[Code of Federal Regulations]
[Title 40, Volume 18]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR96.2]

[Page 667-672]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
 
PART 96--NOX Budget Trading Program for State Implementation 
Plans--Table of Contents
 
   Subpart A--NOX Budget Trading Program General Provisions
 
Sec. 96.2  Definitions.

    The terms used in this part shall have the meanings set forth in 
this section as follows:
    Account certificate of representation means the completed and signed 
submission required by subpart B of this part for certifying the 
designation of a NOX authorized account representative for a 
NOX Budget source or a group of identified NOX 
Budget sources who is authorized to represent the owners and operators 
of such source or sources and of the NOX Budget units at such 
source or sources with regard to matters under the NOX Budget 
Trading Program.
    Account number means the identification number given by the 
Administrator to each NOX Allowance Tracking System account.
    Acid Rain emissions limitation means, as defined in Sec. 72.2 of 
this chapter, a limitation on emissions of sulfur dioxide or nitrogen 
oxides under the Acid Rain Program under title IV of the CAA.
    Administrator means the Administrator of the United States 
Environmental Protection Agency or the Administrator's duly authorized 
representative.
    Allocate or allocation means the determination by the permitting 
authority or the Administrator of the number of NOX 
allowances to be initially credited to a NOX Budget unit or 
an allocation set-aside.
    Automated data acquisition and handling system or DAHS means that 
component of the CEMS, or other emissions monitoring system approved for 
use under subpart H of this part, designed to interpret and convert 
individual output signals from pollutant concentration monitors, flow 
monitors, diluent gas monitors, and other component parts of the 
monitoring system to produce a continuous record of the measured 
parameters in the measurement units required by subpart H of this part.
    Boiler means an enclosed fossil or other fuel-fired combustion 
device used to produce heat and to transfer heat to recirculating water, 
steam, or other medium.
    CAA means the CAA, 42 U.S.C. 7401, et seq., as amended by Pub. L. 
No. 101-549 (November 15, 1990).
    Combined cycle system means a system comprised of one or more 
combustion turbines, heat recovery steam generators, and steam turbines 
configured to improve overall efficiency of electricity generation or 
steam production.
    Combustion turbine means an enclosed fossil or other fuel-fired 
device that is comprised of a compressor, a combustor, and a turbine, 
and in which the flue gas resulting from the combustion of fuel in the 
combustor passes through the turbine, rotating the turbine.
    Commence commercial operation means, with regard to a unit that 
serves a generator, to have begun to produce steam, gas, or other heated 
medium used to generate electricity for sale or use, including test 
generation. Except as provided in Sec. 96.5, for a unit that is a 
NOX Budget unit under Sec. 96.4 on the date the unit 
commences commercial operation, such date shall remain the unit's date 
of commencement of commercial operation even if the unit is subsequently 
modified, reconstructed, or repowered. Except as provided in Sec. 96.5 
or subpart I of this part, for a unit that is not a NOX 
Budget unit under Sec. 96.4 on the date the unit commences commercial 
operation, the date the unit becomes a NOX Budget unit under 
Sec. 96.4 shall be the unit's date of commencement of commercial 
operation.
    Commence operation means to have begun any mechanical, chemical, or 
electronic process, including, with regard to a unit, start-up of a 
unit's combustion chamber. Except as provided in Sec. 96.5, for a unit 
that is a NOX Budget unit under Sec. 96.4 on the date of 
commencement of operation, such date shall remain the unit's date of 
commencement of operation even if the unit is subsequently modified, 
reconstructed, or repowered. Except as provided in Sec. 96.5 or subpart 
I of this part, for a unit that is not a NOX Budget unit 
under Sec. 96.4 on the date of commencement of operation, the date the 
unit becomes a NOX Budget unit under

[[Page 668]]

