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Subpart 227-3 Pre-2003 Nitrogen Oxides Emissions Budget and Allowance Program

(Statutory authority: Environmental Conservation Law, Sections 1-0101, 3-0301, 19-0103, 19-0105, 19-0301, 19-0303, 19-0305, 19-0311)

[Filed 2/3/99. Effective 30 days after filing.]

[This is page 1 of 1 of this Subpart. A complete list of Subparts in this regulation appears in the Chapter 3 contents page. A list of sections in this Subpart appears below.]

For administrative information about this posting, contact: Division of Air Resources. The Bureau of Stationary Sources at (518) 402-8403 is the contact for technical questions pertaining to this rule.

Contents:

Sec.

§227-3.1 Purpose

The purpose of this Subpart is to establish a NOx emissions budget and allowance program which will act as a mechanism to reduce NOx emissions from budget sources during each control period in an economically efficient manner. Establishment of this program will fulfill New York State's commitment, as outlined in the OTC NOx MOU, to propose legal or regulatory measures aimed at implementing the "Phase 2" NOx emissions reductions.

§227-3.2 Program applicability

(a) Mandatory applicability. This Subpart applies to the owner and/or operator of every budget source.

(b) Source opt in provisions. The owner and/or operator of any major stationary source in the State that does not meet the definition of a budget source, may opt in to this program subject to the following conditions:

(1) To opt in to this program, the owner and/or operator of the candidate opt in source shall submit to the department an opt in application which includes documentation of both the opt in baseline control period NOx emissions and NOx emissions during the preceding five years from all other sources to which production could be moved from the candidate opt in source. To become a candidate opt in source for the 1999 control period, the owner and/or operator of the source must submit the opt in application within 30 days of the effective date of this Subpart. To become a candidate opt in source for any later control period, the owner and/or operator must submit the opt in application by January 1st preceding that control period.

(2) Upon approval of the opt in application, the candidate opt in source becomes an opt in source. Every opt in source will be treated as a budget source except with regard to the continued receipt of allowances following cessation of operations as provided for in section 227-3.5(c) of this Subpart, the transfer of allowances from the Department New Budget Source Holding Account pursuant to section 227-3.5(e) of this Subpart, and the creation of early reduction allowances pursuant to section 227-3.10 of this Subpart.

(3) The allowance allocation for an opt in source shall be equivalent to the opt in baseline control period NOx emissions or the current permitted NOx emissions from the source, whichever is less. However, if an opt in source creates emission reduction credits in accordance with the provisions of Part 231of this Title by reducing its NOx emission rate, the allowance allocation to the opt in source will not be reduced. This does not in any way obviate the need for the source to comply with any enforceable permit limitations relevant to any emission reduction credits created under the terms of Part 231of this Title and the restriction set forth in section 227-3.5(b) of this Subpart on the transfer of emission reduction credits to a source that does not maintain a compliance account in the NATS.

(4) When an opt in source ceases or curtails operations, the number of allowances allocated to it will be decreased by the number of tons of NOx emissions reduced through the cessation or curtailment of operations.

(5) Once the department approves a source's opt in application, the department will, by the following May 1st, allocate allowances to the new opt in source and modify the State NOx Budget accordingly. In no case will the allocation of allowances to an opt in source require adjustments to the allocation of allowances to the budget sources listed at section 227-3.5(a) of this Subpart.

(6) Any person who opts in to this program, can not opt out unless NOx emitting operations at the opt in source have ceased and relevant permits are surrendered.

(c) No source may be a budget source or opt in source unless it is a major stationary source and has a title V facility permit. No source that accepts an emissions cap pursuant to Subpart 201-7 of this Title may be a budget source or an opt in source.

§227-3.3 Definitions

(a) For the purposes of this Subpart, the general definitions of Part 200 of this Title apply.

(b) For the purposes of this Subpart, the following definitions also apply:

(1) AAR - Authorized Account Representative. The person who is authorized, in writing, to transfer and otherwise manage allowances as well as certify reports to the NATS and the NETS.

(2) Account. The place in the NATS where an allowance is recorded.

(3) Account number. The identification number given by the administrator to an account in which allowances are held in the NATS.

(4) Allocate or allocation. The assignment of an allowance by the department to an account as recorded by the administrator.

(5) Allocation period. The time period encompassing the calendar years 1999 through 2002 and corresponding with the "Phase 2" period controls outlined in the OTC NOx MOU.

(6) Allowance. The limited authorization to emit one ton of NOx during a specified control period, or any control period thereafter. An allowance shall not constitute a security or other form of property.

(7) Allowance deduction. The permanent retirement by the administrator of an allowance used for compliance purposes from a compliance account or compliance overdraft account.

(8) Allowance transfer. The transfer of an allowance from one account to another account by whatever means, including, but not limited to, purchase, trade, auction, or gift.

(9) Allowance transfer deadline. 11:59 p.m. of December 31st of a given calendar year. It is the deadline by which an allowance must be submitted for recording in a budget source's compliance account or compliance overdraft account for purposes of complying with the requirements of this Subpart applicable to the preceding control period.

(10) Banked allowance. An allowance which is not deducted with regard to its initially applicable control period but which is carried forward for future use.

(11) Banking. The retention of unused allowances from one control period for use in a future control period.

(12) Boiler. A device that combusts fossil fuel and produces steam or heats water or any other heat transfer medium.

(13) Budget source. Subject to the provisions of subdivision (c) of this section, any fossil fuel fired boiler or indirect heat exchanger with a maximum heat input capacity equal to or greater than 250 million British thermal units per hour (MMBtu/hr) and any electric generating device with a rated output equal to or greater than 15 megawatts.

(14) CEMS - Continuous Emissions Monitoring System. The equipment required by this Subpart to sample, analyze, and measure NOx emissions so as to provide a permanent record of emissions expressed in lbs/MMBtu and tons per day. The following devices and systems are components of a continuous emissions monitoring system:

(i) nitrogen oxides pollutant concentration monitor(s);

(ii) diluent gas monitor(s) (oxygen or carbon dioxide);

(iii) a data acquisition and handling system; and

(iv) flow monitoring systems (where appropriate).

(15) Compliance account. An account assigned to a budget source from which an allowance may be deducted for compliance purposes.

(16) Compliance overdraft account. An account assigned to a facility which has two or more budget sources from which an allowance may be deducted for compliance purposes.

(17) Control period. The period beginning May 1st of a calendar year and ending on September 30th of the same year.

(18) Current year. The calendar year in which the action takes place. For example, an allowance allocated for use in 1999 which goes unused and becomes a banked allowance on January 1, 2000 can be used in the "current year" 2000 subject to the conditions for banked allowance use as set forth in section 227-3.9 of this Subpart.

(19) Department Energy Efficiency Holding Account. An account held by the department from which allowances may be transferred to NYSERDA as part of an effort to investigate and analyze the potential for awarding allowances to persons who implement electric energy end-use efficiency measures.

(20) Department New Budget Source Holding Account. An account held by the department from which allowances may be transferred to new budget sources.

(21) Department Retirement Account. An account held by the department for purposes of holding allowances which were never used for compliance purposes, and may no longer be used by anyone at any time.

(22) Early reduction allowance. An allowance awarded to a budget source in 1999 by the department following department certification of each ton of NOx emissions reduced by the budget source during the 1997 and/or 1998 control periods.

(23) Electric generating device. Any fossil fuel fired combustion device which provides electricity for sale or use.

