Ala. Admin. Code r. 335-3-8-.71

Current through Register Vol. 42, No. 11, August 30, 2024

Section 335-3-8-.71 - NOx Budget Program

(1)Purpose. The following rule establishes general provisions and the applicability, monitoring and reporting provisions for the NOx Budget Program for Alabama's State Implementation Plan as a means of mitigating the interstate transport of ozone and nitrogen oxides pursuant to 40 CFR, § 51.121 and 51.122.

(2)Definitions. For the purpose of this rule and rule 335-3-8-.72, the following definitions will apply:

(a) "Account Certificate of Representation" means the completed and signed designation of a NOx Authorized Account Representative for a NOx Budget source or a group of identified NOx Budget sources who is authorized to represent the owners and operators of such source or sources and of the NOx Budget units at such source or sources with regard to matters under the NOx Budget Program. A complete account certificate of representation shall include:

1. Identification of the NOx Budget source and each NOx Budget unit at the source for which the account certificate of representation is submitted.

2. The name, address, e-mail address, and telephone number of the NOx authorized account representative and any alternate NOx authorized account representative.

3. A list of the owners and operators of the NOx Budget source and of each NOx Budget unit at the source.

4. The following certification statement by the NOx authorized account representative and any alternate NOX authorized account representative: "I certify that I was selected as the NOX authorized account representative or alternate NOx authorized account representative, as applicable, by an agreement binding on the owners and operators of the NOx Budget source and each NOx Budget unit at the source. I certify that I have all the necessary authority to carry out my duties and responsibilities under the NOx Budget Program on behalf of the owners and operators of the NOx Budget source and of each NOx Budget unit at the source and that each such owner and operator shall be fully bound by my representations, actions, inactions, or submissions and by any decision or order issued to me by the Department, the Administrator, or a court regarding the source or unit."

5. The signature of the NOx authorized account representative and any alternate NOX authorized account representative and the dates signed.

(b) "Administrator" means the Administrator of the United States Environmental Protection Agency or the Administrator's duly authorized representative.

(c) "Boiler" means an enclosed fossil or other fuel-fired combustion device used to produce heat and to transfer heat to recirculating water, steam, or other medium.

(d) "CAA" means the CAA, 42 U.S.C. 7401, et seq., as amended by Pub. L. No. 101-549(November 15, 1990).

(e) "Cogeneration Combined Cycle System" means a combined cycle system that has equipment used to produce electricity and forms of useful thermal energy (such as heat or steam) for industrial, commercial, heating, or cooling purposes through the sequential use of energy.

(f) "Combined Cycle System" means a system comprised of one or more combustion turbines, heat recovery steam generators, and steam turbines configured to improve overall efficiency of electricity generation or steam production.

(g) "Combustion Turbine" means an enclosed fossil or other fuel-fired device that is comprised of a compressor, a combustor, and a turbine, and in which the flue gas resulting from the combustion of fuel in the combustor passes through the turbine, rotating the turbine.

(h) "Commence Operation" means to have begun any mechanical, chemical, or electronic process, including, with regard to a unit, start-up of a unit's combustion chamber. Except as provided in paragraph (5) of this rule, for a unit that is a NOx Budget unit under paragraph (4) of this rule on the date of commencement of operation, such date shall remain the unit's date of commencement of operation even if the unit is subsequently modified, reconstructed, or repowered. Except as provided in paragraph (5) of this rule for a unit that is not a NOx Budget unit under paragraph (4) of this rule on the date of commencement of operation, the date the unit becomes a NOx Budget unit under paragraph (4) of this rule shall be the unit's date of commencement of operation.

(i) " Compliance Certification" means a submission to the Department or the Administrator, as appropriate, that is required under rule 335-3-8-.72 to report a NOx Budget source's or a NOx Budget unit's compliance or noncompliance with this rule and that is signed by the NOx authorized account representative in accordance with this rule.

