Tenn. Comp. R. & Regs. 1200-03-27-.12 - NO[X] SIP CALL REQUIREMENTS FOR STATIONARY BOILERS AND COMBUSTION TURBINES

(1) Definitions. The terms used in this rule shall have the meanings set forth in this paragraph as follows:

(a) "Administrator" means the Administrator of the United States Environmental Protection Agency or the Administrator's duly authorized representative.

(b) "Affected facility" means the group of all affected units at a facility.

(c)

1. "Affected unit" means any unit identified as an existing affected unit in subparagraph (n) of this paragraph and any unit that has the following characteristics:

(i) The unit's maximum design heat input is greater than 250 MMBtu/hr;

(ii) The unit combusts, or will combust during any year, fossil fuel in the following amounts:

(I) Alone or in combination with any other fuel, where fossil fuel actually combusted comprises more than 50 percent of the annual heat input on a Btu basis during any year starting in 1995 or, if a unit had no heat input starting in 1995, during the last year of operation of the unit prior to 1995; or

(II) Alone or in combination with any other fuel, where fossil fuel is projected to comprise more than 50 percent of the annual heat input on a Btu basis during any year; and

(iii) The unit:

(I) Does not serve a generator producing electricity for sale at any time; or

(II) Serves a generator producing electricity for sale at any time and qualifies under 40 CFR § 72.6(b)(4) as an unaffected unit under the Acid Rain Program.

2. Notwithstanding part 1. of this subparagraph, any unit subject to 40 CFR 97 subpart EEEEE (CSAPR NO_x Ozone Season Group 2 Trading Program) shall not be an affected unit.

(d) "Allocate" or "allocation" means the determination by the Technical Secretary of the amount of allowances to be credited to an affected facility.

(e) "Allowance" (or "NO_x allowance") means a limited authorization issued by the Technical Secretary to emit one ton of nitrogen oxides ("NO_x") during a control period of a specified calendar year or of any calendar year thereafter.

(f) "Boiler" means an enclosed fossil- or other-fuel-fired combustion device used to produce heat and to transfer heat to recirculating water, steam, or other medium.

(g) "Clean Air Act" or "CAA" means the Clean Air Act, 42 U.S.C. § 7401, et seq.

(h) "Combustion turbine" means:

1. An enclosed device comprising a compressor, a combustor, and a turbine and in which the flue gas resulting from the combustion of fuel in the combustor passes through the turbine, rotating the turbine; and

2. If the enclosed device under part 1. of this subparagraph is combined cycle, any associated duct burner, heat recovery steam generator, and steam turbine.

(i) "Commence operation" means the later of November 15, 1990, or the date the unit begins any mechanical, chemical, or electronic process, including, with regard to a unit, start-up of a unit's combustion chamber.

1. For a unit that commences operation as defined in this subparagraph, and that subsequently undergoes a physical change (other than replacement of the unit by a unit at the same source), such date shall remain the date of commencement of operation of the unit, which shall continue to be treated as the same unit.

2. For a unit that commences operation as defined in this subparagraph, and that is subsequently replaced by a unit at the same source (e.g., repowered), such date shall remain the replaced unit's date of commencement of operation, and the replacement unit shall be treated as a separate unit with a separate date for commencement of operation.

(j) "Compliance deadline" means, for a control period, midnight of December 1 (if it is a business day), or midnight of the first business day thereafter (if December 1 is not a business day) immediately following the control period.

(k) "Control period" or "ozone season" means the period beginning May 1 of a calendar year and ending on September 30 of the same year, inclusive.

(l) "Emissions" means air pollutants exhausted from a unit or source into the atmosphere, as measured, recorded, and reported to the Technical Secretary by the Responsible Official in accordance with paragraph (11) of this rule.

(m) "Excess emissions" means any ton of nitrogen oxides emitted by an affected facility during a control period that exceeds the total number of allowances allocated to an affected facility for a control period.

(n) "Existing affected unit" means the following units:

Packaging Corporation of America	Unit 17
Tate & Lyle, Loudon	Units 34 and 35
Resolute FP US, Inc.	Units 11 and 12
Eastman Chemical Company	Units 83-23 and 83-24; Units 253-25, Units 253-26, Units 253-27, Units 253-28, and Units 253-29; Units 325-30 and 32531
The Valero Refining Company - Tennessee, LLC	Unit P049
TVA Cumberland	Startup Boilers A1 and A2

(o) "Fossil-fuel-fired" means, with regard to an affected unit, combusting any amount of fossil fuel (coal, natural gas, petroleum, or any form of solid, liquid, or gaseous fuel derived from such material) in any calendar year.

