R 336.1810 Allowance benchmark apportionments under the oxides of nitrogen (NOx) budget program.

Rule 810. (1) The department shall establish a budget program for the ozone control period for NOx budget units located within the Michigan fine grid zone. Total NOx emission benchmark apportionments are limited to 2,209 tons for each ozone control period. (2) Pursuant to R 336.1802(1), the department shall establish a benchmark apportionment of NOx emissions for each NOx budget unit and source that will be used for comparison to actual NOx emissions from the NOx budget units at the source. The benchmarks will be apportioned and maintained as follows: (a) For NOx budget units that commence operation before May 1, 2020 the sum of the benchmark apportionments will be 1,699 tons, subject to decrease because of unit retirements as described in subdivision (d) of this subrule. (b) For any new NOx budget unit commencing operation after May 1, 2020, the department shall establish a benchmark apportionment from the new unit set-aside pool for each ozone control period. The initial amount of the new unit set aside pool will be 510 tons, subject to increase because of unit retirements as described in subdivision (d) of this subrule. (c) Benchmark apportionments for all NOx budget units and sources are maintained and made available by the department and updated annually by April 1. These benchmark apportionments are established according to the requirements described in subrule subdivisions (a), (b), and (d) of this subrule, and are based on a combination of federally enforceable permit limits, maximum nameplate capacities with an appropriate emission factor, physical limitations, and other attributes of the unit or process as applicable. The department establishes a benchmark apportionment for each active NOx budget unit that is summed by source to create a NOx budget source total benchmark apportionment. Bases for the established benchmark apportionments and adjustments to the amount of the new unit set aside pool and the sum of the benchmark apportionments for NOx budget units that commenced operation before May 1, 2020 are included with the benchmark apportionment information that is made available. (d) The amount of the new unit set- aside pool and the sum of the benchmark apportionments for NOx budget units that commenced operation before May 1, 2020 are updated as appropriate in the following ways: (i) For any new NOx budget unit as described in subdivision (b) of this subrule, the department shall establish a benchmark apportionment for the ozone control period based on a federally enforceable NOx emission limit in a permit to install. The department shall include appropriate monitoring, recordkeeping, and reporting requirements for ozone season NOx emissions within the issued permit. (ii) For a NOx budget unit that commenced operation before May 1, 2020, and that is permanently retired, the responsible official for the NOx budget source shall do 1 of the following: (A) Notify the department’s air quality division within 30 days after the NOx budget unit’s permanent retirement and not emit any NOx from the retired unit starting on the date that the unit is permanently retired. They shall then have its corresponding benchmark apportionments revoked and added to the new unit set aside pool described in subdivision (b) of this subrule at the end of the calendar year unless the facility meets the requirements of subparagraph (B) of this paragraph. The sum of the benchmark apportionments for all NOx budget units that commenced operation before May 1, 2020 shall be reduced accordingly. (B) Identify at the time of retirement of any NOx budget unit that commenced operation before May 1, 2020 if the facility would like to transfer the retired units’ benchmark apportionments to new units installed in the same ozone season. (iii) If ownership of a NOx budget unit is transferred as described in R 336.1219, all associated unit benchmark apportionments transfer with the unit to the new owner. (3) The owner or operator of a NOx budget unit shall monitor and record NOx emissions during the ozone control period using 1 of the following methods: (a) In accordance with 40 CFR part 75 monitoring requirements that include, but are not limited to, data substitution procedures and monitoring and reporting requirements. The owner or operator shall report to the USEPA’s clean air markets division the information required by 40 CFR part 75 and the department the information required in subrule (4) of this rule. If this approach is followed, a responsible official must be authorized to certify each submission and may delegate the responsible official’s authority in accordance with 40 CFR part 97, subpart B, adopted by reference in R 336.1902. (b) The owner or operator may make a request to the department to monitor and record NOx emissions in accordance with methodologies acceptable under 40 CFR part 60. The owner or operator shall submit a monitoring plan to the department to be approved describing how the amount of NOx emissions in tons per ozone control period are determined from the 40 CFR part 60 NOx emission rate data. The owner or operator shall report to the department the information as described in the approved plan and the information in subrule (4) of this rule. (c) The owner or operator of a NOx budget unit