[30 Pa.B. 4899]
[Continued from previous Web Page]
NOx ACCOUNT § 145.10. Authorization and responsibilities of the NOx authorized account representative.
(a) Except as provided under § 145.11 (relating to alternate NOx authorized account representative), each NOx budget source, including all NOx budget units at the source, shall have only one NOx authorized account representative, with regard to all matters under the NOx Budget Trading Program concerning the source or any NOx budget unit at the source.
(b) The NOx authorized account representative of the NOx budget source shall be selected by an agreement binding on the owners and operators of the source and all NOx budget units at the source.
(c) Upon receipt by the Department and the NOx Budget Administrator of a complete account certificate of representation under § 145.13 (relating to account certificate of representation), the NOx authorized account representative of the source shall represent and, by his representations, actions, inactions or submissions, legally bind each owner and operator of the NOx budget source represented and each NOx budget unit at the source in all matters pertaining to the NOx Budget Trading Program, not withstanding any agreement between the NOx authorized account representative and the owners and operators. The owners and operators shall be bound by any decision or order issued to the NOx authorized account representative by the Department, the Administrator or a court regarding the source or unit.
(d) A NOx Allowance Tracking System account will not be established for a NOx budget unit at a source, until the Department and the NOx Budget Administrator have received a complete account certificate of representation under § 145.13 for a NOx authorized account representative of the source and the NOx budget units at the source.
(e) Document submission requirements are as follows:
(1) Each submission under the NOx Budget Trading Program shall be submitted, signed and certified by the NOx authorized account representative for each NOx budget source on behalf of which the submission is made. Each submission shall include the following certification statement by the NOx authorized account representative:
''I am authorized to make this submission on behalf of the owners and operators of the NOx budget sources or NOx budget units for which the submission is made. I certify under penalty of law that I have personally examined, and am familiar with, the statements and information submitted in this document and all its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify that the statements and information are to the best of my knowledge and belief true, accurate and complete. I am aware that there are significant penalties for submitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment.''(2) The Department and NOx Budget Administrator will accept or act on a submission made on behalf of owner or operators of a NOx budget source or a NOx budget unit only if the submission has been made, signed and certified in accordance with paragraph (1).
§ 145.11. Alternate NOx authorized account representative.
(a) An account certificate of representation may designate only one alternate NOx authorized account representative who may act on behalf of the NOx authorized account representative. The agreement by which the alternate NOx authorized account representative is selected shall include a procedure for authorizing the alternate NOx authorized account representative to act in lieu of the NOx authorized account representative.
(b) Upon receipt by the Department and NOx Budget Administrator of a complete account certificate of representation under § 145.13 (relating to account certificate of representation), any representation, action, inaction or submission by the alternate NOx authorized account representative shall be deemed to be a representation, action, inaction or submission by the NOx authorized account representative.
(c) Except in this section and §§ 145.10(a), 145.12, 145.13 and 145.51, whenever the term ''NOx authorized account representative'' is used in this subchapter, the term shall include the alternate NOx authorized account representative.
§ 145.12. Changing the NOx authorized account representative and the alternate NOx authorized account representative; changes in the owners and operators.
(a) Changing the NOx authorized account representative. The NOx authorized account representative may be changed at any time upon receipt by the Department and the NOx Budget Administrator of a superseding complete account certificate of representation under § 145.13 (relating to account certificate of representation). Notwithstanding a change, the representations, actions, inactions and submissions by the previous NOx authorized account representative prior to the time and date when the Department and the NOx Budget Administrator receives the superseding account certificate of representation shall be binding on the new NOx authorized account representative and the owners and operators of the NOx budget source and the NOx budget units at the source.
(b) Changing the alternate NOx authorized account representative. The alternate NOx authorized account representative may be changed at any time upon receipt by the Department and the NOx Budget Administrator of a superseding complete account certificate of representation under § 145.13. Notwithstanding a change, the representations, actions, inactions and submissions by the previous alternate NOx authorized account representative prior to the time and date when the Department and the NOx Budget Administrator receives the superseding account certificate of representation shall be binding on the new alternate NOx authorized account representative and the owners and operators of the NOx budget source and the NOx budget units at the source.
(c) Changes in the owners and operators.
(1) If a new owner or operator of a NOx budget source or a NOx budget unit is not included in the list of owners and operators submitted in the account certificate of representation, the new owner or operator shall be deemed to be subject to and bound by the account certificate of representation, the representations, actions, inactions and submissions of the NOx authorized account representative and any alternate NOx authorized account representative of the source or unit, and the decisions, orders, actions and inactions of the Department or the NOx Budget Administrator, as if the new owner or operator were included in the list.
