DEPARTMENT OF ENVIRONMENTAL QUALITY  
AIR QUALITY DIVISION  
AIR POLLUTION CONTROL  
(By authority conferred on the director of the department of environmental quality by  
sections 5503 and 5512 of 1994 PA 451, MCL 324.5503 and 324.5512, and Executive  
Reorganization Order No. 1995-18, MCL 324.99903)  
PART 8. EMISSION LIMITATIONS AND PROHIBITIONS- OXIDES OF  
NITROGEN  
R 336.1801 Emission of oxides of nitrogen from non-sip call stationary sources.  
Rule 801. (1) As used in this rule:  
(a) "Capacity factor" means either of the following:  
(i) The ratio of a unit's actual annual electric output, expressed in megawatt hour, to  
the unit's nameplate capacity times 8,760 hours.  
(ii) The ratio of a unit's annual heat input, expressed in million British thermal units  
or equivalent units of measure, to the unit's maximum design heat input, expressed in  
million British thermal units per hour or equivalent units of measure, times 8,760 hours.  
(b) "Fossil fuel-fired" means the combustion of fossil fuel, alone or in combination  
with any other fuel, where the fossil fuel actually combusted comprises more than 50% of  
the fuel mass or annual heat input on a British thermal unit basis. Coke oven gas is a  
fossil fuel.  
(c) "Low-NOx burners" means 1 of several developing combustion technologies  
used to minimize the formation of emissions of nitrogen oxides. As applicable to cement  
kilns, low-NOx burners means a type of cement kiln burner system designed to minimize  
NOx formation by controlling flame turbulence, delaying fuel/air mixing, and  
establishing fuel-rich zones for initial combusting, that for firing of solid fuel in the  
burning end zone of a kiln's main burner includes an indirect firing system or comparable  
technique for the main burner in the burning end zone of the kiln to minimize the amount  
of primary air supplied through the burner. In an indirect firing system, 1 air stream is  
used to convey pulverized fuel from the grinding equipment and at least 1 or more other  
air streams are used to supply primary air to the burning end zone kiln burner of the kiln  
with the pulverized fuel, with intermediate storage of the fuel, and necessary safety and  
explosion prevention systems associated with the intermediate storage of fuel.  
(d) "Mid-kiln system firing" means the secondary firing in a kiln system by injecting  
solid fuel at an intermediate point in the kiln system using a specially designed heat  
injection mechanism for the purpose of decreasing NOx emissions through coal burning  
part of the fuel at lower temperatures and reducing conditions at the fuel injection point  
that may destroy some of the NOx.  
(e) "Non-sip call source" means any stationary source of oxides of nitrogen  
emissions that is not defined as an oxide of nitrogen budget source in R 336.1803.  
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(f) "Ozone control period" means the period of May 31, 2004, through September 30,  
2004, and the period of May 1 through September 30 each subsequent and prior year.  
(g) "Peaking unit" means a unit that has an average capacity factor of not more than  
10% during the previous 3 calendar years and a capacity factor of not more than 20% in  
each of those calendar years.  
(h) "Process heater" means any combustion equipment which is fired by a liquid fuel  
or a gaseous fuel, or both, and which is used to transfer heat from the combustion gases  
to a process fluid, superheated steam, or water.  
(i) "Unit" means a fossil fuel-fired combustion device.  
(j) "Utility system" means all interconnected units and generators which are subject  
to subrule (2) of this rule and which are operated by the same utility operating company  
or by common ownership and control.  
(2) An owner or operator of a fossil fuel-fired, electricity-generating utility unit  
which has the potential to emit more than 25 tons each ozone control period of oxides of  
nitrogen and which serves a generator that has a nameplate capacity of 25 megawatts or  
more shall comply with the emission limits during the ozone control period as follows:  
(a) By May 31, 2004, meet the least stringent of a utility system-wide average oxides  
of nitrogen emission rate of 0.25 pounds per million British thermal units heat input or an  
emission rate based on a 65% reduction of oxides of nitrogen from 1990 levels.  
(b) The date listed in subdivision (a) of this subrule may be extended by up to 2 years  
if an owner or operator makes an acceptable demonstration to the department that the  
additional time is necessary to avoid disruption of the energy supply in the state or if the  
additional time is necessary to comply with the provisions of this rule.  
(3) An owner or operator shall demonstrate compliance with the emission limits in  
subrule (2) of this rule as follows:  
(a) To demonstrate compliance with a utility system-wide average emission rate, the  
owner or operator shall show that the sum of the mass emissions from all units owned or  
operated by a utility that is subject to subrule (2) of this rule which occurred during the  
ozone control period, divided by the sum of the heat input from all units owned or  
operated by a utility that is subject to subrule (2) of this rule which occurred during the  
ozone control period is less than or equal to the limits in subrule (2) of this rule.  
(b) To demonstrate compliance with the percent reduction requirements of subrule  
(2) of this rule, the owner or operator shall provide calculations showing that the utility  
system average emission rate during each compliance ozone control period has been  
reduced below the 1990 ozone control period average emission rate by the applicable  
percent reduction listed in subrule (2) of this rule. The 1990 ozone control period  
average emission rate is the sum of the mass emissions from all units owned or operated  
by a utility that is subject to subrule (2) of this rule which occurred during the 1990 ozone  
control period divided by the sum of the heat input from all units owned or operated by a  
utility that is subject to subrule (2) of this rule which occurred during the 1990 ozone  
control period.  
(4) By May 31, 2004, an owner or operator of a fossil fuel-fired emission unit which  
has the potential to emit more than 25 tons of oxides of nitrogen each ozone control  
period, except for an emission unit that is subject to subrule (2) of this rule, and which  
has a maximum rated heat input capacity of more than 250 million British thermal units  
per hour shall comply with the following provisions, as applicable:  
Page 2  
(a) An owner or operator of a fossil fuel-fired, electricity-generating utility unit  
which serves a generator that has a nameplate capacity of less than 25 megawatts which  
has a maximum rated heat input capacity of more than 250 million British thermal units  
per hour shall comply with the appropriate oxides of nitrogen emission limit in table 81  
of this rule.  
(b) An owner or operator of a fossil fuel-fired boiler or process heater shall meet the  
emission limits contained in table 81 of this rule.  
(c) An owner or operator of a gas-fired boiler or process heater that fires gaseous fuel  
which contains more than 50% hydrogen by volume shall comply with an oxide of  
nitrogen emission limit of 0.25 pounds per million Btu heat input.  
(d) An owner or operator of a stationary internal combustion engine which is subject  
to the provisions of this rule and which has a maximum rated heat input capacity that is  
the heat input at 80 degrees Fahrenheit at sea level and takes into account inlet and  
exhaust losses shall comply with the following oxides of nitrogen emission limits, as  
applicable:  
(i) For a natural gas-fired stationary internal combustion engine - 14 grams of oxides  
of nitrogen per brake horsepower hour at rated output.  
(ii) For a diesel-fired stationary internal combustion engine - 10 grams of oxides of  
nitrogen per brake horsepower hour at rated output.  
(e) An owner or operator of a cement kiln that is subject to the provisions of this rule  
shall reduce kiln oxides of nitrogen emissions by any of the following methods:  
(i) Low oxides of nitrogen burners.  
(ii) Mid-kiln system firing.  
(iii) A 25% rate-based reduction of oxides of nitrogen from 1995 levels. Compliance  
with this paragraph shall be based on calculations showing that the emission rate, on a  
pounds of oxides of nitrogen per ton of clinker produced basis, during each compliance  
ozone control period, has been reduced below the 1995 ozone control period emission  
rate by 25%.  
(f) An owner or operator of a stationary gas turbine which is subject to the provisions  
of this rule and which has a maximum rated heat input capacity that is the heat input at 80  
degrees Fahrenheit at sea level and takes into account inlet and exhaust losses shall  
comply with an emission limit of 75 parts per million, dry volume, corrected to 15%  
oxygen, at rated capacity. The provisions of this rule do not apply to a stationary gas  
turbine that is subject to a new source performance standard contained in 40 C.F.R. part  
60, subpart gg, which is adopted by reference in R 336.1802a.  
(g) An owner or operator of an emission unit which is subject to this rule and which  
is not otherwise subject to the provisions of subdivisions (a) to  
(f) of this subrule shall submit a proposal for oxides of nitrogen control by November  
17, 2000. An owner or operator shall implement the control program by May 31, 2004,  
or by an alternate date approved by the department. The owner or operator shall obtain  
department approval of the proposed control program. The proposal for oxides of  
nitrogen control shall include all of the following information:  
(i) A listing of reasonably available oxides of nitrogen control technologies,  
including the costs of installation and operation, cost of control per ton of oxides of  
nitrogen reduced, and the projected effectiveness of the proposed control technologies.  
The owner or operator shall use costing methodologies acceptable to the department.  
Page 3  
(ii) The technology selected for controlling oxides of nitrogen emissions from the  
emission unit, considering technological and economic feasibility.  
(iii) A proposal for testing, monitoring, and reporting oxides of nitrogen emissions.  
(h) The compliance date listed in this subrule may be extended by up to 2 years if an  
owner or operator makes an acceptable demonstration to the department that the  
additional time is necessary to comply with the provisions of this rule. The owner or  
operator of a unit subject to subrules (2) and 4(a) to (f) of this rule may request an  
alternate emission limit or control requirement if there is an acceptable demonstration  
made to the department that compliance with the limits in table 81, or other limits or  
control requirements, is not reasonable. The request for an alternate emission limit or  
control requirement shall be submitted to the department within 60 days of the effective  
date of this amendatory rule and shall include all of the information listed in subdivision  
(g)(i) to (iii) of this subrule.  
(5) The method for determining compliance with the emission limits in subrule (4) of  
this rule is as follows:  
(a) If the emission limit is in the form of pounds of oxides of nitrogen per million  
British thermal unit, then the unit is in compliance if the sum of the mass emissions from  
the unit that occurred during the ozone control period, divided by the sum of the heat  
input from the unit that occurred during the ozone control period, is less than or equal to  
the limit in subrule (4) of this rule.  
(b) For an emission unit not subject to subdivision (a) of this subrule, the method for  
determining compliance shall be a method acceptable to the department.  
(6) An owner or operator of a source of oxides of nitrogen that is subject to the  
provisions of this rule may participate in Michigan's emission trading program, being R  
336. 2201 to R 336.2218.  
(7) The owner or operator of an emission unit subject to subrule (2) of this rule shall  
measure oxides of nitrogen emissions with a continuous emission monitoring system; an  
alternate method as described in 40 C.F.R. part 60 or 75 and acceptable to the  
department; or a method currently in use and acceptable to the department, including  
methods contained in existing permit conditions. The provisions of 40 C.F.R. parts 60  
and 75 are adopted by reference in R 336.1802a.  
(8) The owner or operator of a boiler, process heater, stationary internal combustion  
engine, stationary gas turbine, cement kiln, or any other stationary emission unit that is  
subject to the provisions of subrule (4) of this rule shall measure oxides of nitrogen  
emissions by any of the following:  
(a) Performance tests described in subrule (9) of this rule.  
(b) Through the use of a continuous emission monitor in accordance with the  
provisions of subrule (11) of this rule.  
(c) According to a schedule and using a method acceptable to the department.  
(9) An owner or operator of an emission unit that measures oxides of nitrogen  
emissions by performance tests as specified in subrule (8) of this rule shall do all of the  
following:  
(a) Conduct an initial performance test not later than 90 days after the compliance  
deadline. For an emission unit that is not in service on or after the compliance deadline,  
the owner or operator shall contact the department and schedule an alternate initial  
performance test as agreed to by the department.  
Page 4  
(b) After the initial performance test, conduct a compliance performance test each  
ozone control period or according to the following schedule:  
(i) After 2 consecutive ozone control periods in which the emission unit  
demonstrates compliance, an owner or operator shall conduct performance tests at least  
once every 2 years during the ozone control period.  
