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XXXS\  `&Times New RomanS 02%2A`Arial6o i4Heading 2  2?%2A`Arial?    S\  `&Times New RomanS  2<:Default Para<AA :Body Text In X 5+4 44 <DL!5  5+ 4 <DL!50> .Header !>44 <DL!>0> .Footer !>44 <DL!>(2q$ ,!..      .XXX.XXXX.X   35;AGMSY_11.a.i.1.a.i.1.a.' i. 35;AGMSY_2a)a.i.1.a.i.1.a.) i.#|x(r$..      .XXX.XXXX.X\\UTSTATE\air-hp5si0(9 Z6Times New Roman Regular.X3#37=CIQYag1.a.i.(1)(a)(i)1)a)3i)Q*[DU[Eh*OCUMENT샤U;<=>?@ABhCEIMQUY]aAutoList122222222i)1)a)(;3$2#  0  .3  0  (O;$0  2#  a  .3  0` (#(#(b$0  0` (#(#2#   .3  0 ` (#` (#(xir$0  0` (#(#0 ` (#` (#2#(  0  )3  0 (# (#($0  0` (#(#0 ` (#` (#0 (# (#2#(  a  )3  0h(#(#(F$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#2#(   )3  0h(#h(#($0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#2#  0  )3  0(#(#({$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#0(#(#2#  a  )3  0p(#(#(EhCEKQW]cioAutoList21.1.1.1.1.1.1.1.(3$ ,!..      .XXX.XXXX.X   . D)..      .XXX.XXXX.X  _&K%XXTracking,TriggeringandAuditsPaper@May7,2001:!:!:!(#Page  1  0  AArial Bold ,!..      .XXX.XXXX.X  _  ,..      XXXXXXXX  HE  XGXXX  & ( _EmissionTrackingPriortoTriggering  ЀtheBackstopEmissionTradingProgram#XXGXw#  '(TheAnnexoutlineddecliningSO2emissiontargetsfortheregion,withprovisionstotriggerabackstop,regulatory,emissiontradingprogramifthosetargetswerenotmet.Theunderlyinggoalofthisbackstopprogramistorelyonotherregulatoryrequirementsandvoluntarymeasures,andtheabilityofwesternSO2sourcestoplanfornecessarycapitalexpendituresthroughtheirlongtermbusinessplans.Acriticalelementofthisplanistheabilitytotrackemissionchangesovertimetoensurethattheregionaltargetshavebeenmet,andtodeterminewhetherthebackstoptradingprogramhasbeentriggered.TheMarketTradingForumhasdeterminedthatthetrackingsystemhasdifferentfunctionspriortotheprogramtriggerandafterthetradingprogramisinplace.Priortotheprogramtrigger,itisimportanttomeasureprogressovertime,andtoensurethattheunderlyinggoalsarebeingmet.Duringthisperiodoftime,itismostimportanttotrackchanges,andtoensurethattheeffectsofnewmonitoringtechniquesareaddressedsothatonlyrealemissionchangesaremeasured.Aftertheprogramhasbeentriggered,thefocusshiftstocomplianceforindividualsources,andtheassurancethatatonequalsaton.Inthissecondphase,fixedmonitoringprotocolsbecomeimportanttoensurethatatonreductionfromonesourceequalsatonreductionfromanothersource.Thispaperisfocusedontheemissiontrackingprocesspriortotheprogramtrigger.Theemissiontrackingprocessaftertheemissiontradingprogramisinplacewillbefurtherdefinedinthemodelrule,monitoringprotocols,andothersupportingdocumentation.Thepapercoversfourtopics:technicalsupportingdocumentationfortheSIP_submittals_;inventorytracking;programaudits;andreconciliationandtrackingofchanges. H 2XyXXX     &      TechnicalSupportingDocumentationfortheRegionalHazeSIPsubmittal,  December31,2003  L  ( Ԍ̌XXXXy  2  '@   b ' (033b   ,B.4 <DL!XB  X,E(4 4 <DL!4X!E 2  1  .3      TheregionalhazeSIP orTIPthatissubmittedin2003willincludecitationstoexisting ! state/tribalrulesrequiringsourceemissionsinventoryreportingandcontaindocumentationshowingtheemissioncalculationmethodologyforallstationarysourcesinthestatewithactualemissionsgreaterthan100tons/yearofSO2intheSIPbaseyear(1996).Thedocumentationwillcontainenoughinformationtoensurethatthestateandthesourcewillbeabletotrackchangesinemissioncalculationmethodologyduetoimprovedinventorymethodologiesinthefuture.CurrentEPAguidance,suchasthe_EIIP_guidanceandSIPguidanceforPM,OzoneandRegionalHaze,establishtherequirementsthatstatesmustmeetwhenpreparingemissioninventoriesforSIPpurposes. ݌̌ X! X44X!!      ,B.4 <DL!XB  X,E(4 4 <DL!4X!E2  2  .3      TheSIPsubmittal willalsocontainasummaryofthe1998emissioninventoryfornon *:&( utilitiesand1999acidrainemissioninventoryforutilities.Anynewsourcesthatwerenotincludedinthebaseyearinventorywillbeidentified.Inaddition,iftherewerechangesintheemissioninventorytechniquesthatwereusedbyasourcesincethe1996inventory,thesechangeswillbedocumented.Thesechangeswillbeidentifiedaspartof .), thequalityassuranceprocess,wherestateswill,totheextentpossible,documentthereasonforsignificantemissionschanges,orwillchecktomakesurethatknownchangesintheinventorytechniqueshaveoccurred(suchasnewemissionfactors).k݌̌ X! X44X!!        ,B.4 <DL!XB  X,E(4 4 <DL!4X!E2  3  .3      TheSIPsubmittal willalsocontainasummaryofthe2000emissioninventoryforall9 ` statesand211tribesinthetransportregiontodemonstratethatregionalemissionshavedeclinedby13%fromthe1990emissioninventory.TheWRAPwillpreparethisregionalinventory.Inaddition,iftherewerechangesintheemissioninventorytechniquesthatwereusedbyasourcesincethe1996inventory,thesechangeswillbedocumented.݌̌ X! X44X!!     $  2XyXXX     &     StationarySourceTracking,2003!2018   Ԍ   ЌXXXXy  2  'Beginningwith2003andcontinuingthrough2018,eachstateandtribeparticipatingintheprogramwill,afterappropriatequalityassuranceandpublicreviewatthestatelevel,annuallysubmitanemissionsreporttotheTrackingSystemAdministratorforthesourcescoveredbytheprogram.TheWRAPiscurrentlyexpectedtoactastheTrackingSystemAdministrator,eitherthroughtheEmissionsForumorthroughtheRegionalModelingCenter.However,thestatesandtribesmaychooseadifferentTrackingSystemAdministratorinthefuture.ThereportswillbesubmittedtotheTrackingSystemAdministrator bySeptember30oftheyearfollowingthe ,| applicablecomplianceyear.Theannualreportswillcontainan exceptionsreportwiththefollowinginformation:--   ,B.4 <DL!XB  X,E(4 4 <DL!4X!EG2  1  )3      identificationandexplanationfornew/additionalSO2sources>100tpythatwerenot , containedinthepreviousyearsemissionsreport; G#݌  Ќ X! X44X!!   ,B.4 <DL!XB   ,,K.4 <DL!4X!K  X,E(4 4 <DL!4X!E2  2  )3      explanationforsourcesshutdownorremovedfromthepreviousyearsemissionsreport; ݌  Ќ ,X*4X!44X!*   K.4 <DL!4X!K   ,,K.4 <DL!4X!K  X,E(4 4 <DL!4X!EL"2  3  )3      explanationforemissionsvariationsatanycoveredsourcethatexceeds+/20%fromthe x previousyear;andL"1#݌̌ ,X*4X!44X!*   ,H+ 4 <DL!4X!H   ,E.4 <DL!X!E  X,E(4 4 <DL!4X!E$2  4  )3      identification andexplanationofnewemissionsreportingmethodsatanysource.$%݌ <" Ќ X$ X!44X!