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Electronic Code of Federal Regulations

e-CFR data is current as of December 5, 2019

Title 40Chapter ISubchapter CPart 97 → Subpart I


Title 40: Protection of Environment
PART 97—FEDERAL NOX BUDGET TRADING PROGRAM, CAIR NOX AND SO2 TRADING PROGRAMS, CSAPR NOX AND SO2 TRADING PROGRAMS, AND TEXAS SO2 TRADING PROGRAM


Subpart I—Individual Unit Opt-ins


Contents
§97.80   Applicability.
§97.81   General.
§97.82   NOX authorized account representative.
§97.83   Applying for NOX Budget opt-in permit.
§97.84   Opt-in process.
§97.85   NOX Budget opt-in permit contents.
§97.86   Withdrawal from NOX Budget Trading Program.
§97.87   Change in regulatory status.
§97.88   NOX allowance allocations to opt-in units.

§97.80   Applicability.

A unit that is in a State (as defined in §97.2), is not a NOX Budget unit under §97.4(a), is not a unit exempt under §97.4(b), vents all of its emissions to a stack, and is operating, may qualify to be a NOX Budget opt-in unit under this subpart. A unit that is a NOX Budget unit under §97.4(a), is covered by an exemption under §97.4(b) or §97.5 that is in effect, or is not operating is not eligible to be a NOX Budget opt-in unit.

§97.81   General.

Except otherwise as provided in this part, a NOX Budget opt-in unit shall be treated as a NOX Budget unit for purposes of applying subparts A through H of this part.

§97.82   NOX authorized account representative.

A unit for which an application for a NOX Budget opt-in permit is submitted, or a NOX Budget opt-in unit, located at the same source as one or more NOX Budget units, shall have the same NOX authorized account representative as such NOX Budget units.

§97.83   Applying for NOX Budget opt-in permit.

(a) Applying for initial NOX Budget opt-in permit. In order to apply for an initial NOX Budget opt-in permit, the NOX authorized account representative of a unit qualified under §97.80 may submit to the Administrator and the permitting authority at any time, except as provided under §97.86(g):

(1) A complete NOX Budget permit application under §97.22;

(2) A monitoring plan submitted in accordance with subpart H of this part; and

(3) A complete account certificate of representation under §97.13, if no NOX authorized account representative has been previously designated for the unit.

(b) Duty to reapply. Unless the NOX Budget opt-in permit is terminated or revised under §97.86(e) or §97.87(b)(1)(i), the NOX authorized account representative of a NOX Budget opt-in unit shall submit to the Administrator and permitting authority a complete NOX Budget permit application under §97.22 to renew the NOX Budget opt-in permit in accordance with §97.21(c) and, if applicable, an updated monitoring plan in accordance with subpart H of this part.

§97.84   Opt-in process.

The permitting authority will issue or deny an initial NOX Budget opt-in permit for a unit for which an application for a NOX Budget opt-in permit under §97.83 is submitted, in accordance with §97.20 and the following:

(a) Interim review of monitoring plan. The Administrator will determine, on an interim basis, the sufficiency of the monitoring plan accompanying the initial application for a NOX Budget opt-in permit under §97.83. A monitoring plan is sufficient, for purposes of interim review, if the plan appears to contain information demonstrating that the NOX emissions rate and heat input rate of the unit are monitored and reported in accordance with subpart H of this part. A determination of sufficiency shall not be construed as acceptance or approval of the unit's monitoring plan.

(b) If the Administrator determines that the unit's monitoring plan is sufficient under paragraph (a) of this section and after completion of monitoring system certification under subpart H of this part, the NOX emissions rate and the heat input of the unit shall be monitored and reported in accordance with subpart H of this part for one full control period during which percent monitor data availability is not less than 90 percent and during which the unit is in full compliance with any applicable State or Federal emissions or emissions-related requirements. Solely for purposes of applying the requirements in the prior sentence, the unit shall be treated as a “NOX Budget unit” prior to issuance of a NOX Budget opt-in permit covering the unit.