(ii) After a total of 4 consecutive ozone control periods in which the emission unit  
has remained in compliance, an owner or operator shall conduct performance tests at least  
once every 5 years during the ozone control period.  
(c) If an emission unit is not in compliance at the end of an ozone control period,  
then the owner or operator shall conduct a compliance performance test each ozone  
control period, but can again elect to use the alternative schedule specified in subdivision  
(b) of this subrule.  
(d) An owner or operator shall submit 2 copies of each compliance performance test  
to the department within 60 days of completion of the testing. The test results shall be  
presented and include data as requested in the department format for submittal of source  
emission test plans and reports. All performance test reports shall be kept on file at the  
plant and made available to the department upon request.  
(10) An owner or operator of an emission unit who is required to conduct  
performance testing under subrule (8) of this rule shall submit a test plan to the  
department, not less than 30 days before the scheduled test date. To ensure proper  
testing, the plan shall supply the information in the department format for submittal of  
source emission test plans and reports. The owner or operator shall give the department a  
reasonable opportunity to witness the tests.  
(11) An owner or operator of an emission unit that measures oxides of nitrogen  
emissions by a continuous emission monitoring system or an alternate method, as  
specified in subrule (7) or (8) of this rule, shall do either of the following:  
(a) Use procedures set forth in 40 C.F.R., part 60, subpart A and appendix B, and  
comply with the quality assurance procedures in appendix F, or 40 C.F.R., part 75, and  
associated appendices, as applicable and acceptable to the department. Title 40 C.F.R.,  
parts 60 and 75, are adopted by reference in R 336.1802a.  
(b) An owner or operator of an emission unit who uses a continuous emission  
monitoring system to demonstrate compliance with this rule and who has already  
installed a continuous emission monitoring system for oxides of nitrogen pursuant to  
other applicable federal, state, or local rules shall meet the installation, testing, operation,  
calibration, and reporting requirements specified by federal, state, or local rules.  
(12) The owner or operator of an emission unit that is subject to this rule shall submit  
a summary report, in an acceptable format, to the department within 60 days after the end  
of each ozone control period. The report shall include all of the following information:  
(a) The date, time, magnitude of emissions, and emission rates where applicable, of  
the specified emission unit or utility system.  
(b) If emissions or emission rates exceed the emissions or rates allowed for in the  
ozone control period by the applicable emission limit, the cause, if known, and any  
corrective action taken.  
(c) The total operating time of the emission unit during the ozone control period.  
(d) For continuous emission monitoring systems, system performance information  
shall include the date and time of each period during which the continuous monitoring  
Page 5  
system was inoperative, except for zero and span checks, and the nature of the system  
repairs or adjustments. When the continuous monitoring system has not been  
inoperative, repaired, or adjusted, the information shall be stated in the report.  
(13) Table 81 reads as follows:  
Table 81  
Boilers and process heaters with  
heat input capacity of 250 million Btu or more  
oxides of nitrogen (NOx) emission limitations  
(pounds NOx per million Btu of heat input  
averaged over the ozone control period)  
Fuel type  
Emission limit  
Natural gas  
Distillate oil  
Residual oil  
0.20  
0.30  
0.40  
Coal  
(1) Coal spreader stoker  
(2) Pulverized coal fired  
0.40  
0.40  
Gas (other than natural gas)1  
0.25  
For units operating with a combination of gas, oil, or coal, a variable emission  
limit calculated as the heat input weighted average of the applicable emission limits  
shall be used. The emission limit shall be determined as follows:  
Emission limit = a(0.20) + b(applicable oil limit) + c(applicable coal limit) +  
d(0.25)  
Where:  
a = Is the percentage of total heat input from natural gas  
b = Is the percentage of total heat input from oil  
c = Is the percentage of total heat input from coal  
d = Is the percentage of total heat input from gas (other than natural gas)  
1
This may include a mixture of gases. In this case, natural gas may be part of the  
mixture.  
(14) The provisions of this rule do not apply to the following emission unit or units:  
(a) A unit that is subject to oxides of nitrogen standards, which have been  
promulgated in a federal implementation plan under section 110(c) of the clean air act,  
required under section 126 of the clean air act, or promulgated in a federal regulation  
under 40 C.F.R. part 51 or part 60 and which are equally stringent or more stringent than  
this rule.  
Page 6  
(b) A unit that is subject to any other rule included in this part.  
(c) A peaking unit. The owner or operator shall retain records of capacity for a  
period of 5 years demonstrating that the unit meets the definition of a peaking unit. The  
unit shall become subject to the provisions of this rule on January 1 of the year following  
failure to meet the peaking unit definition.  
History: 1998-2000 AACS; 2002 AACS; 2009 AACS.  
R 336.1802 Applicability under oxides of nitrogen budget trading program.  
Rule 802. (1) This rule establishes an oxides of nitrogen emissions budget and  
oxides of nitrogen trading program for electricity-generating units and large affected  
units as described in these rules. The following units in the Michigan fine grid zone and  
the unit at Detroit Edison Company's Harbor Beach facility in Huron county shall be  
oxides of nitrogen budget units, and any source that includes 1 or more units shall be an  
oxides of nitrogen budget source and shall be subject to the requirements of this rule:  
(a) An electricity-generating unit as defined in R 336.1803.  
(b) A large affected unit as defined in R 336.1803.  
(2) A unit described in subrule (1) of this rule shall not be an oxides of nitrogen  
budget unit, if the unit has a federally enforceable permit that meets any of the following  
requirements:  
(a) The federally enforceable permit includes terms and conditions that restrict the  
unit to burning only natural gas or fuel oil during ozone control periods beginning in  
2004 and each ozone control period thereafter.  
(b) The federally enforceable permit includes terms and conditions that restrict the  
unit's operation during each ozone control period by 1 of the following methods such that  
the unit's potential oxides of nitrogen mass emissions for the ozone control period are  
limited to 25 tons or less:  
(i) Restrict the mass emissions to 25 tons or less of oxides of nitrogen as measured  
by a certified continuous emission monitoring system in accordance with 40 C.F.R. §75,  
subpart H, which is adopted by reference in R 336.1801(7).  
(ii) Restrict the unit's operating hours to no more than the number calculated by  
dividing 25 tons of potential oxides of nitrogen mass emissions by the unit's maximum  
potential hourly oxides of nitrogen mass emissions. The maximum potential hourly  
oxides of nitrogen mass emissions shall be determined by multiplying a rate in either  
subparagraph (A) or (B) of this paragraph by the value in subparagraph (C) of this  
paragraph:  
(A) The default oxides of nitrogen emission rate in 40 C.F.R. §75.19, table LM 2,  
that would otherwise be applicable assuming that the unit burns only the type of fuel, for  
example, only natural gas or fuel oil, that has the highest default oxides of nitrogen  
emission factor of any type of fuel that the unit is allowed to burn under the fuel use  
restriction in subdivision (a) of this subrule. Title 40 C.F.R., part 75, is adopted by  
reference in R 336.1801.  
(B) The maximum oxides of nitrogen emission rate established in accordance with  
40 C.F.R. §75.19(c)(iv), which is adopted by reference in R 336.1801(7).  
(C) The unit's maximum rated hourly heat input. The owner or operator of the unit  
may petition the department to use a lower value for the unit's maximum rated hourly  
Page 7  
heat input than the value as defined in 40 C.F.R.§96.2, which is adopted by reference in  
R 336.1803. The department may approve the lower value if the owner or operator  
demonstrates that the maximum hourly heat input specified by the manufacturer or the  
highest observed hourly heat input, or both, are not representative, and that the lower  
value is representative of the unit's current capabilities because modifications have been  
made to the unit limiting its capacity permanently.  
(iii) Restrict the amount of fuel that can be used based on total heat input by dividing  
25 tons by an oxides of nitrogen mass emission rate in either subparagraph (A) or (B) of  
paragraph (ii) of this subdivision and multiplying by the fuel heat content using the  
highest default gross calorific value under §75.19, table LM-5, and using a billing fuel  
flow meter to determine the quantity of fuel being used. Title 40 C.F.R. Part 75 is  
adopted by reference in R 336.1801.  
(c) The federally enforceable permit includes all of the following requirements:  
(i) The owner or operator of the unit shall retain records on site for a period of 5  
years. The records shall show hours of operation for units with the operating hours  
restriction, volumes of fuel burned and maximum default gross calorific values for units  
with the heat input restriction, continuous emission monitoring data for units with the  
continuous emission monitoring exemption, and all other information necessary to  
demonstrate that requirements of the permit related to these restrictions were met  
(ii) The owner or operator of the unit shall report the unit's hours of operation, heat  
input, or continuous emission monitoring systems measured oxides of nitrogen emissions  
to the department by November 1 of each year for which the unit is subject to the  
federally enforceable permit. If the hours of operation are required to be reported, the  
owner or operator shall treat any partial hour of operation as a whole hour of operation.  
The unit shall be subject only to the requirements of this subrule, throughout the effective  
period of the federally enforceable permit under this subrule.  
(iii) The owners and operators of the unit shall establish or specify a general account.  
(iv) After recording an oxides of nitrogen allowance allocation under R 336.1810,  
the United States environmental protection agency shall deduct from the general account  
under paragraph (iii) of this subdivision oxides of nitrogen allowances that are allocated  
for the same or a prior ozone season control period as the recorded oxides of nitrogen  
allowances allocation and that equal the oxides of nitrogen emission limitation, in tons of  
oxides of nitrogen, on which the unit's exemption under this subdivision is based. The  
NOx authorized account representative shall ensure that the general account contains the  
oxides of nitrogen allowances necessary for completion of the deduction.  
(3) The department shall notify the United States environmental protection agency,  
in writing, within 30 days of either of the following scenarios:  
(a) A unit is issued a federally enforceable permit under subrule (2) of this rule.  
(b) Any of the following provisions apply to a unit's federally enforceable permit  
previously issued by the department under subrule (2) of this rule:  
(i) The permit is revised to remove any restriction.  
(ii) The permit includes any restriction that is no longer applicable.  
(iii) The permit conditions do not comply with any restriction.  
(4) A unit shall be treated as commencing operation, and for a unit under subrule  
(1)(a) of this rule commencing commercial operation, on September 30 of the ozone  
control period in which either of the following conditions apply:  
Page 8  
(a) The fuel use restriction, operating hours, or emissions restriction is no longer  
applicable.  
(b) The unit does not comply with the fuel use restriction, operating hours, or  
emissions restriction.  
History: 2002 MR 22, Eff. Dec. 4, 2002; 2004 MR 10, Eff. May 20, 2004.  
R 336.1802a Adoption by reference.  
Rule 802a. The following documents are adopted by reference in these rules.  
Copies are available for inspection and purchase at the Air Quality Division, Department  
of Environmental Quality, 525 West Allegan Street, P.O. Box 30260, Lansing, Michigan  
48909-7760, at the cost at the time of adoption of these rules (AQD price). Copies may  
be obtained from the Superintendent of Documents, Government Printing Office, P.O.  
Box 371954, Pittsburgh, Pennsylvania, 15250 7954, at the cost at the time of adoption of  
these rules (GPO price), or on the United States government printing office internet web  
site at http://www.gpoaccess.gov:  
(a) Title 40 C.F.R., part 60, "Standards of Performance for New Stationary Sources"  
(2007), AQD price $68.00, appendices $67.00; GPO price $58.00, appendices $57.00.  
(b) Title 40 C.F.R., §72.2 definitions under the "Acid Rain Program General  
Provisions" (January 24, 2008), AQD price $72.00; GPO price $62.00.  
(c) Title 40 C.F.R. §72.8, "Retired Units Exemption" (January 24, 2008), AQD price  
$72.00; GPO price $62.00  
(d) Title 40 C.F.R., part 75, "Continuous Emission Monitoring" (January 24, 2008),  
AQD price $72.00; GPO price $62.00.  
