§ 123.116. Source opt-in provisions.
(a) A person who owns, operates, leases or controls a non-NOx affected source located in this Commonwealth may apply to the Department to opt-in that source to become a NOx affected source. For replacement sources, all sources to which production may be shifted to shall be opted-in together.
(b) A source which began operations without emission reduction credits transferred from a NOx affected source may become a NOx affected source under the following conditions:
(1) Submission of an opt-in application to the Department, including:
(i) Documentation of baseline NOx allowance control period emissions which shall be the average of the actual emissions for the preceding two consecutive NOx allowance control periods. The Department may approve selection of an alternative two consecutive NOx allowance control periods within the 5 years preceding the opt-in application if the preceding two control periods are not representative of normal operations. The baseline may not exceed applicable emission limits.
(ii) Evidence that the requirements of § § 123.101—123.115, 123.117—123.120 and this section (relating to NOx allowance requirements) can be complied with, including, submission of an emission monitoring plan, designation of an authorized account representative, and that the source is not on the compliance docket established under section 7.1 of the act (35 P. S. § 4005).
(2) Submission of NOx allowances established under paragraph (1)(i) or subsection (c) by the Department to the NOx budget administrator.
(c) A source which began operations with emission reduction credits from a NOx affected source may become a NOx affected source by complying with subsection (b)(1). To operate the source, NOx allowances shall be acquired by the owner or operator from those available in the NATS.
(d) Opt-in sources which opted-in under subsection (b) and which shutdown or curtail operations during any NOx allowance control period within the 5-calendar years after opting-in shall, prior to January 31 following the shutdown or curtailment, surrender to the Department NOx allowances for the current NOx allowance control period equivalent to the difference resulting from the reduction in utilization from the source’s baseline operations as established in subsection (b)(1)(i) between the NOx allowance control period allowance allocation and the emissions reported in accordance with § 123.109 (relating to source emissions reporting requirements). NOx allocations for future NOx allocation control periods shall also be surrendered. NOx allowances which were allocated for any preceding NOx allowance control period which were not used (banked) may not be surrendered. Surrendered NOx allowances shall be retired from the NATS and NOx budget except that upon request by the source owner or operator, the Department may reallocate the NOx allowances to a qualifying replacement source.
(e) Opt-in sources which remain in operation for 5- calendar years from the date of opt-in shall have a new baseline and allowance allocation set in accordance with the procedure in subsection (b)(1)(i). This baseline may not exceed the opt-in baseline. Thereafter, the source is not subject to this section.
(f) Once electing to opt-in, a source may not revert to a non-NOx affected source unless it is shut down.
Source The provisions of this § 123.117 adopted October 31, 1997, effective November 1, 1997, 27 Pa.B. 5683.
Cross References This section cited in 25 Pa. Code § 123.101 (relating to purpose); 25 Pa. Code § 123.103 (relating to general NOx allowance provisions); 25 Pa. Code § 123.108 (relating to source emissions monitoring requirements); 25 Pa. Code § 123.111 (relating to failure to meet source compliance requirements); 25 Pa. Code § 123.112 (relating to source operating permit provision requirements); 25 Pa. Code § 123.113 (relating to source recordkeeping requirements); 25 Pa. Code § 123.114 (relating to general NOx allocation provisions); 25 Pa. Code § 123.115 (relating to initial NOx allowance NOx allocations); 25 Pa. Code § 123.117 (relating to new NOx affected source provisions); 25 Pa. Code § 123.118 (relating to emission reduction credit provisions); 25 Pa. Code § 123.120 (relating to audit); 25 Pa. Code § 123.121 (relating to NOx Allowance Program transition); and 25 Pa. Code § 145.43 (relating to compliance supplement pool).
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