Document ID: EPA-R01-OAR-2015-0306-0033
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2016-07-25T04:00Z

STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS

DEPARTMENT OF ENVIRONMENTAL MANAGEMENT

OFFICE OF AIR RESOURCES

AIR POLLUTION CONTROL REGULATION NO. 41

NOx BUDGET TRADING PROGRAM

Effective 21 October 1999

Last Amended   19 July 2007

AUTHORITY:	These regulations are authorized pursuant to R.I. Gen. Laws
§ 42-17.1-2(s) and 23-23, as amended, and have been promulgated
pursuant to the procedures set forth in the R.I. Administrative
Procedures Act, R.I. Gen. Laws Chapter 42-35.

RHODE ISLAND DEPARTMENT OF ENVIRONMENTAL MANAGEMENT

OFFICE OF AIR RESOURCES

AIR POLLUTION CONTROL REGULATION NO. 41

NOx BUDGET TRADING PROGRAM

TABLE OF CONTENTS

  TOC \o "1-3" \h \z \u    HYPERLINK \l "_Toc168793771"  41.1.
Definitions	  PAGEREF _Toc168793771 \h  1  

  HYPERLINK \l "_Toc168793772"  41.2	 NOx Emission Budget	  PAGEREF
_Toc168793772 \h  10  

  HYPERLINK \l "_Toc168793773"  41.3	 Applicability.	  PAGEREF
_Toc168793773 \h  10  

  HYPERLINK \l "_Toc168793774"  41.4	General Provisions	  PAGEREF
_Toc168793774 \h  12  

  HYPERLINK \l "_Toc168793775"  41.5	NOx Allowance Allocations	  PAGEREF
_Toc168793775 \h  16  

  HYPERLINK \l "_Toc168793776"  41.6	NOx Authorized Account
Representative for NOx Budget Sources	  PAGEREF _Toc168793776 \h  16  

  HYPERLINK \l "_Toc168793777"  41.7	Permits	  PAGEREF _Toc168793777 \h 
21  

  HYPERLINK \l "_Toc168793778"  41.8	NOx Allowance Transfers	  PAGEREF
_Toc168793778 \h  25  

  HYPERLINK \l "_Toc168793779"  41.9	NOx Allowance Tracking System	 
PAGEREF _Toc168793779 \h  27  

  HYPERLINK \l "_Toc168793780"  41.10	Monitoring	  PAGEREF _Toc168793780
\h  38  

  HYPERLINK \l "_Toc168793781"  41.11	Recordkeeping and reporting.	 
PAGEREF _Toc168793781 \h  49  

  HYPERLINK \l "_Toc168793782"  41.12	Compliance Certification	  PAGEREF
_Toc168793782 \h  53  

  HYPERLINK \l "_Toc168793783"  41.13	Individual Opt-ins.	  PAGEREF
_Toc168793783 \h  55  

  HYPERLINK \l "_Toc168793784"  41.14	Retired unit exemption.	  PAGEREF
_Toc168793784 \h  64  

  HYPERLINK \l "_Toc168793785"  41.15	General Provisions	  PAGEREF
_Toc168793785 \h  66  

 

RHODE ISLAND DEPARTMENT OF ENVIRONMENTAL MANAGEMENT

OFFICE OF AIR RESOURCES

AIR POLLUTION CONTROL REGULATION NO. 41

NOx BUDGET TRADING PROGRAM

Definitions

Unless otherwise expressly defined in this section, the terms used in
this regulation shall be defined by reference to the Rhode Island Air
Pollution Control General Definitions Regulation. As used in this
regulation, the following terms shall, where the context permits, be
construed as follows:

	41.1.1	"Account certificate of representation" means the completed and
signed submission required by section 41.6 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.

	41.1.2	"Account number" means the identification number given by the
Administrator to each NOx Allowance Tracking System account.

	41.1.3	"Acid Rain emissions limitation" means, as defined in 40 CFR
72.2, a limitation on emissions of sulfur dioxide or nitrogen oxides
under the Acid Rain Program under title IV of the CAA.

	41.1.4	"Allocate or allocation" means the determination by the
Department or the Administrator of the number of NOx allowances to be
initially credited to a NOx Budget unit or an allocation set-aside.

	41.1.5	"Automated data acquisition and handling system or DAHS" means
that component of the CEMS, or other emissions monitoring system
approved for use under section 41.10, 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 section 41.10 and 41.11.

	41.1.6	"Boiler" means an enclosed fossil or other fuel-fired combustion
device used to produce heat and to transfer heat to recirculating water,
steam, or other medium.

	41.1.7	"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.

	41.1.8	"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.

	41.1.9	"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 41.14, for a unit that
is a NOx Budget unit under section 41.3 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
41.13 or section 41.14, for a unit that is not a NOx Budget unit under
section 41.3 on the date the unit commences commercial operation, the
date the unit becomes a NOx Budget unit under section 41.3 shall be the
unit's date of commencement of commercial operation.

	41.1.10	"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
41.14, for a unit that is a NOx Budget unit under section 41.3 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
41.13 or section 41.14, for a unit that is not a NOx Budget unit under
section 41.3 on the date of commencement of operation, the date the unit
becomes a NOx Budget unit under section 41.3 shall be the unit's date of
commencement of operation.

	41.1.11	"Common stack" means a single flue through which emissions from
two or more units are exhausted.

	41.1.12	"Compliance certification" means a submission to the Department
or the Administrator, as appropriate, that is required under section
41.12 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 section 41.6.

	41.1.13	"Compliance account" means a NOx Allowance Tracking System
account, established by the Administrator for a NOx Budget unit under
section 41.9, 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.

	41.1.14	"Continuous emission monitoring system or CEMS" means the
equipment required under section 41.10 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 Part 75, in a
continuous emission monitoring system:

Flow monitor;

Nitrogen oxides pollutant concentration monitors;

		(c)	Diluent gas monitor (oxygen or carbon dioxide) when such
monitoring is required by section 41.10;

			(d)	A continuous moisture monitor when such monitoring is required by
section 41.10; and

			(e)	An automated data acquisition and handling system.

	41.1.15	"Control period" means the period beginning May 1 of a year and
ending on September 30 of the same year, inclusive.

	41.1.16	"Emissions" means air pollutants exhausted from a unit or
source into the atmosphere, as measured, recorded, and reported to the
Administrator by the NOx authorized account representative and as
determined by the Administrator in accordance with sections 41.10 and
41.11.