(p) "Heat input" means, with regard to a specified period of time, the product of the gross calorific value of the fuel (in Btu/lb) divided by 1,000,000 Btu/MMBtu and multiplied by the fuel feed rate into a combustion device (in pounds of fuel per unit of time), as measured and recorded in accordance with paragraph (11) of this rule. Heat input does not include the heat derived from preheated combustion air, recirculated flue gases, or exhaust from other sources.

(q) "Maximum design heat input" means the maximum amount of fuel per hour (in MMBtu/hr) that a unit is capable of combusting on a steady state basis as of the initial installation of the unit as specified by the manufacturer of the unit.

(r) "Most stringent state or federal NO_x emissions limitation" means, with regard to a unit, the lowest NO_x emissions limitation (in terms of lb/MMBtu) that is applicable to the unit under state or federal law, regardless of the averaging period to which the emissions limitation applies.

(s) "New affected unit" means any affected unit that is not an existing affected unit.

(t) "Operator" means any person who operates, controls, or supervises an affected unit or an affected facility and shall include, but not be limited to, any holding company, utility system, or plant manager of such a unit or source.

(u) "Owner" means any of the following persons:

1. Any holder of any portion of the legal or equitable title in an affected facility or an affected unit; or

2. Any holder of a leasehold interest in an affected facility or an affected unit.

(v) "Receive" or "receipt of" means, when referring to the Technical Secretary or the Administrator, to come into possession of a document, information, or correspondence (whether sent in hard copy or by authorized electronic transmission), as indicated in an official log, or by a notation made on the document, information, or correspondence, by the Technical Secretary or the Administrator in the regular course of business.

(w) "Replacement", "replace", or "replaced" means, with regard to a unit, the demolishing of a unit, or the permanent shutdown and permanent disabling of a unit, and the construction of another unit (the replacement unit) to be used instead of the demolished or shutdown unit (the replaced unit).

(x) "Responsible Official" has the same meaning as defined by Rule 1200-03-09-.02(11); however, a designated representative as defined by 40 CFR part 72, relative to actions, standards, requirements, or prohibitions under Title IV of the Clean Air Act or the regulations promulgated thereunder, including 40 CFR part 75, may also serve as the Responsible Official for any purposes under this rule.

(y) "Source" means all buildings, structures, or installations located in one or more contiguous or adjacent properties under common control of the same person or persons. For purposes of section 502(c) of the Clean Air Act, a "source," including a "source" with multiple units, shall be considered a single "facility."

(z)

1. "Submit" or "serve" means to send or transmit a document, information, or correspondence to the person specified in accordance with the applicable rule:

(i) In person;

(ii) By United States Postal Service; or

(iii) By other means of dispatch or transmission and delivery.

2. Compliance with any "submission" or "service" deadline shall be determined by the date of dispatch, transmission, or mailing and not the date of receipt.

(aa) "Technical Secretary" means the Technical Secretary of the Tennessee Air Pollution Control Board or a duly authorized representative.

(bb) "Ton" means 2,000 pounds. For the purpose of determining compliance with the ozone season NO_x emissions limitation, total tons of nitrogen oxides emissions for a control period shall be calculated as the sum of all recorded hourly emissions (or the mass equivalent of the recorded hourly emission rates) in accordance with paragraph (11) of this rule, but with any remaining fraction of a ton equal to or greater than 0.50 tons deemed to equal one ton and any remaining fraction of a ton less than 0.50 tons deemed to equal zero tons.

(cc) "Unit" means a stationary, fossil-fuel fired boiler or combustion turbine or other stationary, fossil-fuel-fired combustion device.

(2) Measurements, abbreviations, and acronyms. Measurements, abbreviations, and acronyms used in this rule are defined as follows:

Btu - British thermal unit

CO₂ - carbon dioxide

H₂O - water

hr - hour

lb - pound

MMBtu - million Btu

NO_x - nitrogen oxides

O₂ - oxygen

ppm - parts per million

scfh - standard cubic feet per hour

SO₂ - sulfur dioxide

(3) Applicability. Except as otherwise exempted by this rule, the provisions of this rule shall apply to each affected unit and each affected facility.

(4) Retired unit exemption.

