[30 Pa.B. 4899]
[Continued from previous Web Page]
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 two 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, §§ 145.60--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.
(2) Receipt of complete application. Upon receipt by the NOx Budget Administrator of a complete application for a general account under paragraph (1):
(i) The NOx Budget Administrator will establish a general account for the person for whom the application is submitted.
(ii) The NOx authorized account representative and any alternate NOx authorized account representative for the general account shall represent and, by his representations, actions, inactions or submissions, legally bind each person who has an ownership interest with respect to NOx allowances held in the general account in all matters pertaining to the NOx Budget Trading Program, not-withstanding an agreement between the NOx authorized account representative or an alternate NOx authorized account representative and the person. This person shall be bound by any order or decision issued to the NOx authorized account representative or an alternate NOx authorized account representative by the Department, the Administrator or a court regarding the general account.
(iii) Each submission concerning the general account shall be submitted, signed and certified by the NOx authorized account representative or an alternate NOx authorized account representative for the persons having an ownership interest with respect to NOx allowances held in the general account. Each submission shall include the following certification statement by the NOx authorized account representative or an alternate NOx authorized account representative:
''I am authorized to make this submission on behalf of the persons having an ownership interest with respect to the NOx allowances held in the general account. 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.''(iv) The NOx Budget Administrator will accept or act on a submission concerning the general account only if the submission has been made, signed and certified in accordance with subparagraph (iii).
(3) Representative designation.
(i) An application for a general account may designate only one NOx authorized account representative and 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.
(ii) Upon receipt by the NOx Budget Administrator of a complete application for a general account under paragraph (1), any representation, action, inaction or submission by an alternate NOx authorized account representative shall be deemed to be a representation, action, inaction or submission by the NOx authorized account representative.
(4) Revising the account representative.
(i) The NOx authorized account representative for a general account may be changed at any time upon receipt by the NOx Budget Administrator of a superseding complete application for a general account under paragraph (1). Notwithstanding a change, the representations, actions, inactions and submissions by the previous NOx authorized account representative prior to the time and date when the NOx Budget Administrator receives the superseding application for a general account shall be binding on the new NOx authorized account representative and the persons with an ownership interest with respect to the allowances in the general account.
(ii) The alternate NOx authorized account representative for a general account may be changed at any time upon receipt by the NOx Budget Administrator of a superseding complete application for a general account under paragraph (1). 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 NOx Budget Administrator receives the superseding application for a general account shall be binding on the new alternate NOx authorized account representative and the persons with an ownership interest with respect to the allowances in the general account.
(iii) A revision of ownership listing shall include the following:
(A) If a new person having an ownership interest with respect to NOx allowances in the general account is not included in the list of persons in the account certificate of representation, the new person shall be subject to and bound by the account certificate of representation, the representation, 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 NOx Budget Administrator, as if the new person were included in the list.
(B) Within 30 days following any change in the persons having an ownership interest with respect to NOx allowances in the general account, including the addition of persons, the NOx authorized account representative or an alternate NOx authorized account representative shall submit a revision to the application for a general account amending the list of persons having an ownership interest with respect to the NOx allowances in the general account to include the change.
(5) Reliance on application.
(i) Once a complete application for a general account under paragraph (1) has been submitted and received, the NOx Budget Administrator will rely on the application until a superseding complete application for a general account under paragraph (1) is received by the NOx Budget Administrator.
(ii) Except as provided in paragraph (4), no objection or other communication submitted to the NOx Budget Administrator concerning the authorization, or any representation, action, inaction or submission of the NOx authorized account representative or any alternate NOx authorized account representative for a general account will affect any representation, action, inaction or submission of the NOx authorized account representative or an alternate NOx authorized account representative or the finality of a decision or order by the Department or NOx Budget Administrator under the NOx Budget Trading Program.
(iii) The Department or NOx Budget Administrator will not adjudicate a private legal dispute concerning the authorization or representation, action, inaction or submission of the NOx authorized account representative or any alternate NOx authorized account representative for a general account, including private legal disputes concerning the proceeds of NOx allowance transfers.
(c) Account identification. The NOx Budget Administrator will assign a unique identifying number to each account established under subsection (a) or (b).
§ 145.52. NOx Allowance Tracking System responsibilities of NOx authorized account representative.
(a) Establishment of account. Following the establishment of a NOx Allowance Tracking System account, the submissions to the Department or the NOx Budget Administrator pertaining to the account, including, but not limited to, submissions concerning the deduction or transfer of NOx allowances in the account, shall be made only by the NOx authorized account representative for the account.
(b) Authorized account representative identification. The NOx Budget Administrator will assign a unique identifying number to each NOx authorized account representative.