(e) Title 40 C.F.R., §96.54, "Compliance" (2006), AQD price $70.00; GPO price  
$60.00.  
(f) Title 40 C.F.R., §97.2, 97.102, 97.103, 97.302 and 97.303, definitions under the  
"Federal Oxides of Nitrogen (NOX) Budget Trading Program and CAIR NOX and Sulfur  
Dioxide (SO2) Trading Programs" (October 17, 2007), AQD price $70.00; GPO price  
$60.00.  
(g) Title 40 C.F.R., §97.104, "Applicability" (October 17, 2007), AQD price $70.00;  
GPO price $60.00.  
(h) Title 40 C.F.R., §§97.180 to 97.188 and §§97.380 to 97.388, opt-in provisions  
under the "Federal Oxides of Nitrogen (NOX) Budget Trading Program and CAIR NOX  
and Sulfur Dioxide (SO2) Trading Programs" (October 17, 2007), AQD price $70.00;  
GPO price $60.00.  
(i) Title 40 C.F.R., §97.304, Applicability (October 17, 2007), AQD price $70.00;  
GPO price $60.00.  
History: 2007 AACS.; 2009 AACS.  
R 336.1803 Definitions.  
Rule 803. (1) The provisions of 40 C.F.R. §96.2 are adopted by reference in this  
rule. The definitions for the oxides of nitrogen budget trading program in 40 C.F.R.  
§96.2 are applicable to R 336.1802 to R 336.1816. In addition, all of the following  
Page 9  
definitions apply as indicated, including a modification to the "NOX budget trading  
program" definition:  
(a) "Electric-generating unit (EGU)" means the following:  
(i) For units that commenced operation before January 1, 1997, a unit serving a  
generator during 1995 or 1996 that had a nameplate capacity of more than 25 megawatts  
and produced electricity for sale.  
(ii) For units that commenced operation on or after January 1, 1997, and before  
January 1, 1999, a unit serving a generator during 1997 or 1998 that had a nameplate  
capacity of more than 25 megawatts and produced electricity for sale.  
(iii) For units that commence operation on or after January 1, 1999, a unit serving a  
generator at any time that has a nameplate capacity of more than 25 megawatts and  
produces electricity for sale.  
(b) "Large affected unit" means the following:  
(i) For units that commenced operation before January 1, 1997, a unit that has a  
maximum design heat input of more than 250,000,000 Btu's per hour and that did not  
serve during 1995 or 1996 a generator producing electricity for sale.  
(ii) For units that commenced operation on or after January 1, 1997, and before  
January 1, 1999, a unit that has a maximum design heat input of more than 250,000,000  
Btu's per hour and that did not serve during 1997 or 1998 a generator producing  
electricity for sale.  
(iii) For units that commence operation on or after January 1, 1999, a unit that has a  
maximum design heat input of more than 250,000,000 Btu's per hour and to which either  
of the following provisions applies:  
(A) The unit at no time serves a generator producing electricity for sale.  
(B) The unit at any time serves a generator producing electricity for sale, if any such  
generator has a nameplate capacity of 25 megawatts or less and has the potential to use  
not more than 50% of the potential electrical output capacity of the unit.  
(c) "Michigan fine grid zone" means the geographical area that includes all of the  
following counties:  
(i) Allegan.  
(ii) Barry.  
(iii) Bay.  
(iv) Berrien.  
(v) Branch.  
(vi) Calhoun.  
(vii) Cass.  
(viii) Clinton.  
(ix) Eaton.  
(x) Genesee.  
(xi) Gratiot.  
(xii) Hillsdale.  
(xiii) Ingham.  
(xiv) Ionia.  
(xv) Isabella.  
(xvi) Jackson.  
(xvii) Kalamazoo.  
Page 10  
(xviii) Kent.  
(xix) Lapeer.  
(xx) Lenawee.  
(xxi) Livingston.  
(xxii) Macomb.  
(xxiii) Mecosta.  
(xxiv) Midland.  
(xxv) Monroe.  
(xxvi) Montcalm.  
(xxvii) Muskegon.  
(xxviii) Newaygo.  
(xxix) Oakland.  
(xxx) Oceana.  
(xxxi) Ottawa.  
(xxxii) Saginaw.  
(xxxiii) Saint Clair.  
(xxxiv) Saint Joseph.  
(xxxv) Sanilac.  
(xxxvi) Shiawassee.  
(xxxvii) Tuscola.  
(xxxviii) Vanburen.  
(xxxix) Washtenaw.  
(xxxx) Wayne.  
(d) "NOX budget trading program" means a multi-state nitrogen oxides air pollution  
control and emission reduction program established pursuant to 40 C.F.R. part 96 and  
part 97. The provisions of 40 C.F.R. part 96 and part 97 are adopted by reference in  
subrule (2) of this rule.  
(e) "Ozone control period" means the period of May 31, 2004, through September  
30, 2004, and the period of May 1 to September 30 each subsequent and prior year. The  
term "ozone control period" replaces the term "control period."  
(2) For R 336.1803 to R 336.1816, the provisions of 40 C.F.R. part 96 and part 97  
(2007) are adopted by reference, except as modified in R 336.1804, R 336.1805, R  
336.1808, R 336.1811, R 336.1813, and R 336.1815.Copies may be inspected at the  
Lansing office of the air quality division of the department of environmental quality.  
Copies of the regulations may be obtained from the Department of Environmental  
Quality, Air Quality Division, 525 West Allegan Street, P.O. Box 30260, Lansing,  
Michigan 48909-7760, at a cost as of the time of adoption of this rule of $70.00. A copy  
may also be obtained from the Superintendent of Documents, Government Printing  
Office, P.O. Box 371954, Pittsburgh, Pennsylvania 15250-7954, at a cost as of the time  
of adoption of this rule of $60.00; or on the United States government printing office  
(3) Definitions under the clean air interstate rule NOX ozone season and annual  
trading programs in 40 C.F.R. §97.102 and §97.302 are applicable to R 336.1821 to R  
336.1834. In addition, all of the following definitions apply as indicated:  
(a) "Biomass" means the same as defined in 40 C.F.R §97.102 and §97.302.  
(b) "CAIR" means clean air interstate rule.  
Page 11  
(c) "Cogeneration unit" means the same as defined in 40 C.F.R §97.102 and §97.302.  
(d) "Commence commercial operation" means the same as defined in 40 C.F.R  
§97.102 and §97.302.  
(e) "Commence operation" means the same as defined in 40 C.F.R §97.102 and  
§97.302.  
(f) Electric generating unit or "EGU" means any of the following:  
(i) For the purposes of the CAIR NOX ozone season trading program; a CAIR NOX  
ozone season unit as defined under 40 C.F.R. §97.304,  
(ii) For the purposes of the CAIR NOX ozone season trading program, electric  
generating units required to be in Michigan's NOX SIP budget trading program that are  
not already included under 40 C.F.R.§96.304, which are defined as the following units  
located in Michigan's fine grid zone:  
(A) For units that commenced operation before January 1, 1997, a unit serving a  
generator during 1995 or 1996 that had a nameplate capacity of more than 25 megawatts  
and produced electricity for sale.  
(B) For units that commenced operation on or after January 1, 1997, and before  
January 1, 1999, a unit serving a generator during 1997 or 1998 that had a nameplate  
capacity of more than 25 megawatts and produced electricity for sale.  
(C) For units that commence operation on or after January 1, 1999, a unit serving a  
generator at any time that has a nameplate capacity of more than 25 megawatts and  
produces electricity for sale.  
(iii) For purposes of the CAIR NOX annual trading program; a CAIR NOX unit as  
defined under 40 C.F.R. §97.104.  
(g) "Equivalent," for the purpose of allocating allowances pursuant to Michigan's  
CAIR programs, is determined using equation F-5 or F-6 in 40 C.F.R. part 75, appendix  
F.  
(h) "Existing EGUs" for allocation purposes under R 336.1821 to R 336.1834, means  
electric generating units that commenced operations prior to the most recent year of the  
5-year period used to calculate the allocations pursuant to these rules.  
(i) "Fossil fuel-fired," means as defined in 40 C.F.R. §97.2 for the purposes of  
determining applicability for units that are considered either of the following:  
(i) EGUs as defined pursuant to R 336.1803(3)(f)(ii).  
(ii) Non-EGUs as defined pursuant to R 336.1803(3)(p).  
(j) "Fuel types," for the allocation of allowances under Michigan's CAIR programs  
only, means solid, liquid, and gaseous fuel. The following definitions apply to fuel:  
(i) "Solid fuel" includes, but is not limited to coal, biomass, tire-derived fuels, and  
pet coke.  
(ii) "Liquid fuel" includes, but is not limited to petroleum-based oils, glycerol,  
vegetable-based and animal waste-based liquids.  
(iii) "Gaseous fuel" includes, but is not limited to coke oven gas, natural gas,  
propane, coal gas, blast furnace gas, and methane derived from animal wastes.  
(k) "Maximum design heat input" means the same as defined in 40 C.F.R §97.102  
and §97.302.  
(l) "Michigan fine grid zone" means the geographical area that includes all of the  
following counties:  
(i) Allegan.  
Page 12  
(ii) Barry.  
(iii) Bay.  
(iv) Berrien.  
(v) Branch.  
(vi) Calhoun.  
(vii) Cass.  
(viii) Clinton.  
(ix) Eaton.  
(x) Genesee.  
(xi) Gratiot.  
(xii) Hillsdale.  
(xiii) Ingham.  
(xiv) Ionia.  
(xv) Isabella.  
(xvi) Jackson.  
(xvii) Kalamazoo.  
(xviii) Kent.  
(xix) Lapeer.  
(xx) Lenawee.  
(xxi) Livingston.  
(xxii) Macomb.  
(xxiii) Mecosta.  
(xxiv) Midland.  
(xxv) Monroe.  
(xxvi) Montcalm.  
(xxvii) Muskegon.  
(xxviii) Newaygo.  
(xxix) Oakland.  
(xxx) Oceana.  
(xxxi) Ottawa.  
(xxxii) Saginaw.  
(xxxiii) Saint Clair.  
(xxxiv) Saint Joseph.  
(xxxv) Sanilac.  
(xxxvi) Shiawassee.  
(xxxvii) Tuscola.  
(xxxviii) Vanburen.  
(xxxix) Washtenaw.  
(xxxx) Wayne.  
(m) "Nameplate capacity" means the same as defined in 40 C.F.R §97.102 and  
§97.302.  
(n) "New EGUs," for allocation purposes under R 336.1821 to R 336.1834, means  
electric generating units that are commencing operation or projected to commence  
operation on or after January 1 of the most recent year of the 5-year period used to  
calculate the allocations pursuant to these rules.  
Page 13  
(o) "Newly-affected EGUs," for allocation purposes under R 336.1821 to R  
336.1834, means existing EGUs located outside the Michigan fine grid zone or existing  
EGUs located within the Michigan fine grid zone which were exempt from the federal  
NOX budget program. This definition is applicable for the 2009 CAIR NOX ozone  
season program only and after that time the newly affected EGUs are considered existing  
EGUs. This definition excludes the Harbor Beach power plant which was previously  
included as an EGU in the NOX SIP Budget trading program and is considered existing  
for the purposes of CAIR NOX ozone season program.  
(p) "Non-EGUs" means the following units located in Michigan's fine grid zone:  
(i) For units that commenced operation before January 1, 1997, a unit that has a  
maximum design heat input of more than 250,000,000 Btu's per hour and that did not  
serve during 1995 or 1996 a generator producing electricity for sale.  
(ii) For units that commenced operation on or after January 1, 1997, and before  
January 1, 1999, a unit that has a maximum design heat input of more than 250,000,000  
Btu's per hour and that did not serve during 1997 or 1998 a generator producing  
electricity for sale.  