(j) "Continuous Emission Monitoring System or CEMS" means the equipment required to sample, analyze, measure, and provide, by readings taken at least once every 15 minutes of the measured parameters, a permanent record of nitrogen oxides emissions, expressed in tons per hour for nitrogen oxides. A CEMS may include any or all of the following components:

1. Flow monitor;

2. Nitrogen oxides pollutant concentration monitors;

3. Diluent gas monitor (oxygen or carbon dioxide) when such monitoring is required;

4. A continuous moisture monitor when such monitoring is required; or

5. An automated data acquisition and handling system.

(k) "Control Period" means the period of ozone season, beginning May 1 of a year and ending on September 30 of the same year, inclusive.

(l) "Department" means the Alabama Department of Environmental Management.

(m) "Emissions" means air pollutants exhausted from a unit or source into the atmosphere, as measured, recorded, and reported to the Department.

(n) "Fossil Fuel" means natural gas, petroleum, coal, or any form of solid, liquid, or gaseous fuel derived from such material.

(o) "Fossil fuel-fired" with regard to a unit, means:

1. The combustion of fossil fuel, alone or in combination with any other fuel, where fossil fuel actually combusted comprises more than 50 percent of the annual heat input on a Btu basis during any year starting in 1995 or, if a unit had no heat input starting in 1995, during the last year of operation of the unit prior to 1995; or

2. The combustion of fossil fuel, alone or in combination with any other fuel, where fossil fuel is projected to comprise more than 50 percent of the annual heat input on a Btu basis during any year; provided that the unit shall be "fossil fuel-fired'' as of the date, during such year, on which the unit begins combusting fossil fuel.

(p) "Generator" means a device that produces electricity.

(q) "Heat Input" means the product (in mmBtu/time) of the gross calorific value of the fuel (in Btu/lb) and the fuel feed rate into a combustion device (in mass of fuel/time), and does not include the heat derived from preheated combustion air, recirculated flue gases, or exhaust from other sources.

(r) "Maximum Design Heat Input" means the ability of a unit to combust a stated maximum amount of fuel per hour on a steady state basis, as determined by the physical design and physical characteristics of the unit.

(s) "Monitoring System" means any monitoring system that meets the requirements of rule 335-3-8-.72.

(t) "Nameplate Capacity" means, starting from the initial installation of a generator, the maximum electrical generating output (in MWe) that the generator is capable of producing on a steady state basis and during continuous operation (when not restricted by seasonal or other deratings) as of such installation as specified by the manufacturer of the generator or, starting from the completion of any subsequent physical change in the generator resulting in an increase in the maximum electrical generating output (in MWe) that the generator is capable of producing on a steady state basis and during continuous operation (when not restricted by seasonal or other deratings), such increased maximum amount as of such completion as specified by the person conducting the physical change.

(u) "NOx Authorized Account Representative" means, for a NOx budget source or NOx budget unit at the source, a responsible person or official who is authorized by the owner and operator of the source and all NOx budget units at the source to represent and legally bind each owner and operator in matters pertaining to the NOx Budget Program. The NOx Authorized Account Representative shall be the responsible official as defined under this rule and the NOx Authorized Account Representative shall act as the designated representative for any sources that continue to monitor and report NOx mass emissions under 40 CFR 75.

(v) "NOx Budget Source" means a source that includes one or more NOx Budget units.

(w) "NOx Budget Unit" means a unit that is subject to the NOx Budget Program emissions limitations under paragraph (4) of this rule.

(x) "Operator" means any person who operates, controls, or supervises a NOx Budget unit or a NOx Budget source and shall include, but not be limited to, any holding company, utility system, or plant manager of such a unit or source.

(y) "Owner" means any of the following persons:

1. Any holder of any portion of the legal or equitable title in a NOx Budget unit; or

2. Any holder of a leasehold interest in a NOx Budget unit.

(z) "Ozone Season" means, for the purpose of this rule, as well as rule 335-3-8-.72, the period of time beginning May 1 of a year and ending on September 30 of the same year, inclusive.