	41.1.17	"Energy Information Administration" means the Energy
Information Administration of the United States Department of Energy.

	41.1.18	"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.

	41.1.19	"Fossil fuel-fired" means, with regard to a unit:

The combustion  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 any year starting
in 1995 or, if a unit had no heat input starting in 1995, during the
last year of operation of the unit prior to 1995; or

			(b)	The combustion of fossil fuel, alone or in combination with any
other fuel, where fossil fuel is projected to comprise more than 50
percent of the annual heat input on a Btu basis during any year;
provided that the unit shall be "fossil fuel-fired" as of the date,
during such year, on which the unit begins combusting fossil fuel.

	41.1.20	"General account" means a NOx Allowance Tracking System
account, established under section 41.9 that is not a compliance account
or an overdraft account.

	41.1.21	"Generator" means a device that produces electricity.

	41.1.22	"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 Administrator by the NOx authorized account
representative and as determined by the Administrator in accordance with
sections 41.10 and 41.11, and does not include the heat derived from
preheated combustion air, recirculated flue gases, or exhaust from other
sources.

	41.1.23	"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:

			(a)	For the life of the unit;

			(b)	For a cumulative term of no less than 30 years, including
contracts that permit an election for early termination; or

	(c)	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.

	41.1.24	"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.

	41.1.25	"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).

	41.1.26	"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 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.

	41.1.27	"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.

	41.1.28	"Monitoring system" means any monitoring system that meets the
requirements of section 41.10, including a continuous emissions
monitoring system, an excepted monitoring system, or an alternative
monitoring system.

	41.1.29	"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.

	41.1.30	"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.

	41.1.31	"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 Air Pollution
Control Regulation No. 29.

	41.1.32	"NOx allowance" means an authorization by the Department or the
Administrator 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.

	41.1.33	"NOx allowance deduction or deduct NOx allowances" means the
permanent withdrawal of NOx allowances by the Administrator 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 sections 41.10 and
41.11, or for any other allowance surrender obligation under this
regulation. 

	41.1.34	"NOx allowances held or hold NOx allowances" means the NOx
allowances recorded by the Administrator, or submitted to the
Administrator for recordation, in accordance with sections 41.8 and
41.9, in a NOx Allowance Tracking System account.

	41.1.35	"NOx Allowance Tracking System" means the system by which the
Administrator records allocations, deductions, and transfers of NOx
allowances under the NOx Budget Trading Program.

	41.1.36	"NOx Allowance Tracking System account" means an account in the
NOx Allowance Tracking System established by the Administrator for
purposes of recording the allocation, holding, transferring, or
deducting of NOx allowances.

	41.1.37	"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 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.

	41.1.38	"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 section 41.6, 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 section 41.9, to transfer or otherwise
dispose of NOx allowances held in the general account.

	41.1.39	"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 paragraphs
41.9.5(a) and (b), adjusted by any deductions of such NOx allowances to
account for excess emissions for a prior control period under paragraph
41.9.5(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
subsections 41.13.7 or 41.13.8.

	41.1.40	"NOx Budget opt-in permit" means a NOx Budget permit covering a
NOx Budget opt-in source.

	41.1.41	"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
section 41.13.

	41.1.42	"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.

	41.1.43	"NOx Budget source" means a source that includes one or more
NOx Budget units. 

	41.1.44	"NOx Budget Trading Program" means a multi-state nitrogen
oxides air pollution control and emission reduction program established
pursuant to 40 CFR 51.121, as a means of mitigating the interstate
transport of ozone and nitrogen oxides, an ozone precursor.

	41.1.45	"NOx Budget" unit means a unit that is subject to the NOx
Budget Trading Program emissions limitation under sections 41.3 or
41.13.

	41.1.46	"Operating" means, with regard to a unit under paragraph
41.7.4(d)(2) and subsection 41.13.1, 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 subsection
41.13.4.

	41.1.47	"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 subsection 41.13.4 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. 

	41.1.48	"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 section 41.13.

	41.1.49	"Overdraft account" means the NOx Allowance Tracking System
account, established by the Administrator under section 41.9, for each
NOx Budget source where there are two or more NOx Budget units.

	41.1.50	"Owner" means any of the following persons:

			(a)	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 subsection 41.13.4 is submitted and not denied or
withdrawn; or

			(b)	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
subsection 41.13.4 is submitted and not denied or withdrawn; or

			(c)	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 subsection
41.13.4 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
subsection 41.13.4 is submitted and not denied or withdrawn; or

			(d)	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.

	41.1.51	"Receive or receipt of" means, when referring to the Department
or the Administrator, 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 Administrator in the regular
course of business.

	41.1.52	"Recordation, record, or recorded" means, with regard to NOx
allowances, the movement of NOx allowances by the Administrator from one
NOx Allowance Tracking System account to another, for purposes of
allocation, transfer, or deduction.

	41.1.53	"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.

	41.1.54	"Serial number" means, when referring to NOx allowances, the
unique identification number assigned to each NOx allowance by the
Administrator, under paragraph 41.9.4(c).

	41.1.55	"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."

	41.1.56	"State" means one of the 48 contiguous States and the District
of Columbia specified in 40 CFR 51.121, or any non-federal authority in
or including such States or the District of Columbia (including local
agencies, and Statewide agencies) or any eligible Indian tribe in an
area of such State or the District of Columbia, that adopts a NOx Budget
Trading Program pursuant to 40 CFR 51.121.  To the extent a State
incorporates by reference the provisions of 40 CFR Part 96, the term
"State" shall mean the incorporating State.  The term "State" shall have
its conventional meaning where such meaning is clear from the context.

	41.1.57	"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.

	41.1.58	"Submit or serve" means to send or transmit a document,
information, or correspondence to the person specified in accordance
with the applicable regulation:

			(a)	In person;

			(b)	By United States Postal Service; or

			(c)	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.

	41.1.59	"Title V operating permit" means an operating permit issued
under Air Pollution Control Regulation No. 29.

	41.1.60	"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 sections 41.10 and
41.11, 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.

	41.1.61	"Unit" means a fossil fuel-fired stationary boiler, combustion
turbine, or combined cycle system.

	41.1.62	"Unit operating day" means a calendar day in which a unit
combusts any fuel.

	41.1.63	"Unit operating hour or hour of unit operation" means any hour
(or fraction of an hour) during which a unit combusts any fuel.