§ 145.53. Recordation of NOx allowance allocations.
(a) The NOx Budget Administrator will record the NOx allowances for 2003 in the NOx budget units' compliance accounts and the allocation set-asides, as allocated under §§ 145.40--145.43 (relating to NOx allowance allocations). The NOx Budget Administrator will also record the NOx allowances allocated under § 145.88(a)(1) (relating to NOx allowance allocations to opt-in units) for each NOx budget opt-in source in its compliance account. NOx allowances under § 145.4(b)(4)(ii) or § 145.5(c)(2) (relating to applicability; and retired unit exemption) will be recorded in the general account specified by the owners and operators of the unit.
(b) By May 1, 2001, the NOx Budget Administrator will record the NOx allowances for 2004 for a NOx budget unit allocated under §§ 145.40--145.43 in the unit's compliance account, except for NOx allowances under § 145.4(b)(4)(ii) or § 145.5(c)(2), which will be recorded in the general account specified by the owners and operators of the unit. The NOx Budget Administrator will record NOx allowances for 2004 for a NOx budget opt-in unit in the unit's compliance account as allocated under § 145.88(a).
(c) By May 1, 2002, the NOx Budget Administrator will record the NOx allowances for 2005 for a NOx budget unit allocated under §§ 145.40--145.43 in the unit's compliance account, except for NOx allowances under § 145.4(b)(4)(ii) or § 145.5(c)(2), which will be recorded in the general account specified by the owners and operators of the unit. The NOx Budget Administrator will record NOx allowances for 2005 for a NOx budget opt-in unit in the unit's compliance account as allocated under § 145.88(a) (relating to NOx allowances allocations to opt-in units).
(d) By May 1, 2003, the NOx Budget Administrator will record the NOx allowances for 2006 for a NOx budget unit allocated under §§ 145.40--145.43 in the unit's compliance account, except for NOx allowances under § 145.4(b)(4)(ii) or § 145.5(c)(2), which will be recorded in the general account specified by the owners and operators of the unit. The NOx Budget Administrator will record NOx allowances for 2006 for a NOx budget opt-in unit in the unit's compliance account as allocated under § 145.88(a).
(e) Each year starting with 2004, after the NOx Budget Administrator has made all deductions from a NOx budget unit's compliance account and the overdraft account under § 145.54 (relating to compliance) (except deductions under § 145.54(d)(2)), the NOx Budget Administrator will record the following:
(1) NOx allowances, in the compliance account, as allocated to the unit under §§ 145.40--145.43 for the third year after the year of the control period for which the deductions were or could have been made.
(2) NOx allowances, in the general account specified by the owners and operators of the unit, as allocated under § 145.4(b)(4)(ii) or § 145.5(c)(2) for the third year after the year of the control period for which the deductions are or could have been made.
(3) NOx allowances, in the compliance account, as allocated to the unit under § 145.88(a).
(f) Each NOx allowance will be assigned a unique identification number that will include digits identifying the year for which the NOx allowance is allocated.
§ 145.54. Compliance.
(a) NOx allowance transfer deadline. The NOx allowances are available to be deducted for compliance with a unit's NOx budget emissions limitation for a control period in a given year only if the NOx allowances meet the following conditions:
(1) The allowances are allocated for a control period in a prior year or the same year.
(2) The allowances are held in the unit's compliance account, or the overdraft account of the source where the unit is located, as of the NOx allowance transfer deadline for that control period or are transferred into the compliance account or overdraft account by a NOx allowance transfer correctly submitted for recordation under § 145.60 (relating to submission of NOx allowance transfers) by the NOx allowance transfer deadline for that control period.
(b) Deductions for compliance.
(1) Following the recordation, in accordance with § 145.61 (relating to NOx transfer recordation), of NOx allowance transfers submitted for recordation in the unit's compliance account or the overdraft account of the source where the unit is located by the NOx allowance transfer deadline for a control period, the NOx Budget Administrator will deduct NOx allowances available under subsection (a) to cover the unit's NOx emissions (as determined in accordance with §§ 145.70--145.76 (relating to recordkeeping and reporting requirements)), or to account for actual heat input under § 145.42(e) (relating to NOx allowance allocations), for the control period:
(i) From the compliance account.
(ii) Only if no more NOx allowances available under subsection (a) remain in the compliance account, from the overdraft account. In deducting allowances for units at the source from the overdraft account, the NOx Budget Administrator will begin with the unit having the compliance account with the lowest NOx Allowance Tracking System account number and end with the unit having the compliance account with the highest NOx Allowance Tracking System account number (with account numbers sorted beginning with the left-most character and ending with the right-most character and the letter characters assigned values in alphabetical order and less than all numeric characters).