(2) Within 30 days following any change in the owners and operators of a NOx budget source or a NOx budget unit, including the addition of a new owner or operator, the NOx authorized account representative or alternate NOx authorized account representative shall submit a revision to the account certificate of representation amending the list of owners and operators to include the change.
§ 145.13. Account certificate of representation.
(a) A complete account certificate of representation for a NOx authorized account representative or an alternate NOx authorized account representative shall include the following elements in a format prescribed by the NOx Budget Administrator:
(1) Identification of the NOx budget source and each NOx budget unit at the source for which the account certificate of representation is submitted.
(2) The name, address, e-mail address (if any), telephone number and facsimile transmission number (if any) of the NOx authorized account representative and any alternate NOx authorized account representative.
(3) A list of the owners and operators of the NOx budget source and of each NOx budget unit at the source.
(4) The following certification statement by the NOx authorized account representative and any alternate NOx authorized account representative:
''I certify that I was selected as the NOx authorized account representative or alternate NOx authorized account representative, as applicable, by an agreement binding on the owners and operators of the NOx budget source and each NOx budget unit at the source. I certify that I have all the necessary authority to carry out my duties and responsibilities under the NOx Budget Trading Program on behalf of the owners and operators of the NOx budget source and of each NOx budget unit at the source and that each owner and operator shall be fully bound by my representations, actions, inactions, or submissions and by any decision or order issued to me by the Department, the Administrator or a court regarding the source or unit.''(5) The signature of the NOx authorized account representative and any alternate NOx authorized account representative and the dates signed.
(b) Unless otherwise required by the Department or the Administrator, documents of agreement referred to in the account certificate of representation may not be submitted to the Department or Administrator. The Department and Administrator are not under any obligation to review or evaluate the sufficiency of these documents, if submitted.
§ 145.14. Objections concerning the NOx authorized account representative.
(a) Once a complete account certificate of representation under § 145.13 (relating to account certificate of representation) has been submitted and received, the Department and the NOx Budget Administrator will rely on the account certificate of representation unless a superseding complete account certificate of representation under § 145.13 is received by the Department and the NOx Budget Administrator.
(b) Except as provided in § 145.12(a) or (b) (relating to changing the NOx authorized account representative and the alternate NOx authorized account representative; changes in the owners and operators), an objection or other communication submitted to the Department or Administrator concerning the authorization, or any representation, action, inaction or submission of the NOx authorized account representative will not affect any representation, action, inaction or submission of the NOx authorized account representative or the finality of a decision or order by the Department or Administrator under the NOx Budget Trading Program.
(c) The Department and the Administrator will not adjudicate any private legal dispute concerning the authorization or any representation, action, inaction or submission of a NOx authorized account representative, including private legal disputes concerning the proceeds of NOx allowance transfers.
COMPLIANCE CERTIFICATION § 145.30. Compliance certification report.
(a) Applicability and deadline. For each control period in which one or more NOx budget units at a source are subject to the NOx budget emissions limitation, the NOx authorized account representative of the source shall submit to the Department and the NOx Budget Administrator by November 30 of that year, a compliance certification report for the source covering all of the units.
(b) Contents of report. The NOx authorized account representative shall include in the compliance certification report under subsection (a) the following elements, in a format prescribed by the Department, concerning each unit at the source and subject to the NOx budget emissions limitation for the control period covered by the report:
(1) Identification of each NOx budget unit.
(2) At the NOx authorized account representative's option, the serial numbers of the NOx allowances that are to be deducted from each unit's compliance account under § 145.54 (relating to compliance) for the control period.
(3) At the NOx authorized account representative's option, for units sharing a common stack and having NOx emissions that are not monitored separately or apportioned in accordance with §§ 145.70--145.76 (relating to recordkeeping and reporting requirements), the percentage of allowances that is to be deducted from each unit's compliance account under § 145.54(e).
(4) The compliance certification under subsection (c).
(c) Compliance certification. In the compliance certification report under subsection (a), the NOx authorized account representative shall certify, based on reasonable inquiry of those persons with primary responsibility for operating the source and the NOx budget units at the source in compliance with the NOx Budget Trading Program, whether each NOx budget unit for which the compliance certification is submitted was operated during the calendar year covered by the report in compliance with the NOx Budget Trading Program applicable to the unit, including the following:
(1) Whether the unit was operated in compliance with the NOx budget emissions limitation.
