A unit that is in the State, is not a NOX Budget unit under § 96.4, vents all of its emissions to a stack, and is operating, may qualify, under this subpart, to become a NOX Budget opt-in source. A unit that is a NOX Budget unit, is covered by a retired unit exemption under § 96.5 that is in effect, or is not operating is not eligible to become a NOX Budget opt-in source.

Except otherwise as provided in this part, a NOX Budget opt-in source shall be treated as a NOX Budget unit for purposes of applying subparts A through H of this part.

A unit for which an application for a NOX Budget opt-in permit is submitted and not denied or withdrawn, or a NOX Budget opt-in source, located at the same source as one or more NOX Budget units, shall have the same NOX authorized account representative as such NOX Budget units.

(a) Applying for initial NOX Budget opt-in permit. In order to apply for an initial NOX Budget opt-in permit, the NOX authorized account representative of a unit qualified under § 96.80 may submit to the permitting authority at any time, except as provided under § 96.86(g):

(1) A complete NOX Budget permit application under § 96.22;

(2) A monitoring plan submitted in accordance with subpart H of this part; and

(3) A complete account certificate of representation under § 96.13, if no NOX authorized account representative has been previously designated for the unit.

(b) Duty to reapply. The NOX authorized account representative of a NOX Budget opt-in source shall submit a complete NOX Budget permit application under § 96.22 to renew the NOX Budget opt-in permit in accordance with § 96.21(c) and, if applicable, an updated monitoring plan in accordance with subpart H of this part.

The permitting authority will issue or deny a NOX Budget opt-in permit for a unit for which an initial application for a NOX Budget opt-in permit under § 96.83 is submitted, in accordance with § 96.20 and the following:

(a) Interim review of monitoring plan. The permitting authority will determine, on an interim basis, the sufficiency of the monitoring plan accompanying the initial application for a NOX Budget opt-in permit under § 96.83. A monitoring plan is sufficient, for purposes of interim review, if the plan appears to contain information demonstrating that the NOX emissions rate and heat input of the unit are monitored and reported in accordance with subpart H of this part. A determination of sufficiency shall not be construed as acceptance or approval of the unit's monitoring plan.

(b) If the permitting authority determines that the unit's monitoring plan is sufficient under paragraph (a) of this section and after completion of monitoring system certification under subpart H of this part, the NOX emissions rate and the heat input of the unit shall be monitored and reported in accordance with subpart H of this part for one full control period during which monitoring system availability is not less than 90 percent and during which the unit is in full compliance with any applicable State or Federal emissions or emissions-related requirements. Solely for purposes of applying the requirements in the prior sentence, the unit shall be treated as a “NOX Budget unit” prior to issuance of a NOX Budget opt-in permit covering the unit.

(c) Based on the information monitored and reported under paragraph (b) of this section, the unit's baseline heat rate shall be calculated as the unit's total heat input (in mmBtu) for the control period and the unit's baseline NOX emissions rate shall be calculated as the unit's total NOX emissions (in lb) for the control period divided by the unit's baseline heat rate.

(d) After calculating the baseline heat input and the baseline NOX emissions rate for the unit under paragraph (c) of this section, the permitting authority will serve a draft NOX Budget opt-in permit on the NOX authorized account representative of the unit.

(e) Confirmation of intention to opt-in. Within 20 days after the issuance of the draft NOX Budget opt-in permit, the NOX authorized account representative of the unit must submit to the permitting authority a confirmation of the intention to opt in the unit or a withdrawal of the application for a NOX Budget opt-in permit under § 96.83. The permitting authority will treat the failure to make a timely submission as a withdrawal of the NOX Budget opt-in permit application.

(f) Issuance of draft NOX Budget opt-in permit. If the NOX authorized account representative confirms the intention to opt-in the unit under paragraph (e) of this section, the permitting authority will issue the draft NOX Budget opt-in permit in accordance with § 96.20.

(g) Notwithstanding paragraphs (a) through (f) of this section, if at any time before issuance of a draft NOX Budget opt-in permit for the unit, the permitting authority determines that the unit does not qualify as a NOX Budget opt-in source under § 96.80, the permitting authority will issue a draft denial of a NOX Budget opt-in permit for the unit in accordance with § 96.20.

(h) Withdrawal of application for NOX Budget opt-in permit. A NOX authorized account representative of a unit may withdraw its application for a NOX Budget opt-in permit under § 96.83 at any time prior to the issuance of the final NOX Budget opt-in permit. Once the application for a NOX Budget opt-in permit is withdrawn, a NOX authorized account representative wanting to reapply must submit a new application for a NOX Budget permit under § 96.83.

(i) Effective date. The effective date of the initial NOX Budget opt-in permit shall be May 1 of the first control period starting after the issuance of the initial NOX Budget opt-in permit by the permitting authority. The unit shall be a NOX Budget opt-in source and a NOX Budget unit as of the effective date of the initial NOX Budget opt-in permit.