(aa) "Receive or Receipt of" means, when referring to the Department or the Administrator, to come into possession of a document, information, or correspondence (whether sent in writing or by authorized electronic transmission), as indicated in an official correspondence log, or by a notation made on the document, information, or correspondence, by the Department or the Administrator in the regular course of business.

(bb) "Reference Method" means any direct test method of sampling and analyzing for an air pollutant or diluent as specified in 40 CFR 60, Appendix A [incorporated by reference in ADEM Admin. Code r. 335-3-10-.03(1)] .

(cc) "Responsible Official" means one of the following:

1. For a corporation: a president, secretary, treasurer, or vice-president of the corporation in charge of a principal business function, or any other person who performs similar policy or decision-making functions for the corporation, or a duly authorized representative of such person if the representative is responsible for the overall operation of one or more manufacturing, production, or operating facilities applying for or subject to a permit and either:

(i) The facilities employ more than 250 persons or have gross annual sales or expenditures exceeding $25 million (in second quarter 1980 dollars); or

(ii) The delegation of authority to such representatives is approved in advance by the Department;

2. For a partnership or sole proprietorship: a general partner or the proprietor, respectively;

3. For a municipality, State, Federal, or other public agency: Either a principal executive officer or ranking elected official. For the purposes of this chapter, a principal executive officer of a Federal agency includes the chief executive officer having responsibility for the overall operations of a principal geographic unit of the agency (e.g., a Regional Administrator of EPA).

(dd)"Source" means any governmental, institutional, commercial, or industrial structure, installation, plant, building, or facility that emits or has the potential to emit any regulated air pollutant under the CAA. For purposes of paragraph 502(c) of the CAA, a "source", including a "source" with multiple units, shall be considered a single "facility".

(ee) "State" means the State of Alabama, the Environmental Management Commission, and the Commission's representatives.

(ff) "State of Alabama NOx Budget" means the total number of tons of NOx apportioned to all NOx Budget units in the State, in accordance with the NOx Budget Program, for use in a given control period.

(gg) "Submit or Serve" means to send or transmit a document, information, or correspondence to the person specified in accordance with the applicable regulation in person, by United States Postal Service, or by other means of dispatch or transmission and delivery. Compliance with any "submission", "service", or "mailing" deadline shall be determined by the date of dispatch, transmission, or mailing and not the date of receipt.

(hh)"Ton or Tonnage" means any "short ton" (i.e., 2,000 pounds). For the purpose of reporting ozone season NOx emissions from NOx Budget sources, total tons for a control period shall be calculated in accordance with 335-3-8-.72, with any remaining fraction of a ton equal to or greater than 0.50 ton deemed to equal one ton and any fraction of a ton less than 0.50 ton deemed to equal zero tons.

(ii) " Unit" means a fossil fuel-fired stationary boiler, combustion turbine, combined cycle system, or cogeneration combined cycle system.

(3)Measurements, Abbreviations, and Acronyms. Measurements, abbreviations, and acronyms used in this rule and in rule 335-3-8-.72 are defined as follows:

(a) Btu - British thermal unit.

(b) hr - hour.

(c) lb - pounds.

(d) mmBtu - million Btu.

(e) mmscf - million standard cubic feet

(f) MWe - megawatt electrical.

(g) ppmw - parts per million concentration, on a wet basis

(h) ton - 2000 pounds.

(i) NOx - nitrogen oxides.

(4)Applicability.

(a) The following units in the counties of Autauga, Bibb, Blount, Calhoun, Chambers, Cherokee, Chilton, Clay, Cleburne, Colbert, Coosa, Cullman, Dallas, Dekalb, Elmore, Etowah, Fayette, Franklin, Greene, Hale, Jackson, Jefferson, Lamar, Lauderdale, Lawrence, Lee, Limestone, Macon, Madison, Marion, Marshall, Morgan, Perry, Pickens, Randolph, Russell, Shelby, St. Clair, Sumter, Talladega, Tallapoosa, Tuscaloosa, Walker, and Winston shall be NOx Budget units, and any source that includes one or more such units shall be a NOx Budget source, subject to the requirements of this rule:

1. Any fossil fuel fired unit with a maximum design heat input greater than 250 mmBtu/hr that either:

(i) does not serve a generator producing electricity for sale; or

(ii) both serves a generator producing electricity (whether or not for sale) and produces useful thermal energy (such as heat or steam for industrial, commercial, heating, or cooling purposes) shall be a NOx Budget unit from the time it commences operation.

