[29 Pa.B. 1319]
[Continued from previous Web Page] § 145.3. Measurements, abbreviations and acronyms.
Measurements, abbreviations and acronyms used in this part are defined as follows:
Btu--British thermal unit.
hr--hour.
Kwh--kilowatt hour.
lb--pounds.
mmBtu--million Btu.
MWe--megawatt electrical.
ton--2,000 pounds.
CO2--carbon dioxide.
NOx--nitrogen oxides.
O2--oxygen.
§ 145.4. Applicability.
The following units shall be NOx budget units, and any source that includes one or more of the units shall be a NOx budget source, subject to the requirements of this subchapter:
(1) A unit that, any time on or after January 1, 1995, serves a generator with a nameplate capacity greater than or equal to 15 MWe.
(2) A unit that is not a unit under paragraph (1) and that has a maximum design heat input greater than or equal to 250 mmBtu/hr.
§ 145.5. Retired unit exemption.
(a) Application. This section applies to an NOx budget unit, other than a NOx budget opt-in source, that is permanently retired.
(b) Requirements.
(1) An NOx budget unit, other than an NOx budget opt-in source, that is permanently retired is exempt from the NOx Budget Trading Program, except for the provisions of this section, §§ 145.2, 145.3, 145.4, 145.6, 145.7 and §§ 145.40--145.62.
(2) The exemption under paragraph (1) shall become effective the day on which the unit is permanently retired. Within 30 days of permanent retirement, the NOx authorized account representative (authorized in accordance with this subchapter ) shall submit a statement to the Department. A copy of the statement shall be submitted to the Administrator. The statement shall state (in a format prescribed by the Department) that the unit is permanently retired and will comply with subsection (c).
(3) After receipt of the notice under paragraph (2), the Department will amend any permit covering the source at which the unit is located to add the provisions and requirements of the exemption under paragraph (1) and subsection (c).
(c) Special provisions.
(1) A unit exempt under this section may not emit NOx, starting on the date that the exemption takes effect. The owners and operators of the unit will be allocated allowances in accordance with §§ 145.40--145.42 (relating to NOx allowance allocations).
(2) A unit exempt under this section may not resume operation unless the NOx authorized account representative of the source submits a complete NOx budget permit application under § 145.22 (relating to information requirements for NOx budget permit applications) for the unit at least 18 months prior to the date on which the unit is to first resume operation.
(3) The owners and operators and, to the extent applicable, the NOx authorized account representative of a unit exempt under this section shall comply with the requirements of the NOx Budget Trading Program concerning all periods for which the exemption is not in effect, even if the requirements arise, or must be complied with, after the exemption takes effect.
(4) A unit that is exempt under this section is not eligible to be a NOx budget opt-in source under §§ 145.80--145.88 (relating to opt-in process).
(5) For 5 years from the date the records are created, the owners and operators of a unit exempt under this section shall retain at the source that includes the unit, records demonstrating that the unit is permanently retired. The 5-year period for keeping records may be extended for cause, at any time prior to the end of the period, in writing by the Department or the Administrator. The owners and operators bear the burden of proof that the unit is permanently retired.
(6) Loss of an exemption will be as follows:
(i) On the earlier of the following dates, a unit exempt under subsection (b) shall lose its exemption:
(A) The date on which the NOx authorized account representative submits a NOx budget permit application under paragraph (2).
(B) The date on which the NOx authorized account representative is required under paragraph (2) to submit a NOx budget permit application.
(ii) For the purpose of applying monitoring requirements under §§ 145.70--145.76 (relating to recordkeeping and reporting requirements), a unit that loses its exemption under this section shall be treated as a unit that commences operation or commercial operation on the first date on which the unit resumes operation.
§ 145.6. Standard requirements.
(a) Permit requirements.
(1) The NOx authorized account representative of each NOx budget source and each NOx budget unit at the source shall:
(i) Submit to the Department a complete NOx budget permit application under § 145.22 in accordance with the deadlines specified in § 145.21(b) (relating to NOx budget permit applications).
