Skip to content
Air Quality

Clean Air Interstate Rule (CAIR) - Allocations

CAIR is in effect while EPA develops a replacement rule to respond to the U.S. Court of Appeals, D.C. Circuit, remand on December 23, 2008.

Ozone Allocations

Please use the links below for more information on Ozone Allocations of the CAIR program.

Overview

The South Carolina Department of Health and Environmental Control (DHEC), in cooperation with the Clean Air Markets Division of the EPA, administers the CAIR NOX Trading Program. DHEC determines the allocations, also known as allowances or NOX credits for each facility subject to the CAIR in South Carolina. DHEC makes this determination according a regulatory formula that uses heat input data and the type of fuel burned, coal or natural gas in most cases.

The Ozone Season Allocations are for the May to September NOX Trading Program.

Timing of Allocations for Ozone Season Program

EGUs: Regular Allocation

By April 30, 2007, DHEC submitted the allowance allocations to EPA for the control periods 2009-2012, using 2002-2005 Heat Input data.

By September 30, 2007, EPA recorded allowances allocated for the control periods 2009-2014.

By October 31, 2009, and October 31 of every 4th year thereafter, DHEC will submit allowance allocations to EPA for the control periods in the 4th, 5th, 6th, and 7th years after the year of the abovementioned deadlines.

By October 31, 2009, 2013-2016 allocations are due to EPA from DHEC.

By October 31, 2013, 2017-2020 allocations are due to EPA from DHEC.

By December 1, 2009, EPA will record allowances allocated for the control period of 2015.

By December 1, 2010, and December 1 of every 4th year thereafter, EPA will record allowances allocated for the control period in the 6th year after the year of the applicable deadline for recordation.

By December 1, 2010, EPA will record 2016 allocations.

By December 1, 2014, EPA will record 2016 allocations.

Non-EGUs: Regular Allocation

By April 30, 2007, DHEC submitted the allowance allocations to the EPA for the 2009-2012 control periods.

The 2009-2011 control periods will use 1999-2003 Heat Input data

The 2012 control period will use 2004-2005 Heat Input data

By September 30, 2007, EPA recorded allowances allocated for the control periods 2009-2014.

By October 31, 2009, and October 31 of every 4th year thereafter, DHEC will submit allowance allocations to EPA for the control periods in the 4th, 5th, 6th, and 7th years after the year of the abovementioned deadlines.

By October 31, 2009, 2013-2016 allocations are due to EPA from DHEC.

By October 31, 2013, 2017-2020 allocations are due to EPA from DHEC.

By December 1, 2009, EPA will record allowances allocated for the 2015 control period.

By December 1, 2010, and December 1 of every 4th year thereafter, EPA will record allowances allocated for the control period in the 6th year after the year of the applicable deadline for recordation.

By December 1, 2010, EPA will record 2016 allocations.

By December 1, 2014, EPA will record 2020 allocations.

EGUs: New Unit Set-aside Allocations

By October 31, 2009, and October 31 of every 4th year thereafter, DHEC will submit allowance allocations to EPA for the control periods in the 4th, 5th, 6th, and 7th years after the year of the abovementioned deadlines.

By October 31, 2009, 2013-2016 allocations are due to EPA.

By October 31, 2013, 2017-2020 allocations are due to EPA.

By December 1, 2009, EPA will record allowances allocated for the 2015 control period.

By December 1, 2010, and December 1 of every 4th year thereafter, EPA will record allowances allocated for the control period in the 6th year after the year of the applicable deadline for recordation.

By December 1, 2010, EPA will record 2016 allocations.

By December 1, 2014, EPA will record 2020 allocations.

Non-EGUs: New Unit Set-aside Allocations

By February 1, 2010, and February 1 of every year thereafter, NUSA allowance requests are due to DHEC, using data from the calendar year prior to the year of the request.

By July 31, 2009, and July 31 of every year thereafter, DHEC will submit allocations for new units from the new unit set-aside account for the control period of the year of the abovementioned deadline.