(24) Excess emissions. The number of tons of NOx emissions from a budget source during a control period, rounded to the nearest whole ton, which is greater than the number of allowances in the budget source's compliance account and/or compliance overdraft account at the allowance transfer deadline.

(25) Fossil fuel fired. The combustion of fossil fuel or any derivative of fossil fuel alone, or, if in combination with any other fuel, fossil fuel comprises 51 percent or greater of the annual heat input on a Btu basis.

(26) General account. An account that is not a compliance account, a compliance overdraft account, the Department Energy Efficiency Holding Account, the Department New Budget Source Holding Account, or the Department Retirement Account.

(27) Guidance Document. The January 28, 1997 document issued by the Ozone Transport Commission titled "Guidance for Implementation of Emission Monitoring Requirements for the NOx Budget Program" as well as attendant and incorporated documents including the July 3, 1997 document issued by the OTC titled "NOx Budget Program Monitoring Certification and Reporting Requirements" and the July 3, 1997 document issued by the administrator titled "Electronic Data Reporting, Acid Rain Program/NOx Budget Program."

(28) Heat input. Heat derived from the combustion of fuel in a budget source. Heat input does not include the heat derived from preheated combustion air, re-circulated flue gas, or exhaust from other sources.

(29) Indirect heat exchanger. Combustion equipment in which the flame and/or products of combustion are separated from any contact with the principal material in the process by metallic or refractory walls. It includes, but is not limited to, steam boilers, vaporizers, melting pots, heat exchangers, column reboilers, fractioning column feed pre-heaters, reactor feed preheaters, fuel fired reactors such as steam hydrocarbon reformer heaters and pyrolysis heaters.

(30) Initially applicable control period. The first control period for which a particular allowance may be deducted for compliance purposes.

(31) NATS - NOx Allowance Tracking System. The computerized system used by the administrator to track the status of every allowance in every account.

(32) New budget source. A budget source that begins operating during the allocation period.

(33) NETS - NOx Emissions Tracking System. The computerized system used by the administrator to track NOx emissions by budget sources.

(34) NYSERDA. The New York State Energy Research and Development Authority.

(35) Opt in. To voluntarily make oneself subject to the terms of this Subpart when one is an owner and/or operator of a major stationary source that does not meet the definition of a budget source.

(36) Opt in baseline control period NOx emissions. A representative average of the actual NOx emissions for two consecutive control periods within the five years preceding the opt in application.

(37) OTC. The Ozone Transport Commission established pursuant to section 184(a) of the Act, 42 U.S.C. section 7511c(a), and section 176A of the Act, 42 U.S.C section 7506a. In addition to the District of Columbia, the OTC consists of the following member states and commonwealths: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont and Virginia.

(38) OTC NOx MOU. The September 27, 1994 Memorandum of Understanding signed by representatives of all the members of the OTC, with the exception of the Commonwealth of Virginia. The OTC NOx MOU commits the signatories to accomplish, in two successive phases, certain NOx emissions reductions within their jurisdictions which go beyond those achieved by the implementation of reasonably available control technology. The "Phase 2" requirements are to be implemented during the 1999 through 2002 control periods; the "Phase 3" requirements are to be implemented from the 2003 control period forward.

(39) OTR. The Ozone Transport Region as designated by section 184(a) of the Act, 42 U.S.C. section 7511c(a).

(40) OTR NOx Budget. The maximum number of allowances which are available to all the signatories to the OTC NOx MOU collectively for allocation to all accounts in the current year.

(41) Quantifiable. A reliable and replicable basis for calculating the amount of emissions reductions that is acceptable to the department and the administrator.

(42) Real. A reduction in emissions, quantified retrospectively, net of any consequential increase in actual emissions due to shifting production.

(43) Recorded (with regard to an allowance transfer or deduction). An account has been updated by the administrator with the details of an allowance transfer or deduction.

(44) Repowering (for the purpose of early reduction allowances).

(i) Qualifying repowering technology as defined by 40 CFR part 72; or

(ii) the replacement of a budget source by either a new combustion source or the purchase of heat or power from the owner and/or operator of a new combustion source, provided that the replacement source:

(a) (regardless of owner and/or operator) is on the same or contiguous property as the budget source being replaced;

(b) has a maximum heat output rate or power output rate that is equal to or greater than the corresponding maximum heat output rate or power output rate of the budget source being replaced; and

(c) incorporates technology capable of controlling multiple combustion pollutants simultaneously with improved fuel efficiency and with significantly greater waste reduction relative to the performance of technology in widespread commercial use as of November 15, 1990.

(45) State NOx Budget. The maximum number of allowances which are available to the department for allocation to all accounts in the current year.

(46) Submitted. Sent to the appropriate authority under the signature of the AAR. For purposes of determining when something is submitted, an official U.S. Postal Service postmark or electronic time stamp shall establish the date of submittal.

(47) Surplus. An emission reduction which is not accounted for in the New York State State Implementation Plan at the time the reduction is made or required by a State or federal permit or order. Emission reductions used as the basis for the generation of emission reduction credits pursuant to Subpart 231-2 of this Title are not surplus.

§227-3.4 State NOx Budget

(a) Except as may be modified in accordance with subdivision (b) of this section, the State NOx Budget for the allocation period is initially set at 46,959 tons for each control period.

(b) The initial State NOxBudget may be modified by the department to account for allowances allocated to opt in sources pursuant to section 227-3.2(b) of this Subpart and early reduction allowances allocated to budget sources during 1999 pursuant to section 227-3.10 of this Subpart. The department will record any modification of the State NOx Budget and submit it to the administrator by March 31, 1999 for the 1999 control period, and by January 30th preceding each later control period. The department must place in the Environmental Notice Bulletin a notice seeking comment on the modification. The comment period shall be for at least 30 days following the publication of the notice in the Environmental Notice Bulletin.

§227-3.5 Allowance allocation

(a) By May 1, 1999, the budget source compliance accounts and department accounts listed below will be allocated the indicated number of allowances for each control period during the allocation period. Each allowance may only be deducted following the start of its initially applicable control period.