(iii) For units that commence operation on or after January 1, 1999, a unit that has a  
maximum design heat input of more than 250,000,000 Btu's per hour and to which either  
of the following provisions applies:  
(A) The unit at no time serves a generator producing electricity for sale.  
(B) The unit at any time serves a generator producing electricity for sale, if any such  
generator has a nameplate capacity of 25 megawatts or less and has the potential to use  
not more than 50% of the potential electrical output capacity of the unit.  
(q) "Ozone Season" means May 1 to September 30 of each calendar year.  
(r) "Renewable energy source," for allocation purposes under R 336.1821 to  
R 336.1826, means a source, located in Michigan, that generates electricity by solar,  
wind, geothermal, or hydroelectric processes, excluding nuclear, that has commenced  
operation or is projected to commence operation on or after January 1 of the most recent  
year of the 5-year period used to calculate the allocations pursuant to these rules, which  
meets all of the following:  
(i) Serves a generator at 25 megawatts or greater of electrical output.  
(ii) Is not subject to R 336.1801(4)(a) or covered by any other definitions in this rule.  
(iii) Captures energy from on-going natural processes.  
(iv) Is considered a non-emitting, having zero emissions, source.  
(s) "Renewable energy projects," for allocation purposes under R 336.1821 to R  
336.1826, means renewable energy sources, located in Michigan and located within the  
same geographic area that when added together equal a generator greater than 25  
megawatts of electrical output.  
History: 2002 MR 22, Eff. Dec. 4, 2002; MR 12, Eff. June 25, 2007; 2009 MR  
10, Eff. May 28, 2009.  
R 336.1804 Retired unit exemption from oxides of nitrogen budget trading  
program.  
Rule 804. The provisions in 40 C.F.R. §96.5 are adopted by reference in R  
336.1803 and are applicable to this rule, with the following modifications:  
Page 14  
(a) The date in (c)(2)(i) of "May 1, 2003" shall be revised to "May 31, 2004."  
(b) The time period of "18 months" in (c)(2)(i) shall be revised to "270 days."  
(c) The date in (c)(2)(ii) of "May 1, 2003" shall be revised to "May 31, 2004."  
(d) The "loss of exemption" provisions in (c)(6)(i)(B) shall be revised to replace the  
word "application" by the phrase "application; or" and to include a new paragraph  
(c)(6)(i)(C) as follows: "The date on which the unit resumes operation, if the unit is not  
required to submit an oxides of nitrogen permit application."  
History: 2002 MR 22, Eff. Dec. 4, 2002; 2004 MR 10, Eff. May 20, 2004.  
R 336.1805 Standard requirements of oxides of nitrogen budget trading  
program.  
Rule 805. The provisions in 40 C.F.R. §96.6 are adopted by reference in R  
336.1803 and are applicable to this rule, with the following modification: The date in  
(c)(3) of "May 1, 2003" shall be revised to "May 31, 2004."  
History: 2002 MR 22, Eff. Dec. 4, 2002.  
R 336.1806 Computation of time under oxides of nitrogen budget trading  
program.  
Rule 806. The provisions in 40 C.F.R. §96.7 are adopted by reference in R  
336.1803 and are applicable to this rule.  
History: 2002 MR 22, Eff. Dec. 4, 2002.  
R 336.1807 Authorized account representative under oxides of nitrogen budget  
trading program.  
Rule 807. The provisions in 40 C.F.R. §96.10 through 96.14 are adopted by  
reference in R 336.1803 and are applicable to this rule.  
History: 2002 MR 22, Eff. Dec. 4, 2002.  
R 336.1808 Permit requirements under oxides of nitrogen budget trading  
program.  
Rule 808. The provisions in 40 C.F.R. §96.20 through 96.25 are adopted by  
reference in R 336.1803 and are applicable to this rule, with the following modifications:  
(a) All dates in §96.20 through 96.25 of "January 1, 2000" shall be revised to  
"January 1, 2001," and of "May 1, 2003" to "May 31, 2004."  
(b) The time period of "18 months" shall be revised to "270 days."  
(c) The language following the term "effective" in §96.24 shall be replaced with the  
term "upon issuance."  
History: 2002 MR 22, Eff. Dec. 4, 2002.  
Page 15  
R 336.1809 Compliance certification under oxides of nitrogen budget trading  
program.  
Rule 809. The provisions in 40 C.F.R. §§96.30 and 96.31 are adopted by reference  
in R 336.1803 and are applicable to this rule.  
History: 2002 MR 22, Eff. Dec. 4, 2002.  
R 336.1810 Allowance allocations under oxides of nitrogen budget trading  
program.  
Rule 810. (1) The trading program budget allocated by the department under subrule  
(3) of this rule for an ozone control period shall equal the total number of tons of oxides  
of nitrogen emissions apportioned to the oxides of nitrogen budget units under R  
336.1802 for the ozone control period, as determined by the procedures in this rule. The  
total number of tons of oxides of nitrogen emissions that are available for allocation as  
oxides of nitrogen allowances under this rule is as follows:  
(a) For electricity-generating units, 29,038 tons in 2004, 2005, and 2006, and 28,150  
tons in each year thereafter.  
(b) For large affected units, 2,209 tons, distributed as follows:  
(i) For large affected units, 1,081 tons.  
(ii) For hardship purposes described in subrule (4)(f) of this rule, 564 tons.  
(iii) For new source set-aside purposes described in R 336.1811, 564 tons in 2004,  
2005, and 2006, and 1,452 tons in each year thereafter.  
(2) The department shall allocate oxides of nitrogen allowances to oxides of nitrogen  
budget units according to the following schedule:  
(a) A 3-year allocation that is 3 years in advance of the ozone control period in which  
the allowances are to be used. the 3-year allocation shall be as follows:  
(i) Within 60 days of the effective date of this rule, the department shall submit, to  
the United States environmental protection agency, the oxides of nitrogen allowance  
allocations, in accordance with subrules (3) and (4) of this rule, for the ozone control  
periods in 2004, 2005, and 2006.  
(ii) By April 1, 2004, the department shall submit, to the United States environmental  
protection agency, the oxides of nitrogen allowance allocations, in accordance with  
subrules (3) and (4) of this rule, for the ozone control periods in 2007, 2008, and 2009.  
(iii) By April 1, 2007, the department shall submit, to the United States  
environmental protection agency, the oxides of nitrogen allowance allocations, in  
accordance with subrules (3) and (4) of this rule, for the ozone control periods in 2010,  
2011, and 2012.  
(iv) By April 1, 2010, and thereafter April 1 of the year that is 3 years after the last  
year of allocations, the department shall submit, to the United States environmental  
protection agency, the oxides of nitrogen allowance allocations, in accordance with  
subrules (3) and (4) of this rule, for the ozone control periods 3, 4, and 5 years after the  
year of the allowance allocation.  
(b) If the department fails to submit the oxides of nitrogen allowance allocations in  
accordance with this subdivision to the United States environmental protection agency,  
Page 16  
then the United States environmental protection agency will allocate, for the applicable  
ozone control period, the same number of oxides of nitrogen allowances as were  
allocated for the preceding ozone control period.  
(c) By April 1, 2005, and April 1 of each year thereafter, the department shall submit,  
to the United States environmental protection agency, the oxides of nitrogen allowance  
allocations remaining in the allocation set-aside for the prior ozone control period, in  
accordance with R 336.1811.  
(3) The heat input, in million Btu's, used for calculating oxides of nitrogen allowance  
allocations for each oxides of nitrogen budget unit under R 336.1805 shall be as follows:  
(a) For an oxides of nitrogen allowance allocation under subrule (2)(a)(i) of this rule,  
the following provisions apply, as applicable:  
(i) For an electric generating unit, the average of the 2 highest amounts of the unit's  
heat input for the ozone control periods in 1995 through 2000.  
(ii) For a large affected unit, the average of the 2 highest amounts of the unit's heat  
input for the ozone control periods in 1995 through 2000.  
(iii) For a unit that operated less than 2 ozone seasons in 1995 through 2000, the  
single highest heat input for 1 of these ozone seasons.  
(b) For an oxides of nitrogen allowance allocation under subrule (2)(a)(ii) through  
(iv) of this rule, the unit's average of the 2 highest heat inputs for the ozone control period  
in the 5 years immediately preceding the year in which the department is required to  
submit the oxides of nitrogen allocations. If a unit operated less than 2 ozone seasons in  
1 of the 5-year time periods, then the unit's single highest heat input shall be used.  
(c) The unit's total heat input for the ozone control period in each year shall be  
determined in accordance with 40 C.F.R. part 75 if the oxides of nitrogen budget unit  
was otherwise subject to the requirements of 40 C.F.R. part 75 for the year, or shall be  
based on the best available data reported to the department for the unit if the unit was not  
otherwise subject to the requirements of 40 C.F.R. part 75 for the year. The owner or  
operator of an oxides of nitrogen budget unit shall submit heat input data within 30 days  
if requested by the department. Title 40 C.F.R. part 75 is adopted by reference in R  
336.1801.  
(4) For each ozone control period under subrule (2) of this rule, the department shall  
allocate to all oxides of nitrogen budget units that commenced operation before May 1 of  
the most recent year of the 5-year period used to calculate heat input under subrule (3) of  
this rule, a total of 29,038 tons of allowances for electric generating units in 2004, 2005,  
and 2006; 28,150 tons in each year thereafter; and 1,081 tons of allowances for large  
affected units, apportioned in accordance with the following procedures:  
(a) The department shall allocate oxides of nitrogen allowances to each electricity-  
generating unit in an amount equaling 0.15 pound per million Btu's or the allowable  
emission rate, whichever is more stringent, multiplied by the heat input determined under  
subrule (3) of this rule, divided by 2,000 pounds per ton, and rounded to the nearest  
whole oxides of nitrogen allowance, as appropriate.  
(b) If the initial total number of oxides of nitrogen allowances allocated to all  
electricity-generating units for an ozone control period under subdivision (a) of this  
subrule does not equal 29,038 tons in 2004, 2005, and 2006, and 28,150 tons in each year  
thereafter, then the department shall adjust up or down the total number of oxides of  
nitrogen allowances allocated to all oxides of nitrogen budget units for the ozone control  
Page 17  
period under subdivision (a) of this subrule so that the total number of oxides of nitrogen  
allowances allocated equals 29,038 tons in 2004, 2005, and 2006, and 28,150 tons in each  
year thereafter. The adjustment shall be made by multiplying each unit's allocation  
determined in subdivision (a) by a correction factor determined by dividing the total  
number of the budget tons being allocated by the sum of all units' allocations in  
subdivision (a).  
(c) The department shall allocate oxides of nitrogen allowances to each large affected  
unit in an amount equaling 0.17 pound per million Btu's or the allowable emission rate,  
whichever is more stringent, multiplied by the heat input determined under subrule (3) of  
this rule, divided by 2,000 pounds per ton, and rounded to the nearest whole oxides of  
nitrogen allowance, as appropriate.  
(d) If the initial total number of oxides of nitrogen allowances allocated to all large  
affected units for an ozone control period under subdivision (c) of this subrule does not  
equal 1,081 tons, then the department shall adjust the total number of oxides of nitrogen  
allowances allocated to all oxides of nitrogen budget units for the ozone control period  
under subdivision (c) of this subrule so that the total number of oxides of nitrogen  
allowances allocated equals 1,081 tons. The adjustment shall be made multiplying each  
unit's allocation determined in subdivision (c) by a correction factor determined by  
dividing the total number of the budget tons being allocated by the sum of all units'  
allocations in subdivision (c).  