(2) Whether the monitoring plan that governs the unit has been maintained to reflect the actual operation and monitoring of the unit, and contains the information necessary to attribute NOx emissions to the unit, in accordance with §§ 145.70--145.76.
(3) Whether all the NOx emissions from the unit, or a group of units (including the unit) using a common stack, were monitored or accounted for through the missing data procedures and reported in the quarterly monitoring reports, including whether conditional data were reported in the quarterly reports in accordance with §§ 145.70--145.76. If conditional data were reported, the owner or operator shall indicate whether the status of all conditional data has been resolved and all necessary quarterly report resubmissions has been made.
(4) Whether the facts that form the basis for certification under §§ 145.70--145.76 of each monitor at the unit or a group of units (including the unit) using a common stack, or for using an excepted monitoring method or alternative monitoring method approved under §§ 145.70--145.76, if any, has changed.
(5) If a change is required to be reported under paragraph (4), specify the nature of the change, the reason for the change, when the change occurred and how the unit's compliance status was determined subsequent to the change, including what method was used to determine emissions when a change mandated the need for monitor recertification.
§ 145.31. Department's action on compliance certifications.
(a) The Department or the Administrator may review and conduct independent audits concerning any compliance certification or any other submission under the NOx Budget Trading Program and make appropriate adjustments of the information in the compliance certifications or other submissions.
(b) NOx allowances may be deducted from or transferred to a unit's compliance account or a source's overdraft account based on the information in the compliance certifications or other submissions, as adjusted under subsection (a).
NOx ALLOWANCE ALLOCATIONS § 145.40. State Trading Program budget.
(a) In accordance with §§ 145.41 and 145.42 (relating to timing requirements for NOx allowance allocations; and NOx allowance allocations), the Department will allocate to NOx budget units under § 145.4(a) (relating to applicability), for each control period specified in § 145.41, a total number of NOx allowances less the sum of the NOx emission limitations (in tons) for each unit exempt under § 145.4(b) that is not allocated allowances under § 145.42(b) or (c) for the control period and whose NOx emission limitation (in tons of NOx) is not included in the amount calculated under § 145.42(d)(5)(ii)(B). The Pennsylvania NOx Trading Program Budget is as follows:
(1) The NOx budget for electric generating units under this subchapter is 47,224 tons per season.
(2) The NOx budget for nonelectric generating units under this subchapter is 3,619 tons per season.
(b) The NOx budget may be adjusted as provided in § 145.90 (relating to emission reduction credit provisions).
§ 145.41. Timing requirements for NOx allowance allocations.
(a) The Department will submit to the NOx Allowance Tracking System the NOx allowance allocations, in accordance with § 145.42 (relating to NOx allowance allocations), for the control periods in 2003--2007.
(b) By April 1, 2005, the Department will publish the NOx allowance allocations in the Pennsylvania Bulletin, in accordance with § 145.42(a)--(c), for the control periods 2008--2012.
(c) By April 1, 2010, by April 1 of 2015, and thereafter by April 1 of the year that is 5 years after the last year for which NOx allowances allocations are determined, the Department will publish the NOx allowance allocations in the Pennsylvania Bulletin, in accordance with § 145.42(a)--(c), for the control periods in the years that are 3, 4, 5, 6 and 7 years after the applicable deadline under this subsection.
(d) By April 1, 2003, and April 1 of each year thereafter, the Department will publish the NOx allowance allocations in the Pennsylvania Bulletin, in accordance with § 145.42(d), for the control period in the year of the applicable deadline under this subsection.
§ 145.42. NOx allowance allocations.
(a) Unit heat input shall be calculated as follows:
(1) The heat input (in mmBtu) used for calculating NOx allowance allocations for each NOx budget unit under § 145.4 (relating to applicability) will be as follows:
(i) For a NOx allowance allocation under § 145.41(a) (relating to timing requirement for NOx allowance allocations).
(A) For a unit under § 145.4(a)(1), the average of the two highest amounts of the unit's heat input for the control periods in 1995--1998.
(B) For a unit under § 145.4(a)(2), the control period in 1995 or, if the Administrator determines that reasonably reliable data are available for control periods in 1996--1998, the average of the two highest amounts of the unit's heat input for the control periods in 1995--1998.