Sec. 96.4 shall be the unit's date of commencement of operation.
    Common stack means a single flue through which emissions from two or 
more units are exhausted.
    Compliance account means a NOX Allowance Tracking System 
account, established by the Administrator for a NOX Budget 
unit under subpart F of this part, in which the NOX allowance 
allocations for the unit are initially recorded and in which are held 
NOX allowances available for use by the unit for a control 
period for the purpose of meeting the unit's NOX Budget 
emissions limitation.
    Compliance certification means a submission to the permitting 
authority or the Administrator, as appropriate, that is required under 
subpart D of this part to report a NOX Budget source's or a 
NOX Budget unit's compliance or noncompliance with this part 
and that is signed by the NOX authorized account 
representative in accordance with subpart B of this part.
    Continuous emission monitoring system or CEMS means the equipment 
required under subpart H of this part to sample, analyze, measure, and 
provide, by readings taken at least once every 15 minutes of the 
measured parameters, a permanent record of nitrogen oxides emissions, 
expressed in tons per hour for nitrogen oxides. The following systems 
are component parts included, consistent with part 75 of this chapter, 
in a continuous emission monitoring system:
    (1) Flow monitor;
    (2) Nitrogen oxides pollutant concentration monitors;
    (3) Diluent gas monitor (oxygen or carbon dioxide) when such 
monitoring is required by subpart H of this part;
    (4) A continuous moisture monitor when such monitoring is required 
by subpart H of this part; and
    (5) An automated data acquisition and handling system.
    Control period means the period beginning May 1 of a year and ending 
on September 30 of the same year, inclusive.
    Emissions means air pollutants exhausted from a unit or source into 
the atmosphere, as measured, recorded, and reported to the Administrator 
by the NOX authorized account representative and as 
determined by the Administrator in accordance with subpart H of this 
part.
    Energy Information Administration means the Energy Information 
Administration of the United States Department of Energy.
    Excess emissions means any tonnage of nitrogen oxides emitted by a 
NOX Budget unit during a control period that exceeds the 
NOX Budget emissions limitation for the unit.
    Fossil fuel means natural gas, petroleum, coal, or any form of 
solid, liquid, or gaseous fuel derived from such material.
    Fossil fuel-fired means, with regard to a unit:
    (1) The combustion of fossil fuel, alone or in combination with any 
other fuel, where fossil fuel actually combusted comprises more than 50 
percent of the annual heat input on a Btu basis during any year starting 
in 1995 or, if a unit had no heat input starting in 1995, during the 
last year of operation of the unit prior to 1995; or
    (2) The combustion of fossil fuel, alone or in combination with any 
other fuel, where fossil fuel is projected to comprise more than 50 
percent of the annual heat input on a Btu basis during any year; 
provided that the unit shall be ``fossil fuel-fired'' as of the date, 
during such year, on which the unit begins combusting fossil fuel.
    General account means a NOX Allowance Tracking System 
account, established under subpart F of this part, that is not a 
compliance account or an overdraft account.
    Generator means a device that produces electricity.
    Heat input means the product (in mmBtu/time) of the gross calorific 
value of the fuel (in Btu/lb) and the fuel feed rate into a combustion 
device (in mass of fuel/time), as measured, recorded, and reported to 
the Administrator by the NOX authorized account 
representative and as determined by the Administrator in accordance with 
subpart H of this part, and does not include the heat derived from 
preheated combustion air, recirculated flue gases, or exhaust from other 
sources.
    Life-of-the-unit, firm power contractual arrangement means a unit 
participation power sales agreement under which a

[[Page 669]]

