register. The Department will re-open the public comment period for this SIP revision should EPA's final budget numbers significantly differ from those published below.
| Category | Final Base | Anticipated Final Budget from upcoming EPA rulemaking | Anticipated Final Budget accepted by the Department |
|---|---|---|---|
| EGU | 39,199 | 31,036 | 31,036 |
| non-EGU | 32,678 | 25,477 | 25,477 |
| Area | 17,423 | 17,423 | 17,423 |
| On-road | 124,261 | 124,261 | 124,261 |
| Nonroad | 42,091 | 42,091 | 42,091 |
| Overall | 255,652 | 240,289 | 240,289 |
Subtracting the Final Budget (240,123 tons) from the Final Base (255,652 tons) shows a difference of 15,529 tons of NOx. This is the amount of NOx emissions that Part 204 must eliminate in order for New York's NOx Budget Trading Program to comply with EPA's NOx SIP Call.
The Department analyzed the calculations EPA used to determine the budgets to determine the anticipated final budgets for the EGU and non-EGU Source Budget Categories. The separate Source Budget Categories listed above include sources not included in the NOx Budget reduction calculations. The EGUs Source Budget Category includes all EGUs, not just those greater than 25 MW and the non-EGU Category includes all non-EGUs, not just those greater than 250 MMBtu per hour. Therefore, the budgets in Table 2-1 do not match the emission caps in Part 204.
To determine the EGU budget, the Department applied the emission rate equal to the control level (0.15 pounds per MMBtu) to the appropriate 2007 activity for those EGUs with a nameplate capacity greater than 25 MW and added to that the appropriate 2007 activity times the applicable Reasonably Available Control Technology emission rate for the remaining units. To determine the emission cap for EGUs in Part 204, the Department totaled the above calculation for those units 15 MW and larger.
To determine the non-EGU budget, the Department identified those units controlled under the NOx SIP Call budget calculations. The Department reviewed the activity and emission rate information for those units and provided EPA with corrections where warranted. The Department used the revised data (activity grown to 2007 levels and uncontrolled emission rates) in calculating the Non-EGU Final Budget. This was done by applying the 60 % reduction to industrial boilers with maximum rated heat inputs greater than 250 MMBtu per hour and the 30 % reduction to the Portland cement kilns. Only the sources where emission reductions were identified are included the non-EGU and Portland cement kiln budgets in Part 204.
The only budgets which are enforceable are for those sources subject to 6 NYCRR 204. Budgets for other sources are not enforceable. As stated above, the rules and regulations governing these sources are enforceable, and compliance with these regulations is compliance with the NOx budget.
Detailed below is the methodology used to establish each source category's budget. The associated appendices contain only the Department's emission calculation spreadsheets. EPA's emission calculation spreadsheets are available on EPA's webpage at:
ftp://www.epa.gov/pub/scram001/modelingcenter/NOx_SIPcall/budget/ny_xls.zip
2.2 ELECTRIC GENERATING UNITS
The 1995 base year electric generating unit (EGU) data base consists of data from both electric utility units and non-utility units. The non-utility units include independent power producers and non-utility generators. The base year data base was developed from several different sources, most notably EPA's Acid Rain Data Base, EPA's emission tracking system and continuous emissions monitoring system, EPA's National Emission Trends Data Base, and the OTAG emission inventory. The data from the above sources was further refined from comments submitted on the federal NOx SIP Call rulemaking, including those made by the Department.
The 2007 base case emission inventory was determined by using EPA's integrated planning model, including the OTC Phase II NOx Budget, and all applicable control programs required by the Clean Air Act. Applicable controls include Title IV Acid Rain controls, Prevention of Significant Deterioration, and NOx Reasonably Available Control Technology.
The 2007 budget was developed by applying growth factors and appropriate emission rates to the 1995 base year heat input values for each regulated unit. Units greater than 25 MWe in the SIP call region had a uniform emission rate of 0.15 lb NOx/mmBTU applied to them. Units 25 MWe or smaller were left at their 2007 base case NOx emission rate.
The Department's spreadsheets detailing EGU NOx emissions are contained in Appendix G.
2.3 NON-EGU POINT SOURCES
The 1995 base year non-EGU point source inventory is based upon data originating in the OTAG 1990 base year inventory, and supplemented with State inventory data or EPA's National Emission Trends data (NET), where inventory data was not available. The 1995 base year inventory was then developed by applying BEA projections to the OTAG inventory, and then using the Emissions Modeling System-95 (EMS) to generate typical ozone season weekday and weekend allocations for episode modeling. Growth factors were then developed to project the emission inventory out to 2007.
The Department's spreadsheets detailing non-EGU NOx emissions are contained in Appendix H.
