Full Text of HB3553 093rd General Assembly
HB3553enr 93RD GENERAL ASSEMBLY
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HB3553 Enrolled |
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| AN ACT concerning air pollution.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Environmental Protection Act is amended by | 5 |
| 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 | 10 |
| Federal
Register on October 27, 1998, entitled "Finding of | 11 |
| Significant Contribution and
Rulemaking for Certain States | 12 |
| in the Ozone Transport Assessment Group Region
for Purposes | 13 |
| of Reducing Regional Transport of Ozone", hereinafter | 14 |
| referred to
as the "NOx SIP Call", compliance with which | 15 |
| will require reducing emissions of
nitrogen oxides | 16 |
| ("NOx");
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| (2) That reducing emissions of NOx in the State helps | 18 |
| the State to meet
the national ambient air quality standard | 19 |
| for ozone;
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| (3) That emissions trading is a cost-effective means of | 21 |
| 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 | 24 |
| (hereinafter
referred to as the "NOx Trading Program") as | 25 |
| provided for in 40 CFR
Part 96, including
incorporation by | 26 |
| reference of appropriate provisions of 40 CFR Part 96 and
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| regulations to address 40 CFR Section 96.4(b), Section | 28 |
| 96.55(c), Subpart E, and
Subpart I. In addition, the Agency | 29 |
| shall propose and the Board shall adopt
regulations to | 30 |
| 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 |
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| generating units
("EGUs") and large non-electric generating | 2 |
| units ("non-EGUs"), as defined by 40
CFR Part 96.4(a), shall | 3 |
| not exceed the State's trading budget for those source
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| categories to be included in
the State Implementation Plan for | 5 |
| NOx.
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| (d) In adopting regulations to implement the NOx Trading | 7 |
| Program, the Board
shall:
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| (1) assure that the economic impact and technical | 9 |
| feasibility of NOx
emissions reductions under the NOx | 10 |
| Trading Program are considered relative to
the traditional | 11 |
| 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 | 14 |
| 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 | 16 |
| from emission units,
as defined in Section 39.5(1) of this | 17 |
| Act, not otherwise included under
paragraph (c) or (d)(2) | 18 |
| of this Section to provide additional allowances to
EGUs | 19 |
| and non-EGUs to be allocated by the Agency. The regulations | 20 |
| shall further
provide that such voluntary reductions are | 21 |
| verifiable, quantifiable, permanent,
and federally | 22 |
| enforceable;
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| (4) provide that the Agency allocate to non-EGUs | 24 |
| allowances that are
designated in the rule, unless the | 25 |
| Agency has been directed to transfer the
allocations to | 26 |
| 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 | 28 |
| transfer or sell the
NOx allowances that are allocated to | 29 |
| such unit; and
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| (5) provide that the Agency shall set aside annually a | 31 |
| number of
allowances, not to exceed 5% of the total EGU | 32 |
| trading budget, to be made
available to new EGUs ; and
.
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| (6)
(A)
provide that those EGUs that commence | 34 |
| commercial
operation, as defined
in 40
CFR Section 96.2, at | 35 |
| 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 |
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| that were issued to
it by the Agency and were not used for | 2 |
| compliance in 2004.
(B) The Agency may charge EGUs that | 3 |
| commence commercial operation, as
defined in 40 CFR Section | 4 |
| 96.2, on or after January 1, 2003, for the allowances
it | 5 |
| issues to them.
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| (d-5) The Agency may sell NOx allowances to sources in | 7 |
| Illinois that are
subject
to 35 Ill. Adm. Code 217, either | 8 |
| Subpart U or W, as follows:
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| (1) any unearned Early Reduction Credits set aside for | 10 |
| non-EGUs under 35
Ill. Adm. Code 217, Subpart U, but only | 11 |
| to those sources that make qualifying
early reductions of | 12 |
| NOx in 2003 pursuant to 35 Ill. Adm. Code 217 for which
the | 13 |
| source did not receive an allocation thereunder. If the | 14 |
| Agency receives
requests to purchase more ERCs than are | 15 |
| available for sale, allowances shall
be offered for sale to | 16 |
| qualifying sources on a pro-rata basis;
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| (2) any remaining Early Reduction Credits allocated | 18 |
| under 35 Ill. Adm.
