NOx Trading Program

Additional 2003 ERCs for Purchase by EGUs

(For original ERC distribution, click here.)

The Illinois EPA offered additional Early Reduction Credits (ERCs) for purchase by those Electrical Generating Units (EGUs) that made qualifying early reductions of NOx in 2003. The Agency established the timeline below pursuant to Title 35 Ill. Adm. Code Part 273, NOx Trading Program Procedures. All allowances were purchased according to the final allotment, below. The Agency expects to submit a final allotment list to the USEPA by September 30, 2005, to allow sufficient time for sources to use the allowances, which must be utilized for the 2005 season. Each ERC allowance was sold for $2,000.

Below is the final allotment of additional 2003 ERCs, based upon applications received for a total of 2,800 allowances.

The timeline as outlined in 35 Ill. Adm. Code Part 273 and determined by the Illinois EPA is as follows. Please note that all due dates listed for sources are dates by which the Agency must be in receipt of those items:

A NOx authorized account representative may submit an application to the Agency requesting to purchase allowances. Such applications must include the following information:

1. Bureau of Air facility identification number;
2. ORIS ID number;
3. Source name;
4. A statement of eligibility as set forth in Section 273.120, including the necessary information to support eligibility to purchase ERCs;
5. Name and signature of the NOx authorized account representative for the source;
6. E-mail address and telephone number of the NOx authorized account representative for the source;
7. NOx allowance tracking system account number;
8. Number, vintage, and type of NOx allowances (ERCs) being requested for purchase.
9. Account number in which allowances should be deposited (unit account or overdraft account).

As stated above in the timeline, once the applications to purchase NOx allowances are reviewed and deemed complete, the Agency will post the proposed number of allowances that may be purchased by each EGU. A final allotment list will be posted after any necessary or appropriate adjustments have been made due to any disagreements submitted to the Agency over the proposed allotment list.

Due to a compressed timeline, it is imperative for the Agency to have on record an accurate e-mail address of the NOx authorized account representative to facilitate the rapid exchange of information and to address any possible questions or problems that may arise.

Eligibility:

Eligibility requirements are established in 35 IAC 217.770 and 273.120.

Each budget EGU for which ERCs are requested must have reduced its NOx emission rate for the 2003 control period as follows:

1. For budget EGUs subject to the requirements of Title IV of the CAA and not included in a NOx averaging plan pursuant to 40 CFR 72 and 76, as incorporated by reference in 35 IAC 217.104, at least 30% less than the NOx emission rate specified in the applicable Title IV permit or other applicable federally enforceable permit.
   
   
2. For budget EGUs subject to the requirements of Title IV of the CAA and included in a NOx averaging plan pursuant to 40 CFR 72 and 76, at least 30% less than the annual emission rate required in the NOx averaging plan in the applicable Title IV permit or other applicable federally enforceable permit.
   
   
3. For budget EGUs not subject to the requirements of title IV of the CAA, at least 30% less than the actual NOx emissions rate (lbs/mmbtu) for the 2000 control period.

If you have any questions or problems, please contact David Bloomberg, Compliance Unit Manager, at 217/524-4949.