$   TheTrackingSystemAdministratorwillcompiletheannualemissionsreportsubmittedbythestatesandtribesparticipatingintheprogramintoaregionalemissionreportforsulfurdioxide.TheTrackingSystemAdministratorwillfollowadditionalqualityassuranceprocedurestoidentifypossibleerrorsintheemissionsdata,includingscreeningformissingoraddedsources,namechanges,andsignificantchangesinreportedemissions.Anyquestionsoranomalieswillbereferredbacktothestateortribeforresolution.ByDecember31oftheyearfollowingtheapplicablecomplianceyear,theTrackingSystemAdministratorwillprepareadraftregionalemissionreportthatwillbemadeavailableforpubliccomment.Thereportwillincludethefollowinginformation: L-(+ b ' (00' b--   ,E.4 <DL!X!E  X,E(4 4 <DL!4X!E*2  1  .3      SummaryofregionalSO2emissions(tons/year).*c+݌  Ќ X$ X!44X!$      ,E.4 <DL!X!E  X,E(4 4 <DL!4X!Ed,2  2  .3      Identificationofanypaperemissionincreasesanddecreasesthathaveoccurreddueto  changesinemissioninventorytechniquessincethelastSIPrevisionfortheregionalhazeSIP.Thereportwillcontainarunningregionaltotal,aswellassupportingdocumentationidentifyingthespecificchangesthathaveoccurredatindividualsources.d,C-݌̌ X$ X!44X!$      ,E.4 <DL!X!E  X,E(4 4 <DL!4X!En/2  3  .3      Averageemissionsforthelast3years(ifapplicable)forcomparisontotheregional L  milestone.n/M0݌̌ X$ X!44X!$      ,E.4 <DL!X!E  X,E(4 4 <DL!4X!E12  4  .3      Regionalmilestoneforthecomplianceperiod.1_2݌ $ t Ќ X$ X!44X!$      ,E.4 <DL!X!E  X,E(4 4 <DL!4X!E_32  5  .3      Draftdeterminationthatthemilestonehaseitherbeenmet,orhasbeenexceededthereby  ` triggeringthebackstoptradingprogram._3>4݌̌ X$ X!44X!$   A30daypubliccommentperiodwillbeheld,afterappropriatenotice.TheTrackingSystemAdministratorwillreviewanycommentsthathavebeenreceivedandwillfinalizetheemissionreportforsubmittaltothestatesandtribesthatareparticipatingintheprogram.Thestatesandtribesthatareparticipatingintheprogramwillreviewandapprovethefinalreport.TheparticipatingstatesandtribeswillthensubmitthisreporttotheEnvironmentalProtectionAgency.Ifthemilestonehasbeenexceeded,eachparticipatingstateandtribewilltakeactions,asspecifiedintheMOU,totriggerthetradingprogramwithintheirjurisdiction.Itisexpectedthattheregionalreviewprocess,andapprovalofthefinalreportbyparticipatingstatesandtribeswilloccurbytheendofMarch,fifteenmonthsaftertheendofthecalendaryearfortheapplicablecomplianceyear.However,theremaybecircumstancesthatwoulddelaythisfinaldetermination,includingincreasedinventorypreparationtimeneededbystateswithnumerouslocalairdistricts.Forthisreason,theMTFrecommendsprovidingflexibilityinthetimeframeneededforthisdetermination,withinthefollowingbounds:--   ,E.4 <DL!X!E  X,E(4 4 <DL!4X!Ez:2  1  .3      Iftheprogramistriggered,allsourcesmustbeincompliancewiththeprogrambyno  laterthanDecember31ofthesixthyearfollowingtheyearinwhichthemilestonewasexceeded.Thiscompliancedatewillnotbeaffectedbyanydelaysinfinalizingthereportordelaysinthetriggeringoftheprogramineachjurisdiction.z:Y;݌̌ X$ X!44X!