(e) The authorized account representative of an electric generating unit or a large  
affected unit that has not been capable of operating for 2 complete ozone control periods,  
because it recently received its air use permit, may elect to abandon its allowance  
allocation for the 3-year allocation period, be considered a new source, and obtain an  
oxides of nitrogen allowance allocation as provided for by R 336.1811. A written  
notification of the election shall be provided to the department 1 or more months before  
the allocation dates identified in subrule (2)(a) or (c) of this rule. The abandoned  
allocation returns to the appropriate oxides of nitrogen trading budget in subrule (1)(a) or  
(b) of this rule.  
(f) After the provisions of subdivisions (a) through (d) of this subrule have been  
followed, an owner or operator may pursue the following:  
(i) The allocation determined by subdivisions (a) through (d) of this subrule may be  
revised for a given budget source if the budget source is a large affected unit or a small  
business as defined in chapter 3 of 1969 pa 306, MCL 24.240 et seq. The owner or  
operator shall demonstrate to the department that the control level in subdivision (a) or  
(c) of this subrule results in excessively costly or prohibitive compliance. The  
demonstration shall include all of the following:  
(A) An engineering study analyzing all control options that are technically available  
for the unit, including control options that would achieve a level of control meeting, at a  
minimum, a 0.3 pound per million Btu emission rate.  
(B) The annualized cost associated with each control option. An annualized cost of  
more than $4,000.00 per ton of oxide of nitrogen reduced will generally be considered to  
be an excessive cost for compliance with this rule.  
(C) Other considerations contributing to prohibitive compliance.  
(ii) Notwithstanding the available allocations of subrule (1)(b) of this rule, the total  
number of additional allocations available for all budget sources receiving department  
Page 18  
approval for paragraph (i) demonstrations shall not be more than 564 tons per ozone  
season.  
(iii) The department shall determine how revised allocations are distributed among  
those budget sources meeting the criteria in paragraph  
(i) of this subdivision.  
(iv) Upon approval by the department, a source that undertakes an innovative control  
program for compliance with these rules may receive allocations under the provisions of  
this subdivision. The allocations shall be available for use during only 1 allocation  
period, as needed, and shall not be more than 75 tons.  
(v) The provisions of this subdivision shall only apply for the time period beginning  
with the effective date of this rule and ending on September 30, 2012. Beginning with  
the 3-year allocation in 2010, 95% of the allocations listed in paragraph (ii) of this  
subdivision shall be added to the electric generating unit budget in subrule (1) of this rule  
and 5% shall be added to the large affected unit budget in subrule (1) of this rule and will,  
therefore, be available to all existing sources beginning in the 2013 ozone season.  
History: 2002 MR 22, Eff. Dec. 4, 2002.  
R 336.1811 New source set-aside under oxides of nitrogen budget trading  
program.  
Rule 811. (1) For oxides of nitrogen budget units that commenced operation, or are  
projected to commence operation, on or after May 1 of the most recent year of the 5 year  
period used to calculate heat input under R 336.1810(3) and units which have abandoned  
allocations under R 336.1810(4)(e), the department shall allocate oxides of nitrogen  
allowances in accordance with the following procedures:  
(a) The department shall establish 1 allocation set-aside pool for each ozone control  
period for electric generating units and large affected units. The allocation set-aside pool  
shall be allocated 564 tons of oxides of nitrogen allowances in 2004, 2005, and 2006, and  
1,452 tons in each year thereafter.  
(b) The oxides of nitrogen authorized account representative of an oxides of nitrogen  
budget unit under this rule may submit to the department an annual request, in writing or  
in a format specified by the department, to be allocated oxides of nitrogen allowances,  
starting with the ozone control period during which the oxides of nitrogen budget unit  
commenced or is projected to commence operation and ending with the ozone control  
period preceding the ozone control period for which it shall receive an allocation under R  
336.1810(4)(a) or (c). The oxides of nitrogen allowance allocation request shall be  
submitted before March 1 of the year of the first ozone control period for which the  
oxides of nitrogen allowance allocation is requested and after the date on which the  
department issues a permit to install the oxides of nitrogen budget unit, and each  
following year by March 1.  
(c) In an oxides of nitrogen allowance allocation request under this subrule, the  
oxides of nitrogen authorized account representative may request an ozone control period  
oxides of nitrogen allowance in an amount that does not exceed the following:  
(i) For an electricity-generating unit, all of the following:  
(A) Fifteen one-hundredths (0.15) pound per million Btu's or the allowable emission  
rate, whichever is more stringent.  
Page 19  
(B) Multiplied by the oxides of nitrogen budget unit's maximum design heat input, or  
the permit allowable heat input, whichever is more stringent, in million Btu's per hour,  
divided by 2,000 pounds per ton.  
(C) Multiplied by the number of hours remaining in the ozone control period starting  
with the first day in the ozone control period on which the unit operated or is projected to  
operate.  
(ii) For a large affected unit, all of the following:  
(A) Seventeen one-hundredths (0.17) pound per million Btu's or the allowable  
emission rate, whichever is more stringent.  
(B) Multiplied by the oxides of nitrogen budget unit's maximum design heat input, or  
the permit allowable heat input, whichever is more stringent, in million Btu's per hour,  
divided by 2,000 pounds per ton.  
(C) Multiplied by the number of hours remaining in the ozone control period starting  
with the first day in the ozone control period on which the unit operated or is projected to  
operate.  
(d) The department shall review, and allocate oxides of nitrogen allowances pursuant  
to, each oxides of nitrogen allowance allocation request on a pro rata basis as follows:  
(i) Upon receipt of the oxides of nitrogen allowance allocation request, the  
department shall determine whether, and shall make any necessary adjustments to the  
request to ensure that, for electricity-generating units, the ozone control period and the  
number of allowances specified are consistent with the requirements of subdivision (c)(i)  
of this subrule and, for large affected units, the ozone control period and the number of  
allowances specified are consistent with the requirements of subdivision (c)(ii) of this  
subrule.  
(ii) If the allocation set-aside pool for the ozone control period for which oxides of  
nitrogen allowances are requested has an amount of oxides of nitrogen allowances greater  
than or equal to the number requested, as adjusted under paragraph (i) of this subdivision,  
then the department shall allocate the amount of the oxides of nitrogen allowances  
requested, as adjusted under paragraph (i) of this subdivision, to the oxides of nitrogen  
budget unit. Those allowances remaining in the pool shall be retained in the set-aside  
pool and shall be available the following ozone season.  
(iii) If the allocation set-aside pool for the ozone control period for which oxides of  
nitrogen allowances are requested has an amount of oxides of nitrogen allowances less  
than the number requested, as adjusted under paragraph (i) of this subrule, then the  
department shall proportionately reduce the number of oxides of nitrogen allowances  
allocated to each oxides of nitrogen budget unit for the ozone control period so that the  
total number of oxides of nitrogen allowances allocated equals 564 tons in 2004, 2005,  
and 2006, and 1,452 tons in each year thereafter.  
(2) For an oxides of nitrogen budget unit that is allocated oxides of nitrogen  
allowances under subrule (1) of this rule for an ozone control period, the United States  
environmental protection agency will first deduct oxides of nitrogen allowances to  
account for the actual utilization of the unit during the ozone control period and then will  
deduct oxides of nitrogen allowances under 40 C.F.R. §§96.54(b)(1) or 96.54(e) to  
account for emissions. Title 40 C.F.R. part 96 is adopted by reference in R 336.1803.  
The United States environmental protection agency will calculate the number of oxides of  
nitrogen allowances to be deducted to account for the unit's actual utilization using either  
Page 20  
of the following formulas, rounding to the nearest whole oxides of nitrogen allowance, as  
appropriate, provided that the number of oxides of nitrogen allowances to be deducted  
shall be 0 if the number calculated is less than 0:  
(a) Oxides of nitrogen allowances deducted for actual utilization for an electricity-  
generating unit equals unit's oxides of nitrogen allowances allocated for control period  
minus (unit's actual control period heat input x lesser of 0.15 pound per million Btu's or  
the allowable emission rate x 2,000 pounds per ton).  
(b) Oxides of nitrogen allowances deducted for actual heat input for a large affected  
unit equals unit's oxides of nitrogen allowances allocated for control period minus (unit's  
actual control period heat input x lesser of 0.17 pound per million Btu's or the allowable  
emission rate x 2,000 pounds per ton).  
(3) After making the deductions for compliance under 40 C.F.R.§96.54(b)(1) or (e)  
for an ozone control period, the United States environmental protection agency will  
notify the department whether any oxides of nitrogen allowances remain in the new  
source set-aside pool for the ozone control period. Oxides of nitrogen allowances  
remaining in the new source set-aside pool equal the amount of remaining oxides of  
nitrogen allowances after making allocations in accordance with subrule (1)(d) of this  
rule, plus the sum of the amounts of oxides of nitrogen allowances deducted for actual  
utilization in accordance with subrule (2). Any such allowances shall remain in the set-  
aside pool for use in the following ozone seasons. Title 40 C.F.R. part 96 is adopted by  
reference in R 336.1803.  
History: 2002 MR 22, Eff. Dec. 4, 2002; 2004 MR 10, Eff. May 20, 2004.  
R 336.1812 Allowance tracking system and transfers under oxides of nitrogen  
budget trading program.  
Rule 812. The provisions in 40 C.F.R. §§96.50 through 96.54, 96.56, 96.57, and  
96.60 through 96.62 are adopted by reference in R 336.1803 and are applicable to this  
rule, with the following modification: In §96.53, the date of "2003" shall be revised to  
"2004."  
History: 2002 MR 22, Eff. Dec. 4, 2002.  
R 336.1813 Monitoring and reporting requirements under oxides of nitrogen  
budget trading program.  
Rule 813. The provisions in 40 C.F.R. §§96.70 through 96.76 are adopted by  
reference in R 336.1803 and are applicable to this rule, with the following modification:  
In §96.70, the date "May 1, 2002," shall be revised to "May 1, 2003."  
History: 2002 MR 22, Eff. Dec. 4, 2002.  
R 336.1814 Individual opt-ins under oxides of nitrogen budget trading program.  
Rule 814. The provisions in 40 C.F.R. §§96.80 through 96.88 are adopted by  
reference in R 336.1803 and are applicable to this rule.  
Page 21  
History: 2002 MR 22, Eff. Dec. 4, 2002.  
R 336.1815 Allowance banking under oxides of nitrogen budget trading  
program.  
Rule 815. The provisions in 40 C.F.R. §96.55 are adopted by reference in R  
336.1803 and are applicable to this rule, with the following modifications:  
(a) In subpart (B) of §96.55, the date of "2004" shall be revised to "2005."  
(b) In subpart (B)(3)(ii) of §96.55, the first sentence shall be revised to read, "the  
administrator will multiply the number of banked oxides of nitrogen allowances in each  
compliance account or overdraft account by the ratio determined under paragraph  
(b)(3)(i) of this section." (c) Subpart (C) in §96.55 shall be deleted.  
History: 2002 MR 22, Eff. Dec. 4, 2002.  
R 336.1816 Compliance supplement pool under oxides of nitrogen budget  
trading program.  
Rule 816. (1) The department may allow sources required to implement oxides of  
nitrogen emission control measures by May 31, 2004, and subject to this rule, to  
demonstrate compliance in the 2004 and 2005 ozone control periods using credit issued  
from a compliance supplement pool in accordance with this rule. A source shall not use  
credit from the compliance supplement pool to demonstrate compliance after the 2005  
ozone control period.  
(2) The department may distribute oxides of nitrogen allocations from the  
compliance supplement pool to oxides of nitrogen budget units that are required to  
implement control measures. The department may issue up to 95% of the compliance  
supplement pool to oxides of nitrogen budget units that are electricity-generating units  
and up to 5% of the compliance supplement pool to oxides of nitrogen budget units that  
are large affected units that implement emissions reductions beyond all applicable  
requirements during the ozone control period in years before the year 2004 according to  
the following provisions:  
(a) The department shall complete the issuance process not later than May 31, 2004.  
