[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: 40CFR97.43]
[Page 729-730]
TITLE 40--PROTECTION OF ENVIRONMENT
CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
PART 97--FEDERAL NOX BUDGET TRADING PROGRAM--Table of Contents
Subpart E--NOX Allowance Allocations
Sec. 97.43 Compliance Supplement Pool.
(a) For any NOX Budget unit that reduces its
NOX emission rate in the 2001 through 2003 control period,
the owners and operators may request early reduction credits in
accordance with the following requirements:
(1) Each NOX Budget unit for which the owners and
operators intend to request, or request, any early reduction credits in
accordance with paragraph (a)(4) of this section shall monitor and
report NOX emissions in accordance with subpart H of this
part starting in the 2000 control period and for each control period for
which such early reduction credits are requested. The unit's percent
monitor data availability shall not be less than 90 percent during the
2000 control period, and the unit must be in full compliance with any
applicable State or Federal NOX emission control requirements
during 2000 through 2002.
(2) NOX emission rate and heat input under paragraphs
(a)(3) and (4) of this section shall be determined in accordance with
subpart H of this part.
(3) Each NOX Budget unit for which the owners and
operators intend to request, or request, any early reduction credits
under paragraph (a)(4) of this section shall reduce its NOX
emission rate, for each control period for which early reduction credits
are requested, to less than both 0.25 lb/mmBtu and 80 percent of the
unit's NOX emission rate in the 2000 control period.
(4) The NOX authorized account representative of a
NOX Budget unit that meets the requirements of paragraphs (a)
(1) and (3) of this section may submit to the Administrator a request
for early reduction credits for the unit based on NOX
emission rate reductions made by the unit in the control period for 2001
through 2003.
(i) In the early reduction credit request, the NOX
authorized account may request early reduction credits for such control
period in an amount equal to the unit's heat input for such control
period multiplied by the difference between 0.25 lb/mmBtu and the unit's
NOX emission rate for such control period, divided by 2000
lb/ton, and rounded to the nearest whole number of tons.
(ii) The early reduction credit request must be submitted, in a
format specified by the Administrator, by February 1, 2004.
(b) For any NOX Budget unit that is subject to the Ozone
Transport Commission NOX Budget Program under title I of the
Clean Air Act, the owners and operators may request early reduction
credits in accordance with the following requirements:
(1) The NOX authorized account representative of the unit
may submit to the Administrator a request for early reduction credits in
an amount equal to the amount of banked allowances under the Ozone
Transport Commission NOX Budget Program that were allocated
for the control period in 2001 through 2003 and are held by the unit, in
accordance with the Ozone Transport Commission NOX Budget
Program, as of the date of submission of the request. During the entire
control period in 2001 through 2003 for which the allowances were
allocated, the unit must have monitored and reported NOX
emissions in accordance with part 75 (except for subpart H) of this
chapter and the Guidance for Implementation of Emission Monitoring
Requirements for the NOX Budget Program (January 28, 1997).
(2) The early reduction credit request under paragraph (b)(1) must
be submitted, in a format specified by the Administrator, by February 1,
2004.
(3) The NOX authorized account representative of the unit
shall not submit a request for early reduction credits under paragraph
(b)(1) of this section for banked allowances under the Ozone Transport
Commission NOX Budget Program that were allocated for any
control period during which the unit made NOX emission
reductions for which he or she submits a request for early reduction
credits under paragraph (a) of this section for the unit.
(c) The Administrator will review each early reduction credit
request submitted in accordance with paragraph (a) or (b) of this
section and will allocate NOX allowances to NOX
Budget
[[Page 730]]
units in a given State and covered by such request as follows:
(1) Upon receipt of each early reduction credit request, the
Administrator will make any necessary adjustments to the request to
ensure that the amount of the early reduction credits requested meets
the requirements of paragraph (a) or (b) of this section.
(2) After February 1, 2004, the Administrator will make available to
the public a statement of the total number of early reduction credits
requested by NOX Budget units in the State.
(3) If the State's compliance supplement pool set forth in appendix
D of this part has a number of NOX allowances not less than
the amount of early reduction credits in all early reduction credit
requests under paragraph (a) or (b) of this section for 2001 through
2003 (as adjusted under paragraph (c)(1) of this section) submitted by
February 1, 2004, the Administrator will allocate to each NOX
Budget unit covered by such requests one allowance for each early
reduction credit requested (as adjusted under paragraph (c)(1) of this
section).
(4) If the State's compliance supplement pool set forth in appendix
D of this part has a smaller number of NOX allowances than
the amount of early reduction credits in all early reduction credit
requests under paragraph (a) or (b) of this section for 2001 through
2003 (as adjusted under paragraph (c)(1) of this section) submitted by
February 1, 2004, the Administrator will allocate NOX
allowances to each NOX Budget unit covered by such requests
according to the following formula and rounding to the nearest whole
number of NOX allowances as appropriate:
Unit's allocation for early reduction credits = Unit's adjusted early
reduction credits x (State's compliance supplement pool / Total adjusted
early reduction credits for all units)
Where:
``Unit's allocation for early reduction credits'' is the number of
NOX allowances allocated to the unit for early reduction
credits.
``Unit's adjusted early reduction credits'' is the amount of early
reduction credits requested for the unit for 2001 and 2002 in early
reduction credit requests under paragraph (a) or (b) of this section, as
adjusted under paragraph (c)(1) of this section.
``State's compliance supplement pool'' is the number of
NOX allowances in the State's compliance supplement pool set
forth in appendix D of this part.
``Total adjusted early reduction credits for all units'' is the
amount of early reduction credits requested for all units for 2001 and
2002 in early reduction credit requests under paragraph (a) or (b) of
this section, as adjusted under paragraph (c)(1) of this section.
(5) By April 1, 2004, the Administrator will determine by order the
allocations under paragraph (c)(3) or (4) of this section. The
Administrator will make available to the public each determination of
NOX allowance allocations and will provide an opportunity for
submission of objections to the determination. Objections shall be
limited to addressing whether the determination is in accordance with
paragraph (c)(1), (3), or (4) of this section. Based on any such
objections, the Administrator will adjust each determination to the
extent necessary to ensure that it is in accordance with paragraph
(c)(1), (3), or (4) of this section.
(6) By May 1, 2004, the Administrator will record the allocations
under paragraph (c)(3) or (4) of this section.
(7) NOX allowances recorded under paragraph (c)(6) of
this section may be deducted for compliance under Sec. 97.54 for the
control period in 2004 or 2005. Notwithstanding Sec. 97.55(a), the
Administrator will deduct as retired any NOX allowance that
is recorded under paragraph (c)(6) of this section and that is not
deducted for compliance under Sec. 97.54 for the control period in 2003
or 2004.
(8) NOX allowances recorded under paragraph (c)(6) of
this section are treated as banked allowances in 2005 for the purposes
of Secs. 97.54(f) and 97.55(b).
[65 FR 2727, Jan. 18, 2000, as amended at 67 FR 21529, Apr. 30, 2002]