$   ,E.4 <DL!X!E   ,,K.4 <DL!4X!K  X,E(4 4 <DL!4X!E=2  2  .3      ThedeterminationthatthemilestonehasbeentriggeredwilloccurnolaterthanMarch31 0"  ofthesecondyearfollowingtheyearinwhichthemilestonewasexceeded. E.4 <DL!44X!E=>݌ #l! Ќ ,X04X!4X!0    $ $X 2XyXXX     ,&   @  PeriodicProgramAudits @"A @Ԍ $ " ЌXXXXy  2  '$ADuringthepretriggerperiod,thestatesandtribeswill,beginningwithanauditconductedduringtheyear2006thatwillreviewdataforthefirsttwoyearsoftheprogram,andeveryfiveyearsthereafter(i.e.,2011and2016),provideforanindependentauditoftheemissionstrackingsystemtoensurethattheTrackingSystemAdministratorisaccuratelycompilingtheregionalemissionsreport.Thisauditwillbelimitedtoensuringtheintegrityofthedataprovidedbyeachstateduringthe handofftotheregionalgroup,andthetrackingofaccumulatedchangesduringtheperiodbetweenSIPrevisions.Theseperiodicauditswillalsoreviewtheaccuracyandintegrityoftheregionalreportsusedbytheregionalgrouptodeterminecompliancewiththe L-(+ milestones.Thisauditisnotintendedtoencompassafullreviewoftheprocessforcompilingandreporting emissionsatthestateortriballevel,butwillincludeagrosslevelreviewofstate  andtribalinventorymanagementandqualityassurancesystems(i.e.,presenceandexerciseofsystemstoassuredataqualityandintegrity).Inreviewingtheaccuracyofthedata,theauditshoulddiscusstheuncertaintyofemissionscalculations,whetherthisuncertaintyislikelytoaffecttheannualdeterminationofwhetherthemilestoneisexceeded,andshouldidentifyanyrecommendedchangestoemissionsmonitoringorcalculationmethodsordataqualityassurancesystems.Theauditshouldalsoreviewtheadministrativeprocessforcollectingtheannualemissionsdataandmakingtheannualcompliancedetermination,andrecommendanychangesthatcouldimprovetheadministrativeprocess.    L    $  2XyXXX     &   H  ReconciliationandTrackingofChanges HSI /IԌ   ЌXXXXy  2  'GITheregionalmilestoneswerederivedfromthebaseyearinventoryandaprojectedbaselineinventorythatincludedassumptionsaboutgrowthandretirementsofexistingsources.Itisanticipatedthatchangesinemissioninventorytechniques,discoveryoferrors,orcomplianceissueswilloccurinthefuturewiththeresultthatcurrentemissioninventorieswilldivergefromthemethodologyusedtocalculatethebaselineinventory.TheMarketTradingForumrecognizesthatthereareseveralcompetingissueshere.First,itisveryimportanttocompareapplestoappleswhenmeasuringprogressovertime.Compliancewiththemilestonesshouldbedeterminedbyusingthesameassumptionsthatwereusedtodevelopthosemilestones.Second,itisimportanttocontinuetoimprovetheemissioninventoryovertimesothatwehavethebestinformationavailabletotrackprogress.Third,theSIPprocess,especiallyforaregionalprogram,islengthyandcanonlyrealisticallyoccurona5yearscheduleattheminimum.TheMarketTradingForumrecommendsusingthefollowingreconciliationprocesstoprovideflexibility,whilealsoensuringthatallchangesreceiveadequatepublicnoticeandreview.--   ,K.4 <DL!4X!K  X,E(4 4 <DL!4X!EO2  1  .3      Asdescribedabove,theTrackingSystemAdministratorwillreceiveannualemission P! reportsfromtheparticipatingstatesandtribes,andwillthencombinethesereportsintoaregionalemissionreport.Theresultantreportwillbeavailableforpubliccomment,andwillbeapprovedbythestatesandtribesafterconsiderationofthecommentsreceived.ThisprocesswillincludenoticetoandconsultationwiththeWRAPInitiativesandTechnicalOversightCommitteestheappropriateforumsthatreporttothosecommittees.TheTrackingSystemAdministratorwillmaintainalogofallchangesthathaveoccurredsincethemostrecentSIPrevision,andwillincludethesechangesasanadjustmentwhenmakingarecommendationregardingregionalcompliancewiththemilestones.Thefollowingtypesofchangeswillbetracked:OP݌̌ X*4X!44X!