(a)

1. Any affected unit that is permanently retired shall be exempt from this rule, except for the provisions of this paragraph and paragraphs (1), (2), (3), (6), subparagraphs (7)(c) through (f), and paragraphs (8) and (9) of this rule.

2. The exemption under part 1. of this subparagraph shall become effective the day on which the affected unit is permanently retired. Within 30 days of the unit's permanent retirement, the Responsible Official shall submit a report to the Technical Secretary and shall submit a copy of the statement to the Administrator. The report shall state, in a format prescribed by the Technical Secretary, that the unit was permanently retired on a specific date and that the unit will comply with the requirements of subparagraph (b) of this paragraph. The report shall include a signed statement by the Responsible Official certifying the truth, accuracy, and completeness of the information provided in the report.

(b) Special provisions.

1. An affected unit exempt under subparagraph (a) of this paragraph shall not emit any nitrogen oxides during a control period, starting on the date that the exemption takes effect.

2. For a period of 5 years from the date the records are created, the owners and operators of a unit exempt under subparagraph (a) of this paragraph shall retain, at the source that includes the unit, records demonstrating that the unit is permanently retired. The 5-year period for keeping records may be extended for cause, at any time before the end of the period, in writing by the Technical Secretary or the Administrator. The owners and operators of the unit bear the burden of proof that the unit is permanently retired.

3. Owners and operators shall comply with the requirements of this rule during all periods for which the exemption is not in effect.

(c) An exempt unit shall lose its exemption on the date on which the unit resumes operation.

(d) For the purpose of applying the monitoring, recordkeeping, and reporting requirements of paragraph (11) of this rule, a unit that loses its exemption under subparagraph (a) of this paragraph shall be treated as a unit that commences operation on the first date on which the unit resumes operation.

(5) State emissions budget. The state emissions budget for allowance allocations to affected units is 5,666 tons per control period for the control period in 2017 and thereafter.

(6) Allowance allocations for affected units:

(a) For each control period in 2017 and thereafter, the Technical Secretary will allocate NO_x allowances in the amounts specified in the State Implementation Plan to all existing affected units.

(b) For new affected units, the heat input (in MMBtu) used for calculating NO_x allowance allocations shall be determined in accordance with 40 CFR part 75, to the extent that the unit was subject to the requirements of 40 CFR part 75 for the year, or based on the best available data reported to the Technical Secretary for the unit.

(c) For each control period in 2017 and thereafter, the Technical Secretary will allocate allowances to new affected units in accordance with the following procedures:

1. The Technical Secretary will establish a new unit set-aside for each control period. For each control period, the new unit set-aside is established as the State emission budget established in paragraph (5) of this rule minus the number of NO_x allowances allocated in subparagraph (a) of this paragraph.

2. The Responsible Official of a new affected unit may request NO_x allowances from the Technical Secretary starting with the later of the control period in 2017 or the first control period in which the affected unit commences operation as provided in this part.

(i) The Responsible Official may request allowances for a control period in an amount not exceeding any of the following emission rates:

(I) The allowable NO_x emission rate under any applicable provision of 40 CFR part 60;

(II) The allowable NO_x emission rate under any state or federal construction or operating permit; and

(III) The allowable NO_x emission rate under any provision in Tennessee's State Implementation Plan.

(ii) The emission rates indicated in items (i)(I) through (III) of this part shall be converted to tons as follows:

(I) For units with four years of heat input data, the emission rate shall be multiplied by the average of the three highest years of heat input (of the most recent four-year period) as indicated in subparagraph (b) of this paragraph divided by 2,000, and rounded to the nearest whole number as appropriate.

(II) For units with less than four years of heat input data, the emission rate shall be multiplied by the unit's maximum design heat input in MMBtu/hr, multiplied by 3,672 hours per control period, divided by 2,000, and rounded to the nearest whole number as appropriate.

3. The Technical Secretary will review each allowance allocation request and allocate NO_x allowances for each control period as follows:

(i) The Technical Secretary will accept an allowance allocation request only if the request meets, or is adjusted by the Technical Secretary as necessary to meet, the requirements of part 2. of this subparagraph.

(ii) On or after February 1 before the control period, the Technical Secretary will determine the sum of NO_x allowances requested under subpart (i) of this part for the control period.

(iii) If the amount of NO_x allowances in the new unit set-aside for the control period is greater than or equal to the sum of NO_x allowances requested, then the Technical Secretary will allocate the amount of NO_x allowances requested to each new affected unit.