(b) The emissions reduction shall not be required by Michigan's state implementation  
plan, state law, or rule or be otherwise required by the clean air act.  
(c) The emissions reduction shall be verified by the source as actually having  
occurred during an ozone control period between September 30, 2000, and September 30,  
2003.  
(d) Each oxides of nitrogen budget unit for which the owner or operator requests any  
early reduction credits under this rule shall monitor oxides of nitrogen emissions in  
accordance with 40 C.F.R. part 75, subpart H, starting at least 1 calendar year before the  
ozone control period for which the early reduction credits are requested. The unit's  
monitoring system availability shall be not less than 90% during the first ozone control  
period in which monitoring occurs for this purpose, and the unit shall be in compliance  
with any applicable state or federal emissions or emissions-related requirements.  
Page 22  
(e) The emissions reduction shall be quantified according to procedures set forth in  
40 C.F.R. part 75, subpart h, which are adopted by reference in R 336.1801.  
(f) The oxides of nitrogen authorized account representative of an oxides of nitrogen  
budget unit that meets the requirements of subdivisions (b) through (d) of this subrule  
may submit to the department a request for early reduction credits for the unit based on  
oxides of nitrogen emission rate reductions made by the unit in the ozone control period  
for 2001 through 2003. The request shall include both of the following:  
(i) In the early reduction credit request, the oxides of nitrogen authorized account  
representative may request early reduction credits for the ozone control period in an  
amount equal to the unit's heat input for the ozone control period, multiplied by the  
difference between the rates in both of the following provisions:  
(A) The oxides of nitrogen emission limit required by Michigan's state  
implementation plan, otherwise required by the clean air act, or 0.25 pounds per million  
Btu per hour, whichever is most stringent.  
(B) The unit's actual oxides of nitrogen emission rate for the ozone control period,  
which shall be lower than the rate used in subparagraph (A) of this paragraph and less  
than 80% of the actual 2000 ozone control period oxides of nitrogen emission rate,  
divided by 2,000 pounds per ton, and rounded to the nearest ton.  
(ii) The early reduction credit request shall be submitted, in a format specified by the  
department, by February 15, 2003, for the 2001 and 2002 ozone control periods and by  
February 15, 2004, for the 2003 ozone control period.  
(g) The department shall allocate oxides of nitrogen allowances to oxides of nitrogen  
budget units meeting the requirements of this subdivision and covered by early reduction  
requests meeting the requirements of subdivision (f)(ii) of this subrule, in accordance  
with all of the following procedures:  
(i) Upon receipt of each early reduction credit request, the department shall accept  
the request only if the requirements of subdivisions (b) through (d) and (f)(ii) of this  
subrule are met and, if the request is accepted, shall make any necessary adjustments to  
the request to ensure that the amount of the early reduction credits requested meets the  
requirement of subdivisions (b) through (d) of this subrule.  
(ii) If the compliance supplement pool has an amount of oxides of nitrogen  
allowances equal to or greater than the number of early reduction credits in all accepted  
early reduction credit requests for 2001 through 2003, as adjusted under paragraph (i) of  
this subdivision, then the department shall allocate to each oxides of nitrogen budget unit  
covered by the accepted requests 1 allowance for each early reduction credit requested, as  
adjusted under paragraph (i) of this subdivision.  
(iii) If the compliance supplement pool has an amount of oxides of nitrogen  
allowances less than the number of early reduction credits in all accepted early reduction  
credit requests for 2001 through 2003, as adjusted under paragraph (i) of this subdivision,  
then the department shall allocate oxides of nitrogen allowances to each oxides of  
nitrogen budget unit covered by the accepted requests according to the following  
formula: A unit's allocated early reduction credits equals ((unit's adjusted early reduction  
credits) divided by (total adjusted early reduction credits requested by all units)) times  
(available oxides of nitrogen allowances from the compliance supplement pool), where:  
Page 23  
(A) Unit's adjusted early reduction credits is the number of early reduction credits for  
the unit for 2001 through 2003 in accepted early reduction credit requests, as adjusted  
under paragraph (i) of this subdivision.  
(B) Total adjusted early reduction credits requested by all units is the number of  
early reduction credits for all units for 2001 through 2003 in accepted early reduction  
credit requests, as adjusted under paragraph (i) of this subdivision.  
(C) Available oxides of nitrogen allowances from the compliance supplement pool is  
the number of oxides of nitrogen allowances in the compliance supplement pool and  
available for early reduction credits for 2001 through 2003.  
(h) By May 31, 2004, the department shall submit, to the United States  
environmental protection agency, the allocations of oxides of nitrogen allowances  
determined under subdivision (g) of this subrule. The United States environmental  
protection agency will record the allocations to the extent that they are consistent with the  
requirements of subdivisions (b) through (g) of this subrule.  
(i) Oxides of nitrogen allowances recorded under subdivision (g) of this subrule may  
be deducted for compliance under 40 C.F.R. §96.54(b) through (f) for the ozone control  
periods in 2004 or 2005. Notwithstanding 40 C.F.R. §96.55(a), the United States  
environmental protection agency will deduct as retired any oxides of nitrogen allowance  
which is recorded under subdivision (g) of this subrule and which is not deducted for  
compliance in accordance with 40 C.F.R. §96.54(b) through (f) for the ozone control  
period in 2004 or 2005.  
(j) Oxides of nitrogen allowances recorded under subdivision (g) of this subrule are  
treated as banked allowances in 2005 for the purposes of §96.55(a) and (b).  
(k) Sources that receive credit according to the requirements of this rule may trade  
the credit to other sources or persons according to the provisions in the trading program.  
Title 40 C.F.R., part 96, is adopted by reference in R 336.1803.  
(3) The total number of oxides of nitrogen allowances available from the compliance  
supplement pool shall not be more than 9,907 tons of oxides of nitrogen. Any oxides of  
nitrogen allowances that remain in the compliance supplement pool after the 2005 ozone  
control period shall be retired.  
History: 2002 MR 22, Eff. Dec. 4, 2002.  
R 336.1817 Emission limitations and restrictions for Portland cement kilns.  
Rule 817. (1) As used in this rule:  
(a) "Clinker" means the product of a Portland cement kiln from which finished  
cement is manufactured by milling and grinding.  
(b) "Long dry kiln" means a Portland cement kiln that employs no preheating of the  
feed. The inlet feed to the kiln is dry.  
(c) "Long wet kiln" means a Portland cement kiln that employs no preheating of the  
feed. The inlet feed to the kiln is a slurry.  
(d) "Low oxides of nitrogen burners" means a type of cement kiln burner system  
designed to lower oxides of nitrogen formation by controlling flame turbulence, delaying  
fuel/air mixing and establishing fuel-rich zones for initial combusting, that for firing of  
solid fuel by a kiln's main burner includes an indirect firing system or comparable  
technique for the main burner to lower the amount of primary combustion air supplied  
Page 24  
with the pulverized fuel. In an indirect firing system, 1 air stream is used to convey  
pulverized fuel from the grinding equipment and another air stream is used to supply  
primary combustion air to the kiln burner with the pulverized fuel, with intermediate  
storage of the fuel.  
(e) "Malfunction" means any sudden, infrequent, and not reasonably preventable  
failure of air pollution control equipment, process equipment, or a process to operate in a  
normal or usual manner. Failures that are caused in part by poor maintenance or careless  
operation are not malfunctions.  
(f) "Mid-kiln firing" means the secondary firing in a kiln system by injecting solid  
fuel at an intermediate point in the kiln system using a specially designed feed injection  
mechanism for the purpose of decreasing oxides of nitrogen emissions through both of  
the following:  
(i) Burning part of the fuel at a lower temperature.  
(ii) Reducing conditions at the fuel injection point that may destroy some of the  
oxides of nitrogen formed upstream in the kiln system.  
(g) "Ozone control period" means the period beginning May 31, 2004, and ending  
September 30, 2004, and May 1 through September 30 each subsequent year.  
(h) "Portland cement" means a hydraulic cement produced by pulverizing clinker  
consisting essentially of hydraulic calcium silicates, usually containing 1 or more of the  
forms of calcium sulfate as an interground addition.  
(i) "Portland cement kiln" means a system, including any solid, gaseous, or liquid  
fuel combustion equipment, used to calcine and fuse raw materials, including limestone  
and clay, to produce Portland cement clinker.  
(j) "Precalciner kiln" means a kiln where the feed to the kiln system is preheated in  
cyclone chambers and a second burner is used to calcine material in a separate vessel  
attached to the preheater before the final fusion in a kiln that forms clinker.  
(k) "Preheater kiln" means a Portland cement kiln where the feed to the kiln system  
is preheated in cyclone chambers before the final fusion in a kiln that forms clinker.  
(l) "Shutdown" means the cessation of operation of a Portland cement kiln for any  
purpose.  
(m) "Start-up" means the setting in operation of a Portland cement kiln for any  
purpose.  
(2) This rule applies to any Portland cement kiln located in the Michigan fine grid  
zone as defined in R 336.1803, with process rates equal to or greater than the following:  
(a) Long dry kilns of 12 tons per hour.  
(b) Long wet kilns of 10 tons per hour.  
(c) Preheater kilns of 16 tons per hour.  
(d) Precalciner and combined preheater and precalciner kilns of 22 tons per hour.  
(3) A unit subject to this rule and a new source performance standard or a national  
emission standard for hazardous air pollutants shall comply with the limitations and  
requirements of this rule or the limitations and requirements of the new source  
performance standard or the national emission standard for hazardous air pollutants,  
whichever is more stringent.  
(4) The requirements of this rule shall not apply to a unit that is participating in the  
oxides of nitrogen budget trading program under R 336.1802 through R 336.1816. The  
Page 25  
requirements of subrule (5) of this rule shall not apply during start-up, shutdown, and  
malfunction periods.  
(5) After May 31, 2004, an owner or operator of a Portland cement kiln subject to the  
provisions of this rule shall not operate the kiln until September 30, 2004, and any  
subsequent year from May 1 through September 30, unless the owner or operator  
complies with 1 of the following requirements during the applicable May through  
September time period each year:  
(a) Operation of the kiln with 1 of the following:  
(i) Low oxides of nitrogen burners.  
(ii) Mid-kiln firing.  
(b) A limit on the amount of oxides of nitrogen emitted when averaged over the  
ozone control period as follows:  
(i) For long wet kilns, 6 pounds of oxides of nitrogen per ton of clinker produced.  
(ii) For long dry kilns, 5.1 pounds of oxides of nitrogen per ton of clinker produced.  
(iii) For preheater kilns, 3.8 pounds of oxides of nitrogen per ton of clinker produced.  
(iv) For precalciner and combined preheater and precalciner kilns, 2.8 pounds of  
oxides of nitrogen per ton of clinker produced.  
(c) Installation and use of alternative control techniques that may include kiln system  
modifications, such as conversions to semi-drying processing, subject to department and  
United States environmental protection agency approval, that achieve a 30% emissions  
decrease from baseline ozone control period emissions. Baseline emissions shall be the  
average of the sum of ozone control period emissions for the 2 highest emitting years  
from 1995 through 2000.  
(6) The owner or operator of any Portland cement kiln proposing to install and use an  
alternative control technique under subrule (5)(c) of this rule shall submit the proposed  
alternative control technique and calculation of baseline emissions with supporting  
documentation to the department and the United States environmental protection agency  
for approval by May 31, 2003. The department shall include the approved plan with  
emission limitations in the source's operating permit.  
