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91_SB1088enr
SB1088 Enrolled LRB9102840LDpkA
1 AN ACT to amend the Environmental Protection Act by
2 adding Section 9.9.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Environmental Protection Act is amended
6 by adding Section 9.9 as follows:
7 (415 ILCS 5/9.9 new)
8 Sec. 9.9. Nitrogen oxides trading system.
9 (a) The General Assembly finds:
10 (1) That USEPA has issued a Final Rule published in
11 the Federal Register on October 27, 1998, entitled
12 "Finding of Significant Contribution and Rulemaking for
13 Certain States in the Ozone Transport Assessment Group
14 Region for Purposes of Reducing Regional Transport of
15 Ozone", hereinafter referred to as the "NOx SIP Call",
16 compliance with which will require reducing emissions of
17 nitrogen oxides ("NOx");
18 (2) That reducing emissions of NOx in the State
19 helps the State to meet the national ambient air quality
20 standard for ozone;
21 (3) That emissions trading is a cost-effective
22 means of obtaining reductions of NOx emissions.
23 (b) The Agency shall propose and the Board shall adopt
24 regulations to implement an interstate NOx trading program
25 (hereinafter referred to as the "NOx Trading Program") as
26 provided for in 40 CFR Part 96, including incorporation by
27 reference of appropriate provisions of 40 CFR Part 96 and
28 regulations to address 40 CFR Section 96.4(b), Section
29 96.55(c), Subpart E, and Subpart I. In addition, the Agency
30 shall propose and the Board shall adopt regulations to
31 implement NOx emission reduction programs for cement kilns
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1 and stationary internal combustion engines.
2 (c) Allocations of NOx allowances to large electric
3 generating units ("EGUs") and large non-electric generating
4 units ("non-EGUs"), as defined by 40 CFR Part 96.4(a), shall
5 not exceed the State's trading budget for those source
6 categories to be included in the State Implementation Plan
7 for NOx.
8 (d) In adopting regulations to implement the NOx Trading
9 Program, the Board shall:
10 (1) assure that the economic impact and technical
11 feasibility of NOx emissions reductions under the NOx
12 Trading Program are considered relative to the
13 traditional regulatory control requirements in the State
14 for EGUs and non-EGUs;
15 (2) provide that emission units, as defined in
16 Section 39.5(1) of this Act, may opt into the NOx Trading
17 Program;
18 (3) provide for voluntary reductions of NOx
19 emissions from emission units, as defined in Section
20 39.5(1) of this Act, not otherwise included under
21 paragraph (c) or (d)(2) of this Section to provide
22 additional allowances to EGUs and non-EGUs to be
23 allocated by the Agency. The regulations shall further
24 provide that such voluntary reductions are verifiable,
25 quantifiable, permanent, and federally enforceable;
26 (4) provide that the Agency allocate to non-EGUs
27 allowances that are designated in the rule, unless the
28 Agency has been directed to transfer the allocations to
29 another unit subject to the requirements of the NOx
30 Trading Program, and that upon shutdown of a non-EGU, the
31 unit may transfer or sell the NOx allowances that are
32 allocated to such unit; and
33 (5) provide that the Agency shall set aside
34 annually a number of allowances, not to exceed 5% of the
SB1088 Enrolled -3- LRB9102840LDpkA
1 total EGU trading budget, to be made available to new
2 EGUs.
3 (A) Those EGUs that commence commercial
4 operation, as defined in 40 CFR Section 96.2, at a
5 time that is more than half way through the control
6 period in 2002 shall return to the Agency any
7 allowances that were issued to it by the Agency and
8 were not used for compliance in 2003.
9 (B) The Agency may charge EGUs that commence
10 commercial operation, as defined in 40 CFR Section
11 96.2, on or after January 1, 2003, for the
12 allowances it issues to them.
13 (e) The Agency may adopt procedural rules, as necessary,
14 to implement the regulations promulgated by the Board
15 pursuant to subsections (b) and (d) and to implement
16 subsection (i) of this Section.
17 (f) The regulations promulgated by the Board pursuant to
18 subsections (b) and (d) of this Section shall not be enforced
19 until the later of May 1, 2003, or the first day of the
20 control season subsequent to the calendar year in which all
21 of the other states subject to the provisions of the NOx SIP
22 Call that are located in USEPA Region V or that are
23 contiguous to Illinois have adopted regulations to implement
24 NOx trading programs and other required reductions of NOx
25 emissions pursuant to the NOx SIP Call, and such regulations
26 have received final approval by USEPA as part of the
27 respective states' SIPS for ozone, or a final FIP for ozone
28 promulgated by USEPA is effective for such other states.
29 (g) To the extent that a court of competent jurisdiction
30 finds a provision of 40 CFR Part 96 invalid, the
31 corresponding Illinois provision shall be stayed until such
32 provision of 40 CFR Part 96 is found to be valid or is
33 re-promulgated. To the extent that USEPA or any court of
34 competent jurisdiction stays the applicability of any
SB1088 Enrolled -4- LRB9102840LDpkA
1 provision of the NOx SIP Call to any person or circumstance
2 relating to Illinois, during the period of that stay, the
3 effectiveness of the corresponding Illinois provision shall
4 be stayed. To the extent that the invalidity of the
5 particular requirement or application does not affect other
6 provisions or applications of the NOx SIP Call pursuant to 40
7 CFR 51.121 or the NOx trading program pursuant to 40 CFR Part
8 96 or 40 CFR Part 97, this Section, and rules or regulations
9 promulgated hereunder, will be given effect without the
10 invalid provisions or applications.
11 (h) Notwithstanding any other provision of this Act, any
12 source or other authorized person that participates in the
13 NOx Trading Program shall be eligible to exchange NOx
14 allowances with other sources in accordance with this Section
15 and with regulations promulgated by the Board or the Agency.
16 (i) There is hereby created within the State Treasury an
17 interest-bearing special fund to be known as the NOx Trading
18 System Fund, which shall be used and administered by the
19 Agency for the purposes stated below:
20 (1) To accept funds from persons who purchase NOx
21 allowances from the Agency;
22 (2) To disburse the proceeds of the NOx allowances
23 sales pro-rata to the owners or operators of the EGUs
24 that received allowances from the Agency but not from the
25 Agency's set-aside, in accordance with regulations that
26 may be promulgated by the Agency; and
27 (3) To finance the reasonable costs incurred by the
28 Agency in the administration of the NOx Trading System.
29 Section 95. The State Finance Act is amended by adding
30 Section 5.490 as follows:
31 (30 ILCS 105/5.490 new)
32 Sec. 5.490. The NOx Trading System Fund.
SB1088 Enrolled -5- LRB9102840LDpkA
1 Section 99. Effective date. This Act takes effect upon
2 becoming law.