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SOUTH CAROLINA

DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL

AIR POLLUTION CONTROL REGULATIONS AND STANDARDS

REGULATION 61-62.96

NITROGEN OXIDES (NOX) BUDGET TRADING PROGRAM

SUBPART A - NITROGEN OXIDES (NOX) BUDGET TRADING PROGRAM GENERAL 

PROVISIONS

Section 96.1 - Purpose. 

This regulation establishes general provisions and the applicability, permitting, allowance, excess 

emissions, monitoring, and opt-in provisions for the NOX Budget Trading Program as a means of mitigating 

the interstate transport of ozone and nitrogen oxides, an ozone precursor. The owner or operator of a unit, 

or any other person, shall comply with requirements of this regulation as a matter of State and Federal 

law. The State of South Carolina authorizes the EPA to assist the State in implementing the NOX Budget 

Trading Program by carrying out the functions set forth for the EPA in such requirements. 

Section 96.2 - Definitions. 

The terms used in this regulation shall have the meanings set forth in this section as follows:

(a) “Account certificate of representation” means the completed and signed submission required by

subpart B of this regulation 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.

(b) “Account number” means the identification number given by the EPA to each NOX Allowance 

Tracking System account.

(c) “Acid Rain emissions limitation” means, as defined in South Carolina Regulation 61-62.72.2, Air 

Pollution Control Regulations and Standards, a limitation on emissions of sulfur dioxide or nitrogen oxides 

under the Acid Rain Program under Title IV of the CAA. 

(d) “Allocate” or “allocation” means the determination by the Department or the EPA of the number of 

NOX allowances to be credited to a NOX Budget unit or an allocation set-aside.

(e) “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 regulation, 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 regulation.

(f) “Boiler” means an enclosed fossil or other fuel-fired combustion device used to produce heat and to 
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transfer heat to recirculating water, steam, or other medium.

(g) “CAA” means the Clean Air Act, 42 U.S.C. 7401, et seq., as amended by Pub. L. No. 101-549 

(November 15, 1990).

(h) “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.

(i) “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.

(j) “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 Section 96.5, for a unit that is a NOX Budget unit under Section 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 Section 96.5 or subpart I of this regulation, for a unit that is not a NOX

Budget unit under Section 96.4 on the date the unit commences commercial operation, the date the unit 

becomes a NOX Budget unit under Section 96.4 shall be the unit’s date of commencement of commercial 

operation.

(k) “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 Section 

96.5, for a unit that is a NOX Budget unit under Section 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 Section 96.5 or subpart I of this regulation, 

for a unit that is not a NOX Budget unit under Section 96.4 on the date of commencement of operation, the 

date the unit becomes a NOX Budget unit under Section 96.4 shall be the unit’s date of commencement of 

operation.

(l) “Common stack” means a single flue through which emissions from two or more units are exhausted. 

(m) “Compliance certification” means a submission to the Department that is required under subpart D of 

this regulation to report a NOX Budget source’s or a NOX Budget unit’s compliance or noncompliance 

with this regulation and that is signed by the NOX authorized account representative in accordance with 

subpart B of this regulation.

(n) “Compliance account” means a NOX Allowance Tracking System account, established by the EPA 

for a NOX Budget unit under subpart F of this regulation, 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.

(o) “Continuous emission monitoring system” or “CEMS” means the equipment required under subpart H 

of this regulation 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 40 CFR 
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part 75, 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 regulation;

(4) A continuous moisture monitor when such monitoring is required by subpart H of this regulation; 

and

(5) An automated data acquisition and handling system.

(p) “Control period” means for the year 2004, the period beginning on May 31 and ending on September 

30 of the same year, inclusive. Thereafter, control period shall mean the period beginning May 1 of a year 

and ending on September 30 of the same year, inclusive. 

(q) “Department” means the South Carolina Department of Health and Environmental Control.

(r) “Emissions” means air pollutants exhausted from a unit or source into the atmosphere, as measured, 

recorded, and reported to the EPA by the NOX authorized account representative and as determined by 

the EPA in accordance with subpart H of this regulation.

(s) “Energy Information Administration” means the Energy Information Administration of the United

States Department of Energy.

(t) “EPA” means the United States Environmental Protection Agency.

(u) “Excepted monitoring system” means a monitoring system that follows the procedures and

requirements of 40 CFR part 75 section 75.19 or of appendix D or E of 40 CFR part 75 for approved 

exceptions to the use of continuous monitoring systems.

(v) “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.

(w) “Fossil fuel” means natural gas, petroleum, coal, or any form of solid, liquid, or gaseous fuel derived 

from such material. 

(x) “Fossil fuel-fired” means, with regard to a unit:

(1) For units that commenced operation before January 1, 1996, the combination 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 1995, or if a unit had not heat input in 1995, during 

the last year of operation of the unit prior to 1995;

(2) For units that commenced operation on or after January 1, 1996, the combination of fossil fuel, 

alone or in combination with any other fuel, where fossil fuel actually combusted comprises more than 50 
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percent of the annual heat input on a Btu basis during any year.

(3) Notwithstanding the definition set forth in 96.2(x)(1) above, a unit shall be deemed fossil fuel-fired 

if on any year after January 1, 2001, the fossil fuel actually combusted comprises more than 50 percent of 

the annual heat input on a Btu basis. 

(y) “General account” means a NOX Allowance Tracking System account, established under subpart F of 

this regulation, that is not a compliance account or an overdraft account. 

(z) “Generator” means a device that produces electricity.

(aa) “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 EPA by the NOX authorized account representative and as determined by the EPA in accordance 

with subpart H of this regulation, and does not include the heat derived from preheated combustion air, 

recirculated flue gases, or exhaust from other sources. 

(bb) “Life-of-the-unit, firm power contractual arrangement” means a unit participation power sales

agreement under which a 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. 

(cc) “Low mass emissions unit” means an affected unit that is a gas-fired or oil-fired unit, burns only 

natural gas or fuel oil and qualifies under 40 CFR part 75 section 75.19.

(dd) “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. 

(ee) “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 40 CFR part 75

to report heat input, this value should be calculated, in accordance with 40 CFR part 75, 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 40 CFR part 75, using the 

maximum potential flowrate and either the maximum carbon dioxide concentration (in percent CO2) or the 

minimum oxygen concentration (in percent O2). 

(ff) “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 40 CFR part 75, using the maximum potential 
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nitrogen oxides concentration as defined in section 2 of appendix A of 40 CFR part 75, 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.

(gg) “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.

(hh) “Monitoring system” means any monitoring system that meets the requirements of subpart H of this 

regulation, including a continuous emissions monitoring system, an excepted monitoring system, or an

alternative monitoring system.

(ii) “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. 

(jj) “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. 

(kk) “Non-Title V permit” means a federally enforceable permit administered by the Department pursuant 

to the CAA and regulatory authority under the CAA, other than Title V of the CAA and South Carolina 

Regulation 61-62.70, Title V Operating Permit Program.

(ll) “NOX allowance” means an authorization by the Department 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. 

(mm) “NOX allowance deduction” or “deduct NOX allowances” means the permanent withdrawal of 

NOX allowances by the EPA 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 regulation, or for any other allowance surrender obligation 

under this regulation.

(nn) “NOX allowances held” or “hold NOX allowances” means the NOX allowances recorded by the 

EPA, or submitted to the EPA for recordation, in accordance with subparts F and G of this regulation, in a 

NOX Allowance Tracking System account. 

(oo) “NOX Allowance Tracking System” means the system by which the EPA records allocations,

deductions, and transfers of NOX allowances under the NOX Budget Trading Program. 

(pp) “NOX Allowance Tracking System account” means an account in the NOX Allowance Tracking 

System established by the EPA for purposes of recording the allocation, holding, transferring, or deducting 

of NOX allowances. 

(qq) “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 
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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. 

(rr) “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 regulation, 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 regulation, to transfer 

or otherwise dispose of NOX allowances held in the general account.

(ss) “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 Section 96.54(a) 

and (b), adjusted by any deductions of such NOX allowances to account for actual utilization under Section 

96.42(e) for the control period or to account for excess emissions for a prior control period under Section 

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 Section 96.86 or Section 96.87. 

(tt) “NOX Budget opt-in permit” means a NOX Budget permit covering a NOX Budget opt-in source.

(uu) “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 regulation. 

(vv) “NOX Budget permit” means the legally binding and federally enforceable written document, or 

portion of such document, issued by the Department under this regulation, 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.

(ww) “NOX Budget source” means a source that includes one or more NOX Budget units. 

(xx) “NOX Budget Trading Program” means a multi-state nitrogen oxides air pollution control and

emission reduction program established in accordance with this regulation and pursuant to 40 CFR part 51 

section 51.121, as a means of mitigating the interstate transport of ozone and nitrogen oxides, an ozone 

precursor.

(yy) “NOX Budget unit” means a unit that is subject to the NOX Budget Trading Program emissions 

limitation under Section 96.4 or Section 96.80. 

(zz) “Operating” means, with regard to a unit under Sections 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 Section 96.83(a). 

(aaa) “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 Section 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. 
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(bbb) “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 regulation.

(ccc) “Overdraft account” means the NOX Allowance Tracking System account, established by the EPA 

under subpart F of this regulation, for each NOX Budget source where there are two or more NOX Budget 

units. 

(ddd) “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 Section 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 Section 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 Section 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 Section 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.

(eee) “Ozone season” means the period of time beginning May 1 of a year and ending on September 30 of 

the same year, inclusive.

(fff) “Permitting authority” means the South Carolina Department of Health and Environmental Control 

which is authorized by the EPA to issue or revise permits to meet the requirements of the NOX Budget 

Trading Program in accordance with subpart C of this regulation. 

(ggg) “Receive or receipt of” means, when referring to the Department or the EPA, 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 Department or the EPA in the regular course of 

business. 

(hhh) “Recordation, record, or recorded” means, with regard to NOX allowances, the movement of NOX

allowances by the EPA from one NOX Allowance Tracking System account to another, for purposes of 

allocation, transfer, or deduction. 

(iii) “Reference method” means any direct test method of sampling and analyzing for an air pollutant as 

specified in appendix A of 40 CFR part 60. 
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(jjj) “Serial number” means, when referring to NOX allowances, the unique identification number assigned 

to each NOX allowance by the EPA, under Section 96.53(c). 

(kkk) “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.”

(lll) “State” means the State of South Carolina. 

(mmm) “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 NOX Budget Trading Program, for use in a given 

control period.

(nnn) “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. 

(ooo) “Title V operating permit” means a permit issued under Title V of the CAA and 40 CFR part 70 or 

40 CFR part 71, and South Carolina Regulation 61-62.70, Title V Operating Permit Program. 

(ppp) “Title V operating permit regulations” means the regulations that the EPA has approved or issued as 

meeting the requirements of Title V of the CAA and 40 CFR part 70 or 71. 

(qqq) “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 regulation, 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. 

(rrr) “Unit” means a fossil fuel-fired stationary boiler, combustion turbine, or combined cycle system. 

(sss) “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 
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steam pressure (psia) produced by the unit, including steam for use by the unit.

(ttt) “Unit operating day” means a calendar day in which a unit combusts any fuel.

(uuu) “Unit operating hour” or “hour of unit operation” means any hour (or fraction of an hour) during 

which a unit combusts any fuel.

(vvv) “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 40 CFR part 75 if the NOX

Budget unit was otherwise subject to the requirements of 40 CFR part 75 for the year, or will be based on 

the best available data reported to the EPA for the unit if the unit was not otherwise subject to the 

requirements of 40 CFR part 75 for the year.

Section 96.3 - Measurements, Abbreviations, and Acronyms. 

Measurements, abbreviations, and acronyms used in this regulation are defined as follows:

Btu - British thermal unit. 

hr - hour. 

Kwh - kilowatt hour. 

lb - pounds. 

mmBtu - million Btu. 

MWe - megawatt electrical. 

ton - 2000 pounds

CO2 - carbon dioxide. 

NOX - nitrogen oxides. 

O2 - oxygen. 

Section 96.4 - Applicability. 

(a) The following units 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 regulation:

(1) (i) For units that commenced operation before January 1, 1999, a unit serving a generator that 

has a nameplate capacity greater than 25 MWe and, except for a unit that has a SIC code of 4911 or 

4931, produces an annual average of more than one-third of its potential electrical output capacity for sale 

to the electric grid during any three calendar year period.

(ii) For units that commenced operation on or after January 1, 1999, a unit serving at any time a 

generator that has a nameplate capacity greater than 25 MWe and produces electricity for sale.

(2) (i) For units that commenced operation before January 1, 1999, a unit that has a maximum 

design heat input greater than 250 mmBtu/hr and does not serve a generator that has a nameplate capacity 

greater than 25 MWe if any such generator produces an annual average of more than one-third of its 

potential electrical output capacity for sale to the electric grid during any three calendar year period.

(ii) For units that commenced operation on or after January 1, 1999, a unit that has a maximum

design heat input greater than 250 mmBtu/hr that:
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(A) At no time served a generator producing electricity for sale; or

(B) At any time served a generator producing electricity for sale, if any such generator has 

a nameplate capacity of 25 MWe or less and has the potential to use no more than 50 percent of the 

potential electrical output capacity of the unit.

(b)(1) Notwithstanding paragraph (a) of this section, a unit under paragraph (a)(1) or (a)(2) of this section 

that has a federally enforceable permit restricting the unit to the combustion of only natural gas or fuel oil 

and includes a NOX emission limitation restricting NOX emissions during a control period to 25 tons or less 

and that includes the special provisions in paragraph (b)(4) of this section shall be exempt from the 

requirements of the NOX Budget Trading Program, except for the provisions of this paragraph, Section 

96.2, Section 96.3, Section 96.4(a), Section 96.7, and subparts E, F, and G of this regulation. The NOX

emission limitation under this paragraph (b)(1) shall restrict NOX emissions during the control period by 

limiting unit operating hours. The restriction on unit operating hours shall be calculated by dividing 25 tons 

by the unit’s maximum potential hourly NOX mass emissions, which shall equal the unit’s maximum rated 

hourly heat input multiplied by the highest default NOX emission rate otherwise applicable to the unit under 

40 CFR part 75 section 75.19.

(2) The exemption under paragraph (b)(1) of this section shall become effective as follows:

(i) The exemption shall become effective on the date on which the NOX emission limitation and 

the special provisions in the permit under paragraph (b)(1) of this section become final; or

(ii) If the NOX emission limitation and the special provisions in the permit under paragraph (b)(1) 

of this section become final during a control period and after the first date on which the unit operates 

during such control period, then the exemption shall become effective on May 1 of such control period, 

provided that such NOX emission limitation and the special provisions apply to the unit as of such first date 

of operation. If such NOX emission limitation and special provisions do not apply to the unit as of such first 

date of operation, then the exemption under paragraph (b)(1) of this section shall become effective on 

October 1 of the year during which such NOX emission limitation and the special provisions become final.

(3) The Department will provide the EPA written notice of the issuance of such permit under 

paragraph (b)(1) of this section for a unit under paragraph (a)(1) or (a)(2) of this section, and, upon 

request, a copy of the permit.

(4) Special provisions.

(i) A unit exempt under paragraph (b)(1) of this section shall comply with the restriction on unit 

operating hours described in paragraph (b)(1) of this section during the control period in each year. 

(ii) The Department will allocate NOX allowances to the unit under Section 96.41(a) through (c) 

and Section 96.42(a) through (c). For each control period for which the unit is allocated NOX allowances 

under Section 96.41(a) through (c) and Section 96.42(a) through (c):

(A) The owners and operators of the unit must specify a general account, in which the 

EPA will record the NOX allowances, and
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(B) After the EPA records a NOX allowance allocations under Section 96.41(a) through (c) 

and Section 96.42(a) through (c), the EPA will deduct, from the general account under paragraph

(b)(4)(ii)(A) of this section, NOX allowances that are allocated for the same or a prior control period as 

the NOX allowances allocated to the unit under Section 96.41(a) through (c) and Section 96.42(a) through 

(c) and that equal the NOX emission limitation (in tons of NOX) on which the unit’s exemption under 

paragraph (b)(1) of this section is based. The NOX authorized account representative shall ensure that 

such general account contains the NOX allowances necessary for completion of such deduction.

(iii) A unit exempt under this paragraph (b) shall report hours of unit operation during the control 

period in each year to the Department by November 1 of that year.

(iv) For a period of 5 years from the date the records are created, the owners and operators of a 

unit exempt under paragraph (b)(1) of this section shall retain, at the source that includes the unit, records 

demonstrating that the conditions of the federally enforceable permit under paragraph (b)(1) of this section 

were met, including the restriction on fuel use and unit operating hours. The 5-year period for keeping 

records may be extended for cause, at any time prior to the end of the period, in writing by the 

Department or the EPA. The owners and operators bear the burden of proof that the unit met the 

restriction on unit operating hours.