(ii) For a NOx allowance allocation under § 145.41(b), the unit's average heat input for the control periods in 2002--2004.
(iii) For a NOx allowance allocation under § 145.41(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) The unit's heat input for the control period in each year specified under paragraph (1) will be determined in accordance with 40 CFR Part 75 (relating to continuous emission monitoring). Notwithstanding the first sentence of this paragraph (2), the following apply:
(i) For a NOx allowance allocation under § 145.41(a), the heat input will be determined using the best available data reported to the Administrator for the unit if the unit was not otherwise subject to the requirements of 40 CFR Part 75 for the control period.
(ii) For a NOx allowance allocation under § 145.41(b) or (c) for a unit exempt under § 145.4(b), the heat input shall be treated as zero if the unit is exempt under § 145.4(b) during the control period.
(b) For each group of five control periods specified in §§ 145.41(a)--(c), the Department will allocate to all NOx budget units in a given state under § 145.4(a)(1) that commenced operation before May 1, 1997, for allocations under § 145.41(a), May 1, 2003, for allocations under § 145.41(b), and May 1 of the year 5 years before the first year for which the allocation under § 145.41(c) is being calculated, a total number of NOx allowances equal to 95% of the portion of the State's trading program budget under § 145.40 (relating to State Trading Program budget) covering these units. The Department will allocate in accordance with the following procedures:
(1) The Department will allocate NOx allowances to each NOx budget unit under § 145.4(a)(1) for each control period in an amount equaling 0.15 lb/mmBtu multiplied by the heat input determined under subsection (a), divided by 2,000 lb/ton, and rounded to the nearest whole number of NOx allowances as appropriate.
(2) If the initial total number of NOx allowances allocated to all NOx budget units under § 145.4(a)(1) in the state for a control period under subsection (b)(1) does not equal 95% of the portion of the State's trading program budget under § 145.40 covering these units, the Department will adjust the total number of NOx allowances allocated to all these NOx budget units for the control period under paragraph (1) so that the total number of NOx allowances allocated equals 95% of the portion of the State's trading program budget. This adjustment will be made by multiplying each unit's allocation by 95% of the portion of the State's trading program budget; dividing by the total number of NOx allowances allocated under paragraph (1) for the control period; and rounding to the nearest whole number of NOx allowances as appropriate.
(c) For each group of five control periods specified in § 145.41(a)--(c), the Department will allocate to all NOx budget units in a given state under § 145.4(a)(2) that commenced operation before May 1, 1997, for allocations under § 145.41(a), May 1, 2003, for allocations under § 145.41(b), and May 1 of the year 5 years before the first year for which the allocation under § 145.41(c) is being calculated, a total number of NOx allowances equal to 95% of the portion of the State's trading program budget under § 145.40 covering these units. The Department will allocate in accordance with the following procedures:
(1) The Department will allocate NOx allowances to each NOx budget unit under § 145.4(a)(2) for each control period in an amount equaling 0.17 lb/mmBtu multiplied by the heat input determined under subsection (a), divided by 2,000 lb/ton, and rounded to the nearest whole number of NOx allowances as appropriate.
(2) If the initial total number of NOx allowances allocated to all NOx budget units under § 145.4(a)(2) in the state for a control period under subsection (c)(1) does not equal 95% of the portion of the State's Trading Program Budget under § 145.40 covering these units, the Administrator will adjust the total number of NOx allowances allocated to all these NOx budget units for the control period under paragraph (1) so that the total number of NOx allowances allocated equals 95% of the portion of the State's Trading Program Budget under § 145.40 covering these units. This adjustment will be made by multiplying each unit's allocation by 95% of the portion of the State's Trading Program budget under § 145.40 covering these units; dividing by the total number of NOx allowances allocated under paragraph (1) for the control period; and rounding to the nearest whole number of NOx allowances as appropriate.
(d) For each control period specified in § 145.41(d), the Department will allocate NOx allowances to NOx budget units in a given State under § 145.4(a) (except for units exempt under § 145.4(b)) that commence operation, or are projected to commence operation, on or after May 1, 1997 (for control periods under § 145.41(a)); May 1, 2003, (for control periods under § 145.41(b)); and May 1 of the year 5 years before the beginning of the group of 5 years that includes the control period (for control periods under § 145.41(c)). The Department may also use this set-aside to address allocation revisions to units under subsections (a)--(c). The Department will make the allocations under this subsection in accordance with the following procedures:
(1) The Department will establish one allocation set-aside for each control period for each state. Each allocation set-aside will be allocated NOx allowances equal to 5% of the tons of NOx emission in the state's Trading Program Budget under § 145.40, rounded to the nearest whole number of NOx allowances as appropriate.