utility or industrial customer reserves, or is entitled to receive, a 
specified amount or percentage of nameplate capacity and associated 
energy from any specified unit and pays its proportional amount of such 
unit's total costs, pursuant to a contract:
    (1) For the life of the unit;
    (2) For a cumulative term of no less than 30 years, including 
contracts that permit an election for early termination; or
    (3) For a period equal to or greater than 25 years or 70 percent of 
the economic useful life of the unit determined as of the time the unit 
is built, with option rights to purchase or release some portion of the 
nameplate capacity and associated energy generated by the unit at the 
end of the period.
    Maximum design heat input means the ability of a unit to combust a 
stated maximum amount of fuel per hour on a steady state basis, as 
determined by the physical design and physical characteristics of the 
unit.
    Maximum potential hourly heat input means an hourly heat input used 
for reporting purposes when a unit lacks certified monitors to report 
heat input. If the unit intends to use appendix D of part 75 of this 
chapter to report heat input, this value should be calculated, in 
accordance with part 75 of this chapter, using the maximum fuel flow 
rate and the maximum gross calorific value. If the unit intends to use a 
flow monitor and a diluent gas monitor, this value should be reported, 
in accordance with part 75 of this chapter, using the maximum potential 
flowrate and either the maximum carbon dioxide concentration (in percent 
CO2) or the minimum oxygen concentration (in percent 
O2).
    Maximum potential NOX emission rate means the emission 
rate of nitrogen oxides (in lb/mmBtu) calculated in accordance with 
section 3 of appendix F of part 75 of this chapter, using the maximum 
potential nitrogen oxides concentration as defined in section 2 of 
appendix A of part 75 of this chapter, and either the maximum oxygen 
concentration (in percent O2) or the minimum carbon dioxide 
concentration (in percent CO2), under all operating 
conditions of the unit except for unit start up, shutdown, and upsets.
    Maximum rated hourly heat input means a unit-specific maximum hourly 
heat input (mmBtu) which is the higher of the manufacturer's maximum 
rated hourly heat input or the highest observed hourly heat input.
    Monitoring system means any monitoring system that meets the 
requirements of subpart H of this part, including a continuous emissions 
monitoring system, an excepted monitoring system, or an alternative 
monitoring system.
    Most stringent State or Federal NOX emissions limitation 
means, with regard to a NOX Budget opt-in source, the lowest 
NOX emissions limitation (in terms of lb/mmBtu) that is 
applicable to the unit under State or Federal law, regardless of the 
averaging period to which the emissions limitation applies.
    Nameplate capacity means the maximum electrical generating output 
(in MWe) that a generator can sustain over a specified period of time 
when not restricted by seasonal or other deratings as measured in 
accordance with the United States Department of Energy standards.
    Non-title V permit means a federally enforceable permit administered 
by the permitting authority pursuant to the CAA and regulatory authority 
under the CAA, other than title V of the CAA and part 70 or 71 of this 
chapter.
    NOX allowance means an authorization by the permitting 
authority or the Administrator under the NOX Budget Trading 
Program to emit up to one ton of nitrogen oxides during the control 
period of the specified year or of any year thereafter.
    NOX allowance deduction or deduct NOX 
allowances means the permanent withdrawal of NOX allowances 
by the Administrator from a NOX Allowance Tracking System 
compliance account or overdraft account to account for the number of 
tons of NOX emissions from a NOX Budget unit for a 
control period, determined in accordance with subpart H of this part, or 
for any other allowance surrender obligation under this part.

[[Page 670]]