	41.1.64	"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 Administrator for the unit if the unit was not otherwise subject to
the requirements of 40 CFR Part 75 for the year.

 PRIVATE  41.2		NOx Emission Budget tc  \l 1 "38.2	NOx Emission Budget" 

	41.2.1	The NOx Budget Trading Program is established to limit total
mass NOx emissions from NOx Budget sources during the control period of
May 1 through September 30. The initial NOx Budget is as follows:

		(a)	For 2003 and each year thereafter, through and including 2005, not
to exceed 936 tons during each control period.

		(b)	[Reserved]	

41.3		Applicability.

	41.3.1	General Applicability

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:

(a) Any unit that, any time on or after January 1, 1995, serves a
generator 

	with a nameplate capacity greater than 15 MWe and sells any amount 	of
electricity; or

(b) Any unit that is not a unit under paragraph (a) of this section and
that 

	has a maximum design heat input greater than 250 mmBtu/hr.

	41.3.2	Exempted Units

A unit that meets the general applicability requirements under
subsection 41.3.1, that has a federally enforceable permit that meets
the requirements of paragraph (b) of this subsection, shall not be a NOx
Budget unit starting with the effective date of such federally
enforceable permit.

		(b)	For each control period, the federally enforceable permit must:

(1)	Restrict the unit to burning only natural gas or fuel oil.

		(2)	Restrict the unit's operating hours to the number calculated by
dividing 25 tons of potential NOx mass emissions by the unit's maximum
potential hourly NOx mass emissions.

		(3)	Calculate the unit's potential NOx mass emissions as follows:

			(a)	Select the default NOx emission rate in Table 1b of 40 CFR
75.19(c)(1)(ii) that has the highest default NOx emission factor of any
type of fuel (natural gas or fuel oil) that the unit is allowed to burn
under the fuel use restriction in paragraph (b)(1) of this subsection;
and

			(b)	Multiply the default NOx emission rate selected above by the
unit's maximum rated hourly heat input. The owner or operator of the
unit may petition the Department to use a lower value for the unit's
maximum rated hourly heat input than the value as defined under 41.1.26.
The Department may approve such lower value if the owner or operator
demonstrates that the maximum hourly heat input specified by the
manufacturer or the highest observed hourly heat input, or both, are not
representative, and that such lower value is representative, of the
unit's current capabilities because modifications have been made to the
unit, limiting its capacity permanently.

		(4)	Require that the owner or operator of the unit shall retain at the
source that includes the unit, for 5 years, records demonstrating that
the operating hours restriction, the fuel use restriction, and the other
requirements of the permit related to these restrictions were met.

		(5)	Require that the owner or operator of the unit shall report the
unit's hours of operation (treating any partial hour of operation as a
whole hour of operation) during each control period to the Department by
November 1 of each year for which the unit is subject to the federally
enforceable permit.

			(c)		The Department will notify the Administrator in writing of each
whose federally enforceable permit issued by the Department includes
such restrictions.  The Department will also notify the Administrator in
writing of each unit whose federally enforceable permit issued by the
Department is revised to remove any such restriction, whose federally
enforceable permit issued by the Department includes any such
restriction that is no longer applicable, or which does not comply with
any such restriction.  

	(d)	If, for any control period, the fuel use restriction under
paragraph (b)(1) of this subsection or the operating hours restriction
under paragraph (b)(2) subsection is removed from the unit's federally
enforceable permit or otherwise becomes no longer applicable or if, for
any such control period, the unit does not comply with the fuel use
restriction under paragraph (b)(1) of this subsection or the operating
hours restriction under paragraph (b)(2) of this subsection, the unit
shall be a NOx Budget unit, subject to the requirements of this
regulation.  Such unit shall be treated as commencing operation and, for
a unit under paragraph (a) of subsection 41.3.1, commencing commercial
operation on September 30 of the control period for which the fuel use
restriction or the operating hours restriction is no longer applicable
or during which the unit does not comply with the fuel use restriction
or the operating hours restriction.

41.4	General Provisions

41.4.1	Nitrogen oxides requirements.

	(a)	The owners and operators of each NOx Budget source and each NOx
Budget unit at the source shall hold NOx allowances available for
compliance deductions under subsection 41.9.5, 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
sections 41.10 and 41.11 of this regulation.

	(b)	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.

	(c)	A NOx Budget unit shall be subject to the requirements under
paragraph (a) of this subsection starting on the later of May 1, 2003 or
the date on which the unit commences operation.

  	

		(d)	NOx allowances shall be held in, deducted from, or transferred
among NOx Allowance Tracking System accounts in accordance with Sections
41.5, 41.8, 41.9, and 41.13 of this regulation.

	(e)	A NOx allowance shall not be deducted, in order to comply with the
requirements under paragraph (a) of this subsection, for a control
period in a year prior to the year for which the NOx allowance was
allocated.

	(f)	A NOx allowance allocated by the Department or the Administrator
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
41.14 and no provision of law shall be construed to limit the authority
of the United States or the State of Rhode Island to terminate or limit
such authorization.

	(g)	A NOx allowance allocated by the Department or the Administrator
under the NOx Budget Trading Program does not constitute a property
right.

	(h)	Upon recordation by the Administrator under section 41.8, 41.9, or
41.13 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.

41.4.2	 Excess emissions requirements.

	(a)	The owners and operators of a NOx Budget unit that has excess
emissions in any control period shall:

		(1)	Surrender the NOx allowances required for deduction under
subsection 41.9.5(d)(1); and

		(2)	Pay any fine, penalty, or assessment or comply with any other
remedy imposed under subsection 41.9.5(d)(3).

41.4.3	Recordkeeping and Reporting Requirements.

	(a)	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 Administrator.

		(1)	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 subsection
41.6.5; 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.

		(2)	All emissions monitoring information, in accordance with sections
41.10 and 41.11 of this regulation; provided that to the extent that
section 41.11 of this regulation provides for a 3-year period for
recordkeeping, the 3-year period shall apply.

	

			(3)	Copies of all reports, compliance certifications, and other
submissions and all records made or required under the NOx Budget
Trading Program.

 

		 	(4)	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.

		(b)	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 sections 41.10, 41.11, 41.12, or 41.13 of this
regulation.

41.4.4	Liability.

	(a)	Any person who knowingly violates any requirement or prohibition of
the NOx Budget Trading Program, a NOx Budget permit, or an exemption
under section 41.14 shall be subject to enforcement pursuant to
applicable State or Federal law.  