(2) The NOx authorized account representative of a NOx budget unit specified in this section may submit to the Department a request, in a format specified by the Department, to be allocated NOx allowances for the control period. The NOx allowance allocation request must be received by the Department on or after the date on which the State permitting authority issues a permit to construct the unit and by January 1 before the control period for which NOx allowances are requested.
(3) In a NOx allowance allocation request under paragraph (2), the NOx authorized account representative for a NOx budget unit under § 145.4(a)(1) may request for the control period NOx allowances in an amount that does not exceed the lesser of the following:
(i) 0.15 lb/mmBtu multiplied by the unit's maximum design heat input, multiplied by the lesser of 3,672 hours or the number of hours remaining in the control period starting with the day in the control period on which the unit commences operation or is projected to commence operation, divided by 2,000 lb/ton, and rounded to the nearest whole number of NOx allowances as appropriate.
(ii) The unit's most stringent State or Federal NOx emission limitation multiplied by the unit's maximum design heat input, multiplied by the lesser of 3,672 hours or the number of hours remaining in the control period starting with the day in the control period on which the unit commences operation or is projected to commence operation, divided by 2,000 lb/ton, and rounded to the nearest whole number of NOx allowances as appropriate.
(4) In a NOx allowance allocation request under paragraph (2), the NOx authorized account representative for a NOx budget unit under § 145.4(a)(2) may request for a control period NOx allowances in an amount that does not exceed the lesser of the following:
(i) 0.17 lb/mmBtu multiplied by the unit's maximum design heat input, multiplied by the lesser of 3,672 hours or the number of hours remaining in the control period starting with the day in the control period on which the unit commences operation or is projected to commence operation, divided by 2,000 lb/ton, and rounded to the nearest whole number of NOx allowances as appropriate.
(ii) The unit's most stringent state or Federal NOx emission limitation multiplied by the unit's maximum design heat input, multiplied by the lesser of 3,672 hours or the number of hours remaining in the control period starting with the day in the control period on which the unit commences operation or is projected to commence operation, divided by 2,000 lb/ton, and rounded to the nearest whole number of NOx allowances as appropriate.
(5) The Department will review each NOx allowance allocation request submitted in accordance with paragraph (2) and will allocate NOx allowances pursuant to the request as follows:
(i) Upon receipt of the NOx allowance allocation request, the Department will make any necessary adjustments to the request to ensure that the requirements of paragraphs (2)--(4) are met.
(ii) The Department will determine the following amounts:
(A) The sum of the NOx allowances requested (as adjusted under subparagraph (i)) in all NOx allowance allocation requests under paragraph (2) for the control period.
(B) For units exempt under § 145.4(b) in the state that commenced operation, or are projected to commence operation, on or after May 1, 1997 (for control periods under § 145.41(a)); May 1, 2003 (for control periods under § 145.41(b)); and May 1 of the year 5 years before beginning of the group of 5 years that includes the control period (for control periods under § 145.41(c)), the sum of the NOx emission limitations (in tons of NOx) on which each unit's exemption under § 145.4(b) is based.
(iii) If the number of NOx allowances in the allocation set-aside for the control period less the amount under subparagraph (ii)(B) is not less than the amount determined under subparagraph (ii)(A), the Department will allocate the amount of the NOx allowances requested (as adjusted under subparagraph (i)) to the NOx budget unit for which the allocation request was submitted.
(iv) If the number of NOx allowances in the allocation set-aside for the control period less the amount under subparagraph (ii)(B) is less than the amount determined under subparagraph (ii)(A), the Department will allocate, to the NOx budget unit for which the allocation request was submitted, the amount of NOx allowances requested (as adjusted under subparagraph (i)) multiplied by the number of NOx allowances in the allocation set-aside for the control period less the amount determined under subparagraph (ii)(B), divided by the amount determined under subparagraph (ii)(A), and rounded to the nearest whole number of NOx allowances as appropriate.
(e) Beginning in the 2008 control period, a NOx budget unit identified in subsection (d) may, upon request to the Department, receive allocations calculated under subsections (b) and (c). For the Department to grant the request, the NOx budget unit shall have at least one complete control period of heat input data measured as specified in §§ 145.70--145.75 (relating to recordkeeping and reporting requirements). If heat input data is available from more than one control period but less than the number of control periods specified in subsection (a)(1)(ii) or (iii), the data will be averaged based on the number of available control periods.