(2) NOx allowances will be deducted first under subparagraph (i) and then under subparagraph (ii):
(i) Until the number of NOx allowances deducted for the control period equals the number of tons of NOx emissions, determined in accordance with §§ 145.70--145.76, from the unit for the control period for which compliance is being determined, plus the number of NOx allowances required for deduction to account for actual heat input under § 145.42(e) for the control period.
(ii) Until no more NOx allowances available under subsection (a) remain in the respective account.
(c) Allowance identification.
(1) Identification of NOx allowances by serial number. The NOx authorized account representative for each compliance account may identify by serial number the NOx allowances to be deducted from the unit's compliance account under subsection (b), (d), (e) or (f). The identification shall be made in the compliance certification report submitted in accordance with § 145.30 (relating to compliance certification report).
(2) First-in, first-out. NOx allowances will be deducted for a control period from the compliance account, in the absence of an identification or in the case of a partial identification of NOx allowances by serial number under paragraph (1), or the overdraft account on a first-in, first-out (FIFO) accounting basis in the following order:
(i) Those NOx allowances that were allocated for the control period to the unit under §§ 145.40--145.43 or §§ 145.80--145.88 (relating to NOx allowance allocations; and opt-in process).
(ii) Those NOx allowances that were allocated for the control period to any unit and transferred and recorded in the account under §§ 145.60--145.62 (relating to NOx allowance transfers), in order of their date of recordation.
(iii) Those NOx allowances that were allocated for a prior control period to the unit under §§ 145.40--145.43 or §§ 145.80--145.88.
(iv) Those NOx allowances that were allocated for a prior control period to any unit and transferred and recorded in the account under §§ 145.60--145.62, in order of their date of recordation.
(d) Deductions for excess emissions.
(1) After making the deductions for compliance under subsection (b), the NOx Budget Administrator will deduct from the unit's compliance account or the overdraft account of the source where the unit is located a number of NOx allowances, allocated for a control period after the control period in which the unit has excess emissions, equal to three times the number of the unit's excess emissions.
(2) If the compliance account or overdraft account does not contain sufficient 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 either account.
(3) An allowance deduction required under subsection (d) does not affect the liability of the owners and operators of the NOx budget unit for any fine, penalty or assessment, or their obligation to comply with any other remedy, for the same violation, as ordered under the CAA or the act. The following guidelines will be followed in assessing fines, penalties or other obligations:
(i) For purposes of determining the number of days of violation, if a NOx budget unit has excess emissions for a control period, each day in the control period (153 days) constitutes a day in violation unless the owners and operators of the unit demonstrate that a lesser number of days should be considered.
(ii) Each ton of excess emissions is a separate violation.
(e) Deductions for units sharing a common stack. In the case of units sharing a common stack and having emissions that are not separately monitored or apportioned in accordance with §§ 145.70--145.76:
(1) The NOx authorized account representative of the units may identify the percentage of NOx allowances to be deducted from each unit's compliance account to cover the unit's share of NOx emissions from the common stack for a control period. The identification shall be made in the compliance certification report submitted in accordance with § 145.30.
(2) Notwithstanding subsection (b)(2)(i), the NOx Budget Administrator will deduct NOx allowances for each unit until the number of NOx allowances deducted equals the unit's identified percentage (under paragraph (1)) of the number of tons of NOx emissions, as determined in accordance with §§ 145.70--145.76, from the common stack for the control period for which compliance is being determined or, if no percentage is identified, an equal percentage for each unit, plus the number of allowances required for deduction to account for actual heat input under § 145.42(e) for the control period.
(f) Deduction of banked allowances. Each year starting in 2005, after the NOx Budget Administrator has completed the designation of banked allowances under § 145.55(b) (relating to banking) and before May 1 of the year, the NOx Budget Administrator will determine the extent to which banked NOx allowances otherwise available under subsection (a) are available for compliance in the control period for the current year as follows:
(1) The NOx Budget Administrator will determine the total number of banked NOx allowances held in compliance accounts, overdraft accounts or general accounts.
(2) If the total number of banked NOx allowances determined, under paragraph (1), to be held in compliance accounts, overdraft accounts or general accounts is less than or equal to 10% of the sum of the trading program budgets under § 145.40 (relating to State Trading Program budget) for all states for the control period, any banked NOx allowance may be deducted for compliance in accordance with subsections (a)--(e).