(a) Each NOX Budget opt-in permit (including any draft or proposed NOX Budget opt-in permit, if applicable) will contain all elements required for a complete NOX Budget opt-in permit application under § 96.22 as approved or adjusted by the permitting authority.

(b) Each NOX Budget opt-in permit is deemed to incorporate automatically the definitions of terms under § 96.2 and, upon recordation by the Administrator under subpart F, G, or I of this part, every allocation, transfer, or deduction of NOX allowances to or from the compliance accounts of each NOX Budget opt-in source covered by the NOX Budget opt-in permit or the overdraft account of the NOX Budget source where the NOX Budget opt-in source is located.

(a) Requesting withdrawal. To withdraw from the NOX Budget Trading Program, the NOX authorized account representative of a NOX Budget opt-in source shall submit to the permitting authority a request to withdraw effective as of a specified date prior to May 1 or after September 30. The submission shall be made no later than 90 days prior to the requested effective date of withdrawal.

(b) Conditions for withdrawal. Before a NOX Budget opt-in source covered by a request under paragraph (a) of this section may withdraw from the NOX Budget Trading Program and the NOX Budget opt-in permit may be terminated under paragraph (e) of this section, the following conditions must be met:

(1) For the control period immediately before the withdrawal is to be effective, the NOX authorized account representative must submit or must have submitted to the permitting authority an annual compliance certification report in accordance with § 96.30.

(2) If the NOX Budget opt-in source has excess emissions for the control period immediately before the withdrawal is to be effective, the Administrator will deduct or has deducted from the NOX Budget opt-in source's compliance account, or the overdraft account of the NOX Budget source where the NOX Budget opt-in source is located, the full amount required under § 96.54(d) for the control period.

(3) After the requirements for withdrawal under paragraphs (b)(1) and (2) of this section are met, the Administrator will deduct from the NOX Budget opt-in source's compliance account, or the overdraft account of the NOX Budget source where the NOX Budget opt-in source is located, NOX allowances equal in number to and allocated for the same or a prior control period as any NOX allowances allocated to that source under § 96.88 for any control period for which the withdrawal is to be effective. The Administrator will close the NOX Budget opt-in source's compliance account and will establish, and transfer any remaining allowances to, a new general account for the owners and operators of the NOX Budget opt-in source. The NOX authorized account representative for the NOX Budget opt-in source shall become the NOX authorized account representative for the general account.

(c) A NOX Budget opt-in source that withdraws from the NOX Budget Trading Program shall comply with all requirements under the NOX Budget Trading Program concerning all years for which such NOX Budget opt-in source was a NOX Budget opt-in source, even if such requirements arise or must be complied with after the withdrawal takes effect.

(d) Notification. (1) After the requirements for withdrawal under paragraphs (a) and (b) of this section are met (including deduction of the full amount of NOX allowances required), the permitting authority will issue a notification to the NOX authorized account representative of the NOX Budget opt-in source of the acceptance of the withdrawal of the NOX Budget opt-in source as of a specified effective date that is after such requirements have been met and that is prior to May 1 or after September 30.

(2) If the requirements for withdrawal under paragraphs (a) and (b) of this section are not met, the permitting authority will issue a notification to the NOX authorized account representative of the NOX Budget opt-in source that the NOX Budget opt-in source's request to withdraw is denied. If the NOX Budget opt-in source's request to withdraw is denied, the NOX Budget opt-in source shall remain subject to the requirements for a NOX Budget opt-in source.

(e) Permit amendment. After the permitting authority issues a notification under paragraph (d)(1) of this section that the requirements for withdrawal have been met, the permitting authority will revise the NOX Budget permit covering the NOX Budget opt-in source to terminate the NOX Budget opt-in permit as of the effective date specified under paragraph (d)(1) of this section. A NOX Budget opt-in source shall continue to be a NOX Budget opt-in source until the effective date of the termination.

(f) Reapplication upon failure to meet conditions of withdrawal. If the permitting authority denies the NOX Budget opt-in source's request to withdraw, the NOX authorized account representative may submit another request to withdraw in accordance with paragraphs (a) and (b) of this section.

(g) Ability to return to the NOX Budget Trading Program. Once a NOX Budget opt-in source withdraws from the NOX Budget Trading Program and its NOX Budget opt-in permit is terminated under this section, the NOX authority account representative may not submit another application for a NOX Budget opt-in permit under § 96.83 for the unit prior to the date that is 4 years after the date on which the terminated NOX Budget opt-in permit became effective.

(a) Notification. When a NOX Budget opt-in source becomes a NOX Budget unit under § 96.4, the NOX authorized account representative shall notify in writing the permitting authority and the Administrator of such change in the NOX Budget opt-in source's regulatory status, within 30 days of such change.

(b) Permitting authority's and Administrator's action. (1)(i) When the NOX Budget opt-in source becomes a NOX Budget unit under § 96.4, the permitting authority will revise the NOX Budget opt-in source's NOX Budget opt-in permit to meet the requirements of a NOX Budget permit under § 96.23 as of an effective date that is the date on which such NOX Budget opt-in source becomes a NOX Budget unit under § 96.4.