	

		(b)	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.

		(c)	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.

	(d)	Each NOx Budget source and each NOx Budget unit shall meet the
requirements of the NOx Budget Trading Program.

	

		(e)	Any provision of the NOx Budget Trading Program that applies to a
NOx Budget source (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.

		(f)	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 sections
41.10 or 41.11 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.

	41.4.5	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 41.14
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 Rhode Island State Implementation plan, a federally
enforceable permit, or the CAA.

	41.4.6	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 Rhode
Island or Federal holiday, the time period shall be extended to the next
business day.

41.5	NOx Allowance Allocations

	41.5.1	Timing requirements for NOx allowance allocations.

	(a)	By April 1, 2003 and April 1 of each year thereafter, the
Department will submit to the Administrator the NOx allowance
allocations for the control period in the year that is three years after
the year of the applicable deadline for submission under this paragraph.
 If the Department fails to submit to the Administrator the NOx
allowance allocations in accordance with this paragraph, the
Administrator will allocate, for the applicable control period, the same
number of NOx allowances as were allocated for the preceding control
period.

	41.5.2	(a)	The initial allocation of allowances, for each control
period, by budget source, for the allocation period 2003-2005 is as
follows:

			Budget source					Allowance Allocation

			Ocean State Power						275

			Pawtucket Power Associates					 42

			Manchester Street Station					262

			Tiverton Power Associates					 46

		(b)	[Reserved]

	41.5.3	[Reserved for a possible new source set aside or energy
efficiency and renewable energy set aside.] 

41.6	NOx Authorized Account Representative for NOx Budget Sources

	41.6.1	Authorization and responsibilities of the NOx authorized account
representative.

	(a)	Except as provided under subsection 41.6.2, 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 Administrator of a complete account certificate
of representation under subsection 41.6.5, 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 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
Administrator, 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 Administrator has received a complete account certificate of
representation under subsection 41.6.5 for a NOx authorized account
representative of the source and the NOx Budget units at the source.

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."

	The Department and the Administrator 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) of this subsection.

	41.6.2	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 Administrator of a complete account certificate
of representation under subsection 41.6.5, 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 subsection and 41.6.1(a), 41.6.4, 41.6.5, and
41.9.2, 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.

	41.6.3	Changing the NOx authorized account representative and the
alternate NOx authorized account representative.

	(a)	Changing the NOx authorized account representative.  The NOx
authorized account representative may be changed at any time upon
receipt by the Administrator of a superseding complete account
certificate of representation under subsection 41.6.5.  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 Administrator 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 Administrator of a superseding complete account
certificate of representation under subsection 41.6.5.  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 Administrator
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. 

41.6.4 	Changes in the owners and operators.

	(a)	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 Administrator, as if the new owner or operator were included in such
list.

	(b)	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.

	41.6.5	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 Administrator:

		(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 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 Administrator,
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 Administrator,
documents of agreement referred to in the account certificate of
representation shall not be submitted to the Department or the
Administrator.  Neither the Department nor the Administrator shall be
under any obligation to review or evaluate the sufficiency of such
documents, if submitted.

	41.6.6	Objections concerning the NOx authorized account representative.

	(a)	Once a complete account certificate of representation under
subsection 41.6.5 has been submitted and received, the Department and
the Administrator will rely on the account certificate of representation
unless and until a superseding complete account certificate of
representation under subsection 41.6.5 is received by the Administrator.

	(b)	Except as provided in subsection 41.6.3, no objection or other
communication submitted to the Department or the Administrator
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 Administrator under the NOx Budget
Trading Program. 

	(c)	Neither the Department nor the Administrator 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. 

41.7	Permits

	41.7.1	Permit Requirements.

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:

			(1)	Submit to the Department a complete NOx Budget permit application
under subsection 41.7.4 in accordance with the deadlines specified in
subsection 41.7.3(b), (c) and (d);

		  	(2)	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.

  

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.

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 section 41.7 of this regulation for such NOx Budget source. 

41.7.2	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 Air Pollution Control Regulation No. 29,
except as provided otherwise by this section or section 41.13 of this
regulation.

		(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 section or
section 41.13 of this regulation.

	(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 subsection.

41.7.3	NOx Budget permit applications.

	(a)	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 subsection
41.7.4 by the applicable deadline in paragraph (b) or (c) of this
subsection.

	(b)	For NOx Budget sources required to have a title V operating permit:

		a.	For any source, with one or more NOx Budget units under subsection
41.3.1 that commences operation before January 1, 2000, the NOx
authorized account representative shall submit a complete NOx Budget
permit application under subsection 41.7.4 covering such NOx Budget
units to the Department before November 1, 2001.

		b.	For any source, with any NOx Budget unit under subsection 41.3.1
that commences operation on or after January 1, 2000, the NOx authorized
account representative shall submit a complete NOx Budget permit
application under subsection 41.7.4 covering such NOx Budget unit to the
Department at least 18 months before the later of May 1, 2003 or the
date on which the NOx Budget unit commences operation.

	(c)	For NOx Budget sources required to have a non-title V permit:

		a.	For any source, with one or more NOx Budget units under subsection
41.3.1 that commences operation before January 1, 2000, the NOx
authorized account representative shall submit a complete NOx Budget
permit application under subsection 41.7.4 covering such NOx Budget
units to the Department before November 1, 2001.

		b.	For any source, with any NOx Budget unit under subsection 41.3.1
that commences operation on or after January 1, 2000, the NOx authorized
account representative shall submit a complete NOx Budget permit
application under subsection 41.7.4 covering such NOx Budget unit to the
Department at least 18 months before the later of May 1, 2003 or the
date on which the NOx Budget unit commences operation.

	(d)	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 subsection 41.7.4 for the
NOx Budget source covering the NOx Budget units at the source in
accordance with the provisions of Air Pollution Control Regulation No.
29 addressing permit renewals.

		(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 subsection 41.7.4 for the NOx Budget source
covering the NOx Budget units at the source in accordance with the
Departments non-title V permits regulations addressing permit
renewal.

41.7.4	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 subsection 41.3.1 or under section
41.13 of this regulation; 

	(c)	The standard requirements under 40 CFR 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 section 41.13 of Air Pollution Control Regulation No. 41
is not a NOx Budget unit under section 41.3 and is not covered by a
retired unit exemption under section 41.14 that is in effect."