(7) Ozone control period emissions shall be determined using 1 of the following  
methods:  
(a) The average of the emission factors for the type of kiln from the "Compilation of  
Air Pollutant Emission Factors. Volume 1. Stationary Point and Area Sources," PB95  
196028, and the "Alternative Control Techniques Document: NOx Emissions from  
Cement Manufacturing,"PB94 183522. These documents are adopted by reference in  
this rule. Copies may be inspected at the Lansing office of the air quality division of the  
department of environmental quality. Copies may be obtained from the Air Quality  
Division, Department of Environmental Quality, 525 West Allegan Street, P.O. Box  
30260-7760, Lansing, Michigan 48909, or from the National Technical Information  
Service, U.S. Department of Commerce, Springfield, Virginia 22161, at a cost at the  
time of adoption of this rule of $278.00 and $41.00, respectively.  
(b) The site-specific emission factor developed from representative emissions testing,  
pursuant to 40 C.F.R. part 60, appendix A, methods 7, 7A, 7C, 7D, or 7E, based on a  
range of typical operating conditions. The owner or operator shall establish that these  
operating conditions are representative, subject to approval by the department, and shall  
Page 26  
certify that the emissions testing is being conducted under representative conditions. The  
provisions of 40 C.F.R. Part 60 are adopted by reference in R 336.1801.  
(c) An alternate method for establishing the emission factors, when submitted with  
supporting data to substantiate the emission factors and approved by the department and  
the United States environmental protection agency as set forth in subrule (5)(c) of this  
rule.  
(8) Beginning May 31, 2004, and each ozone control period thereafter, any owner or  
operator of a Portland cement kiln subject to this rule shall do either of the following:  
(a) Complete an initial performance test and subsequent annual testing during the  
ozone control period of each year consistent with the requirements of 40 C.F.R. part 60,  
appendix A, methods 7, 7A , 7C, 7D, or 7E or an alternate method approved pursuant to  
subrule (5)(c) of this rule.  
(b) Monitor oxides of nitrogen emissions during the ozone control period of each  
year using a continuous emissions monitoring system in accordance with 40 C.F.R., part  
60, subpart A, and 40 C.F.R., part 60, appendix B, and comply with the quality assurance  
procedures in appendix F, or 40 C.F.R., part 75, and associated appendices, as applicable,  
and in a manner acceptable to the department.  
(9) Beginning May 31, 2004, and each ozone control period thereafter, any owner or  
operator of a Portland cement kiln subject to this rule shall comply with both of the  
following recordkeeping and reporting requirements:  
(a) An owner or operator shall create and maintain records that include, but are not  
limited to, both of the following:  
(i) All routine and nonroutine maintenance, repair, or replacement performed on the  
device or devices.  
(ii) The date, time, and duration of any start-up, shutdown, or malfunction in the  
operation of akiln or the device or devices.  
(b) An owner or operator shall create and maintain records that include, but are not  
limited to, all of the following:  
(i) The emissions, in pounds of oxides of nitrogen per ton of clinker produced from  
each affected Portland cement kiln.  
(ii) The date, time, and duration of any start-up, shutdown, or malfunction in the  
operation of any of the cement kilns or the emissions monitoring equipment.  
(iii) The results of any performance testing.  
(iv) If a unit is equipped with a continuous emissions monitoring system, the  
following information:  
(A) Identification of time periods during which oxides of nitrogen standards are  
exceeded, the reason for the exceedance, and action taken to correct the exceedance and  
to prevent similar future exceedances.  
(B) Identification of the time periods for which operating conditions and pollutant  
data were not obtained, including reasons for not obtaining sufficient data and a  
description of corrective actions taken.  
(v) All records required to be produced or maintained shall be retained on site for a  
period of 5 years. The records shall be made available to the department or the United  
States environmental protection agency upon request.  
(10) Any owner or operator of a Portland cement kiln subject to this rule shall  
comply with both of the following reporting requirements:  
Page 27  
(a) By May 31, 2004, submit to the department all of the following information:  
(i) The identification number and type of each unit subject to this rule.  
(ii) The name and address of the plant where the unit is located.  
(iii) The name and telephone number of the person responsible for demonstrating  
compliance with this rule.  
(iv) Anticipated control measures.  
(b) Submit a report documenting for that unit the total oxides of nitrogen emissions  
and the average oxides of nitrogen emission rate for the ozone control period of each year  
to the department by October 31, beginning in 2004 and each year thereafter.  
History: 2002 MR 22, Eff. Dec. 4, 2002.  
R 336.1818 Emission limitations for stationary internal combustion engines.  
Rule 818. (1) As used in this rule:  
(a) "Affected engine" means a stationary internal combustion engine that is a large  
NOx SIP call engine, or any other stationary internal combustion engine that is subject to  
oxides of nitrogen control under a compliance plan established under subrule (3) of this  
rule.  
(b) "Diesel engine" means a compression ignited 2- or 4-stroke engine in which  
liquid fuel injected into the combustion chamber ignites when the air has been  
compressed to a temperature sufficiently high for auto-ignition.  
(c) "Dual fuel engine" means any stationary reciprocating internal combustion engine  
in which a liquid fuel, typically diesel fuel, is used for compression ignition and gaseous  
fuel, typically natural gas, is used as the primary fuel.  
(d) "Engine seasonal NOx 2007 tonnage reduction" means the year 2007 ozone  
control period oxides of nitrogen emissions reductions value (tons) for a large NOx SIP  
call engine, which is based on an oxides of nitrogen control efficiency of 82% for large  
gas-fired engines and 90% for diesel and dual-fuel engines.  
(e) "Facility seasonal NOx 2007 tonnage reduction" means the total of the engine  
ozone control period NOx 2007 tonnage reductions attributable to all of an owner or  
operator's large NOx SIP call engines.  
(f) "Large NOx SIP call engine" means a stationary internal combustion engine  
emitting more than 1 ton of oxides of nitrogen per average ozone control period day in  
1995.  
(g) "Lean-burn engine" means any 2- or 4-stroke spark-ignited engine that is not a  
rich-burn engine.  
(h) "Ozone control period" means the period of May 1 to September 30.  
(i) "Past NOx emission rate" means the emission rate of an affected engine in grams  
per brake horsepower-hour as determined by performance testing consistent with the  
requirements of 40 C.F.R., part 60, appendix A, as adopted by reference in R 336.1801.  
Where the performance test data are not available, the past NOx emission rate may be  
determined by the department on a case-by-case basis using, for example, appropriate  
emission factors. For large NOx SIP call engines, the past NOx emission rate is the  
uncontrolled emission rate.  
(j) "Projected operating hours" means the projected actual number of hours of  
operation per ozone control period for an affected engine.  
Page 28  
(k) "Projected NOx emission rate" means the projected emission rate in grams per  
brake horsepower-hour after installation of controls on an affected engine.  
(l) "Rich-burn engine" means a spark-ignited stationary internal combustion engine  
in which the concentration of oxygen in the exhaust stream before any dilution is 1% or  
less measured on a dry basis.  
(m) "Stationary internal combustion engine" means an internal combustion engine of  
the reciprocating type that is either attached to a foundation at a facility or is designed to  
be capable of being carried or moved from 1 location to another and remains at a single  
site at a building, structure, facility, or installation for more than 12 consecutive months.  
An engine, or engines, that replaces an engine at a site that is intended to perform the  
same or similar function as the engine replaced is included in calculating the consecutive  
time period.  
(2) Applicability. The requirements of this rule apply to the owner or operator of a  
large NOx SIP call engine located in the Michigan fine grid zone defined in R  
336.1803(1).  
(3) Standards. After May 1, 2007, an owner or operator of a large NOx SIP call  
engine shall not operate the engine in the ozone control period unless the owner or  
operator complies with either the requirements of a compliance plan which meets the  
following provisions listed in subdivision  
(a) of this subrule or the emission rate limitations expressed as oxides of nitrogen  
listed in subdivision (b) of this subrule:  
(a) Compliance plan includes the following:  
(i) Shall be approved by the department.  
(ii) Shall demonstrate enforceable emission reductions from 1 or more stationary  
internal combustion engines equal to or higher than the facility seasonal NOx 2007  
tonnage reduction.  
(iii) May cover some or all engines at an individual facility or at several facilities or  
at all facilities in the Michigan fine grid zone that are under control of the same owner or  
operator.  
(iv) Shall be submitted to the department by October 1, 2006.  
(v) Shall include the following items:  
(A) A list of affected engines, including the engine's manufacturer, model, facility  
location address, and facility state registration number.  
(B) The projected ozone control period hours of operation for each affected engine  
and supporting documentation.  
(C) A description of the oxides of nitrogen emissions control installed, or to be  
installed, on each affected engine and documentation to support the projected NOx  
emission rates.  
(D) The past and projected NOx emission rates for each affected engine in grams per  
brake horsepower-hour.  
(E) A numerical demonstration that the emission reductions obtained from all  
affected engines will be equivalent to or greater than the owner or operator's facility  
seasonal NOx 2007 tonnage reduction, based on the difference between the past NOx  
emission rate and the projected NOx emission rate multiplied by the projected operating  
hours for each affected engine.  
(F) Provisions for monitoring, reporting, and recordkeeping for each affected engine.  
Page 29  
(vi) The projected NOx emission rate in grams per brake horsepower-hour for each  
affected engine shall be included in a federally enforceable permit.  
(b) The following are NOx emission rate limitations:  
(i) Rich-burn, 1.5 grams per brake horsepower per hour.  
(ii) Lean-burn, 3.0 grams per brake horsepower per hour.  
(iii) Diesel, 2.3 grams per brake horsepower per hour.  
(iv) Dual fuel, 1.5 grams per brake horsepower per hour.  
(4) Reporting, monitoring, and recordkeeping. An owner or operator subject to the  
requirements of subrule (3) of this rule shall comply with the following requirements:  
(a) Monitoring requirements. Each affected engine subject to this rule shall comply  
with the following requirements:  
(i) Complete an initial performance test not later than 90 days after May 1, 2007,  
consistent with the requirements of 40 C.F.R., part 60, appendix A, as adopted by  
reference in R 336.1801, following installation of emission controls required to achieve  
the projected NOx emission rate in subrule (3)(a) of this rule or the emission rate limit  
specified in subrule (3)(b) of this rule. For this and any subsequent performance test, an  
owner or operator of an affected engine shall submit a test plan to the department not less  
than 30 days before the scheduled test date. To ensure proper testing, the plan shall  
supply the information in the department format for submittal of source emission test  
plans and reports.  
The owner or operator shall give the department a reasonable  
opportunity to witness the tests. An owner or operator shall submit 2 copies of each  
compliance performance test to the department within 60 days of completion of the  
testing.  
The test results shall be presented and include data as requested in the  
department format for submittal of source emission test plans and reports.  
(ii) Perform monitoring sufficient to yield reliable data for each ozone control period  
that is representative of a source's compliance with the projected NOx emission rate in  
subrule (3)(a) of this rule or the emission rate limit specified in subrule (3)(b) of this rule.  
The monitoring may include 1 of the following:  
(A) Performance tests consistent with either of the following adopted standards:  
(1) The provisions of 40 C.F.R. part 60, subpart A and appendices A, B, and F, and  
part 75 (2005) are adopted by reference in these rules. Copies of the 40 C.F.R. parts 60  
and 75 may be inspected at the Lansing office of the air quality division of the  
department of environmental quality. Copies of 40 C.F.R. parts 60 and 75 (2005) are  
available for inspection and purchase at the Department of Environmental Quality, Air  
Quality Division, 525 West Allegan Street, P.O. Box 30260, Lansing, Michigan 48909-  
7760, at a cost at the time of adoption of these rules of $58.00 for part 60.1-end, $57.00  
for part 60 appendices, and $62.00 for part 75. Copies may be obtained from the  
Superintendent of Documents, Government Printing Office, P.O. Box 371954,  
Pittsburgh, Pennsylvania 15250-7954, at a cost at the time of adoption of these rules of  
$58.00 for part 60.1-end, $57.00 for part 60 appendices, and $62.00 for part 75, or on the  
(2) The provisions of ASTM D6522-00 (2005), "Standard Test Method for  
Determination of Nitrogen Oxides, Carbon Monoxide, and Oxygen Concentrations in  
Emissions From Natural Gas-Fired Reciprocating Engines, Combustion Turbines,  
Boilers, and Process Heaters Using Portable Analyzers," are adopted by reference in  
these rules. Copies of ASTM D6522-00 (2005) are available for inspection and purchase  
Page 30  
at the Department of Environmental Quality, Air Quality Division, 525 West Allegan  
Street, P.O. Box 30260, Lansing, Michigan 48909-7760, at a cost at the time of adoption  
of these rules of $34.00.Copies may be obtained from the American Society for Testing  
and Materials, 100 Barr Harbor Drive, P.O. Box C700, West Conshohocken,  
the time of adoption of these rules of $34.00.  
