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Acid Rain (Title IV) Air Permits
Acid Rain (Title IV) Air Permits
Phase II Acid Rain (Title IV) Permits
Electric Generating Units (EGUs) sell electricity to the grid and burn fossil fuel. They 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 megawatts (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 Environment, Great Lakes, and Energy (EGLE) 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 (the original and one copy) to AQD. All acid rain forms should be sent to:
EGLE AQD Jackson District
301 East Louis B. Glick Highway
Jackson, MI 49201-1556
Please note that one copy must also be sent to the USEPA. Application and exemption forms and instructions are available from the USEPA Acid Rain web page.
Any operating stationary combustion source that emits sulfur dioxide (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 USEPA Air Markets web page.
Any source subject to the Phase II permit program will also be subject to the Cross-State Air Pollution Rule (CSAPR).
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 web pages.
When an acid rain permit is final, it is incorporated into the associated ROP. All ROPs can be found through the sorted lists for ROP public notice process permits (draft, proposed, and final).
History and Science of Acid Rain Program in Michigan
The 1990 amendments to the federal Clean Air Act included the Title IV "Acid Deposition Control" provisions. The federal regulations to implement the Title IV program include the provisions of Parts 72, 74, and 76 of Title 40 of the Code of Federal Regulations. Michigan has adopted the federal regulations by reference. AQD is the authority responsible for issuance of Phase II acid rain permits in Michigan.
The first Phase II acid rain permits for SO2 requirements were issued in Michigan as of December 16, 1997. In accordance with the federal requirements, these Phase II acid rain permits for coal-fired facilities were reopened to add nitrogen oxide (NOx) emission limits.
Acid rain permit applications for new units are required to be submitted 24 months before the unit commences operation. These acid rain permits are valid for a maximum of five years. The permit renewal applications and NOx compliance plans (if applicable) are submitted at the same time as the associated Title V ROP renewal application. A copy of these applications should be sent to the appropriate AQD district office and also to Brian Carley at the address above.
All Title IV requirements are incorporated as an appendix (generally Appendix 9) of the ROP. For the new or renewal Phase II acid rain permits, the requirements are incorporated into the ROP upon issuance or upon renewal of the ROP.
Status of Permit Actions