(ii) Submit supplemental information that the Department determines is necessary to review an NOx budget permit application and issue or deny an NOx budget permit.
(2) The owners and operators of each NOx budget source and each NOx budget unit at the source shall have an NOx budget permit issued by the Department and operate the unit in compliance with the NOx budget permit.
(b) Monitoring requirements.
(1) The owners and operators and the NOx authorized account representative of each NOx budget source and each NOx budget unit at the source shall comply with the monitoring requirements of §§ 145.70--145.76 (relating to recordkeeping and recording requirements).
(2) The emissions measurements recorded and reported in accordance with §§ 145.70--145.76 shall be used to determine compliance by the unit with the NOx budget emissions limitation under subsection (c).
(c) NOx requirements.
(1) The owners and operators of each NOx budget source and each NOx budget unit at the source shall hold NOx allowances available for compliance deductions under § 145.54 (relating to compliance), as of the NOx allowance transfer deadline, in the unit's compliance account and the source's overdraft account in an amount not less than the total NOx emissions for the control period from the unit, as determined in accordance with §§ 145.70--145.76, plus any amount necessary to account for actual utilization under § 145.42(e) (relating to NOx allowance allocation) for the control period.
(2) Each ton of NOx emitted in excess of the NOx budget emissions limitation shall constitute a separate violation of this subchapter and the act.
(3) An NOx budget unit shall be subject to the requirements under paragraph (1) starting on May 1, 2003, or the date on which the unit commences operation, whichever is later.
(4) NOx allowances shall be held in, deducted from, or transferred among NOx Allowance Tracking System accounts in accordance with §§ 145.40--145.62 and 145.80--145.88.
(5) An NOx allowance may not be deducted, to comply with paragraph (1), for a control period in a year prior to the year for which the NOx allowance was allocated.
(6) An NOx allowance allocated by the Department under the NOx Budget Trading Program is a limited authorization to emit 1 ton of NOx 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 § 145.5 (relating to retired unit exemption) and no provision of law limit the authority of the United States or the Department to terminate or limit the authorization.
(7) An NOx allowance allocated by the Department under the NOx Budget Trading Program does not constitute a property right.
(d) Excess emissions. The owners and operators of an NOx budget unit that has excess emissions in any control period shall do the following:
(1) Surrender the NOx allowances required for deduction under § 145.54(d)(1) (relating to compliance).
(2) Pay any fine, penalty or assessment or comply with any other remedy imposed under § 145.54(d)(3) or the act.
(e) Recordkeeping and reporting requirements.
(1) Unless otherwise provided, the owners and operators of the NOx budget source and each NOx budget unit at the source shall keep on site at the source each of the following documents for 5 years from the date the document is created. This period may be extended for cause, at any time prior to the end of 5 years, in writing by the Department or the Administrator.
(i) The account certificate of representation for the NOx authorized account representative for the source and each NOx budget unit at the source and all documents that demonstrate the truth of the statements in the account certificate of representation, in accordance with § 145.13 (relating to account certificate of representation). The certificate and documents shall be retained on site at the source beyond the 5-year period until the documents are superseded because of the submission of a new account certificate of representation changing the NOx authorized account representative.
(ii) The emissions monitoring information, in accordance with §§ 145.70--145.76 to the extent that §§ 145.70--145.76 provides for a 3-year period for recordkeeping, the 3-year period applies.
(iii) Copies of all reports, compliance certifications and other submissions and all records made or required under the NOx Budget Trading Program.
(iv) Copies of the documents used to complete a NOx budget permit application and any other submission under the NOx Budget Trading Program or to demonstrate compliance with the requirements of the NOx Budget Trading Program.
(2) The NOx authorized account representative of a NOx budget source and each NOx budget unit at the source shall submit the reports and compliance certifications required under the NOx Budget Trading Program, including those under §§ 145.30 and 145.31 and 145.70--145.88.
