[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: 40CFR96.4]

[Page 672-673]
 
                   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. 96.4  Applicability.

    (a) The following units in a State shall be NOX Budget 
units, and any source that includes one or more such units shall be a 
NOX Budget source, subject to the requirements of this part:
    (1) Any unit that, any time on or after January 1, 1995, serves a 
generator with a nameplate capacity greater than 25 MWe and sells any 
amount of electricity; or
    (2) Any unit that is not a unit under paragraph (a) of this section 
and that has a maximum design heat input greater than 250 mmBtu/hr.
    (b) Notwithstanding paragraph (a) of this section, a unit under 
paragraph (a) of this section shall be subject only to the requirements 
of this paragraph (b) if the unit has a federally enforceable permit 
that meets the requirements of paragraph (b)(1) of this section and 
restricts the unit to burning only natural gas or fuel oil during a 
control period in 2003 or later and each control period thereafter and 
restricts the unit's operating hours during each such control

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period to the number of hours (determined in accordance with paragraph 
(b)(1)(ii) and (iii) of this section) that limits the unit's potential 
NOX mass emissions for the control period to 25 tons or less. 
Notwithstanding paragraph (a) of this section, starting with the 
effective date of such federally enforceable permit, the unit shall not 
be a NOX Budget unit.
    (1) For each control period under paragraph (b) of this section, the 
federally enforceable permit must:
    (i) Restrict the unit to burning only natural gas or fuel oil.
    (ii) Restrict the unit's operating hours to the number calculated by 
dividing 25 tons of potential NOX mass emissions by the 
unit's maximum potential hourly NOX mass emissions.
    (iii) Require that the unit's potential NOX mass 
emissions shall be calculated as follows:
    (A) Select the default NOX emission rate in Table 2 of 
Sec. 75.19 of this chapter that would otherwise be applicable assuming 
that the unit burns only the type of fuel (i.e., only natural gas or 
only fuel oil) that has the highest default NOX emission 
factor of any type of fuel that the unit is allowed to burn under the 
fuel use restriction in paragraph (b)(1)(i) of this section; and
    (B) Multiply the default NOX emission rate under 
paragraph (b)(1)(iii)(A) of this section by the unit's maximum rated 
hourly heat input. The owner or operator of the unit may petition the 
permitting authority to use a lower value for the unit's maximum rated 
hourly heat input than the value as defined under Sec. 96.2. The 
permitting authority may approve such lower value if the owner or 
operator demonstrates that the maximum hourly heat input specified by 
the manufacturer or the highest observed hourly heat input, or both, are 
not representative, and that such lower value is representative, of the 
unit's current capabilities because modifications have been made to the 
unit, limiting its capacity permanently.
    (iv) Require that the owner or operator of the unit shall retain at 
the source that includes the unit, for 5 years, records demonstrating 
that the operating hours restriction, the fuel use restriction, and the 
other requirements of the permit related to these restrictions were met.
    (v) Require that the owner or operator of the unit shall report the 
unit's hours of operation (treating any partial hour of operation as a 
whole hour of operation) during each control period to the permitting 
authority by November 1 of each year for which the unit is subject to 
the federally enforceable permit.
    (2) The permitting authority that issues the federally enforceable 
permit with the fuel use restriction under paragraph (b)(1)(i) and the 
operating hours restriction under paragraphs (b)(1)(ii) and (iii) of 
this section will notify the Administrator in writing of each unit under 
paragraph (a) of this section whose federally enforceable permit issued 
by the permitting authority includes such restrictions. The permitting 
authority will also notify the Administrator in writing of each unit 
under paragraph (a) of this section whose federally enforceable permit 
issued by the permitting authority is revised to remove any such 
restriction, whose federally enforceable permit issued by the permitting 
authority includes any such restriction that is no longer applicable, or 
which does not comply with any such restriction.
    (3) If, for any control period under paragraph (b) of this section, 
the fuel use restriction under paragraph (b)(1)(i) of this section or 
the operating hours restriction under paragraphs (b)(1)(ii) and (iii) of 
this section is removed from the unit's federally enforceable permit or 
otherwise becomes no longer applicable or if, for any such control 
period, the unit does not comply with the fuel use restriction under 
paragraph (b)(1)(i) of this section or the operating hours restriction 
under paragraphs (b)(1)(ii) and (iii) of this section, the unit shall be 
a NOX Budget unit, subject to the requirements of this part. 
Such unit shall be treated as commencing operation and, for a unit under 
paragraph (a)(1) of this section, commencing commercial operation on 
September 30 of the control period for which the fuel use restriction or 
the operating hours restriction is no longer applicable or during which 
the unit does not comply with the fuel use restriction or the operating 
hours restriction.

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