[ Home ] [ ILCS ] [ Search ] [ Bottom ]
[ Other General Assemblies ]
Public Act 91-0631
SB1088 Enrolled LRB9102840LDpkA
AN ACT to amend the Environmental Protection Act by
adding Section 9.9.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Environmental Protection Act is amended
by adding Section 9.9 as follows:
(415 ILCS 5/9.9 new)
Sec. 9.9. Nitrogen oxides trading system.
(a) The General Assembly finds:
(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");
(2) That reducing emissions of NOx in the State
helps the State to meet the national ambient air quality
standard for ozone;
(3) That emissions trading is a cost-effective
means of obtaining reductions of NOx emissions.
(b) The Agency shall propose and the Board shall adopt
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
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 stationary internal combustion engines.
(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
categories to be included in the State Implementation Plan
for NOx.
(d) In adopting regulations to implement the NOx Trading
Program, the Board shall:
(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 non-EGUs;
(2) provide that emission units, as defined in
Section 39.5(1) of this Act, may opt into the NOx Trading
Program;
(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;
(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 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
(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.
(A) 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
period in 2002 shall return to the Agency any
allowances that were issued to it by the Agency and
were not used for compliance in 2003.
(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.
(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
subsection (i) of this Section.
(f) The regulations promulgated by the Board pursuant to
subsections (b) and (d) of this Section shall not be enforced
until the later of May 1, 2003, or the first day of the
control season subsequent to the calendar year in which all
of the other states subject to the provisions of the NOx SIP
Call that are located in USEPA Region V or that are
contiguous to Illinois have adopted regulations to implement
NOx trading programs and other required reductions of NOx
emissions pursuant to the NOx SIP Call, and such regulations
have received final approval by USEPA as part of the
respective states' SIPS for ozone, or a final FIP for ozone
promulgated by USEPA is effective for such other states.
(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.
(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.
(i) There is hereby created within the State Treasury an
interest-bearing special fund to be known as the NOx Trading
System Fund, which shall be used and administered by the
Agency for the purposes stated below:
(1) To accept funds from persons who purchase NOx
allowances from the Agency;
(2) To disburse the proceeds of the NOx allowances
sales pro-rata to the owners or operators of the EGUs
that received allowances from the Agency but not from the
Agency's set-aside, in accordance with regulations that
may be promulgated by the Agency; and
(3) To finance the reasonable costs incurred by the
Agency in the administration of the NOx Trading System.
Section 95. The State Finance Act is amended by adding
Section 5.490 as follows:
(30 ILCS 105/5.490 new)
Sec. 5.490. The NOx Trading System Fund.
Section 99. Effective date. This Act takes effect upon
becoming law.
[ Top ]