State of Illinois
91st General Assembly
Public Acts

[ Home ]  [ ILCS ] [ Search ] [ Bottom ]
 [ Other General Assemblies ]

Public Act 91-0631

SB1088 Enrolled                               LRB9102840LDpkA

    AN ACT to  amend  the  Environmental  Protection  Act  by
adding Section 9.9.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5.  The Environmental Protection Act  is  amended
by adding Section 9.9 as follows:

    (415 ILCS 5/9.9 new)
    Sec. 9.9.  Nitrogen oxides trading system.
    (a)  The General Assembly finds:
         (1)  That USEPA has issued a Final Rule published in
    the  Federal  Register  on  October  27,  1998,  entitled
    "Finding  of  Significant Contribution and Rulemaking for
    Certain States in the Ozone  Transport  Assessment  Group
    Region  for  Purposes  of  Reducing Regional Transport of
    Ozone", hereinafter referred to as the  "NOx  SIP  Call",
    compliance  with which will require reducing emissions of
    nitrogen oxides ("NOx");
         (2)  That reducing emissions of  NOx  in  the  State
    helps  the State to meet the national ambient air quality
    standard for ozone;
         (3)  That  emissions  trading  is  a  cost-effective
    means of obtaining reductions of NOx emissions.
    (b)  The Agency shall propose and the Board  shall  adopt
regulations  to  implement  an interstate NOx trading program
(hereinafter referred to as the  "NOx  Trading  Program")  as
provided  for  in  40 CFR Part 96, including incorporation by
reference of appropriate provisions of 40  CFR  Part  96  and
regulations  to  address  40  CFR  Section  96.4(b),  Section
96.55(c),  Subpart E, and Subpart I.  In addition, the Agency
shall propose  and  the  Board  shall  adopt  regulations  to
implement  NOx  emission  reduction programs for cement kilns
and stationary internal combustion engines.
    (c)  Allocations of  NOx  allowances  to  large  electric
generating  units  ("EGUs") and large non-electric generating
units ("non-EGUs"), as defined by 40 CFR Part 96.4(a),  shall
not  exceed  the  State's  trading  budget  for  those source
categories to be included in the  State  Implementation  Plan
for NOx.
    (d)  In adopting regulations to implement the NOx Trading
Program, the Board shall:
         (1)  assure  that  the economic impact and technical
    feasibility of NOx emissions  reductions  under  the  NOx
    Trading   Program   are   considered   relative   to  the
    traditional regulatory control requirements in the  State
    for EGUs and non-EGUs;
         (2)  provide  that  emission  units,  as  defined in
    Section 39.5(1) of this Act, may opt into the NOx Trading
         (3)  provide  for  voluntary   reductions   of   NOx
    emissions  from  emission  units,  as  defined in Section
    39.5(1)  of  this  Act,  not  otherwise  included   under
    paragraph  (c)  or  (d)(2)  of  this  Section  to provide
    additional  allowances  to  EGUs  and  non-EGUs   to   be
    allocated  by  the Agency.  The regulations shall further
    provide that such voluntary  reductions  are  verifiable,
    quantifiable, permanent, and federally enforceable;
         (4)  provide  that  the  Agency allocate to non-EGUs
    allowances that are designated in the  rule,  unless  the
    Agency  has  been directed to transfer the allocations to
    another unit subject  to  the  requirements  of  the  NOx
    Trading Program, and that upon shutdown of a non-EGU, the
    unit  may  transfer  or  sell the NOx allowances that are
    allocated to such unit; and
         (5)  provide  that  the  Agency  shall   set   aside
    annually  a number of allowances, not to exceed 5% of the
    total EGU trading budget, to be  made  available  to  new
              (A)  Those   EGUs   that   commence  commercial
         operation, as defined in 40 CFR Section 96.2,  at  a
         time  that is more than half way through the control
         period in  2002  shall  return  to  the  Agency  any
         allowances  that were issued to it by the Agency and
         were not used for compliance in 2003.
              (B)  The Agency may charge EGUs  that  commence
         commercial  operation,  as defined in 40 CFR Section
         96.2,  on  or  after  January  1,  2003,   for   the
         allowances it issues to them.
    (e)  The Agency may adopt procedural rules, as necessary,
to   implement  the  regulations  promulgated  by  the  Board
pursuant  to  subsections  (b)  and  (d)  and  to   implement
subsection (i) of this Section.
    (f)  The regulations promulgated by the Board pursuant to
subsections (b) and (d) of this Section shall not be enforced
until  the  later  of  May  1,  2003, or the first day of the
control season subsequent to the calendar year in  which  all
of  the other states subject to the provisions of the NOx SIP
Call  that  are  located  in  USEPA  Region  V  or  that  are
contiguous to Illinois have adopted regulations to  implement
NOx  trading  programs  and  other required reductions of NOx
emissions pursuant to the NOx SIP Call, and such  regulations
have  received  final  approval  by  USEPA  as  part  of  the
respective  states'  SIPS for ozone, or a final FIP for ozone
promulgated by USEPA is effective for such other states.
    (g)  To the extent that a court of competent jurisdiction
finds  a  provision  of  40  CFR   Part   96   invalid,   the
corresponding  Illinois  provision shall be stayed until such
provision of 40 CFR Part 96  is  found  to  be  valid  or  is
re-promulgated.  To  the  extent  that  USEPA or any court of
competent  jurisdiction  stays  the  applicability   of   any
provision  of  the NOx SIP Call to any person or circumstance
relating to Illinois, during the period  of  that  stay,  the
effectiveness  of  the corresponding Illinois provision shall
be  stayed.  To  the  extent  that  the  invalidity  of   the
particular  requirement  or application does not affect other
provisions or applications of the NOx SIP Call pursuant to 40
CFR 51.121 or the NOx trading program pursuant to 40 CFR Part
96 or 40 CFR Part 97, this Section, and rules or  regulations
promulgated  hereunder,  will  be  given  effect  without the
invalid provisions or applications.
    (h)  Notwithstanding any other provision of this Act, any
source or other authorized person that  participates  in  the
NOx  Trading  Program  shall  be  eligible  to  exchange  NOx
allowances with other sources in accordance with this Section
and with regulations promulgated by the Board or the Agency.
    (i)  There is hereby created within the State Treasury an
interest-bearing  special fund to be known as the NOx Trading
System Fund, which shall be  used  and  administered  by  the
Agency for the purposes stated below:
         (1)  To  accept  funds from persons who purchase NOx
    allowances from the Agency;
         (2)  To disburse the proceeds of the NOx  allowances
    sales  pro-rata  to  the  owners or operators of the EGUs
    that received allowances from the Agency but not from the
    Agency's set-aside, in accordance with  regulations  that
    may be promulgated by the Agency; and
         (3)  To finance the reasonable costs incurred by the
    Agency in the administration of the NOx Trading System.

    Section  95.   The State Finance Act is amended by adding
Section 5.490 as follows:

    (30 ILCS 105/5.490 new)
    Sec. 5.490.  The NOx Trading System Fund.
    Section 99.  Effective date.  This Act takes effect  upon
becoming law.

[ Top ]