2.4 AREA SOURCES
New York's stationary area source emissions were derived from the 1990 base year inventory. While this inventory was originally prepared as part of the State's 1990 ozone nonattainment SIP emissions inventories, it was refined under the OTAG process and resubmitted as part of the State's Phase I SIP submission.
The State's SIP process requires the projection of the base year inventory for nonattainment areas to demonstrate Rate-of-Progress. Since this process required projections to 1996, 1999, 2002, 2005 and 2007 and were limited to only the nonattainment areas of the State the Department needed to mirror EPA's efforts to determine the accuracy of the SIP call inventory for stationary area sources.
In order to first determine if the SIP call budget for New York's area source inventory was accurate, the Department reviewed the 1990 base year inventory documents provided by EPA. Once this review had determined that the State's data was correct, the Department grew the inventory to 1995 to obtain the initial starting set of data used by EPA to project the 2007 base and budget emissions for stationary area sources. This projection was performed at the State 2-digit SIC level. Since area source categories are not generally calculated at the SIC level, the Department utilized an SIC-SCC cross reference file provided by EPA. The Department completed its review by growing the 1995 seasonal emissions to 2007. Stationary area sources have no applicable control requirements and none are anticipated prior to 2007, the base case and budget emissions were calculated by multiplying 1995 seasonal emissions by the applicable growth rate for 2007.
The Departments initial efforts to match EPA's inventory for stationary area sources was hampered by EPA's attempt to categorize area source emissions as a typical weekday, a Saturday and a Sunday for the development of an ozone season budget. EPA used the Emissions Modeling System (EMS-95) to projected the inventory for a typical weekday (Thursday), Saturday and Sunday and than multiplied those days by their respective occurrences during the ozone season (109 weekdays, 22 Saturdays and 22 Sundays) to derive the final budgets for the State.
Having received a number of comments on this matter, EPA, in its publication of the final SIP call emissions inventory for stationary area sources, reverted back to typical ozone season daily emissions multiplied by the 153 days of the ozone season. The Department agrees with this determination as the base year inventory was derived based on typical ozone season daily emissions.
The Department's spreadsheets detailing area source NOx emissions are contained in Appendix F.
2.5 ONROAD SOURCES
The onroad (highway) mobile source inventory is based on vehicle miles traveled (VMT) and VMT growth rate data generated from the Highway Performance Monitoring System (HPMS). The 2007 final budget for onroad sources was generated by the use of EPA's mobile 5b model. The use of mobile 5b is consistent with the Department's Phase I and II Rate-of-Progress submittals. The control measures included in the final onroad budget are:
- California Low Emission Vehicle Program
- Federal Reformulated Gasoline, phase II (mandatory and opt-in areas)
- 9.0 Reid Vapor Pressure gasoline elsewhere in the domain
- High enhanced Inspection and Maintenance program (NYTEST, using final cut-points)
- Year 2004 Federal heavy duty vehicle standards
Sample calculations are included in Appendix M. It should be noted that the 2007 final budget calculated in Appendix M is not identical to the budget presented in Table 2-1 and anticipated to be published by EPA as part of a final rulemaking in the Federal Register. That budget was generated by EPA and uses a different methodology than that in use by the Department. Specifically, EPA uses monthly maximum and minimum temperatures in its onroad calculations, and models each individual month within the ozone season, where the Department uses estimated daily minimum, maximum and hourly ambient temperatures in its modeling. The Department's modeling used temperatures based on the top ten exceedance days during the three-month ozone seasons of 1988 through 1990 for New York's nonattainment areas. This method for estimating temperatures is consistent with EPA's ozone SIP emission inventory guidance and has been approved by the Federal Highway Administration and EPA ("New York State 1990 Base Year Carbon Monoxide and Ozone Precursor On-Road Mobile Source Inventory," (March 1993)).
In addition to the different temperature profiles, EPA's calculations include the effects of excess NOx emissions from highway heavy-duty diesel engines with "defeat devices." These defeat devices cause engines to emit higher levels of NOx than indicated by their certification standards or by EPA's existing emission limits. EPA has recently completed its evaluation of the impacts of these defeat devices on NOx emissions. The Department has not yet had the opportunity to examine EPA's data and modify its own model to include these impacts. As such, the Department is accepting EPA's 2007 final on-road budget for the purpose of demonstrating compliance with the overall NOx budget.
As the changes to the baseline and budget amounts caused by these defeat devices are identical, the inclusion of these emissions in the budget do not alter the required amount of emission reductions states must achieve to meet the budget.
The Department's calculations given in Appendix M and EPA's budget presented in Table 2-1 are based on the same HPMS data, future year forecasts and control programs. As the VMT and other HMPS data, and the control programs represented are identical for both sets of modeling, the budgets are sufficiently similar, demonstrating compliance with the NOx budget.
