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HomeMy WebLinkAboutAQ_F_0400050_20110218_CEM_EmissAlloc NCDENR North Carolina Department of Environment and Natural Resources Division of Air Quality Beverly Eaves Purdue Sheila C. Holman Dee Freeman Governor Director Secretary February 18, 2011 Mr. Terrance W. Ryan Vice President, Asset Management North Carolina Electric Membership Corporation P.O. Box 27306 Raleigh, NC 27611-7306 SUBJECT: 2011 Clean Air Interstate Rule(LAIR) Allowances from New Unit Set-aside for North Carolina Electric Membership Corporation (NCEMC) NCEMC —Anson Plant, Facility ID 0400050, Air Quality Permit No. 09492 Lilesville, Anson County, North Carolina NCEMC—I-Iamlet Plant, Facility ID 7700082, Air Quality Permit No. 09488 Hamlet,Richmond County, North Carolina Dear Mr. Ryan: Your letter of January 25, 2011 to Michael Abraczinskas, requested 2011 CAIR NOx allowances for NCEMC Anson Plant and NCEMC I Iamlet Plant. We have determined the facilities are considered new units under 40 CFR 96,142, LAIR NOx allowance allocations and 40 CPR 96,342, CAIR NOx Ozone Season allowance allocations. Paragraph (c)(3) of either regulation allows the CAIR designated representative to request control period CAIR NOx allowances based on the amount of NOx emissions during the calendar year immediately preceding the control period. Since the 2010 annual NOx emissions from the Anson Plant were I I I tons, which included 60 tons emitted during the ozone season (May 1 through September 30), the facility's approved 2011 annual NOx allocation is I I I tons which includes 60 tons allocated for the ozone season. Likewise, since the 2010 annual NOx emissions from the Hamlet Plant were 80 tons, which included 67 tons emitted during the ozone season, the facility's approved 2011 annual NOx allocation is 80 tons which includes 67 tons allocated for the ozone season. The Division of Air Quality (DAQ) will issue these allowances from North Carolina's new unit set-aside account through the US Environmental Protection Agency's (EPA) Clean Air Markets Division (CAMD). Should these units emit less than their allocated quantities, any remaining allowances may be banked, traded, or sold. Any subsequent allocation request will be limited to 1641 Mail Service Center,Raleigh,North Carolina 27699-1641 One 2728 Capital Blvd.,Raleigh,NC 27604 NorthCarolina Phone: 919-733-1728/FAX 919-733-1 81 2 1 Internet: www,ncair.org ;Vatuirally An Equal Opportunity/Affirmative Action Employer—50%Recycled110%Post Consumer Paper Mr. Terrance W. Ryan February 18, 2011 Page 2 the actual emission level. Should the combined total actual amount of NOx emissions from these units exceed their combined allocation, you must obtain sufficient allowances to cover that difference from the cap and trade market operated by CAMD or from banked allowances that you are holding. Until DAQ completes a periodic reallocation per 15A NCAC 02D .2413, you must submit an annual allocation request.North Carolina's NOx allocations for the requested year must be based upon the previous year's actual NOx emissions. Requests for CAIR NOx annual allowances should be made on or before May 1 st, and requests for CAIR NOx ozone season allowances should be made on or before February 1st. Please note that this year's scheduled periodic reallocation review will be delayed due to EPA's impending revisions to the CAIR rule. Should you have any questions regarding this approval, please contact Glenn Sappie at (919) 715- 3822 or Alan Drake at (919) 715-6256. Sincerely, Sheila C. Holman cc: Michael Abraczinskas, RCO Donald van der Vaart, RCO Michael Pjetraj, RCO Steven Vozzo, FRO Paula Branch, EPA Central File, Anson County Central File, Richmond County