By December 1, 2009, and December 1 of every year thereafter, EPA will record allowances allocated for the control period in the year of the applicable deadline for recordation.

New Unit Set-aside Applicability

Only Applies to CAIR NOX Annual and Ozone Season Units.

EGU

A unit that is not allocated CAIR NOX allowances under South Carolina Air Pollution Regulation 61-62.96.342(b) because the unit does not yet have a baseline heat input under South Carolina Air Pollution Regulation 61-62.96.342(a) or; Because all CAIR NOX allowances available under South Carolina Air Pollution Regulation 61-62.96.342(b) for the control period are already allocated.

Non-EGU

A unit that is not allocated CAIR NOX allowances under South Carolina Air Pollution Regulation 61-62.96.342(b) because the unit does not yet have a baseline heat input under South Carolina Air Pollution Regulation 61-62.96.342(a) or; because all CAIR NOX allowances available under South Carolina Air Pollution Regulation 61-62.96.342(b) for the control period are already allocated.

Applicability

Electricity-generating Unit Applicability

Any stationary, fossil-fuel-fired boiler or stationary, fossil-fuel-fired combustion turbine serving at any time, since the later of November 15, 1990, or the start-up of the unit's combustion chamber, a generator with nameplate capacity of more than 25 megawatts of electricity (MWe), producing electricity for sale.

Non-Electricity-generating Unit Applicability

Note: DHEC has started the regulation development process to change the following definition. For more information, see the September 25, 2009 Notice of Drafting.

(A) For units that commenced operation before January 1, 1999, a unit that has a maximum design heat input greater than 250 British thermal units per hour (mmBtu/hr) and does not serve a generator that has a nameplate capacity greater than 25 MWe if any such generator produces an annual average of more than one-third of its potential electrical output capacity for sale to the electric grid during any three calendar year period.

(B) For units that commenced operation on or after January 1, 1999, a unit that has a maximum design heat input greater than 250 mmBtu/hr that:

(i) At no time served a generator producing electricity for sale; or

(ii) At any time served a generator producing electricity for sale, if any such generator has a nameplate capacity of 25 MWe or less and has the potential to use no more than 50 percent of the potential electrical output capacity of the unit.

EGU Ozone Season Allocations

Allocations for the 2009-2012 control periods use single highest adjusted control period heat input data from years 2002-2005.

Allocations for the 2013-2016 control periods use single highest adjusted control period heat input data from years 2005-2008.

The heat input from the data that is determined to be the highest (as described above) will be adjusted by:

A) If the unit is coal-fired during the year, the unit's control period heat input for such year is multiplied by 1.0 (100 percent); or

B) If the unit is not subject to the provision above, the unit's control period heat input for such year is multiplied by 0.60 (60 percent)

DHEC will allocate CAIR NOX allowances to each CAIR NOX unit in an amount determined by: Multiplying the total amount of CAIR NOX allowances allocated (97% of State EGU Budget) by the ratio of the baseline heat input of such CAIR NOX Ozone Season unit to the total amount of baseline heat input of all such CAIR NOX Ozone Season units in the State and rounding to the nearest whole allowance as appropriate.

Allocation = (97% of State Budget) * [(BHI of Unit) / (Total BHI of all Units)]

On September 20, 2007, DHEC submitted the following allocations to EPA CAMD: SC CAIR EGU Ozone Season Allocations for 2009-2012 (xls).

New Unit Set-aside Procedure

DHEC will establish a new unit set-aside for each control period.

EGUs

3% of State EGU NOX Ozone Season Budget

2009-2014 = (15,249 tons * .03) or 457 tons

2015 and thereafter = (12,707 * .03) or 381 tons

Non-EGUs

3% of State Non-EGU NOX Ozone Season Budget

2009 and thereafter = (3,479 * .03) or 104 tons

EGUs and Non-EGUs

DHEC will review each aforementioned request and adjust requests to meet the requirements of South Carolina Air Pollution Control Regulation 61-62.96.342(c)(2) and (3) for EGUs or South Carolina Air Pollution Control Regulation 61-62.96.342(g)(2) and (3) for Non-EGUs.

