§97.4. Applicability. — Inbound Citations

(1) Any NOX Budget unit, other than a NOX Budget opt-in unit, that is permanently retired shall be exempt from the NOX Budget Trading Program, except for the provisions of this section, § 97.2, § 97.3, § 97.4, § 97.7, and subparts E, F, and G of this part.

The terms used in this part shall have the meanings set forth in this section as follows:

(i) For any source, with one or more NOX Budget units under § 97.4(a) that commence operation before January 1, 2001, the NOX authorized account representative shall submit a complete NOX Budget permit application under § 97.22 covering such NOX Budget units to the permitting authority at least 18 months (or such lesser time provided by the permitting authority) before May 31, 2004.

(b) Identification of each NOX Budget unit at the NOX Budget source and whether it is a NOX Budget unit under § 97.4(a) or under subpart I of this part;

(1) Notwithstanding paragraph (a) of this section, a unit under paragraph (a)(1) or (a)(2) of this section that has a federally enforceable permit that restricts the unit to combusting only natural gas or fuel oil (as defined in § 75.2 of this chapter) during a control period includes a NOX emission limitation restricting NOX emissions during a control period to 25 tons or less, and includes the special provisions in paragraph (b)(4) of this section shall be exempt from the requirements of the NOX Budget Trading Program, except for the provisions of this paragraph (b), § 97.2, § 97.3, § 97.4(a), § 97.7, and subparts E, F, and G of this part. The NOX emission limitation under this paragraph (b)(1) shall restrict NOX emissions during the control period by limiting unit operating hours. The restriction on unit operating hours shall be calculated by dividing 25 tons by the unit's maximum potential hourly NOX mass emissions, which shall equal the unit's maximum rated hourly heat input multiplied by the highest default NOX emission rate otherwise applicable to the unit under § 75.19 of this chapter.

In accordance with §§ 97.41 and 97.42, the Administrator will allocate to the NOX Budget units under § 97.4(a) in a State, for each control period specified in § 97.41, a total number of NOX allowances equal to the trading budget for the State, as set forth in appendix C to this subpart, less the sum of the NOX emission limitations (in tons) for each unit exempt under § 97.4(b) that is not allocated any NOX allowances under § 97.42 (b) or (c) for the control period and whose NOX emission limitation (in tons of NOX) is not included in the amount calculated under § 97.42(d)(5)(ii)(B) for the control period.

(1) The heat input (in mmBtu) used for calculating NOX allowance allocations for each NOX Budget unit under § 97.4(a) will be:

(i) For a NOX allowance allocation under § 97.41(a):

(A) For a unit under § 97.4(a)(1), the average of the two highest amounts of the unit's heat input for the control periods in 1995 through 1998; or

(B) For a unit under § 97.4(a)(2), the control period in 1995 or, if the Administrator determines that reasonably reliable data are available for control periods in 1996 through 1998, the average of the two highest amounts of the unit's heat input for the control periods in 1995 through 1998.

(ii) For a NOX allowance allocation under § 97.41(b), the unit's average heat input for the control periods in 2002 through 2004.

(iii) For a NOX allowance allocation under § 97.41(c), the unit's average heat input for the control period in the years that are 4, 5, 6, 7, and 8 years before the first year for which the allocation is being calculated.

(2) For the owner or operator of a NOX Budget unit under § 97.4(a) that commences operation before January 1, 2003 and that is not subject to or does not meet the deadline under paragraph (b)(1) of this section, by May 1, 2003.

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.

(a) 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.

(A) For a unit under § 97.4(a)(1), the average of the two highest amounts of the unit's heat input for the control periods in 1995 through 1998; or

(B) For a unit under § 97.4(a)(2), the control period in 1995 or, if the Administrator determines that reasonably reliable data are available for control periods in 1996 through 1998, the average of the two highest amounts of the unit's heat input for the control periods in 1995 through 1998.

The terms used in this part shall have the meanings set forth in this section as follows:

(1) “I certify that each unit for which this permit application is submitted under subpart I of this part is not a NOX Budget unit under 40 CFR 97.4(a) and is not covered by an exemption under 40 CFR 97.4(b) or 97.5 that is in effect.”

In accordance with §§ 97.41 and 97.42, the Administrator will allocate to the NOX Budget units under § 97.4(a) in a State, for each control period specified in § 97.41, a total number of NOX allowances equal to the trading budget for the State, as set forth in appendix C to this subpart, less the sum of the NOX emission limitations (in tons) for each unit exempt under § 97.4(b) that is not allocated any NOX allowances under § 97.42 (b) or (c) for the control period and whose NOX emission limitation (in tons of NOX) is not included in the amount calculated under § 97.42(d)(5)(ii)(B) for the control period.

(ii) For a NOX allowance allocation under § 97.41(b) or (c) for a unit exempt under § 97.4(b), such heat input shall be treated as zero if the unit is exempt under § 97.4(b) during the control period.

(6) A NOX allowance allocated by the Administrator under the NOX Budget Trading Program is a limited authorization to emit one ton of nitrogen oxides in accordance with the NOX Budget Trading Program. No provision of the NOX Budget Trading Program, the NOX Budget permit application, the NOX Budget permit, or an exemption under § 97.4(b) or § 97.5 and no provision of law shall be construed to limit the authority of the United States to terminate or limit such authorization.

(i) During the period that the unit is covered by an exemption under § 97.4(b) or § 97.5 that is in effect;

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.

(b) Consistent with § 97.51(b), the Administrator will establish, upon request, a general account for any person. Allocations of NOX allowances pursuant to § 97.4(b)(4)(ii) or § 97.5(c)(2) and transfers of allowances pursuant to subpart G of this part will be recorded in general accounts in accordance with this subpart.

(a) The Administrator will record the NOX allowances for 2004 for a NOX Budget unit allocated under subpart E of this part in the unit's compliance account, except for NOX allowances under § 97.4(b)(4)(ii) or § 97.5(c)(2), which will be recorded in the general account specified by the owners and operators of the unit. The Administrator will record NOX allowances for 2004 for a NOX Budget opt-in unit in the unit's compliance account as allocated under § 97.88(a).