(v) The owners and operators and, to the extent applicable, the NOX authorized account 

representative of a unit exempt under paragraph (b)(1) of this section shall comply with the requirements 

of the NOX Budget Trading Program concerning all periods for which the exemption is not in effect, even 

if such requirements arise, or must be complied with, after the exemption takes effect.

(vi) On the earlier of the following dates, a unit exempt under paragraph (b)(1) of this section 

shall lose its exemption:

(A) The date on which the restriction on fuel use and unit operating hours described in 

paragraph (b)(1) of this section is removed from the unit’s federally enforceable permit or otherwise 

becomes no longer applicable to any control period starting in 2004; or 

(B) The first date on which the unit fails to comply, or with regard to which the owners and 

operators fail to meet their burden of proving that the unit is complying, with the restriction on fuel use and 

unit operating hours described in paragraph (b)(1) of this section during any control period starting in 2004.

(vii) A unit that loses its exemption in accordance with paragraph (b)(4)(vi) of this section shall 

be subject to the requirements of this part. For the purpose of applying permitting requirements under 

subpart C of this regulation, allocating allowances under subpart E of this regulation, and applying

monitoring requirements under subpart H of this regulation, the unit shall be treated as commencing

operation and, if the unit is covered by paragraph (a)(1) of this section, commencing commercial operation 

on the date the unit loses its exemption. 

(viii) A unit that is exempt under paragraph (b)(1) of this section is not eligible to be a NOX

Budget opt-in unit under subpart I of this regulation.

Section 96.5 - Retired Unit Exemption.

(a) This section applies to any NOX Budget unit, other than a NOX Budget opt-in source, that is 
September 24, 2004 62.96-Page 12

permanently retired.

(b) (1) Any NOX Budget unit, other than a NOX Budget opt-in source, that is permanently retired shall be 

exempt from the NOX Budget Trading Program, except for the provisions of this section, Sections 96.2, 

96.3, 96.4, 96.7 and subparts E, F, and G of this regulation.

(2) The exemption under paragraph (b)(1) of this section shall become effective the day on which the 

unit is permanently retired. Within 30 days of permanent retirement, the NOX authorized account 

representative (authorized in accordance with subpart B of this regulation) shall submit a statement to the 

Department otherwise responsible for administering any NOX Budget permit for the unit. A copy of the 

statement shall be submitted to the EPA. The statement shall state (in a format prescribed by the 

Department) that the unit is permanently retired and will comply with the requirements of paragraph (c) of 

this section.

(3) After receipt of the notice under paragraph (b)(2) of this section, the Department will amend any 

permit covering the source at which the unit is located to add the provisions and requirements of the 

exemption under paragraphs (b)(1) and (c) of this section.

(c) Special provisions.

(1) A unit exempt under this section shall not emit any nitrogen oxides, starting on the date that the 

exemption takes effect. The owners and operators of the unit will be allocated allowances in accordance 

with subpart E of this regulation.

(2) (i) A unit exempt under this section and located at a source that is required, or but for this 

exemption would be required, to have a Title V operating permit shall not resume operation unless the 

NOX authorized account representative of the source submits a complete NOX Budget permit application 

under Section 96.22 for the unit not less than 18 months (or such lesser time provided under the 

Department’s Title V operating permits regulations for final action on a permit applic ation) prior to the 

later of May 31, 2004, or the date on which the unit is to first resume operation.

(ii) A unit exempt under this section and located at a source that is required, or but for this 

exemption would be required, to have a non-Title V permit shall not resume operation unless the NOX

authorized account representative of the source submits a complete NOX Budget permit application under 

Section 96.22 for the unit not less than 18 months (or such lesser time provided under the Department’s 

non-Title V permits regulations for final action on a permit application) prior to the later of May 31, 2004,

or the date on which the unit is to first resume operation.

(3) The owners and operators and, to the extent applicable, the NOX authorized account

representative of a unit exempt under this section shall comply with the requirements of the NOX Budget 

Trading Program concerning all periods for which the exemption is not in effect, even if such requirements 

arise, or must be complied with, after the exemption takes effect.

(4) A unit that is exempt under this section is not eligible to be a NOX Budget opt-in source under 

subpart I of this regulation.

(5) For a period of 5 years from the date the records are created, the owners and operators of a unit 

exempt under this section shall retain at the source that includes the unit, records demonstrating that the 
September 24, 2004 62.96-Page 13

unit is permanently retired. The 5-year period for keeping records may be extended for cause, at any time 

prior to the end of the period, in writing by the Department or the EPA. The owners and operators bear 

the burden of proof that the unit is permanently retired.

(6) Loss of exemption.

(i) On the earlier of the following dates, a unit exempt under paragraph (b) of this section shall 

lose its exemption:

(A) The date on which the NOX authorized account representative submits a NOX Budget 

permit application under paragraph (c)(2) of this section; or

(B) The date on which the NOX authorized account representative is required under 

paragraph (c)(2) of this section to submit a NOX Budget permit application.

(ii) For the purpose of applying monitoring requirements under subpart H of this regulation, a unit 

that loses its exemption under this section shall be treated as a unit that commences operation or 

commercial operation on the first date on which the unit resumes operation.

Section 96.6 - Standard Requirements.

(a) Permit Requirements.

(1) The NOX authorized account representative of each NOX Budget source required to have a 

federally enforceable permit and each NOX Budget unit required to have a federally enforceable permit at 

the source shall:

(i) Submit to the Department a complete NOX Budget permit application under Section 96.22 in 

accordance with the deadlines specified in Section 96.21(b) and (c);

(ii) Submit in a timely manner any supplemental information that the Department determines is 

necessary in order to review a NOX Budget permit application and issue or deny a NOX Budget permit.

(2) The owners and operators of each NOX Budget source required to have a federally enforceable 

permit and each NOX Budget unit required to have a federally enforceable permit at the source shall have 

a NOX Budget permit issued by the Department and operate the unit in compliance with such NOX Budget

permit.

(3) The owners and operators of a NOX Budget source that is not otherwise required to have a 

federally enforceable permit are not required to submit a NOX Budget permit application, and to have a 

NOX Budget permit, under subpart C of this regulation for such NOX Budget source. 

(b) Monitoring requirements.

(1) The owners and operators and, to the extent applicable, the NOX authorized account

representative of each NOX Budget source and each NOX Budget unit at the source shall comply with the 

monitoring requirements of subpart H of this regulation.
September 24, 2004 62.96-Page 14

(2) The emissions measurements recorded and reported in accordance with subpart H of this 

regulation shall be used to determine compliance by the unit with the NOX Budget emissions limitation 

under paragraph (c) of this section.

(c) Nitrogen oxides requirements.

(1) The owners and operators of each NOX Budget source and each Budget unit at the source shall 

hold NOX allowances available for compliance deductions under Section 96.54, as of the NOX allowance 

transfer deadline, in the unit’s compliance account and the source’s overdraft account in an amount not 

less than the total NOX emissions for the control period from the unit, as determined in accordance with 

subpart H of this regulation, plus any amount necessary to account for actual utilization under Section 

96.42(e) for the control period.

(2) Each ton of nitrogen oxides emitted in excess of the NOX Budget emissions limitation shall 

constitute a separate violation of this regulation, the CAA, and applicable State law.

(3) A NOX Budget unit shall be subject to the requirements under paragraph (c)(1) of this section 

starting on the later of May 31, 2004, or the date on which the unit commences operation.

(4) NOX allowances shall be held in, deducted from, or transferred among NOX Allowance Tracking 

System accounts in accordance with subparts E, F, G, and I of this regulation.

(5) A NOX allowance shall not be deducted, in order to comply with the requirements under 

paragraph (c)(1) of this section, for a control period in a year prior to the year for which the NOX

allowance was allocated.

(6) A allowance allocated by the Department under the NOX Budget Trading Program is a limited 

authorization to emit one ton of nitrogen oxides in accordance with the NOX Budget Trading Program. No 

provision of the NOX Budget Trading Program, the NOX Budget permit application, the NOX Budget 

permit, or an exemption under Section 96.5 and no provision of law shall be construed to limit the authority 

of the State to terminate or limit such authorization.

(7) A NOX allowance allocated by the Department under the NOX Budget Trading Program does not 

constitute a property right.

(8) Upon recordation by the EPA under subpart F, G, or I of this regulation, every allocation, transfer, 

or deduction of a NOX allowance to or from a NOX Budget unit's compliance account or the overdraft 

account of the source where the unit is located is deemed to amend automatically, and become a part of, 

any NOX Budget permit of the NOX Budget unit by operation of law without any further review.

(d) Excess emissions requirements.

(1) The owners and operators of a NOX Budget unit that has excess emissions in any control period 

shall:

(i) Surrender the NOX allowances required for deduction under Section 96.54(d)(1); and

(ii) Pay any fine, penalty, or assessment or comply with any other remedy imposed under 
September 24, 2004 62.96-Page 15

Section 96.54(d)(3).

(e) Recordkeeping and Reporting Requirements.

(1) Unless otherwise provided, the owners and operators of the NOX Budget source and each NOX

Budget unit at the source shall keep on site at the source each of the following documents for a period of 5 

years from the date the document is created. This period may be extended for cause, at any time prior to 

the end of 5 years, in writing by the Department or the EPA.

(i) The account certificate of representation for the NOX authorized account representative for 

the source and each NOX Budget unit at the source and all documents that demonstrate the truth of the 

statements in the account certificate of representation, in accordance with Section 96.13; provided that the 

certificate and documents shall be retained on site at the source beyond such 5-year period until such 

documents are superseded because of the submission of a new account certificate of representation 

changing the NOX authorized account representative.

(ii) All emissions monitoring information, in accordance with subpart H of this regulation;

provided that to the extent that subpart H of this regulation provides for a 3-year period for recordkeeping, 

the 3-year period shall apply.

(iii) Copies of all reports, compliance certifications, and other submissions and all records made 

or required under the NOX Budget Trading Program.

(iv) Copies of all documents used to complete a NOX Budget permit application and any other 

submission under the NOX Budget Trading Program or to demonstrate compliance with the requirements 

of the NOX Budget Trading Program.

(2) The NOX authorized account representative of a NOX Budget source and each NOX Budget unit 

at the source shall submit the reports and compliance certifications required under the NOX Budget 

Trading Program, including those under subparts D, H, or I of this regulation.

(f) Liability.

(1) Any person who knowingly violates any requirement or prohibition of the NOX Budget Trading 

Program, a NOX Budget permit, or an exemption under Section 96.5 shall be subject to enforcement 

pursuant to applicable State or Federal law. 

(2) Any person who knowingly makes a false material statement in any record, submission, or report 

under the NOX Budget Trading Program shall be subject to criminal enforcement pursuant to the

applicable State or Federal law.

(3) No permit revision shall excuse any violation of the requirements of the NOX Budget Trading 

Program that occurs prior to the date that the revision takes effect.

(4) Each NOX Budget source and each NOX Budget unit shall meet the requirements of the NOX

Budget Trading Program.

(5) Any provision of the NOX Budget Trading Program that applies to a NOX Budget source 
September 24, 2004 62.96-Page 16

(including a provision applicable to the NOX authorized account representative of a NOX Budget source) 

shall also apply to the owners and operators of such source and of the NOX Budget units at the source.

(6) Any provision of the NOX Budget Trading Program that applies to a NOX Budget unit (including a 

provision applicable to the NOX authorized account representative of a NOX budget unit) shall also apply 

to the owners and operators of such unit. Except with regard to the requirements applicable to units with a 

common stack under subpart H of this regulation, the owners and operators and the NOX authorized 

account representative of one NOX Budget unit shall not be liable for any violation by any other NOX

Budget unit of which they are not owners or operators or the NOX authorized account representative and 

that is located at a source of which they are not owners or operators or the NOX authorized account 

representative.

(g) Effect on Other Authorities. No provision of the NOX Budget Trading Program, a NOX Budget permit 

application, a NOX Budget permit, or an exemption under Section 96.5 shall be construed as exempting or 

excluding the owners and operators and, to the extent applicable, the NOX authorized account

representative of a NOX Budget source or NOX Budget unit from compliance with any other provision of 

the applicable, approved State implementation plan, a federally enforceable permit, or the CAA.

Section 96.7 - Computation of Time.

(a) Unless otherwise stated, any time period scheduled, under the NOX Budget Trading Program, to begin 

on the occurrence of an act or event shall begin on the day the act or event occurs.

(b) Unless otherwise stated, any time period scheduled, under the NOX Budget Trading Program, to begin 

before the occurrence of an act or event shall be computed so that the period ends the day before the act 

or event occurs.

(c) Unless otherwise stated, if the final day of any time period, under the NOX Budget Trading Program, 

falls on a weekend or a State or Federal holiday, the time period shall be extended to the next business 

day.

SUBPART B - NOX AUTHORIZED ACCOUNT REPRESENTATIVE FOR NOX BUDGET 

SOURCES

Section 96.10 - Authorization and Responsibilities of the NOX Authorized Account

Representative.

(a) Except as provided under Section 96.11, each NOX Budget source, including all NOX Budget units at 

the source, shall have one and only one NOX authorized account representative, with regard to all matters 

under the NOX Budget Trading Program concerning the source or any NOX Budget unit at the source.

(b) The NOX authorized account representative of the NOX Budget source shall be selected by an 

agreement binding on the owners and operators of the source and all NOX Budget units at the source. 

(c) Upon receipt by the EPA of a complete account certificate of representation under Section 96.13, the 

NOX authorized account representative of the source shall represent and, by his or her representations, 

actions, inactions, or submissions, legally bind each owner and operator of the NOX Budget source 
September 24, 2004 62.96-Page 17

represented and each NOX Budget unit at the source in all matters pertaining to the NOX Budget Trading 

Program, not withstanding any agreement between the NOX authorized account representative and such 

owners and operators. The owners and operators shall be bound by any decision or order issued to the 

NOX authorized account representative by the Department, the EPA, or a court regarding the source or 

unit.

(d) No NOX Budget permit shall be issued, and no NOX Allowance Tracking System account shall be 

established for a NOX Budget unit at a source, until the EPA has received a complete account certificate 

of representation under Section 96.13 for a NOX authorized account representative of the source and the 

NOX Budget units at the source.

(e) (1) Each submission under the NOX Budget Trading Program shall be submitted, signed, and certified 

by the NOX authorized account representative for each NOX Budget source on behalf of which the 

submission is made. Each such submission shall include the following certification statement by the NOX

authorized account representative: “I am authorized to make this submission on behalf of the owners and 

operators of the NOX Budget sources or NOX Budget units for which the submission is made. I certify 

under penalty of law that I have personally examined, and am familiar with, the statements and information 

submitted in this document and all its attachments. Based on my inquiry of those individuals with primary 

responsibility for obtaining the information, I certify that the statements and information are to the best of 

my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for 

submitting false statements and information or omitting required statements and information, including the 

possibility of fine or imprisonment.” 

(2) The Department and the EPA will accept or act on a submission made on behalf of owner or 

operators of a NOX Budget source or a NOX Budget unit only if the submission has been made, signed, 

and certified in accordance with paragraph (e)(1) of this section.

Section 96.11 - Alternate NOX Authorized Account Representative.

(a) An account certificate of representation may designate one and only one alternate NOX authorized 

account representative who may act on behalf of the NOX authorized account representative. The 

agreement by which the alternate NOX authorized account representative is selected shall include a 

procedure for authorizing the alternate NOX authorized account representative to act in lieu of the NOX

authorized account representative.

(b) Upon receipt by the EPA of a complete account certificate of representation under Section 96.13, any 

representation, action, inaction, or submission by the alternate NOX authorized account representative shall 

be deemed to be a representation, action, inaction, or submission by the NOX authorized account 

representative.

(c) Except in this section and Sections 96.10(a), 96.12, 96.13, and 96.51, whenever the term “NOX

authorized account representative” is used in this regulation, the term shall be construed to include the 

alternate NOX authorized account representative.

Section 96.12 - Changing the NOX Authorized Account Representative and the Alternate NOX

Authorized Account Representative; Changes in the Owners and Operators.

(a) Changing the NOX authorized account representative. The NOX authorized account representative 
September 24, 2004 62.96-Page 18

may be changed at any time upon receipt by the EPA of a superseding complete account certificate of 

representation under Section 96.13. Notwithstanding any such change, all representations, actions,

inactions, and submissions by the previous NOX authorized account representative prior to the time and 

date when the EPA receives the superseding account certificate of representation shall be binding on the 

new NOX authorized account representative and the owners and operators of the NOX Budget source and 

the NOX Budget units at the source. 