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 section 41.13 of Air Pollution Control Regulation No. 41 is
currently operating, as that term is defined under section 41.1"

41.7.5	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 subsection 41.7.4 as approved or adjusted by the
Department.

	(b)	Each NOx Budget permit is deemed to incorporate automatically the
definitions of terms under section 41.1 and, upon recordation by the
Administrator under sections 41.8, 41.9, or 41.13 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.

41.7.6	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 the
applicable provision of subsection 41.7.3(b) or (c) or shall become
effective by the later of:

	(a)	May 1, 2003;

	(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.

41.7.7	NOx Budget permit revisions.

	(a)	For a NOx Budget source with a title V operating permit, except as
provided in subsection 41.7.5(b), the Department will revise the NOx
Budget permit, as necessary, in accordance with the provisions of Air
Pollution Control Regulation No. 29 addressing permit revisions.

	(b)	For a NOx Budget source with a non-title V permit, except as
provided in subsection 41.7.5(b), the Department will revise the NOx
Budget permit, as necessary, in accordance with the Department's
non-title V permits regulations addressing permit revisions.

41.8	NOx Allowance Transfers

41.8.1	Submission of NOx allowance transfers.

	The NOx authorized account representatives seeking recordation of a NOx
allowance transfer shall submit the transfer to the Administrator.  To
be considered correctly submitted, the NOx allowance transfer shall
include the following elements in a format specified by the
Administrator:

	(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.

41.8.2	EPA recordation.

	(a)	Within 5 business days of receiving a NOx allowance transfer,
except as provided in paragraph (b) of this subsection, the
Administrator 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 41.8; 

		(2)	The transferor account includes each NOx allowance identified by
serial number in the transfer; and

		(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 subsection 41.9.4(b).

	(c)	Where a NOx allowance transfer submitted for recordation fails to
meet the requirements of paragraph (a) of this section, the
Administrator will not record such transfer.

41.8.3	Notification.

	(a)	Notification of recordation.  Within 5 business days of recordation
of a NOx allowance transfer under subsection 41.8.2, the Administrator
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 subsection 41.8.2(a), the Administrator 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.

41.9	NOx Allowance Tracking System

41.9.1	NOx Allowance Tracking System accounts.

	(a)	Nature and function of compliance accounts and overdraft accounts. 
Consistent with subsection 41.9(a), the Administrator will establish one
compliance account for each NOx Budget unit and one overdraft account
for each source with two or more NOx Budget units.  Allocations of NOx
allowances pursuant to section 41.5 or subsection 41.13.9 and deductions
or transfers of NOx allowances pursuant to subsections 41.12.2, 41.9.5,
41.9.7, section 41.8, or section 41.13 will be recorded in the
compliance accounts or overdraft accounts in accordance with this
subpart.

	(b)	Nature and function of general accounts.  Consistent with
subsection 41.9.2(b), the Administrator will establish, upon request, a
general account for any person.  Transfers of allowances pursuant to
section 41.8 will be recorded in the general account in accordance with
this section.

41.9.2	Establishment of accounts.

	(a)	Compliance accounts and overdraft accounts.  Upon receipt of a
complete account certificate of representation under subsection 41.6.5,
the Administrator 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 Administrator and shall
include the following elements in a format prescribed by the
Administrator:

			a.	Name, mailing 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;

			b.	At the option of the NOx authorized account representative,
organization name and type of organization;

			c.	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;

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 Administrator or a court regarding the
general account." 

			e.	The signature of the NOx authorized account representative and any
alternate NOx authorized account representative and the dates signed.

			f.	Unless otherwise required by the Department or the Administrator,
documents of agreement referred to in the account certificate of
representation shall not be submitted to the Department or the
Administrator.  Neither the Department nor the Administrator shall be
under any obligation to review or evaluate the sufficiency of such
documents, if submitted.

		(2)	Upon receipt by the Administrator of a complete application for a
general account under paragraph (b)(1) of this subsection: 

			a.	The Administrator will establish a general account for the person
or persons for whom the application is submitted.  

			b.	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 Administrator or a court regarding the
general account. 

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 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." 

				d.	The Administrator 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) c. of this subsection.

		(3)	a.	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.

			b.	Upon receipt by the Administrator of a complete application for a
general account under paragraph (b)(1) of this subsection, 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)	a.	The NOx authorized account representative for a general account
may be changed at any time upon receipt by the Administrator of a
superseding complete application for a general account under paragraph
(b)(1) of this subsection.  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
Administrator 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.

			b.	The alternate NOx authorized account representative for a general
account may be changed at any time upon receipt by the Administrator of
a superseding complete application for a general account under paragraph
(b)(1) of this subsection.  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 Administrator 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.

			c.	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 Administrator,
as if the new person were included in such list.

			d.	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 respect
to the NOx allowances in the general account to include the change.

		(5)	a.	Once a complete application for a general account under
paragraph (b)(1) of this subsection has been submitted and received, the
Administrator will rely on the application unless and until a
superseding complete application for a general account under paragraph
(b)(1) of this subsection is received by the Administrator.

			b.	Except as provided in paragraph (b)(4) of this subsection, no
objection or other communication submitted to the Administrator
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
Administrator under the NOx Budget Trading Program. 

			c.	The Administrator 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 Administrator will assign a unique
identifying number to each account established under paragraph (a) or
(b) of this subsection.

41.9.3	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 Administrator 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 Administrator
will assign a unique identifying number to each NOx authorized account
representative.

41.9.4	Recordation of NOx allowance allocations.

	(a)	The Administrator will record the NOx allowances for 2003 in the
NOx Budget units' compliance accounts and the allocation set-asides, as
allocated under section 41.5.  The Administrator will also record the
NOx allowances allocated under subsection 41.13.9(a)(1) for each NOx
Budget opt-in source in its compliance account.   

	(b)	Each year, after the Administrator has made all deductions from a
NOx Budget unit's compliance account and the overdraft account pursuant
to subsection 41.9.5, the Administrator will record NOx allowances, as
allocated to the unit under section 41.5 or under subsection
41.13.9(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 Administrator will also record NOx allowances,
as allocated under section 41.5, 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 in an account, the Administrator will
assign each NOx allowance a unique identification number that will
include digits identifying the year for which the NOx allowance is
allocated.

41.9.5	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 subsection 41.8.1 by the NOx
allowance transfer deadline for that control period.

	(b)	Deductions for compliance.

