To amend section 3704.05 and to enact sections 3704.30 to 3704.36 of the Revised Code to require electric generating facilities to comply with certain requirements regarding mercury emissions.

Section 1. That section 3704.05 be amended and sections 3704.30, 3704.31, 3704.32, 3704.33, 3704.34, 3704.35, and 3704.36 of the Revised Code be enacted to read as follows:

Sec. 3704.05.  (A) No person shall cause, permit, or allow emission of an air contaminant in violation of any rule adopted by the director of environmental protection under division (E) of section 3704.03 of the Revised Code unless the person is the holder of a variance that is issued under division (H) of that section and consistent with the federal Clean Air Act permitting the emission of the contaminant in excess of that permitted by the rule or the person is the holder of an operating permit that includes a compliance schedule issued pursuant to rules adopted under division (G) of section 3704.03 of the Revised Code.

(B) No person who is the holder of a variance issued under division (H) of section 3704.03 of the Revised Code shall cause, permit, or allow emission of an air contaminant or contaminants listed therein in violation of the conditions of the variance or fail to obey an order of the director issued under authority of that division.

(C) No person who is the holder of a permit issued under division (F) or (G) of section 3704.03 of the Revised Code shall violate any of its terms or conditions.

(D) No person shall fail to install and maintain monitoring devices or to submit reports or other information as may be required under division (I) of section 3704.03 of the Revised Code.

(E) No person to whom a permit or variance has been issued shall refuse entry to an authorized representative of the director or the environmental protection agency as provided in division (M) of section 3704.03 of the Revised Code or hinder or thwart the person in making an investigation.

(F) No person shall fail to submit plans and specifications as required by section 3704.03 of the Revised Code.

(G) No person shall violate any order, rule, or determination of the director issued, adopted, or made under this chapter.

(H) No person shall do any of the following:

(1) Falsify any plans, specifications, data, reports, records, or other information required to be kept or submitted to the director by this chapter or rules adopted under it;

(2) Make any false material statement, representation, or certification in any form, notice, or report required by the Title V permit program;

(3) Render inaccurate any monitoring device required by a Title V permit.

Violation of division (H)(1), (2), or (3) of this section is not also falsification under section 2921.13 of the Revised Code.

(I) No person shall knowingly falsify an inspection certificate submitted to another under section 3704.14 or Chapter 4503. of Revised Code. Violation of this division is not also falsification under section 2921.13 of the Revised Code.

(J) No person shall do either of the following:

(1) With regard to the Title V permit program, fail to pay any administrative penalty assessed in accordance with rules adopted under division (S) of section 3704.03 of the Revised Code or any fee assessed under section 3745.11 of the Revised Code;

(2) Violate Fail to comply with section 3704.31 of the Revised Code or an agreement entered into under division (A) or (B) of section 3704.35 of the Revised Code or violate any applicable requirement of a Title V permit or any permit condition, except for an emergency as defined in 40 C.F.R. 70.6 (g), or filing requirement of the Title V permit program, any duty to allow or carry out inspection, entry, or monitoring activities, or any rule adopted or order issued by the director pursuant to the Title V permit program.

(K) On and after the three hundred sixty-sixth day following the administrator's final approval of the Title V permit program, or on and after the three hundred sixty-sixth day following the commencement of operation of a new major source required to comply with section 112(g) or part C or D of Title I of the federal Clean Air Act, whichever is later, no person shall operate any such source that is required to obtain a Title V permit under section 3704.036 of the Revised Code or rules adopted under it unless such a permit has been issued authorizing operation of the source or unless a complete and timely application for the issuance, renewal, or modification of a Title V permit for the source has been submitted to the director under that section.

Sec. 3704.30.  As used in sections 3704.30 to 3704.36 of the Revised Code:

(A) "Affected unit" means any air contaminant source that generates electricity in the state and combusts coal in an amount greater than ten per cent of its total heat input on a rolling twelve-month basis.

(B) "Alternative emissions limit" means a mercury emissions limit established by the director of environmental protection for an affected unit.

(C) "Btu" means British thermal unit of heat input.

(D) "Calendar quarter" means the period of January 1 through March 31, April 1 through June 30, July 1 through September 30, or October 1 through December 31.

(E) "Fluidized bed combustion unit" means a combustion unit in which fuel is introduced into a layer of solid particles kept in turbulent motion by air that is forced into the layer from below, resulting in a thorough mixing and intimate contact of the fuel and other reactants.

(F) "Inlet conditions" means either of the following:

(1) The concentration of mercury in the flue gas exiting the combustion source prior to application of any air pollution control device;

(2) In the case of a fluidized bed combustion unit, the concentration of mercury input to the combustion source based on representative fuel sampling and analysis as determined by the director.

(G) "Mercury" means mercury and mercury compounds in either a gaseous or particulate form.

(H) "TBtu" means trillion British thermal units of heat input.

Sec. 3704.31. In addition to and notwithstanding any other requirements established in this chapter and rules adopted under it and unless an alternative emissions limit has been established under section 3704.32 of the Revised Code, on and after December 15, 2007, the owner or operator of an affected unit or units shall achieve and maintain one of the following, whichever is more readily achievable by the affected unit or units as determined by the owner or operator:

(A) A mercury emissions rate equal to or less than six-tenths of one pound of mercury per TBtu;

(B) A mercury emissions rate equal to a ninety per cent reduction of mercury from the measured inlet conditions for the affected unit.

