CSR 45-40-42. CAIR NOX Ozone Season Allowance Allocations

§45-40-42. CAIR NOX Ozone Season Allowance Allocations. 42.1. Determination of baseline heat input. -- The baseline heat input (in mmBtu) used with respect to CAIR NOX Ozone Season allowance allocations for units under subsection 42.2 for each CAIR NOX Ozone Season unit will be: 42.1.a. For units commencing operation before January 1, 2001, the average of the 3 highest amounts of the unit’s adjusted ozone season heat input for 2000 through 2004, with the adjusted ozone season heat input for each year calculated as follows: 42.1.a.1. If the unit is coal-fired during the year, or a unit under subsections 4.3 or 4.4, the unit’s ozone season heat input for such year is multiplied by 100 percent; 42.1.a.2. If the unit is oil-fired during the year, the unit’s ozone season heat input for such year is multiplied by 60 percent; and 42.1.a.3. If the unit is not subject to paragraphs 42.1.a.1 or 42.1.a.2, the unit’s ozone season heat input for such year is multiplied by 40 percent. 42.1.b. For units commencing operation on or after January 1, 2001 and operating each calendar year during a period of 5 or more consecutive calendar years: 42.1.b.1. For units under subsection 4.1, the average of the 3 highest amounts of the unit’s total converted ozone season heat input over the first such 5 years; and 42.1.b.2. For units under subsections 4.3 or 4.4, the average of the 3 highest amounts of the unit’s ozone season heat input over the first such 5 years. 42.1.c. A unit’s ozone season heat input, and a unit’s status as coal-fired or oil-fired, for a calendar year under subdivision 42.1.a, and a unit’s total tons of NOX emissions during an ozone season in a calendar year under subdivision 42.3.c, will be determined in accordance with 40 CFR Part 75, to the extent the unit was otherwise subject to the requirements of 40 CFR Part 75 for the year, or will be based on the best available data reported to the Secretary for the unit, to the extent the unit was not otherwise subject to the requirements of 40 CFR Part 75 for the year; and 42.1.d. A unit’s converted ozone season heat input for a calendar year specified under paragraph 42.1.b.1 equals: 42.1.d.1. Except as provided in paragraphs 42.1.d.2 or 42.1.d.3, the ozone season gross electrical output of the generator or generators served by the unit multiplied by 7,900 Btu/kWh, if the unit is coal-fired for the year, or 6,675 Btu/kWh, if the unit is not coal-fired for the year, and divided by 1,000,000 Btu/mmBtu, provided that if a generator is served by 2 or more units, then the gross electrical output of the generator will be attributed to each unit in proportion to the unit’s share of the total ozone season heat input of such units for the year; 42.1.d.2. For a unit that is a boiler and has equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, or cooling purposes through the sequential use of energy, the total heat energy (in Btu) of the steam produced by the boiler during the ozone season, divided by 0.8 and by 1,000,000 Btu/mmBtu; or 42.1.d.3. For a unit that is a combustion turbine and has equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, or cooling purposes through the sequential use of energy, the ozone season gross electrical output of the enclosed device comprising the compressor, combustor, and turbine multiplied by 3,413 Btu/kWh, plus the total heat energy (in Btu) of the steam produced by any associated heat recovery steam generator during the ozone season divided by 0.8, and with the sum divided by 1,000,000 Btu/mmBtu. 42.2. CAIR NOX Ozone Season allowance allocation. 42.2.a. CAIR NOX Ozone Season allowances for electric generating units. -- For each ozone season in 2009 and thereafter, the Secretary will allocate to all CAIR NOX Ozone Season units under subsection 4.1 that have a baseline heat input (as determined under subsection 42.1) a total amount of CAIR NOX Ozone Season allowances equal to 95 percent for an ozone season during 2009 through 2014, and 97 percent for an ozone season during 2015 and thereafter, of the trading budget for EGUs under subsections 40.1 and 40.2 (except as provided in subsection 42.4). 