I. The owner or operator of each affected source shall file a compliance plan with the department describing the technologies, operational modifications, market-based approaches, or other methods that will be used to comply with the emission caps established under RSA 125-O:3, III. Compliance plans shall also include a report of the mercury content analysis program results required under RSA 125-O:4, II and a report of the stack testing results for mercury emissions from Merrimack Units 1 and 2 and either Schiller Unit 4, 5, or 6 required under RSA 125-O:4, III. An initial compliance plan shall be filed no later than one year after the effective date of this section. Amended compliance plans shall be submitted to the department 45 days prior to the implementation of any change to the plan.
II. The owner or operator of each affected source burning coal as fuel shall conduct a mercury content analysis program. This program shall consist of monthly fuel samples and analyses for at least 12 consecutive months and the submittal of a final report to the department no later than one year after the effective date of this section.
III. Stack testing for mercury emissions from Merrimack Units 1 and 2 and either Schiller Unit 4, 5, or 6 shall be completed using a department approved test method no later than one year after the effective date of this section. The owner or operator shall submit a test protocol to the department at least 45 days prior to the commencement of stack testing.
IV. Compliance with the emission caps established under RSA 125-O:3, III may be demonstrated by making emission reductions at the affected sources, using compliance market-based approaches, or other methods acceptable to the department.
(a)(1) Affected sources may use SO
2 allowances from federal or regional trading and banking programs and incentive programs established under this chapter to comply with the SO
2 emission cap established under RSA 125-O:3, III. In addition, allowances or credits from other programs may be acceptable as determined by the department.
(2) Affected sources shall transfer to the department all annual allocations provided under the federal acid rain program. Affected sources shall receive from the department SO
2 allowances equivalent to the cap established in RSA 125-O:3, III. Additionally, in order to promote local reductions, for each year after the compliance date that combined SO
2 emissions from affected sources are below the annual average emissions for the previous 3 years, affected sources shall receive additional SO
2 allowances in a combined amount equal to the difference between the current year emissions and the average annual emissions for the previous 3 years.
(3) Further, in order to encourage reductions in upwind emissions and thereby provide greater benefit to air quality in New Hampshire, for each 0.80 allowance purchased by an affected source under the federal acid rain program and utilized for compliance with the provisions of this chapter which originates from within the ozone transport region, the affected source shall receive an additional 0.20 allowance from the department.
(4) The combined sum of all allowances received by the affected sources under subparagraphs (a)(2) and (a)(3) shall not exceed 20,000 in any given year, and shall be credited to the affected sources’ accounts in the year following each annual compliance period.
(b) Affected sources may use NOx allowances from federal or regional trading and banking programs, or other programs acceptable to the department, and NOx discrete emissions reductions by affected sources other than Merrimack Units 1 and 2 from state trading and banking programs, to comply with the NOx emission cap established under RSA 125-O:3, III. NOx discrete emissions reductions may only be used to comply with that portion of the NOx emission cap established under RSA 125-O:3, III which does not apply to emissions between May 1 and September 30 of any calendar year.
(c) Affected sources may use CO
2 allowances from federal or regional trading and banking programs, or other programs acceptable to the department, to comply with the CO
2 emission cap established under RSA 125-O:3, III. Early reductions of CO
2 may be banked for future use in regional or national trading programs or to meet the emission caps established under RSA 125-O:3, III.
(d) [Repealed.]
V. The owner or operator of each affected source shall be allowed to recover all prudent costs associated with compliance in a manner consistent with RSA 374-F, RSA 369-B, and the Agreement to Settle PSNH Restructuring, dated August 2, 1999, Revised and Conformed in Compliance with NHPUC Order No. 23,549.
Source. 2002, 130:2. 2006, 105:2, II, eff. June 8, 2006.