(iv) If the amount of NO_x allowances in the new unit set-aside for the control period is less than the sum of NO_x allowances requested, then the Technical Secretary will allocate to each new affected unit the amount of allowances requested, multiplied by the amount of allowances in the new unit set-aside for the control period, divided by the sum of NO_x allowances requested, and rounded to the nearest whole allowance as appropriate.

(v) The Technical Secretary will notify each Responsible Official that submitted an allowance allocation request of the amount of allowances (if any) allocated for the control period to the affected unit covered by the request.

(vi) After completion of the procedures specified in subparts (i) through (v) of this part, the Technical Secretary will allocate NO_x allowances remaining in the new unit set-aside to existing affected units, using the following formula and rounding to the nearest whole NO_x allowance as appropriate:

Unit's share of NO_x allowances = (Total NO_x allowances remaining in new unit set-aside) x (Unit's NO_x allowance allocation) ÷ (State trading program budget excluding new unit set-aside).

(d) Adjustment of allowance allocations for new and existing affected units. The Technical Secretary may, after appropriate notice and comment, adjust the allowance allocations for new and existing affected units as necessary to comply with applicable requirements promulgated by the Administrator or to provide additional allowances for new construction.

(7) NO_x emission requirements.

(a) As of the compliance deadline for a control period, the tons of total nitrogen oxides emissions for the control period from all affected units at an affected facility, as determined in accordance with paragraph (11) of this rule, shall not exceed the number of allowances allocated to the affected facility.

1. Allowances are available to an affected facility for a given control period only if the allowances were allocated to the affected facility for the same control period.

2. An affected unit shall be subject to the requirements of this paragraph for the control period starting on the later of May 1, 2017, or the deadline for meeting the unit's monitor certification requirements under paragraph (11) of this rule, and for each control period thereafter.

(b) Recordkeeping and reporting requirements.

1. The owners, operators, and Responsible Official of each affected facility and each affected unit shall comply with the recordkeeping and reporting requirements of this subparagraph.

2. The emissions measurements recorded and reported in accordance with paragraph (11) of this rule shall be used to determine compliance of each affected facility with the requirements of this paragraph.

3. Unless otherwise provided, the owners and operators of the affected facility shall maintain the following documents at the affected facility location for a period of 5 years from the date the document is created. This period may be extended for cause, at any time before the end of 5 years, in writing by the Technical Secretary or the Administrator.

(i) All emissions monitoring information, in accordance with paragraph (11) of this rule, provided that to the extent that paragraph (11) of this rule provides for a 3-year period for recordkeeping, the 3-year period shall apply.

(ii) Copies of all reports, compliance certifications, and other submissions and all records made or required under this paragraph.

(iii) Copies of any other submission used to demonstrate compliance with this paragraph.

4. Reserved.

(c) Excess emissions requirements. If an affected facility emits nitrogen oxides during any control period in excess of the number of allowances allocated to the affected facility, then:

1. The Technical Secretary may deduct allowances from the affected facility's allocation for the following control period, in an amount up to 3 times the number of tons of the facility's excess emissions;

2. The affected facility shall pay any fine, penalty, or assessment, or comply with any other remedy imposed, for the same violations, under the Clean Air Act or applicable state law; and

3. Each ton of such excess emissions and each day of such control period shall constitute a separate violation of this rule, the Clean Air Act, and applicable state law.

(d) Liability.

1. Each affected facility and each affected unit shall meet the requirements of this rule.

2. Any provision of this rule that applies to an affected facility, an affected unit, or a Responsible Official shall also apply to the owners and operators of such affected facility or affected unit.

3. Any person who knowingly violates any requirement or prohibition of this rule shall be subject to enforcement pursuant to applicable state or federal law.

4. Any person who knowingly makes a false material statement in any record, submission, or report required by this rule shall be subject to criminal enforcement pursuant to the applicable state or federal law.

(e) Effect on other authorities. No provision of this rule shall be construed as exempting or excluding the owners and operators and the Responsible Official of an affected facility or an affected unit from compliance with any other provision of the applicable, approved State Implementation Plan, a federally enforceable permit, or the Clean Air Act.

(f) An allowance does not constitute a property right.

(8) Computation of time.

(a) Unless otherwise stated, any time period scheduled under this rule to begin on the occurrence of an act or event shall begin on the day the act or event occurs.

(b) Unless otherwise stated, any time period scheduled under this rule to begin before the occurrence of an act or event shall be computed so that the period ends the day before the act or event occurs.