(f) Liability.
(1) A permit revision may not excuse any violation of the requirements of the NOx Budget Trading Program that occurs prior to the date that the revision takes effect.
(2) Each NOx budget source and each NOx budget unit shall meet the requirements of the NOx Budget Trading Program.
(3) Any provision of the NOx Budget Trading Program that applies to a NOx budget source (including a provision applicable to the NOx authorized account representative of a NOx budget source) shall also apply to the owners and operators of the source and of the NOx budget units at the source.
(4) Any provision of the NOx Budget Trading Program that applies to a NOx budget unit (including a provision applicable to the NOx authorized account representative of a NOx budget unit) shall also apply to the owners and operators of the unit.
(g) Effect on other authorities. No provision of the NOx Budget Trading Program, a NOx budget permit application, a NOx budget permit, or an exemption under § 145.5 shall be construed as exempting or excluding the owners and operators and the NOx authorized account representative of a NOx budget source or NOx budget unit from compliance with any other provision of the regulations promulgated under the CAA or the act.
§ 145.7. Computation of time.
(a) Unless otherwise stated, any time period scheduled, under the NOx Budget Trading Program, to begin on the occurrence of an act or event shall begin on the day the act or event occurs.
(b) Unless otherwise stated, any time period scheduled, under the NOx Budget Trading Program, to begin before the occurrence of an act or event shall be computed so that the period ends the day before the act or event occurs.
(c) Unless otherwise stated, if the final day of any time period, under the NOx Budget Trading Program, falls on a weekend or a State or Federal holiday, the time period shall be extended to the next business day.
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 one and 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 budget permit will not be issued, and an 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 an 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 an NOx budget source or an 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 part, 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 an NOx budget source or an 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 an 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 an 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 such 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 an NOx authorized account representative, including private legal disputes concerning the proceeds of NOx allowance transfers.
PERMIT REQUIREMENTS § 145.20. General NOx Budget Trading Program permit requirements.
(a) Each NOx budget source shall have an NOx budget permit.
(1) For NOx budget sources required to have a Title V operating permit, the NOx budget portion of the Title V permit shall be administered in accordance with Chapter 127, Subchapter G (relating to Title V operating permits).
(2) For NOx budget sources required to have a non-Title V permit, the NOx budget portion of the non-Title V permit shall be administered in accordance with Chapter 127, Subchapters A, B and F (relating to general; plan approval requirements; and operating permit requirements).
(b) Each NOx budget permit shall include applicable NOx Budget Trading Program requirements and shall be a complete and segregable portion of the permit under subsection (a).
§ 145.21. NOx budget permit applications.
(a) Submission of application. The NOx authorized account representative of an NOx budget source shall submit to the Department a complete NOx budget permit application under § 145.22 (relating to information requirements for NOx budget permit applications) by the applicable deadline in subsection (b).
(b) NOx budget permits.
(1) For any source, with one or more NOx budget units under § 145.4 (relating to applicability) that commence operation before January 1, 2000, the NOx authorized account representative shall submit a complete NOx budget permit application under § 145.22 and Chapter 127, Subchapters F and G (relating to operating permit requirements; Title V operating requirements) covering the NOx budget units to the Department by ____ (Editor's Note: The blank refers to a date 6 months after the effective date of adoption of this proposed rulemaking).
(2) For any source, with an NOx budget unit under § 145.4 that commences operation on or after January 1, 2000, the NOx authorized account representative shall submit a complete NOx budget permit application under § 145.22 and Chapter 127 (relating to construction, modification, reactivation and operation of sources) covering the NOx budget unit to the Department as provided for in Chapter 127, Subchapters B, D or E (relating to plan approval requirements; prevention of significant deterioration of air quality; and new source review), whichever is applicable.
§ 145.22. Information requirements for NOx budget permit applications.
