Wis. Admin. Code Department of Natural Resources NR 432.05

Current through October 28, 2024

Section NR 432.05 - CAIR NOx ozone season allowance allocation

The department shall use the procedures in this section for calculating and allocating CAIR NO_x ozone season allowances for CAIR NO_x units and CAIR renewable units.

(1) UNIT BASELINES.

(a)Calculating baseline energy output. The department shall calculate the baseline energy output of each CAIR NO_x unit and each CAIR renewable unit, in MWh according to the following equations as appropriate:

1. For a CAIR NO_x unit that is a cogeneration unit and that has operated for 5 or more consecutive calendar years, by using one of the following equations:

a. Use equation 1a if the unit is the only unit serving a generator or, if more than one unit serves the same generator and unit-level data for equation 9a is available for all units:

See PDF for diagram

where:

B is the unit baseline energy output made available by the cogeneration unit in MWh

GE_avg is the average of the 3 highest annual amounts of the unit's ozone season gross electric output in MWh over the 5-year period identified in par. (b)

TE_avg is the average of the 3 highest annual amounts of the unit's ozone season useful thermal energy in mmBtu over the 5-year period identified in par. (b)

3.4 is a conversion factor in mmBtu/MWh

b. Use equation 9b if more than one unit serves the same generator and unit-level data for equation 9a is not available for all units:

See PDF for diagram

where:

B_i is the baseline energy output made available by cogeneration unit i in MWh

GE_Gen is the average of the 3 highest annual amounts of the ozone season gross electric output in MWh for the generator served over the 5-year period identified in par. (b)

TE_T is the average of the 3 highest annual amounts of ozone season useful thermal energy in mmBtu for the generator served over the 5-year period defined in par. (b)

3.4 is a conversion factor in mmBtu/MWh

NC_i is the nameplate capacity of unit i

n is the number of units serving the same generator

2. For a CAIR NO_x unit that is not a cogeneration unit and that has operated for 5 or more consecutive calendar years and for a CAIR renewable unit that has operated for 5 or more consecutive calendar years, by using one of the following equations as appropriate:

a. Use equation 10a if the unit is the only unit serving a generator or, if more than one unit serves the same generator and unit-level data for equation 10a is available for all units:

B = GE_avg Equation 10a

where:

B is the unit baseline energy output made available by the CAIR NO_x unit or the CAIR renewable unit in MWh

GE_avg is the average of the 3 highest annual amounts of the unit's ozone season gross electric output in MWh over the 5-year period identified in par. (b)

b. Use equation 10b if more than one unit serves the same generator and unit-level data for equation 10a is not available for all units:

- See PDF for diagram Equation 10b

where:

B_i is the baseline energy output made available by CAIR NOx unit i or CAIR renewable unit i in MWh

GE_Gen is the average of the 3 highest annual amounts of the ozone season gross electric output in MWh for the generator served over the 5-year period identified in par. (b)

NC_i is the nameplate capacity of unit i

n is the number of units serving the same generator

(b)Periodic updates of baseline energy output for units with more than 5 years operating data. The department shall use the procedures in this paragraph for calculating the unit baseline energy output for each CAIR NO_x unit or CAIR renewable unit which has more than 5 years of operating data.

1. In 2007, the department shall calculate the baseline energy output for each CAIR NO_x unit for 2009 to 2014 allowances using data for the ozone seasons 2000 to 2004.

2. On or before May 1, 2011, and on or before May 1 of every fifth year thereafter, the department shall calculate the baseline energy output for each CAIR NO_x unit and each CAIR renewable unit for the next 5-year allocation period using data from the 5 ozone season period beginning 9 years before the first year of the allocation period and ending 5 years before the first year of the allocation period.

Note: For example in 2021, unit baseline energy output for the calculation of allocation for 2025 to 2029 allowances will be calculated using ozone season data from the years 2016 to 2020. In 2026, unit baseline energy output for the calculation of the allocation for 2030 to 2034 will be calculated using ozone season data from 2021 to 2025.

(c)Baseline energy output for new units and units achieving 5 years of operating data for the first time. The department shall use the procedures in this paragraph for calculating the unit baseline energy output for each CAIR NO_x unit or CAIR renewable unit which have only 5 years of operating data.

1. On or before May 1, 2011, the department shall calculate the baseline energy output for each CAIR NO_x unit and each CAIR renewable unit that commences operation on or after January 1, 2001 and that has operating data for the years 2006 to 2010 for 2015 to 2019 allowances using data for ozone seasons 2006 to 2010.

