Section NR 409.09 - Acid rain compliance plan and compliance options(1) GENERAL. (a)Acid rain portion of an operation permit application.1. For each affected unit included in the acid rain portion of an operation permit application, a complete compliance plan shall include, for sulfur dioxide emissions, a certification that, as of the allowance transfer deadline, the designated representative shall 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 this section, one or more of the acid rain compliance options.2. A complete compliance plan for NOx shall, for each affected unit included in the permit application and subject to s. NR 409.065, either certify that the unit will comply with the applicable emissions limitation under s. NR 409.065(2), (3) or (4) or specify one or more other acid rain compliance options for NOx in accordance with the requirements of s. NR 409.065.(b)Multi-unit compliance plan option. The compliance plan may include a multi-unit compliance option under sub. (2) or, for nitrogen oxides, under section 407 of the act (42 USC 7651 f) or s. NR 409.065(7). 1. A plan for a compliance option that includes units at more than one affected source shall be complete only if: a. The plan is signed and certified by the designated representative for each source with an affected unit governed by the plan; andb. A complete permit application is submitted covering each unit governed by the plan.2. The department's approval of a plan under subd. 1. that includes units in more than one state shall be final only after every permitting authority with jurisdiction over any 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 this section, any acid rain compliance option for conditional approval; provided that an acid rain compliance option under section 407 of the act (42 USC 7651 f) may be conditionally proposed only to the extent provided in s. NR 409.065. 1. To activate a conditionally-approved acid rain compliance option, the designated representative shall notify the department in writing that the conditionally-approved compliance option shall actually be pursued beginning January 1 of a specified year. Notification shall be subject to the limitations on activation under sub. (2) and s. NR 409.065. If the conditionally-approved compliance option includes a plan described in par. (b) 1., the designated representative of each source governed by the plan shall sign and certify the notification.2. The notification under subd. 1. 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 is not 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 subds. 1. and 2., 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 subds. 1. and 2. shall be treated as an administrative permit revision under s. NR 409.12(4) (a) 1.(d)Termination of compliance option.1. The designated representative for a unit may terminate an acid rain compliance option by notifying the department in writing that an approved compliance option shall be terminated beginning January 1 of a specified year. Notification shall be subject to the limitations on termination under sub. (2) and s. NR 409.065. If the compliance option includes a plan described in par. (b) 1., the designated representative for each source governed by the plan shall sign and certify the notification.2. The notification under subd. 1. shall specify the calendar year for which the termination shall take effect. 3. Upon submission of a notification meeting the requirements of subds. 1. and 2., 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 subds. 1. and 2. shall be treated as an administrative permit revision under s. NR 409.12(4) (a) 6.(2) REPOWERING EXTENSIONS. (a)Applicability.1. This section shall apply to the designated representative of: a. 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.b. Any new unit that is a replacement unit, as provided in par. (b) 2., for a unit meeting the requirements of subd. 1. a. c. Any oil 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 the unit's acid rain emissions limitations for sulfur dioxide.(b)Repowering extension plan. The designated representative of any unit meeting the requirements of par. (a) 1. a. may include in the unit's acid rain portion of an operation permit application a repowering extension plan that includes a demonstration that: 1. The unit shall be repowered with a qualifying repowering technology in order to comply with the emissions limitations for sulfur dioxide; or2. The unit shall 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 shall be permanently retired from service on or before the date on which the new utility unit commences commercial operation.(c)Submittal dates. In order to apply for a repowering extension, the designated representative of a unit under par. (a) shall: 1. Submit to the department, 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 department; and3. If the repowering extension plan is submitted for conditional approval, submit to the department by December 31, 1997, a notification to activate the plan in accordance with sub. (1) (c).(d)Contents of repowering extension plan. A complete repowering extension plan shall be sent to the department and 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 department by January 30, 1996.4. A schedule for construction, installation and commencement of operation of the repowering technology approved or submitted for approval to the administrator under 40 CFR 72.44(d) with dates for the following milestones:a. Completion of design engineering.b. For a plan under par. (b) 1., removal of the existing unit from operation to install the qualified repowering technology.c. Commencement of construction.d. Completion of construction.f. For a plan under par. (b) 2., shutdown of the existing unit.g. Commencement of commercial operation of the repowering technology.5. For a plan under par. (b) 2.: a. Identification of the new unit. A new unit may not be included in more than one repowering extension plan.b. Certification that the new unit shall replace the existing unit.c. Certification that the new unit has the same designated representative as the existing unit.d. Certification that the existing unit shall be permanently retired from service on or before the date the new unit commences commercial operation.6. The special provisions of par. (g).