(f) The NOx Budget Administrator will take the following action for sources that are allocated NOx allowances under subsection (d):
(1) The NOx Budget Administrator will deduct NOx allowances under § 145.54(b), (e) or (f) to account for the actual heat input of the unit during the control period. The NOx Budget Administrator will calculate the number of NOx allowances to be deducted to account for the unit's actual heat input using the following formulas and rounding to the nearest whole number of NOx allowance as appropriate, provided that the number of NOx allowances to be deducted shall be zero if the number calculated is less than zero:
NOx allowances deducted for actual heat input for a unit under § 145.4(a)(1) = unit's NOx allowances allocated for control period - (unit's actual control period heat input × unit's emission rate × 2,000 lb/ton).NOx allowances deducted for actual heat input for a unit under § 145.4(a)(2) = unit's NOx allowances allocated for control period - (unit's actual control period heat input × unit's emission rate × 2,000 lb/ton)where:''unit's NOx allowances allocated for control period'' is the number of NOx allowances allocated to the unit for the control period under subsection (d).''unit's actual control period heat input'' is the heat input (in mmBtu) of the unit during the control period.''unit's emission rate'' is the emission rate in lb/mmBtu for the unit as determined under paragraphs (3) and (4).(2) The NOx Budget Administrator will transfer any NOx allowances deducted under subsection (c)(1) to the allocation set-aside for the control period for which they were allocated.
(g) After making the deductions for compliance under § 145.54(b), (e) or (f) for a control period, the NOx Budget Administrator will determine whether any NOx allowances remain in the allocation set-aside for the control period. The NOx Budget Administrator will allocate these NOx allowances to the NOx budget units in the state using the following formula and rounding to the nearest whole number of NOx allowances as appropriate:
unit's share of NOx allowances remaining in allocation set-aside = total NOx allowances remaining in allocation set-aside × (unit's NOx allowance allocation ÷ State's Trading Program Budget excluding allocation set-aside)where:''total NOx allowances remaining in allocation set-aside'' is the total number of NOx allowances remaining in the allocation set-aside for the control period.''unit's NOx allowance allocation'' is the number of NOx allowances allocated under subsection (b) or (c) to the unit for the control period to which the allocation set-aside applies.''State's Trading Program budget excluding allocation set-aside'' is the State's Trading Program budget under § 145.40 for the control period to which the allocation set-aside applies multiplied by 95%, rounded to the nearest whole number of NOx allowances as appropriate.(h) If the Department determines that NOx allowances were allocated under subsection (b), (c) or (d) for a control period and the recipient of the allocation is not actually a NOx budget unit under § 145.4(a), the Department will notify the NOx authorized account representative and then will act in accordance with the following procedures:
(1) The NOx Budget Administrator will not record these NOx allowances for the control period in an account under § 145.53 (relating to recordation of NOx allowance allocations).
(i) If the NOx Budget Administrator already recorded these NOx allowances for the control period in an account under § 145.53 and if the NOx Budget Administrator makes this determination before making all deductions under § 145.54 (except deductions under § 145.54(d)(2)) for the control period, the NOx Budget Administrator will deduct from the account NOx allowances equal in number to and allocated for the same or a prior control period as the NOx allowances allocated to the recipient for the control period. The NOx authorized account representative shall ensure that the account contains the NOx allowances necessary for completion of the deduction. If the account does not contain the necessary NOx allowances, the NOx Budget 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 the account.
(ii) If the NOx Budget Administrator already recorded the NOx allowances for the control period in an account under § 145.53 and if the NOx Budget Administrator makes this determination after making all deductions under § 145.54 (except deductions under § 145.54(d)(2)) for the control period, then the NOx Budget Administrator will apply subparagraph (i) to any subsequent control period for which NOx allowances were allocated to the recipient.
(2) The NOx Budget Administrator will transfer the NOx allowances that are not recorded, or that are deducted, under paragraph (1) to an allocation set-aside for the state in which the source is located.
(i) The Department will publish for comment a list of the allocations in the Pennsylvania Bulletin.
§ 145.43. Compliance supplement pool.