(5) The following units shall be exempt from the requirements of the NOx Budget Program:

(a) Any unit subject to ADEM Admin. Code r. 335-3-8-.40 shall not be a NOx Budget unit.

(b) Any NOx Budget unit that is permanently retired shall be exempt from the NOx Budget Program, except for the provisions of this paragraph.

1. The exemption under subparagraph (b) of this paragraph shall become effective the day on which the unit is permanently retired. Within 30 days of permanent retirement, the NOx authorized account representative shall submit a statement to the Department. A copy of the statement shall be submitted to the EPA. The statement shall state (in a format prescribed by the Department) that the unit is permanently retired and will comply with the requirements of rule 335-3-8-.71(5). After receipt of the notice under this subparagraph, the Department will amend any permit covering the source at which the unit is located to add the provisions and requirements of the exemption under subparagraph (c) of this paragraph.

(c)Special provisions.

1. A unit exempt under this paragraph shall not emit any nitrogen oxides, starting on the date that the exemption takes effect.

2. The owners and operators and, to the extent applicable, the NOx authorized account representative of a unit exempt under this paragraph shall comply with the requirements of the NOx Budget Program concerning all periods for which the exemption is not in effect, even if such requirements arise, or must be complied with, after the exemption takes effect.

3. For a period of 5 years from the date the records are created, the owners and operators of a unit exempt under this paragraph shall retain at the source that includes the unit, records demonstrating that the unit is permanently retired. The 5-year period for keeping records may be extended for cause, at any time prior to the end of the period, in writing by the Department or the Administrator. The owners and operators bear the burden of proof that the unit is permanently retired.

4.Loss of exemption.

(i) A unit exempt under subparagraph (b) of this paragraph shall lose its exemption the date on which the unit resumes operation.

(ii) For the purpose of applying monitoring requirements under ADEM Admin. Code r. 335-3-8-.72, a unit that loses its exemption under this section shall be treated as a unit that commences operation on the first date on which the unit resumes operation.

(6)Standard Requirements.

(a)State of Alabama NOx Budget.

1. The NOx Budget for NOx Budget units, which applies to units only in the counties listed at subparagraph (4)a of this rule, in the state of Alabama is 2,328 tons for each control period. The sum of the tons of NOx emitted from all such units under paragraph (4) of this rule in each control period beginning after the effective date of this rule may not exceed this budget amount.

(i) Unless all NOx Budget units under paragraph (4) of this rule are exempt by the first of May each year, the state shall conduct an annual review of actual NOx emissions during the previous control period from all NOx Budget units under paragraph (4) of this rule, including any new units, to ensure the total emissions remain below the state NOx budget

(ii) By January 31 of each year, the state shall supply to EPA an annual review of the actual NOx emissions during the previous control period from all NOx Budget units under paragraph (4) of this rule, in compliance with 40 CFR 51.122(c)(1)(i).

(iii) Should the total emissions for the control period exceed the state NOx budget as defined in this paragraph, the State will, within one year of determining the exceedance of the State program budget, submit a revised State Implementation Plan to the EPA which compensates for the budget shortfall and ensures the state program budget is met in future years.

(b)Monitoring and reporting requirements.

1. The owners and operators and, to the extent applicable, the NOx authorized account representative of each NOx Budget source and each NOx Budget unit at the source shall comply with the monitoring and reporting requirements of ADEM Admin. Code r. 335-3-8-.72 for any control period during which a NOx Budget Unit operates.