(c) Based on the information monitored and reported under paragraph (b) of this section, the Administrator will calculate the unit's baseline heat input, which will equal the unit's total heat input (in mmBtu) for the control period, and the unit's baseline NOX emissions rate, which will equal the unit's total NOX mass emissions (in lb) for the control period divided by the unit's baseline heat input.

(d) Issuance of draft NOX Budget opt-in permit for public comment. The permitting authority will issue a draft NOX Budget opt-in permit for public comment in accordance with §97.20.

(e) Not withstanding paragraphs (a) through (d) of this section, if at any time before issuance of a draft NOX Budget opt-in permit for public comment for the unit, the Administrator or the permitting authority determines that the unit does not qualify as a NOX Budget opt-in unit under §97.80, the permitting authority will issue a draft denial of a NOX Budget opt-in permit for public comment for the unit in accordance with §97.20.

(f) Withdrawal of application for NOX Budget opt-in permit. A NOX authorized account representative of a unit may withdraw its application for an initial NOX Budget opt-in permit under §97.83 at any time prior to the issuance of the initial NOX Budget opt-in permit. Once the application for a NOX Budget opt-in permit is withdrawn, a NOX authorized account representative wanting to reapply must submit a new application for an initial NOX Budget permit under §97.83.

(g) The unit shall be a NOX Budget opt-in unit and a NOX Budget unit starting May 1 of the first control period starting after the issuance of the initial NOX Budget opt-in permit by the permitting authority.

§97.85   NOX Budget opt-in permit contents.

(a) Each NOX Budget opt-in permit will contain all elements required for a complete NOX Budget opt-in permit application under §97.22.

(b) Each NOX Budget opt-in permit is deemed to incorporate automatically the definitions of terms under §97.2 and, upon recordation by the Administrator under subpart F or G of this part, every allocation, transfer, or deduction of NOX allowances to or from the compliance accounts of each NOX Budget opt-in unit covered by the NOX Budget opt-in permit or the overdraft account of the NOX Budget source where the NOX Budget opt-in unit is located.

§97.86   Withdrawal from NOX Budget Trading Program.

(a) Requesting withdrawal. To withdraw from the NOX Budget Trading Program, the NOX authorized account representative of a NOX Budget opt-in unit shall submit to the Administrator and the permitting authority a request to withdraw effective as of a specified date prior to May 1 or after September 30. The submission shall be made no later than 90 days prior to the requested effective date of withdrawal.

(b) Conditions for withdrawal. Before a NOX Budget opt-in unit covered by a request under paragraph (a) of this section may withdraw from the NOX Budget Trading Program and the NOX Budget opt-in permit may be terminated under paragraph (e) of this section, the following conditions must be met:

(1) For the control period immediately before the withdrawal is to be effective, the NOX authorized account representative must submit or must have submitted to the Administrator and the permitting authority an annual compliance certification report in accordance with §97.30.

(2) If the NOX Budget opt-in unit has excess emissions for the control period immediately before the withdrawal is to be effective, the Administrator will deduct or has deducted from the NOX Budget opt-in unit's compliance account, or the overdraft account of the NOX Budget source where the NOX Budget opt-in unit is located, the full amount required under §97.54(d) for the control period.

(3) After the requirements for withdrawal under paragraphs (b)(1) and (2) of this section are met, the Administrator will deduct from the NOX Budget opt-in unit's compliance account, or the overdraft account of the NOX Budget source where the NOX Budget opt-in unit is located, NOX allowances equal in number to and allocated for the same or a prior control period as any NOX allowances allocated to that source under §97.88 for any control period for which the withdrawal is to be effective. The Administrator will close the NOX Budget opt-in unit's compliance account and transfer any remaining allowances to a general account specified by the owners and operators of the NOX Budget opt-in unit.

(c) A NOX Budget opt-in unit that withdraws from the NOX Budget Trading Program shall comply with all requirements under the NOX Budget Trading Program concerning all years for which such NOX Budget opt-in unit was a NOX Budget opt-in unit, even if such requirements arise or must be complied with after the withdrawal takes effect.