2. On or before May 1, 2012, and on or before May 1 of every year thereafter, the department shall calculate the unit baseline energy output for each CAIR NO_x unit and each CAIR renewable unit that has been operating for its first 5 consecutive years, using the first 5 ozone seasons of operating data. Once the unit's baseline energy output has been established, the CAIR NO_x unit or CAIR renewable unit's baseline energy output shall be updated according to par. (b).

Note: Starting in 2011, and every year thereafter, new units that commence operation on or after January 1, 2001 will have their unit baseline energy output calculated once the unit has 5 consecutive years of operating data. The 5 years of data do not have to be full years of data. Once the unit has 5 or more years of operating data, this unit is then incorporated into the state baselines calculated in s. NR 432.03(1m) and receives allocations from the main allocation pool under s. NR 432.03(2). These new units are incorporated into the main allocation pool on a yearly basis.

(d)Baseline energy output for retired units. If a unit is retired in any year, the department shall calculate the baseline energy output according to par. (b). If a unit only operates a portion of the year, the data for that portion shall constitute the unit's data for that year.

Note: The following is an example of how a retired unit's baseline energy output is calculated. A unit is retired in 2011. In 2011, unit baselines are updated using 2006 to 2010 ozone season data that will be used to calculate allocations for 2015 to 2019. For 2015 to 2019 allocations, the retired unit would receive all allowances based upon its unit baseline for 2006 to 2010 ozone season operating data even though it is no longer operating. In 2016, the next unit baseline updating year, the baseline for the unit would be determined using the most recent 5 years of ozone season data, 2011 to 2015. The 2016 updated baseline would be used to determine allocations for 2020 to 2025. If the unit had some operating data in 2011, it would receive minimal allowances in 2020 to 2025 based on the amount of electrical generation in the ozone season in 2011. The next unit update would occur in 2021 and would use 2015 to 2019 ozone season operating data. Since the unit would have no operating data for this time period it would no longer receive allocations. Under this procedure a unit that is retired in 2011 could receive allowances until 2025.

(e)Data used for energy generation baselines. In performing the unit energy output baseline calculations under pars.(a) to (d), the department shall use data reported by the CAIR designated representative to EPA under 40 CFR part 97, Subpart HH and available from the EPA and data reported by the CAIR renewable representative to the department under s. NR 432.07. If the required data is unavailable from the EPA, the department shall request the required data directly from the unit's CAIR designated representative. If the representative does not provide data within 30 days of the department's request, the department shall estimate the unit's baseline energy output using best available data.

(1m) STATE BASELINE.

(a) Prior to 2011, the department shall establish the state baseline by summing the unit baselines calculated according to sub. (1) for all CAIR NO_x units listed in Table 2.

(b) In 2011 and annually thereafter, the department shall calculate an ozone season state baseline by summing the unit baselines calculated according to sub.(1) for all CAIR NO_x units and all CAIR renewable units.

Note: The state baseline is updated starting in 2011 annually to incorporate new units that have 5 years of operating data and have established a baseline under s. NR 432.03(a) and (b). Once a new unit has established a baseline, it is eligible for allowances from the main allocation pool.

(2) ALLOWANCE ALLOCATION FOR UNITS WITH 5 OR MORE YEARS OF OPERATION DATA.

(a) In 2007, and in 2011 and annually thereafter, the department shall allocate to all CAIR NO_x units and CAIR renewable units for which a unit baseline has been calculated under sub. (1), a total amount of CAIR NO_x ozone season allowances equal to 93% of the tons of NO_x emissions in the trading budget for Wisconsin in 40 CFR 97.340.

(b) The department shall allocate CAIR NO_x ozone season allowances to each unit in an amount determined by equation 11:

See PDF for diagram

where:

A_i is the annual allocation of CAIR NO_x ozone season allowances for unit i rounded to the nearest whole ton, adjusted by the department as needed to ensure that the sum of the allowances to all units does not exceed 93% of the trading budget in 40 CFR 97.340

MAP is the main allocation pool of CAIR NO_x ozone season allowances in tons which is the trading budget for Wisconsin in 40 CFR 97.340, minus the new unit set-aside established in sub. (3)

B_i is the unit baseline established under sub. (1) for unit i Bs is the state baseline as determined under sub. (1m)

(3) ALLOCATIONS FOR UNITS WITH LESS THAN 5 YEARS OF OPERATING DATA. In 2009 and annually thereafter, the department shall allocate CAIR NO_x ozone season allowances to CAIR NO_x units for which a request is received under par. (b) and that commenced operation on or after January 1, 2001 and for which a baseline energy output cannot be determined under sub. (1), in accordance with the following procedures:

(a) For 2009 and each year thereafter, the department shall establish a new unit set-aside consisting of all CAIR NO_x ozone season allowances available for new units in that year. The new unit set-aside in each year shall be equal to 7% of the amount of tons of NO_x emissions in the trading budget under 40 CFR 97.340 for Wisconsin.

