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Phase II Acid Rain Permits Program
Phase II Acid Rain Program Overview
Electric generating units (EGU) which sell electricity to the grid and burn fossil fuel may be required to obtain and operate in compliance with a Phase II acid rain permit, pursuant to Title IV of the federal Clean Air Act. Only those EGUs that have a nameplate capacity of less than 25 MW and burn a fuel with an annual average sulfur content of less than 0.05% are exempt from Title IV.
The Michigan Department of Environmental Quality, Air Quality Division (AQD) is the authority responsible for issuance of Phase II acid rain permits in Michigan. Units which become subject to Title IV are required to submit an application to AQD 24 months before the unit commences operation. Units which are exempt from the Acid Rain program must submit the exemption form (original and one copy) to AQD. All acid rain forms should be sent to Brian Carley at MDEQ-AQD, 301 E. Louis Glick Hwy, Jackson, MI 49201. Please note that one copy must also be sent to the U.S. EPA. Application and exemption forms and instructions are available from the U.S. EPA Acid Rain Forms webpage.
Any operating stationary combustion source that emits SO2 but is not otherwise required to meet the mandatory SO2 emissions limitations of Title IV is eligible to opt into the Acid Rain program. Combustion sources are defined as fossil fuel-fired boilers, turbines or internal combustion engines. The Opt-in program offers a combustion source a financial incentive to voluntarily reduce SO2 emissions. By reducing emissions below allowance allocation, an opt-in source will have unused allowances which can be sold in the SO2 allowance market. Opting in will be profitable if the revenue from the sale of allowances exceeds the combined cost of the emissions reduction and the cost of participating in the Opt-in program. Further information on the Opt-in program is available on the U.S.EPA Air Markets webpage.
Any source subject to the Phase II permit program may also be required to obtain a Michigan Clean Air Interstate Rule (CAIR) permit. For further information, visit the CAIR program overview webpage.
Phase II Acid Rain Permits' Interface with Renewable Operating Permits
All sources subject to the Title IV Acid Rain program are also required to obtain a Renewable Operating Permit (ROP). For new sources, the Title IV Phase II Acid Rain application is considered a temporary acid rain permit until the ROP and final Acid Rain permit are issued together. All of the applicable requirement conditions are included in the application. Through signature on this application by a designated representative or an alternate representative, the source agrees to follow these conditions until the Acid Rain permit is formally issued with the ROP.
Phase II Acid Rain permits expire in conjunction with the facility's ROP and renewal applications must be submitted with the ROP renewal application. More information on the ROP program can be found through the AQD's ROP webpages.
Additional information on acid rain is available at: