Section 409.04. New units exemption.

 

(1)   Applicability. This section applies to any new utility unit that has not previously lost an exemption under sub. (6) (d) and that, in each year starting with the first year for which the unit is to be exempt, satisfies all of the following:

(a) Serves during the entire year, except for any period before the unit commenced commercial operation, one or more generators with total nameplate capacity of 25 MWe or less.

(b) Burns fuel that does not include any coal or coal-derived fuel, except coal-derived gaseous fuel with a total sulfur content no greater than natural gas.

(c) Burns gaseous fuel with an annual average sulfur content of 0.05% or less by weight, as determined under sub. (4) and nongaseous fuel with an annual average sulfur content of 0.05% or less by weight, as determined under sub. (4) .

(2)   Exemptions for non-allocated units.

(a) Any new utility unit that meets the requirements of sub. (1) and that is not allocated any allowances under 40 CFR part 73 shall be exempt from this chapter, except for the provisions of this section, 40 CFR 72.2 to 72.6 , and 40 CFR 72.10 to 72.13 .

(b) The exemption under par. (a) shall be effective on January 1 of the first full calendar year for which the unit meets the requirements of sub. (1) . By December 31 of the first year for which the unit is to be exempt under this section, a statement signed by the designated representative, or, if no designated representative has been authorized, a certifying official of each owner of the unit shall be submitted to the department, and a copy of the statement shall be submitted to the administrator. The statement shall be submitted in a format prescribed by the administrator, shall identify the unit, state the nameplate capacity of each generator served by the unit and the fuels currently burned or expected to be burned by the unit and their sulfur content by weight, and state that the owners and operators of the unit will comply with sub. (6) .

(c) After receipt of the statement under par. (b) , the department shall revise under s. NR 409.12 (4) the operation permit covering the source at which the unit is located, if the source has an operation permit, to add the provisions and requirements of the exemption under sub. (1) , par. (a) , and subs. (4) and (6) .

(3)   Exemptions for allocated units.

(a) Any new utility unit that meets the requirements of sub. (1) and that is allocated one or more allowances under 40 CFR part 73 shall be exempt from this chapter, except for the provisions of this section, 40 CFR 72.2 to 72.6 , and 40 CFR 72.10 to 72.13 , if the designated representative, or, if no designated representative has been authorized, a certifying official of each owner of the unit submits to the department and the administrator a statement, in a format prescribed by the administrator, that does all of the following:

1. Identifies the unit and states the nameplate capacity of each generator served by the unit and the fuels currently burned or expected to be burned by the unit and their sulfur content by weight.

2. States that the owners and operators of the unit will comply with sub. (6) .

3. Surrenders allowances equal in number to, and with the same or earlier compliance use date as, all of those allocated to the unit under 40 CFR part 73 for the first year that the unit is to be exempt under this section and for each subsequent year.

4. Surrenders any proceeds for allowances under subd. 3. withheld from the unit under 40 CFR 73.10 .

(b) The administrator deducts from the unit's allowance tracking system account allowances under 40 CFR 72.7 (c)(1)(i)(C) and receives proceeds under 40 CFR 72.7 (c)(1)(i)(D). Upon completion of any deductions and receipt of any proceeds, the administrator will close the unit's allowance tracking system account and notify the designated representative, or certifying official, and the department.

(c) The exemption under par. (a) shall be effective on January 1 of the first full calendar year for which the requirements of sub. (1) and par. (a) are met. After notification by the administrator under 40 CFR 72.7 (c)(1)(ii) the department shall revise under s. NR 409.12 (4) the operation permit covering the source at which the unit is located, if the source has such a permit, to add the provisions and requirements of the exemption under sub. (1) , par. (a) , and subs. (4) and (6) .

(4)   Compliance demonstration. Compliance with the requirement that fuel burned during the year have an annual average sulfur content of 0.05% by weight or less shall be determined using a method of determining sulfur content that provides information with reasonable precision, reliability, accessibility and timeliness, in accordance with one of the following:

(a) For gaseous fuel burned during the year, if natural gas is the only gaseous fuel burned, the requirement is assumed to be met.