42.2.b. Calculation of CAIR NOX Ozone Season allowance allocation for electric generating units. -- The Secretary will allocate CAIR NOX Ozone Season allowances to each CAIR NOX Ozone Season unit under subdivision 42.2.a in an amount determined by multiplying the total amount of CAIR NOX Ozone Season allowances allocated under subdivision 42.2.a by the ratio of the baseline heat input of such CAIR NOX Ozone Season unit to the total amount of baseline heat input of all such CAIR NOX Ozone Season units in West Virginia and rounding to the nearest whole allowance as appropriate. 42.2.c. CAIR NOX Ozone Season allowances for non-electric generating units. -- For each ozone season in 2009 and thereafter, the Secretary will allocate to all CAIR NOX Ozone Season units under subsections 4.3 or 4.4 that have a baseline heat input (as determined under subsection 42.1) a total amount of CAIR NOX Ozone Season allowances equal to 95 percent of the trading budget for non-EGUs under subsections 40.1 and 40.3 (except as provided in subsection 42.4). 42.2.d. Calculation of CAIR NOX Ozone Season allowance allocation for non-electric generating units. -- The Secretary will allocate CAIR NOX Ozone Season allowances to each CAIR NOX Ozone Season unit under subdivision 42.2.c by the ratio of the baseline heat input of such CAIR NOX Ozone Season unit to the total amount of baseline heat input of all such CAIR NOX Ozone Season units in West Virginia and rounding to the nearest whole allowance as appropriate. 42.3. New unit set-aside allocation. -- For each ozone season in 2009 and thereafter, the Secretary will allocate CAIR NOX Ozone Season allowances to CAIR NOX Ozone Season units in West Virginia that are not allocated CAIR NOX Ozone Season allowances under subsection 42.2 because the units do not yet have a baseline heat input under subsection 42.1 or because the units have a baseline heat input but all CAIR NOX Ozone Season allowances available under subsection 42.2 for the ozone season are already allocated, in accordance with the following procedures: 42.3.a. The Secretary will establish two separate new unit set-asides for each ozone season as follows: 42.3.a.1. New unit set-aside for electric generating units. -- Each new unit set-aside for CAIR NOX Ozone Season units under subsections 4.1 and 42.3 will be allocated CAIR NOX Ozone Season allowances equal to 5 percent for an ozone season in 2009 through 2014, and 3 percent for an ozone season in 2015 and thereafter, of the amount of tons of NOX emissions in the CAIR NOX Ozone Season trading budget for EGUs under subsections 40.1 and 40.2; and 42.3.a.2. New unit set-aside for non-electric generating units. -- Each new unit set-aside for CAIR NOX Ozone Season units under subsections 4.3, 4.4 and 42.3 will be allocated CAIR NOX Ozone Season allowances equal to 5 percent of the amount of tons of NOX emissions in the CAIR NOX Ozone Season trading budget for non-EGUs under subsections 40.1 and 40.3; 42.3.b. The CAIR designated representative of a CAIR NOX Ozone Season unit under subsection 42.3 may submit to the Secretary a request, in a format specified by the Secretary, to be allocated CAIR NOX Ozone Season allowances from a new unit set-aside under paragraph 42.3.a.1 or 42.3.a.2, starting with the later of the ozone season in 2009 or the first ozone season after the ozone season in which the CAIR NOX Ozone Season unit commences commercial operation and until the first ozone season for which the unit is allocated CAIR NOX Ozone Season allowances under subsection 42.2. A separate CAIR NOX Ozone Season allowance allocation request for each ozone season for which CAIR NOX Ozone Season allowances are sought must be submitted on or before February 1 before such ozone season and after the date on which the CAIR NOX Ozone Season unit commences commercial operation; 42.3.c. In a CAIR NOX Ozone Season allowance allocation request under subdivision 42.3.b, the CAIR designated representative may request for an ozone season CAIR NOX Ozone Season allowances in an amount not exceeding the CAIR NOX Ozone Season unit’s total tons