(3) If the total number of banked NOx allowances determined, under paragraph (1) to be held in compliance accounts, overdraft accounts or general accounts exceeds 10% of the sum of the trading program budgets under § 145.40 for Pennsylvania and the trading program budgets approved by the administrator for other states participating in the NOx budget trading program for the control period, any banked allowance may be deducted for compliance in accordance with subsections (a)--(e), except as follows:
(i) The NOx Budget Administrator will determine the following ratio: 0.10 multiplied by the sum of the trading program budgets under § 145.40 for all states for the control period and divided by the total number of banked NOx allowances determined, under paragraph (1), to be held in compliance accounts, overdraft accounts, or general accounts.
(ii) The NOx Budget Administrator will multiply the number of banked NOx allowances in each compliance account or overdraft account by the ratio determined under subparagraph (i). The resulting product is the number of banked NOx allowances in the account that may be deducted for compliance in accordance with subsections (a)--(e), except that, if the NOx allowances are used to make a deduction under subsection (b) or (e), two (rather than one), these NOx allowances shall authorize up to 1 ton of NOx emissions during the control period and shall be deducted for each deduction of one NOx allowance required under subsection (b) or (e).
(g) The NOx Budget Administrator will record in the appropriate compliance account or overdraft account all deductions from the account under subsection (b), (d) or (f).
§ 145.55. Banking.
NOx allowances may be banked for future use or transfer in a compliance account, an overdraft account or a general account, as follows:
(1) A NOx allowance that is held in a compliance account, an overdraft account or a general account will remain in the account until the NOx allowance is deducted or transferred under § 145.31, § 145.54, § 145.56, §§ 145.60--145.62 or §§ 145.80--145.88.
(2) The NOx Budget Administrator will designate, as a ''banked'' NOx allowance, a NOx allowance that remains in a compliance account, an overdraft account or a general account after deductions have been made for a given control period from the compliance account or overdraft account under § 145.54 (relating to compliance) (except deductions under § 145.54(d)(2)) and that were allocated for that control period or a control period in a prior year).
§ 145.56. Account error.
The NOx Budget Administrator may correct any error in any NOx Allowance Tracking System account. Within 10 business days of making the correction, the NOx Budget Administrator will notify the NOx authorized account representative for the account.
§ 145.57. Closing of general accounts.
(a) The NOx authorized account representative of a general account may instruct the NOx Budget Administrator to close the account by submitting a statement requesting deletion of the account from the NOx Allowance Tracking System and by correctly submitting for recordation under § 145.60 (relating to submission of NOx allowance transfers) an allowance transfer of all NOx allowances in the account to one or more other NOx Allowance Tracking System accounts.
(b) If a general account shows no activity for 1 year or more and does not contain any NOx allowances, the NOx Budget Administrator may notify the NOx authorized account representative for the account that the account will be closed and deleted from the NOx Allowance Tracking System following 20 business days after the notice is sent. The account will be closed after the 20-day period unless before the end of the 20-day period the NOx Budget Administrator receives a correctly submitted transfer of NOx allowances into the account under § 145.60 or a statement submitted by the NOx authorized account representative requesting that the account should not be closed.
NOx ALLOWANCE TRANSFERS § 145.60. Submission of NOx allowance transfers.
The NOx authorized account representatives seeking recordation of a NOx allowance transfer shall submit the transfer to the NOx Budget Administrator. To be considered correctly submitted, the NOx allowance transfer shall include the following elements in a format specified by the NOx Budget Administrator:
(1) The numbers identifying both the transferor and transferee accounts.
(2) A specification by serial number of each NOx allowance to be transferred.
(3) The printed name and signature of the NOx authorized account representative of the transferor account and the date signed.
§ 145.61. NOx transfer recordation.
(a) Within 5 business days of receiving a NOx allowance transfer, except as provided in subsection (b), the NOx Budget Administrator will record a NOx allowance transfer by moving each NOx allowance from the transferor account to the transferee account as specified by the request, if the following conditions are met (relating to submission of NOx allowance transfers):
(1) The transfer is correctly submitted under § 145.60 (relating to submission of NOx allowance transfers).
(2) The transferor account includes each NOx allowance identified by serial number in the transfer.
(b) A NOx allowance transfer that is submitted for recordation following the NOx allowance transfer deadline and that includes any NOx allowances allocated for a control period prior to or the same as the control period to which the NOx allowance transfer deadline applies will not be recorded until after completion of the process of recordation of NOx allowance allocations in § 145.53 (relating to recordation of NOx allowance allocations) in the same year as the NOx allowance transfer deadline.
(c) A NOx allowance transfer submitted for recordation that fails to meet the requirements of subsection (a) will not be recorded.
§ 145.62. Notification.
(a) Notification of recordation. Within 5 business days of recordation of a NOx allowance transfer under § 145.61 (relating to NOx transfer recordation), the NOx Budget Administrator will notify each party to the transfer. Notice will be given to the NOx authorized account representatives of both the transferor and transferee accounts.