that is natural gas-fired and whose NOx mass emissions is 25 tons or less over each of the 3 previous ozone seasons may opt for alternative monitoring and recordkeeping. Except as provided in paragraph (iii) of this subdivision, those choosing this option shall notify the department of their intention before the next ozone season to use the following alternative monitoring and recordkeeping methods: (i) The hourly NOx mass emissions are determined by multiplying a rate in either subparagraph (A) or (B) of this paragraph by the unit's maximum rated hourly heat input, except as allowed in subparagraph (C) of this paragraph: (A) The default NOx emission rate of 1.5 lbs/million Btu for boilers or 0.7 lbs/million Btu for combustion turbines. (B) The maximum NOx emission rate established through stack testing in accordance with 40 CFR 75.19(c)(1)(iv) or a similar stack testing methodology using USEPA reference methods. If this approach is followed, ongoing stack tests must be conducted not less than once every 5 years after the date of the previous stack test for units still in operation. (C) The owner or operator of the NOx budget unit may petition the department to use a lower value for the unit's maximum rated hourly heat input as described in R 336.1802(2)(b)(ii)(C). (ii) The owner or operator of the NOx budget unit shall retain records on site for a period of 5 years. The records must show, as applicable, the hourly NOx mass emissions, hours of operation, hourly volumes of fuel burned and maximum default gross calorific values, continuous emission monitoring system data, and all other information necessary to demonstrate the amount of NOx emitted during the ozone season. (iii) Any NOx budget unit that is natural gas-fired and has less than 3 years of NOx mass emissions of 25 tons or less may petition the department to use alternative monitoring and recordkeeping as allowed in this subdivision. The petition must include all the reasons why the projected NOx emissions for the next ozone season will remain at 25 tons or less. The petition must be approved by the department before using the alternative monitoring and recordkeeping methods described in this subrule. (iv) Any NOx budget unit that is using this alternative monitoring and recordkeeping method and exceeds 25 tons for the ozone season must comply with either subdivision (a) or (b) of this subrule starting with the next ozone season. Once the unit has 3 consecutive years of data showing emissions of 25 tons or less, the owner or operator may request to the department to use the alternative monitoring and recordkeeping methods described in this subdivision before the next ozone season. (4) The owner or operator of a NOx budget unit shall submit to the department all the following information by November 1 each year: (a) The type of each unit subject to this rule with an identifying name or number, or both. (b) The name and address of the plant where the unit is located. (c) The name and telephone number of the responsible official or their authorized representative responsible for demonstrating compliance with this rule. (d) A report documenting, to the satisfaction of the department, each subject unit’s hours of operation, heat input, total NOx emissions for the ozone control period and related materials that include, but are not limited to, the amount of fuel used, types of fuels burned, emission factor verified or revised by most recent stack test, and other information that was used to determine total NOx emissions for the ozone season, as applicable. For the purposes of this rule, this information must be used to determine “actual NOx emissions” for NOx budget units. (e) Following any ozone control period in which a unit located in an area designated as non-attainment for an ozone standard as of the end of the ozone control period exceeds its unit benchmark apportionment, a report documenting, to the satisfaction of the department, a description of reasons for the exceedance of the benchmark and actions taken to meet benchmark apportionment levels in the future. (f) A certification by a responsible official or their authorized representative that states, based on information and belief formed after reasonable inquiry, the statements and information in the report are true, accurate, and complete. (5) Following any ozone control period in which the total actual NOx emissions of all NOx budget units exceed 2,209 tons, both of the following must occur: (a) Each source’s total actual NOx emissions from NOx budget units must be compared to its source total benchmark apportionment as described and established in subrule (2) of this rule. (b) Within 30 days after receipt of a request by the department, each source that was determined to be exceeding its source total benchmark apportionment must submit a report to the department that includes the following: (i) An explanation of the circumstances that caused the source to exceed its benchmark apportionment. (ii) An approvable plan describing what actions will be taken to prevent recurrences. This plan must contain a timeline of all actions to take place in response to the exceedance. (iii) A source exceeding its benchmark apportionment that does not already have a permit to install with federally enforceable NOx emission limits for the ozone season shall apply for and obtain such a permit.