(b) The CAIR designated representative of a CAIR NO_x unit that commenced operation on or after January 1, 2001, may submit to the department a request to be allocated CAIR NO_x ozone season allowances under this subsection, starting with 2009 or the first calendar year after the calendar year in which the CAIR NO_x unit commences commercial operation, whichever is later, and until the first calendar year for which the unit is eligible for and is allocated CAIR NO_x ozone season allowances under sub. (2). The CAIR NO_x ozone season allocation request shall be submitted on or before May 1 of the calendar year for which the CAIR NO_x ozone season allowances are requested and after the date on which the CAIR NO_x unit commences commercial operation.

(c) In a CAIR NO_x ozone season allocation request under par. (b), the CAIR designated representative may not request CAIR NO_x ozone season allowances exceeding the CAIR NO_x unit's total tons of NO_x emissions during the calendar year immediately before the calendar year of the request.

(d) The department shall review each CAIR NO_x ozone season allocation request submitted under par. (b) and allocate CAIR NO_x ozone season allowances for each calendar year as follows:

1. The department shall establish the maximum amount of new unit set-aside CAIR NO_x ozone season allowances a unit is eligible for based upon a request submitted under par. (b).

2. Before June 1 of each calendar year, the department shall determine the sum of all CAIR NO_x ozone season allowances established under subd. 1. for all new units in the calendar year.

3. If the amount of CAIR NO_x ozone season allowances in the new unit set-aside for the calendar year under par.(a) is greater than or equal to the sum determined under subd. 2., the department shall allocate the amount of CAIR NO_x ozone season allowances determined under subd.1. to each CAIR NO_x unit for which an allocation request was submitted.

4. If the amount of the CAIR NO_x ozone season allowances in the new unit set-aside for the calendar year under par. (a) is less than the sum determined under subd. 2., the department shall allocate to each CAIR NO_x unit for which the department established a maximum amount under subd. 1. greater than zero, an amount determined using equation 12:

See PDF for diagram

where:

N_i is the annual allocation of CAIR NO_x ozone season set-aside allowances for new unit i for the calendar year rounded to the nearest whole ton, adjusted by the department as needed to ensure that the sum of the allowances to all units does not exceed 7% of the trading budget in 40 CFR 97.340

R_i is the amount of CAIR NO_x ozone season allowances the department determined unit i is eligible for under subd. 1.

NUSA is the new unit set-aside established under par. (a)

k is the number of units for which the department established an amount greater than 0 under subd.1.

(e) The department shall notify each CAIR designated representative that submitted an allocation request under par. (b) of the amount of CAIR NO_x ozone season allowances allocated for the calendar year to the CAIR NO_x unit covered by the request.

(4) ALLOCATION OF REMAINING NEW UNIT SET-ASIDE ALLOWANCES. After completion of the procedures under sub. (3), any CAIR NO_x ozone season allowances remaining in the new unit set-aside for the calendar year shall be allocated to the CAIR NO_x units and CAIR renewable units that were allocated CAIR NO_x ozone season allowances under sub. (2) for the calendar year in an amount determined using equation 13:

See PDF for diagram

where:

X_i is the allocation of remaining CAIR NO_x ozone season new unit set-aside ozone season allowances for unit i rounded to the nearest whole ton, adjusted by the department as needed to ensure that the sum of the allowances to all units does not exceed the amount of U

U is the amount of unallocated CAIR NO_x ozone season new unit set-aside allowances in tons

A_i is the annual allocation of CAIR NO_x ozone season allowances for unit i calculated using equation 11

MAP is the main allocation pool of CAIR NO_x ozone season allowances in tons which is the trading budget for Wisconsin in 40 CFR 97.340 minus the new unit set-aside established in sub. (3)

(5) CAIR NO_x ozone season allocations for 2009 to 2014. The CAIR NO_x ozone season allocations for 2009 to 2014 for individual CAIR NO_x units are listed in Table 2.