(b) Notification of nonrecordation. Within 10 business days of receipt of a NOx allowance transfer that fails to meet the requirements of § 145.61(a), the NOx Budget Administrator will notify the NOx authorized account representatives of both accounts subject to the transfer of:
(1) A decision not to record the transfer.
(2) The reasons for the nonrecordation.
(c) Resubmission. Nothing in this section precludes the submission of a NOx allowance transfer for recordation following notification of nonrecordation.
RECORDKEEPING AND REPORTING REQUIREMENTS § 145.70. General monitoring requirements.
The owners and operators, and to the extent applicable, the NOx authorized account representative of a NOx budget unit, shall comply with the monitoring and reporting requirements as provided in this section and §§ 145.71--145.76 (relating to recordkeeping and reporting requirements) and in 40 CFR Part 75, Subpart H (relating to continuous emission monitoring). For purposes of complying with these requirements, the definitions in § 145.2 (relating to definitions) and in 40 CFR 72.2 (relating to definitions) apply, and the terms ''affected unit,'' ''designated representative'' and ''continuous emission monitoring system'' (or ''CEMS'') in 40 CFR Part 75 shall be replaced by the terms ''NOx budget unit,'' ''NOx authorized account representative'' and ''continuous emission monitoring system'' (or ''CEMS''), respectively, as defined in § 145.2. The owner and operator of a unit that is not a NOx budget unit but that is monitored under 40 CFR 75.72(b)(2)(ii) shall comply with the monitoring, recordkeeping and reporting requirements for a NOx budget unit under this subchapter.
(1) Requirements for installation, certification and data accounting. The owner or operator of each NOx budget unit shall meet the following requirements. These provisions also apply to a unit for which an application for a NOx budget opt-in approval is submitted and not denied or withdrawn, as provided in §§ 145.80--145.88 (relating to opt-in process).
(i) Install all monitoring systems required under this subchapter for monitoring NOx mass emissions. This includes all systems required to monitor NOx emission rate, NOx concentration, heat input rate and stack flow rate, in accordance with 40 CFR Part 75, Subpart H.
(ii) Install the monitoring systems for monitoring heat input.
(iii) Successfully complete the certification tests required under § 145.71 (relating to initial certification and recertification procedures) and meet all other provisions of this subchapter and 40 CFR Part 75 applicable to the monitoring systems under subparagraphs (i) and (ii).
(iv) Record, report and quality-assure the data from the monitoring systems under subparagraphs (i) and (ii).
(2) Compliance dates. The owner or operator shall meet the requirements of paragraph (1)(i)--(iii) on or before the following dates and shall record and report data on and after the following dates:
(i) NOx budget units for which the owner or operator intends to apply for early reduction credits under § 145.43(a) or (c) (relating to compliance supplement pool) shall comply with this section and §§ 145.71--145.76 by May 1, 2000, except that compliance with § 123.108 (relating to source emissions monitoring requirements) may be used as an alternative monitoring method for the 2000 control period. If the owner or operator of a NOx budget unit fails to meet this deadline, the owner or operator is not eligible to apply for early reduction credits under § 145.43(a) or (c) and is subject to the deadline under subparagraph (ii).
(ii) Except for NOx budget units under subparagraph (i), NOx budget units under § 145.4 (relating to applicability) that commence operation before January 1, 2002, shall comply with this section and §§ 145.71--145.76 by May 1, 2002.
(iii) NOx budget units under § 145.4(a)(1) that commence operation on or after January 1, 2002, and that report on an annual basis under § 145.74(d) (relating to recordkeeping and reporting) shall comply with the requirements of this section and §§ 145.71--145.76 by the later of the following dates:
(A) May 1, 2002.
(B) Ninety days after the date on which the unit commences commercial operation.
(iv) NOx budget units under § 145.4(a)(1) that commence operation on or after January 1, 2002, and that report on a control season basis under § 145.74(d)(2)(ii) shall comply with this section and §§ 145.71--145.76 within 90 days after the date on which the unit commences commercial operation, provided that this date is during a control period. If this date does not occur during a control period, the applicable deadline is May 1 immediately following this date.
(v) For the owner or operator of a NOx budget unit under § 145.4(a)(2) that commences operation on or after January 1, 2002, and that reports on an annual basis under § 145.72(d) (relating to out of control periods), by the later of the following dates:
(A) May 1, 2002.
(B) One hundred-eighty days after the date on which the unit commences operation.
