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| Public Act 093-0669 |
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AN ACT concerning air pollution.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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Section 5. The Environmental Protection Act is amended by | ||||
changing Section
9.9 as follows:
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(415 ILCS 5/9.9)
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Sec. 9.9. Nitrogen oxides trading system.
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(a) The General Assembly finds:
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(1) That USEPA has issued a Final Rule published in the | ||||
Federal
Register on October 27, 1998, entitled "Finding of | ||||
Significant Contribution and
Rulemaking for Certain States | ||||
in the Ozone Transport Assessment Group Region
for Purposes | ||||
of Reducing Regional Transport of Ozone", hereinafter | ||||
referred to
as the "NOx SIP Call", compliance with which | ||||
will require reducing emissions of
nitrogen oxides | ||||
("NOx");
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(2) That reducing emissions of NOx in the State helps | ||||
the State to meet
the national ambient air quality standard | ||||
for ozone;
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(3) That emissions trading is a cost-effective means of | ||||
obtaining
reductions of NOx emissions.
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(b) The Agency shall propose and the Board shall adopt
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regulations to implement an interstate NOx trading program | ||||
(hereinafter
referred to as the "NOx Trading Program") as | ||||
provided for in 40 CFR
Part 96, including
incorporation by | ||||
reference of appropriate provisions of 40 CFR Part 96 and
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regulations to address 40 CFR Section 96.4(b), Section | ||||
96.55(c), Subpart E, and
Subpart I. In addition, the Agency | ||||
shall propose and the Board shall adopt
regulations to | ||||
implement NOx emission reduction programs for cement kilns and
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stationary
internal combustion engines.
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(c) Allocations of NOx allowances to large electric | ||||
generating units
("EGUs") and large non-electric generating | ||
units ("non-EGUs"), as defined by 40
CFR Part 96.4(a), shall | ||
not exceed the State's trading budget for those source
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categories to be included in
the State Implementation Plan for | ||
NOx.
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(d) In adopting regulations to implement the NOx Trading | ||
Program, the Board
shall:
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(1) assure that the economic impact and technical | ||
feasibility of NOx
emissions reductions under the NOx | ||
Trading Program are considered relative to
the traditional | ||
regulatory control requirements in the State for EGUs and
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non-EGUs;
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(2) provide that emission units, as defined in Section | ||
39.5(1) of this
Act, may opt into the NOx Trading Program;
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(3) provide for voluntary reductions of NOx emissions | ||
from emission units,
as defined in Section 39.5(1) of this | ||
Act, not otherwise included under
paragraph (c) or (d)(2) | ||
of this Section to provide additional allowances to
EGUs | ||
and non-EGUs to be allocated by the Agency. The regulations | ||
shall further
provide that such voluntary reductions are | ||
verifiable, quantifiable, permanent,
and federally | ||
enforceable;
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(4) provide that the Agency allocate to non-EGUs | ||
allowances that are
designated in the rule, unless the | ||
Agency has been directed to transfer the
allocations to | ||
another unit subject to the requirements of the NOx Trading
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Program, and that upon shutdown of a non-EGU, the unit may | ||
transfer or sell the
NOx allowances that are allocated to | ||
such unit; and
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(5) provide that the Agency shall set aside annually a | ||
number of
allowances, not to exceed 5% of the total EGU | ||
trading budget, to be made
available to new EGUs; and
.
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(6)
(A)
provide that those EGUs that commence | ||
commercial
operation, as defined
in 40
CFR Section 96.2, at | ||
a time that is more than half way through the control
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period in 2003 shall return to the Agency any allowances | ||
that were issued to
it by the Agency and were not used for | ||
compliance in 2004.
(B) The Agency may charge EGUs that | ||
commence commercial operation, as
defined in 40 CFR Section | ||
96.2, on or after January 1, 2003, for the allowances
it | ||
issues to them.
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(d-5) The Agency may sell NOx allowances to sources in | ||
Illinois that are
subject
to 35 Ill. Adm. Code 217, either | ||
Subpart U or W, as follows:
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(1) any unearned Early Reduction Credits set aside for | ||
non-EGUs under 35
Ill. Adm. Code 217, Subpart U, but only | ||
to those sources that make qualifying
early reductions of | ||
NOx in 2003 pursuant to 35 Ill. Adm. Code 217 for which
the | ||
source did not receive an allocation thereunder. If the | ||
Agency receives
requests to purchase more ERCs than are | ||
available for sale, allowances shall
be offered for sale to | ||
qualifying sources on a pro-rata basis;
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(2) any remaining Early Reduction Credits allocated | ||
under 35 Ill. Adm.