*   ,K.4 <DL!4X!K   X,H+4 44 <DL!4X!H  X?% <DL!444X!?mT2  a  .3   `   Changesininventorymethodologies;mTIU݌ t+&) Ќ ,*4X!  X!*      X,H+4 44 <DL!4X!H  X?% <DL!444X!?FV2  b  .3   `   Theadditionofexistingsourcesthatwerenotincludedinthebaseyearinventory;FV"W݌ L-(+ Ќ ,*4X!  X!*      X,H+4 44 <DL!4X!H  X?% <DL!444X!?OX2  c  .3   `   Theadditionofsourcesthathavechosentooptintotheprogram;OX+Y݌  Ќ ,*4X!  X!*   ,B% <DL!4X!B   XB+4 44 <DL!  X!B  X?% <DL!444X!?Z2  d  .3   `   Correctionoferrors;andZl[݌ t Ќ $   X!  X!$      XB+4 44 <DL!  X!B  X?% <DL!444X!?Y\2  e  .3   `   Adjustmentsduetochangesintotalannualemissionslimitationsthathave L  occurredasaresultofenforcementactions.Y\/]݌̌ $   X!  X!$   B+` ` ` <DL!  X!B" XH+4 44 <DL!` ` ` X!H  "^  Newsourcegrowthandtheretirementofexistingsourceswouldnotbeincludedasadjustmentsbecausethesekindsofchangeswereintendedtobeincludedundertheoverallemissioncap."^;_݌̌ X-` ` ` X!444X!-  " XH+4 44 <DL!` ` ` X!H  "s`  "s``݌̌ X-` ` ` X!444X!-  " XH+4 44 <DL!` ` ` X!H  "ca  Example: Anewemissionfactorispublishedforasourcecategorythatdoublesthe   calculatedemissionsofSO2.Thetotalpaperincreasefromthischangeis20,000tonsofSO2,eventhoughtheactualemissionshavenotchanged.Theregionalemissioninventorywillbecalculatedusingthenewemissionfactorandwillthereforeshowanincreaseof20,000tons.TheTrackingSystemAdministratorwillreportthattherehasbeenapaperincreaseof20,000tons(includingdocumentationsothatcircumstancesthatcausedthechangearetransparenttothepublic).Whendeterminingcompliancewiththemilestoneforthatreportingperiod,theTrackingSystemAdministratorwillsubtractthepaperincreasefromtheinventory,andusethatadjustednumbertodetermineiftheregionaltargethasbeenmet."caa݌̌ X-` ` ` X!444X!-  -4X!` ` ` X!-" XB+4 44 <DL!4X!B  *4X!444X!*"e   2.0  TheparticipatingstatesandtribesarerequiredtosubmitaSIPorTIPrevisionevery5 4 years,beginningintheyear2008,totrackprogress.Toassureconsistencyandtheintegrityoftheregionalprogram,allSIPrevisionswillbemadeavailabletoparticipatingstatesandtribesthroughtheWRAPduringthepubliccommentperiodsforeachplanrevision.AlladjustmentsthathaveaccumulatedsincethelastSIPrevisionwillbesubmittedaspartofthenewSIP,andwillthenundergoformalreviewandapprovalbytheEnvironmentalProtectionAgency.Itisanticipatedthattheannualcommentperiodwillensurethatstakeholdersconcernsandquestionshavebeenaddressed,therebyfacilitatingtheapprovaloftheaccumulatedchangesintotheindividualstateSIPs.Becausesomestatesrequireasmuchas18monthstocompletetheirofficialSIPprocess,therecommendedadjustmentstothemilestoneswillneedtobeestablishedapproximately2yearspriortotheSIPsubmittaldeadline.TheTrackingAdministratorwillforwardareporttotheInitiativesOversightCommittee(IOC),foritsconcurrence,detailingthechangesmadebyparticipatingstatesandtribes,andtheaccumulatedimpactofthosechangesontheregionalmilestones.TheIOCwillforwardarecommendationtotheWRAP,foritsapproval,forrevisionstotheregionalmilestones.ThiswillensurethatallstatesandtribesintheprogramadoptthesameregionalmilestonesintotheirSIPsandTIPs.AnychangesthatoccurafterthisdatewillberolledintothenextSIPrevision."e\f݌ (#(# Ќ X$ 4X!4X!