2.5.1 TRANSPORTATION CONFORMITY
The budgets given in this document also differ from the year 2007 conformity budget given in the New York State Phase II SIP revision. These NOx budgets are based on an updated VMT inventory developed for the 1996 statewide emissions inventory, and future year VMT forecasts that were not available during the development of the Phase II SIP budgets. These more recent data have been used for the NOx budget calculation as they are more representative of actual motor vehicle usage. In addition, the budgets contained in this SIP revision are Statewide, while those contained in the Phase II SIP are only for the New York City/Lower Orange County Metropolitan Area.
Neither the budget numbers given in Appendix M nor those anticipated to be published in an upcoming Federal Register notice, and presented in Table 2-1, above are to be used for the purposes of conformity. Those budgets are strictly for the purpose of complying with EPA's NOx SIP Call. The budget numbers given in EPA's final NOx SIP Call are statewide budgets and are not crafted for individual nonattainment areas. Furthermore, EPA states in its response to comments on the final NOx SIP Call that, "...Federal Agencies or Metropolitan Transportation Planning Organizations (MPOs) operating in States subject to today's action do not have to demonstrate conformity to the SIP Call budgets or the highway vehicle budget component levels used to calculate the budgets..."
Transportation Plans, Transportation Improvement Programs (TIPs) and projects must continue to conform to applicable SIP budgets either approved or deemed adequate for the purposes of conformity in a formal finding by EPA as required in accordance with 6 NYCRR 240 and 40 CFR 93 Subpart A.
2.6 NONROAD SOURCES
The nonroad mobile source inventory is based on the 1990 OTAG inventory. The 2007 final budget for nonroad emissions was calculated by growing the OTAG inventory using Bureau of Economic Analysis growth factors and then applying control factors as stated in EPA's Emission Planning and Strategies Division's November 28, 1994 memorandum entitled, "Future Nonroad Emission Reduction Credits for Court-Ordered Nonroad Standards." The use of this method is consistent with the Department's Phase I and II Rate-of-Progress submittals. The control measures included in the final nonroad budget are:
- Federal Phase II small engine standards
- Federal marine engine standards
- Federal non-road heavy-duty (>=50 hp) engine standards, phase I
- Federal reformulated gasoline (mandatory and opt-in areas),
- 9.0 Reid Vapor Pressure gasoline elsewhere in the domain
- Federal locomotive standards
- Federal non-road diesel engine standards, phase 2 and 3
The Department's spreadsheets detailing non-road NOx emissions are given in Appendix N.
EPA is in the process of developing a non-road model for use in calculating non-road inventories. When this model is finalized, the Department will re-evaluate its statewide nonroad inventory and make corrections to the NOx budget as appropriate.
2.7 CONTROL PROGRAMS ACCOUNTED FOR IN THE STATEWIDE NOx BUDGET
Table 2-2, below, lists all New York State control programs accounted for in the Statewide budget. It should be noted that the table below is not a complete listing of all ozone control programs currently in place in New York. Readers should consult 40 CFR 52.1670 for a complete listing of all rules, regulations and other documents contained in the New York State ozone SIP. It should also be noted that the table includes New York State regulations only; the final budget also includes emission reductions from federal programs.
| Regulation | Title | Comment |
|---|---|---|
| 6 NYCRR 204 | NOx Budget Trading Program | Budget trading program for EGU and selected non-EGU sources |
| 6 NYCRR 212 | General Process Emission Sources | Requires NOx RACT statewide for major facilities |
| 6 NYCRR 216 | Iron or Steel Processes | Requires NOx RACT statewide for major facilities |
| 6 NYCRR 217 | Motor Vehicle Emissions | Enhanced I/M required in severe nonattainment areas; less restrictive programs required elsewhere |
| 6 NYCRR 218 | Emission Standards for Motor Vehicles and Motor Vehicle Engines | California LEV program required statewide |
| 6 NYCRR 219 | Incineration | Requires NOx RACT statewide for major facilities |
| 6 NYCRR 220 | Portland Cement Plants | NOx RACT required for major sources. Portland Cement Plants also subject to Part 204 |
| 6 NYCRR 225-3 | Fuel Composition and Use - Volatile Motor Fuel | Includes Reid Vapor Pressure and oxygenated fuel requirements |
| 6 NYCRR 227-2 | Stationary Combustion Installations | Requires NOx RACT statewide for major facilities |
| 6 NYCRR 227-3 | Pre-2003 Nitrogen Oxides Emissions Budget and Allowance Program | Phase II of the OTC NOx Budget Program |
| 6 NYCRR 231 | New Source Review in Nonattainment Areas and Ozone Transport Region | Requires LAER and emission offsets in nonattainment areas |
3.0 Description of NOx Budget Trading Program
Proposed Part 204 will establish a New York State Trading Program Budget which sets a statewide ozone season cap on NOx emissions beginning in 2003 from the same large stationary sources subject to 6 NYCRR 227-3, which sunsets in 2002. The Program to be implemented through Part 204 contains methodologies to allocate allowances to accounts set up for each affected NOx Budget unit in New York State and Department set-aside accounts set up for distributions to new units and sponsors of energy efficiency measures, projects generating electricity from renewable resources, and in-plant efficiency improvements. Each allowance represents a limited authorization to emit one ton of NOx starting with a particular ozone season. All the allowances in all the accounts established under the Program match the number of allowances in the New York State Trading Program Budget. The Program represents a cost-effective way to restrict NOx emissions to the State Trading Program Budget level because it allows the trading of allowances among NOx Budget units located in all States which have established equivalent programs, as well as any other person who establishes an account. Thus, market forces determine the most efficient allocation of this economic resource. To assure its integrity and reliability, the Program contains provisions governing, among other things, emissions monitoring, reporting and record keeping, compliance certification, permitting, and penalties for noncompliance.
