Allowances will be allocated according to the requirements of this
section.
(1) Except as provided in paragraphs (2) and (3) of this section,
allowances will be calculated for grandfathered electric generating facilities
(EGF) using the following equation:
Attached Graphic
(A) In the East Texas Region:
(i) 0.14 pound nitrogen oxides (NOx )
per MMBtu;
(ii) 1.38 pounds sulfur dioxide (SO2
) per MMBtu only for coal-fired grandfathered EGFs.
(B) In the West Texas and El Paso Regions, 0.195 pounds NOx per MMBtu.
(2) For electing EGFs, the amount of allowances is
equal to emissions as listed in the 1997 Emissions Scorecard from EPA's Acid
Rain Program, or if not listed in the 1997 Emissions Scorecard, by a method
approved by the executive director, consistent with the emission reduction
requirements of this division; and in both cases, shall not exceed any of
the following:
(A) any annual emission limitation authorized under Chapter
116, Subchapter B of this title (relating to New Source Review Permits);
(B) an applicable state or federal requirement.
(3) The commission may invalidate any allowances
allocated to an electing EGF that authorize emissions in excess of applicable
state or federal requirements.
(4) If emissions of NOx or,
if applicable, SO2, exceed the amount of allowances
for a given control period, allowances for the next control period will be
reduced in an amount equal to the emissions exceeding the allowances in the
compliance account.
(5) Allowances will be allocated:
(A) initially, by:
(i) January 1, 2000, for grandfathered EGFs;
(ii) January 1, 2001, for electing EGFs; and municipal corporations,
electric cooperatives, and river authorities that choose to obtain a permit
under Chapter 116, Subchapter I of this title (relating to Electric Generating
Facility Permits) for any grandfathered or electing EGFs previously exempted
under §116.910(d) of this title (relating to Applicability);
(B) subsequently, by May 1 of each year, beginning in 2004.
(C) allowances will be allocated:
(i) initially by commission order for all grandfathered and
electing EGFs;
(ii) notwithstanding clause (iii) of this subparagraph, at
the beginning of each control period, the commission will deposit the same
amount of allowances into each grandfathered or electing EGF's compliance
account;
(iii) for electing EGFs, the annual deposit for any control
period may be adjusted to reflect new state or federal requirements.
(6) Allowances may be deducted from compliance
accounts following the review of trading reports required under §101.336(b)
of this title (relating to Emission Monitoring, Compliance, Demonstration,
and Reporting.)
(7) The commission shall maintain a registry of the allowances
in each compliance account. For each transfer, the registry shall include
the price paid per allowance. The registry shall not contain proprietary information.
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