Facility Account Allowances
Colonie Cogen 010747000001 60
Brooklyn Navy Yard 054914000001 35
Brooklyn Navy Yard 054914000002 35
Saranac Cogeneration 054574000001 89
Saranac Cogeneration 054574000002 88
Cogen Energy Technology (Fort Orange Paper) 010190000001 115
Encogen Four 010331000001 128
Fibertek Energy LLC 05065100BLR1 740
Fibertek Energy LLC 05065100BLR2 0
Fibertek Energy LLC 05065100BLR3 0
Fibertek Energy LLC 05065100BLR4 0
Fibertek Energy LLC 05065100BLR5 0
Fulton Cogen Assoc Cogen Plant 00256601GTDB 145
Onondaga Cogen 050855000001 36
Onondaga Cogen 050855000002 14
Syracuse University Cogen 054425000001 113
Syracuse University Cogen 054425000002 114
Indeck-Corinth Energy Center 050458000001 64
Indeck-Ilion Energy Center 050459000001 78
Indeck-Olean Energy Center 054076000001 41
Indeck-Oswego Energy Center 050450000001 131
Indeck-Silver Springs Energy Center 050449000001 111
Indeck-Yerkes Energy Center 050451000001 128
Fort Drum HTW Cogeneration Facility 01046400E001 63
Fort Drum HTW Cogeneration Facility 01046400E002 64
Fort Drum HTW Cogeneration Facility 01046400E003 64
Beaver Falls 010617000001 39
Carthage 010620000001 144
Natural Dam 010614000001 147
Syracuse 010621000001 43
South Glens Falls 010618000001 144
KIAC Partners 054114000GT1 30
KIAC Partners 054114000GT2 29
LG&E Westmoreland 0540341GTDBS 46
Lockport 054041011854 144
Lockport 054041011855 144
Lockport 054041011856 144
Canton Cogen 010662000001 103
NissequogueCogen 054149000001 111
Oxbow Power Cogeneration Facility 0541310NTCT1 79
Ogdensburg Energy Facility 010803000001 35
Ogdensburg Energy Facility 010803000002 14
Massena Energy Facility 054592000001 52
Independence Station 054547000001 53
Independence Station 054547000002 53
Independence Station 054547000003 53
Independence Station 054547000004 53
Batavia Energy Facility 054593000001 103
Sterling Energy Facility 050744000001 108
TBG Cogen 050292000GT1 77
TBG Cogen 050292000GT2 76
Trigen-Nassau Energy Corp. 052056000004 172
UDG Goodyear 050202000001 190
E. Syracuse Generating Co., L.P. 05097800000A 25
E. Syracuse Generating Co., L.P. 05097800000B 25
Selkirk Cogen Partners, L.P. 010725CTG101 101
Selkirk Cogen Partners, L.P. 010725CTG201 99
Selkirk Cogen Partners, L.P. 010725CTG301 99
Danskammer Point 002480000001 25
Danskammer Point 002480000002 25
Danskammer Point 002480000003 504
Danskammer Point 002480000004 912
Roseton Generating St. 008006000001 1067
Roseton Generating St. 008006000002 1067
59th Street Steam Station 002503BLR114 47
59th Street Steam Station 002503BLR115 47
59th Street Steam Station 002503CT0001 0
74th Street Generating Station 002504000120 102
74th Street Generating Station 002504000121 102
74th Street Generating Station 002504000122 102
74th Street Generating Station 002504CT0001 1
74th Street Generating Station 002504CT0002 0
Arthur Kill Generating 002490000020 486
Arthur Kill Generating 002490000030 289
Arthur Kill Generating Station 002490CT0001 6
Astoria Generating Station 008906000030 645
Astoria Generating Station 008906000040 537
Astoria Generating Station 008906000050 581
Astoria Generating Station 008906CT0001 5
Astoria Combustion Turbines 008906CT02-1 42
Astoria Combustion Turbines 008906CT02-2 42
Astoria Combustion Turbines 008906CT02-3 42
Astoria Combustion Turbines 008906CT02-4 42
Astoria Combustion Turbines 008906CT03-1 42
Astoria Combustion Turbines 008906CT03-2 41
Astoria Combustion Turbines 008906CT03-3 42
Astoria Combustion Turbines 008906CT03-4 42
Astoria Combustion Turbines 008906CT04-1 42
Astoria Combustion Turbines 008906CT04-2 41
Astoria Combustion Turbines 008906CT04-3 42
Astoria Combustion Turbines 008906CT04-4 42
Astoria Combustion Turbines 008906CT0005 4
Astoria Combustion Turbines 008906CT0007 3
Astoria Combustion Turbines 008906CT0008 4
Astoria Combustion Turbines 008906CT0009 4
Astoria Combustion Turbines 008906CT0010 5
Astoria Combustion Turbines 008906CT0011 4
Astoria Combustion Turbines 008906CT0012 5
Astoria Combustion Turbines 008906CT0013 4
East River Generating 002493000060 518
East River Generating 002493000070 265
Gowanus Combustion Turbines 002494CT01-1 15
Gowanus Combustion Turbines 002494CT01-2 15
Gowanus Combustion Turbines 002494CT01-3 15
Gowanus Combustion Turbines 002494CT01-4 15
Gowanus Combustion Turbines 002494CT01-5 15
Gowanus Combustion Turbines 002494CT01-6 15
Gowanus Combustion Turbines 002494CT01-7 15
Gowanus Combustion Turbines 002494CT01-8 15
Gowanus Combustion Turbines 002494CT02-1 15
Gowanus Combustion Turbines 002494CT02-2 15
Gowanus Combustion Turbines 002494CT02-3 15
Gowanus Combustion Turbines 002494CT02-4 15
Gowanus Combustion Turbines 002494CT02-5 15
Gowanus Combustion Turbines 002494CT02-6 15
Gowanus Combustion Turbines 002494CT02-7 15
Gowanus Combustion Turbines 002494CT02-8 15
Gowanus Combustion Turbines 002494CT03-1 15
Gowanus Combustion Turbines 002494CT03-2 15
Gowanus Combustion Turbines 002494CT03-3 15
Gowanus Combustion Turbines 002494CT03-4 15
Gowanus Combustion Turbines 002494CT03-5 15
Gowanus Combustion Turbines 002494CT03-6 15
Gowanus Combustion Turbines 002494CT03-7 15
Gowanus Combustion Turbines 002494CT03-8 15
Gowanus Combustion Turbines 002494CT04-1 15
Gowanus Combustion Turbines 002494CT04-2 15
Gowanus Combustion Turbines 002494CT04-3 15
Gowanus Combustion Turbines 002494CT04-4 15
Gowanus Combustion Turbines 002494CT04-5 15
Gowanus Combustion Turbines 002494CT04-6 15
Gowanus Combustion Turbines 002494CT04-7 15
Gowanus Combustion Turbines 002494CT04-8 15
Hudson Avenue Steam Station 002496BLR071 82
Hudson Avenue Steam Station 002496BLR072 82
Hudson Avenue Steam Station 002496BLR081 82
Hudson Avenue Steam Station 002496BLR082 82
Hudson Avenue Combustion Turbines 002496CT0003 6
Hudson Avenue Combustion Turbines 002496CT0004 6
Hudson Avenue Combustion Turbines 002496CT0005 6
Indian Point Combustion Turbines 002497CT0001 10
Buchanan Substation Combustion Turbines 004233CT0001 10
Buchanan Substation Combustion Turbines 004233CT0002 4
Ravenswood Generating 002500000010 219