Under the Program, allowances are initially allocated to accounts of the NOx Budget units and the Department set-aside accounts. Once allocated, allowances may generally be deducted for compliance purposes, transferred to others or banked for future use. EPA will be administering the computerized system to maintain the accounts and track the status of allowances which arise from any of the relevant State regulatory programs or FIPs. This computerized system is known as the NATS (NOx Allowance Tracking System).
The existing NOx budget sources receive their allocations three years prior to the ozone season for which they can be first used. This upfront allocation allows sources to plan and, if they choose, to trade these future year allowances. The allocation system includes a set-aside for new sources (5 % for EGUs and Portland cement kilns and 15 % for Non-EGUs) to provide for new sources entering into the program. New sources receive allowances from the new source set-aside on a first-come, first-served basis until they have operated long enough to be included in the existing source allocation procedure. Any unused new source allowances are returned annually to the existing sources in proportion to the level they were allocated for that year.
The allocations for the individual source categories must equal the category budget. The calculation procedure contains a fail-safe mechanism to adjust the individual source allocations proportionally if the calculation is either above or below the category budget. No source can be allocated above its potential to emit for the control period.
The allocation system also includes a 3 % set-aside for energy efficiency and renewable energy projects. Projects demonstrating avoided NOx emissions during the control period through end use energy efficiency measures or renewable energy sources are given priority over in-plant energy efficiency projects or fossil fuel fired electricity generating units which produce electricity more efficiently. Any unused energy efficiency/renewable energy set-aside allowances are returned annually to the existing sources in proportion to the level they were allocated for that year.
Described below are summaries of each subpart of Part 204:
3.1 Subpart 204-1: NOx Budget Trading Program General Provisions
This subpart contains all definitions, measurements, abbreviations and acronyms pertinent to the NOx Budget Trading Program, along with program applicability, language explaining how the shutdown or physical alteration of a NOx budget unit affects that unit's status and the NOx budget, standard requirements, and how time is computed.
3.2 Subpart 204-2: Authorized Account Representatives for NOx Budget Sources
This subpart addresses all matters regarding NOx account representatives, including how they are authorized, what their responsibilities are, and how they can be changed. Also addressed are alternate NOx authorized account representatives, account certificates of representation, and objections concerning the NOx authorized account representative.
3.3 Subpart 204-3: Permits
This subpart describes the permit requirements for NOx budget units, including required information, permit content, effective date of permits, and permit revisions. All NOx budget units must have a permit issued by the Department pursuant to Part 201 (Permits and Certificates).
3.4 Subpart 204-4: Compliance Certification
This subpart describes the compliance certification requirements. NOx authorized account representatives must submit to the Department and the Administrator a compliance certification report for each control period. The compliance certification report must verify whether each NOx budget unit covered under the report was operated in compliance with the requirements of the NOx budget program.
3.5 Subpart 204-5: NOx Allowance Allocations
This subpart establishes the New York State Trading Program Budget and the NOx allowances for all regulated sectors of the NOx Budget Program. This subpart also sets forth how the allowances are to be calculated for each sector, the new unit set-aside allocations, and for the NOx allowances contained in the compliance supplement pool are to be distributed.
3.6 Subpart 204-6: NOx Allowance Tracking System
This subpart sets forth how NOx Allowance Tracking System accounts are to be established and maintained. These include compliance, overdraft and general accounts. The subpart also contains the mechanisms for the banking of NOx allowances for future use or transfer. Also included in this subpart are compliance mechanisms, and deductions for excess emissions.
