§ 145.4. Applicability.
(a) 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) Electric generating units.
(i) For units that commenced operation before January 1, 1997, a unit serving a generator during 1995 or 1996 that had a nameplate capacity greater than 25 MWe and produced electricity for sale under firm contract to the electric grid.
(ii) For units that commenced operation on or after January 1, 1997, and before January 1, 1999, a unit serving a generator during 1997 or 1998 that had a nameplate capacity greater than 25 MWe and produced electricity for sale under firm contract to the electric grid.
(iii) For units that commenced operation on or after January 1, 1999, a unit serving a generator at any time that has a nameplate capacity greater than 25 MWe and produces electricity for sale.
(2) Nonelectric generating units.
(i) For units that commenced operation before January 1, 1997, a unit that has a maximum design heat input greater than 250 mmBtu/hr and that did not serve during 1995 or 1996 a generator producing electricity for sale under firm contract to the electric grid.
(ii) For units that commenced operation on or after January 1, 1997, and before January 1, 1999, a unit that has a maximum design heat input greater than 250 MMBtu/hr and that did not serve during 1997 or 1998 a generator producing electricity for sale under firm contract to the electric grid.
(iii) For units that commenced operation on or after January 1, 1999, a unit with a maximum design heat input greater than 250 mmBtu/hr that does one of the following:
(A) At no time serves a generator producing electricity for sale.
(B) At any time serves a generator producing electricity for sale, if the generator has a nameplate capacity of 25 MWe or less and has the potential to use no more than 50% of the potential electrical output capacity of the unit.
(b) Twenty-five ton exemption.
(1) Notwithstanding subsection (a), a unit under subsection (a)(1) or (2) that has a Federally enforceable permit that includes a NOx emission limitation restricting NOx emissions during a control period to 25 tons or less and that includes the special provisions in subsection (b)(4) shall be exempt from the requirements of the NOx Budget Trading Program, except for subsection (a), this paragraph and § § 145.2, 145.3, 145.7, 145.40—145.43, 145.50—145.57 and 145.60—145.62. The NOx emission limitation under this paragraph shall restrict NOx emissions during the control period by limiting unit operating hours or heat input. The restriction on unit operating hours shall be calculated by dividing the permit restriction tonnage by the unit’s maximum potential hourly NOx mass emissions, which shall equal the unit’s maximum rated hourly heat input multiplied by the highest default NOx emission rate otherwise applicable to the unit under 40 CFR 75.19 (relating to optional emissions calculation for low mass emissions units). The restriction on heat input shall be calculated by dividing the permit restriction tonnage by the unit’s highest default NOx emission rate otherwise applicable to the unit under 40 CFR 75.19.
(2) The exemption under paragraph (1) shall become effective under one of the following subparagraphs as follows:
(i) The exemption shall become effective on the date on which the NOx emission limitation and the special provisions in the permit under paragraph (1) become final.
(ii) If the NOx emission limitation and the special provisions in the permit under paragraph (1) become final during a control period and after the first date on which the unit operates during that control period, the exemption shall become effective on May 1 of the control period, provided that the NOx emission limitation and the special provisions apply to the unit as of the first date of operation. If the NOx emission limitation and special provisions do not apply to the unit as of the first date of operation, the exemption under paragraph (1) shall become effective on October 1 of the year during which the NOx emission limitation and the special provisions become final.
(3) The Department will provide notice to the NOx Budget Administrator of the issuance of the permit and, upon request, a copy of the permit.
(4) Special provisions are as follows:
(i) A unit exempt under paragraph (1) shall comply with the restriction on unit operating hours described in paragraph (1) during the control period each year.
(ii) The Department will allocate NOx allowances to the unit under § § 145.41(a)—(c) and 145.42(a)—(c) (relating to timing requirements for NOx allowance allocations; and NOx allowance allocations) for each control period for which the unit is allocated NOx allowances under § § 145.41(a)—(c) and 145.42(a)—(c) the following shall occur:
(A) The owners and operators of the unit shall specify a general account, in which the NOx Budget Administrator will record the NOx allowances.
(B) After the NOx Budget Administrator records NOx allowances under § § 145.41(a)—(c) and 145.42(a)—(c), the NOx Budget Administrator will deduct, from the general account specified in clause (A), NOx allowances that are allocated for the same or a prior control period as the NOx allowances allocated to the unit under § § 145.41(a)—(c) and 145.42(a)—(c) and that equal the NOx emission limitation (in tons of NOx) on which the unit’s exemption under paragraph (1) is based. The NOx authorized account representative shall ensure that the general account contains the NOx allowances necessary for completion of the deduction.
(iii) A unit exempt under subsection (b) shall report hours of unit operation during the control period in each year to the Department by November 1 of that year.
(iv) For 5 years from the date the records are created, the owners and operators of a unit exempt under paragraph (1) shall retain records demonstrating that the conditions of the Federally enforceable permit under paragraph (1) were met, including the restriction on unit operating hours. 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 administrator. The owners and operators bear the burden of proof that the unit met the restriction on unit operating hours.
(v) The owners and operators and, to the extent applicable, the NOx authorized account representative of a unit exempt under paragraph (1) shall comply with the requirements of the NOx Budget Trading Program concerning all periods for which the exemption is not in effect, even if these requirements arise, or must be complied with, after the exemption takes effect.
(vi) On the earlier of the following dates, a unit exempt under paragraph (1) shall lose its exemption when one of the following occurs:
(A) The date on which the restriction on unit operating hours described in paragraph (1) is removed from the unit’s Federally enforceable permit or otherwise becomes no longer applicable to any control period starting in 2003.
(B) The first date on which the unit fails to comply, or with regard to which the owners and operators fail to meet their burden of proving that the unit is complying, with the restriction on unit operating hours described in paragraph (1) during any control period starting in 2003.
(vii) A unit that loses its exemption in accordance with subparagraph (vi) shall be subject to this subchapter. For the purpose of allocating allowances under § § 145.40—145.43 (relating to State trading program budget) and applying monitoring requirements under § § 145.70—145.76 (relating to recordkeeping and reporting requirements), the unit shall be treated as commencing operation and, if the unit is covered by subsection (a)(1), commencing commercial operation on the date the unit loses its exemption.
(viii) a unit that is exempt under paragraph (1) is not eligible to be a NOx budget opt-in unit under § § 145.80—145.88 (relating to opt-in process).
Cross References This section cited in 25 Pa. Code § 145.2 (relating to definitions); 25 Pa. Code § 145.5 (relating to retired unit exemption); 25 Pa. Code § 145.8 (relating to transition to CAIR NOx trading programs); 25 Pa. Code § 145.40 (relating to State Trading Program budget); 25 Pa. Code § 145.42 (relating to NOx allowance allocations); 25 Pa. Code § 145.53 (relating to recordation of NOx allowance allocations); 25 Pa. Code § 145.70 (relating to general monitoring requirements); 25 Pa. Code § 145.80 (relating to applicability for opt-in sources); 25 Pa. Code § 145.81 (relating to opt-in source general provisions); 25 Pa. Code § 145.83 (relating to applying for a NOx budget opt-in approval); and 25 Pa. Code § 145.87 (relating to opt-in unit change in regulatory status).
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