(vi) For the owner or operator of a NOx budget unit under § 145.4(a)(2) that commences operation on or after January 1, 2002, and that reports on a control period basis under § 145.72(d)(2)(ii) (relating to out of control periods), by 180 days after the date on which the unit commences operation, provided that this date is during a control period. If this date does not occur during a control period, the applicable deadline is May 1 immediately following this date.
(vii) For a NOx budget unit with a new stack or flue for which construction is completed after the applicable deadline under subparagraph (i), (ii), (iii), (iv), (v) or (vi) or §§ 145.80--145.88 and that reports on an annual basis under § 145.72(d), 90 days after the date on which emissions first exit to the atmosphere through the new stack or flue.
(viii) For the owner or operator of a NOx budget unit that has a new stack or flue for which construction is completed after the applicable deadline under subparagraph (i), (ii), (iii), (iv), (v) or (vi) or §§ 145.80--145.88 and that reports on a control period basis under § 145.72(d)(2)(ii), by 90 days after the date on which emissions first exit to the atmosphere through the new stack or flue, provided that this date is during a control period. If this date does not occur during the control period, the applicable deadline is May 1 immediately following this date.
(ix) For a unit for which an application for a NOx budget opt-in approval is submitted and not denied or withdrawn, the compliance dates specified under §§ 145.80--145.88.
(3) Reporting data prior to initial certification. The owner or operator of a NOx budget unit under paragraph (2)(iii), (iv), (v) or (vi) shall determine, record and report NOx mass emissions, heat input rate, and any other values required to determine NOx mass emissions (for example, NOx emission rate and heat input rate, or NOx concentration and stack flow rate) in accordance with 40 CFR 75.70(g) (relating to NOx mass emissions provisions), from the date and hour that the unit starts operating until the date and hour on which the continuous emission monitoring system, excepted monitoring system under 40 CFR Part 75, Appendix D or E, or excepted monitoring system under 40 CFR 75.19 (relating to optional SO2, NOx, and CO2 emissions calculation for low mass emissions units) is provisionally certified.
(4) Prohibitions.
(i) An owner or operator of a NOx budget unit or a non-NOx budget unit may not use an alternative monitoring system, alternative reference method or another alternative for the required continuous emission monitoring system without having obtained prior written approval in accordance with § 145.75 (relating to petitions).
(ii) An owner or operator of a NOx budget unit or a non-NOx budget unit may not operate the unit so as to discharge, or allow to be discharged, NOx emissions to the atmosphere without accounting for these emissions in accordance with the applicable provisions of this subchapter and 40 CFR Part 75 except as provided for in 40 CFR 75.74 (relating to annual and ozone season monitoring and reporting requirements).
(iii) An owner or operator of a NOx budget unit or a non-NOx budget unit may not disrupt the continuous emission monitoring system, a portion thereof or another approved emission monitoring method, and thereby avoid monitoring and recording NOx mass emissions discharged into the atmosphere, except for periods of recertification or periods when calibration, quality assurance testing or maintenance is performed in accordance with the applicable provisions of this subchapter and 40 CFR Part 75 except as provided for in 40 CFR 75.74.
(iv) An owner or operator of a NOx budget unit or a non-NOx budget unit may not retire or permanently discontinue use of the continuous emission monitoring system, any component thereof, or any other approved emission monitoring system under this subchapter, except under one of the following circumstances:
(A) During the period that the unit is covered by an exemption under § 145.4(b) or § 145.5 (relating to applicability; and retired unit exemption) that is in effect.
(B) The owner or operator is monitoring emissions from the unit with another certified monitoring system approved, in accordance with the applicable provisions of this subchapter and 40 CFR Part 75, by the Department for use at that unit that provides emission data for the same pollutant or parameter as the retired or discontinued monitoring system.
(C) The NOx authorized account representative submits notification of the date of certification testing of a replacement monitoring system in accordance with § 145.71(b)(2) (relating to initial certification and recertification procedures).
(5) Notwithstanding the provisions of this section and §§ 145.71--145.76, sources that are also subject to the monitoring provisions of Chapter 139 (relating to sampling and testing) shall demonstrate compliance with those provisions in addition to the provisions of this section and §§ 145.71--145.76.
§ 145.71. Initial certification and recertification procedures.
(a) The owner or operator of a NOx budget unit that is subject to an acid rain emissions limitation shall comply with the initial certification and recertification procedures of 40 CFR Part 75 (relating to continuous emission monitoring), except that:
(1) If, prior to January 1, 1998, the Administrator approved a petition under 40 CFR 75.17(a) or (b) (relating to specific provisions for monitoring emissions from common, bypass, and multiple stacks for NOx emission rate) for apportioning the NOx emission rate measured in a common stack or a petition under 40 CFR 75.66 (relating to petitions to the Administrator) for an alternative to a requirement in 40 CFR 75.17, the NOx authorized account representative shall resubmit the petition to the Administrator under § 145.75(a) (relating to petitions) to determine if the approval applies under the NOx Budget Trading Program.