2. NOx mass emissions measurements recorded and reported in accordance with ADEM Admin. Code r. 335-3-8-.72 shall be used to determine compliance with the State of Alabama NOx Budget set forth in subparagraph (6)(a)1. of this paragraph.

(c)Recordkeeping requirements.

1. Unless otherwise provided, the owners and operators of the NOx Budget source and each NOx Budget unit at the source shall keep on site at the source each of the following documents for a period of 5 years from the date the document is created. This period may be extended for cause, at any time prior to the end of 5 years, in writing by the Department or the Administrator.

(i) The account certificate of representation for the NOx authorized account representative for the source and each NOx Budget unit at the source and all documents that demonstrate the truth of the statements in the account certificate of representation, in accordance with subparagraph (2) (a) of this rule; provided that the certificate and documents shall be retained on site at the source beyond such 5-year period until such documents are superseded because of the submission of a new account certificate of representation changing the NOx authorized account representative.

(ii) All emissions monitoring information, in accordance with ADEM Admin Code r. 335-3-8-.72; provided that to the extent that rule 335-3-8-.72 provides for a 3-year period for recordkeeping, the 3-year period shall apply.

(iii) Copies of all reports, compliance certifications, and other submissions and all records made or required under the NOx Budget Program.

(iv) Any other submission in order to demonstrate compliance with the requirements of the NOx Budget Program.

2. The NOx authorized account representative of a NOx Budget source and each NOx Budget unit at the source shall submit the reports and compliance certifications required under the NOx Budget Program, including those under ADEM Admin Code r. 335-3-8-.72.

(d)Liability.

1. Any person who knowingly violates any requirement or prohibition of the NOx Budget Program, or an exemption under paragraph (5) of this rule shall be subject to enforcement pursuant to applicable State or Federal law.

2. Any person who knowingly makes a false material statement in any record, submission, or report under the NOx Budget Program shall be subject to criminal enforcement pursuant to the applicable State or Federal law.

3. No permit revision shall excuse any violation of the requirements of the NOx Budget Program that occurs prior to the date that the revision takes effect.

4. Each NOx Budget source and each NOx Budget unit at the source shall meet the requirements of the NOx Budget Program.

5. Any provision of the NOx Budget Program that applies to a NOx Budget source (including a provision applicable to the NOx authorized account representative of a NOx Budget source) shall also apply to the owners and operators of such source and of the NOx Budget units at the source.

6. Any provision of the NOx Budget Program that applies to a NOx Budget unit (including a provision applicable to the NOx authorized account representative of a NOx budget unit) shall also apply to the owners and operators of such unit.

(e) Effect on other authorities. No provision of the NOx Budget Program or an exemption under paragraph (5) of this rule shall be construed as exempting or excluding the owners and operators and, to the extent applicable, the NOx authorized account representative of a NOx Budget source or NOx Budget unit from compliance with any other provision of the applicable, approved State Implementation Plan, an enforceable permit, or the CAA.

(7)Computation of time.

(a) Unless otherwise stated, any time period scheduled, under the NOx Budget Program, to begin on the occurrence of an act or event shall begin on the day the act or event occurs.

(b) Unless otherwise stated, any time period scheduled, under the NOx Budget Program, to begin before the occurrence of an act or event shall be computed so that the period ends the day before the act or event occurs.

(c) Unless otherwise stated, if the final day of any time period, under the NOx Budget Program, falls on a weekend or a State or Federal holiday, the time period shall be extended to the next business day.

Ala. Admin. Code r. 335-3-8-.71

Adopted by Alabama Administrative Monthly Volume XXXVIII, Issue No. 05, February 28, 2020, eff. 4/13/2020.

Amended by Alabama Administrative Monthly Volume XLII, Issue No. 03, December 29, 2023, eff. 2/12/2024.

Author: Ronald W. Gore

Statutory Authority:Code of Ala. 1975, §§ 22-28-10, 22-28-11, 22-28-14, 22-28-18, 22-28-20, 22-28-22, 22-22A-5, 22-22A-6, 22-22A-8.