(b) Changing the alternate NOX authorized account representative. The alternate NOX authorized account 

representative may be changed at any time upon receipt by the EPA of a superseding complete account 

certificate of representation under Section 96.13. Notwithstanding any such change, all representations, 

actions, inactions, and submissions by the previous alternate NOX authorized account representative prior 

to the time and date when the EPA receives the superseding account certificate of representation shall be 

binding on the new alternate NOX authorized account representative and the owners and operators of the 

NOX Budget source and the NOX Budget units at the source. 

(c) Changes in the owners and operators.

(1) In the event a new owner or operator of a NOX Budget source or a NOX Budget unit is not 

included in the list of owners and operators submitted in the account certificate of representation, such 

new owner or operator shall be deemed to be subject to and bound by the account certificate of 

representation, the representations, actions, inactions, and submissions of the NOX authorized account 

representative and any alternate NOX authorized account representative of the source or unit, and the 

decisions, orders, actions, and inactions of the Department or the EPA, as if the new owner or operator 

were included in such list.

(2) Within 30 days following any change in the owners and operators of a NOX Budget source or a 

NOX Budget unit, including the addition of a new owner or operator, the NOX authorized account 

representative or alternate NOX authorized account representative shall submit a revision to the account 

certificate of representation amending the list of owners and operators to include the change.

Section 96.13 - Account Certificate of Representation.

(a) A complete account certificate of representation for a NOX authorized account representative or an 

alternate NOX authorized account representative shall include the following elements in a format

prescribed by the EPA:

(1) Identification of the NOX Budget source and each NOX Budget unit at the source for which the 

account certificate of representation is submitted.

(2) The name, address, e-mail address (if any), telephone number, and facsimile transmission number 

(if any) of the NOX authorized account representative and any alternate NOX authorized account 

representative.

(3) A list of the owners and operators of the NOX Budget source and of each NOX Budget unit at the 

source.

(4) The following certification statement by the NOX authorized account representative and any 

alternate NOX authorized account representative: “I certify that I was selected as the NOX authorized 
September 24, 2004 62.96-Page 19

account representative or alternate NOX authorized account representative, as applicable, by an

agreement binding on the owners and operators of the NOX Budget source and each NOX Budget unit at 

the source. I certify that I have all the necessary authority to carry out my duties and responsibilities under 

the NOX Budget Trading Program on behalf of the owners and operators of the NOX Budget source and 

of each NOX Budget unit at the source and that each such owner and operator shall be fully bound by my 

representations, actions, inactions, or submissions and by any decision or order issued to me by the 

Department, the EPA, or a court regarding the source or unit.” 

(5) The signature of the NOX authorized account representative and any alternate NOX authorized 

account representative and the dates signed.

(b) Unless otherwise required by the Department or the EPA, documents of agreement referred to in the 

account certificate of representation shall not be submitted to the Department or the EPA. Neither the 

Department nor the EPA shall be under any obligation to review or evaluate the sufficiency of such 

documents, if submitted. 

Section 96.14 - Objections Concerning the NOX Authorized Account Representative.

(a) Once a complete account certificate of representation under Section 96.13 has been submitted and 

received, the Department and the EPA will rely on the account certificate of representation unless and 

until a superseding complete account certificate of representation under Section 96.13 is received by the 

EPA.

(b) Except as provided in Section 96.12(a) or (b), no objection or other communication submitted to the 

Department or the EPA concerning the authorization, or any representation, action, inaction, or submission 

of the NOX authorized account representative shall affect any representation, action, inaction, or

submission of the NOX authorized account representative or the finality of any decision or order by the 

Department or the EPA under the NOX Budget Trading Program. 

(c) Neither the Department nor the EPA will adjudicate any private legal dispute concerning the

authorization or any representation, action, inaction, or submission of any NOX authorized account 

representative, including private legal disputes concerning the proceeds of NOX allowance transfers. 

SUBPART C - PERMITS

Section 96.20 - General NOX Budget Trading Program Permit Requirements.

(a) For each NOX Budget source required to have a federally enforceable permit, such permit shall include 

a NOX Budget permit administered by the Department.

(1) For NOX Budget sources required to have a Title V operating permit, the NOX Budget portion of 

the Title V permit shall be administered in accordance with the Department’s Title V operating permits 

regulations promulgated under 40 CFR part 70 or 71, except as provided otherwise by this subpart or 

subpart I of this regulation. The applicable provisions of such Title V operating permits regulations shall 

include, but are not limited to, those provisions addressing operating permit applications, operating permit 

application shield, operating permit duration, operating permit shield, operating permit issuance, operating 

permit revision and reopening, public participation, State review, and review by the EPA.
September 24, 2004 62.96-Page 20

(2) For NOX Budget sources required to have a non-Title V permit, the NOX Budget portion of the 

non-Title V permit shall be administered in accordance with the Department’s regulations promulgated to 

administer non-Title V permits, except as provided otherwise by this subpart or subpart I of this regulation. 

The applicable provisions of such non-Title V permits regulations may include, but are not limited to, 

provisions addressing permit applications, permit application shield, permit duration, permit shield, permit 

issuance, permit revision and reopening, public participation, State review, and review by the EPA.

(b) Each NOX Budget permit (including a draft or proposed NOX Budget permit, if applicable) shall 

contain all applicable NOX Budget Trading Program requirements and shall be a complete and segregable 

portion of the permit under paragraph (a) of this section.

Section 96.21 - NOX Budget Permit Applications.

(a) Duty to apply. The NOX authorized account representative of any NOX Budget source required to 

have a federally enforceable permit shall submit to the Department a complete NOX Budget permit 

application under Section 96.22 by the applicable deadline in paragraph (b) of this section.

(b) (1) For NOX Budget sources required to have a Title V operating permit:

(i) For any source, with one or more NOX Budget units under Section 96.4 that commence 

operation before January 1, 2000, the NOX authorized account representative shall submit a complete NOX

Budget permit application under Section 96.22 covering such NOX Budget units to the Department at least 

18 months (or such lesser time provided under the Department’s Title V operating permits regulations for 

final action on a permit application) before May 31, 2004.

(ii) For any source, with any NOX Budget unit under Section 96.4 that commences operation on 

or after January 1, 2000, the NOX authorized account representative shall submit a complete NOX Budget 

permit application under Section 96.22 covering such NOX Budget unit to the Department at least 18 

months (or such lesser time provided under the Department’s Title V operating permits regulations for 

final action on a permit application) before the later of May 31, 2004, or the date on which the NOX

Budget unit commences operation.

(2) For NOX Budget sources required to have a non-Title V permit:

(i) For any source, with one or more NOX Budget units under Section 96.4 that commence 

operation before January 1, 2000, the NOX authorized account representative shall submit a complete NOX

Budget permit application under Section 96.22 covering such NOX Budget units to the Department at least 

18 months (or such lesser time provided under the Department’s non-Title V permits regulations for final 

action on a permit application) before May 31, 2004.

(ii) For any source, with any NOX Budget unit under Section 96.4 that commences operation on 

or after January 1, 2000, the NOX authorized account representative shall submit a complete NOX Budget 

permit application under Section 96.22 covering such NOX Budget unit to the Department at least 18 

months (or such lesser time provided under the Department’s non-Title V permits regulations for final 

action on a permit application) before the later of May 31, 2004, or the date on which the NOX Budget unit 

commences operation.
September 24, 2004 62.96-Page 21

(c) Duty to Reapply.

(1) For a NOX Budget source required to have a Title V operating permit, the NOX authorized 

account representative shall submit a complete NOX Budget permit application under Section 96.22 for the 

NOX Budget source covering the NOX Budget units at the source in accordance with the Department’s 

Title V operating permits regulations addressing operating permit renewal.

(2) For a NOX Budget source required to have a non-Title V permit, the NOX authorized account 

representative shall submit a complete NOX Budget permit application under Section 96.22 for the NOX

Budget source covering the NOX Budget units at the source in accordance with the Department’s nonTitle V permits regulations addressing permit renewal.

Section 96.22 - Information Requirements for NOX Budget Permit Applications.

A complete NOX Budget permit application shall include the following elements concerning the NOX

Budget source for which the application is submitted, in a format prescribed by the Department:

(a) Identification of the NOX Budget source, including plant name and the ORIS (Office of Regulatory 

Information Systems) or facility code assigned to the source by the Energy Information Administration, if 

applicable;

(b) Identification of each NOX Budget unit at the NOX Budget source and whether it is a NOX Budget unit 

under Section 96.4 or under subpart I of this regulation; 

(c) The standard requirements under Section 96.6; and

(d) For each NOX Budget opt-in unit at the NOX Budget source, the following certification statements by 

the NOX authorized account representative:

(1) “I certify that each unit for which this permit application is submitted under subpart I of this 

regulation is not a NOX Budget unit under 40 CFR part 96.4 and is not covered by a retired unit exemption 

under 40 CFR part 96.5 that is in effect.”

(2) If the application is for an initial NOX Budget opt-in permit, “I certify that each unit for which this 

permit application is submitted under subpart I is currently operating, as that term is defined under 40 CFR 

part 96.2.”

Section 96.23 - NOX Budget Permit Contents.

(a) Each NOX Budget permit (including any draft or proposed NOX Budget permit, if applicable) will 

contain, in a format prescribed by the Department, all elements required for a complete NOX Budget 

permit application under Section 96.22.

(b) Each NOX Budget permit is deemed to incorporate automatically the definitions of terms under Section 

96.2 and, upon recordation by the EPA under subparts F, G, or I of this regulation, every allocation, 

transfer, or deduction of a NOX allowance to or from the compliance accounts of the NOX Budget units 

covered by the permit or the overdraft account of the NOX Budget source covered by the permit.
September 24, 2004 62.96-Page 22

Section 96.24 - Effective Date of Initial NOX Budget Permit.

The initial NOX Budget permit covering a NOX Budget unit for which a complete NOX Budget permit 

application is timely submitted under Section 96.21(b) shall become effective by the later of:

(a) May 31, 2004;

(b) May 1 of the year in which the NOX Budget unit commences operation, if the unit commences 

operation on or before May 1 of that year; 

(c) The date on which the NOX Budget unit commences operation, if the unit commences operation during 

a control period; or

(d) May 1 of the year following the year in which the NOX Budget unit commences operation, if the unit 

commences operation on or after October 1 of the year.

Section 96.25 - NOX Budget Permit Revisions.

(a) For a NOX Budget source with a Title V operating permit, except as provided in Section 96.23(b), the 

Department will revise the NOX Budget permit, as necessary, in accordance with the Department’s Title 

V operating permits regulations addressing permit revisions.

(b) For a NOX Budget source with a non-Title V permit, except as provided in Section 96.23(b), the 

Department will revise the NOX Budget permit, as necessary, in accordance with the Department’s nonTitle V permits regulations addressing permit revisions.

SUBPART D - COMPLIANCE CERTIFICATION

Section 96.30 - Compliance Certification Report.

(a) Applicability and deadline. For each control period in which one or more NOX Budget units at a source 

are subject to the NOX Budget emissions limitation, the NOX authorized account representative of the 

source shall submit to the Department and the EPA by November 30 of that year, a compliance 

certification report for each source covering all such units.

(b) Contents of report. The NOX authorized account representative shall include in the compliance 

certification report under paragraph (a) of this section the following elements, in a format prescribed by 

the EPA, concerning each unit at the source and subject to the NOX Budget emissions limitation for the 

control period covered by the report:

(1) Identification of each NOX Budget unit;

(2) At the NOX authorized account representative's option, the serial numbers of the NOX allowances 

that are to be deducted from each unit’s compliance account under Section 96.54 for the control period;

(3) At the NOX authorized account representative’s option, for units sharing a common stack and 

having NOX emissions that are not monitored separately or apportioned in accordance with subpart H of 
September 24, 2004 62.96-Page 23

this regulation, the percentage of allowances that is to be deducted from each unit's compliance account 

under Section 96.54(e); and

(4) The compliance certification under paragraph (c) of this section.

(c) Compliance certification. In the compliance certification report under paragraph (a) of this section, the 

NOX authorized account representative shall certify, based on reasonable inquiry of those persons with 

primary responsibility for operating the source and the NOX Budget units at the source in compliance with 

the NOX Budget Trading Program, whether each NOX Budget unit for which the compliance certification 

is submitted was operated during the calendar year covered by the report in compliance with the

requirements of the NOX Budget Trading Program applicable to the unit, including:

(1) Whether the unit was operated in compliance with the NOX Budget emissions limitation;

(2) Whether the monitoring plan that governs the unit has been maintained to reflect the actual 

operation and monitoring of the unit, and contains all information necessary to attribute NOX emissions to 

the unit, in accordance with subpart H of this regulation;

(3) Whether all the NOX emissions from the unit, or a group of units (including the unit) using a 

common stack, were monitored or accounted for through the missing data procedures and reported in the 

quarterly monitoring reports, including whether conditional data were reported in the quarterly reports in 

accordance with subpart H of this regulation. If conditional data were reported, the owner or operator 

shall indicate whether the status of all conditional data has been resolved and all necessary quarterly report 

resubmissions has been made;

(4) Whether the facts that form the basis for certification under subpart H of this regulation of each 

monitor at the unit or a group of units (including the unit) using a common stack, or for using an excepted 

monitoring method or alternative monitoring method approved under subpart H of this regulation, if any, 

has changed; and

(5) If a change is required to be reported under paragraph (c)(4) of this section, specify the nature of 

the change, the reason for the change, when the change occurred, and how the unit's compliance status 

was determined subsequent to the change, including what method was used to determine emissions when 

a change mandated the need for monitor recertification.

Section 96.31 - Department’s and EPA’s Action On Compliance Certifications.

(a) The Department or the EPA may review and conduct independent audits concerning any compliance 

certification or any other submission under the NOX Budget Trading Program and make appropriate 

adjustments of the information in the compliance certifications or other submissions.

(b) The EPA may deduct NOX allowances from or transfer NOX allowances to a unit’s compliance 

account or a source’s overdraft account based on the information in the compliance certifications or other 

submissions, as adjusted under paragraph (a) of this section.

SUBPART E - NOX ALLOWANCE ALLOCATIONS
September 24, 2004 62.96-Page 24

Section 96.40 - State Trading Program Budget.

The State trading program budget allocated by the Department under Section 96.42 for a control 

period is 19,678 tons. In accordance with Sections 96.41 and 96.42, the Department will allocate to the 

NOX Budget units under Section 96.4(a) for each control period a total number of NOX allowances equal 

to the trading program budget specified above, less the sum of the NOX emission limitations (in tons) for 

each unit exempt under Section 96.4(b) that is not allocated any NOX allowances under Section 96.42(b) 

or (c) for the control period and whose NOX emission limitation (in tons of NOX) is not included in the 

amount calculated under Section 96.42(d)(5)(ii)(B).

Section 96.41 - Timing Requirements for NOX Allowance Allocations.

(a) By the effective date of this regulation, the Department will submit to the EPA the NOX allowance 

allocations, in accordance with Section 96.42, for the control periods in 2004, 2005, and 2006.

(b) By April 1, 2004, and by April 1 of each five years thereafter, the Department will submit to the EPA 

the NOX allowance allocations, in accordance with Section 96.42, for the control periods in the years that 

are three, four, five, six and seven years after the applicable deadline for submission under this paragraph 

(b). If the Department fails to submit to the EPA the NOX allowance allocations in accordance with this 

paragraph (b), the EPA will allocate, for the applicable control period, the same number of NOX

allowances as were allocated for the preceding control period.

(c) By April 1, 2005 and April 1 of each year thereafter, the Department will submit to the EPA the NOX

allowance allocations, in accordance with Section 96.42, for any NOX allowances remaining in the 

allocation set-aside for the prior control period. 

Section 96.42 - NOX Allowance Allocations.

(a) (1) The heat input (in mmBtu) used for calculating NOX allowance allocations for each NOX Budget 

unit under Section 96.4 will be:

(i) For a NOX allowance allocation under Section 96.41(a), the average of the two highest 

amounts of the unit’s heat input for the control periods in 1995, 1996, 1997, 1998, and 1999, if the unit is 

under Section 96.4(a)(1), or if the unit is under Section 96.4(a)(2), the NOX allowance shall be as set forth 

in the State Implementation Plan; and

(ii) For a NOX allowance allocation under Section 96.41(b), the average of the two highest 

amounts of the unit’s heat input for the control period in the years that are four, five, six, seven and eight 

years before the first year for which the NOX allocation is being calculated or if a unit only operated 

during one of these control periods the heat input during the single year of operation. 