In addition to the requirements of Chapter 127 (relating to construction, modification, reactivation and operation of sources), a complete NOx budget permit application shall include the following elements concerning the NOx budget source for which the application is submitted, in a format prescribed by the Department:
(1) Identification of the NOx budget source, including the plant name and the ORIS (Office of Regulatory Information Systems) or facility code assigned to the source by the Energy Information Administration, if applicable.
(2) Identification of each NOx budget unit at the NOx budget source and whether it is an NOx budget unit under § 145.4 or §§ 145.80--145.88 (relating to opt-in process).
(3) The standard requirements under § 145.6 (relating to standard requirements).
(4) For each NOx budget opt-in unit at the NOx budget source, the following certification statements by the NOx authorized account representative:
(i) ''I certify that each unit for which this permit application is submitted under §§ 145.80--145.88 is not a NOx budget unit under § 145.4 and is not covered by a retired unit exemption under § 145.5 that is in effect.''
(ii) If the application is for an initial NOx budget opt-in permit, ''I certify that each unit for which this permit application is submitted under §§ 145.80--145.88 is currently operating, as that term is defined under § 145.2.''
§ 145.23. NOx budget permit contents.
(a) In addition to the requirements in Chapter 127 (relating to construction, modification, reactivation and operation of sources), an NOx budget permit will contain, in a format prescribed by the Department, the elements required for a complete NOx budget permit application under § 145.22 (relating to information requirements for NOx budget permit applications).
(b) An NOx budget permit shall incorporate the requirements of this subchapter.
§ 145.24. Effective date of initial NOx budget permit.
The initial NOx budget permit covering an NOx budget unit for which a complete NOx budget permit application is timely submitted under § 145.21(b) (relating to NOx budget permit applications) shall become effective upon issuance.
§ 145.25. NOx Budget permit revisions.
Revisions to a NOx budget permit shall be done in accordance with Chapter 127 (relating to construction, modification, reactivation and operation of sources).
COMPLIANCE CERTIFICATION § 145.30. Compliance certification report.
(a) Applicability and deadline. In addition to the requirements of § 127.513 (relating to compliance certification), 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 NOx Budget Administrator, 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 recordation of NOx allowance allocations) 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) (relating to compliance).
(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 requirements of 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.
(6) A report on methods used to comply with the requirements of § 127.12a(k) (relating to compliance review).
§ 145.31. The 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.
The trading program budget allocated by the Department under § 145.42 (relating to NOx allowance allocations) for a control period will equal the total number of tons of NOx emissions apportioned to the NOx budget units under § 145.4 (relating to applicability) in this Commonwealth for the control period, as follows:
(1) The NOx budget for electric generating units under this subchapter is 52,000 tons per season.
(2) The NOx budget for nonelectric generating units under this subchapter is 5,600 tons per season.
(3) The NOx budget may be adjusted as provided in §§ 145.55(c)(10), 145.80--145.88 and 145.90 (relating to banking; opt-in process; and 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, 2004 and 2005.
(b) By April 1, 2003, and April 1 of each year thereafter, the Department will submit to the NOx Allowance Tracking System the NOx allowance allocations, in accordance with § 145.42, for the control period in the year that is 3 years after the year of the applicable deadline for submission under this subsection (b). If the Department fails to submit the NOx allowance allocations in accordance with this subsection, the same number of NOx allowances as were allocated for the preceding control period will be allocated for the control period.
(c) By April 1, 2004, and April 1 of each year thereafter, the Department will submit to the NOx Allowance Tracking System the NOx allowance allocations, in accordance with § 145.42, for NOx allowances remaining in the allocation set-aside for the prior control period.
§ 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 an NOx allowance allocation under § 145.41(a) (relating to timing requirements for NOx allowance allocations), the average of the two highest amounts of the unit's heat input for the control periods in 1995, 1996 and 1997 if the unit is under § 145.4(1) or the control period in 1995 if the unit is under § 145.4(2).