If the total amount of requests is less than the new unit set-aside budget, then each unit will be rewarded the total amount of allowances requested.

If the total amount of requests is greater than the new unit set-aside budget, then each unit will be rewarded allowances pro rata.

Units Allocation = Unit's Adjusted Allocation * (State new unit set-aside / Total Adjusted Allocation for all units)

e.g. 680 tons * (980 tons / 10,000) = 66.64 or 67 tons

If any unallocated CAIR NOX allowances remain in the new unit set-aside after completion of the allocation procedure for a control period, DHEC will allocate to each CAIR NOX unit that received a regular allocation under South Carolina Air Pollution Control Regulation 61-62.96.342(b) for EGUs or South Carolina Air Pollution Control Regulation 61-62.96.342(f) for Non-EGUs, CAIR NOX allowances in a pro rata amount equal to:

(Amt of Unallocated Allowances) * [(Unit's Allocation) / (97% of State Budget)

105 tons * (54 tons / 980 tons) = 5.7857 or 6 tons

Ozone Season NOX Budget

EGUs

The South Carolina trading budget for Ozone Season allocations of CAIR NOX allowances for the 2009-2014 control periods is 15,249 tons, and in 2015 and thereafter is 12,707 tons.

DHEC will allocate 97% of these allowances to CAIR NOX units, which is 14,792 tons in 2009-2014, and 12,326 tons in 2015 and thereafter.

DHEC will reserve the other 3% for New Units in the New Unit Set-aside process, which is 457 tons in 2009 through 2014 and 381 tons in 2015 and thereafter.

Non-EGUs

The South Carolina trading budget for Ozone Season allocations of CAIR NOX allowances for the control periods in 2009 and thereafter is 3,479 tons.

DHEC will allocate 97% of these allowances to CAIR NOX units, which is 3,375 tons in 2009 and thereafter.

DHEC will reserve the other 3%, or 104 tons in 2009 and thereafter, for New Units in the New Unit Set-aside process.

Non-EGU Ozone Season Allocations

Allocations for the 2009-2011 control periods use single highest adjusted control period heat input data for years 1999-2003.

Allocations for the 2012 control period use single highest adjusted control period heat input data for years 2004-2005.

Allocations for the 2012-2015 control periods use single highest adjusted control period heat input data for years 2004-2007.

Allocations for the 2013-2016 control periods use single highest adjusted control period heat input data for years 2005-2008.

DHEC will allocate CAIR NOX allowances to each CAIR NOX unit in an amount determined by: Multiplying the total amount of CAIR NOX allowances allocated (97% of State Non-EGU Budget) by the ratio of the baseline heat input of such CAIR NOX Ozone Season unit to the total amount of baseline heat input of all such CAIR NOX Ozone Season units in the State and rounding to the nearest whole allowance as appropriate.

Allocation = (97% of State Budget) * [(BHI of Unit) / (Total BHI of all Units)]

On September 20, 2007, DHEC submitted the following allocations to EPA: 2009-2011 SC CAIR Non-EGU Ozone Season Allocations (xls)

Timing Requirements for the Ozone Season New Unit Set-aside

EGUs & Non-EGUs

By February 1, 2009, and February 1 of every year thereafter, facilities subject to CAIR must submit a CAIR NOX allowance allocation request for the year of the deadline.

On or after February 1, 2009 and February 1 of every year thereafter, DHEC will determine allowances for each unit that submits a request for the year of the deadline.

By July 31, 2009, and July 31 of every year thereafter, DHEC will submit allocations to EPA for new units from the new unit set-aside account for the control period of the year of the deadline.


For more information please contact the Bureau of Air Quality at (803) 898-4123 or by email.