(a) For any NOx budget unit that reduces its NOx emission rate in the 2001 or 2002 control period, the owners and operators may request early reduction credits in accordance with the following requirements:
(1) Each NOx budget unit for which the owners and operators intend to request, or request, any early reduction credits in accordance with paragraph (4) shall monitor and report NOx emissions in accordance with this subchapter starting in the 2000 control period and for each control period for which the early reduction credits are requested. The unit's percent monitor data availability may not be less that 90% during the 2000 control period, and the unit shall be in compliance with applicable state or Federal NOx emission control requirements during 2000--2002.
(2) NOx emission rate and heat input under paragraphs (3) and (4) shall be determined in accordance with this subchapter.
(3) Each NOx budget unit for which the owners and operators intend to request, or request, any early reduction credits under paragraph (4) shall reduce its NOx emission rate, for each control period for which early reduction credits are requested, to less than both 0.25 lb/mmBtu and 80% the unit's NOx emission rate in the 2000 control period.
(4) The NOx authorized account representative of an NOx budget unit that meets the requirements of paragraphs (1) and (3) may submit to the Department a request for early reduction credits for the unit based on NOx emission rate reductions made by the unit in the control period for 2001 or 2002.
(i) In the early reduction credit request, the NOx authorized account representative may request early reduction credits for the control period in an amount equal to the unit's heat input for the control period multiplied by the difference between 0.25 lb/mmBtu and the unit's NOx emission rate for the control period, divided by 2000 lb/ton, and rounded to the nearest whole number of tons.
(ii) The early reduction credit request shall be submitted, in a format specified by the Department, by February 1, 2003. Requests submitted after February 1, 2003, will not be accepted.
(b) For any NOx budget unit that is subject to the requirements of §§ 123.101--123.120 (relating to NOx allowance requirements), the owners and operators may request early reduction credits in accordance with the following requirements:
(1) The NOx authorized account representative of the unit may submit to the Department a request for early reduction credits in an amount equal to the amount of banked allowances under §§ 123.101--123.120 that were allocated for the control period in 2001 or 2002 and are held by the unit, in accordance §§ 123.101--123.120, as of the date of submission of the request. During the entire control period in 2001 or 2002 for which the allowances were allocated, the unit shall have monitored and reported NOx emissions in accordance the Guidance for Implementation of Emission Monitoring Requirements for the NOx Budget Program (January 28, 1997).
(2) The early reduction credit request under paragraph (1) shall be submitted, in a format specified by the Department, by February 1, 2003. Requests submitted after February 1, 2003, will not be accepted.
(3) The NOx authorized account representative of the unit may not submit a request for early reduction credits under paragraph (1) for banked allowances under the Ozone Transport Commission NOx Budget Program that were allocated for any control period during which the unit made NOx emission reductions for which he submits a request for early reduction credits under subsection (a) for the unit.
(c) For a NOx budget unit that is subject to the requirements of §§ 123.101--123.120 that installs selective catalytic reduction or selective noncatalytic reduction to reduce NOx emissions after May 1999, the owners and operators may request control equipment early reduction credits in accordance with the following requirements:
(1) Each NOx budget unit for which the owners and operators intend to request, or request early reduction credits in accordance with this subsection shall monitor and report NOx emissions in accordance with this chapter.
(2) The unit shall be in compliance with applicable State or Federal NOx control requirements.
(3) NOx emission rate and heat input under this subsection shall be determined in accordance with this subchapter.
(4) Each NOx budget unit shall reduce its NOx emissions, for each control period for which early reduction credits are requested, to less than the allowances for the unit established in Chapter 123, Appendix E.
(5) The early reduction credit request shall be submitted, in a format specified by the Department, by February 1, 2003. Requests submitted after February 1, 2003, will not be accepted.
(d) For a NOx budget unit that installs and operates innovative control technology, the owners and operators may request innovative technology early reduction credits in accordance with the following requirements:
(1) For purposes of this subsection, innovative control technology is any technology that reduces the emissions of multiple air contaminants, including, at a minimum, NOx, SO2 and mercury, through the application of technology or technology improvements not previously applied to NOx budget units in an amount greater than any applicable state or Federal requirement.
(2) The unit shall be in compliance with any applicable State or Federal NOx control requirements.
(3) NOx emission rate and heat input under this subsection shall be determined in accordance with this subchapter.
(4) The owners and operators of each NOx budget unit shall submit a proposal for the development, design and testing of innovative control technology including milestones for completing each phase of the proposal along with a proposal and justification for the number of innovative early reduction credits requested based on the overall air quality benefits of the innovative technology.
