§ 145.87. Opt-in unit change in regulatory status.
(a) Notification. When a NOx budget opt-in unit becomes a NOx budget unit under § 145.4(a) (relating to applicability), the NOx authorized account representative shall notify in writing the Department and the Administrator of the change in the NOx budget opt-in unit’s regulatory status, within 30 days of the change.
(b) Department’s and NOx Budget Administrator’s action.
(1) Units with active applications.
(i) Revision of approval. When the NOx budget opt-in unit becomes a NOx budget unit under § 145.4(a), the Department will revise the NOx budget opt-in unit’s NOx budget opt-in approval to meet the requirements of this subchapter as of an effective date that is the date on which the NOx budget opt-in unit becomes a NOx budget unit under § 145.4(a).
(ii) Compliance account.
(A) The NOx Budget Administrator will deduct from the compliance account for the NOx budget unit under subparagraph (i), 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 the following:
(I) NOx allowances allocated to the NOx budget unit (as a NOx budget opt-in unit) under § 145.88 (relating to NOx allowance allocations to opt-in units) for any control period after the last control period during which the unit’s NOx budget opt-in approval was effective.
(II) If the effective date of the NOx budget approval revision under subparagraph (i) is during a control period, the NOx allowances allocated to the NOx budget unit (as a NOx budget opt-in unit) under § 145.88 for the control period multiplied by the number of days, in the control period, starting with the effective date of the approval revision under subparagraph (i), 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 subparagraph (i), 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 clause (A). If the compliance account or overdraft account does not contain sufficient NOx allowances, the NOx Budget 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) Allocations.
(A) For every control period during which the NOx budget approval revised under subparagraph (i) is effective, the NOx budget unit under subparagraph (i) will be treated, solely for purposes of NOx allowance allocations under § 145.42 (relating to NOx allowance allocations), as a unit that commenced operation on the effective date of the NOx budget approval revision under subparagraph (i) and will be allocated NOx allowances under § 145.42. The unit’s deadline under § 145.84(b) (relating to opt-in process) for meeting monitoring requirements in accordance with § § 145.70—145.76 (relating to recordkeeping and reporting requirements) will not be changed by the change in the unit’s regulatory status or by the revision of the NOx budget approval under subparagraph (i).
(B) Notwithstanding clause (A), if the effective date of the NOx budget approval revision under subparagraph (i) is during a control period, the following number of NOx allowances will be allocated to the NOx budget unit under subparagraph (i) under § 145.42 for the control period: the number of NOx allowances otherwise allocated to the NOx budget unit under § 145.42 for the control period multiplied by the ratio of the number of days, in the control period, starting with the effective date of the approval revision under subparagraph (i), divided by the total number of days in the control period, and rounded to the nearest whole number of NOx allowances as appropriate.
(2) Units with expired approvals.
(i) When the NOx authorized account representative of a NOx budget opt-in unit does not renew its NOx budget opt-in approval under § 145.83 (relating to applying for a NOx opt-in approval), the NOx Budget 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 § 145.88 for any control period after the last control period for which the NOx budget opt-in approval 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 includes the NOx allowances necessary for completion of the deduction. If the compliance account or overdraft account does not contain sufficient NOx allowances, the NOx Budget 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 subparagraph (i) is completed, the NOx Budget Administrator will close the NOx budget opt-in unit’s compliance account. If any NOx allowances remain in the compliance account after completion of the deduction and any deduction under § 145.54 (relating to compliance), the NOx Budget Administrator will close the NOx budget opt-in source’s compliance account and will establish, and transfer any remaining allowances to a general account specified by the owners and operators of the NOx budget opt-in unit.
Cross References This section cited in 25 Pa. Code § 129.201 (relating to boilers); 25 Pa. Code § 129.202 (relating to stationary combustion turbines); 25 Pa. Code § 145.2 (relating to definitions); 25 Pa. Code § 145.4 (relating to applicability); 25 Pa. Code § 145.5 (relating to retired unit exemption); 25 Pa. Code § 145.50 (relating to NOx Allowance Tracking System accounts); 25 Pa. Code § 145.54 (relating to compliance); 25 Pa. Code § 145.55 (relating to banking); 25 Pa. Code § 145.70 (relating to general monitoring requirements); 25 Pa. Code § 145.80 (relating to applicability for opt-in sources); and 25 Pa. Code § 145.83 (relating to applying for a NOx budget opt-in approval).
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