(ii) For an NOx allowance allocation under § 145.41(b), the unit's heat input for the control period in the year that is 4 years before the year for which the NOx allocation is being calculated.
(2) The unit's total 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) if the NOx budget unit was otherwise subject to 40 CFR Part 75 for the year, or will be based on the best available data reported to the Department for the unit if the unit was not otherwise subject to 40 CFR Part 75 for the year. The best available data will be determined in the following order: emission statements submitted as required by § 135.21 (relating to emission statements), data collected by continuous emission monitors required by Chapter 139 (relating to sampling and testing), data submitted to the Department as required under § 135.3 (relating to reporting), data from multiple stack or fuel tests, data from a single stack or fuel test.
(b) For each control period under § 145.41 (relating to timing requirements for NOx allowance allocations), the Department will allocate to all NOx budget units under § 145.4(1) in the State that commenced operation before May 1 of the period used to calculate heat input under paragraph (1), a total number of NOx allowances equal to 95% in 2003, 2004 and 2005, or 98% thereafter, of the tons of NOx emissions in the State trading program budget apportioned to electric generating units under § 145.40 (relating to State trading program budget) in accordance with the following procedures:
(1) The Department will allocate NOx allowances to each NOx budget unit under § 145.4(1) in an amount equaling 0.15 lb/mmBtu or allowable emission level, whichever is lower, multiplied by the heat input determined under subsection (a), rounded to the nearest whole NOx allowance as appropriate.
(2) If the initial total number of NOx allowances allocated to all NOx budget units under § 145.4(1) in this Commonwealth for a control period under paragraph (1) does not equal 95% in 2003, 2004 and 2005, or 98% thereafter, of the number of tons of NOx emissions in the Pennsylvania trading program budget apportioned to electric generating units, the Department will adjust the total number of NOx allowances allocated to all of the NOx budget units for the control period under paragraph (1) so that the total number of NOx allowances allocated equals 95% in 2003, 2004 and 2005, or 98% thereafter, of the number of tons of NOx emissions in the Pennsylvania trading program budget apportioned to electric generating units. This adjustment will be made by: multiplying each unit's allocation by 95% in 2003, 2004 and 2005, or 98% thereafter, of the number of tons of NOx emissions in the Pennsylvania trading program budget apportioned to electric generating units divided by the total number of NOx allowances allocated under paragraph (1), and rounding to the nearest whole NOx allowance as appropriate.
(c) For each control period under § 145.41, the Department will allocate to all NOx budget units under § 145.4(2) in this Commonwealth that commenced operation before May 1 of the period used to calculate heat input under subsection (a), a total number of NOx allowances equal to 95% in 2003, 2004 and 2005, or 98% thereafter, of the tons of NOx emissions in the Pennsylvania trading program budget apportioned to nonelectric generating units under § 145.40 in accordance with the following procedures:
(1) The Department will allocate NOx allowances to each NOx budget unit under § 145.4(2) in an amount equaling 0.17 lb/mmBtu or allowable emission level, whichever is lower, multiplied by the heat input determined under subsection (a), rounded to the nearest whole NOx allowance as appropriate.
(2) If the initial total number of NOx allowances allocated to all NOx budget units under § 145.4(2) in this Commonwealth for a control period under paragraph (1) does not equal 95% in 2003, 2004 and 2005, or 98% thereafter, of the number of tons of NOx emissions in the Pennsylvania trading program budget apportioned to nonelectric generating units, the Department will adjust the total number of NOx allowances allocated to all of the NOx budget units for the control period under paragraph (1) so that the total number of NOx allowances allocated equals 95% in 2003, 2004 and 2005, or 98% thereafter, of the number of tons of NOx emissions in the Pennsylvania trading program budget apportioned to nonelectric generating units. This adjustment will be made by multiplying each unit's allocation by 95% in 2003, 2004 and 2005, or 98% thereafter, of the number of tons of NOx emissions in the Pennsylvania trading program budget apportioned to nonelectric generating units divided by the total number of NOx allowances allocated under paragraph (1), and rounding to the nearest whole NOx allowance as appropriate.