(d) Notification. (1) After the requirements for withdrawal under paragraphs (a) and (b) of this section are met (including deduction of the full amount of NOX allowances required), the Administrator will issue a notification to the permitting authority and the NOX authorized account representative of the NOX Budget opt-in unit of the acceptance of the withdrawal of the NOX Budget opt-in unit as of a specified effective date that is after such requirements have been met and that is prior to May 1 or after September 30.

(2) If the requirements for withdrawal under paragraphs (a) and (b) of this section are not met, the Administrator will issue a notification to the permitting authority and the NOX authorized account representative of the NOX Budget opt-in unit that the request to withdraw is denied. If the NOX Budget opt-in unit's request to withdraw is denied, the NOX Budget opt-in unit shall remain subject to the requirements for a NOX Budget opt-in unit.

(e) Permit revision. After the Administrator issues a notification under paragraph (d)(1) of this section that the requirements for withdrawal have been met, the permitting authority will revise the NOX Budget permit covering the NOX Budget opt-in unit to terminate the NOX Budget opt-in permit as of the effective date specified under paragraph (d)(1) of this section. A NOX Budget opt-in unit shall continue to be a NOX Budget opt-in unit until the effective date of the termination.

(f) Reapplication upon failure to meet conditions of withdrawal. If the Administrator denies the request to withdraw the NOX Budget opt-in unit, the NOX authorized account representative may submit another request to withdraw in accordance with paragraphs (a) and (b) of this section.

(g) Ability to return to the NOX Budget Trading Program. Once a NOX Budget opt-in unit withdraws from the NOX Budget Trading Program and its NOX Budget opt-in permit is terminated under paragraph (e) of this section, the NOX authorized account representative may not submit another application for a NOX Budget opt-in permit under §97.83 for the unit prior to the date that is 4 years after the date on which the terminated NOX Budget opt-in permit became effective.

§97.87   Change in regulatory status.

(a) Notification. When a NOX Budget opt-in unit becomes a NOX Budget unit under §97.4(a), the NOX authorized account representative shall notify in writing the permitting authority and the Administrator of such change in the NOX Budget opt-in unit's regulatory status, within 30 days of such change.

(b) Permitting authority's and Administrator's action. (1)(i) When the NOX Budget opt-in unit becomes a NOX Budget unit under §97.4(a), the permitting authority will revise the NOX Budget opt-in unit's NOX Budget opt-in permit to meet the requirements of a NOX Budget permit under §97.23 as of an effective date that is the date on which such NOX Budget opt-in unit becomes a NOX Budget unit under §97.4(a).

(ii)(A) The Administrator will deduct from the compliance account for the NOX Budget unit under paragraph (b)(1)(i) of this section, or the overdraft account of the NOX Budget source where the unit is located, NOX allowances equal in number to and allocated for the same or a prior control period as:

(1) Any NOX allowances allocated to the NOX Budget unit (as a NOX Budget opt-in unit) under §97.88 for any control period after the last control period during which the unit's NOX Budget opt-in permit was effective; and

(2) If the effective date of the NOX Budget permit revision under paragraph (b)(1)(i) of this section is during a control period, the NOX allowances allocated to the NOX Budget unit (as a NOX Budget opt-in unit) under §97.88 for the control period multiplied by the number of days in the control period starting with the effective date of the permit revision under paragraph (b)(1)(i) of this section, divided by the total number of days in the control period, and rounded to the nearest whole number of NOX allowances as appropriate.

(B) The NOX authorized account representative shall ensure that the compliance account of the NOX Budget unit under paragraph (b)(1)(i) of this section, or the overdraft account of the NOX Budget source where the unit is located, contains the NOX allowances necessary for completion of the deduction under paragraph (b)(1)(ii)(A) of this section. If the compliance account or overdraft account does not contain the necessary NOX allowances, the Administrator will deduct the required number of NOX allowances, regardless of the control period for which they were allocated, whenever NOX allowances are recorded in either account.

(iii)(A) For every control period during which the NOX Budget permit revised under paragraph (b)(1)(i) of this section is in effect, the NOX Budget unit under paragraph (b)(1)(i) of this section will be treated, solely for purposes of NOX allowance allocations under §97.42, as a unit that commenced operation on the effective date of the NOX Budget permit revision under paragraph (b)(1)(i) of this section and will be allocated NOX allowances under §97.42. The unit's deadline under §97.84(b) for meeting monitoring requirements in accordance with subpart H of this part shall not be changed by the change in the unit's regulatory status or by the revision of the NOX Budget permit under paragraph (b)(1)(i) of this section.