(c) Unless otherwise stated, if the final day of any time period under this rule falls on a weekend or a state or federal holiday, the time period shall be extended to the next business day.

(9) Technical Secretary's action on submissions.

(a) The Technical Secretary may review and conduct independent audits concerning any submission under this rule and make appropriate adjustments of the information in the submissions.

(b) The Technical Secretary may deduct allowances from or transfer allowances to an affected facility based on the information in the submissions.

(10) The Technical Secretary may, at his or her sole discretion and on his or her own motion, correct any error in the allocation of any affected facility. Within 10 business days of making such correction, the Technical Secretary will notify the Responsible Official for the affected facility.

(11) Monitoring and reporting.

(a) Owners, operators, and Responsible Officials of affected units shall implement a monitoring and reporting system sufficient to attribute ozone season NO_x mass emissions to each unit. The applicable monitoring, recordkeeping, and reporting requirements set out in 40 CFR Part 75 Subpart H, shall be the required monitoring method for all affected units unless and until an approved alternative monitoring method is incorporated into a federally enforceable construction or operating permit issued for the affected unit, at which time that approved monitoring method shall be the required monitoring method for the unit. NO_x mass emissions measurements recorded and reported in accordance with an approved monitoring method implemented pursuant to this subparagraph shall be used to determine compliance with the NO_x budgets allocated in accordance with paragraph (6) of this rule. For sources that monitor in accordance with 40 CFR Part 75 Subpart H, or a monitoring alternative for which EPA authorizes direct reporting to EPA pursuant to 40 CFR Part 75, the Responsible Official shall be authorized as provided in, and shall certify each submission and may delegate the Responsible Official's authority in accordance with, 40 CFR 72 subpart B. The approved alternative monitoring methods are:

1.40 CFR 60 Subpart D to determine NO_x emission rate in lb/MMBtu, multiplied by measured fuel consumption in MMBtu to determine NO_x mass emissions;

2.40 CFR 60 Subpart Db to determine NO_x emission rate in lb/MMBtu, multiplied by measured fuel consumption in MMBtu to determine NO_x mass emissions; or

3. An alternative monitoring method approved by EPA in a revision to the State Implementation Plan. Alternative methodologies must address monitoring, recordkeeping, and reporting procedures, including direct reporting of NO_x emissions to the Technical Secretary for each control period.

(b) Reserved.

(c) An application submitted to the Technical Secretary for a construction or operating permit requesting to use an alternative monitoring method listed in part (a)1. or (a)2. of this paragraph shall include a description of the overall monitoring program for conducting continuous in-stack monitoring for NO_x mass emissions. To be approvable, the program must address the following:

1. Specifications demonstrating that the proposed monitoring instruments will meet the requirements of 40 CFR 60, Appendix B;

2. Specifications for the proposed fuel flow meter and a discussion of how the fuel Btu content will be determined;

3. Proposed location(s) of the monitoring instruments in the effluent gas stream;

4. Proposed procedures for conducting performance specification testing of the monitoring instruments in units of the applicable standard;

5. Proposed ongoing monitoring instrument quality assurance procedures;

6. Procedures for addressing missing data; and

7. Proposed format for the reporting of data.

(d) An affected facility or affected unit monitoring in accordance with parts (a)1., (a)2., or (a)3. of this paragraph must directly report NO_x emissions to the Technical Secretary for each control period and may not report directly to EPA under 40 CFR Part 75 unless EPA expressly authorizes such reporting when approving a source-specific SIP revision.

(e) For each control period, the approved monitoring method in effect at midnight on the first day (May 1) of a control period shall be used for the entire control period.

(f) No later than January 31 following the end of each control period, the Technical Secretary will report to the Administrator the total NO_x mass emissions (in tons) from affected units subject to this rule and certify compliance with the NO_x budget established by paragraph (5) of this rule and the allowances allocated to each affected unit as specified in paragraph (6) of this rule.

(g) References to the Code of Federal Regulations in this paragraph (11) are to be regulations as published in the July 1, 2021, edition of the Code of Federal Regulations.

Notes

Tenn. Comp. R. & Regs. 1200-03-27-.12

New rule filed November 21, 2016; effective February 19, 2017. Amendments filed September 13, 2019; effective December 12, 2019. Amendments filed August 26, 2022; effective 11/24/2022.

Authority: T.C.A. §§ 4-5-201, et seq. and 68-201-101, et seq.