Summary of CAIR NOx EGU Annual Trading Program

  • Applicability: A fossil fuel-fired stationary boiler, combustion turbine or combined cycle system is a electrical generating unit (EGU) if it serves a generator that has a nameplate capacity greater than 25 MWe and produces electricity for sale. Emission requirements begin January 1, 2009.
  • Compliance Requirements – mirrors the requirements for the NO X SIP Call Trading program as set forth in Part 217.Subpart W.
  • Permitting Requirements – mirrors the requirements for the NO X SIP Call Trading program as set forth in Part 217.Subpart W.
  • NO X Trading Budgets – The total base EGU CAIR budget is 76,230 tons per control period in 2009 through 2014. The Agency is considering a minimum 5% reduction for a new source set-aside,and a 25% reduction for environmental set-asides, clean coal technologies, and EGUs that implement equipment upgrades.
  • For the control period 2015 and thereafter, the total base EGU CAIR budget is 63,525, subject to reductions for the above set-asides.
  • Timing for NO X Allocations – By October 2006, the Agency will allocate for 2009, 2010, and 2011, and each October 31 thereafter for the control period three years hence.
  • Methodology for Calculating NO X Allocations – For each CAIR NO X EGU, the average of the unit’s control period gross electrical output 2 years prior to the allocation year, if available, otherwise the unit’s control period gross electrical output 1 year prior to the allocation year. Consideration for combined heat and power at an EGU will be given: an EGU that has equipment used to produce electricity and useful thermal energy for industrial commercial, heating, or cooling purposes through the sequential use of energy. Fuel type will be treated as it is in the model CAIR rule.
  • New Unit Set-Aside – The unit will receive an allocation based on its heat output until it rolls into the existing pool for allocations.
  • Compliance Supplement Pool – Allowances will be retired for public health benefit purposes.