(B) Notwithstanding paragraph (b)(1)(iii)(A) of this section, if the effective date of the NOX Budget permit revision under paragraph (b)(1)(i) of this section is during a control period, the following number of NOX allowances will be allocated to the NOX Budget unit under paragraph (b)(1)(i) of this section under §97.42 for the control period: the number of NOX allowances otherwise allocated to the NOX Budget unit under §97.42 for the control period multiplied by the number of days in the control period starting with the effective date of the permit revision under paragraph (b)(1)(i) of this section, divided by the total number of days in the control period, and rounded to the nearest whole number of NOX allowances as appropriate.

(2)(i) When the NOX authorized account representative of a NOX Budget opt-in unit does not renew its NOX Budget opt-in permit under §97.83(b), the Administrator will deduct from the NOX Budget opt-in unit's compliance account, or the overdraft account of the NOX Budget source where the NOX Budget opt-in unit is located, NOX allowances equal in number to and allocated for the same or a prior control period as any NOX allowances allocated to the NOX Budget opt-in unit under §97.88 for any control period after the last control period for which the NOX Budget opt-in permit is effective. The NOX authorized account representative shall ensure that the NOX Budget opt-in unit's compliance account or the overdraft account of the NOX Budget source where the NOX Budget opt-in unit is located contains the NOX allowances necessary for completion of such deduction. If the compliance account or overdraft account does not contain the necessary NOX allowances, the Administrator will deduct the required number of NOX allowances, regardless of the control period for which they were allocated, whenever NOX allowances are recorded in either account.

(ii) After the deduction under paragraph (b)(2)(i) of this section is completed, the Administrator will close the NOX Budget opt-in unit's compliance account. If any NOX allowances remain in the compliance account after completion of such deduction and any deduction under §97.54, the Administrator will close the NOX Budget opt-in unit's compliance account and transfer any remaining allowances to a general account specified by the owners and operators of the NOX Budget opt-in unit.

[65 FR 2727, Jan. 18, 2000, as amended at 69 FR 21648, Apr. 21, 2004]

§97.88   NOX allowance allocations to opt-in units.

(a) NOX allotment allocation. (1) By April 1 immediately before the first control period for which the NOX Budget opt-in permit is effective, the Administrator will determine by order the NOX allowance allocations for the NOX Budget opt-in unit for the control period in accordance with paragraph (b) of this section.

(2) By no later than April 1, after the first control period for which the NOX Budget opt-in permit is in effect, and April 1 of each year thereafter, the Administrator will determine by order the NOX allowance allocations for the NOX Budget opt-in unit for the next control period, in accordance with paragraph (b) of this section.

(3) The Administrator will make available to the public each determination of NOX allowance allocations under paragraph (a)(1) or (2) of this section and will provide an opportunity for submission of objections to the determination. Objections shall be limited to addressing whether the determination is in accordance with paragraph (b) of this section. Based on any such objections, the Administrator will adjust each determination to the extent necessary to ensure that it is in accordance with paragraph (b) of this section.

(b) For each control period for which the NOX Budget opt-in unit has an approved NOX Budget opt-in permit, the NOX Budget opt-in unit will be allocated NOX allowances in accordance with the following procedures:

(1) The heat input (in mmBtu) used for calculating NOX allowance allocations will be the lesser of:

(i) The unit's baseline heat input determined pursuant to §97.84(c); or

(ii) The unit's heat input, as determined in accordance with subpart H of this part, for the control period in the year prior to the year of the control period for which the NOX allocations are being calculated.

(2) The Administrator will allocate NOX allowances to the unit in an amount equaling the heat input determined under paragraph (b)(1) of this section multiplied by the lesser of the unit's baseline NOX emissions rate determined under §97.84(c) or the most stringent State or federal NOX emissions limitation applicable to the unit during the control period, divided by 2,000 lb/ton, and rounded to the nearest whole number of NOX allowances as appropriate.

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