3.7 Subpart 204-7: NOx Allowance Transfers
This subpart establishes the procedures for allowance transfers, including recording and notification procedures.
3.8 Subpart 204-8: Monitoring and Reporting
This subpart establishes the monitoring and reporting requirements for NOx budget units. The owners and operators of NOx budget units are required to comply with subpart H of 40 CFR Part 75. Prohibitions are included against the use of alternate monitoring systems, failure to account for emissions, disruption of continuous monitoring systems and the permanent discontinuation of monitoring systems. Procedures are also established for certification, record keeping, reporting, and the handling of out of control periods.
3.9 Subpart 204-9: Individual Unit Opt-ins
This subpart contains the procedures whereby individual units that are not NOx budget units may opt-in to the program. Also included are the procedures whereby a unit that has opted in to the program may withdraw from the program.
4.0 COMPLIANCE WITH EPA NOx SIP CALL CHECKLIST
EPA has issued the checklist below as a guide for regional offices in reviewing NOx SIP Call SIP submissions. The checklist includes both completeness and approvability criteria for the submissions. Completeness criteria is also set forth in Appendix V of 40 CFR Part 51.
The Department has chosen to incorporate the checklist into the SIP revision itself, to aid both the general public and EPA in their review of the document.
NOx SIP Call Checklist
1. Budget Demonstration
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Does the SIP revision contain the baseline inventory for NOx mass emissions from EGU, non-EGU, area, highway and non-road mobile sources in the year 2007 as specified in section 51.121(g)(2)? 40 CFR 51.121(g)(2)(I)
The Department will accept EPA's baseline budget for the purpose of complying with the NOx SIP Call, after corrections to the technical amendment are published.
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Has the State certified that it has implemented all of the control measures assumed by EPA in developing the baseline 2007 inventory? 40 CFR 51.121(g)(2)(I)
All appropriate NYS rules are listed in chapter 2. Also, all regulations included in the SIP can be found in 40 CFR 52.1670.
If not, EPA may direct the State to adjust the baseline 2007 inventory. Id.
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Does the SIP revision have a 2007 projected inventory that demonstrates that the new State control measures, along with the measures assumed in the baseline 2007 inventory, will achieve the EPA assigned [see § 51.121 (e)(2)] State budget in 2007? 40 CFR 51.121(b)(1)(I), 51.121(g)(1), and 51.121(g)(2)(iii)
The projected inventory is included in chapter 2 and appropriate appendices.
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Does the SIP revision project the 2007 emissions expected after implementation of each control measure compared to the baseline 2007 inventory for the subject sources if the new control measure was not implemented? 40 CFR 51.121(g)(2)(iii)
A comparison of the projected inventory to the baseline inventory is included in chapter 2.
Does EPA find the projections to be reasonable?
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Are computations, assumptions, and judgments used by the State to determine its projected 2007 NOx mass emissions following implementation of the control measures included with the SIP revision? 40 CFR 51.121(g)(2)(iii)
Computations, assumptions and judgements are included in the appropriate appendices, and discussed in chapter 2.
Does EPA find the computations to be accurate and the assumptions and judgments to be reasonable?
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Does the revision identify the sources of the data used by the State in projecting the emissions reductions achieved through implementation of each and all of the control measures? 40 CFR 51.121(g)(2)(iv)
Data sources are identified in both the appropriate appendices and chapter 2.
Does EPA find the sources of the data used to be appropriate?
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Has the State indicated whether or not it intends to use the compliance supplement pool? 40 CFR 51.121(e)(3)
New York is using the compliance supplement pool. 204-5.3 (g), 2370 tons. In accordance with the procedures allowed by the OTC States implementing Phase II NOx MOU programs, any allowances remaining in accounts after the 2002 reconciliation period will be converted to 2003/2004, allowing the amount of allowances after the 2002 reconciliation period exceeds the State's allotment from the compliance supplement pool (CSP). The amount of allowances converted to 2003/4 allowances will be prorated so as not to exceed the State's CSP allotment.
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Does the SIP submission provide for and describe the mechanism(s) to be used for distribution of the compliance supplement pool, if a State allows use of credits from the State's compliance supplement pool? 40 CFR 51.121(e)(3)(iv)
The procedure for distributing the compliance supplement pool is established in 204-5.3(g). It is based upon banked allowances for sources subject to 227-3.
If yes,
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Do the SIP rules ensure that the State will not issue more credits than are contained within its Compliance Supplement Pool? 40 CFR 51.121(b)(2)(ii)(B) and 51.121(e)(3)(I)
Yes. 204-5.3
- Are the mechanisms for distribution of the State's compliance supplement pool limited to the early reduction credit methodology and/or the direct distribution methodology described below? 40 CFR 51.121(e)(3)(iv)
The distribution mechanism is an early reduction credit methodology. It is a mechanism established for OTC States based on banked allowances from Part 227-3.