(2) The unit’s total heat input for the control period in each year specified under paragraph (a)(1) of 

this section will be determined in accordance with 40 CFR part 75 if the NOX Budget unit was otherwise 

subject to the requirements of 40 CFR part 75 for the year, or will be based on the best available data 

reported to the Department for the unit if the unit was not otherwise subject to the requirements of 40

CFR part 75 for the year.

(b) For each control period under Section 96.41, the Department will allocate to all NOX Budget units 
September 24, 2004 62.96-Page 25

under Section 96.4(a)(1) in the State that commenced operation before May 1 of the period used to 

calculate heat input under paragraph (a)(1) of this section, a total number of NOX allowances equal to 96 

percent in 2004, 2005, and 2006, or 97 percent thereafter, of the tons of NOX emissions in the State trading 

program budget apportioned to electric generating units under Section 96.40 in accordance with the 

following procedures:

(1) The Department will allocate NOX allowances to each NOX Budget unit under Section 96.4(a)(1) 

in an amount equaling 0.15 lb/mmBtu multiplied by the heat input determined under paragraph (a) of this 

section, rounded to the nearest whole NOX allowance as appropriate.

(2) If the initial total number of NOX allowances allocated to all NOX Budget units under Section 

96.4(a)(1) in the State for a control period under paragraph (b)(1) of this section does not equal 96 percent 

in 2004, 2005, and 2006, or 97 percent thereafter, of the number of tons of NOX emissions in the State 

trading program budget apportioned to electric generating units, the Department will adjust the total

number of NOX allowances allocated to all such NOX Budget units for the control period under paragraph 

(b)(1) of this section so that the total number of NOX allowances allocated equals 96 percent in 2004, 

2005, and 2006, or 97 percent thereafter, of the number of tons of NOX emissions in the State trading 

program budget apportioned to electric generating units. This adjustment will be made by: multiplying each 

unit’s allocation by 96 percent in 2004, 2005, and 2006, or 97 percent thereafter, of the number of tons of 

NOX emissions in the State trading program budget apportioned to electric generating units divided by the 

total number of NOX allowances allocated under paragraph (b)(1) of this section, and rounding to the 

nearest whole NOX allowance as appropriate. 

(c) For each control period under Section 96.41, the Department will allocate to all NOX Budget units 

under Section 96.4(a)(2) in the State that commenced operation before May 1 of the period used to 

calculate heat input under paragraph (a)(1) of this section, a total number of NOX allowances equal to 96 

percent in 2004, 2005, and 2006, or 97 percent thereafter, of the tons of NOX emissions in the State trading 

program budget apportioned to non-electric generating units under Section 96.40 in accordance with the 

following procedures:

(1) The Department will allocate NOX allowances to each NOX Budget unit under Section 96.4(a)(2) 

in an amount equaling 0.17 lb/mmBtu multiplied by the heat input determined under paragraph (a) of this 

section, rounded to the nearest whole NOX allowance as appropriate.

(2) If the initial total number of NOX allowances allocated to all NOX Budget units under Section 

96.4(a)(2) in the State for a control period under paragraph (c)(1) of this section does not equal 96 percent 

in 2004, 2005, and 2006, or 97 percent thereafter, of the number of tons of NOX emissions in the State 

trading program budget apportioned to non-electric generating units, the Department will adjust the total 

number of NOX allowances allocated to all such NOX Budget units for the control period under paragraph 

(c)(1) of this section so that the total number of NOX allowances allocated equals 96 percent in 2004, 

2005, and 2006, or 97 percent thereafter, of the number of tons of NOX emissions in the State trading 

program budget apportioned to non-electric generating units. This adjustment will be made by: multiplying 

each unit’s allocation by 96 percent in 2004, 2005, and 2006, or 97 percent thereafter, of the number of 

tons of NOX emissions in the State trading program budget apportioned to non-electric generating units 

divided by the total number of NOX allowances allocated under paragraph (c)(1) of this section, and 

rounding to the nearest whole NOX allowance as appropriate. 

(d) For each control period under Section 96.41, the Department will allocate NOX allowances to NOX
September 24, 2004 62.96-Page 26

Budget units under Section 96.4 in the State that commenced operation, or are projected to commence 

operation, on or after May 1 of the year that is four years prior to the first year of the period for which 

NOX allowances are being calculated, in accordance with the following procedures:

(1) The Department will establish one allocation set-aside for each control period. Each allocation 

set-aside will be allocated NOX allowances equal to 4 percent in 2004, 2005, and 2006, or 3 percent 

thereafter, of the tons of NOX emissions in the State trading program budget under Section 96.40, rounded 

to the nearest whole NOX allowance as appropriate.

(2) The NOX authorized account representative of a NOX Budget unit under paragraph (d) of this 

section may submit to the Department a request, in writing or in a format specified by the Department, to 

be allocated NOX allowances for the control period. The NOX allowance allocation request must be 

received on or after the date on which the Department issues a permit to construct the unit and by January 

1 before the control period for which the NOX allowance allocation is requested. 

(3) In a NOX allowance allocation request under paragraph (d)(2) of this section, the NOX authorized 

account representative for units under Section 96.4(a)(1) may request for a control period NOX

allowances in an amount that does not exceed 0.15 lb/mmBtu multiplied by the NOX Budget unit’s 

maximum design heat input (in mmBtu/hr) multiplied by the number of hours remaining in the control 

period starting with the first day in the control period on which the unit operated or is projected to operate. 

 (4) In a NOX allowance allocation request under paragraph (d)(2) of this section, the NOX authorized 

account representative for units under Section 96.4(a)(2) may request for a control period NOX

allowances in an amount that does not exceed 0.17 lb/mmBtu multiplied by the NOX Budget unit’s 

maximum design heat input (in mmBtu/hr) multiplied by the number of hours remaining in the control 

period starting with the first day in the control period on which the unit operated or is projected to operate. 

(5) The Department will review each NOX allowance allocation request under paragraph (d)(2) of 

this and will allocate NOX allowances pursuant to such request as follows:

(i) Upon receipt of the NOX allowance allocation request, the permitting authority will determine 

whether, and will make any necessary adjustments to the request to ensure that, for units under Section 

96.4(a)(1), the control period and the number of allowances specified are consistent with the requirements 

of paragraphs (d)(2) and (3) of this section and, for units under Section 96.4(a)(2), the control period and 

the number of allowances specified are consistent with the requirements of paragraphs(d)(2) and (4) of 

this section.

(ii) The Department will determine the following: 

(A) The sum of the NOX allowances requested (as adjusted under paragraph (d)(5)(i) 

of this section) in all NOX allowance allocation requests under paragraph (d)(2) of this section for the 

control period; and

(B) For units exempt under Section 96.4(b), the sum of the NOX emission limitations 

(in tons of NOX) on which each unit’s exemption under Section 96.4(b) is based.

(iii) If the number of NOX allowances in the allocation set-aside for the control is not less than 

the amount determined under paragraph (d)(5)(ii) of this section, the Department will allocate the amount 
September 24, 2004 62.96-Page 27

of the NOX allowances requested (as adjusted under paragraph (d)(5)(i) of this section) to the NOX

Budget unit for which the allocation request was submitted.

(iv) If the number of NOX allowances in the allocation set-aside for the control is less than the 

amount determined under paragraph (d)(5)(ii) of this section, the Department will allocate, to the NOX

Budget unit for which the allocation request was submitted, the amount of NOX allowances requested (as 

adjusted under paragraph (d)(5)(i) of this section) multiplied by the number of NOX allowances in the 

allocation set-aside for the control period, divided by the amount determined under paragraph (d)(5)(ii) of 

this section, and rounded to the nearest whole number of NOX allowances as appropriate.

(iv) Once an allocation set-aside for a control period has been depleted of all NOX allowances, 

the permitting authority will deny, and will not allocate any NOX allowances pursuant to, any NOX

allowance allocation request under which NOX allowances have not already been allocated for the control 

period.

(6) By no later than March 1 of each control period, the Department will take appropriate action 

under paragraph (d)(5) of this section and notify the NOX authorized account representative that submitted 

the request and the EPA of the number of NOX allowances (if any) allocated for the control period to the 

NOX Budget unit. 

(e) For a NOX Budget unit that is allocated NOX allowances under paragraph (d) of this section for a 

control period, the EPA will deduct NOX allowances under Section 96.54(b) or (e) to account for the 

actual utilization of the unit during the control period. The EPA will calculate the number of NOX

allowances to be deducted to account for the unit’s actual utilization using the following formulas and 

rounding to the nearest whole NOX allowance as appropriate, provided that the number of NOX

allowances to be deducted shall be zero if the number calculated is less than zero:

NOX allowances deducted for actual utilization for units under Section 96.4(a)(1) = (Unit’s NOX

allowances allocated for control period) - (Unit’s actual control period utilization x 0.15 lb/mmBtu); and 

NOX allowances deducted for actual utilization for units under Section 96.4(a)(2) = (Unit’s NOX

allowances allocated for control period) - (Unit’s actual control period utilization x 0.17 lb/mmBtu) 

where:

“Unit’s NOX allowances allocated for control period” is the number of NOX allowances allocated to 

the unit for the control period under paragraph (d) of this section; and

“Unit’s actual control period utilization” is the utilization (in mmBtu), as defined in Section 96.2, of the 

unit during the control period.

(f) After making the deductions for compliance under Section 96.54(b) or (e) for a control period, the EPA 

will notify the Department whether any NOX allowances remain in the allocation set-aside for the control 

period. The Department will allocate any such NOX allowances to the NOX Budget units in the State using 

the following formula and rounding to the nearest whole NOX allowance as appropriate:

Unit’s share of NOX allowances remaining in allocation set-aside = Total NOX allowances remaining in 

allocation set-aside x (Unit’s NOX allowance allocation ÷ State trading program budget excluding

allocation set-aside)
September 24, 2004 62.96-Page 28

where:

“Total NOX allowances remaining in allocation set-aside” is the total number of NOX allowances 

remaining in the allocation set-aside for the control period to which the allocation set-aside applies;

“Unit’s NOX allowance allocation” is the number of NOX allowances allocated under paragraph (b) 

or (c) of this section to the unit for the control period to which the allocation set-aside applies; and

“State trading program budget excluding allocation set-aside” is the State trading program budget 

under Section 96.40 for the control period to which the allocation set-aside applies multiplied by 96 percent 

if the control period is in 2004, 2005, or 2006, or 97 percent if the control period is in any year thereafter, 

rounded to the nearest whole NOX allowance as appropriate. 

SUBPART F - NOX ALLOWANCE TRACKING SYSTEM

Section 96.50 - NOX Allowance Tracking System Accounts.

(a) Nature and function of compliance accounts and overdraft accounts. Consistent with Section 96.51(a), 

the EPA will establish one compliance account for each NOX Budget unit and one overdraft account for 

each source with one or more NOX Budget units. Allocations of NOX allowances pursuant to subpart E of 

this regulation or Section 96.88 and deductions or transfers of NOX allowances pursuant to Section 96.31, 

Section 96.54, Section 96.56, subpart G of this regulation, or subpart I of this regulation will be recorded in 

the compliance accounts or overdraft accounts in accordance with this subpart.

(b) Nature and function of general accounts. Consistent with Section 96.51(b), the EPA will establish, 

upon request, a general account for any person. Transfers of allowances pursuant to subpart G of this 

regulation will be recorded in the general account in accordance with this subpart.

Section 96.51 - Establishment of Accounts.

(a) Compliance accounts and overdraft accounts. Upon receipt of a complete account certificate of 

representation under Section 96.13, the EPA will establish:

(1) A compliance account for each NOX Budget unit for which the account certificate of

representation was submitted; and

(2) An overdraft account for each source for which the account certificate of representation was 

submitted and that has two or more NOX Budget units. 

(b) General accounts.

(1) Any person may apply to open a general account for the purpose of holding and transferring 

allowances. A complete application for a general account shall be submitted to the EPA and shall include 

the following elements in a format prescribed by the EPA:

(i) Name, mailing address, e-mail address (if any), telephone number, and facsimile transmission 
September 24, 2004 62.96-Page 29

number (if any) of the NOX authorized account representative and any alternate NOX authorized account 

representative;

(ii) At the option of the NOX authorized account representative, organization name and type of 

organization;

(iii) A list of all persons subject to a binding agreement for the NOX authorized account 

representative or any alternate NOX authorized account representative to represent their ownership

interest with respect to the allowances held in the general account;

(iv) The following certification statement by the NOX authorized account representative and any 

alternate NOX authorized account representative: “I certify that I was selected as the NOX authorized 

account representative or the NOX alternate authorized account representative, as applicable, by an

agreement that is binding on all persons who have an ownership interest with respect to allowances held in 

the general account. I certify that I have all the necessary authority to carry out my duties and

responsibilities under the NOX Budget Trading Program on behalf of such persons and that each such 

person shall be fully bound by my representations, actions, inactions, or submissions and by any order or 

decision issued to me by the EPA or a court regarding the general account.” 

(v) The signature of the NOX authorized account representative and any alternate NOX

authorized account representative and the dates signed.

(vi) Unless otherwise required by the Department or the EPA, documents of agreement referred 

to in the account certificate of representation shall not be submitted to the Department or the EPA. 

Neither the Department nor the EPA shall be under any obligation to review or evaluate the sufficiency of 

such documents, if submitted. 

(2) Upon receipt by the EPA of a complete application for a general account under paragraph (b)(1) 

of this section: 

(i) The EPA will establish a general account for the person or persons for whom the application 

is submitted. 

(ii) The NOX authorized account representative and any alternate NOX authorized account 

representative for the general account shall represent and, by his or her representations, actions, inactions, 

or submissions, legally bind each person who has an ownership interest with respect to NOX allowances 

held in the general account in all matters pertaining to the NOX Budget Trading Program, not withstanding 

any agreement between the NOX authorized account representative or any alternate NOX authorized 

account representative and such person. Any such person shall be bound by any order or decision issued 

to the NOX authorized account representative or any alternate NOX authorized account representative by 

the EPA or a court regarding the general account. 

(iii) Each submission concerning the general account shall be submitted, signed, and certified by 

the NOX authorized account representative or any alternate NOX authorized account representative for 

the persons having an ownership interest with respect to NOX allowances held in the general account. 

Each such submission shall include the following certification statement by the NOX authorized account 

representative or any alternate NOX authorized account representative any: “I am authorized to make this 

submission on behalf of the persons having an ownership interest with respect to the NOX allowances held 
September 24, 2004 62.96-Page 30

in the general account. I certify under penalty of law that I have personally examined, and am familiar 

with, the statements and information submitted in this document and all its attachments. Based on my 

inquiry of those individuals with primary responsibility for obtaining the information, I certify that the 

statements and information are to the best of my knowledge and belief true, accurate, and complete. I am 

aware that there are significant penalties for submitting false statements and information or omitting

required statements and information, including the possibility of fine or imprisonment.” 

(iv) The EPA will accept or act on a submission concerning the general account only if the 

submission has been made, signed, and certified in accordance with paragraph (b)(2)(iii) of this section.

(3) (i) An application for a general account may designate one and only one NOX authorized 

account representative and one and only one alternate NOX authorized account representative who may 

act on behalf of the NOX authorized account representative. The agreement by which the alternate NOX

authorized account representative is selected shall include a procedure for authorizing the alternate NOX

authorized account representative to act in lieu of the NOX authorized account representative.

(ii) Upon receipt by the EPA of a complete application for a general account under paragraph 

(b)(1) of this section, any representation, action, inaction, or submission by any alternate NOX authorized 

account representative shall be deemed to be a representation, action, inaction, or submission by the NOX

authorized account representative.

(4) (i) The NOX authorized account representative for a general account may be changed at any 

time upon receipt by the EPA of a superseding complete application for a general account under 

paragraph (b)(1) of this section. Notwithstanding any such change, all representations, actions, inactions, 

and submissions by the previous NOX authorized account representative prior to the time and date when 

the EPA receives the superseding application for a general account shall be binding on the new NOX

authorized account representative and the persons with an ownership interest with respect to the

allowances in the general account.

(ii) The alternate NOX authorized account representative for a general account may be changed 

at any time upon receipt by the EPA of a superseding complete application for a general account under 

paragraph (b)(1) of this section. Notwithstanding any such change, all representations, actions, inactions, 

and submissions by the previous alternate NOX authorized account representative prior to the time and 

date when the EPA receives the superseding application for a general account shall be binding on the new 

alternate NOX authorized account representative and the persons with an ownership interest with respect 

to the allowances in the general account.

(iii)(A) In the event a new person having an ownership interest with respect to NOX allowances 

in the general account is not included in the list of such persons in the account certificate of representation, 

such new person shall be deemed to be subject to and bound by the account certificate of representation, 

the representation, actions, inactions, and submissions of the NOX authorized account representative and 

any alternate NOX authorized account representative of the source or unit, and the decisions, orders, 

actions, and inactions of the EPA, as if the new person were included in such list.