Ravenswood Generating 002500000020 248
Ravenswood Generating 002500000030 1507
Ravenswood Generating Station 002500CT0001 1
Ravenswood Combustion Turbines 002500CT02-1 18
Ravenswood Combustion Turbines 002500CT02-2 19
Ravenswood Combustion Turbines 002500CT02-3 18
Ravenswood Combustion Turbines 002500CT02-4 19
Ravenswood Combustion Turbines 002500CT03-1 18
Ravenswood Combustion Turbines 002500CT03-2 19
Ravenswood Combustion Turbines 002500CT03-3 18
Ravenswood Combustion Turbines 002500CT03-4 19
Ravenswood Combustion Turbines 002500CT0004 1
Ravenswood Combustion Turbines 002500CT0005 1
Ravenswood Combustion Turbines 002500CT0006 2
Ravenswood Combustion Turbines 002500CT0007 1
Ravenswood Combustion Turbines 002500CT0008 10
Ravenswood Combustion Turbines 002500CT0009 9
Ravenswood Combustion Turbines 002500CT0010 10
Ravenswood Combustion Turbines 002500CT0011 9
Ravenswood Steam Station 002500BLR001 38
Ravenswood Steam Station 002500BLR002 37
Ravenswood Steam Station 002500BLR003 37
Ravenswood Steam Station 002500BLR004 37
Waterside Generating 002502000061 111
Waterside Generating 002502000062 111
Waterside Generating 002502000080 122
Waterside Generating 002502000090 119
Narrows Combustion Turbines 002499CT01-1 26
Narrows Combustion Turbines 002499CT01-2 27
Narrows Combustion Turbines 002499CT01-3 26
Narrows Combustion Turbines 002499CT01-4 26
Narrows Combustion Turbines 002499CT01-5 26
Narrows Combustion Turbines 002499CT01-6 26
Narrows Combustion Turbines 002499CT01-7 27
Narrows Combustion Turbines 002499CT01-8 26
Narrows Combustion Turbines 002499CT02-1 26
Narrows Combustion Turbines 002499CT02-2 27
Narrows Combustion Turbines 002499CT02-3 27
Narrows Combustion Turbines 002499CT02-4 26
Narrows Combustion Turbines 002499CT02-5 26
Narrows Combustion Turbines 002499CT02-6 27
Narrows Combustion Turbines 002499CT02-7 27
Narrows Combustion Turbines 002499CT02-8 26
E F Barrett 002511000010 450
E F Barrett 002511000020 350
E F Barrett 002511U00004 15
E F Barrett 002511U00005 15
E F Barrett 002511U00006 15
E F Barrett 002511U00007 15
E F Barrett 002511U00008 15
E F Barrett 002511U00009 15
E F Barrett 002511U00010 15
E F Barrett 002511U00011 15
E F Barrett 002511U00012 25
E F Barrett 002511U00013 25
E F Barrett 002511U00014 25
E F Barrett 002511U00015 25
E F Barrett 002511U00016 25
E F Barrett 002511U00017 25
E F Barrett 002511U00018 25
E F Barrett 002511U00019 25
East Hampton I 002512UGT001 50
Far Rockaway Station 002513000040 143
Glenwood Station 002514000040 135
Glenwood Station 002514000050 135
Glenwood Station 002514U00020 15
Glenwood Station 002514U00021 15
Holtsville 008007U00001 18
Holtsville 008007U00002 18
Holtsville 008007U00003 18
Holtsville 008007U00004 18
Holtsville 008007U00005 18
Holtsville 008007U00006 18
Holtsville 008007U00007 18
Holtsville 008007U00008 18
Holtsville 008007U00009 18
Holtsville 008007U00010 18
Holtsville 008007U00011 19
Holtsville 008007U00012 19
Holtsville 008007U00013 19
Holtsville 008007U00014 19
Holtsville 008007U00015 19
Holtsville 008007U00016 19
Holtsville 008007U00017 19
Holtsville 008007U00018 19
Holtsville 008007U00019 19
Holtsville 008007U00020 19
Northport Power Station 002516UGT001 5
Northport Power Station 002516000001 625
Northport Power Station 002516000002 625
Northport Power Station 002516000003 600
Northport Power Station 002516000004 625
Port Jefferson 002517000001 0
Port Jefferson 002517000002 0
Port Jefferson 002517000003 375
Port Jefferson 002517000004 375
Port Jefferson 002517UGT001 5
Wading River 007146UGT013 10
Wading River 007146UGT014 4
Wading River 007146UGT007 33
Wading River 007146UGT008 33
Wading River 007146UGT009 34
Albany Station 002539000001 70
Albany Station 002539000002 70
Albany Station 002539000003 70
Albany Station 002539000004 70
Dunkirk Station 002554000001 510
Dunkirk Station 002554000002 482
Dunkirk Station 002554000003 825
Dunkirk Station 002554000004 824
CR Huntley 002549000067 942
CR Huntley 002549000068 942
CR Huntley 002549000063 543
CR Huntley 002549000064 543
CR Huntley 002549000065 543
CR Huntley 002549000066 542
Oswego Generating Station 002594000003 0
Oswego Generating Station 002594000004 0
Oswego Generating Station 002594000005 780
Oswego Generating Station 002594000006 174
Goudey Station 002526000011 0
Goudey Station 002526000012 0
Goudey Station 002526000013 396
Greenidge Station 002527000004 0
Greenidge Station 002527000005 0
Greenidge Station 002527000006 376
Hickling Station 002529000001 0
Hickling Station 002529000002 0
Hickling Station 002529000003 0
Hickling Station 002529000004 0
Jennison Station 002531000001 0
Jennison Station 002531000002 0
Jennison Station 002531000003 0
Jennison Station 002531000004 0
Kintgh (Somerset) 006082000001 3949
Milliken Station 002535000001 776
Milliken Station 002535000002 795
Bowline Point 002625000001 713
Bowline Point 002625000002 172
Hillburn 002628000GT1 6
Lovet Generating Station 002629000003 62
Lovet Generating Station 002629000004 1261
Lovet Generating Station 002629000005 1262
Shoemaker 0026320000GT1 15
Richard M Flynn (Holtsville) 007314000001 70
Charles Poletti Power 002491000001 1138
Rochester 3 (Beebee Station) 002640000012 211
Rochester 7 (Russell Station) 002642000001 105
Rochester 7 (Russell Station) 002642000002 172
Rochester 7 (Russell Station) 002642000003 178
Rochester 7 (Russell Station) 002642000004 220
Hudson River Mill 0540880N01PB 120
Ticonderoga Mill 054099000044 226
S A Carlson 002682000009 10
S A Carlson 002682000010 10
S A Carlson 002682000011 0
S A Carlson 002682000012 220
Kodak Park Div 010025000013 258
Kodak Park Div 010025000014 258
Kodak Park Div 010025000015 632
Kodak Park Div 010025000016 76
Kodak Park Div 010025000041 551
Kodak Park Div 010025000042 551
Kodak Park Div 010025000043 705
Kodak Park Div 010025000044 516
American Ref-fuel Niagara 0504720R1B01 158
General Electric - Waterford 880024000018 55
Department New Budget Source Holding Account 250
Department Energy Efficiency Holding Account 115