If the SIP submission provides for and describes an early reduction credit methodology:
- Does the SIP rule require that the State shall complete the early reduction credit issuance process by no later than May 1, 2003? 40 CFR 51.121(e)(3)(iv)(A)(1)
Yes. 204-5.3(g)(4).
- Does the early reduction credit methodology ensure that the reductions for which credit is given are not required by the State's SIP or otherwise required by the CAA? 40 CFR 51.121(e)(3)(iv)(A)(2)
227-3.10 (Early Reduction Allowances) requires that reductions are real, quantifiable, and surplus. The criteria by which the Department characterizes reductions to be surplus is also included in 227-3.10.
- Does the early reduction credit methodology ensure that the reductions will be verified by the source as having actually occurred during an ozone control season between September 30, 1999 and May 1, 2003 and ensure that the reductions are quantified according to procedures set forth in the SIP revision and approved by EPA? 40 CFR 51.121(e)(3)(iv)(A)(3) and 51.121(e)(3)(iv)(A)(4)
Yes. In accordance with section 51.121, only banked 2000, 2001, and 2002 vintage OTC allowances will count as reductions.
- Does the early reduction credit methodology ensure that the reductions implemented by sources serving electric generators with a nameplate capacity greater than 25 MW or boilers, combustion turbines or combined cycle units with a maximum design heat input greater than 250 mmBtu/hr are quantified according to 40 CFR part 75, subpart H, requirements? 40 CFR 51.121(e)(3)(iv)(A)(4)
Yes, as per 227-3. Must be Part 75 or equivalent.
If the SIP submission provides for and describes a direct distribution methodology:
N/A - Does the direct distribution methodology provide for the direct distribution credit issuance process to be initiated by the later date of September 30, 2002 or after the State completes the issuance of early reduction credits? 40 CFR 51.121(e)(3)(iv)(B)(1)
- Does the direct distribution methodology provide for completion of the process by no later than May 1, 2003? 40 CFR 51.121(e)(3)(iv)(B)(2)
- Does the direct distribution methodology ensure that credit is issued only if the source demonstrates all of the following:
- that achieving compliance would create undue risk, and
- that early reduction credits could not be generated or acquired. 40 CFR 51.121(e)(3)(iv)(B)(3)
- Does the direct distribution methodology provide the public opportunity to comment, through a public hearing process, on the appropriateness of allocating compliance supplement pool credits to a source? 40 CFR 51.121(e)(3)(iv)(B)(4)
2. Enforceable Measures for Control
- Does the State include each of the following with respect to each of the control measures the State has elected to implement:
- __ (a) the enforceable emission limit, technology requirement, or specific measure for each source; Each source's Title V permit gives its NOx limit. Part 201 (Construction and Operating Permits) governs the content of permits, including enforceable emission limits and control measures.
- __ (b) projected activity level for each source or group of sources (not required for any category with an aggregate mass emissions cap or equivalent); Both aggregate and individual activity levels are specified.
- __ (c) other factors necessary to calculate the effect of the control requirements; All factors specified in the rule.
- __ (d) emission rate & activity level measurement and emission estimations protocols; Emission rates are specified. 204- 8. Title V permits should also contain measurement and emission estimation protocols. (201-6.3(d) requires emission-related information to be included in permits for facilities subject to Title V. 201-5.2(b) requires emission-related information to be included in permits for those facilities subject to state requirements.
- __ (e) reporting protocols for emission limit, activity level, and emissions; 204-8
- __ (f) enforcement mechanisms; ECL, 204-1.6(d)
- __ (g) penalties for exceeding emission limits or failing to install or operate control technologies or carry out compliance measures; 204-1.6(c)(2)
- __ (h) provision for each control measure to be implemented by May 1, 2003? 40 CFR 51.121(b)(1), 51.121(f)(1), and 51.121(I). 204-1.6(c)(3).
If the SIP submittal controls fossil fuel fired NOx sources serving electric generators with a nameplate capacity greater than 25 MW or boilers, combustion turbines or combined cycle units with a maximum design heat input greater than 250 mmBtu/hr:
- Does the SIP submittal require one of the following for these sources:
- _X_ (a) NOx mass emissions cap, in tons/ozone control season; 204-5.3(a)(1). 30,405 tons.
- ___ (b) NOx emissions rate limit (lbs NOx/mm BTU) assuming maximum operating capacity (rated capacity [BTU/hr] and full seasonal operation [hours/5 month ozone control season]) for purposes of estimating NOx mass emissions from each source; or No.