(B) A parametric monitoring program that specifies operating parameters, and their  
ranges, that shall provide reasonable assurance that each engine's emissions are consistent  
with the requirements of subrule (3) of this rule.  
(C) A predictive emissions measurement system that relies on automated data  
collection from instruments.  
(D) A continuous emission monitoring system that complies with the procedures set  
forth in 40 C.F.R., part 60, subpart A and appendix B, and with the quality assurance  
procedures in appendix F; or 40 C.F.R., part 75, and associated appendices, as applicable  
and acceptable to the department. Title 40 C.F.R. parts 60 and 75 are adopted by  
reference in R 336.1801. An owner or operator of an emission unit which elects this  
option shall submit a monitoring plan to the department not less than 30 days before  
installation. The owner or operator shall provide the department with a 30-day notice  
before a relative accuracy test audit.  
(b) Recordkeeping requirements are as follows:  
(i) Maintain all records necessary to demonstrate compliance with the requirements  
of this rule for a period of 5 calendar years at the plant at which the affected engine is  
located.  
The records shall be made available to the department and the U.S.  
environmental protection agency upon request.  
(ii) For each engine subject to the requirements of this rule, the owner or operator  
shall maintain records of all of the following:  
(A) Identification and location of each engine subject to the requirements of this  
subrule.  
(B) Calendar date of record.  
(C) The number of hours the unit is operated during each ozone control period  
compared to the projected operating hours.  
(D) Type and quantity of fuel used.  
(E) The results of all compliance tests.  
(c) Reporting requirements. An owner or operator subject to the requirements of  
this rule shall submit the results of all compliance tests to the department within 60 days  
of completion of the testing.  
History: 2006 MR 22, Eff. Nov. 20, 2006.  
R 336.1821 CAIR NOX ozone season and annual trading programs;  
applicability determinations.  
Rule 821. (1) This rule establishes Michigan's CAIR ozone season and annual  
emission budgets and trading programs for all of the following units:  
(a) CAIR NOX units as defined pursuant to 40 C.F.R.  
reference in R 336.1802a.  
§97.104, adopted by  
Page 31  
(b) CAIR NOX ozone season units as defined pursuant to 40 C.F.R §97.304, adopted  
by reference in R 336.1802a.  
(c) All units required to be in the state's NOX SIP call trading program that are not  
already included under 40 C.F.R. §96.304 and are defined in R 336.1803(3)(f)(ii) and  
(p).  
(d) For purposes of allocating allowances under R 336.1821 to R 336.1826, the  
following units which are not addressed in subparagraphs (a), (b) and (c) of this subrule  
are CAIR NOX ozone season units:  
(i) Renewable energy sources.  
(ii) Renewable energy projects.  
(2) An EGU located in Michigan and subject to the requirements pursuant to R  
336.1821(a), (b) or (c) shall apply for and receive an annual or ozone season CAIR NOX  
permit. In addition, non-EGUs as defined in R 336.1803(3)(p) shall apply for and  
receive an ozone season CAIR NOX permit. This permit shall be administered under R  
336.1214 and shall be incorporated into the source's renewable operating permit as an  
attachment. A federally enforceable NOX budget permit issued under the federal NOX  
budget program pursuant to R 336.1808 shall remain in effect until the CAIR NOX ozone  
season permit has been approved by the department.  
(3) The fuel type adjusted allocations for each existing EGU shall be determined by  
multiplying the appropriate NOX emission rate and heat input as determined in  
accordance with R 336.1822 and R 336.1830 with an appropriate fuel adjustment factor  
coefficient as follows:  
(a) For a solid fuel-fired EGU, the allocation calculations shall be adjusted by  
multiplying the allocation values by 100%, i.e. 1.0.  
(b) For a liquid fuel-fired EGU, the allocation calculations shall be adjusted by  
multiplying the allocation values by 60%, i.e. 0.60.  
(c) For a gaseous fuel-fired EGU, the allocation calculations shall be adjusted by  
multiplying the allocation values by 40%, i.e. 0.40.  
(d) For a multi-fueled EGU, the allocation adjustment calculation shall be a weighted  
average based on the percentage heat input from each type of fuel burned in the unit,  
unless the source can demonstrate that certain types of fuel used in the process provided  
less than 10% of the annual heat input. If so, then the allocation adjustment is calculated  
based on only those fuel types which contributed 10% or more of the annual heat input.  
(4) The owner or operator of any CAIR NOX ozone season or annual unit shall  
submit both of the following data within 30 days upon request by the department:  
(a) A unit's ozone season and annual heat input values or megawatt energy produced,  
which shall be the same data reported in accordance with 40 C.F.R. part 75 to the extent  
the unit is subject to 40 C.F.R. part 75 for the period involved.  
(b) A unit's total tons of oxides of nitrogen emissions during specified calendar years  
or ozone seasons as determined under 40 C.F.R. part 75, adopted by reference in R  
336.1802a.  
(5) Effective January 1, 2009, the provisions of R 336.1802, R 336.1803(1) and R  
336.1803(2), R 336.1804, R 336.1805, R 336.1806, R 336.1807, R 336.1808, R  
336.1809, R 336.1810, R 336.1811, R 336.1812, R 336.1813, R 336.1814, R 336.1815,  
and R 336.1816 shall not apply to the control period beginning in 2009 or any control  
period thereafter.  
Page 32  
(6) Pursuant to the provisions in 40 C.F.R. 96.54 and for the 2009 control period  
only, if the U.S. environmental protection agency determines that there were excess  
emissions during the 2008 control period, deductions for excessive emission penalties  
shall be taken from the 2009 CAIR NOX ozone season allowances. Title 40 C.F.R.  
§96.54 is adopted by reference in R 336.1802a.  
(7) Pursuant to any NOX SIP unused set-aside allowances through 2008 that are  
accumulated within the state account, the department shall allocate these allowances  
according to R 336.1823.  
(8) Permitted NOX emission rates, for the purposes of allocating allowances  
pursuant to R 336.1822 and R 336.1830, shall be in a legally enforceable permit to install  
or renewable operating permit issued on or before August 1, 2008, for the October 2008  
allocating time period; on or before August 1, 2011, for the October 2011 allocating time  
period and thereafter each August 1 of the year that is 3 years after the last year of  
allocation submittal time period.  
History: 2007 MR 12, June 25, 2007; 2009 AACS.  
R 336.1822 CAIR NOX ozone season trading program; allowance allocations.  
Rule 822. (1) The CAIR NOX ozone season trading program budget allocated by the  
department under subrule (3) of this rule for the CAIR NOX ozone season control periods  
to the EGUs, non-EGUs, and renewable energy sources shall annually equal the total  
number of tons of oxides of nitrogen emissions as indicated in the following manner:  
(a) The total CAIR NOX ozone season budget for the ozone season time period of  
2010 to 2014 is 31,180 tons. These allocations shall be distributed as follows:  
(i) The CAIR NOX ozone season budget available to existing and newly-affected  
EGUs. The following applies:  
(A) For 2010 and 2011 ozone season control periods equals 28,321 tons.  
(B) For 2012 to 2014 ozone season control periods equals 28,021 tons.  
(ii) The CAIR NOX ozone season budget available to existing non-EGUs for the  
2010 to 2014 ozone season control periods is 1,309 tons.  
(iii) The CAIR NOX ozone season budget available to new non-EGUs and EGUs.  
The following applies:  
(A) For 2010 and 2011 ozone season control periods is 700 tons.  
(B) For 2012 to 2014 ozone season control periods is 1,000 tons.  
(iv) The CAIR NOX ozone season budget available to renewable energy sources and  
projects in the 2010 to 2014 ozone season control periods is 200 tons.  
(v) The CAIR NOX ozone season budget available to all existing EGUs and non-  
EGUs that have submitted an acceptable demonstration of a hardship to the department,  
in the 2010 to 2014 ozone season control periods is 650 tons.  
(b) The total CAIR NOX ozone season budget for the ozone season time period of  
2015 and thereafter is 26,351 tons. These allocations shall be distributed as follows:  
(i) The CAIR NOX ozone season budget available to existing EGUs in the  
2015 and thereafter ozone season control periods is 22,792 tons.  
(ii) The CAIR NOX ozone season budget available to existing ozone season non-  
EGUs for the 2015 and thereafter ozone season control periods is 1,309 tons.  
Page 33  
(iii) The CAIR NOX ozone season budget available to new non-EGUs and EGUs in  
the 2015 and thereafter ozone season control periods is 1,400 tons.  
(iv) The CAIR NOX ozone season budget available to renewable energy sources and  
projects in the 2015 and thereafter ozone season control periods is 200 tons.  
(v) The CAIR NOX ozone season budget available to all existing EGUs and non-  
EGUs that have submitted an acceptable demonstration of hardship to the department, in  
the 2015 and thereafter ozone season control periods is 650 tons.  
(2) CAIR NOX allowances for the 2009 ozone season control period shall be the  
same allowances as were allocated under the NOX budget trading program. For newly-  
affected EGUs which were not subject to the federal NOX budget program, these units  
are eligible to apply for allowances from the CAIR NOX ozone season new source set-  
aside pool for the 2009 ozone season, pursuant to R 336.1823.  
(3) The department shall allocate CAIR NOX ozone season allowances to existing  
EGUs and non-EGU ozone season units for calendar years 2010 and thereafter according  
to the following schedule:  
(a) A 3-year allocation that is 3 years in advance of the 2010 ozone season and 4  
years in advance of each subsequent ozone season control period. The 3-year allocation  
shall be as follows:  
(i) By 60 days after the effective date of this rule or April 30, 2007, whichever is  
earlier, the department shall submit to the U.S. environmental protection agency the  
CAIR NOX ozone season allowance allocations, under this subrule, for the ozone season  
control periods in 2010 and 2011.  
(ii) By October 31, 2008, the department shall submit to the U.S. Environmental  
protection agency the CAIR NOX ozone season allowance allocations, under this  
subrule, for the ozone season control periods in 2012, 2013, and 2014.  
(iii) By October 31, 2011, and thereafter each October 31 of the year that is 3 years  
after the last year of allocation submittal, the department shall submit to the U.S.  
environmental protection agency the CAIR NOX ozone season allowance allocations as  
indicated under this subrule.  
(4) For the CAIR NOX ozone season control periods under subrule (3) of this rule,  
the department shall allocate allowances to existing EGU and non-EGU ozone season  
units that commenced operation before January 1 of the most recent year of the 5-year  
period used to calculate heat input as follows:  
(a) The department shall allocate allowances to each existing EGU ozone season unit  
as follows:  
(i) During calendar years 2010 to 2014 as follows:  
(A) Existing EGUs with a permitted NOX emission rate equal to or less than 0.10  
pounds per million Btu shall receive an initial unadjusted allocation of allowances  
determined by calculating the arithmetic average of the CAIR target emission rate  
multiplied by the appropriate fuel adjustment factor plus the unit's permitted NOX  
emission rate, which is then multiplied by the heat input as determined under subrule (6)  
of this rule, divided by 2,000 pounds per ton, and rounded to the nearest whole oxides of  
nitrogen allowance, as appropriate.