(b) For any budget source that, on or after November 15, 1992, reduces emissions, consequently creates emission reduction credits pursuant to Part 231 of this Title, and transfers said emission reduction credits as offsets to a source that does not maintain a compliance account in the NATS, the number of allowances allocated to it will be decreased commensurate with the emission reduction credits transferred to the other source. This requirement does not apply if the new or modified source that is receiving emission reduction credits from a budget source contemporaneously files an opt in application with the filing of its application for a permit or permit modification.

(c) Budget sources that cease to operate after the date of allocation will continue to receive allowances for each succeeding control period in the allocation period, unless a request to reallocate allowances has been filed pursuant to section 227-3.8(h) of this Subpart.

(d) Nothing in this Subpart shall be construed to limit the authority of the department to condition, limit, suspend or terminate any allowances or authorization to emit which said allowance represents.

(e) The allowances allocated to the Department New Budget Source Holding Account are subject to the following conditions:

(1) No opt in source can receive allowances from this account.

(2) The owner and/or operator of a new budget source may make a written request to the department to reserve a number of allowances in the account for the new budget source. The reservation request must be submitted by March 1st preceding the first control period of operation for the new budget source. The reservation request must include information detailing the permissible emission rate and maximum heat input capacity of the new budget source.

(3) Subject to the allocation set forth in subdivision (a) of this Subpart, following department approval of the request for reservation of allowances, the department will reserve allowances in the account for each control period remaining in the allocation period in an amount no greater than the number resulting from multiplying the permissible emission rate by the maximum heat input capacity of the new budget source. If more than one new budget source requests the reservation of allowances and the number of requested allowances exceeds the allocation to the account, the department will reserve allowances from the account for the sources in the order in which the sources submitted approvable reservation requests. Should approvable reservation requests be submitted on the same day by different sources, the department will reserve allowances for those sources on a basis proportional to the number of allowances requested by each source.

(4) By October 30th of each year, the department will transfer reserved allowances to the compliance account of the new budget source in an amount no greater than the number resulting from the multiplication of the permissible emission rate and the actual heat input during the current year control period.

(5) A new budget source is not relieved of the requirements of section 227-3.16 of this Subpart or any other provision of this Subpart if it does not receive the number of allowances requested from the account.

(6) If the department does not transfer all of the allocated allowances from the account to the compliance account of a new budget source(s) by November 30th of the current year, the department will transfer the remaining allowances from the account to existing general accounts of the owners and/or operators listed below or their successors or assignees. The share of remaining allowances to be transferred to each of the listed owners and/or operators will be calculated by multiplying the number of remaining allowances by the multiplication factors assigned to the each of the listed owners and/or operators. The department will only transfer allowances in whole ton increments. The department will hold any fractional shares of allowances in the name of the respective owner and/or operator as banked allowances until they may be combined with other fractional shares of allowances in future years and then transferred as whole ton increments.

Owner/Operator Multiplication Factor
Albany Cogen Associates 0.0014
BNY Cogen 0.0017
CalEnergy Company 0.0042
Cogen Energy Technology 0.0027
Enserch Development 0.0030
Fulton Cogen Associates 0.0034
GPU International 0.0066
Indeck 0.0131
Jones/Black River 0.0045
Kamine 0.0129
KIAC 0.0014
LG&E 0.0011
Lockport Energy 0.0102
Megan Racine Associates 0.0024
Nissequogue Cogen Partners 0.0026
Oxbow Power 0.0019
Salt City Gen 0.0175
Sithe 0.0124
TBG Cogen 0.0036
Trigen 0.0041
UDG Goodyear 0.0045
U.S. Generating 0.0083
Central Hudson Gas & Electric 0.0852
Consolidated Edison 0.1967
LILCO 0.1261
Niagara Mohawk 0.1876
New York State Electric & Gas 0.1488
Orange & Rockland 0.0826
Power Authority of the State of New York 0.0286
Rochester Gas & Electric 0.0210

(f) The allowances allocated to the Department Energy Efficiency Holding Account are subject to the following conditions:

(1) Upon receipt by the department of a statement from NYSERDA setting forth the number of tons of accreditable NOx emissions reductions achieved during the current year, the department will transfer a corresponding number of allowances into the general account of NYSERDA.

(2) Accreditable NOx emissions reductions are quantified permanent NOx emissions reductions achieved as a result of implementation of electric energy end-use efficiency measures undertaken through participation in certain energy performance contracting programs established by NYSERDA. The department will, in consultation with NYSERDA and the administrator, determine the methodology for calculating accreditable NOx emissions reductions.

(3) NYSERDA may aggregate accreditable NOx emissions reductions which are achieved at different participating sites in order to form whole ton quantities of reductions.

§227-3.6 General provisions

(a) A budget source that begins operation during the allocation period is required to comply with the terms of this Subpart.

(b) Any person subject to the provisions of this Subpart remains obligated to comply with all other applicable State and federal laws and regulations.

(c) An allowance may only be used to comply with the requirements of this Subpart and may not be used to exceed the limitations of a permit or any other applicable law or regulation.

§227-3.7 Permits

The program established in this Subpart constitutes an applicable requirement as defined in section 201-2.1(b)(5) of this Title that must be accounted for in the budget source's title V facility permit. For any budget source which has already received a title V facility permit as of the effective date of this Subpart, the promulgation of this Subpart constitutes a circumstance warranting a reopening of the permit for cause as described in section 201-6.5(i) of this Subpart. A budget source must follow the procedures applicable to minor permit modifications as set forth in section 201-6.7(c) of this Title and in any relevant department guidance in responding to the reopening of the permit.

§227-3.8 Allowance transfer and use

(a) An allowance may be transferred at any time in accordance with this Subpart.

(b) The use of an allowance after its initially applicable control period is subject to the terms of section 227-3.9 of this Subpart concerning allowance banking.

(c) All allowances shall be allocated, transferred, or used as whole allowances. To determine the number of whole allowances, the number of allowances shall be rounded down for decimals less than 0.5 and rounded up for decimals of 0.5 or greater.

(d) An allowance may only be used for compliance for a particular control period if, at the allowance transfer deadline, it is held in either the budget source's compliance account or compliance overdraft account, or the budget source has submitted the allowance for recording in its compliance account or compliance overdraft account for the preceding control period.

(e) The following procedures must be used to conduct an allowance transfer:

(1) The transfer request must be documented in a paper or electronic format determined by the administrator. The request must be submitted to the administrator and must include, at a minimum, the following information:

(i) the account numbers identifying both the originating account and the acquiring account;

(ii) the name and address of the owners of the originating account and the acquiring account; and

(iii) the serial number for each allowance being transferred.

(2) The transfer request must include a statement of certification signed by the AAR for the originating account. The statement of certification shall read as follows: "I am authorized to make this submission on behalf of the holder(s) of the account and I hereby certify under penalty of law, that I have personally examined the foregoing and am familiar with the information contained in this document and all attachments, and that based on my inquiry of those individuals immediately responsible for obtaining the information, I believe the information is true, accurate and complete. I am aware that there are significant penalties for submitting false information, including possible fines and imprisonment."

(3) The AAR for the originating account shall provide a copy of the transfer request to the AAR for the acquiring account.

(f) Transfer requests will be processed by the administrator in order of receipt. However, throughout the annual account balancing period which begins on January 1st, the administrator will suspend processing of any transfer request for a compliance account or a compliance overdraft account involving an allowance with a previous initially applicable control period. During the account balancing period, the administrator balances allowances in the various accounts in the NATS with corresponding NOx emissions recorded in the NETS. A transfer request for a compliance account or a compliance overdraft account involving an allowance with a future initially applicable control period will be processed during the account balancing period.

(g) An allowance transfer is valid when the following has been verified by the administrator:

(1) each allowance listed in the transfer request is held by the originating account at the time the transfer is to be recorded;

(2) the acquiring party has an account; and

(3) the transfer request has been filed by the AAR for the originating account.

(h) A valid allowance transfer will be recorded by the administrator by deducting the specified allowance from the originating account and adding it to the acquiring account.

(i) The administrator will give notice of a completed allowance transfer to the AAR for the originating account, the AAR for the acquiring account and designated state officials for the states where the acquiring and originating accounts are located. Notification may be made on paper or in electronic form and shall, at a minimum, include:

(1) the effective date of the transfer;

(2) the account numbers for both the originating account and the acquiring account;

(3) the names and addresses of the persons to which the originating and acquiring accounts are assigned; and

(4) the total number of allowances transferred and the serial number of each allowance.

