1 / 17

Clean Air Interstate Rule (CAIR)

Clean Air Interstate Rule (CAIR). CAIR Model Cap and Trade Rules: Common Elements Office of Air and Radiation March 2005. Overview of Presentation. Structure of CAIR model rules General Provisions Definitions, applicability, standard requirements Designated Representative Permits

Télécharger la présentation

Clean Air Interstate Rule (CAIR)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Clean Air Interstate Rule (CAIR) CAIR Model Cap and Trade Rules: Common Elements Office of Air and Radiation March 2005

  2. Overview of Presentation • Structure of CAIR model rules • General Provisions • Definitions, applicability, standard requirements • Designated Representative • Permits • Allocation of Allowances to Units • Allowances and Allowance Transfers • Compliance and Penalties • Allowance Trading • Monitoring and Reporting Emissions • Unit Opt-in Provisions

  3. CAIR Model Rules • EPA has designed 3 model rules that States may choose to use to implement the mandated CAIR reductions • States can participate in one or more of the EPA-administered cap and trade programs • States that wish to participate in the EPA-administered cap and trade programs must use the model rules, with a few exceptions. These exceptions include: • Allocation of CAIR NOx allowances. (Subpart “E”s) • Choice to include the model rule individual unit opt-in provision. (Subpart “I”s) • The model rules parallel the existing NOx SIP Call structure

  4. Structure of Model Rules

  5. General Provisions Subpart “A”s – General Provisions • Definitions • “Designated Representative” must be the same person for Acid Rain and all CAIR rules. • “Excess emissions” is defined as any ton or portion of a ton (in SO2). • Standard Requirements • Condensed version of rule included in permit

  6. Applicability Subpart “A”s – General Provisions • EGUs > 25 MW (nameplate capacity) that burn fossil-fuel and sell electricity unless EGU qualifies for the cogeneration unit exemption. • Fossil fuel means any amount of fossil fuel use (same as ARP but different than SIP Call). • No exemption for Independent Power Producers (different than ARP but same as SIP Call). • Non-EGUs are not affected units although non-EGUs in NOx SIP Call can be brought into CAIR ozone season program.

  7. Applicability Subpart “A”s – General Provisions • Cogen exemption applies to cogeneration units that sell 1/3 or less of their potential electrical output or sell 25 MW or less annually (219,000 kwhr)(same as ARP). • Sell defined on a “net” basis - simultaneous purchase and sales do not count as electricity sold (same as ARP and SIP Call) • Cogeneration unit definition - includes efficiency standard for all fossil fuels including coal (different than ARP and SIP Call which only had efficiency standard for oil and gas units). • 1/3 or less determined on individual year basis as opposed to three-year rolling average used in ARP and SIP Call.

  8. Designated Representatives Subpart “B”s – Designated Representatives • Same individual for all CAIR rules and Acid Rain. • Certification statement aligns with other rules. • No newspaper notice required. • Certificate of Representation submitted directly to EPA.

  9. Permits and Compliance Certification Subpart “C”s – Permits • CAIR permit required for: • Sources required to have a Title V permit • Opt-in sources • Permit application and permit to/from permitting authority • Permit term set by permitting authority Subpart “D”s – Compliance Certification • Used in the NOx SIP Call but reserved in the CAIR model rules and eliminated in Acid Rain.

  10. Allocation of Allowances to Units Subpart “E”s – Allowance Allocations • No allocations for SO2 • Some flexibility in NOx rules (to be covered later)

  11. Compliance and Accounts Subpart “F”s – Allowance Tracking System • General accounts allowed for each CAIR program. • Separate compliance for each CAIR program. • Compliance accounts: • Source level compliance accounts established when source submits Certificate of Representation. • 2010 and beyond allocations transferred into source level accounts by EPA following the establishment of such accounts. • Compliance • Compliance ratios in SO2 (to be discussed later) • Allowance transfer deadline March 1. • Automatic penalties for sources with excess emissions • 3 for 1 penalty • Discretionary penalties may be assessed by the States. • Unrestricted banking in each CAIR program

  12. Allowances and Allowance Transfers Subpart “G”s – Allowance Transfers • Unrestricted trading of allowances within each CAIR program • Allowance transactions • SO2 transfers require signatures of both parties • NOx transfers require only seller signature • EPA-administered electronic data systems • Used in Acid Rain Program and NOx SIP Call. • Undergoing re-engineering prior to CAIR compliance deadlines • “Interpollutant trading” not permitted. • Complexity in determining “trading ratios” • Assuring environmental goals are met.

  13. Monitoring and Reporting Subpart “H”s – Emissions Monitoring and Reporting • Requires Part 75 monitoring for NOx and SO2 • Monitoring and reporting begins one year in advance of the implementation dates. • NOx annual January 1, 2008 • NOx ozone-season May 1, 2008 • SO2 annual January 1, 2009 • Reporting is consolidated. One quarterly report containing all information for applicable programs.

  14. Individual Unit Opt-in Provisions Subpart “I”s – Opt-Ins • States have flexibility to choose to include individual unit opt-in mechanism. • States wishing to include an opt-in mechanism must use the model rule opt-in provisions. • States may choose to allow opt-ins in the annual program, ozone season program, or both. • Applicability: • Boilers, turbines, or other fossil fuel-fired combustion devices that vent all emissions through a stack, and • Meet part 75 emission monitoring and reporting requirements. .

  15. Individual Unit Opt-in Provision • Two approaches units can choose from: • General approach: • Requires 30% reduction from baseline in SO2 and NOx by 2010. No additional reductions required beyond 2010. • Unit may opt-in for one or both pollutants. • Unit may opt-in for different pollutants at different times. • Unit may withdraw after 5 years. • Baselines = average of most recent three-year period of part 75 monitored data or, if not available, one year of part 75 monitored data from the year prior to entering the program. • Allocation method: • NOx = baseline heat input x lesser of 70% of baseline NOx emission rate or most stringent state or federal NOx emission rate applicable in the year unit is being allocated for (the permit limit). • SO2 = baseline heat input x lesser of 70% of baseline SO2 emission rate or the permit limit.

  16. Individual Unit Opt-in Provision • Alternative approach: • Limited to units that repower with qualifying technology, e.g., circulating fluidized bed, IGCC, and others. • Requires no reduction from 2010 - 2014, but requires deeper reductions starting in 2015 than general approach. • Unit may opt-in for one or both pollutants. • Unit may opt-in for different pollutants at different times. • Unit may not withdraw. • Baselines = average of most recent three-year period of part 75 monitored data or, if not available, one year of part 75 monitored data from the year prior to entering the program. • Allocation method: • Through 2014 unit allocated at baseline levels. • 2015 and beyond: • NOx = baseline heat input x lesser of 0.15 lb/mmbtu, the baseline NOx emission rate, or the permit limit. • SO2 = baseline heat input x lesser of the baseline SO2 emission rate x 0.1 (90% reduction), or the permit limit.

  17. Summary • The CAIR model rules mirror the NOx SIP Call rule • Ease transition for sources and regulators • States must use the CAIR model rules if they wish to participate in the regionwide, EPA-administered cap and trade programs. • Regionwide consistency promotes simplicity, efficiency, and transparency • Some flexibility for specified elements of the programs. • Unit-level allocation of NOx allowances. • Inclusion of opt-in mechanism.

More Related