- ___ (c) any other regulatory requirement which the State demonstrates to EPA provides equivalent or better assurance than (a) or (b) above that the State will comply with its NOx budget in the 2007 ozone control season? 40 CFR 51.121(f)(2)(I) No.
- Does the SIP submittal controlling these sources require and provide enforceable mechanisms to assure that collectively emissions from all such sources (including new or modified units) will not exceed the aggregate mass emissions projected by the State for 2007 for that category in any ozone control season beginning in 2003? 40 CFR 51.121(f)(2)(ii)
Yes 204-5.3(b) calculation procedures.
- Does the SIP submittal controlling these sources require all such sources to comply with 40 CFR part 75, subpart H, monitoring requirements? 40 CFR 51.121(I)(4)
Yes. 204-8.1.
If the SIP revision contains any transportation control measures:
- Does the revision comply with 40 CFR 51.213? 40 CFR 51.121(I)(3)
The SIP revision does not contain any transportation control measures, so 40 CFR 51.213 and 40 CFR 51.121(l)(3) are not applicable.
3. Legal Authority
- Does the SIP revision have fully adopted state rules/regulations adequate to prohibit NOx emissions in excess of the State's budget with compliance dates no later than May 1, 2003? 40 CFR 51.121(b)(1) and 51.121(f)(1)
Part 204 will be adopted in time to control the 2003 season.
- Does the revision provide for legally enforceable procedures for requiring owners or operators of stationary sources to maintain records and to periodically report to the State (a) information on the amount of NOx emissions from their sources and (b) other information as may be necessary to enable the State to determine whether the sources are in compliance with applicable portions of the control measures? 40 CFR 51.121(f)(1)(I) and 51.121(I)(1)
204-8.5 contains these provisions.
- Does the revision comply with 40 CFR 51.212 (regarding testing, inspection, enforcement, and complaints)? 40 CFR 51.121(I)(2)
Testing is covered under Parts 201 and 202. Inspection, enforcement and complaint under ECL 19-0305 (Commissioner; Enforcement Power) and 19-0503 (Complaints; Investigations).
- Does the revision contain adequate procedures for handling control measure violations? 40 CFR 51.121(f)(1)(ii) and 51.121(I)(2)
Yes. 204-1.6(c) and (d).
- Does the revision designate agency responsibility for enforcement of implementation? 40 CFR 51.121(f)(1)(iii) and 51.121(l)(1)
The Department, through Title 19 of the ECL, has the responsibility for enforcement of implementation.
- Does revision show that the State has legal authority to carry out the revision, including authority to:
- __ (a) adopt emission standards and limitations and any other measures necessary for attainment and maintenance of the State's NOx budget; ECL 3-0301, 19-0301, 19-0305
- __ (b) enforce applicable laws, regulations and standards, and seek injunctive relief; ECL 19-0305.
- __ (c) obtain information necessary to determine compliance with applicable control measures, including authority to require record keeping and to make inspections and conduct tests of air pollution sources; ECL, Parts 201, 202.
- __ (d) require owners or operators of stationary sources to install, maintain and use emissions monitoring devices and make periodic reports to the State on the nature and amounts of emissions from such stationary sources; Part 201 and
- __ (e) make such data available to the public as reported and as correlated with any applicable emissions standards or limitations? 40 CFR 51.121(j) Part 201, FOIL
- Does the SIP revision specifically identify and provide copies of the laws or regulations which the State determines provide the authorities described above (or provide citations for those laws or regulations)? 40 CFR 51.121(k)(1)
This is explained in the consolidated RIS for Part 204, included as Appendix C.
- Does the SIP revision comply with the general plan requirements of § 51.240? [§ 51.240 requires that each State implementation plan must identify organizations that will participate in developing, implementing and enforcing the plan and the responsibilities of such organizations. The plan shall include any related agreements or memoranda of understanding among the organizations.] 40 CFR 51.121(l)(2)
The Department is the only organization involved in the implementation of the program.
- Does the SIP revision comply with § 51.280 (regarding resources)? 40 CFR 51.121(m)
The Department has sufficient resources through the Title V program.
4. Compliance Dates and Schedules
- Does the revision contain a legally enforceable compliance schedule setting forth May 1, 2003 as the date by which all sources must be in compliance with any applicable requirement that is adopted by the State to meet its budget? 40 CFR 51.121(b)(1)(ii)
204-3.2 spells out the deadline dates for NOx permit applications.
5. Monitoring, Record keeping and Emissions Reporting
- Does the SIP revision comply with the data availability requirements of § 51.116? [§51.116 requires the State to retain all detailed data and calculations used in the preparation of the revision and make them available for public inspection and submit them to the Administrator at her request. Also, each plan must provide for public availability of emission data reported by source owners or operators or otherwise obtained by the State. Such emission data must be correlated with applicable requirements.] 40 CFR 51.121(h)
All data used to prepare the SIP revision will be made publicly available. All emission data reported by sources is available to the public through FOIL.