(5) The innovative technology proposal shall be completed by and the early reduction credits used by November 30, 2004.
(6) Failure to complete any phase of the proposal by the milestone date established under this section shall result in a loss of allowances in an amount equal to the amount of the innovative early reduction credits granted to the NOx budget unit.
(7) The early reduction credit request shall be submitted, in a format specified by the Department, by February 1, 2003. Requests submitted after February 1, 2003, will not be accepted.
(e) The Department will review each early reduction credit request submitted in accordance with subsections (a)--(d) and will allocate NOx allowances to NOx budget units in a given state and covered by the request as follows:
(1) Upon receipt of each early reduction credit request, the Department will make any necessary adjustments to the request to ensure that the amount of the early reduction credits requested meets the requirements of subsections (a)--(d).
(2) After February 1, 2003, the Department will publish in the Pennsylvania Bulletin a statement of the total number of early reduction credits requested by NOx budget units in the State.
(3) Pennsylvania's compliance supplement pool is 15,763 NOx allowances.
(i) 1,576 NOx allowances are available for the control equipment early reduction credits established under subsection (c).
(ii) 1,576 NOx allowances are available for the innovative technology early reduction credits established under subsection (d).
(iii) 12,611 NOx allowances are available for the early reduction credits established under subsections (a) and (b).
(iv) Unused early reduction credits established under subparagraphs (i) and (ii) shall be available for the early reduction credits established under subsections (a) and (b).
(v) The compliance supplement pool for upwind states is listed in § 145.100(b) (relating to applicability to upwind states).
(4) If the compliance supplement pool for each of the categories of early reduction credits established in paragraph (3) has a number of NOx allowances not less than the amount of early reduction credits in all early reduction credit requests received under subsections (a)--(d) (as adjusted under subsection (e)(1)) submitted by February 1, 2003, the Department will allocate to each NOx budget unit covered by the request one allowance for each early reduction credit requested (as adjusted under paragraph (1)).
(5) If the compliance supplement pool has a smaller number of NOx allowances for any of the categories of early reduction credits established in paragraph (3) than the amount of early reduction credits in all early reduction requests under subsections (a)--(d) for 2001 and 2002 (as adjusted under paragraph (1)) submitted by February 1, 2003, the Department will allocate NOx allowances for each of the categories established in paragraph (3) to each NOx budget unit covered by the requests according to the following formula and rounding to the nearest whole number of NOx allowances as appropriate. This prorata allocation will be performed for allocations under subsections (c) and (d) and any requests for NOx allowances that are not fully allocated shall be available for allocation under subsections (a) and (b) if they otherwise qualify under those subsections:
unit's allocation for early reduction credits = unit's adjusted early reduction credits × (State's compliance supplement pool ÷ total adjusted early reduction credits for all units)where:''unit's allocation for early reduction credits'' is the number of NOx allowances allocated to the unit for early reduction credits.''unit's adjusted early reduction credits'' is the amount of early reduction credits requested for the unit for 2001 and 2002 in early reduction credit requests under subsection (a)--(d), as adjusted under paragraph (1).''States compliance supplement pool'' is the number of NOx allowances for each category of early reduction credits established in paragraph (3).''total adjusted early reduction credits for all units'' is the amount of early reduction credits requested for all units for 2001 and 2002 in early reduction credit requests under subsections (a)--(d), as adjusted under paragraph (1).(6) By April 1, 2003, the Department will determine the allocations under paragraph (4) or (5). The Department will make available to the public each determination of NOx allowance allocations and will provide an opportunity for comment. Based on these comments, the Department will adjust each determination to the extent necessary to ensure that it is in accordance with paragraph (1), (4) or (5).
(7) By May 1, 2003, the NOx Budget Administrator will record the allocations under paragraph (3) or (5).
(8) NOx allowances recorded under paragraph (7) may be deducted for compliance under § 145.54 (relating to compliance) for the control period in 2003 or 2004. Notwithstanding § 145.55(a) (relating to banking), the NOx Budget Administrator will deduct as retired any NOx allowance that is recorded under paragraph (7) and that is not deducted for compliance under § 145.54 for the control period in 2003 or 2004.
(9) NOx allowances recorded under paragraph (7) are treated as banked allowances in 2004 for the purposes of §§ 145.54(f) and 145.55(b).
[Continued on next Web Page]
No part of the information on this site may be reproduced for profit or sold for profit.This material has been drawn directly from the official Pennsylvania Bulletin full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.