(b) For gaseous fuel burned during the year where other gas in addition to or besides natural gas is burned, the requirement is met if the annual average sulfur content is equal to or less than 0.05% by weight. The annual average sulfur content, as a percentage by weight, for the gaseous fuel burned shall be calculated as follows: - See PDF for diagram

where:

%S annual is the annual average sulfur content of the fuel burned during the year by the unit, as a percentage by weight

%S n is the sulfur content of the nth sample of the fuel delivered during the year to the unit, as a percentage by weight

V n is the volume of the fuel in a delivery during the year to the unit of which the nth sample is taken, in standard cubic feet; or, for fuel delivered during the year to the unit continuously by pipeline, volume of the fuel delivered starting from when the nth sample of the fuel is taken until the next sample of the fuel is taken, in standard cubic feet

d n is the density of the nth sample of the fuel delivered during the year to the unit, in lb per standard cubic foot

n is each sample taken of the fuel delivered during the year to the unit, taken at least once for each delivery; or, for fuel that is delivered during the year to the unit continuously by pipeline, at least once each quarter during which the fuel is delivered

(c) For nongaseous fuel burned during the year, the requirement is met if the annual average sulfur content is equal to or less than 0.05% by weight. The annual average sulfur content, as a percentage by weight, shall be calculated using the equation in par. (b) . In lieu of the factor, volume times density, V n d n , in the equation, the factor, mass M n , may be used, where M n is: mass of the nongaseous fuel in a delivery during the year to the unit of which the nth sample is taken, in pounds; or, for fuel delivered during the year to the unit continuously by pipeline, mass of the nongaseous fuel delivered starting from when the nth sample of the fuel is taken until the next sample of the fuel is taken, in pounds.

(5)   Written exemptions.

(a) A utility unit that was issued a written exemption under this section and that meets the requirements of sub. (1) shall be exempt from this chapter, except for the provisions of this section, 40 CFR 72.2 to 72.6 and 40 CFR 72.10 to 72.13 , and shall be subject to the requirements of subs. (1) and (4) , par. (b) , and sub. (6) in lieu of the requirements in the written exemption. The department shall revise under s. NR 409.12 (4) the operation permit covering the source at which the unit is located, if the source has an operation permit, to add the provisions and requirements of the exemption under this paragraph and subs. (1) and (4) , par. (b) and sub. (6) .

(b) If a utility unit under par. (a) is allocated one or more allowances under 40 CFR part 73 , the designated representative, or, if no designated representative has been authorized, a certifying official of each owner of the unit shall submit to the permitting authority that issued the written exemption a statement, in a format prescribed by the administrator, meeting the requirements of sub. (3) (a) 3. and 4.

(6)   Special provisions.

(a) Duty to comply. The owners and operators and, to the extent applicable, the designated representative of a unit exempt under this section shall comply with both of the following:

1. The requirements of sub. (1) for all periods for which the unit is exempt under this section.

2. The requirements of this chapter concerning all periods for which the exemption is not in effect, even if the requirements arise, or must be complied with, after the exemption takes effect.

(b) Scope of exemption. For any period for which a unit is exempt under this section, the unit is not an affected unit under this chapter and ch. NR 407 and is not eligible under 40 CFR part 74 . As an unaffected unit, the unit shall continue to be subject to any other applicable requirements in ch. NR 407 .

(c) Recordkeeping. For a period of 5 years from the date the records are created, the owners and operators of a unit exempt under this section shall retain at the source that includes the unit records demonstrating that the requirements of sub. (1) are met. 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 administrator or the department.

1. Records shall include, for each delivery of fuel to the unit or for fuel delivered to the unit continuously by pipeline, the type of fuel, the sulfur content and the sulfur content of each sample taken.

2. The owners and operators bear the burden of proof that the requirements of sub. (1) are met.

(d) Loss of exemption.

1. On the earliest of the following dates, a unit exempt under sub. (2) , (3) or (5) shall lose its exemption and become an affected unit under this chapter and ch. NR 407 :

a. The date on which the unit first serves one or more generators with total nameplate capacity in excess of 25 MWe.

b. The date on which the unit burns any coal or coal-derived fuel except for coal-derived gaseous fuel with a total sulfur content no greater than natural gas.

c. January 1 of the year following the year in which the annual average sulfur content for gaseous fuel burned at the unit exceeds 0.05% by weight, as determined under sub. (4) , or for nongaseous fuel burned at the unit exceeds 0.05% by weight, as determined under sub. (4) .

2. Notwithstanding s. NR 409.08 (1) (b) and (c) , the designated representative for a unit that loses its exemption under this section shall submit a complete acid rain portion of an operation permit application no later than 60 days after the first date on which the unit is no longer exempt.

3. For the purpose of applying monitoring requirements under 40 CFR part 75 , a unit that loses its exemption under this section shall be treated as a new unit that commenced commercial operation on the first date on which the unit is no longer exempt.

History: Cr. Register, April, 1995, No. 472 , eff. 5-1-95; r. and recr., Register, November, 1999, No. 527 , eff. 12-1-99.

Note

The statement was to have been submitted to the permitting authority by June 30, 1998 and, if the administrator was not the permitting authority, a copy was to have been submitted to the administrator. Microsoft Windows NT 6.1.7601 Service Pack 1