(2) For additional CEMS required under the common stack provisions in 40 CFR 75.72 (relating to determination of NOx mass emissions), or for NOx concentration CEMS used under 40 CFR 75.71(a)(2) (relating to specific provisions for monitoring NOx emission rate and heat input for the purpose of calculating NOx mass emissions), the owner or operator shall meet the requirements of subsection (b).
(b) The owner or operator of a NOx budget unit that is not subject to an acid rain emissions limitation shall comply with the following initial certification and recertification procedures. The owner or operator of a unit that qualifies to use the low mass emissions excepted monitoring methodology under 40 CFR 75.19 (relating to optional SO2, NOx and CO2 emissions calculation for low mass emissions unit) or that qualifies to use an alternative monitoring system under 40 CFR Part 75, Subpart E (relating to alternative monitoring systems) shall comply with the following procedures, as modified by subsection (c) or (d). The owner or operator of a NOx budget unit that is subject to an acid rain emissions limitation, but requires additional CEMS under the common stack provisions in 40 CFR 75.72, or that uses a NOx concentration CEMS under 40 CFR 75.71(a)(2) also shall comply with the following initial certification and recertification procedures:
(1) Requirements for initial certification. The owner or operator shall ensure that each monitoring system required by 40 CFR Part 75, Subpart H (relating to NOx mass emissions provisions) (which includes the automated data acquisition and handling system) successfully completes all of the initial certification testing required under 40 CFR 75.20 (relating to certification and recertification procedures). The owner or operator shall ensure that the applicable certification tests are successfully completed by the deadlines specified in § 145.70(2) (relating to general monitoring requirements). In addition, whenever the owner or operator installs a monitoring system to meet the requirements of this subchapter in a location where no monitoring system was previously installed, initial certification according to 40 CFR 75.20 is required.
(2) Requirements for recertification. Whenever the owner or operator makes a replacement, modification or change in a certified monitoring system that may significantly affect the ability of the system to accurately measure or record NOx mass emissions or heat input rate or to meet the requirements of 40 CFR 75.21 (relating to quality assurance and quality control requirements) or 40 CFR Part 75, Appendix B (relating to quality assurance and quality control), the owner or operator shall recertify the monitoring system according to 40 CFR 75.20(b). Whenever the owner or operator makes a replacement, modification or change to the flue gas handling system or the unit's operation that may significantly change the stack flow or concentration profile, the owner or operator shall recertify the continuous emissions monitoring system according to 40 CFR 75.20(b). Examples of changes which require recertification include: replacement of the analyzer, change in location or orientation of the sampling probe or site or changing of flow rate monitor polynomial coefficients.
(3) Certification approval process for initial certifications and recertification.
(i) Notification of certification. The NOx authorized account representative shall submit to the Department and the appropriate EPA regional office a written notice of the dates of certification in accordance with § 145.73 (relating to notification).
(ii) Certification application. The NOx authorized account representative shall submit to the Department and the appropriate EPA regional office a certification application for each monitoring system required under 40 CFR Part 75 Subpart H. A complete certification application shall include the information specified in 40 CFR Part 75 Subpart H.
(iii) Provisional certification. Except for units using the low mass emission excepted methodology under 40 CFR 75.19, the provisional certification date for a monitor shall be determined using the procedures in 40 CFR 75.20(a)(3). A provisionally certified monitor may be used under the NOx Budget Trading Program for a period not to exceed 120 days after receipt by the Department of the complete certification application for the monitoring system or component thereof under subparagraph (ii). Data measured and recorded by the provisionally certified monitoring system or component thereof, in accordance with 40 CFR Part 75, will be considered valid quality-assured data (retroactive to the date and time of provisional certification), if the Department does not invalidate the provisional certification by issuing a notice of disapproval within 120 days of receipt of the complete certification application by the Department.
(iv) Certification application formal approval process. The Department will issue a written notice of approval or disapproval of the certification application to the owner or operator within 120 days after receipt of the complete certification application under subparagraph (ii). If the Department does not issue the notice within the 120-day period, each monitoring system which meets the applicable performance requirements of 40 CFR Part 75 and is included in the certification application will be deemed certified for use under the NOx Budget Trading Program.
(A) Approval notice. If the certification application is complete and shows that each monitoring system meets the applicable performance requirements of 40 CFR Part 75, the Department will issue a written notice of approval of the certification application within 120 days of receipt.
