On March 1, 2001, the Illinois Pollution Control Board (IPCB) adopted Subpart U of 35 IAC Part 217 pursuant to the U.S. EPA NOx SIP Call. Subpart U implemented the NOx Trading Program to reduce NOx emissions during the ozone season from non Electric Generating Unit (non-EGU) emission sources in Illinois. Subpart U met the requirements of the federal NOx SIP Call for non-EGU's by providing for the participation of affected sources in the federal NOx trading program, by requiring affected sources to continuously monitor their NOx emissions, to maintain appropriate records, and to report their emissions to U.S. EPA for each ozone season beginning in 2004.
On May 12, 2005, the U.S. EPA adopted the Clean Air Interstate Rule (CAIR) to replace the NOx SIP Call trading program beginning with the 2009 control period. In addition to the previous NOx trading program for the ozone season, CAIR established an annual NOx trading program, and modified the Acid Rain trading program to further reduce emissions of sulfur dioxide. On August 23, 2007, the IPCB adopted Subparts D and E of 35 Ill. Adm. Code 225, the CAIR Annual NOx Trading Program and CAIR Ozone Season NOx Trading Program for EGUs. Under CAIR, U.S. EPA provided the States the option of including non-EGU's in the ozone season NOx trading program only. However, IEPA did not propose to include non-EGUs in the CAIR ozone season NOx trading program. The U.S. EPA approved Illinois' CAIR rules and USEPA has not allocated NOx allowances to non-EGU's in Illinois after the 2008 control period.
A proposal (August 19, 2010) is pending before the IPCB to sunset some of the requirements (specific to holding and trading allowances) under 35 IAC 217 Subpart U. The proposed rulemaking would eliminate the allowance holding and trading requirements for subject sources. However, the proposed revisions to Subpart U retain the requirements necessary for IEPA to continue to demonstrate compliance with the statewide NOx emissions budget established by the federal NOx SIP Call for affected non-EGU sources -- namely the requirements to continuously monitor NOx emissions, maintain appropriate records, and report NOx emissions to U.S. EPA. Thus, while the non-EGU NOx SIP call trading program elements will be sunsetted, ongoing compliance obligations will remain.
An IPCB hearing was held on December 9, 2010 regarding this proposal. Another hearing is scheduled for February 3, 2011. More information regarding this rulemaking can be found by clicking on the link.