Section 1200-03-30-.04 - ACID RAIN COMPLIANCE PLAN AND COMPLIANCE OPTIONS (40 CFR PART 72, SUBPART D)(1) General. ( 40 CFR 72.4 )(a) For each affected unit included in an Acid Rain permit application, a complete compliance plan shall include:1. For sulfur dioxide emissions, a certification that, as of the allowance transfer deadline, the designated representative will hold allowances in the unit's compliance subaccount (after deductions under 40 CFR 73.34(c) ) not less than the total annual emissions of sulfur dioxide from the unit. The compliance plan may also specify, in accordance with Rule 1200-3-30-.04, one or more of the Acid Rain compliance options.2. For nitrogen oxides emissions, a certification that the unit will comply with the applicable limitation established by regulations implementing section 407 of the Act or shall specify one or more Acid Rain compliance options, in accordance with section 407 of the Act and regulations implementing section 407.(b) The compliance plan may include a multi-unit compliance option under paragraph 1200-3-30-.04(2) or section 407 of the Act or regulations implementing section 407.1. A plan for a compliance option that includes units at more than one affected source shall be complete only if: (i) Such plan is signed and certified by the designated representative for each source with an affected unit governed by such plan; and(ii) A complete permit application is submitted covering each unit governed by such plan.2. Technical Secretary's approval of a plan under part (b)1 of this paragraph that includes units in more than one State shall be final only after every permitting authority with jurisdiction over any such unit has approved the plan with the same modifications or conditions, if any.(c) Conditional Approval. In the compliance plan, the designated representative of an affected unit may propose, in accordance with Rule 1200-3-30-.04, any Acid Rain compliance option for conditional approval; provided that an Acid Rain compliance option under section 407 of the Act may be conditionally proposed only to the extent provided in regulations implementing section 407 of the Act. 1. To activate a conditionally-approved Acid Rain compliance option, the designated representative shall notify the Technical Secretary in writing that the conditionally-approved compliance option will actually be pursued beginning January 1 of a specified year. Such notification shall be subject to the limitations on activation under paragraph 1200-3-30-.04(2) and regulations implementing section 407 of the Act. If the conditionally approved compliance option includes a plan described in part (b)1 of this paragraph, the designated representative of each source governed by the plan shall sign and certify the notification.2. The notification under part (c)1 of this paragraph shall specify the first calendar year and the last calendar year for which the conditionally approved Acid Rain compliance option is to be activated. A conditionally approved compliance option shall be activated, if at all, before the date of any enforceable milestone applicable to the compliance option. The date of activation of the compliance option shall not be a defense against failure to meet the requirements applicable to that compliance option during each calendar year for which the compliance option is activated.3. Upon submission of a notification meeting the requirements of parts (c)1 and 2 of this paragraph, the conditionally-approved Acid Rain compliance option becomes binding on the owners and operators and the designated representative of any unit governed by the conditionally-approved compliance option.4. A notification meeting the requirements of parts (c)1 and 2 of this paragraph will revise the unit's permit in accordance with paragraph 1200-3-30-.07(4) (administrative permit amendment).(d) Termination of Compliance Option. 1. The designated representative for a unit may terminate an Acid Rain compliance option by notifying the Technical Secretary in writing that an approved compliance option will be terminated beginning January 1 of a specified year. Such notification shall be subject to the limitations on termination under paragraph 1200-3-30-.04(2) and regulations implementing section 407 of the Act.If the compliance option includes a plan described in part (b)1 of this paragraph, the designated representative for each source governed by the plan shall sign and certify the notification.2. The notification under part (d)1 of this paragraph shall specify the calendar year for which the termination will take effect.3. Upon submission of a notification meeting the requirements of parts (d)1 and 2 of this paragraph, the termination becomes binding on the owners and operators and the designated representative of any unit governed by the Acid Rain compliance option to be terminated.4. A notification meeting the requirements of parts (d)1 and 2 of this paragraph will revise the unit's permit in accordance with paragraph 1200-3-30-.07(4) (administrative permit amendment).