Michigan Air Permits System

CAIR Program Overview

On March 10, 2005, the United States Environmental Protection Agency (EPA) issued the Clean Air Interstate Rule (CAIR). CAIR covers 28 eastern states (including Michigan) and the District of Columbia. The rule uses a cap and trade system to reduce sulfur dioxide (SO2) by over 70 percent and nitrogen oxides (NOx) by over 60 percent from 2003 levels.

The Michigan Department of Environmental Quality, Air Quality Division (AQD) has adopted the federal rule with modifications pending final approval from EPA. As of January 1, 2009, Rules 821 through 834 replaced the NOx budget trading program that was required by the NOx SIP Call.

There are 3 program components for CAIR implementation that will be done in two phases: 

• Phase I for the NOx Annual trading program started January 1, 2009, the NOx Ozone trading program started May 1, 2009, and the SO2 Annual trading program started January 1, 2010.

• Phase II for the NOx and SO2 annual trading programs starts January 1, 2015 and the NOx Ozone trading program starts May 1, 2015.

AQD will administer the permits required for the SO2 Annual, NOx Annual, and NOx Ozone Season trading programs.  The CAIR permits must be issued and renewed in keeping with the Renewable Operating Permit (ROP) program procedures. 

AQD administers the allotment of NOx allowance allocations for the NOx Annual and NOx Ozone Season trading programs.  EPA will administer the allotments of SO2 allowance allocations for the SO2 Annual trading program.  EPA will also administer the accounts and the trading of allocations for the SO2 Annual, NOx Annual, and NOx Ozone Season trading programs.

Who is subject?

Subject to NOx Annual, Nox Ozone Season, and SO2 Annual requirements:

• Any stationary fossil fuel fired boiler or combustion turbine in operation since November 15, 1990, serving a generator with a nameplate capacity of more than 25 megawatts producing electricity for sale.

• Any new unit start-up involving a combustion chamber that serves a generator with a nameplate capacity of more than 25 megawatts producing electricity for sale. 

Subject only to NOx Ozone Season requirements:

• Any unit that commenced operation before January 1, 1999 that has a maximum design heat input of more than 250,000,000 BTU per hour and did not serve a generator producing electricity for sale.

• Any unit that commenced operation after January 1, 1999 that has a maximum design heat input of more than 250,000,000 BTU per hour and did not serve a generator producing electricity for sale or served a generator at any time producing electricity for sale that has a nameplate capacity of 25 megawatts or less and has the potential to use not more than 50% of the potential electrical output capacity of the unit.

CAIR Permits� Interface with Renewable Operating Permits

Initial CAIR permits may be issued in a timeframe independent of that source�s ROP issuance/renewal cycle.  If a source has more than 3 years remaining before expiration of a current ROP, the AQD will initiate the reopening of that ROP to incorporate each entire CAIR permit as a new appendix upon issuance of each CAIR permit.

CAIR permits expire in conjunction with the facility's ROP.  Renewal permit applications must be submitted with the ROP renewal application.  More information on the ROP program can be found through the AQD Air Permits Program webpage. http://www.deq.state.mi.us/aps/.

Internet links for further information on the CAIR program and application forms

• Detailed information on the overall CAIR program is available through the CAIR Materials page.
• The list of all sources subject to Michigan�s CAIR implementation program is available to View.
 
• The CAIR Permit application forms are available to download as Word documents (DOC) or to view (PDF).

• NOx Ozone Season Permit Application  (DOC)  (PDF)
• NOx Annual Permit Application  (DOC)  (PDF)
• Sulfur Dioxide Permit Application  (DOC)  (PDF)

• All current CAIR permit actions and associated documents are available through the Recent Actions page.