(d) For each control period under § 145.41, the Department will allocate NOx allowances to NOx budget units under § 145.4 in this Commonwealth that commenced operation, or are projected to commence operation, on or after May 1 of the period used to calculate heat input under subsection (a)(1), in accordance with the following procedures:
(1) The Department will establish one allocation set-aside for each control period. Each allocation set-aside will be allocated NOx allowances equal to 5% in 2003, 2004 and 2005, or 2% thereafter, of the tons of NOx emissions in the Pennsylvania trading program budget under § 145.40, rounded to the nearest whole NOx allowance as appropriate.
(2) The NOx authorized account representative of a NOx budget unit under this subsection may submit to the Department a request, as part of a plan approval application under Chapter 127, Subchapter B (relating to plan approval requirements), to be allocated NOx allowances for no more than five consecutive control periods under § 145.41, starting with the control period during which the NOx budget unit commenced, or is projected to commence, operation and ending with the control period preceding the control period for which it will receive an allocation under subsection (b) or (c). NOx budget affected units that have been issued their plan approvals as of the effective date of this subchapter may submit a request for allowances prior to May 1 of the first control period for which the NOx allowance allocation is requested and after the date on which the Department approves a plan approval for the NOx budget unit under Chapter 127 (relating to construction, modification, reactivation and operation of sources).
(3) In a NOx allowance allocation request under paragraph (2), the NOx authorized account representative for units under § 145.4(1) may request for a control period NOx allowances in an amount that does not exceed 0.15 lb/mmBtu or allowable emission rate, whichever is less, multiplied by the NOx budget unit's maximum design heat input (in mmBtu/hr) multiplied by the number of hours remaining in the control period starting with the first day in the control period on which the unit operated or is projected to operate.
(4) In a NOx allowance allocation request under paragraph (2), the NOx authorized account representative for units under § 145.4(2) may request for a control period NOx allowance in an amount that does not exceed 0.17 lb/mmBtu or allowable emission rate, whichever is less, multiplied by the NOx budget unit's maximum design heat input (in mmBtu/hr) multiplied by the number of hours remaining in the control period starting with the first day in the control period on which the unit operated or is projected to operate.
(5) The Department will review and allocate NOx allowances under each NOx allowance allocation request under paragraph (2) in the order that plan approval is issued.
(i) Upon receipt of the NOx allowance allocation request, the Department will determine whether, and will make any necessary adjustments to the request to ensure that, for units under § 145.4(1), the control period and the number of allowances specified are consistent with paragraphs (2) and (3) and, for units under § 145.4(2), the control period and the number of allowances specified are consistent with paragraphs (2) and (4).
(ii) If the allocation set-aside for the control period for which NOx allowances are requested has an amount of NOx allowances not less than the number requested (as adjusted under subparagraph (i)), the Department will allocate the amount of the NOx allowances requested (as adjusted under subparagraph (i)) to the NOx budget unit upon issuance of the plan approval under Chapter 127.
(iii) If the allocation set-aside for the control period for which NOx allowances are requested has a smaller amount of NOx allowances than the number requested (as adjusted under subparagraph (i)), the Department will deny in part the request and allocate only the remaining number of NOx allowances in the allocation set-aside to the NOx budget unit.
(iv) Once an allocation set-aside for a control period has been depleted of all NOx allowances, the Department will deny, and will not allocate any NOx allowances under, any NOx allowance allocation request under which NOx allowances have not already been allocated for the control period.
(e) For an NOx budget unit that is allocated NOx allowances under subsection (d) for a control period, NOx allowances will be deducted under § 145.54(b) or (e) (relating to compliance) to account for the actual utilization of the unit during the control period. The number of NOx allowances will be calculated to be deducted to account for the unit's actual utilization using the following formulas and rounding to the nearest whole 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 utilization for units under § 145.4(1) = (Unit's NOx allowances allocated for control period) - (Unit's actual control period utilization x 0.15 lb/mmBtu or allowable emission rate, whichever is less).