(2) Repowering extensions. ( 40 CFR 72.44 )(a) Applicability.1. This paragraph shall apply to the designated representative of:(i) Any existing affected unit that is a coal-fired unit and has a 1985 actual SO2 emissions rate equal to or greater than 1.2 lbs/mmBtu; or(ii) Any new unit that will be a replacement unit, as provided in part (b)2 of this paragraph, for a unit meeting the requirements of subpart (a)1(i) of this paragraph; or(iii) Any oil and/or gas-fired unit that has been awarded clean coal technology demonstration funding as of January 1, 1991 by the Secretary of Energy.2. A repowering extension does not exempt the owner or operator for any unit governed by the repowering plan from the requirement to comply with such unit's Acid Rain emissions limitations for sulfur dioxide.(b) The designated representative of any unit meeting the requirements of subpart (a)1(i) of this paragraph may include in the unit's Acid Rain permit application a repowering extension plan that includes a demonstration that: 1. The unit will be repowered with a qualifying repowering technology in order to comply with the emissions limitations for sulfur dioxide; or2. The unit will be replaced by a new utility unit that has the same designated representative and that is located at a different site using a qualified repowering technology and the existing unit will be permanently retired from service on or before the date on which the new utility unit commences commercial operation.(c) In order to apply for a repowering extension, the designated representative of a unit under subparagraph (a) of this paragraph shall:1. Submit to the Technical Secretary, by January 1, 1996, a complete repowering extension plan;2. Submit to the Administrator before June 1, 1997, a complete petition for approval of repowering technology in accordance with 40 CFR 72.44(d) and submit a copy to the Technical Secretary; and3. If the repowering extension plan is submitted for conditional approval, submit to the Technical Secretary by December 31, 1997, a notification to activate the plan in accordance with subparagraph 1200-3-30-.04(1)(c).(d) Contents of Repowering Extension Plan. A complete repowering extension plan shall include the following elements: 1. Identification of the existing unit governed by the plan.2. The unit's federally-approved State Implementation Plan sulfur dioxide emissions limitation.3. The unit's 1995 actual SO2 emissions rate, or best estimate of the actual emissions rate; provided that the actual emissions rate is submitted to the Technical Secretary by January 30, 1996.4. A schedule for construction, installation, and commencement of operation of the repowering technology approved or submitted for approval under 40 CFR 72.44(d) with dates for the following milestones:(i) Completion of design engineering;(ii) For a plan under part (b)1 of this paragraph, removal of the existing unit from operation to install the qualified repowering technology;(iii) Commencement of construction;(iv) Completion of construction;(vi) For a plan under part (b)2 of this paragraphn, shutdown of the existing unit; and(vii) Commencement of commercial operation of the repowering technology.5. For a plan under part (b)2 of this paragraph;(i) Identification of the new unit. A new unit shall not be included in more than one repowering extension plan.(ii) Certification that the new unit will replace the existing unit.(iii) Certification that the new unit has the same designated representative as the existing unit.(iv) Certification that the existing unit will be permanently retired from service on or before the date the new unit commences commercial operation.6. The special provisions of subparagraph (g) of this paragraph.(e) Technical Secretary's Action on Repowering Extension Plan. 1. The Technical Secretary will not approve a repowering extension plan until the Administrator makes a conditional determination that the technology is a qualified repowering technology, unless the Technical Secretary approves such plan subject to the conditional determination of the Administrator.2. Permit Issuance. (i) Upon a conditional determination by the Administrator that the technology to be used in the repowering extension plan is a qualified repowering technology and a determination by the Technical Secretary that such plan meets the requirements of this section, the Technical Secretary will issue the Acid Rain portion of the operating permit including: (I) The approved repowering extension plan; and(II) A schedule of compliance with enforceable milestones for construction, installation, and commencement of operation of the repowering technology and other requirements necessary to ensure that emission reduction requirements under this paragraph will be met.(ii) Except as otherwise provided in subparagraph (f) of this paragraph, the repowering extension shall be in effect starting January 1, 2000 and ending on the day before the date (specified in the Acid Rain permit) on which the existing unit will be removed from operation to install the qualifying repowering technology or will be permanently removed from service for replacement by a new unit with such technology; provided that the repowering extension shall end no later than December 31, 2003.