(j) Should the owner and/or operator of a budget source or the holder of a general account determine that some or all allocated allowances should be transferred to another person's account for the remainder of the current allocation period, the AAR of the originating account shall submit to the administrator a transfer request that states this intent. A request for transfer of allowances for the remainder of the allocation period shall conform to the specifications of subdivision (c) of this section. In addition, the request for transfer shall be submitted to the department with a letter requesting that future allowance allocations be made directly to the acquiring account.

§227-3.9 Allowance banking

(a) An allowance may be banked in an account for future use.

(b) By the end of each annual account balancing period, the administrator will determine the total number of banked allowances in all accounts. The resulting number is to be used to determine the number of banked allowances which may be deducted for compliance purposes for the current year control period as follows:

(1) If the total number of banked allowances in all accounts is less than or equal to 10 percent of the OTR's NOx budget for the current year control period, all banked allowances may be deducted for compliance purposes for the current year control period on a 1-for-1 basis.

(2) If the total number of banked allowances in all accounts exceeds 10 percent of the OTR's NOx budget for the current year control period, each compliance account and compliance overdraft account shall be subject to the following banked allowance deduction protocol:

(i) The administrator will calculate a ratio as follows:

.01 times OTR NOx Budget for the current year control period over Number of banked allowances in all NATS accounts

(ii) The ratio calculated in subparagraph (i) of this paragraph, shall be applied by the administrator to the banked allowances in each compliance account and compliance overdraft account. The resulting number is the number of banked allowances in the accounts which can be deducted from the accounts for the current year control period on a 1-for-1 basis. Banked allowances in excess of this number must be deducted on a 2-for-1 basis.

§227-3.10 Early reduction allowances

The department will award early reduction allowances for certified reductions in NOx emissions achieved by a budget source during the control periods in 1997 and/or 1998. The department may certify these reductions and award early reduction allowances, usable in 1999 and thereafter, subject to the following requirements:

(a) The budget source must submit its application for certification of early reductions in NOx emissions within 30 days after the effective date of this regulation.

(b) Certification of early reductions in NOx emissions requires a finding by the department that the reductions are real, quantifiable, and surplus in accordance with the following procedures and any other applicable state regulations.

(c) In order for NOx emissions reductions to be characterized as surplus, the reductions must result from control of a budget source's NOx emission rate below the more stringent of:

(1) for budget sources in Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk and Westchester counties, 0.2 lbs/MMBtu or a 65 percent reduction from the 1990 NOx emission rate, whichever is less stringent; for budget sources in the remainder of the State, 0.2 lbs/MMBtu or a 55 percent reduction from the 1990 NOx emission rate, whichever is less stringent;

(2) the permitted allowable NOx emission rate for the budget source, unless the original budget source operated in 1990 and has since been subject to repowering whereupon the level of control required by paragraph (1) of this subdivision supersedes the permitted allowable emission rate for purposes of establishing early reduction allowances;

(3) the actual emission rate for the 1990 control period; or

(4) if the budget source did not commence operation until after 1990, the actual emission rate for the average of two consecutive control periods that were representative of normal operations and which occurred within the first five years of operation.

(d) In determining the number of early reduction allowances to be awarded, the department shall presume a capacity utilization (in MMBtu) equal to the average capacity utilization of the budget source for the two consecutive control periods immediately preceding the control period for which early reduction allowances are sought to be awarded, adjusted for any reduced capacity utilization which has resulted from shutdown or curtailment of the budget source. The department may allow use of a different set of two consecutive control periods within the five years immediately preceding the control period for which early reduction allowances are sought to be awarded should the owner and/or operator of the budget source demonstrate, to the satisfaction of the department, that the alternative set of two consecutive control periods is more representative of normal operations.

(e) Early reduction allowances may be awarded for repowering of a budget source provided that the permit of the replacement source is issued after the effective date of this rule, and the budget source being replaced ceases operation in 1997 or 1998.

(f) The department will calculate the number of early reduction allowances to be awarded to a particular budget source by taking the difference between the budget source's NOx emission rate derived pursuant to subdivision (c) of this section and the budget source's reduced NOx emission rate achieved during 1997 and/or 1998 and multiplying that figure by the source's capacity utilization derived pursuant to subdivision (d) of this section.

(g) Once the department certifies a budget source's early reductions of NOx emissions and creates early reduction allowances, the department will modify the State NOx Budget to account for the early reduction allowances and will allocate the allowances to the budget source's compliance account by May 1, 1999.

(h) NOx Emissions reductions achieved for purposes of establishing early reduction allowances cannot be used as emission reduction credits as described in Subpart 231-2 of this Part.

(i) By May 1, 1999, the department will produce a report which documents the number of early reduction allowances converted to allowances for use in 1999 and thereafter. The report or notice of availability of the report will be published in the Environmental Notice Bulletin.

§227-3.11 NATS - NOx allowance tracking system

(a) The administrator will establish and maintain the following accounts in the NATS:

(1) compliance accounts;

(2) compliance overdraft accounts;

(3) general accounts;

(4) the Department Retirement Account;

(5) the Department Energy Efficiency Holding Account; and

(6) the Department New Budget Source Holding Account.

(b) Any person may hold a general account. The administrator will open a general account upon receipt of a completed "General Account Information" form.

(c) Each account will have, at a minimum, the following information associated with it:

(1) a unique identification number (the account number);

(2) the name(s) of the account holder;

(3) the names of the AAR and, if applicable, the alternate AAR;

(4) the mailing addresses of the AAR and, if applicable, the alternate AAR;

(5) the phone numbers of the AAR and, if applicable, the alternate AAR;

(6) the street address of the facility at which the budget source(s) is located, if applicable; and

(7) the state in which the budget source(s) is located, if applicable.

(d) Each allowance will have a unique serial number. Each allowance serial number will also indicate the initially applicable control period.

§227-3.12 AARs - authorized account representatives

(a) Each budget source must designate an AAR, and may designate an alternate AAR, for each compliance account and compliance overdraft account.

(b) Each holder of a general account must designate an AAR and may designate an alternate AAR.

(c) The AAR has the authority to manage allowances of an account including the authority to request allowance transfers. The AAR is responsible for all transactions and reports submitted to the NATS and the NETS. The alternate AAR has the same authority as the AAR, however, all correspondence from the administrator shall be directed to the AAR.

(d) The AAR and alternate AAR for a compliance account and/or compliance overdraft account will be officially designated when the administrator receives a completed "Account Certificate of Representation" form. The form constitutes an agreement of representation and contains, at a minimum, the following information:

(1) the name, address, telephone number and facsimile number of both the AAR and the Alternate AAR;

(2) identification of the budget source by plant name, state and unit number for which the certification of representation is submitted;

(3) a list of owners and operators of the budget source; and

(4) the signature of the AAR and alternate AAR below the following statement: "I certify that I, (name), was selected as the Authorized Account Representative or Alternate Authorized Account Representative [as applicable] by an agreement binding on the owners and operators of the budget source legally designated as (plant name) ."

(e) The owner and/or operator of an existing budget source must submit the "Account Certificate of Representation" form to the department within 30 days of the effective date of this Subpart. The department will forward the form to the administrator. A new AAR and/or alternate AAR may be designated with the submittal of a new "Account Certificate of Representation" form. The administrator will confirm the change of AAR and/or alternate AAR once the change is recorded in the NATS.

(f) The AAR and, if applicable, the alternate AAR for a general account will be officially designated when the administrator receives a completed "General Account Information" form.