(B) Within 30 days following any change in the persons having an ownership interest with 

respect to NOX allowances in the general account, including the addition of persons, the NOX authorized 

account representative or any alternate NOX authorized account representative shall submit a revision to 

the application for a general account amending the list of persons having an ownership interest with 
September 24, 2004 62.96-Page 31

respect to the NOX allowances in the general account to include the change.

(5) (i) Once a complete application for a general account under paragraph (b)(1) of this section has 

been submitted and received, the EPA will rely on the application unless and until a superseding complete 

application for a general account under paragraph (b)(1) of this section is received by the EPA.

(ii) Except as provided in paragraph (b)(4) of this section, no objection or other communication 

submitted to the EPA concerning the authorization, or any representation, action, inaction, or submission of 

the NOX authorized account representative or any alternate NOX authorized account representative for a 

general account shall affect any representation, action, inaction, or submission of the NOX authorized 

account representative or any alternate NOX authorized account representative or the finality of any 

decision or order by the EPA under the NOX Budget Trading Program. 

(iii) The EPA will not adjudicate any private legal dispute concerning the authorization or any 

representation, action, inaction, or submission of the NOX authorized account representative or any

alternate NOX authorized account representative for a general account, including private legal disputes 

concerning the proceeds of NOX allowance transfers. 

(c) Account identification. The EPA will assign a unique identifying number to each account established 

under paragraph (a) or (b) of this section.

Section 96.52 - NOX Allowance Tracking System Responsibilities of NOX Authorized Account 

Representative.

(a) Following the establishment of a NOX Allowance Tracking System account, all submissions to the 

EPA pertaining to the account, including, but not limited to, submissions concerning the deduction or 

transfer of NOX allowances in the account, shall be made only by the NOX authorized account 

representative for the account.

(b) Authorized account representative identification. The EPA will assign a unique identifying number to 

each NOX authorized account representative.

Section 96.53 - Recordation of NOX Allowance Allocations.

(a) The EPA will record the NOX allowances for 2004 in the NOX Budget units’ compliance accounts and 

the allocation set-asides, as allocated under subpart E of this regulation. The EPA will also record the 

NOX allowances allocated under Section 96.88(a)(1) for each NOX Budget opt-in source in its compliance 

account. 

(b) Each year, after the EPA has made all deductions from a NOX Budget unit's compliance account and 

the overdraft account pursuant to Section 96.54, the EPA will record NOX allowances, as allocated to the 

unit under subpart E of this regulation or under Section 96.88(a)(2), in the compliance account for the year 

after the last year for which allowances were previously allocated to the compliance account. Each year, 

the EPA will also record NOX allowances, as allocated under subpart E of this regulation, in the allocation 

set-aside for the year after the last year for which allowances were previously allocated to an allocation 

set-aside. 

(c) Serial numbers for allocated NOX allowances. When allocating NOX allowances to and recording them 
September 24, 2004 62.96-Page 32

in an account, the EPA will assign each NOX allowance a unique identification number that will include 

digits identifying the year for which the NOX allowance is allocated.

Section 96.54 - Compliance.

(a) NOX allowance transfer deadline. The NOX allowances are available to be deducted for compliance 

with a unit’s NOX Budget emissions limitation for a control period in a given year only if the NOX

allowances:

(1) Were allocated for a control period in a prior year or the same year; and 

(2) Are held in the unit’s compliance account, or the overdraft account of the source where the unit is 

located, as of the NOX allowance transfer deadline for that control period or are transferred into the 

compliance account or overdraft account by a NOX allowance transfer correctly submitted for recordation 

under Section 96.60 by the NOX allowance transfer deadline for that control period.

(b) Deductions for compliance.

(1) Following the recordation, in accordance with Section 96.61, of NOX allowance transfers 

submitted for recordation in the unit’s compliance account or the overdraft account of the source where 

the unit is located by the NOX allowance transfer deadline for a control period, the EPA will deduct NOX

allowances available under paragraph (a) of this section to cover the unit’s NOX emissions (as determined 

in accordance with subpart H of this regulation), or to account for actual utilization under Section 96.42(e), 

for the control period:

(i) From the compliance account; and

(ii) Only if no more NOX allowances available under paragraph (a) of this section remain in the 

compliance account, from the overdraft account. In deducting allowances for units at the source from the 

overdraft account, the EPA will begin with the unit having the compliance account with the lowest NOX

Allowance Tracking System account number and end with the unit having the compliance account with 

the highest NOX Allowance Tracking System account number (with account numbers sorted beginning 

with the left-most character and ending with the right-most character and the letter characters assigned 

values in alphabetical order and less than all numeric characters).

(2) The EPA will deduct NOX allowances first under paragraph (b)(1)(i) of this section and then 

under paragraph (b)(1)(ii) of this section:

(i) Until the number of NOX allowances deducted for the control period equals the number of 

tons of NOX emissions, determined in accordance with subpart H of this regulation, from the unit for the 

control period for which compliance is being determined, plus the number of NOX allowances required for 

deduction to account for actual utilization under Section 96.42(e) for the control period; or

(ii) Until no more NOX allowances available under paragraph (a) of this section remain in the 

respective account.

(c) (1) Identification of NOX allowances by serial number. The NOX authorized account representative 

for each compliance account may identify by serial number the NOX allowances to be deducted from the 
September 24, 2004 62.96-Page 33

unit’s compliance account under paragraph (b), (d), or (e) of this section. Such identification shall be made 

in the compliance certification report submitted in accordance with Section 96.30.

(2) First-in, first-out. The EPA will deduct NOX allowances for a control period from the compliance 

account, in the absence of an identification or in the case of a partial identification of NOX allowances by 

serial number under paragraph (c)(1) of this section, or the overdraft account on a first-in, first-out (FIFO) 

accounting basis in the following order:

(i) Those NOX allowances that were allocated for the control period to the unit under subpart E 

or I of this regulation;

(ii) Those NOX allowances that were allocated for the control period to any unit and transferred 

and recorded in the account pursuant to subpart G of this regulation, in order of their date of recordation;

(iii) Those NOX allowances that were allocated for a prior control period to the unit under 

subpart E or I of this regulation; and

(iv) Those NOX allowances that were allocated for a prior control period to any unit and

transferred and recorded in the account pursuant to subpart G of this regulation, in order of their date of 

recordation. 

(d) Deductions for excess emissions.

(1) After making the deductions for compliance under paragraph (b) of this section, the EPA will 

deduct from the unit’s compliance account or the overdraft account of the source where the unit is located 

a number of NOX allowances, allocated for a control period after the control period in which the unit has 

excess emissions, equal to three times the number of the unit’s excess emissions. 

(2) If the compliance account or overdraft account does not contain sufficient NOX allowances, the 

EPA 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.

(3) Any allowance deduction required under paragraph (d) of this section shall not affect the liability 

of the owners and operators of the NOX Budget unit for any fine, penalty, or assessment, or their 

obligation to comply with any other remedy, for the same violation, as ordered under the CAA or 

applicable State law. The following guidelines will be followed in assessing fines, penalties or other 

obligations:

(i) For purposes of determining the number of days of violation, if a NOX Budget unit has excess 

emissions for a control period, each day in the control period (153 days) constitutes a day in violation 

unless the owners and operators of the unit demonstrate that a lesser number of days should be

considered.

(ii) Each ton of excess emissions is a separate violation. 

(e) Deductions for units sharing a common stack. In the case of units sharing a common stack and having 

emissions that are not separately monitored or apportioned in accordance with subpart H of this regulation:
September 24, 2004 62.96-Page 34

(1) The NOX authorized account representative of the units may identify the percentage of NOX

allowances to be deducted from each such unit's compliance account to cover the unit’s share of NOX

emissions from the common stack for a control period. Such identification shall be made in the compliance 

certification report submitted in accordance with Section 96.30. 

(2) Notwithstanding paragraph (b)(2)(i) of this section, the EPA will deduct NOX allowances for each 

such unit until the number of NOX allowances deducted equals the unit’s identified percentage (under 

paragraph (e)(1) of this section) of the number of tons of NOX emissions, as determined in accordance 

with subpart H of this regulation, from the common stack for the control period for which compliance is 

being determined or, if no percentage is identified, an equal percentage for each such unit, plus the number 

of allowances required for deduction to account for actual utilization under Section 96.42(e) for the control 

period.

(f) The EPA will record in the appropriate compliance account or overdraft account all deductions from 

such an account pursuant to paragraphs (b), (d), or (e) of this section. 

Section 96.55 - Banking.

(a) NOX allowances may be banked for future use or transfer in a compliance account, an overdraft 

account, or a general account, as follows:

(1) Any NOX allowance that is held in a compliance account, an overdraft account, or a general 

account will remain in such account unless and until the NOX allowance is deducted or transferred under 

Section 96.31, Section 96.54, Section 96.56, subpart G of this regulation, or subpart I of this regulation. 

(2) The EPA will designate, as a “banked” NOX allowance, any NOX allowance that remains in a 

compliance account, an overdraft account, or a general account after the EPA has made all deductions for 

a given control period from the compliance account or overdraft account pursuant to Section 96.54 and 

was allocated for that control period or a control period in a prior year. 

(b) Each year starting in 2004, after the EPA has completed the designation of banked NOX allowances 

under paragraph (a)(2) of this section and before May 1of the year, the EPA will determine the extent to 

which banked NOX allowances may be used for compliance in the control period for the current year, as 

follows:

(1) The EPA will determine the total number of banked NOX allowances held in compliance 

accounts, overdraft accounts, or general accounts. 

(2) If the total number of banked NOX allowances determined, under paragraph (b)(1) of this section, 

to be held in compliance accounts, overdraft accounts, or general accounts is less than or equal to 10% of 

the sum of the State trading program budgets for the control period for the States in which NOX Budget 

units are located, any banked NOX allowance may be deducted for compliance in accordance with Section 

96.54. 

(3) If the total number of banked NOX allowances determined, under paragraph (b)(1) of this section, 

to be held in compliance accounts, overdraft accounts, or general accounts exceeds 10% of the sum of the 

State trading program budgets for the control period for the States in which NOX Budget units are located, 

any banked allowance may be deducted for compliance in accordance with Section 96.54, except as 
September 24, 2004 62.96-Page 35

follows:

(i) The EPA will determine the following ratio: 0.10 multiplied by the sum of the State trading 

program budgets for the control period for the States in which NOX Budget units are located and divided 

by the total number of banked NOX allowances determined, under paragraph (b)(1) of this section, to be 

held in compliance accounts, overdraft accounts, or general accounts.

(ii) The EPA will multiply the number of banked NOX allowances in each compliance account or 

overdraft account by the ratio determined using the formula specified in paragraph (b)(3)(i). The resulting 

product is the number of banked NOX allowances in the account that may be deducted for compliance in 

accordance with Section 96.54. Any banked NOX allowances in excess of the resulting product may be 

deducted for compliance in accordance with Section 96.54, except that, if such NOX allowances are used 

to make a deduction, two such NOX allowances must be deducted for each deduction of one NOX

allowance required under Section 96.54.

(c) Any NOX Budget unit may reduce its NOX emission rate in the 2000, 2001, 2002, or 2003, control 

period, the owner or operator of the unit may request early reduction credits, and the Department may 

allocate allowances in 2004 to the unit in accordance with the following requirements.

(1) Each NOX Budget unit for which the owner or operator requests any early reduction credits 

under paragraph (c)(4) of this section shall monitor NOX emissions in accordance with subpart H of this 

regulation. Each budget unit must monitor their emissions during the control period for which early

reduction credits are requested and must have monitoring data for at least one control period prior to the 

control period for which such early reduction credits are requested. The unit’s monitoring system

availability shall be not less than 90 percent during any control period, and the unit must be in compliance 

with any applicable State or Federal emissions or emissions-related requirements. 

(2) NOX emission rate and heat input under paragraphs (c)(4) through (5) of this section shall be 

determined in accordance with subpart H of this regulation.

(3) NOX allowances allocated for early reduction credits in accordance with this section may be 

deducted for compliance during the 2004 and 2005 control periods only.

(4) The NOX authorized account representative of a NOX Budget unit that meets the requirements of 

paragraphs (c)(1) of this section may submit to the Department a request for early reduction credits for 

the unit based on NOX emission rate reductions made by the unit in the control period for 2000, 2001, 2002, 

or 2003. 

(i) In the early reduction credit request, the NOX authorized account representative for units 

under Section 96.4(a)(1) 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 the unit’s state and 

federally approved NOX permit limit and the unit’s NOX emission rate for such control period, divided by 

2000 lb/ton, and rounded to the nearest ton. After the early reduction credits are calculated, the credits 

shall be discounted for units that do not reduce down to 0.25 lb/mmBtu so that for each ton of NOX

reduction achieved down to but not including 0.25 lb/mmBtu, the unit shall receive one half credit. For units 

that reduce their NOX emissions beyond and including 0.25 lb/mmBtu, the credits will not be discounted 

and the unit shall receive one credit for each ton of NOX reduction.
September 24, 2004 62.96-Page 36

(ii) For units under 96.4(a)(2) and for units under 96.4(a)(1) that do not have a state and

federally approved NOX permit limit, the NOX authorized account representative 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 the unit’s emission rate in the control period prior to the NOX

emission rate reduction in lb/mmBtu and the unit’s NOX emission rate for such control period, divided by 

2000 lb/ton, and rounded to the nearest ton; the difference must reflect only additional reductions to prior 

existing requirement. After the early reduction credits are calculated, the credits shall be discounted for 

units that do not reduce down to 0.25 lb/mmBtu so that for each ton of NOX reduction achieved down to 

but not including 0.25 lb/mmBtu, the unit shall receive one half credit. For units that reduce their NOX

emissions beyond and including 0.25 lb/mmBtu, the credits will not be discounted and the unit shall receive 

one credit for each ton of NOX reduction.

(iii) For units under 96.4(a)(1) that utilize NOX emissions averaging to demonstrate compliance 

with the Acid Rain Nitrogen Oxides Emission Reduction Program promulgated under 40 CFR part 76 and 

average those emissions based on units operating exclusively in the State of South Carolina, the early 

reduction credit request must be based on the total reductions from all the units participating in the 

emissions averaging program. 

(iv) For reductions that occur during only a portion of the control period, the heat input used to 

determine the early reduction credits shall be based only on the period of time for which the reductions 

occurred. 

(v) If the sum of the early reduction credit requests from paragraphs (4)(i) and (4)(ii) above, is 

less than the total NOX allowances available in the State’s compliance supplement pool, the Department 

shall adjust the discounted credits in paragraphs (4)(i) and (4)(ii) until the sum of the early reduction credit 

requests equals the amount of NOX allowances available. However, at no time shall the Department 

allocate more than one early reduction credit for each ton of NOX reduced.

(vi) The early reduction credit request must be submitted, in a format specified by the

Department, by February 1, 2004.

(5) The Department will allocate NOX allowances, to NOX Budget units meeting the requirements of 

paragraphs (c)(1) of this section in accordance with the following procedures:

(i) Upon receipt of each early reduction credit request, the Department will accept the request 

only if the requirements of paragraphs (c)(1), (3), and (4) of this section are met and, if the request is 

accepted, will make any necessary adjustments to the request to ensure that the amount of the early 

reduction credits requested meets the requirement of paragraphs (c)(2) and (4) of this section. 

(ii) If the State’s compliance supplement pool has an amount of NOX allowances not less than 

the number of early reduction credits in all accepted early reduction credit requests for 2000, 2001, 2002, 

and 2003 (as adjusted under paragraph (c)(5)(i) of this section) submitted by February 1, 2004, the 

Department will allocate to each NOX Budget unit covered by such accepted requests one allowance for 

each early reduction credit requested (as adjusted under paragraph (c)(5)(i) of this section).

(iii) If the State’s compliance supplement pool has a smaller amount of NOX allowances than the 

number of early reduction credits in all accepted early reduction credit requests for 2000, 2001, 2002, and 
September 24, 2004 62.96-Page 37

2003 (as adjusted under paragraph (c)(5)(i) of this section) submitted by February 1, 2004, the Department 

will allocate NOX allowances to each NOX Budget unit covered by such accepted requests according to 

the following formula and rounded to the nearest whole number of NOX allowances as appropriate:

Unit’s allocated early reduction credits = [(Unit’s adjusted early reduction credits)/(Total adjusted early 

reduction credits requested by all units)] x (Available NOX allowances from the State’s compliance 

supplement pool)

where:

“Unit’s adjusted early reduction credits” is the number of early reduction credits for the unit for 2000, 

2001, 2002, and 2003, in accepted early reduction credit requests, as adjusted under paragraph (c)(5)(i) of 

this section.