(e)Department's action on repowering extension plan.1. The department may not approve a repowering extension plan until the administrator makes a conditional determination that the technology is a qualified repowering technology, unless the department approves the plan subject to the conditional determination of the administrator. 2.a. 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 department that the plan meets the requirements, the department shall issue the acid rain portion of the operation permit, including the approved repowering extension plan and 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 section are met.b. Except as otherwise provided in par. (f), the repowering extension shall be in effect starting January 1, 2000 and ending on the day before the date specified in the acid rain portion of an operation permit, on which the existing unit shall be removed from operation, to install the qualifying repowering technology, or shall be permanently removed from service for replacement by a new unit with the technology; provided that the repowering extension shall end no later than December 31, 2003.c. The portion of the operation permit specifying the repowering extension and other requirements under subd. 2. a. 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. Allowances shall be allocated in accordance with 40 CFR 72.44(f) (3) and (g).(f)Failed repowering projects.1. If, at any time before the end of the repowering extension under par. (e) 2. b., the designated representative of a unit governed by an approved repowering extension plan submits the notification under s. NR 409.13(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 startup testing, the designated representative may submit to the department a requested significant permit revision demonstrating that the efforts were in good faith. A copy of the requested significant permit revision shall be submitted to the administrator. If the demonstration is to the satisfaction of the administrator, the unit may not be deemed in violation of the act because of a termination and the department shall revise the operation permit in accordance with subd. 2.2. Regardless of whether notification under subd. 1. is given, the repowering extension shall end beginning on the earlier of the date of the notification or the date by which the designated representative was required to give the notification under s. NR 409.13(2) (d). 3. The designated representative of a unit governed by an approved repowering extension plan may submit to the department a proposed significant permit revision demonstrating that the repowering technology specified in the plan was properly constructed and tested on the unit but was unable to achieve the emissions reduction requirements specified in the plan and that it is economically or technologically infeasible to modify the technology to achieve the emission limits. A copy of the requested significant permit revision shall be submitted to the administrator. In order to be properly constructed and tested, the repowering technology shall be constructed at least to the extent necessary for direct testing of multiple combustion emissions, including sulfur dioxide and nitrogen oxides, from the unit while operating the technology at nameplate capacity. If the demonstration is to the satisfaction of the administrator: a. The unit may not be deemed in violation of the act because of the failure to achieve the emissions reduction limitations;b. The department shall revise the acid rain portion of the operation permit in accordance with subd. 3. c. and d.;c. The existing unit may be retrofitted or repowered with another clean coal or other available control technology; andd. The repowering extension shall continue in effect until the earlier of the date the existing unit commences commercial operation with the control technology or December 31, 2003.(g)Special provisions.1.a. Sulfur dioxide allowances allocated during the repowering extension under pars. (e) 3. and (f) to a unit governed by an approved repowering extension plan may not be transferred to any allowance tracking system account other than the unit accounts of other units at the same source as that unit.b. 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 (42 USC 7651 f) and s. NR 409.065 beginning on the date that the unit is removed from operation to install the repowering technology or is permanently removed from service.c. No existing unit governed by an approved repowering extension plan shall be eligible for a waiver under section 111 (j) of the act (42 USC 7411(j)).d. No new unit governed by an approved repowering extension plan shall receive an exemption from the requirements imposed under section 111 of the act (42 USC 7411). 2. Each unit governed by an approved repowering extension plan shall comply with the special reporting requirements of s. NR 409.13(2). 3.a. 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.b. The units governed by the plan under par. (b) 2. shall continue to have a common designated representative until the existing unit is permanently retired under the plan.4. Except as provided in par. (f), a repowering extension plan may not be terminated after December 31, 1999.Wis. Admin. Code Department of Natural Resources NR 409.09
Cr. Register, April, 1995, No. 472, eff. 5-1-95; renum. (1) (a) to be (1) (a) 1., cr. (1) (a) 2. and am. (1) (b) (intro.), (c) (intro.), 1., (d) 1., (2) (f) 1., 3. (intro.) and (g) 1. b., Register, November, 1999, No. 527, eff. 12-1-99.