The director of environmental protection may allow the owner or operator of two or more affected units that are located at the same facility to average the emissions of those affected units for purposes of complying with the mercury emissions rate requirements established in this section.

Sec. 3704.32. (A) If the owner or operator of an affected unit properly installs and operates control technology that is designed to achieve the mercury emissions rate requirements established in section 3704.31 of the Revised Code and the technology fails to achieve the required emissions rate, the owner or operator shall notify the director of environmental protection of that failure not later than February 1, 2009. Not later than April 1, 2010, and based on the results of stack tests performed in accordance with section 3704.33 of the Revised Code between February 1, 2009, and April 1, 2010, the director shall establish an alternative emissions limit for the affected unit based on the optimized performance of that properly installed and operated control technology.

(B) The owner or operator of an affected unit to which division (A) of this section applies shall be deemed to have complied with section 3704.31 of the Revised Code if, during the period beginning December 15, 2007, and ending on the date of the establishment of an alternative emissions limit for the affected unit, the owner or operator operates and maintains the affected unit in a manner consistent with good air pollution control practices for the minimization of mercury emissions. The director shall provide guidelines for what constitutes good air pollution control practices for the purposes of this division.

In determining if the owner or operator of an affected unit is operating and maintaining the affected unit in a manner consistent with good air pollution control practices for the minimization of mercury emissions, the director may review the emissions monitoring results of the affected unit and the operating and maintenance procedures of the owner or operator. Further, the director may inspect the affected unit for that purpose.

(C) Upon the establishment of an alternative emissions limit for an affected unit under division (A) of this section, the director shall incorporate the alternative emissions limit into the Title V permit for the affected unit. Thereafter, upon receiving an application for renewal of the Title V permit, the director shall conduct a review of the affected unit's alternative emissions limit and may impose a more stringent alternative emissions limit based on any new data regarding the demonstrated control capabilities of the type of control technology installed and operated at the affected unit.

Sec. 3704.33. (A) Except as provided in division (B) of this section, the owner or operator of an affected unit shall perform stack tests to demonstrate compliance with the mercury emissions rate requirements established in section 3704.31 of the Revised Code or with an alternative emissions limit established under section 3704.32 of the Revised Code. Stack tests used to demonstrate compliance shall be conducted each calendar quarter in accordance with the United States environmental protection agency's method 29 for the determination of metal emissions from stationary sources, as set forth in 40 C.F.R. 60, Appendix A, as amended, or any other alternative method approved by the United States environmental protection agency or the director of environmental protection. Data from stack tests submitted for the purpose of demonstrating compliance shall be based on the average of stack tests conducted during the two most recent calendar quarters for an affected unit and while combusting coal or coal blends that are representative of the coal or coal blends combusted at the affected unit during the calendar quarters represented by the stack tests.

(B) If the director determines that continuous emission monitors for mercury in flue gases are commercially available and can perform in accordance with standards established by the national institute of technology standards, or with other methodology approved by the United States environmental protection agency, the owner or operator of an affected unit shall properly install and operate the continuous emission monitors and shall not be required to conduct stack testing. When demonstrating compliance with the mercury emissions rate requirements established in section 3704.31 of the Revised Code or with an alternative emissions limit established under section 3704.32 of the Revised Code, as applicable, the owner or operator of an affected unit shall use an average of the continuous emission monitor data recorded at the affected unit during the most recent calendar quarter.

(C) The owner or operator of an affected unit, for each calendar quarter, shall report to the director the results of any stack test or the average of the continuous emission monitor data, as applicable. The reports shall be submitted on forms that shall be prescribed by the director.

Sec. 3704.34. (A) Not later than July 1, 2012, the director of environmental protection shall conduct a review of the mercury emission limits that are applicable to all affected units in the state. The results of the review shall be made available to the public upon request.

(B) On or after December 15, 2012, the director may adopt rules in accordance with Chapter 119. of the Revised Code imposing mercury emission limits that are more stringent than the emissions rate requirements established in section 3704.31 of the Revised Code or the alternative emissions limits established under section 3704.32 of the Revised Code.

Sec. 3704.35. (A) Notwithstanding the mercury emissions rate requirements established in section 3704.31 of the Revised Code, the director of environmental protection may issue an order extending the deadline for complying with those requirements to December 15, 2012, with respect to an affected unit if the owner or operator of the affected unit enters into an agreement with the director to install and operate air pollution control systems to control all of the following:

(1) The emissions of nitrogen oxides to less than one-tenth of one pound per one million Btus for dry bottom boilers and thirteen one-hundredths of one pound per one million Btus for wet bottom boilers;

(2) The emissions of sulfur dioxide to less than fifteen one-hundredths of one pound per one million Btus;

(3) The emissions of sulfur dioxide to less than three one-hundredths of one pound per one million Btus.

(B) Notwithstanding the mercury emissions rate reductions established in section 3704.31 of the Revised Code, the director may issue an order exempting an affected unit from those requirements if the owner or operator of the affected unit enters into an agreement with the director by December 15, 2007, to close the facility by December 15, 2012.

Sec. 3704.36. The director of environmental protection may adopt rules in accordance with Chapter 119. of the Revised Code establishing procedures and requirements that are necessary for the administration of sections 3704.30 to 3704.35 of the Revised Code.

Section 2. That existing section 3704.05 of the Revised Code is hereby repealed.