		(1)	Following the recordation, in accordance with subsection 41.8.2,
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 Administrator will deduct NOx allowances available under paragraph
(a) of this subsection to cover the unit's NOx emissions (as determined
in accordance with sections 41.10 and 41.11):

			a.	From the compliance account; and

			b.	Only if no more NOx allowances available under paragraph (a) of
this subsection remain in the compliance account, from the overdraft
account.  In deducting allowances for units at the source from the
overdraft account, the Administrator 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 Administrator will deduct NOx allowances first under paragraph
(b)(1) a. of this subsection and then under paragraph (b)(1) b. of this
subsection:

			a.	Until the number of NOx allowances deducted for the control period
equals the number of tons of NOx emissions, determined in accordance
with sections 41.10 and 41.11, from the unit for the control period for
which compliance is being determined; or

			b.	Until no more NOx allowances available under paragraph (a) of this
subsection remain in the respective account.

		(c)	Identification of NOx allowances by serial number.  

			(1)	The NOx authorized account representative for each compliance
account may identify by serial number the NOx allowances to be deducted
from the unit's compliance account under paragraph (b), (d), or (e) of
this subsection.  Such identification shall be made in the compliance
certification report submitted in accordance with subsection 41.12.1.

		(2)	First-in, first-out.  The Administrator 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 subsection,
or the overdraft account on a first-in, first-out (FIFO) accounting
basis in the following order:

			a.	Those NOx allowances that were allocated for the control period to
the unit under sections 41.5 or 41.13;

			b.	Those NOx allowances that were allocated for the control period to
any unit and transferred and recorded in the account pursuant to section
41.8, in order of their date of recordation; 

			c.	Those NOx allowances that were allocated for a prior control
period to the unit under sections 41.5 or 41.13; and

			d.	Those NOx allowances that were allocated for a prior control
period to any unit and transferred and recorded in the account pursuant
to section 41.8, in order of their date of recordation.  

	(d)	Deductions for excess emissions.

		(1)	After making the deductions for compliance under paragraph (b) of
this subsection, the Administrator 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 Administrator will deduct the required
number of NOx allowances, regardless of the control period for which
they were allocated, whenever NOx allowances are recorded in either
account.

		(3)	Any allowance deduction required under paragraph (d) of this
subsection 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:

			a.	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.

			b.	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 sections 41.10 and 41.11:

		(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 subsection 41.12.1.  

		(2)	Notwithstanding paragraph (b)(2) a. of this subsection, the
Administrator 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 subsection) of the number of
tons of NOx emissions, as determined in accordance with sections 41.10
and 41.11, 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.

	(f)	The Administrator 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 subsection. 

41.9.6	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
subsections 41.12.2, 41.9.5, 41.9.7, section 41.8, or section 41.13.  

		(2)	The Administrator 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 Administrator has made all
deductions for a given control period from the compliance account or
overdraft account pursuant to subsection 41.9.5. 

	(b)	Each year starting in 2004, after the Administrator has completed
the designation of banked NOx allowances under paragraph (a)(2) of this
subsection and before May 1of the year, the Administrator 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 Administrator 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 subsection, 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 subsection
41.9.5.  

		(3)	If the total number of banked NOx allowances determined, under
paragraph (b)(1) of this subsection, 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 subsection 41.9.5, except as follows:

			a.	The Administrator 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 subsection, to be held in compliance accounts,
overdraft accounts, or general accounts.

			*b.	The Administrator will multiply the number of banked NOx
allowances in each compliance account or overdraft account.  The
resulting product is the number of banked NOx allowances in the account
that may be deducted for compliance in accordance with subsection
41.9.5.  Any banked NOx allowances in excess of the resulting product
may be deducted for compliance in accordance with subsection 41.9.5,
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 subsection 41.9.5.

	

41.9.7	Account error.

	The Administrator may, at his or her sole discretion and on his or her
own motion, correct any error in any NOx Allowance Tracking System
account.  Within 10 business days of making such correction, the
Administrator will notify the NOx authorized account representative for
the account.

41.9.8	Closing of general accounts.

	(a)	The NOx authorized account representative of a general account may
instruct the Administrator 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
subsection 41.8.1 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 Administrator 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 Administrator receives a correctly submitted transfer
of NOx allowances into the account under subsection 41.8.1 or a
statement submitted by the NOx authorized account representative
demonstrating to the satisfaction of the Administrator good cause as to
why the account should not be closed.  

41.10	Monitoring

41.10.1	Monitoring requirements.

	(a)	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 this section and in subpart H of 40 CFR Part 75. For purposes of
complying with such requirements, the definitions in section 41.1 and in
40 CFR 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 41.1.

	(b)	The emissions measurements recorded and reported in accordance with
this section shall be used to determine compliance by the unit with the
NOx Budget emissions limitation under subsection 41.4.1.

41.10.2	General Requirements.

	(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 section 41.13:

		(1)	Install all monitoring systems required under this section for
monitoring NOx mass.  This includes all systems required to monitor NOx
emission rate, NOx concentration, heat input, and flow, in accordance
with 40 CFR Parts 75.71 and 75.72.

		(2)	Install all monitoring systems for monitoring heat input, if
required under subsection 41.11.6 for developing NOx allowance
allocations.

		(3)	Successfully complete all certification tests required under
subsection 41.10.3 and meet all other provisions of this section and 40
CFR Part 75 applicable to the monitoring systems under paragraphs (a)(1)
and (2) of this subsection. 	

		(4)	Record, and report data from the monitoring systems under
paragraphs (a)(1) and (2) of this subsection.

	(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 under section 41.3 that commence operation before
January 1, 2002, must comply with the requirements of this section by
May 1, 2002. 

		(3)	NOx Budget units under section 41.3 that commence operation on or
after January 1, 2002 and that report on an annual basis under
subsection 41.11.4 must comply with the requirements of this section by
the later of the following dates:

			a.	May 1, 2002; or

			b.	the earlier of:

				(i)	180 days after the date on which the unit commences operation
or, 

				(ii)	For units under paragraph 41.3.1(a), 90 days after the date on
which the unit commences commercial operation.