Code 217, Subpart U or W, that could not | ||
be allocated on a pro-rata, whole
allowance basis, but only | ||
to those sources that made qualifying early
reductions of | ||
NOx in 2003 pursuant to 35 Ill. Adm. Code 217 for which the
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source did not receive an allocation;
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(3) any allowances under 35 Ill. Adm. Code 217, Subpart | ||
W, that remain
after each 3-year allocation period that | ||
could not be allocated on a
pro-rata, whole allowance basis | ||
pursuant to the provisions of Subpart W; and
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(4) any allowances requested from the New Source Set | ||
Aside for those
sources that commenced operation, as | ||
defined in 40 CFR Section 96.2, on or
after
January 1, | ||
2004.
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(d-10) The selling price for ERC allowances shall be 70% of | ||
the market
price index for 2005 NOx allowances, determined by | ||
the Agency as follows:
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(1) using the mean of 2 or more published market price | ||
indexes for the
2005 NOx allowances as of October 6, 2003; | ||
or
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(2) if there are not 2 published market price indexes | ||
for 2005 NOx
allowances as of October 6, 2003, the Agency | ||
may use any reasonable indication
of market price.
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(e) The Agency may adopt procedural rules, as necessary, to | ||
implement the
regulations promulgated by the Board pursuant to | ||
subsections (b) and (d) and
to implement subsections (d-5), | ||
(d-10), (i), and (j)
subsection (i) of
this Section.
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(f) Notwithstanding any provisions in subparts T, U, and W | ||
of Section 217
of Title 35 of the Illinois Administrative Code | ||
to the contrary, compliance
with the regulations promulgated by | ||
the Board pursuant to subsections (b) and
(d) of this Section | ||
is required by May 31, 2004.
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(g) To the extent that a court of competent jurisdiction | ||
finds a provision
of 40 CFR Part 96 invalid, the corresponding | ||
Illinois provision shall
be stayed until such provision of 40 | ||
CFR Part 96 is found to be valid or is
re-promulgated. To the | ||
extent that USEPA or any court of competent
jurisdiction stays | ||
the applicability of any provision of the NOx SIP Call to
any | ||
person or circumstance relating to Illinois, during the period | ||
of that
stay, the effectiveness of the corresponding Illinois | ||
provision shall be
stayed. To the extent that the invalidity of | ||
the particular requirement or
application does not affect
other | ||
provisions or applications of the NOx SIP Call pursuant to 40 | ||
CFR 51.121
or the NOx trading program pursuant to 40 CFR Part | ||
96 or 40 CFR Part 97, this
Section, and rules or regulations | ||
promulgated hereunder, will be given
effect without the invalid | ||
provisions or applications.
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(h) Notwithstanding any other provision of this Act, any | ||
source or other
authorized person that participates in the NOx | ||
Trading Program shall be
eligible to exchange NOx allowances | ||
with other sources in accordance with
this Section and with | ||
regulations promulgated by the Board or the Agency.
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(i) There is hereby created within the State Treasury an | ||
interest-bearing
special fund to be known as the NOx Trading | ||
System Fund. Moneys generated
from the sale of NOx allowances | ||
from the New Source Set Aside or the sale of
allowances | ||
pursuant to subsection (d-5) of this Section shall be deposited | ||
into
the Fund. This Fund
, which shall be used
and administered | ||
by the Agency for the purposes stated below:
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(1) To accept funds from persons who purchase NOx | ||
allowances from the
New Source Set Aside from the
Agency;
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(2) To disburse the proceeds of the sale of the NOx
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allowances from the New Source Set Aside, to the extent | ||
that proceeds remain
after the Agency has recouped the | ||
reasonable costs incurred by the Agency in
the | ||
administration of the NOx SIP Call Program,
sales pro-rata | ||
to the
owners or operators of the EGUs that received
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allowances from the Agency but not from the Agency's New | ||
Source Set Aside
set-aside, in accordance
with regulations | ||
that may be promulgated by the Agency; and
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(3) To finance the reasonable costs incurred by the | ||
Agency in the
administration of the NOx SIP Call Program
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Trading System.
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(j) Moneys generated from the sale of early reduction | ||
credits
shall be deposited into the Clean Air Act Permit Fund | ||
created pursuant to
Section 39.5(18)(d) of this Act, and the | ||
proceeds
shall be used and administered by the Agency to | ||
finance the costs associated
with the Clean Air Act Permit | ||
Program.
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(Source: P.A. 91-631, eff. 8-19-99; 92-12, eff. 7-1-01; 92-279, | ||
eff.
8-7-01.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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