§227-3.13 Emissions monitoring

(a) General provisions. The owner and/or operator of each budget source subject to this Subpart must comply with the following requirements, as applicable:

(1) NOx mass emissions from each budget source shall be monitored as specified in both this section and the Guidance Document.

(2) A monitoring plan for each existing budget source must be submitted to the department in accordance with the procedures, but not the deadlines, outlined in the Guidance Document. The monitoring plan must be submitted within 30 days of the effective date of this Subpart. For budget sources not subject to 40 CFR part 75, the monitoring plan must include the additional information outlined in paragraph (c)(1) of this section, as appropriate. For any other source that becomes subject to this Subpart , the monitoring plan must be submitted as part of its application for a permit or permit modification, as applicable.

(3) Emissions monitoring systems required by this section shall be installed, operational and meet all of the certification testing requirements in accordance with the procedures outlined in the Guidance Document by May 1, 1999 or the first hour that the budget source is operating during a control period.

(4) Monitoring systems are subject to initial performance testing and periodic calibration, accuracy testing and quality assurance/quality control testing as specified in the Guidance Document.

(5) During a period when valid data are not being recorded by monitoring devices approved for use to demonstrate compliance with this Subpart, missing or invalid data shall be replaced with representative default data in accordance with the provisions of 40 CFR part 75 and the Guidance Document.

(6) NOx emissions data shall be reported to the NETS in accordance with provisions of section 227-3.15 of this Subpart.

(7) Budget sources that commence operation during the allocation period shall begin reporting data in the first hour that the budget source is operating during a control period.

(b) Sources subject to 40 CFR part 75. The owner and/or operator of each budget source subject to 40 CFR part 75 shall demonstrate compliance with this Subpart by using a certified 40 CFR part 75 monitoring system and is subject to the following requirements:

(1) If the budget source has a flow monitor certified under 40 CFR part 75, NOx emissions in lbs/hr shall be determined using a CEMS and the flow monitor and by multiplying together the figures resulting from application of subparagraphs (i) and (ii) of this paragraph:

(i) the NOx emission rate in lbs/MMBtu determined by using the procedure set forth in 40 CFR part 75 appendix F, section 3; and

(ii) the hourly heat input in MMBtu/hr determined by using the procedures set forth in 40 CFR part 75 appendix F, section 5.

(2) If the budget source does not have a certified flow monitor, but does have a CEMS, NOx emissions in lbs/hr shall be determined by multiplying together the figures resulting from application of subparagraphs (i) and (ii) of this paragraph:

(i) the NOx emission rate in lbs/MMBtu determined by using the procedure set forth in 40 CFR part 75 appendix F, section 3; and

(ii) the hourly heat input in MMBtu/hr determined by using the procedures set forth in 40 CFR part 75 appendix D.

(3) If the procedures set forth in 40 CFR Part 75 Appendix E are used to determine the NOx emission rate, NOx emissions in lbs/hr shall be determined by multiplying together the figures resulting from the application of subparagraphs (i) and (ii) of this paragraph:

(i) the NOx emission rate in lbs/MMBtu determined using the procedures set forth in 40 CFR part 75 appendix E.

(ii) the hourly heat input in MMBtu/hr determined using the procedures set forth in 40 CFR part 75 appendix D.

(4) If the procedures set forth in 40 CFR part 75 subpart E are used to determine the NOx emission rate, NOx emissions in lbs/hr shall be determined by multiplying together the figures resulting from the application of subparagraphs (i) and (ii) of this paragraph:

(i) the NOx emission rate in lbs/MMBtu determined using the alternative monitoring method approved under 40 CFR part 75 subpart E; and

(ii) the hourly heat input in MMBtu/hr determined in accordance with the procedures set forth in the Guidance Document.

(5) If the budget source emits to common or multiple stacks, or both, emissions shall be monitored according to the procedures set forth in the Guidance Document.

(c) Sources not subject to 40 CFR part 75. The owner and/or operator of a budget source which is not subject to 40 CFR part 75 shall meet the monitoring requirements of this Subpart by:

(1) Submitting to the department and the administrator a monitoring plan as specified in paragraph (a)(2) of this section which must include the following information, as appropriate:

(i) a description of the monitoring approach to be used;

(ii) a description of the major components of the monitoring system including the manufacturer, serial numbers of the component, the measurement span(s) of the components and documentation to demonstrate that the measurement span of each component is appropriate to measure all of the expected values. This requirement applies to all monitoring systems including CEMS which have not been certified pursuant to 40 CFR part 75;

(iii) an estimate of the accuracy of the system and documentation to demonstrate how the estimate of accuracy was determined;

(iv) a description of the tests that will be used for initial certification, initial quality assurance, periodic quality assurance, and relative accuracy;

(v) if the monitoring system uses a default emission rate or unit specific emission factor, the monitoring plan shall include the following:

(a) All information necessary to support the emission rate including historical monitoring data and historical fuel usage data. If the source plans to conduct emission testing to determine emission rate, the plan must include a test protocol explaining the testing to be conducted.

(b) Procedures which will be utilized to demonstrate that any control equipment in operation during the testing to develop source specific emission factors or during development of load-based emissions curves are in use when those factors or emission curves are applied to calculate NOx emissions.

(c) Alternative uncontrolled emission rates to be used to calculate NOx emissions during periods when control equipment is not being used or is inoperable.

(vi) the following documentation regarding heat input determination, as appropriate:

(a) if the method for determining heat input involves boiler efficiency testing, a description of the test to determine boiler efficiency;

(b) if the method for determining heat input uses fuel sampling, a description of the test to be used in the fuel sampling program;

(c) if the method for determining heat input uses fuel flow meters, the meters shall be certified pursuant to 40 CFR part 75 Appendix D, or equivalent certification methodology;

(vii) as described in the Guidance Document, schematics for the sources, data flow diagrams, and a list of the Electronic Report Record Types used to report quarterly data.

(2) Determining NOx emission rate in lbs/MMBtu using one of the following methods:

(i) Implementing monitoring in accordance with 40 CFR part 75.

(ii) If the budget source is required to have and operate a CEMS to meet the requirements of 40 CFR part 60 or other state requirements or permits, the CEMS must be used to meet the requirements of this paragraph. 40 CFR part 60 monitors used for this purpose shall meet quality assurance criteria as described in the Guidance Document. Any time that a 40 CFR part 60 CEMS cannot be used to report data for this program because it does not meet the requirements of the Guidance Document, missing data shall be substituted using the procedures in 40 CFR part 75 subpart D. In addition, a CEMS that has not undergone initial certification testing to meet the requirements of 40 CFR part 75 or40 CFR part 60 shall meet the initial certification requirements contained in the Guidance Document.

(iii) If the budget source is an oil or gas fired source with a maximum heat input capacity of less than 250 MMBtu/hr or an oil or gas fired peaking source of any size and does not have a CEMS, any of the following methodologies may be used to measure NOx , consistent with the Guidance Document:

(a) for a boiler or a turbine, the procedures contained in 40 CFR part 75 appendix E;

(b) for a combustion turbine, a default emission factor as follows:

(1) 0.7 lb/MMBtu if gas fired;

(2) 1.2 lbs/MMBtu if oil fired; or

(3) the source specific maximum potential NOx emission rate determined through testing performed in accordance with a protocol approved by the department.

(c) for a boiler, a default emission factor as follows:

(1) 2 lbs/MMBtu if oil fired;

(2) 1.5 lbs/MMBtu if gas fired; or

(3) the source specific maximum potential NOx emission rate determined through testing performed in accordance with a protocol approved by the department.

