[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: 40CFR97.87]

[Page 748-749]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
 
PART 97--FEDERAL NOX BUDGET TRADING PROGRAM--Table of Contents
 
                   Subpart I--Individual Unit Opt-ins.
 
Sec. 97.87  Change in regulatory status.

    (a) Notification. When a NOX Budget opt-in unit becomes a 
NOX Budget unit under Sec. 97.4(a), the NOX 
authorized account representative shall notify in writing the permitting 
authority and the Administrator of such change in the NOX 
Budget opt-in unit'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 unit becomes a NOX Budget 
unit under Sec. 97.4(a), the permitting authority will revise the 
NOX Budget opt-in unit's NOX Budget opt-in permit 
to meet the requirements of a NOX Budget permit under 
Sec. 97.23 as of an effective date that is the date on which such 
NOX Budget opt-in unit becomes a NOX Budget unit 
under Sec. 97.4(a).
    (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 unit) under Sec. 97.88 
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 unit) under Sec. 97.88 
for the control period multiplied by 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, and rounded to the nearest whole number of 
NOX allowances as appropriate.
    (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, contains 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 the necessary 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 in 
effect, the NOX Budget unit under paragraph (b)(1)(i) of this 
section will be treated, solely for purposes of NOX allowance 
allocations under Sec. 97.42, 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 Sec. 97.42. The unit's deadline under

[[Page 749]]

Sec. 97.84(b) for meeting monitoring requirements in accordance with 
subpart H of this part shall not changed by the change in the unit's 
regulatory status or by the revision of the NOX Budget permit 
under paragraph (b)(1)(i) of this section.
    (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 Sec. 97.42 for the control period: the number of NOX 
allowances otherwise allocated to the NOX Budget unit under 
Sec. 97.42 for the control period multiplied by 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, and rounded to the nearest whole 
number of NOX allowances as appropriate.
    (2)(i) When the NOX authorized account representative of 
a NOX Budget opt-in unit does not renew its NOX 
Budget opt-in permit under Sec. 97.83(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 unit 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 unit under Sec. 97.88 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 unit's compliance account 
or the overdraft account of the NOX Budget source where the 
NOX Budget opt-in unit is located contains the NOX 
allowances necessary for completion of such deduction. If the compliance 
account or overdraft account does not contain the necessary 
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 unit's compliance account. If any NOX allowances 
remain in the compliance account after completion of such deduction and 
any deduction under Sec. 97.54, the Administrator will close the 
NOX Budget opt-in unit's compliance account and transfer any 
remaining allowances to a general account specified by the owners and 
operators of the NOX Budget opt-in unit.