		(4)	NOx Budget units under section 41.3 that commence operation on or
after January 1, 2002 and that report on a control season basis under
subsection 41.11.4 must comply with the requirements of this section by
the later of the following dates:

			a.	the earlier of

				(i)	180 days after the date on which the unit commences operation
or, 

				(ii)	for units under paragraph 41.3.1(a), 90 days after the date on
which the unit commences commercial operation.

			b.	However, if the applicable deadline under paragraph (b)(4) a.
subsection does not occur during a control period, May 1; immediately
following the date determined in accordance with paragraph (b)(4) a. of
this subsection.

		(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 subsection or section 41.13:

			a.	90 days after the date on which emissions first exit to the
atmosphere through the new stack or flue

			b.	However, if the unit reports on a control season basis under
subsection 41.11.4 and the applicable deadline under paragraph (b)(5) a.
of this subsection does not occur during the control period, May 1
immediately following the applicable deadline in paragraph (b)(5) a. of
this subsection.

		(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 section 41.13.

	(c)	Reporting data prior to initial certification. 

		 (1)	The owner or operator of a NOx Budget under paragraphs (b)(3) or
(b)(4) of this subsection 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 40
CFR 75.70(g), from the date and hour that the unit starts operating
until all required certification tests are successfully completed.

	(d)	Prohibitions.

		(1)	No owner or operator of a NOx Budget unit or a non-NOx Budget unit
monitored under 40 CFR 75.72(b)(2)(ii) 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
subsection 41.11.5.

		(2)	No owner or operator of a NOx Budget unit or a non-NOx Budget unit
monitored under 40 CFR 75.72(b)(2)(ii) 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 section and 40 CFR Part 75 except as
provided for in 40 CFR 75.74.

		(3)	No owner or operator of a NOx Budget unit or a non-NOx Budget unit
monitored under 40 CFR 75.72(b)(2)(ii) 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 section and 40 CFR Part 75 except as provided for in 40 CFR
75.74.

		(4)	No owner or operator of a NOx Budget unit s or a non-NOx Budget
unit monitored under 40 CFR 75.72(b)(2)(ii) shall retire or permanently
discontinue use of the continuous emission monitoring system, any
component thereof, or any other approved emission monitoring system
under this section, except under any one of the following circumstances:

			a.	During the period that the unit is covered by a retired unit
exemption under section 41.14 that is in effect;

			b.	The owner or operator is monitoring emissions from the unit with
another certified monitoring system approved, in accordance with the
applicable provisions of this section 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

			c.	The NOx authorized account representative submits notification of
the date of certification testing of a replacement monitoring system in
accordance with subsection 41.10.3(b)(2).

41.10.3	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 Administrator approved a
petition under 40 CFR 75.17(a) or (b) for apportioning the NOx emission
rate measured in a common stack or a petition under 40 CFR 75.66 for an
alternative to a requirement in 40 CFR 75.17, the NOx authorized account
representative shall resubmit the petition to the Administrator under
subsection 41.11.5(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 40 CFR 75.72, or for any NOx concentration CEMS used under the
provisions of 40 CFR 75.71(a)(2), the owner or operator shall meet the
requirements of paragraph (b) of this subsection.

	(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 40 CFR 75.19 shall also meet the
requirements of paragraph (c) of this subsection 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 subsection.  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 40 CFR 75.72, or that uses a NOx concentration CEMS under
40 CFR 75.71(a)(2) also shall comply with the following initial
certification and recertification procedures.

		(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 40 CFR 75.20.  The owner or operator shall ensure that
all applicable certification tests are successfully completed by the
deadlines specified in subsection 41.10.2(b).  In addition, whenever the
owner or operator installs a monitoring system in order to meet the
requirements of this section in a location where no such monitoring
system was previously installed, initial certification according to 40
CFR 75.20 is required.

		(2)	Requirements for recertification.  Whenever the owner or operator
makes a replacement, modification, or change in a certified monitoring
system that the Administrator or the Department determines significantly
affects the ability of the system to accurately measure or record NOx
mass emissions or heat input or to meet the requirements of 40 CFR 75.21
or appendix B to 40 CFR Part 75, the owner or operator shall recertify
the monitoring system according to 40 CFR 75.20(b).  Furthermore,
whenever the owner or operator makes a replacement, modification, or
change to the flue gas handling system or the unit's operation that the
Administrator or the Department determines to significantly change the
flow or concentration profile, the owner or operator shall recertify the
continuous emissions monitoring system according to 40 CFR 75.20(b). 
Examples of changes which require recertification include: replacement
of the analyzer, change in location or orientation of the sampling probe
or site, or changing of flow rate monitor polynomial coefficients.  

		(3)	Certification approval process for initial certifications and
recertification.

			a.	Notification of certification.  The NOx authorized account
representative shall submit to the Department, the appropriate EPA
Regional Office and the Administrator a written notice of the dates of
certification in accordance with subsection 41.10.5. 

			b.	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.

			c.	Except for units using the low mass emission excepted methodology
under 40 CFR 75.19, the provisional certification date for a monitor
shall be determined using the procedures set forth in 40 CFR
75.20(a)(3).  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) b. of
this subsection.  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. 

			d.	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)
b. of this subsection.  In the event the 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.

				(i)	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.

				(ii)	Incomplete application notice.  A certification application
will be considered complete when all of the applicable information
required to be submitted under paragraph (b)(3) b. of this subsection
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) d. (iii) of this subsection. 

				(iii)	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) d. (ii) of this subsection 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) e. of this subsection for each monitoring system or
component thereof which is disapproved for initial certification.  

				(iv)	Audit decertification.  The Department may issue a notice of
disapproval of the certification status of a monitor in accordance with
subsection 41.10.4(b).

			e.	Procedures for loss of certification.  If the Department issues a
notice of disapproval of a certification application under paragraph
(b)(3) d. (iii) of this subsection or a notice of disapproval of
certification status under paragraph (b)(3) d. (iv) of this subsection,
then:    

				(i)	The owner or operator shall substitute the following values, for
each hour of unit operation during the period of invalid data beginning
with the date and hour of provisional certification and continuing until
the time, date, and hour specified under 40 CFR 75.20(a)(5)(i): 

					(A)	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 40 CFR 75.19, the maximum potential NOx emission rate
and the maximum potential hourly heat input of the unit.  

