Section 125-J:13 NOx-Emitting Generation Source Requirements.
I. Each NOx-emitting generation source emitting more than 7 pounds of NOx per megawatt hour generated shall be required to supply to the department NOx emissions information, and the amount of kilowatt hours actually produced during each period listed in subparagraph II(b). Additionally, except as provided either by paragraph I or II of this section, each NOx-emitting generation source shall acquire NOx budget allowances, emissions reduction credits, or other emissions reduction mechanisms on the same basis as a NOx budget source for all of its NOx emissions. However, NOx-emitting generation sources shall not be required to acquire NOx budget allowances, emissions reduction credits, or use emissions reduction mechanisms for the first 7 pounds of NOx emitted for each megawatt-hour of electricity produced and any amounts of NOx above such first 7 pounds that are attributable to the provision of other, non-electric services provided by the generating source, including but not limited to, steam and heat, and any amounts of NOx emitted during any period when the NOx-emitting generation source is operating to provide power during a power shortage at the request of any governmental authority or provider of electrical power to the public generally.
II. (a) NOx-emitting generation sources may, at the option of the generation source, make a direct payment for each ton of NOx emitted which would otherwise require the acquisition and use of emissions reduction mechanisms in accordance with paragraph I, in lieu of acquiring emissions reduction mechanisms.
(b) The payment provided for in subparagraph II(a) shall be made annually and shall be equal to the number of tons of NOx emitted by the NOx-emitting generation source, less the tons of NOx not requiring emission reduction mechanisms under paragraph I, times a fee of $200 per ton for tons emitted during the period running May 1 to September 30 and a fee of $100 per ton for tons emitted during the period running October 1 to April 30. These fees shall be multiplied by:
(1) Zero for tons emitted prior to January 1, 2000.
(2) One for tons emitted between January 1, 2000 and June 30, 2000, inclusive.
(3) Two for tons emitted between July 1, 2000 and June 30, 2001, inclusive.
(4) Three for tons emitted between July 1, 2001 and June 30, 2002, inclusive.
(5) Four for tons emitted between July 1, 2002 and June 30, 2003, inclusive.
(6) Five for tons emitted on or after July 1, 2003, so that fees for the May 1 to September 30 period are capped at $1,000 per ton and the fees for the October 1 to April 30 period are capped at $500 per ton after July 1, 2003.
(c) There is hereby established the nitrogen oxide emissions reduction fund. This nonlapsing, revolving special fund shall be continually appropriated to be expended by the department of environmental services in accordance with this section. The state treasurer shall invest the moneys so deposited as provided by law. Interest received on investments made by the state treasurer shall also be credited to the fund. All payments collected by the department under this paragraph shall be deposited in the nitrogen oxide emissions reduction fund and used to reduce NOx emissions by NOx-emitting generation sources. Fund moneys may be used for:
(1) The acquisition and retirement of NOx emissions reduction mechanisms by the department;
(2) Financial assistance for the purchase of NOx-emitting generation source equipment to obtain NOx emissions reductions from NOx-emitting generation sources located within the state, including but not limited to new technologies for such emissions control; and
(3) Refunds to NOx-emitting generation sources in proportion to their electric generation.
(d) If any governmental authority imposes NOx emissions reduction requirements applicable to facilities that are also NOx-emitting generation sources, then any emission reductions produced or secured under paragraph I shall be credited as emission reductions produced or secured by the NOx-emitting generation sources that made the reduction and any emission reductions produced or secured under paragraph II shall be credited as emission reductions produced or secured by all NOx-emitting generation sources in proportion to their payments to the dedicated fund.
III. The provisions of paragraphs I and II shall not apply:
(a) For a period of 8 years from the effective date of this section, to any electricity generating source which existed as of July 1, 1999, was permitted by the department, whether on a temporary or permanent basis, including any permit renewal or modification, whether applied for or issued, pertaining to any such generating source; and
(b) For a period of 6 years from the effective date of this section, to any electricity generating source which, as of May 1, 1999, filed an application for a permit with the division containing substantial but not necessarily complete information; and
(c) To any electricity generating source which replaces an electricity generating source described in subparagraph III(a) or (b) above and which emits fewer pounds of NOx per kilowatt-hour than the electricity generating source described in subparagraph III(a) or (b) above, but only for the period of time remaining in the exemption applicable to the replaced electrical generation source, as determined by the department, and only to the extent of the generating capacity of the replaced electrical generation source.
Source. 1999, 343:3, eff. Nov. 18, 1999.