- Does the revision provide for State compliance with the reporting requirements set forth in section 51.122? This would include annual reports starting in 2003, triennial reports starting in 2002 and a 2007 report, in accordance with the requirements of section 51.122. 40 CFR 51.121(o)
Yes. 204-8. In addition, chapter 5 of this SIP revision commits the Department to the reporting requirements of 40 CFR 51.122.
- __ Does the revision include mechanisms for the State to obtain from sources the data needed for the State to report emissions information to EPA in accordance with section 51.122 (note that for large EGUs or non-EGUs this requirement may be satisfied by direct submission of data from the source to EPA)? 40 CFR 51.121(f)(1)(I) and 51.121(I)(1) Direct submission to EPA. 204-8.5(d)(3)
6. Trading Rule
If the SIP revision contains a trading rule:
- Starting with the 2004 control season, does the SIP trading rule limit the use of any banked emission reduction credits or emission allowances beyond a predetermined amount as calculated by one of the following approaches:
- _X_ the SIP trading rule prohibits sources from using banked emission reduction credits or allowances for compliance in excess of 10 percent of the source's allowable ozone season NOx emissions at a rate less than 2 credits or allowances for every 1 ton of emissions; or ___ the SIP trading rule limits the use of banked emission reduction credits or emission allowances beyond a predetermined amount as calculated by the approach in section 51.121(b)(2)(ii)(E)(1)? 40 CFR 51.121(b)(2)(ii)(E)
If the State wants to participate in the NOx Budget Trading Program:
- Is the State's SIP trading rule consistent with part 96 in one of the following ways:
- ___ Did the State adopt by reference part 96 with no changes? No.
- ___ If the State did not adopt part 96 by reference, is the State's SIP trading rule substantively identical to each provision of part 96? No.
- ___ Is the State's SIP trading rule substantively identical to each provision of part 96 except in the following respects (any or all of the following may be checked):
- _X_ the State's SIP trading rule includes smaller electric generating units and/or smaller non-electric generating boilers, turbines and combined cycle units than the size criteria thresholds set forth in 40 CFR 96.4(a); 15 MW applicability for EGU.
- _X_ the State's SIP trading rule includes source categories other than electric generating units and non-electric generating boilers, turbines, and combined cycle units as defined in 40 CFR 96.2; Cement kilns included.
- _X_ If yes, are these additional source categories able to comply with all the part 96 requirements including monitoring and reporting? Yes.
- ___ the State's SIP trading rule does not include the individual unit opt-in provision set forth in subpart I of 40 CFR part 96; Opt-in included.204-9.
- ___ the State's SIP trading rule does not provide the 25 ton/season exemption set forth in 40 CFR 96.4(b); It is provided. 204-1.4(b)
- ___ the State's SIP trading rule does not allow early reduction credits; Early reduction credits are allowed.
- ___ the State's trading rule allows early reduction credits using an alternative methodology from that described in 40 CFR 96.55(c) (and still satisfies the early reduction credit criteria described under the heading of Budget Demonstration and in 40 CFR 51.121(e)(3));
- _X_ the State's SIP trading rule describes a different methodology for allocating allowances from that set forth in subpart E of 40 CFR part 96 while still ensuring that the number of allowances issued does not exceed the State trading program budget and that new sources are required to hold allowances; Yes, 204-5. This is described in chapter 3, above.
- _X_ the State's SIP trading rule issues allocations for periods different from that set forth in 40 CFR 96.41 while still ensuring that allocations are issued by April 1 of each year three years prior to the relevant control season? 40 CFR 51.121(p) Yes. Annual allocations 3 years in advance.
- Does the SIP submittal contain unit allocations for the 2003 ozone control season? 40 CFR 96.41(a)
Unit allocations will be provided after Part 204 has been adopted..
- Does the SIP revision show that the State has the legal authority to adopt the trading rule and to implement its responsibilities under such regulations? 40 CFR 51.121(p)(1)(I)
ECL 3-0301, 19-0301, 19-0305 provide the Department with the legal authority to adopt the trading rule and implement regulations.
- Does the SIP revision accurately reflect the NOx emissions reductions to be expected from the State's implementation of the trading rule? 40 CFR 51.121(p)(1)(ii)
Yes.
5.0 REPORTING REQUIREMENTS
In accordance with 40 CFR 51.122, the Department of Environmental Conservation commits to provide to EPA reports regarding the NOx Budget on the following schedules:
- Annually starting in 2004, as discussed in 204.8;
- Tri-annually starting in 2003, and;
- A report in 2007.