NOx allowances deducted for actual utilization for units under § 145.4(2) = (Unit's NOx allowances allocated for control period) - (Unit's actual control period utilization x 0.17 lb/mmBtu or allowable emission rate, whichever is less).
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) and ''Unit's actual control period utilization'' is the utilization (in mmBtu), as defined in § 145.2, of the unit during the control period.
(f) After making the deductions for compliance under § 145.54(b) or (e) for a control period, the Department will allocate any remaining NOx allowances to the NOx budget units using the following formula and rounding to the nearest whole NOx allowance as appropriate:
Unit's share of NOx allowances remaining in allocation set-aside = Total NOx allowances remaining in allocation set-aside x (Unit's NOx allowance allocation ÷ (State 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 to which the allocation set-aside applies.''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 trading program budget excluding allocation set-aside'' is the Pennsylvania trading program budget under § 145.40 for the control period to which the allocation set-aside applies multiplied by 95% if the control period is in 2003, 2004 or 2005 or 98% if the control period is in any year thereafter, rounded to the nearest whole NOx allowance as appropriate.
ACCOUNTING PROCESS FOR DEPOSIT, USE AND TRANSFER OF ALLOWANCES § 145.50. NOx Allowance Tracking System accounts.
(a) Nature and function of compliance accounts and overdraft accounts. Consistent with § 145.51(a) (relating to establishment of accounts), the NOx Budget Administrator will establish one compliance account for each NOx budget unit and one overdraft account for each source with one or more NOx budget units. Allocations of NOx allowances under §§ 145.40--145.42 or § 145.88 (relating to NOx allowance allocations; and opt-in source change in regulatory status) and deductions or transfers of NOx allowances under § 145.31, § 145.54, § 145.56, §§ 145.6--145.62, or §§ 145.80--145.88 will be recorded in the compliance accounts or overdraft accounts.
(b) Nature and function of general accounts. Consistent with § 145.51(b) (relating to establishment of accounts), the NOx Budget Administrator will establish, upon request, a general account for any person. Transfers of allowances under §§ 145.60--145.62 (relating to NOx allowance transfers) will be recorded in the general account.
§ 145.51. Establishment of accounts.
(a) Compliance accounts and overdraft accounts. Upon receipt of a complete account certificate of representation under § 145.13 (relating to account certificate of representation), the NOx Budget Administrator will establish the following:
(1) A compliance account for each NOx budget unit for which the account certificate of representation was submitted.
(2) An overdraft account for each source for which the account certificate of representation was submitted and that has two or more NOx budget units.
(b) General accounts.
(1) Elements for account.
(i) A person may apply to open a general account for the purpose of holding and transferring allowances. A complete application for a general account shall be submitted to the NOx Budget Administrator and shall include the following elements in a format prescribed by the NOx Budget Administrator:
(A) The name, mailing 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.
(B) The organization name and type of organization.
(C) A list of all persons subject to a binding agreement for the NOx authorized account representative or any alternate NOx authorized account representative to represent their ownership interest with respect to the allowances held in the general account.
(D) 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 the NOx alternate authorized account representative, as applicable, by an agreement that is binding on all persons who have an ownership interest with respect to allowances held in the general account. 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 such persons and that each such person shall be fully bound by my representations, actions, inactions, or submissions and by any order or decision issued to me by the Department, Administrator or a court regarding the general account.''(E) The signature of the NOx authorized account representative and any alternate NOx authorized account representative and the dates signed.
(ii) Unless otherwise required by the NOx Budget Administrator, documents of agreement referred to in the account certificate of representation may not be submitted to the NOx Budget Administrator. The Department or NOx Budget Administrator are not under any obligation to review or evaluate the sufficiency of the documents, if submitted.
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