$  B+ 4 <DL!4X!B.XXXX0  3.Whenautilitysourcechangesitsflowreferencemethod,anadjustmentmaybeneeded h+&* whendeterminingcompliancewiththe2003,2008and2013Milestones. (#(#  @-(, 0  Step1:CalculationofAdjustmentFactor(#(# 0  Theadjustmentfactorforflowreferencemethodmaybedeterminedinoneofthreeways: (#(# 0  (a)DirectlydeterminedthroughasidebysidecomparisonofdatacollectedwiththenewandoldflowreferencemethodsduringaRATAtest. (#(# 0  (b)DeterminedthroughacomparisonofannualaverageheatrateusingAcidRainheatinputdata(_MMBtu_)andtotalgeneration(_MWHrs_)asreportedto_EIA_.Underthisapproach,theflowadjustmentfactorwillbecalculatedasthefollowingratio: (#(# 0  0` (#(#HeatInput/MWforfirstfullyearofdatausingnewflowratemethod$ ` (#` (# 0  0` (#(#HeatInput/MWforlastfullyearofdatausingoldflowratemethod ` (#` (# 0  (c)DeterminedthroughacomparisonofthestandardCFMperMWbeforeandafterthenewflowreferencemethodbasedonCEMsdatasubmittedintheAcidRainProgram,asfollows: (#(# 0  0` (#(#_SCF_/UnitofGenerationforfirstfullyearofdatausingnewflowratemethodH` (#` (# 0  0` (#(#_SCF_/UnitofGenerationforlastfullyearofdatausingoldflowratemethod ` (#` (#    p 0  Step2:ApplicationofAdjustmentFactor \(#(# 0  TheWRAPhasidentifiedthefollowingthreeoptionsasacceptableforapplyingtheadjustmentfactorforthepurposesoftheannualcompliancecheck,buthasnotyetdeterminedwhichofthethreeoptionsisbest.Thethreeoptionsarelistedbelow.TheWRAPwillcontinuetoworkwithEPAtorecommendapreferredoption. (#(# 0  (a)Usingoneoftheoptionsdescribedabovefordeterminingtheflowadjustmentfactor,revisethesourcesbaselineemissionsforecastfor2003,2008and2013.Foreachyearfollowingtheadoptionofthenewflowreferencemethodthrough2017,reducetheinterimmilestonebythecorrespondingamount.TheannualcompliancecheckwillthenbedonebycomparingregionalSO2emissions(unadjusted)totherevisedmilestone.Anequivalentadjustmentwillalsobemadetothesourcesallocationundertheprogram.Allocationsforothersourcesintheprogramwillnotbeaffected. (#(# 0  (b)Usingoneoftheoptionsdescribedabovefordeterminingtheflowadjustmentfactor,revisethesourcesreportedemissionsonanannualbasis.Foreachyearfollowingtheadoptionofthenewflowreferencemethodthrough2017,theannualcompliancecheckwillbedonebycomparingtheadjustedregionalSO2emissionstotheunadjustedmilestones.Anequivalentadjustmentwillalsobemadetothesourcesallocationforthepurposesoftradingundertheprogram.Allocationsforothersourcesintheprogramwillnotbeaffected. (#(#   T,'+ 0  Itisalsopossibletouseacombinationofthetwoapproaches,wherebytheinterim milestonesareadjustedonlyeveryfiveyears((a)above)andthereportedemissionsforadditionalsourcesmakingthechangeintheinterveningyearsareadjustedforcomparisontothemilestones((b)above).#XXX.Xm#