    NOX allowances held or hold NOX allowances 
means the NOX allowances recorded by the Administrator, or 
submitted to the Administrator for recordation, in accordance with 
subparts F and G of this part, in a NOX Allowance Tracking 
System account.
    NOX Allowance Tracking System means the system by which 
the Administrator records allocations, deductions, and transfers of 
NOX allowances under the NOX Budget Trading 
Program.
    NOX Allowance Tracking System account means an account in 
the NOX Allowance Tracking System established by the 
Administrator for purposes of recording the allocation, holding, 
transferring, or deducting of NOX allowances.
    NOX allowance transfer deadline means midnight of 
November 30 or, if November 30 is not a business day, midnight of the 
first business day thereafter and is the deadline by which 
NOX allowances may be submitted for recordation in a 
NOX Budget unit's compliance account, or the overdraft 
account of the source where the unit is located, in order to meet the 
unit's NOX Budget emissions limitation for the control period 
immediately preceding such deadline.
    NOX authorized account representative means, for a 
NOX Budget source or NOX Budget unit at the 
source, the natural person who is authorized by the owners and operators 
of the source and all NOX Budget units at the source, in 
accordance with subpart B of this part, to represent and legally bind 
each owner and operator in matters pertaining to the NOX 
Budget Trading Program or, for a general account, the natural person who 
is authorized, in accordance with subpart F of this part, to transfer or 
otherwise dispose of NOX allowances held in the general 
account.
    NOX Budget emissions limitation means, for a 
NOX Budget unit, the tonnage equivalent of the NOX 
allowances available for compliance deduction for the unit and for a 
control period under Sec. 96.54(a) and (b), adjusted by any deductions 
of such NOX allowances to account for actual utilization 
under Sec. 96.42(e) for the control period or to account for excess 
emissions for a prior control period under Sec. 96.54(d) or to account 
for withdrawal from the NOX Budget Program, or for a change 
in regulatory status, for a NOX Budget opt-in source under 
Sec. 96.86 or Sec. 96.87.
    NOX Budget opt-in permit means a NOX Budget 
permit covering a NOX Budget opt-in source.
    NOX Budget opt-in source means a unit that has been 
elected to become a NOX Budget unit under the NOX 
Budget Trading Program and whose NOX Budget opt-in permit has 
been issued and is in effect under subpart I of this part.
    NOX Budget permit means the legally binding and federally 
enforceable written document, or portion of such document, issued by the 
permitting authority under this part, including any permit revisions, 
specifying the NOX Budget Trading Program requirements 
applicable to a NOX Budget source, to each NOX 
Budget unit at the NOX Budget source, and to the owners and 
operators and the NOX authorized account representative of 
the NOX Budget source and each NOX Budget unit.
    NOX Budget source means a source that includes one or 
more NOX Budget units.
    NOX Budget Trading Program means a multi-state nitrogen 
oxides air pollution control and emission reduction program established 
in accordance with this part and pursuant to Sec. 51.121 of this 
chapter, as a means of mitigating the interstate transport of ozone and 
nitrogen oxides, an ozone precursor.
    NOX Budget unit means a unit that is subject to the 
NOX Budget Trading Program emissions limitation under 
Sec. 96.4 or Sec. 96.80.
    Operating means, with regard to a unit under Secs. 96.22(d)(2) and 
96.80, having documented heat input for more than 876 hours in the 6 
months immediately preceding the submission of an application for an 
initial NOX Budget permit under Sec. 96.83(a).
    Operator means any person who operates, controls, or supervises a 
NOX Budget unit, a NOX Budget source, or unit for 
which an application for a NOX Budget opt-in permit under 
Sec. 96.83 is submitted and not denied or withdrawn and shall include, 
but not be limited to, any holding company, utility system, or plant 
manager of such a unit or source.

[[Page 671]]

    Opt-in means to be elected to become a NOX Budget unit 
under the NOX Budget Trading Program through a final, 
effective NOX Budget opt-in permit under subpart I of this 
part.
    Overdraft account means the NOX Allowance Tracking System 
account, established by the Administrator under subpart F of this part, 
for each NOX Budget source where there are two or more 
NOX Budget units.
    Owner means any of the following persons:
    (1) Any holder of any portion of the legal or equitable title in a 
NOX Budget unit or in a unit for which an application for a 
NOX Budget opt-in permit under Sec. 96.83 is submitted and 
not denied or withdrawn; or
    (2) Any holder of a leasehold interest in a NOX Budget 
unit or in a unit for which an application for a NOX Budget 
opt-in permit under Sec. 96.83 is submitted and not denied or withdrawn; 
or
    (3) Any purchaser of power from a NOX Budget unit or from 
a unit for which an application for a NOX Budget opt-in 
permit under Sec. 96.83 is submitted and not denied or withdrawn under a 
life-of-the-unit, firm power contractual arrangement. However, unless 
expressly provided for in a leasehold agreement, owner shall not include 
a passive lessor, or a person who has an equitable interest through such 
lessor, whose rental payments are not based, either directly or 
indirectly, upon the revenues or income from the NOX Budget 
unit or the unit for which an application for a NOX Budget 
opt-in permit under Sec. 96.83 is submitted and not denied or withdrawn; 
or
    (4) With respect to any general account, any person who has an 
ownership interest with respect to the NOX allowances held in 
the general account and who is subject to the binding agreement for the 
NOX authorized account representative to represent that 
person's ownership interest with respect to NOX allowances.
    Permitting authority means the State air pollution control agency, 
local agency, other State agency, or other agency authorized by the 
Administrator to issue or revise permits to meet the requirements of the 
NOX Budget Trading Program in accordance with subpart C of 
this part.
    Receive or receipt of means, when referring to the permitting 
authority or the Administrator, to come into possession of a document, 
information, or correspondence (whether sent in writing or by authorized 
electronic transmission), as indicated in an official correspondence 
log, or by a notation made on the document, information, or 
correspondence, by the permitting authority or the Administrator in the 
regular course of business.
    Recordation, record, or recorded means, with regard to 
NOX allowances, the movement of NOX allowances by 
the Administrator from one NOX Allowance Tracking System 
account to another, for purposes of allocation, transfer, or deduction.
    Reference method means any direct test method of sampling and 
analyzing for an air pollutant as specified in appendix A of part 60 of 
this chapter.
    Serial number means, when referring to NOX allowances, 
the unique identification number assigned to each NOX 
allowance by the Administrator, under Sec. 96.53(c).
    Source means any governmental, institutional, commercial, or 
industrial structure, installation, plant, building, or facility that 
emits or has the potential to emit any regulated air pollutant under the 
CAA. For purposes of section 502(c) of the CAA, a ``source,'' including 
a ``source'' with multiple units, shall be considered a single 
``facility.''
    State means one of the 48 contiguous States and the District of 
Columbia specified in Sec. 51.121 of this chapter, or any non-federal 
authority in or including such States or the District of Columbia 
(including local agencies, and Statewide agencies) or any eligible 
Indian tribe in an area of such State or the District of Columbia, that 
adopts a NOX Budget Trading Program pursuant to Sec. 51.121 
of this chapter. To the extent a State incorporates by reference the 
provisions of this part, the term ``State'' shall mean the incorporating 
State. The term ``State'' shall have its conventional meaning where such 
meaning is clear from the context.
    State trading program budget means the total number of 
NOX tons apportioned to all NOX Budget units in a 
given State, in accordance with the