of NOX emissions during the ozone season immediately before such ozone season; and 42.3.d. The Secretary will review each CAIR NOX Ozone Season allowance allocation request under subdivision 42.3.b and will allocate CAIR NOX Ozone Season allowances from each new unit set-aside under subdivision 42.3.a for each ozone season pursuant to such request as follows: 42.3.d.1. The Secretary will accept an allowance allocation request only if the request meets, or is adjusted by the Secretary as necessary to meet, the requirements of subdivisions 42.3.b and 42.3.c; 42.3.d.2. On or after February 1 before the ozone season, and for each new unit set-aside under subdivision 42.3.a, the Secretary will separately determine the respective sum of the CAIR NOX Ozone Season allowances requested from the new unit set-asides under paragraphs 42.3.a.1 and 42.3.a.2 (as adjusted under paragraph 42.3.d.1) in all allowance allocation requests accepted under paragraph 42.3.d.1 for the ozone season; 42.3.d.3. If the amount of CAIR NOX Ozone Season allowances in a new unit set-aside under subdivision 42.3.a for the ozone season is greater than or equal to the respective sum under paragraph 42.3.d.2, then the Secretary will allocate the amount of CAIR NOX Ozone Season allowances requested (as adjusted under paragraph 42.3.d.1) to each CAIR NOX Ozone Season unit covered by an allowance allocation request accepted under paragraph 42.3.d.1; 42.3.d.4. If the amount of CAIR NOX Ozone Season allowances in a new unit set-aside under subdivision 42.3.a for the ozone season is less than the respective sum under paragraph 42.3.d.2, then the Secretary will allocate to each CAIR NOX Ozone Season unit covered by an allowance allocation request accepted under paragraph 42.3.d.1 the amount of the CAIR NOX Ozone Season allowances requested (as adjusted under paragraph 42.3.d.1), multiplied by the amount of CAIR NOX Ozone Season allowances in the respective new unit set-aside for the ozone season, divided by the respective sum determined under paragraph 42.3.d.2, and rounded to the nearest whole allowance as appropriate; and 42.3.d.5. The Secretary will notify each CAIR designated representative that submitted an allowance allocation request of the amount of CAIR NOX Ozone Season allowances (if any) allocated for the ozone season to the CAIR NOX Ozone Season unit covered by the request. 42.4. Unallocated new unit set-aside NOX allowances. -- If, after completion of the procedures under subdivision 42.3.d for an ozone season, any unallocated CAIR NOX Ozone Season allowances remain in a new unit set-aside under subdivision 42.3.a for the ozone season, the Secretary will allocate to each CAIR NOX Ozone Season unit an amount of CAIR NOX Ozone Season allowances equal to: 42.4.a. For a CAIR NOX Ozone Season unit that was allocated CAIR NOX Ozone Season allowances under subdivisions 42.2.a and 42.2.b, the total amount of such remaining unallocated CAIR NOX Ozone Season allowances, multiplied by the unit’s allocation under subdivision 42.2.b, divided by 95 percent for an ozone season during 2009 through 2014, and 97 percent for an ozone season during 2015 and thereafter, of the amount of tons of NOX emissions in the CAIR NOX Ozone Season trading budget for EGUs under subsections 40.1 and 40.2, and rounded to the nearest whole allowance as appropriate; and 42.4.b. For a CAIR NOX Ozone Season unit that was allocated CAIR NOX Ozone Season allowances under subdivisions 42.2.c and 42.2.d, the total amount of such remaining unallocated CAIR NOX Ozone Season allowances, multiplied by the unit’s allocation under subdivision 42.2.d, divided by 95 percent of the amount of tons of NOX emissions in the CAIR NOX Ozone Season trading budget for non-EGUs under subsections 40.1 and 40.3, and rounded to the nearest whole allowance as appropriate. 42.4.c. If, after April 30, 2009, any unallocated NOX allowances remain in a new source set-aside established under 45CSR§26-42.4.a or 45CSR§1-42.4.a for the 2008 ozone season, the Secretary will transfer such remaining NOX allowances to the new unit set asides under paragraphs 42.3.a.1 and 42.3.a.2, respectively.