“Total adjusted early reduction credits requested by all units” is the number of early reduction credits 

for all units for 2000, 2001, 2002, and 2003, in accepted early reduction credit requests, as adjusted under 

paragraph (c)(5)(i) of this section.

“Available NOX allowances from the State’s compliance supplement pool” is the number of NOX

allowances in the State’s compliance supplement pool and available for early reduction credits for 2000, 

2001, 2002, and 2003.

(6) After the NOX allowances have been distributed for early reduction credits, any remaining NOX

allowances in the compliance supplement pool (if any) will be distributed to sources that demonstrate a 

need for an extension of the May 31, 2004 compliance deadline according to the following provisions:

(i) Applications should be submitted by February 1, 2004.

(ii) The issuance process will be completed no later than May 31, 2004.

(iii) Sources that apply must demonstrate the following:

(A) For a source used to generate electricity, compliance with the State implementation 

plan’s applicable control measures by May 31, 2004, would create undue risk for the reliability of the 

electricity supply. This demonstration must include a showing that it would not be feasible to import 

electricity from other electricity generation systems during the installation of control technologies

necessary to comply with the State implementation plan revision.

(B) For a source not used to generate electricity, compliance with the State implementation 

plan’s applicable control measures by May 31, 2004, would create undue risk for the source or its 

associated industry to a degree that is comparable to the risk described in paragraph (c)(6)(iii)(A) of this 

section.

(C) That it was not possible for the source to comply with applicable control measures by 

generating early reduction credits or acquiring early reduction credits from other sources.

(D) That it was not possible to comply with applicable control measures by acquiring 

sufficient credit from other sources or persons subject to the emissions trading program.
September 24, 2004 62.96-Page 38

(iv) The State shall ensure the public an opportunity, through a public hearing process, to

comment on the appropriateness of allocating compliance supplement pool credits to a source under 

paragraph(c)(6) of this section.

(v) NOX allocations (if any) that remain in the compliance supplement pool after distributions are 

completed for sources with qualifying early reduction credits will be distributed to sources that meet the 

provisions described in paragraph (c)(6) of this section in accordance with the following procedures:

(A) If the State’s compliance supplement pool has an amount of NOX allowances not less 

than the number of credits in all accepted credit requests for 2000, 2001, 2002 and 2003 submitted by 

February 1, 2004, the Department will allocate to each NOX Budget unit covered by such accepted 

requests one allowance for each credit requested.

(B) If the State’s compliance supplement pool has a smaller amount of NOX allowances 

than the number of credits in all accepted credit requests for 2000, 2001, 2002, and 2003, submitted by 

February 1, 2004, the Department will allocate NOX allowances to each NOX Budget unit covered by such 

accepted requests according to the following formula and rounded to the nearest whole number of NOX

allowances as appropriate:

Unit’s allocated credits = [(Unit’s adjusted credits)/(Total adjusted credits requested by all units)] x 

(Available NOX allowances from the State’s compliance supplement pool)

where:

“Unit’s adjusted credits” is the number of credits for the unit for 2000, 2001, 2002, and 2003, in 

accepted credit requests.

“Total adjusted credits requested by all units” is the number of credits for all units for 2000, 2001, 

2002, and 2003, in accepted credit requests.

“Available NOX allowances from the State’s compliance supplement pool” is the number of NOX

allowances in the State’s compliance supplement pool and available for credits for 2000, 2001, 2002, and 

2003.

(7) By May 31, 2004, the Department will submit to the EPA the allocations of NOX allowances 

determined under paragraph (c)(5) and (c)(6) of this section. The EPA will record such allocations to the 

extent that they are consistent with the requirements of paragraphs (c)(1) through (6) of this section. 

(8) NOX allowances recorded under paragraph (c)(7) of this section may be deducted for compliance 

under Section 96.54 for the control periods in 2004 or 2005. Notwithstanding paragraph (a) of this section, 

the EPA will deduct as retired any NOX allowance that is recorded under paragraph (c)(7) of this section 

and is not deducted for compliance in accordance with Section 96.54 for the control period in 2004 or 

2005.

(9) NOX allowances recorded under paragraph (c)(7) of this section are treated as banked

allowances in 2005 for the purposes of paragraphs (a) and (b) of this section.
September 24, 2004 62.96-Page 39

Section 96.56 - Account Error.

The EPA may correct any error in any NOX Allowance Tracking System account. Within 10 

business days of making such correction, the EPA will notify the NOX authorized account representative 

for the account.

Section 96.57 - Closing of General Accounts.

(a) The NOX authorized account representative of a general account may instruct the EPA to close the 

account by submitting a statement requesting deletion of the account from the NOX Allowance Tracking 

System and by correctly submitting for recordation under Section 96.60 an allowance transfer of all NOX

allowances in the account to one or more other NOX Allowance Tracking System accounts. 

(b) If a general account shows no activity for a period of a year or more and does not contain any NOX

allowances, the EPA may notify the NOX authorized account representative for the account that the 

account will be closed and deleted from the NOX Allowance Tracking System following 20 business days 

after the notice is sent. The account will be closed after the 20-day period unless before the end of the 20-

day period the EPA receives a correctly submitted transfer of NOX allowances into the account under 

Section 96.60 or a statement submitted by the NOX authorized account representative demonstrating to the 

satisfaction of the EPA good cause as to why the account should not be closed. 

SUBPART G - NOX ALLOWANCE TRANSFERS

Section 96.60 - Submission of NOX Allowance Transfers.

The NOX authorized account representatives seeking recordation of a NOX allowance transfer shall 

submit the transfer to the EPA. To be considered correctly submitted, the NOX allowance transfer shall 

include the following elements in a format specified by the EPA:

(a) The numbers identifying both the transferor and transferee accounts;

(b) A specification by serial number of each NOX allowance to be transferred; and

(c) The printed name and signature of the NOX authorized account representative of the transferor 

account and the date signed.

Section 96.61 - EPA Recordation.

(a) Within 5 business days of receiving a NOX allowance transfer, except as provided in paragraph (b) of 

this section, the EPA will record a NOX allowance transfer by moving each NOX allowance from the 

transferor account to the transferee account as specified by the request, provided that:

(1) The transfer is correctly submitted under Section 96.60; 

(2) The transferor account includes each NOX allowance identified by serial number in the transfer; 

and
September 24, 2004 62.96-Page 40

(3) The transfer meets all other requirements of this regulation.

(b) A NOX allowance transfer that is submitted for recordation following the NOX allowance transfer 

deadline and that includes any NOX allowances allocated for a control period prior to or the same as the 

control period to which the NOX allowance transfer deadline applies will not be recorded until after 

completion of the process of recordation of NOX allowance allocations in Section 96.53(b).

(c) Where a NOX allowance transfer submitted for recordation fails to meet the requirements of

paragraph (a) of this section, the EPA will not record such transfer.

Section 96.62 - Notification.

(a) Notification of recordation. Within 5 business days of recordation of a NOX allowance transfer under 

Section 96.61, the EPA will notify each party to the transfer. Notice will be given to the NOX authorized 

account representatives of both the transferor and transferee accounts.

(b) Notification of non-recordation. Within 10 business days of receipt of a NOX allowance transfer that 

fails to meet the requirements of Section 96.61(a), the EPA will notify the NOX authorized account 

representatives of both accounts subject to the transfer of:

(1) A decision not to record the transfer, and

(2) The reasons for such non-recordation.

(c) Nothing in this section shall preclude the submission of a NOX allowance transfer for recordation 

following notification of non-recordation.

SUBPART H - MONITORING AND REPORTING

Section 96.70 - General Requirements.

The owners and operators, and to the extent applicable, the NOX authorized account representative 

of a NOX Budget unit, shall comply with the monitoring and reporting requirements as provided in this 

subpart and in subpart H of 40 CFR part 75. For purposes of complying with such requirements, the 

definitions in Section 96.2 and in 40 CFR part 72 section 72.2 shall apply, and the terms “affected unit,” 

“designated representative,” and “continuous emission monitoring system” (or “CEMS”) in 40 CFR part 

75 shall be replaced by the terms “NOX Budget unit,” “NOX authorized account representative,” and 

“continuous emission monitoring system” (or “CEMS”), respectively, as defined in Section 96.2.

(a) Requirements for installation, certification, and data accounting. 

The owner or operator of each NOX Budget unit must meet the following requirements. These 

provisions also apply to a unit for which an application for a NOX Budget opt-in permit is submitted and not 

denied or withdrawn, as provided in subpart I of this regulation:

(1) Install all monitoring systems required under this subpart for monitoring NOX mass. This includes 
September 24, 2004 62.96-Page 41

all systems required to monitor NOX emission rate, NOX concentration, heat input, and flow, in accordance 

with 40 CRF parts 75 sections 75.71 and 75.72.

(2) Install all monitoring systems for monitoring heat input, if required under Section 96.76 for 

developing NOX allowance allocations.

(3) Successfully complete all certification tests required under Section 96.71 and meet all other 

provisions of this subpart and 40 CFR part 75 applicable to the monitoring systems under paragraphs (a)(1) 

and (2) of this section. 

(4) Record, and report data from the monitoring systems under paragraphs (a)(1) and (2) of this 

section.

(b) Compliance dates. 

The owner or operator must meet the requirements of paragraphs (a)(1) through (a)(3) of this section 

on or before the following dates and must record and report data on and after the following dates:

(1) NOX Budget units for which the owner or operator intends to apply for early reduction credits 

under Section 96.55(d) must comply with the requirements of this subpart by May 1, 2003 or if early 

reduction credits are being requested before this date than in the control period prior to the one for which 

the early reduction credits are requested. 

(2) Except for NOX Budget units under paragraph (b) (1) of this section, NOX Budget units under 

Section 96.4 that commence operation before January 1, 2002, must comply with the requirements of this 

subpart by May 1, 2003. 

(3) NOX Budget units under Section 96.4 that commence operation on or after January 1, 2002 and 

that report on an annual basis under Section 96.74(d) must comply with the requirements of this subpart by 

the later of the following dates:

(i) May 1, 2003; or

(ii) the earlier of:

(A) 180 days after the date on which the unit commences operation or, 

(B) For units under Section 96.4(a)(1), 90 days after the date on which the unit commences 

commercial operation.

(4) NOX Budget units under Section 96.4 that commence operation on or after January 1, 2003 and 

that report on a control season basis under Section 96.74(d) must comply with the requirements of this 

subpart by the later of the following dates:

(i) the earlier of:

(A) 180 days after the date on which the unit commences operation or, 
September 24, 2004 62.96-Page 42

(B) for units under Section 96.4(a)(1), 90 days after the date on which the unit commences 

commercial operation.

(ii) However, if the applicable deadline under paragraph (b)(4)(i) section does not occur during a 

control period, then the unit must comply by May 1, of the year immediately following the date determined 

in accordance with paragraph (b)(4)(i) of this section.

(5) For a NOX Budget unit with a new stack or flue for which construction is completed after the 

applicable deadline under paragraph (b)(1), (b)(2) or (b)(3) of this section or subpart I of this regulation:

(i) 90 days after the date on which emissions first exit to the atmosphere through the new stack 

or flue

(ii) However, if the unit reports on a control season basis under Section 96.74(d) and the 

applicable deadline under paragraph (b)(5(i) of this section does not occur during the control period, then 

the unit must comply by May 1, of the year immediately following the applicable deadline in paragraph 

(b)(5)(i) of this section.

(6) For a unit for which an application for a NOX Budget opt in permit is submitted and not denied or 

withdrawn, the compliance dates specified under subpart I of this regulation.

(c) Reporting data prior to initial certification.

(1) The owner or operator of a NOX Budget unit that misses the certification deadline under 

paragraph (b)(1) of this section is not eligible to apply for early reduction credits. The owner or operator of 

the unit becomes subject to the certification deadline under paragraph (b)(2) of this section.

(2) The owner or operator of a NOX Budget under paragraphs (b)(3) or (b)(4) of this section must 

determine, record and report NOX mass, heat input (if required for purposes of allocations) and any other 

values required to determine NOX Mass (e.g. NOX emission rate and heat input or NOX concentration and 

stack flow) using the provisions of Section 75.70(g) of 40 CFR part 75, from the date and hour that the 

unit starts operating until the date and hour on which the continuous emission monitoring system, excepted 

monitoring system under appendix D or E of 40 CFR part 75, or excepted monitoring methodology under 

Section 75.19 of 40 CFR part 75 is provisionally certified.

(d) Prohibitions.

(1) No owner or operator of a NOX Budget unit or a non- NOX Budget unit monitored under Section 

75.72(b)(2)(ii) of 40 CFR part 75 shall use any alternative monitoring system, alternative reference 

method, or any other alternative for the required continuous emission monitoring system without having 

obtained prior written approval in accordance with Section 96.75.

(2) No owner or operator of a NOX Budget unit or a non- NOX Budget unit monitored under Section 

75.72(b)(2)(ii) of 40 CFR part 75 shall operate the unit so as to discharge, or allow to be discharged, NOX

emissions to the atmosphere without accounting for all such emissions in accordance with the applicable 

provisions of this subpart and 40 CFR part 75 except as provided for in Section 75.74.

(3) No owner or operator of a NOX Budget unit or a non- NOX Budget unit monitored under Section 
September 24, 2004 62.96-Page 43

75.72(b)(2)(ii) of 40 CFR part 75 shall disrupt the continuous emission monitoring system, any portion 

thereof, or any other approved emission monitoring method, and thereby avoid monitoring and recording 

NOX mass emissions discharged into the atmosphere, except for periods of recertification or periods when 

calibration, quality assurance testing, or maintenance is performed in accordance with the applicable 

provisions of this subpart and 40 CFR part 75 except as provided for in Section 75.74.

(4) No owner or operator of a NOX Budget units or a non- NOX Budget unit monitored under Section 

75.72(b)(2)(ii) of 40 CFR part 75 shall retire or permanently discontinue use of the continuous emission 

monitoring system, any component thereof, or any other approved emission monitoring system under this 

subpart, except under any one of the following circumstances:

(i) During the period that the unit is covered by a retired unit exemption under Section 96.5 that 

is in effect;

(ii) The owner or operator is monitoring emissions from the unit with another certified monitoring 

system approved, in accordance with the applicable provisions of this subpart and 40 CFR part 75, by the 

Department for use at that unit that provides emission data for the same pollutant or parameter as the 

retired or discontinued monitoring system; or

(iii) The NOX authorized account representative submits notification of the date of certification 

testing of a replacement monitoring system in accordance with Section 96.71(b)(2).

Section 96.71 - Initial Certification And Recertification Procedures.

(a) The owner or operator of a NOX Budget unit that is subject to an Acid Rain emissions limitation shall 

comply with the initial certification and recertification procedures of 40 CFR part 75, except that: 

(1) If, prior to January 1, 1998, the EPA approved a petition under Section 75.17(a) or (b) of 40 CFR 

part 75 for apportioning the NOX emission rate measured in a common stack or a petition under Section 

75.66 of 40 CFR part 75 for an alternative to a requirement in Section 75.17 of 40 CFR part 75, the NOX

authorized account representative shall resubmit the petition to the EPA under Section 96.75(a) to

determine if the approval applies under the NOX Budget Trading Program.

(2) For any additional CEMS required under the common stack provisions in Section 75.72 of 40 CFR 

part 75, or for any NOX concentration CEMS used under the provisions of Section 75.71(a)(2) of 40 CFR 

part 75, the owner or operator shall meet the requirements of paragraph (b) of this section.

(b) The owner or operator of a NOX Budget unit that is not subject to an Acid Rain emissions limitation 

shall comply with the following initial certification and recertification procedures, except that the owner or 

operator of a unit that qualifies to use the low mass emissions excepted monitoring methodology under 

Section 75.19 of 40 CFR part 75 shall also meet the requirements of paragraph (c) of this section and the 

owner or operator of a unit that qualifies to use an alternative monitoring system under subpart E of 40 

CFR part 75 shall also meet the requirements of paragraph (d) of this section. The owner or operator of a 

NOX Budget unit that is subject to an Acid Rain emissions limitation, but requires additional CEMS under 

the common stack provisions in Section 75.72 of 40 CFR part 75, or that uses a NOX concentration CEMS 

under Section 75.71(a)(2) of 40 CFR part 75 also shall comply with the following initial certification and 

recertification procedures.
September 24, 2004 62.96-Page 44

(1) Requirements for initial certification.