[[Page 672]]

NOX Budget Trading Program, for use in a given control 
period.
    Submit or serve means to send or transmit a document, information, 
or correspondence to the person specified in accordance with the 
applicable regulation:
    (1) In person;
    (2) By United States Postal Service; or
    (3) By other means of dispatch or transmission and delivery. 
Compliance with any ``submission,'' ``service,'' or ``mailing'' deadline 
shall be determined by the date of dispatch, transmission, or mailing 
and not the date of receipt.
    Title V operating permit means a permit issued under title V of the 
CAA and part 70 or part 71 of this chapter.
    Title V operating permit regulations means the regulations that the 
Administrator has approved or issued as meeting the requirements of 
title V of the CAA and part 70 or 71 of this chapter.
    Ton or tonnage means any ``short ton'' (i.e., 2,000 pounds). For the 
purpose of determining compliance with the NOX Budget 
emissions limitation, total tons for a control period shall be 
calculated as the sum of all recorded hourly emissions (or the tonnage 
equivalent of the recorded hourly emissions rates) in accordance with 
subpart H of this part, with any remaining fraction of a ton equal to or 
greater than 0.50 ton deemed to equal one ton and any fraction of a ton 
less than 0.50 ton deemed to equal zero tons.
    Unit means a fossil fuel-fired stationary boiler, combustion 
turbine, or combined cycle system.
    Unit load means the total (i.e., gross) output of a unit in any 
control period (or other specified time period) produced by combusting a 
given heat input of fuel, expressed in terms of:
    (1) The total electrical generation (MWe) produced by the unit, 
including generation for use within the plant; or
    (2) In the case of a unit that uses heat input for purposes other 
than electrical generation, the total steam pressure (psia) produced by 
the unit, including steam for use by the unit.
    Unit operating day means a calendar day in which a unit combusts any 
fuel.
    Unit operating hour or hour of unit operation means any hour (or 
fraction of an hour) during which a unit combusts any fuel.
    Utilization means the heat input (expressed in mmBtu/time) for a 
unit. The unit's total heat input for the control period in each year 
will be determined in accordance with part 75 of this chapter if the 
NOX Budget unit was otherwise subject to the requirements of 
part 75 of this chapter for the year, or will be based on the best 
available data reported to the Administrator for the unit if the unit 
was not otherwise subject to the requirements of part 75 of this chapter 
for the year.