(B) Incomplete application notice. A certification application will be considered complete when all of the applicable information required to be submitted under subparagraph (ii) has been received by the Department. If the certification application is not complete, the Department will issue a written notice of incompleteness that sets a date by which the NOx authorized account representative must submit the additional information required to complete the certification application. If the NOx authorized account representative does not comply with the notice of incompleteness by the specified date, then the Department may issue a notice of disapproval under clause (C). The 120-day review period may not begin prior to receipt of a complete certification application.
(C) Disapproval notice. If the certification application shows that any monitoring system or component thereof does not meet the performance requirements of this section and §§ 145.70 and 145.72--145.76, or if the certification application is incomplete and the requirement for disapproval under clause (B) has been met, the Department will issue a written notice of disapproval of the certification application. Upon issuance of the notice of disapproval, the provisional certification is invalidated by the Department and the data measured and recorded by each uncertified monitoring system or component thereof will not be considered valid quality-assured data beginning with the date and hour of provisional certification (as defined under 40 CFR 75.20(a)(3)). the owner or operator shall follow the procedures for loss of certification in subparagraph (v) for each monitoring system or component thereof which is disapproved for initial certification.
(D) Audit decertification. The Department may issue a notice of disapproval of the certification status of a monitor in accordance with § 145.72(b).
(v) Procedures for loss of certification. If the Department issues a notice of disapproval of a certification application under subparagraph (iv)(C) or a notice of disapproval of certification status under subparagraph (iv)(D), the following apply:
(A) The owner or operator shall substitute the following values, for each hour of unit operation during the period of invalid data specified under 40 CFR 75.20(a)(4)(iii), (b)(5), (h)(4) or 75.21(e) and continuing until the time, date and hour specified under 40 CFR 75.20(a)(5)(i):
(I) For units using or intending to monitor for NOx emission rate and heat input rate or for units using the low mass emission excepted methodology under 40 CFR 75.19, the maximum potential NOx emission rate and the maximum potential hourly heat input of the unit.
(II) For units intending to monitor for NOx mass emissions using a NOx pollutant concentration monitor and a flow monitor, the maximum potential concentration of NOx and the maximum potential flow rate of the unit under 40 CFR Part 75, Appendix A Section 2 (relating to instrument span).
(B) The NOx authorized account representative shall submit a notification of certification retest dates and a new certification application in accordance with subparagraphs (i) and (ii).
(C) The owner or operator shall repeat all certification tests or other requirements that were failed by the monitoring system, as indicated in the Department's notice of disapproval, within 30 unit operating days after the date of issuance of the notice of disapproval.
(c) This subsection applies to initial certification and recertification procedures for low mass emission units using the excepted methodologies under 40 CFR 75.19. The owner or operator of a gas-fired or oil-fired unit using the low mass emissions excepted methodology under 40 CFR 75.19 and not subject to an acid rain emission limitation shall meet the applicable general operating requirements of 40 CFR 75.10 (relating to general operating requirements) and the applicable requirements of 40 CFR 75.19. The owner or operator of such a unit shall also meet the applicable certification and recertification procedures of subsection (b), except that the excepted methodology shall be deemed provisionally certified for use under the NOx Budget Trading Program, as of one of the following dates:
(i) For a unit that does not have monitoring equipment initially certified or recertified for the NOx budget trading program as of the date on which the NOx authorized account representative submits the certification application under 40 CFR 75.19, starting on the date of the submission until the completion of the period for the Department's review.
(ii) For a unit that has monitoring equipment initially certified or recertified for the NOx Budget Trading Program as of the date on which the NOx authorized account representative submits the certification application under 40 CFR 75.19 for the unit and that reports data on an annual basis under § 145.74(d) (relating to recordkeeping and reporting), starting January 1 of the year after the year of the submission until the completion of the period for the Department's review.
(iii) For a unit that has monitoring equipment initially certified or recertified for the NOx budget trading program as of the date on which the NOx authorized account representative submits the certification application under 40 CFR 75.19 for the unit and that reports on a control season basis under § 145.74(d), starting May 1 of the control period after the year of the submission until the completion of the period for the Department's review.
(d) This subsection applies to certification/recertification procedures for alternative monitoring systems. The NOx authorized account representative representing the owner or operator of each unit not subject to an acid rain emissions limitation applying to monitor using an alternative monitoring system approved by the NOx Budget Administrator under 40 CFR Part 75, Subpart E (relating to alternative monitoring systems) shall apply for certification to the Department prior to use of the system under the NOx Trading Program. The NOx authorized account representative shall apply for recertification following a replacement, modification or change according to the procedures in subsection (b). The owner or operator of an alternative monitoring system shall comply with the notification and application requirements for certification according to the procedures specified in subsection (b) and 40 CFR 75.20(f).
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