The owner or operator shall ensure that each monitoring system required by subpart H of 40 CFR 

part 75 (which includes the automated data acquisition and handling system) successfully completes all of 

the initial certification testing required under Section 75.20 of 40 CFR part 75. The owner or operator shall 

ensure that all applicable certification tests are successfully completed by the deadlines specified in

Section 96.70(b). In addition, whenever the owner or operator installs a monitoring system in order to meet 

the requirements of this regulation in a location where no such monitoring system was previously installed, 

initial certification according to Section 75.20 of 40 CFR part 75 is required.

(2) Requirements for recertification. 

Whenever the owner or operator makes a replacement, modification, or change in a certified

monitoring system that may significantly affect the ability of the system to accurately measure or record 

NOX mass emissions or heat input or to meet the requirements of Section 75.21 or appendix B to 40 CFR 

part 75, the owner or operator shall recertify the monitoring system according to Section 75.20(b) of 40 

CFR part 75. Furthermore, whenever the owner or operator makes a replacement, modification, or change 

to the flue gas handling system or the unit’s operation that may significantly change the flow or

concentration profile, the owner or operator shall recertify the continuous emissions monitoring system 

according to Section 75.20(b) of 40 CFR part 75. Examples of changes which require recertification 

include: replacement of the analyzer, complete replacement of an existing continuous emission monitoring 

system, or change in location or orientation of the sampling probe or site. 

(3) Certification approval process for initial certifications and recertification.

(i) Notification of certification. The NOX authorized account representative shall submit to the 

Department and to the appropriate EPA Regional Office a written notice of the dates of certification in 

accordance with Section 96.73. 

(ii) Certification application. The NOX authorized account representative shall submit to the 

Department a certification application for each monitoring system required under subpart H of 40 CFR 

part 75. A complete certification application shall include the information specified in subpart H of 40 CFR 

part 75.

(iii) Except for units using the low mass emission excepted methodology under Section 75.19 of 

40 CFR part 75, the provisional certification date for a monitor shall be determined using the procedures 

set forth in Section 75.20(a)(3) of 40 CFR part 75. A provisionally certified monitor may be used under the 

NOX Budget Trading Program for a period not to exceed 120 days after receipt by the Department of the 

complete certification application for the monitoring system or component thereof under paragraph

(b)(3)(ii) of this section. Data measured and recorded by the provisionally certified monitoring system or 

component thereof, in accordance with the requirements of 40 CFR part 75, will be considered valid 

quality-assured data (retroactive to the date and time of provisional certification), provided that the 

Department does not invalidate the provisional certification by issuing a notice of disapproval within 120 

days of receipt of the complete certification application by the Department. 

(iv) Certification application formal approval process. The Department will issue a written notice 

of approval or disapproval of the certification application to the owner or operator within 120 days of 

receipt of the complete certification application under paragraph (b)(3)(ii) of this section. In the event the 
September 24, 2004 62.96-Page 45

Department does not issue such a notice within such 120-day period, each monitoring system which meets 

the applicable performance requirements of 40 CFR part 75 and is included in the certification application 

will be deemed certified for use under the NOX Budget Trading Program.

(A) Approval notice. If the certification application is complete and shows that each 

monitoring system meets the applicable performance requirements of 40 CFR part 75, then the

Department will issue a written notice of approval of the certification application within 120 days of 

receipt.

(B) Incomplete application notice. A certification application will be considered complete 

when all of the applicable information required to be submitted under paragraph (b)(3)(ii) of this section 

has been received by the Department. If the certification application is not complete, then the Department 

will issue a written notice of incompleteness that sets a reasonable date by which the NOX authorized 

account representative must submit the additional information required to complete the certification

application. If the NOX authorized account representative does not comply with the notice of

incompleteness by the specified date, then the Department may issue a notice of disapproval under 

paragraph (b)(3)(iv)(C) of this section. 

(C) Disapproval notice. If the certification application shows that any monitoring system or 

component thereof does not meet the performance requirements of this regulation, or if the certification 

application is incomplete and the requirement for disapproval under paragraph (b)(3)(iv)(B) of this section 

has been met, the Department will issue a written notice of disapproval of the certification application. 

Upon issuance of such notice of disapproval, the provisional certification is invalidated by the Department 

and the data measured and recorded by each uncertified monitoring system or component thereof shall not 

be considered valid quality-assured data beginning with the date and hour of provisional certification. The 

owner or operator shall follow the procedures for loss of certification in paragraph (b)(3)(v) of this section 

for each monitoring system or component thereof which is disapproved for initial certification. 

(D) Audit decertification. The Department may issue a notice of disapproval of the

certification status of a monitor in accordance with Section 96.72(b).

(v) Procedures for loss of certification. If the Department issues a notice of disapproval of a 

certification application under paragraph (b)(3)(iv)(C) of this section or a notice of disapproval of

certification status under paragraph (b)(3)(iv)(D) of this section, then: 

(A) The owner or operator shall substitute the following values, for each hour of unit 

operation during the period of invalid data specified under Section 75.20 (a)(4)(iii), Section 75.20(b)(5), 

Section 75.20(h)(4), or Section 75.21(e) and continuing until the date and hour specified under Section 

75.20(a)(5)(i) of 40 CFR part 75:

(1) For units using or intending to monitor for NOX emission rate and heat input or for 

units using the low mass emission excepted methodology under Section 75.19 of 40 CFR part 75, the 

maximum potential NOX emission rate and the maximum potential hourly heat input of the unit. 

(2) For units intending to monitor for NOX mass emissions using a NOX pollutant 

concentration monitor and a flow monitor, the maximum potential concentration of NOX and the maximum 

potential flow rate of the unit under Section 2.1 of appendix A of 40 CFR part 75; 
September 24, 2004 62.96-Page 46

(B) The NOX authorized account representative shall submit a notification of certification 

retest dates and a new certification application in accordance with paragraphs (b)(3)(i) and (ii) of this 

section; and 

(C) The owner or operator shall repeat all certification tests or other requirements that 

were failed by the monitoring system, as indicated in the Department’s notice of disapproval, no later than 

30 unit operating days after the date of issuance of the notice of disapproval.

(c) Initial certification and recertification procedures for low mass emission units using the excepted

methodologies under Section 75.19 of 40 CFR Part 75. The owner or operator of a gas-fired or oil-fired 

unit using the low mass emissions excepted methodology under Section 75.19 of 40 CFR part 75 and not 

subject to an Acid Rain emissions limitation shall meet the applicable general operating requirements of 

Section 75.10 of 40 CFR part 75 and the applicable requirements of Section 75.19 of 40 CFR part 75. The 

owner or operator of such a unit shall also meet the applicable certification and recertification procedures 

of paragraph (b) of this section, except that the excepted methodology shall be deemed provisionally 

certified for use under the NOX Budget Trading Program as of the following dates:

(1) For a unit that does not have monitoring equipment initially certified or recertified for the NOX

Budget Trading Program as of the date on which the NOX authorized account representative submits the 

certification application under Section 75.19 of 40 CFR part 75 for the unit, starting on the date of such 

submission until the completion of the period for the Department’s review.

(2) For a unit that has monitoring equipment initially certified or recertified for the NOX Budget 

Trading Program as of the date on which the NOX authorized account representative submits the 

certification application under Section 75.19 of 40 CFR part 75 for the unit and that reports data on an 

annual basis under Section 96.74(d), starting January 1 of the year after the year of such submission until 

the completion of the period for the Department’s review.

(3) For a unit that has monitoring equipment initially certified or recertified for the NOX Budget 

Trading Program as of the date on which the NOX Authorized Account Representative submits the 

certification application under Section 75.19 of 40 CFR part 75 for the unit and that reports on a control 

season basis under Section 96.74(d), starting May 1 of the control period after the year of such submission 

until the completion of the period for the Department’s review.

(d) Certification/recertification procedures for alternative monitoring systems. The NOX authorized

account representative representing the owner or operator of each unit applying to monitor using an

alternative monitoring system approved by the EPA and, if applicable, the Department under subpart E of 

40 CFR part 75 shall apply for certification to the Department prior to use of the system under the NOX

Trading Program. The NOX authorized account representative shall apply for recertification following a 

replacement, modification or change according to the procedures in paragraph (b) of this section. The 

owner or operator of an alternative monitoring system shall comply with the notification and application 

requirements for certification according to the procedures specified in paragraph (b)(3) of this section and 

Section 75.20(f) of 40 CFR part 75. 

Section 96.72 - Out of Control Periods.

(a) Whenever any monitoring system fails to meet the quality assurance requirements of appendix B of 40 

CFR part 75, data shall be substituted using the applicable procedures in subpart D, appendix D, or 
September 24, 2004 62.96-Page 47

appendix E of 40 CFR part 75.

(b) Audit decertification. Whenever both an audit of a monitoring system and a review of the initial 

certification or recertification application reveal that any system or component should not have been 

certified or recertified because it did not meet a particular performance specification or other requirement 

under Section 96.71 or the applicable provisions of 40 CFR part 75, both at the time of the initial

certification or recertification application submission and at the time of the audit, the Department will issue 

a notice of disapproval of the certification status of such system or component. For the purposes of this 

paragraph, an audit shall be either a field audit or an audit of any information submitted to the Department 

or the EPA. By issuing the notice of disapproval, the Department revokes prospectively the certification 

status of the system or component. The data measured and recorded by the system or component shall not 

be considered valid quality-assured data from the date of issuance of the notification of the revoked 

certification status until the date and time that the owner or operator completes subsequently approved 

initial certification or recertification tests. The owner or operator shall follow the initial certification or 

recertification procedures in Section 96.71 for each disapproved system. 

Section 96.73 - Notifications.

The NOX authorized account representative for a NOX Budget unit shall submit written notice to the 

Department and the EPA in accordance with Section 75.61 of 40 CFR part 75, except that if the unit is 

not subject to an Acid Rain emissions limitation, the notification is only required to be sent to the 

Department.

Section 96.74 - Recordkeeping and Reporting.

(a) General provisions.

(1) The NOX authorized account representative shall comply with all recordkeeping and reporting 

requirements in this section and with the requirements of Section 96.10(e).

(2) If the NOX authorized account representative for a NOX Budget unit subject to an Acid Rain 

Emission limitation who signed and certified any submission that is made under subpart F or G of 40 CFR 

part 75 and which includes data and information required under this subpart or subpart H of 40 CFR part 

75 is not the same person as the designated representative or the alternative designated representative for 

the unit under 40 CFR part 72, the submission must also be signed by the designated representative or the 

alternative designated representative. 

(b) Monitoring Plans.

(1) The owner or operator of a unit subject to an Acid Rain emissions limitation shall comply with 

requirements of Section 75.62 of 40 CFR part 75, except that the monitoring plan shall also include all of 

the information required by subpart H of 40 CFR part 75.

(2) The owner or operator of a unit that is not subject to an Acid Rain emissions limitation shall 

comply with requirements of Section 75.62 of 40 CFR part 75, except that the monitoring plan is only 

required to include the information required by subpart H of 40 CFR part 75.

(c) Certification Applications. The NOX authorized account representative shall submit an application to 
September 24, 2004 62.96-Page 48

the Department within 45 days after completing all initial certification or recertification tests required under 

Section 96.71 including the information required under subpart H of 40 CFR part 75.

(d) Quarterly reports. The NOX authorized account representative shall submit quarterly reports, as 

follows: 

(1) If a unit is subject to an Acid Rain emission limitation or if the owner or operator of the NOX

budget unit chooses to meet the annual reporting requirements of this subpart H, the NOX authorized 

account representative shall submit a quarterly report for each calendar quarter beginning with:

(i) For units that elect to comply with the early reduction credit provisions under Section 96.55 of 

this regulation, the calendar quarter that includes the date of initial provisional certification under Section 

96.71(b)(3)(iii). Data shall be reported from the date and hour corresponding to the date and hour of 

provisional certification ; or

(ii) For units commencing operation prior to May 1, 2003 that are not required to certify monitors 

by May 1, 2003 under Section 96.70(b)(1), the earlier of the calendar quarter that includes the date of 

initial provisional certification under Section 96.71(b)(3)(iii) or Section 96.71(c) or, if the certification tests 

are not completed by May 1, 2003, the partial calendar quarter from May 1, 2003 through June 30, 2003. 

Data shall be recorded and reported from the earlier of the date and hour corresponding to the date and 

hour of provisional certification or the first hour on May 1, 2003; or

(iii) For a unit that commences operation after May 1, 2003, the calendar quarter in which the 

unit commences operation. Data shall be reported from the date and hour corresponding to when the unit 

commenced operation.

(2) If a NOX budget unit is not subject to an Acid Rain emission limitation, then the NOX authorized 

account representative shall either:

(i) Meet all of the requirements of 40 CRF part 75 related to monitoring and reporting NOX mass 

emissions during the entire year and meet the reporting deadlines specified in paragraph (d)(1) of this 

section; or

(ii) submit quarterly reports only for the periods from the earlier of May 1 or the date and hour 

that the owner or operator successfully completes all of the recertification tests required under Section 

75.74(d)(3) through September 30 of each year in accordance with the provisions of Section 75.74(c)(6) 

of 40 CFR part 75. The NOX authorized account representative shall submit a quarterly report for each 

calendar quarter, beginning with:

(A) For units that elect to comply with the early reduction credit provisions under Section 

96.55, the calendar quarter that includes the date of initial provisional certification under Section

96.71(b)(3)(iii) or 96.71(c). Data shall be reported from the date and hour corresponding to the date and 

hour of provisional certification; or

(B) For units commencing operation prior to May 1, 2003 that are not required to certify 

monitors by May 1, 2003 under Section 96.70(b)(1), the earlier of the calendar quarter that includes the 

date of initial provisional certification under Section 96.71(b)(3)(iii), or if the certification tests are not 

completed by May 1, 2003, the partial calendar quarter from May 1, 2003 through June 30, 2003. Data 
September 24, 2004 62.96-Page 49

shall be reported from the earlier of the date and hour corresponding to the date and hour of provisional 

certification or the first hour of May 1, 2003; or

(C) For units that commence operation after May 1, 2003 during the control period, the 

calendar quarter in which the unit commences operation. Data shall be reported from the date and hour 

corresponding to when the unit commenced operation; or

(D) For units that commence operation after May 1, 2003 and before May 1 of the year in 

which the unit commences operation, the earlier of the calendar quarter that includes the date of initial 

provisional certification under Section 96.71(b)(3)(iii) or, if the certification tests are not completed by May 

1 of the year in which the unit commences operation, May 1 of the year in which the unit commences 

operation. Data shall be reported from the earlier of the date and hour corresponding to the date and hour 

of provisional certification or the first hour of May 1 of the year after the unit commences operation.

(E) For units that commence operation after May 1, 2003 and after September 30 of the 

year in which the unit commences operation, the earlier of the calendar quarter that includes the date of 

initial provisional certification under Section 96.71(b)(3)(iii) or, if the certification tests are not completed 

by May 1 of the year after the unit commences operation, May 1 of the year after the unit commences 

operation. Data shall be reported from the earlier of the date and hour corresponding to the date and hour 

of provisional certification or the first hour of May 1 of the year after the unit commences operation.

(3) The NOX authorized account representative shall submit each quarterly report to the EPA within 

30 days following the end of the calendar quarter covered by the report. Quarterly reports shall be 

submitted in the manner specified in subpart H of 40 CFR part 75 and Section 75.64 of 40 CFR part 75.

(i) For units subject to an Acid Rain Emissions limitation, quarterly reports shall include all of the 

data and information required in subpart H of 40 CFR part 75 for each NOX Budget unit (or group of units 

using a common stack) as well as information required in subpart G of 40 CFR part 75. 

(ii) For units not subject to an Acid Rain Emissions limitation, quarterly reports are only required 

to include all of the data and information required in subpart H of 40 CFR part 75 for each NOX Budget 

unit (or group of units using a common stack). 

(4) Compliance certification. The NOX authorized account representative shall submit to the EPA a 

compliance certification in support of each quarterly report based on reasonable inquiry of those persons 

with primary responsibility for ensuring that all of the unit’s emissions are correctly and fully monitored. 

The certification shall state that: 

(i) The monitoring data submitted were recorded in accordance with the applicable requirements 

of this subpart and 40 CFR part 75, including the quality assurance procedures and specifications; and

(ii) For a unit with add-on NOX emission controls and for all hours where data are substituted in 

accordance with Section 75.34(a)(1) of 40 CFR part 75, the add-on emission controls were operating 

within the range of parameters listed in the monitoring plan and the substitute values do not systematically 

underestimate NOX emissions; and

(iii) For a unit that is reporting on a control period basis under Section 96.74(d) the NOX emission 

rate and NOX concentration values substituted for missing data under subpart D of 40 CFR part 75 are 
September 24, 2004 62.96-Page 50

calculated using only values from a control period and do not systematically underestimate NOX emissions.