Code 217, Subpart U or W, that could not | 19 |
| be allocated on a pro-rata, whole
allowance basis, but only | 20 |
| to those sources that made qualifying early
reductions of | 21 |
| 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 | 24 |
| W, that remain
after each 3-year allocation period that | 25 |
| could not be allocated on a
pro-rata, whole allowance basis | 26 |
| pursuant to the provisions of Subpart W; and
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| (4) any allowances requested from the New Source Set | 28 |
| Aside for those
sources that commenced operation, as | 29 |
| defined in 40 CFR Section 96.2, on or
after
January 1, | 30 |
| 2004.
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| (d-10) The selling price for ERC allowances shall be 70% of | 32 |
| the market
price index for 2005 NOx allowances, determined by | 33 |
| the Agency as follows:
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| (1) using the mean of 2 or more published market price | 35 |
| indexes for the
2005 NOx allowances as of October 6, 2003; | 36 |
| or
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| (2) if there are not 2 published market price indexes | 2 |
| for 2005 NOx
allowances as of October 6, 2003, the Agency | 3 |
| may use any reasonable indication
of market price.
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| (e) The Agency may adopt procedural rules, as necessary, to | 5 |
| implement the
regulations promulgated by the Board pursuant to | 6 |
| subsections (b) and (d) and
to implement subsections (d-5), | 7 |
| (d-10), (i), and (j)
subsection (i) of
this Section.
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| (f) Notwithstanding any provisions in subparts T, U, and W | 9 |
| of Section 217
of Title 35 of the Illinois Administrative Code | 10 |
| to the contrary, compliance
with the regulations promulgated by | 11 |
| the Board pursuant to subsections (b) and
(d) of this Section | 12 |
| is required by May 31, 2004.
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| (g) To the extent that a court of competent jurisdiction | 14 |
| finds a provision
of 40 CFR Part 96 invalid, the corresponding | 15 |
| Illinois provision shall
be stayed until such provision of 40 | 16 |
| CFR Part 96 is found to be valid or is
re-promulgated. To the | 17 |
| extent that USEPA or any court of competent
jurisdiction stays | 18 |
| the applicability of any provision of the NOx SIP Call to
any | 19 |
| person or circumstance relating to Illinois, during the period | 20 |
| of that
stay, the effectiveness of the corresponding Illinois | 21 |
| provision shall be
stayed. To the extent that the invalidity of | 22 |
| the particular requirement or
application does not affect
other | 23 |
| provisions or applications of the NOx SIP Call pursuant to 40 | 24 |
| CFR 51.121
or the NOx trading program pursuant to 40 CFR Part | 25 |
| 96 or 40 CFR Part 97, this
Section, and rules or regulations | 26 |
| promulgated hereunder, will be given
effect without the invalid | 27 |
| provisions or applications.
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| (h) Notwithstanding any other provision of this Act, any | 29 |
| source or other
authorized person that participates in the NOx | 30 |
| Trading Program shall be
eligible to exchange NOx allowances | 31 |
| with other sources in accordance with
this Section and with | 32 |
| regulations promulgated by the Board or the Agency.
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| (i) There is hereby created within the State Treasury an | 34 |
| interest-bearing
special fund to be known as the NOx Trading | 35 |
| System Fund . Moneys generated
from the sale of NOx allowances | 36 |
| from the New Source Set Aside or the sale of
allowances |
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| pursuant to subsection (d-5) of this Section shall be deposited | 2 |
| into
the Fund. This Fund
, which shall be used
and administered | 3 |
| by the Agency for the purposes stated below:
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| (1) To accept funds from persons who purchase NOx | 5 |
| 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 | 8 |
| that proceeds remain
after the Agency has recouped the | 9 |
| reasonable costs incurred by the Agency in
the | 10 |
| administration of the NOx SIP Call Program,
sales pro-rata | 11 |
| 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 | 13 |
| Source Set Aside
set-aside , in accordance
with regulations | 14 |
| that may be promulgated by the Agency; and
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| (3) To finance the reasonable costs incurred by the | 16 |
| 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 | 19 |
| credits
shall be deposited into the Clean Air Act Permit Fund | 20 |
| created pursuant to
Section 39.5(18)(d) of this Act, and the | 21 |
| proceeds
shall be used and administered by the Agency to | 22 |
| finance the costs associated
with the Clean Air Act Permit | 23 |
| Program.
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| (Source: P.A. 91-631, eff. 8-19-99; 92-12, eff. 7-1-01; 92-279, | 25 |
| eff.
8-7-01.)
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| Section 99. Effective date. This Act takes effect upon | 27 |
| becoming law.
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