(ii)(A) The Administrator will deduct from the compliance account for the NOX Budget unit under paragraph (b)(1)(i) of this section, or the overdraft account of the NOX Budget source where the unit is located, NOX allowances equal in number to and allocated for the same or a prior control period as:

(1) Any NOX allowances allocated to the NOX Budget unit (as a NOX Budget opt-in source) under § 96.88 for any control period after the last control period during which the unit's NOX Budget opt-in permit was effective; and

(2) If the effective date of the NOX Budget permit revision under paragraph (b)(1)(i) of this section is during a control period, the NOX allowances allocated to the NOX Budget unit (as a NOX Budget opt-in source) under § 96.88 for the control period multiplied by the ratio of the number of days, in the control period, starting with the effective date of the permit revision under paragraph (b)(1)(i) of this section, divided by the total number of days in the control period.

(B) The NOX authorized account representative shall ensure that the compliance account of the NOX Budget unit under paragraph (b)(1)(i) of this section, or the overdraft account of the NOX Budget source where the unit is located, includes the NOX allowances necessary for completion of the deduction under paragraph (b)(1)(ii)(A) of this section. If the compliance account or overdraft account does not contain sufficient NOX allowances, the 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.

(iii)(A) For every control period during which the NOX Budget permit revised under paragraph (b)(1)(i) of this section is effective, the NOX Budget unit under paragraph (b)(1)(i) of this section will be treated, solely for purposes of NOX allowance allocations under § 96.42, as a unit that commenced operation on the effective date of the NOX Budget permit revision under paragraph (b)(1)(i) of this section and will be allocated NOX allowances under § 96.42.

(B) Notwithstanding paragraph (b)(1)(iii)(A) of this section, if the effective date of the NOX Budget permit revision under paragraph (b)(1)(i) of this section is during a control period, the following number of NOX allowances will be allocated to the NOX Budget unit under paragraph (b)(1)(i) of this section under § 96.42 for the control period: the number of NOX allowances otherwise allocated to the NOX Budget unit under § 96.42 for the control period multiplied by the ratio of the number of days, in the control period, starting with the effective date of the permit revision under paragraph (b)(1)(i) of this section, divided by the total number of days in the control period.

(2)(i) When the NOX authorized account representative of a NOX Budget opt-in source does not renew its NOX Budget opt-in permit under § 96.83(b), the Administrator will deduct from the NOX Budget opt-in unit's compliance account, or the overdraft account of the NOX Budget source where the NOX Budget opt-in source is located, NOX allowances equal in number to and allocated for the same or a prior control period as any NOX allowances allocated to the NOX Budget opt-in source under § 96.88 for any control period after the last control period for which the NOX Budget opt-in permit is effective. The NOX authorized account representative shall ensure that the NOX Budget opt-in source's compliance account or the overdraft account of the NOX Budget source where the NOX Budget opt-in source is located includes the NOX allowances necessary for completion of such deduction. If the compliance account or overdraft account does not contain sufficient NOX allowances, the 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.

(ii) After the deduction under paragraph (b)(2)(i) of this section is completed, the Administrator will close the NOX Budget opt-in source's compliance account. If any NOX allowances remain in the compliance account after completion of such deduction and any deduction under § 96.54, the Administrator will close the NOX Budget opt-in source's compliance account and will establish, and transfer any remaining allowances to, a new general account for the owners and operators of the NOX Budget opt-in source. The NOX authorized account representative for the NOX Budget opt-in source shall become the NOX authorized account representative for the general account.

(a) NOX allowance allocation. (1) By December 31 immediately before the first control period for which the NOX Budget opt-in permit is effective, the permitting authority will allocate NOX allowances to the NOX Budget opt-in source and submit to the Administrator the allocation for the control period in accordance with paragraph (b) of this section.

(2) By no later than December 31, after the first control period for which the NOX Budget opt-in permit is in effect, and December 31 of each year thereafter, the permitting authority will allocate NOX allowances to the NOX Budget opt-in source, and submit to the Administrator allocations for the next control period, in accordance with paragraph (b) of this section.

(b) For each control period for which the NOX Budget opt-in source has an approved NOX Budget opt-in permit, the NOX Budget opt-in source will be allocated NOX allowances in accordance with the following procedures:

(1) The heat input (in mmBtu) used for calculating NOX allowance allocations will be the lesser of:

(i) The NOX Budget opt-in source's baseline heat input determined pursuant to § 96.84(c); or

(ii) The NOX Budget opt-in source's heat input, as determined in accordance with subpart H of this part, for the control period in the year prior to the year of the control period for which the NOX allocations are being calculated.

(2) The permitting authority will allocate NOX allowances to the NOX Budget opt-in source in an amount equaling the heat input (in mmBtu) determined under paragraph (b)(1) of this section multiplied by the lesser of:

(i) The NOX Budget opt-in source's baseline NOX emissions rate (in lb/mmBtu) determined pursuant to § 96.84(c); or

(ii) The most stringent State or Federal NOX emissions limitation applicable to the NOX Budget opt-in source during the control period.