(iv) Any other method authorized in the Guidance Document and approved by the department.

(3) Determining heat input rate using one of the following methods:

(i) If the budget source does not have a flue gas flow monitor, any of the following methods may be used upon department approval:

(a) Use of a flow monitor and a diluent monitor meeting the requirements of 40 CFR part 75 and the procedures set forth in 40 CFR part 75 appendix F section 5;

(b) For a budget source that combusts only oil or natural gas, use of a fuel flow monitor meeting the requirements of 40 CFR part 75 appendix D and the procedures set forth in 40 CFR part 75 appendix F section 5.

(c) For a budget source having a rated capacity with a rated output of less than 25 megawatts or that operates as a peaking unit only, that combusts only oil or natural gas, measuring fuel use over a representative period and calculating the heat input on an hourly basis by apportioning the fuel based on electrical load in accordance with the following formula:

Equation for hourly heat input

(d) For a budget source that combusts any fuel other than oil or natural gas, one of the following alternative methods:

(1) conducting fuel sampling and analysis and monitoring fuel usage;

(2) using boiler efficiency curves and other monitored information such as boiler steam output; and

(3) any other methods approved by the department.

(ii) Alternative methods specified in the Guidance Document and approved by the department, which may be subject to both initial and periodic relative accuracy, and quality assurance testing as accepted by the department.

(4) Determining the NOx emissions in lbs/hr by multiplying the NOx emission rate and heat input rate figures together.

§227-3.14 Recordkeeping

The owner and/or operator of any budget source must, for at least five years, retain records and reports of all measurements, data, calculations and other information required by the terms of this Subpart.

§227-3.15 Reporting

(a) The AAR for each budget source must submit to the administrator, in a format which meets the requirements of the Administrator's Electronic Data Reporting convention, information regarding emissions and operations during each calendar quarter of each year in accordance with the procedures specified in the Guidance Document.

(b) Upon permanent shutdown, a budget source may be exempted from the requirements of this section after receiving written department approval of a request submitted by the AAR for the budget source which identifies the budget source and the date of shutdown.

§227-3.16 Annual reconciliation of allowances and NOx emissions

(a) Each year during the period extending from November 1st through the allowance transfer deadline, the AAR for each budget source may request the administrator to deduct a number of allowances from the budget source's compliance account equal to the current year control period NOx emissions from the budget source. The request must include identification of the compliance account from which the deductions should be made. The request may include the serial numbers of the particular allowances to be deducted. If no serial numbers are included, the administrator will first deduct allowances allocated for the current year control period. If the administrator exhausts all allowances allocated for the current year control period, the administrator will next deduct banked allowances in the compliance account in the order in which they were deposited. The request may only involve allowances placed in the budget source's compliance account; allowances in a compliance overdraft account or general account may not be deducted pursuant to the request.

(b) If, by November 1st of the current year, the total number of allowances in the budget source's compliance account and compliance overdraft account, including allowance transfer requests properly submitted to the administrator, is less than the current year control period NOx emissions from the budget source, the budget source must obtain additional allowances by the allowance transfer deadline so that the total number of allowances in the compliance account and compliance overdraft account, including allowance transfer requests properly submitted to the administrator by the allowance transfer deadline, at least equals the current year control period NOx emissions rounded to the nearest whole ton. The administrator will not consider for compliance purposes allowances contained in any general account held by the owner and/or operator of the budget source.

(c) If, by the allowance transfer deadline, the AAR either makes no allowance deduction request or makes a request that is insufficient to meet the requirements of subdivision (a) of this section, the administrator will deduct a number of allowances from the budget source's compliance account and compliance overdraft account that equals the current year control period NOx emissions from the budget source. Under this subdivision, the administrator will deduct allowances in the following order:

(1) current year allowances from the compliance account in the order in which they were deposited;

(2) banked allowances in the compliance account in the order in which they were deposited;

(3) current year allowances from the compliance overdraft account in the order in which they were deposited; and

(4) banked allowances from the compliance overdraft account in the order in which they were deposited.

(d) Any banked allowances deducted pursuant to this section shall be deducted in accordance with the provisions of section 227-3.9 of this Subpart.

§227-3.17 Compliance certification

(a) By the allowance transfer deadline, the AAR for each budget source must submit a compliance certification to the department relating to the budget source's activities during the current year.

(b) The compliance certification shall contain, at a minimum:

(1) identification of the budget source, including address of the budget source, name and address of the owner and/or operator, account numbers of the relevant compliance account and compliance overdraft account and the name of the AAR;

(2) a statement indicating whether NOx emissions data have been reported to the NETS in accordance with the procedures set forth in section 227-3.15 of this Subpart and any additional procedures established by the administrator;

(3) a statement indicating whether the budget source has a number of allowances in its compliance account or compliance overdraft account equal to or greater than the budget source's NOx emissions for the current year control period;

(4) a statement indicating whether the monitoring data reflected the actual operation of the budget source;

(5) a statement indicating whether all NOx emissions from the budget source were accounted for, either through the relevant monitoring or application of the appropriate missing data procedures; and

(6) a statement indicating whether there were any changes in the method of operation of the budget source or the method of monitoring the budget source during the current year.

(c) The department may verify compliance by whatever means necessary, including, but not limited to, the following:

(1) inspection of budget source operating records;

(2) examining information contained in the NATS regarding allowance deductions and transfers for the budget source;

(3) examining information contained in the NETS regarding NOx emissions from the budget source;

(4) testing emission monitoring devices; and

(5) testing conducted pursuant to Part 202 of this Title.

§227-3.18 Enforcement

(a) The department may enforce the provisions of this Subpart pursuant to any applicable laws or regulations.

(b) If the budget source fails to meet the requirement of section 227-3.16(b) of this Subpart to have a number of allowances in its compliance account and/or compliance overdraft account by the allowance transfer deadline, including allowance transfer requests properly submitted by the allowance transfer deadline, that at least equals the current year control period emissions, the following conditions apply:

(1) For purposes of determining the number of days of violation, the department will presume that each day that the source operated during the control period constitutes a day in violation (up to 153 days) unless the budget source can demonstrate, to the satisfaction of the department, that a lower number of days should be considered.

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

(3) The administrator will automatically deduct allowances from the budget source's compliance account and compliance overdraft account at the start of the next control period at a rate of three allowances for every one ton of excess NOx emissions.

§227-3.19 Program evaluation

(a) The department will, prior to May 1, 2002, complete a report evaluating the program. The evaluation will include the following, as appropriate:

(1) a confirmation of the accuracy of emissions reporting through validation of CEMS and data acquisition systems at budget sources and opt in sources;

(2) a review of allowance transfer and use by budget sources and opt in sources;

(3) an examination of the extent to which banked allowances have contributed to NOx emissions in excess of the State NOx Budget and OTR NOx Budget for each control period preceding the completion of the evaluation;

(4) an assessment of whether the program is consistent with the requirements of the Act; and

(5) analysis of the following concerning the operation of the Department Energy Efficiency Holding Account:

(i) the methodology for calculating accreditable NOx emissions reductions.

(ii) the viability of both increasing the number of allowances allocated to this type of account and transferring allowances to general accounts of entities other than NYSERDA when this Subpart is revised.

(b) The department will consider the evaluation report, similar reports or audits conducted by other OTC members, and any other relevant information in determining how this Subpart will be revised.