Table 2

CAIR NO _x Ozone Season Allocations for 2009 to 2014 by CAIR NO _x Unit

(in tons of CAIR NO_x ozone season allowances

Unit Location	Unit Number	2009	2010	2011	2012	2013	2014
Alma	4	93	93	93	93	93	93
Alma	5	128	128	128	128	128	128
Bayfront	1	33	33	33	33	33	33
Bayfront	2	34	34	34	34	34	34
Bayfront	5	55	55	55	55	55	55
Blackhawk	3	7	7	7	7	7	7
Blackhawk	4	7	7	7	7	7	7
Blount Generating Station	3	3	3	3	3	3	3
Blount Generating Station	5	4	4	4	4	4	4
Blount Generating Station	6	6	6	6	6	6	6
Blount Generating Station	7	31	31	31	31	31	31
Blount Generating Station	8	75	75	75	75	75	75
Blount Generating Station	9	91	91	91	91	91	91
Blount Generating Station	11	1	1	1	1	1	1
Columbia	1	1407	1407	1407	1407	1407	1407
Columbia	2	1385	1385	1385	1385	1385	1385
Concord	1	8	8	8	8	8	8
Concord	2	9	9	9	9	9	9
Concord	3	7	7	7	7	7	7
Concord	4	8	8	8	8	8	8
Custer Energy Center	1	0	0	0	0	0	0
De Pere	ALL	62	62	62	62	62	62
Edgewater	3	149	149	149	149	149	149
Edgewater	4	740	740	740	740	740	740
Edgewater	5	963	963	963	963	963	963
Fitchburg	1	2	2	2	2	2	2
Fitchburg	2	2	2	2	2	2	2
French Island	3	2	2	2	2	2	2
French Island	4	2	2	2	2	2	2
Genoa	1	757	757	757	757	757	757
Germantown	30, 31	1	1	1	1	1	1
Germantown	32, 33	1	1	1	1	1	1
Germantown	34, 35	1	1	1	1	1	1
Germantown	36, 37	0	0	0	0	0	0
Germantown	38	15	15	15	15	15	15
Madgett	1	825	825	825	825	825	825
Manitowoc	6	60	60	60	60	60	60
Manitowoc	7	60	60	60	60	60	60
Manitowoc	8	60	60	60	60	60	60
Mirant/ Neenah	1	62	62	62	62	62	62
Mirant/ Neenah	2	60	60	60	60	60	60
Nelson Dewey	1	234	234	234	234	234	234
Nelson Dewey	2	228	228	228	228	228	228
Paris	1	12	12	12	12	12	12
Paris	2	14	14	14	14	14	14
Paris	3	15	15	15	15	15	15
Paris	4	10	10	10	10	10	10
Pleasant Prairie	20	1543	1543	1543	1543	1543	1543
Pleasant Prairie	21	1594	1594	1594	1594	1594	1594
Port Washington	1	108	108	108	108	108	108
Port Washington	2	104	104	104	104	104	104
Port Washington	3	111	111	111	111	111	111
Port Washington	4	94	94	94	94	94	94
Pulliam	3	45	45	45	45	45	45
Pulliam	4	53	53	53	53	53	53
Pulliam	5	114	114	114	114	114	114
Pulliam	6	154	154	154	154	154	154
Pulliam	7	221	221	221	221	221	221
Pulliam	8	314	314	314	314	314	314
Rock River	1	52	52	52	52	52	52
Rock River	2	54	54	54	54	54	54
Rock River	3	0	0	0	0	0	0
Rock River	5	6	6	6	6	6	6
Rock River	6	8	8	8	8	8	8
Sheepskin	1	1	1	1	1	1	1
Sheepskin	2	0	0	0	0	0	0
South Fond du Lac	1	16	16	16	16	16	16
South Fond du Lac	2	14	14	14	14	14	14
South Fond du Lac	3	10	10	10	10	10	10
South Fond du Lac	4	7	7	7	7	7	7
South Oak Creek	25	547	547	547	547	547	547
South Oak Creek	26	513	513	513	513	513	513
South Oak Creek	27	686	686	686	686	686	686
South Oak Creek	28	735	735	735	735	735	735
Stoneman	B1	8	8	8	8	8	8
Stoneman	B2	9	9	9	9	9	9
Valley Boiler 1	21	83	83	83	83	83	83
Valley Boiler 2	22	83	83	83	83	83	83
Valley Boiler 3	23	83	83	83	83	83	83
Valley Boiler 4	24	83	83	83	83	83	83
West Marinette	31	5	5	5	5	5	5
West Marinette	32	3	3	3	3	3	3
West Marinette	33	33	33	33	33	33	33
West Marinette	34	20	20	20	20	20	20
Weston	1	137	137	137	137	137	137
Weston	2	233	233	233	233	233	233
Weston	3	849	849	849	849	849	849
Weston	32	21	21	21	21	21	21
Wheaton	1	5	5	5	5	5	5
Wheaton	2	5	5	5	5	5	5
Wheaton	3	6	6	6	6	6	6
Wheaton	4	4	4	4	4	4	4
Wheaton	5	1	1	1	1	1	1
Wheaton	6	1	1	1	1	1	1
Whitewater Cogen Facility	CTG1	154	154	154	154	154	154
Whitewater Cogen Facility	STG1	68	68	68	68	68	68

Wis. Admin. Code Department of Natural Resources NR 432.05

CR 06-104: cr. Register July 2007 No. 619, eff. 8-1-07.