Section 96.75 - Petitions.

(a) The NOX authorized account representative of a NOX Budget unit that is subject to an Acid Rain 

emissions limitation may submit a petition under Section 75.66 of 40 CFR part 75 to the EPA requesting 

approval to apply an alternative to any requirement of this subpart. 

(1) Application of an alternative to any requirement of this subpart is in accordance with this subpart 

only to the extent that the petition is approved by the EPA, in consultation with the Department.

(2) Notwithstanding paragraph (a)(1) of this section, if the petition requests approval to apply an 

alternative to a requirement concerning any additional CEMS required under the common stack provisions 

of Section 75.72 of 40 CFR part 75, the petition is governed by paragraph (b) of this section. 

(b) The NOX authorized account representative of a NOX Budget unit that is not subject to an Acid Rain 

emissions limitation may submit a petition under Section 75.66 of 40 CFR part 75 to the Department and 

the EPA requesting approval to apply an alternative to any requirement of this subpart. 

(1) The NOX authorized account representative of a NOX Budget unit that is subject to an Acid Rain 

emissions limitation may submit a petition under Section 75.66 of 40 CFR part 75 to the Department and 

the EPA requesting approval to apply an alternative to a requirement concerning any additional CEMS 

required under the common stack provisions of Section 75.72 of 40 CFR part 75 or a NOX concentration 

CEMS used under 75.71(a)(2) of 40 CFR part 75.

(2) Application of an alternative to any requirement of this subpart is in accordance with this subpart 

only to the extent the petition under paragraph (b) of this section is approved by both the Department and 

the EPA. 

Section 96.76 - Additional Requirements to Provide Heat Input Data.

(a) The owner or operator of a unit that elects to monitor and report NOX Mass emissions using a NOX

concentration system and a flow system shall also monitor and report heat input at the unit level using the 

procedures set forth in 40 CFR part 75 for any source located in a state developing source allocations 

based upon heat input. 

(b) The owner or operator of a unit that monitor and report NOX Mass emissions using a NOX

concentration system and a flow system shall also monitor and report heat input at the unit level using the 

procedures set forth in 40 CFR part 75 for any source that is applying for early reduction credits under 

Section 96.55.

SUBPART I - INDIVIDUAL OPT-INS

Section 96.80 - Applicability.

A unit that is in the State, is not a NOX Budget unit under Section 96.4, vents all of its emissions to a 
September 24, 2004 62.96-Page 51

stack, and is operating, may qualify, under this subpart, to become a NOX Budget opt-in source. A unit that 

is a NOX Budget unit, is covered by a retired unit exemption under Section 96.5 that is in effect, or is not 

operating is not eligible to become a NOX Budget opt-in source.

Section 96.81 - General.

Except otherwise as provided in this regulation, a NOX Budget opt-in source shall be treated as a 

NOX Budget unit for purposes of applying subparts A through H of this regulation.

Section 96.82 - NOX Authorized Account Representative.

A unit for which an application for a NOX Budget opt-in permit is submitted and not denied or 

withdrawn, or a NOX Budget opt-in source, located at the same source as one or more NOX Budget units, 

shall have the same NOX authorized account representative as such NOX Budget units.

Section 96.83 - Applying for NOX Budget Opt-In Permit.

(a) Applying for initial NOX Budget opt-in permit. In order to apply for an initial NOX Budget opt-in permit, 

the NOX authorized account representative of a unit qualified under Section 96.80 may submit to the 

Department at any time, except as provided under Section 96.86(g):

(1) A complete NOX Budget permit application under Section 96.22;

(2) A monitoring plan submitted in accordance with subpart H of this regulation; and

(3) A complete account certificate of representation under Section 96.13, if no NOX authorized 

account representative has been previously designated for the unit.

(b) Duty to reapply. The NOX authorized account representative of a NOX Budget opt-in source shall 

submit a complete NOX Budget permit application under Section 96.22 to renew the NOX Budget opt-in 

permit in accordance with Section 96.21(c) and, if applicable, an updated monitoring plan in accordance 

with subpart H of this regulation.

Section 96.84 - Opt-In Process.

The Department will issue or deny a NOX Budget opt-in permit for a unit for which an initial 

application for a NOX Budget opt-in permit under Section 96.83 is submitted, in accordance with Section 

96.20 and the following: 

(a) Interim review of monitoring plan. The Department will determine, on an interim basis, the sufficiency 

of the monitoring plan accompanying the initial application for a NOX Budget opt-in permit under Section 

96.83. A monitoring plan is sufficient, for purposes of interim review, if the plan appears to contain 

information demonstrating that the NOX emissions rate and heat input of the unit are monitored and 

reported in accordance with subpart H of this regulation. A determination of sufficiency shall not be 

construed as acceptance or approval of the unit’s monitoring plan.

(b) If the Department determines that the unit’s monitoring plan is sufficient under paragraph (a) of this 

section and after completion of monitoring system certification under subpart H of this regulation, the NOX
September 24, 2004 62.96-Page 52

emissions rate and the heat input of the unit shall be monitored and reported in accordance with subpart H 

of this regulation for one full control period during which monitoring system availability is not less than 90 

percent and during which the unit is in full compliance with any applicable State or Federal emissions or 

emissions-related requirements. Solely for purposes of applying the requirements in the prior sentence, the 

unit shall be treated as a “NOX Budget unit” prior to issuance of a NOX Budget opt-in permit covering the 

unit.

(c) Based on the information monitored and reported under paragraph (b) of this section, the unit’s 

baseline heat rate shall be calculated as the unit’s total heat input (in mmBtu) for the control period and the 

unit’s baseline NOX emissions rate shall be calculated as the unit’s total NOX mass emissions (in lb) for 

the control period divided by the unit’s baseline heat rate. 

 (d) After calculating the baseline heat input and the baseline NOX emissions rate for the unit under 

paragraph (c) of this section, the Department will serve a draft NOX Budget opt-in permit on the NOX

authorized account representative of the unit.

(e) Confirmation of intention to opt-in. Within 20 days after the issuance of the draft NOX Budget opt-in 

permit, the NOX authorized account representative of the unit must submit to the Department a

confirmation of the intention to opt in the unit or a withdrawal of the application for a NOX Budget opt-in 

permit under Section 96.83. The Department will treat the failure to make a timely submission as a 

withdrawal of the NOX Budget opt-in permit application.

(f) Issuance of draft NOX Budget opt-in permit. If the NOX authorized account representative confirms 

the intention to opt in the unit under paragraph (e) of this section, the Department will issue the draft NOX

Budget opt-in permit in accordance with Section 96.20.

(g) Not withstanding paragraphs (a) through (f) of this section, if at any time before issuance of a draft 

NOX Budget opt-in permit for the unit, the Department determines that the unit does not qualify as a NOX

Budget opt-in source under Section 96.80, the Department will issue a draft denial of a NOX Budget opt-in 

permit for the unit in accordance with Section 96.20.

(h) Withdrawal of application for NOX Budget opt-in permit. A NOX authorized account representative of 

a unit may withdraw its application for a NOX Budget opt-in permit under Section 96.83 at any time prior 

to the issuance of the final NOX Budget opt-in permit. Once the application for a NOX Budget opt-in 

permit is withdrawn, a NOX authorized account representative wanting to reapply must submit a new 

application for a NOX Budget permit under Section 96.83. 

(i) Effective date. The effective date of the initial NOX Budget opt-in permit shall be May 1 of the first 

control period starting after the issuance of the initial NOX Budget opt-in permit by the Department. The 

unit shall be a NOX Budget opt-in source and a NOX Budget unit as of the effective date of the initial NOX

Budget opt-in permit.

Section 96.85 - NOX Budget Opt-In Permit Contents.

(a) Each NOX Budget opt-in permit (including any draft or proposed NOX Budget opt-in permit, if 

applicable) will contain all elements required for a complete NOX Budget opt-in permit application under 

Section 96.22 as approved or adjusted by the Department.
September 24, 2004 62.96-Page 53

(b) Each NOX Budget opt-in permit is deemed to incorporate automatically the definitions of terms under 

Section 96.2 and, upon recordation by the EPA under subpart F, G, or I of this regulation, every allocation, 

transfer, or deduction of NOX allowances to or from the compliance accounts of each NOX Budget opt-in 

source covered by the NOX Budget opt-in permit or the overdraft account of the NOX Budget source 

where the NOX Budget opt-in source is located.

Section 96.86 - Withdrawal From NOX Budget Trading Program.

(a) Requesting withdrawal. To withdraw from the NOX Budget Trading Program, the NOX authorized 

account representative of a NOX Budget opt-in source shall submit to the Department a request to 

withdraw effective as of a specified date prior to May 1 or after September 30. The submission shall be 

made no later than 90 days prior to the requested effective date of withdrawal.

(b) Conditions for withdrawal. Before a NOX Budget opt-in source covered by a request under paragraph 

(a) of this section may withdraw from the NOX Budget Trading Program and the NOX Budget opt-in 

permit may be terminated under paragraph (e) of this section, the following conditions must be met:

(1) For the control period immediately before the withdrawal is to be effective, the NOX authorized 

account representative must submit or must have submitted to the Department an annual compliance 

certification report in accordance with Section 96.30.

(2) If the NOX Budget opt-in source has excess emissions for the control period immediately before 

the withdrawal is to be effective, the EPA will deduct or has deducted from the NOX Budget opt-in 

source’s compliance account, or the overdraft account of the NOX Budget source where the NOX Budget 

opt-in source is located, the full amount required under Section 96.54(d) for the control period.

(3) After the requirements for withdrawal under paragraphs (b)(1) and (2) of this section are met, the 

EPA will deduct from the NOX Budget opt-in source’s compliance account, or the overdraft account of 

the NOX Budget source where the NOX Budget opt-in source is located, NOX allowances equal in number 

to and allocated for the same or a prior control period as any NOX allowances allocated to that source 

under Section 96.88 for any control period for which the withdrawal is to be effective. The EPA will close 

the NOX Budget opt-in source's compliance account and will establish, and transfer any remaining

allowances to, a new general account for the owners and operators of the NOX Budget opt-in source. The 

NOX authorized account representative for the NOX Budget opt-in source shall become the NOX

authorized account representative for the general account. 

(c) A NOX Budget opt-in source that withdraws from the NOX Budget Trading Program shall comply with 

all requirements under the NOX Budget Trading Program concerning all years for which such NOX

Budget opt-in source was a NOX Budget opt-in source, even if such requirements arise or must be 

complied with after the withdrawal takes effect.

(d) Notification.

(1) After the requirements for withdrawal under paragraphs (a) and (b) of this section are met 

(including deduction of the full amount of NOX allowances required), the Department will issue a 

notification to the NOX authorized account representative of the NOX Budget opt-in source of the 

acceptance of the withdrawal of the NOX Budget opt-in source as of a specified effective date that is 

after such requirements have been met and that is prior to May 1 or after September 30.
September 24, 2004 62.96-Page 54

(2) If the requirements for withdrawal under paragraphs (a) and (b) of this section are not met, the 

Department will issue a notification to the NOX authorized account representative of the NOX Budget 

opt-in source that the NOX Budget opt-in source’s request to withdraw is denied. If the NOX Budget 

opt-in source's request to withdraw is denied, the Budget opt-in source shall remain subject to the 

requirements for a NOX Budget opt-in source.

(e) Permit amendment. After the Department issues a notification under paragraph (d)(1) of this section 

that the requirements for withdrawal have been met, the Department will revise the NOX Budget permit 

covering the NOX Budget opt-in source to terminate the NOX Budget opt-in permit as of the effective date 

specified under paragraph (d)(1) of this section. A NOX Budget opt-in source shall continue to be a NOX

Budget opt-in source until the effective date of the termination.

(f) Reapplication upon failure to meet conditions of withdrawal. If the Department denies the NOX Budget 

opt-in source's request to withdraw, the NOX authorized account representative may submit another 

request to withdraw in accordance with paragraphs (a) and (b) of this section.

(g) Ability to return to the NOX Budget Trading Program. Once a NOX Budget opt-in source withdraws 

from the NOX Budget Trading Program and its NOX Budget opt-in permit is terminated under this section, 

the NOX authority account representative may not submit another application for a NOX Budget opt-in 

permit under Section 96.83 for the unit prior to the date that is 4 years after the date on which the 

terminated NOX Budget opt-in permit became effective.

Section 96.87 - Change in Regulatory Status.

(a) Notification. When a NOX Budget opt-in source becomes a NOX Budget unit under Section 96.4, the 

NOX authorized account representative shall notify in writing the Department and the EPA of such change 

in the NOX Budget opt-in source's regulatory status, within 30 days of such change.

(b) Department’s and EPA’s action. 

(1) (i) When the NOX Budget opt-in source becomes a NOX Budget unit under Section 96.4, the 

Department will revise the NOX Budget opt-in source’s NOX Budget opt-in permit to meet the

requirements of a NOX Budget permit under Section 96.23 as of an effective date that is the date on 

which such NOX Budget opt-in source becomes a NOX Budget unit under Section 96.4. 

(ii) (A) The EPA 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 

source) under Section 96.88 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 source) under Section 96.88 for the control period multiplied by the ratio of the number of 

days, in the control period, starting with the effective date of the permit revision under paragraph (b)(1)(i) 
September 24, 2004 62.96-Page 55

of this section, divided by the total number of days in the control period.

(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, includes 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 sufficient NOX allowances, the EPA 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 effective, the NOX Budget unit under paragraph (b)(1)(i) of this section will be 

treated, solely for purposes of NOX allowance allocations under Section 96.42, 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 Section 96.42. 

(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 Section 96.42 for the control period: the number of NOX allowances otherwise 

allocated to the NOX Budget unit under Section 96.42 for the control period multiplied by the ratio of the 

number of days, in the control period, starting with the effective date of the permit revision under 

paragraph (b)(1)(i) of this section, divided by the total number of days in the control period.

(2) (i) When the NOX authorized account representative of a NOX Budget opt-in source does not 

renew its NOX Budget opt-in permit under Section 96.83(b), the EPA 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 source 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 source under Section 96.88 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 source’s compliance 

account or the overdraft account of the NOX Budget source where the NOX Budget opt-in source is 

located includes the NOX allowances necessary for completion of such deduction. If the compliance 

account or overdraft account does not contain sufficient NOX allowances, the EPA 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 EPA will close 

the NOX Budget opt-in source’s compliance account. If any NOX allowances remain in the compliance 

account after completion of such deduction and any deduction under Section 96.54, the EPA will close the 

NOX Budget opt-in source’s compliance account and will establish, and transfer any remaining allowances 

to, a new general account for the owners and operators of the NOX Budget opt-in source. The NOX

authorized account representative for the NOX Budget opt-in source shall become the NOX authorized 

account representative for the general account. 

Section 96.88 - NOX Allowance Allocations To Opt-In Units.

(a) NOX allowance allocation. 
September 24, 2004 62.96-Page 56

(1) By December 31 immediately before the first control period for which the NOX Budget opt-in 

permit is effective, the Department will allocate NOX allowances to the NOX Budget opt-in source and 

submit to the EPA the allocation for the control period in accordance with paragraph (b) of this section.

(2) By no later than December 31, after the first control period for which the NOX Budget opt-in 

permit is in effect, and December 31 of each year thereafter, the Department will allocate NOX

allowances to the NOX Budget opt-in source, and submit to the EPA allocations for the next control 

period, in accordance with paragraph (b) of this section.

(b) For each control period for which the NOX Budget opt-in source has an approved NOX Budget opt-in 

permit, the NOX Budget opt-in source will be allocated NOX allowances in accordance with the following 

procedures:

(1) The heat input (in mmBtu) used for calculating NOX allowance allocations will be the lesser of:

(i) The NOX Budget opt-in source’s baseline heat input determined pursuant to Section 96.84(c); 

or 

(ii) The NOX Budget opt-in source’s heat input, as determined in accordance with subpart H of 

this regulation, for the control period in the year prior to the year of the control period for which the NOX

allocations are being calculated. 

(2) The Department will allocate NOX allowances to the NOX Budget opt-in source in an amount 

equaling the heat input (in mmBtu) determined under paragraph (b)(1) of this section multiplied by the 

lesser of:

(i) The NOX Budget opt-in source’s baseline NOX emissions rate (in lb/mmBtu) determined 

pursuant to Section 96.84(c); or

(ii) The most stringent State or Federal NOX emissions limitation applicable to the NOX Budget 

opt-in source during the control period.

R. 61-62.99 History - South Carolina State Register: 

Vol. 26, Issue No. 5, (Doc. No. 2593), May 24, 2002;

Vol. 28, Issue No. 9, (Doc. No. 2913), September 24, 2004.