(iii) The portion of the operating permit specifying the repowering extension and other requirements under subpart (e)2(i) of this paragraph shall be subject to the Administrator's final determination, under 40 CFR 72.44(d)(4), that the technology to be used in the repowering extension plan is a qualifying repowering technology.3. Allowance Allocation. Allowances will be allocated in accordance with 40 CFR 72.44(f)(3) and (g).(f) Failed Repowering Projects. 1.(i) If, at any time before the end of the repowering extension under subpart (e)2(ii) of this paragraph, the designated representative of a unit governed by an approved repowering extension plan submits the notification under subparagraph 1200-3-30-.08(2)(d) that the owners and operators have decided to terminate efforts to properly design, construct, and test the repowering technology specified in the plan before completion of construction or start-up testing, the designated representative may submit to the Technical Secretary a proposed permit modification demonstrating that such efforts were in good faith. If such demonstration is to the satisfaction of the Administrator, the unit shall not be deemed in violation of the Act because of such a termination and the Technical Secretary will revise the operating permit in accordance with subpart (f)1(ii) of this paragraph.(ii) Regardless of whether notification under subpart (f)(1)(i) of this paragraph is given, the repowering extension will end beginning on the earlier of the date of such notification or the date by which the designated representative was required to give such notification under subparagraph 1200-3-30-.08(2)(d).2. The designated representative of a unit governed by an approved repowering extension plan may submit to the Technical Secretary a proposed permit modification demonstrating that the repowering technology specified in the plan was properly constructed and tested on such unit but was unable to achieve the emissions reduction limitations specified in the plan and that it is economically or technologically infeasible to modify the technology to achieve such limits, the unit shall not be deemed in violation of the Act because of such failure to achieve the emissions reduction limitations. In order to be properly constructed and tested, the repowering technology shall be constructed at least to the extent necessary for direct testing of the multiple combustion emissions (including sulfur dioxide and nitrogen oxides) from such unit while operating the technology at nameplate capacity. If such demonstration is to the satisfaction of the Administrator, (i) The unit shall not be deemed in violation of the Act because of such failure to achieve the emissions reduction limitations;(ii) The Technical Secretary will revise the Acid Rain portion of the operating permit in accordance with subparts (f)2 (ii) and (iii) of this paragraph.(iii) The existing unit may be retrofitted or repowered with another clean coal or other available control technology; and(iv) The repowering extension will continue in effect until the earlier of the date the existing unit commences commercial operation with such control technology or December 31, 2003.(g) Special Provisions. 1. Emissions Limitations. (i) Sulfur Dioxide. Allowances allocated during the repowering extension under part (e)2 and subparagraph (f) of this paragraph to a unit governed by an approved repowering extension plan shall not be transferred to any Allowance Tracking System account other than the unit accounts of other units at the same source as that unit.(ii) Nitrogen Oxides. Any existing unit governed by an approved repowering extension plan shall be subject to the Acid Rain emissions limitations for nitrogen oxides in accordance with section 407 of the Act and regulations implementing section 407 of the Act beginning on the date that the unit is removed from operation to install the repowering technology or is permanently removed from service.(iii) No existing unit governed by an approved repowering extension plan shall be eligible for a waiver under section 111(j) of the Act.(iv) No new unit governed by an approved repowering extension plan shall receive an exemption from the requirements imposed under section 111 of the Act.2. Reporting Requirements. Each unit governed by an approved repowering extension plan shall comply with the special reporting requirements of paragraph 1200-3-30-.08(2).3. Liability. (i) The owners and operators of a unit governed by an approved repowering plan shall be liable for any violation of the plan or this section at that or any other unit governed by the plan,(ii) The units governed by the plan under part (b)2 of this paragraph shall continue to have a common designated representative until the existing unit is permanently retired under the plan.4. Terminations. Except as provided in subparagraph (f) of this paragraph, a repowering extension plan shall not be terminated after December 31, 1999.Tenn. Comp. R. & Regs. 1200-03-30-.04
Original rule filed June 30, 1994; effective September 15, 1994.Authority: T.C.A. §§ 668-201-105 and 4-5-202.