					(B)	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;  

				(ii)	The NOx authorized account representative shall submit a
notification of certification retest dates and a new certification
application in accordance with paragraphs (b)(3) a. and b. of this
subsection; and 

				(iii)	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 40 CFR 75.19.  The
owner or operator of a gas-fired or oil-fired unit using the low mass
emissions excepted methodology under 40 CFR 75.19 shall meet the
applicable general operating requirements of 40 CFR 75.10, the
applicable requirements of 40 CFR 75.19, and the applicable
certification requirements of subsection 41.10.3, 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 units that are reporting on an annual basis under subsection
41.11.4(b)(1): 

			a.	For a unit that has commences operation before its compliance
deadline under subsection 41.10.3(b), from January 1 of the year
following submission of the certification application for approval to
use the low mass emissions excepted methodology under 40 CFR 75.19 until
the completion of the period for the Department review; or

			b.	For a unit that commences operation after its compliance deadline
under subsection 41.10.3(b), the date of submission of the certification
application for approval to use the low mass emissions excepted
methodology under 40 CFR 75.19 until the completion of the period for
Department review, or 

		(2)	For units that are reporting on a control period basis under
subsection 41.11.4(b)(2): 

			a.	For a unit that commenced operation before its compliance deadline
under subsection 41.10.3(b), where the certification application is
submitted before May 1, from May 1 of the year of the submission of the
certification application for approval to use the low mass emissions
excepted methodology under 40 CFR 75.19 until the completion of the
period for the Department review; or

			b.	For a unit that commenced operation before its compliance deadline
under subsection 41.10.3(b), where the certification application is
submitted after May 1, from May 1 of the year following submission of
the certification application for approval to use the low mass emissions
excepted methodology under 40 CFR 75.19 until the completion of the
period for the Department review; or

			c.	For a unit that commences operation after its compliance deadline
under subsection 41.10.3(b), where the unit commences operation before
May 1, from May 1 of the year that the unit commenced operation, until
the completion of the period for the Department's review.

			d.	For a unit that has not operated after its compliance deadline
under subsection 41.10.3(b), where the certification application is
submitted after May 1, but before October 1st, from the date of
submission of a certification application for approval to use the low
mass emissions excepted methodology under 40 CFR 75.19 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 Administrator 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 subsection.  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
subsection and 40 CFR 75.20(f). 

41.10.4	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 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 subsection 41.10.3
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
Administrator.  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 subsection 41.10.3 for each disapproved system. 

41.10.5	Notifications.

		The NOx authorized account representative for a NOx Budget unit shall
submit written notice to the Department and the Administrator in
accordance with 40 CFR 75.61, 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.

41.11	Recordkeeping and reporting.

41.11.1	General provisions

	(a)	The NOx authorized account representative shall comply with all
recordkeeping and reporting requirements in this section and with the
requirements of subsection 41.6.1(e).

	(b)	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 section, section 41.10
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. 

41.11.2	Monitoring Plans.  

	(a)	The owner or operator of a unit subject to an Acid Rain emissions
limitation shall comply with requirements of 40 CFR 75.62, except that
the monitoring plan shall also include all of the information required
by subpart H of 40 CFR Part 75.

	(b)	The owner or operator of a unit that is not subject to an Acid Rain
emissions limitation shall comply with requirements of 40 CFR 75.62,
except that the monitoring plan is only required to include the
information required by subpart H of 40 CFR Part 75.

41.11.3	Certification Applications.

	(a)	The NOx authorized account representative shall submit an
application to the Department within 45 days after completing all
initial certification or recertification tests required under subsection
41.10.3 including the information required under subpart H of 40 CFR
Part 75.

41.11.4	Quarterly reports.

	The NOx authorized account representative shall submit quarterly
reports, as follows: 

	(a)	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 section, the NOx authorized account
representative shall submit a quarterly report for each calendar quarter
beginning with:

		(1)	For units commencing operation prior to May 1, 2002, the earlier
of the calendar quarter that includes the date of initial provisional
certification under subsection 41.10.3(b)(3) c or, if the certification
tests are not completed by May 1, 2002, the partial calendar quarter
from May 1, 2002 through June 30, 2002.   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, 2002;
or

		(2)	For a unit that commences operation after May 1, 2002, 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.

	(b)	If a NOx budget unit is not subject to an Acid Rain emission
limitation, then the NOx authorized account representative shall either:

		(1)	Meet all of the requirements of 40 CFR Part 75 related to
monitoring and reporting NOx mass emissions during the entire year and
meet the reporting deadlines specified in paragraph (a) of this
subsection; or

		(2)	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 40 CFR
75.74(d)(3) through September 30 of each year in accordance with the
provisions of 40 CFR 75.74(b).  The NOx authorized account
representative shall submit a quarterly report for each calendar
quarter, beginning with:

			a.	For units commencing operation prior to May 1, 2002, the earlier
of the calendar quarter that includes the date of initial provisional
certification under subsection 41.10.3(b)(3) c, or if the certification
tests are not completed by May 1, 2002, the partial calendar quarter
from May 1, 2002 through June 30, 2002.  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, 2002; or

			b.	For units that commence operation after May 1, 2002 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

			c.	For units that commence operation after May 1, 2002 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 subsection 41.10.3(b)(3) c 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.

			d.	For units that commence operation after May 1, 2002 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 subsection 41.10.3(b)(3) c 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.

	(c)	The NOx authorized account representative shall submit each
quarterly report to the Administrator 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
40 CFR 75.64.

		(1)	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. 

		(2)	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). 

	(d)	Compliance certification.  The NOx authorized account
representative shall submit to the Administrator 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: 

		(1)	The monitoring data submitted were recorded in accordance with the
applicable requirements of this section, section 41.10 and 40 CFR Part
75, including the quality assurance procedures and specifications; and

			(2)	For a unit with add-on NOx emission controls and for all hours
where data are substituted in accordance with 40 CFR 75.34(a)(1), 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

		(3)	For a unit that is reporting on a control period basis under
subsection 41.11.4 the NOx emission rate and NOx concentration values
substituted for missing data under subpart D of 40 CFR Part 75 are
calculated using only values from a control period and do not
systematically underestimate NOx emissions.

41.11.5	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 40 CFR 75.66 to the Administrator requesting approval to apply an
alternative to any requirement of this section and section 41.10.  

		(1)	Application of an alternative to any requirement of this section
or section 41.10 is in accordance with the section only to the extent
that the petition is approved by the Administrator, in consultation with
the Department.

		(2)	Notwithstanding paragraph (a)(1) of this subsection, if the
petition requests approval to apply an alternative to a requirement
concerning any additional CEMS required under the common stack
provisions of 40 CFR 75.72, the petition is governed by paragraph (b) of
this subsection. 

	(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 40 CFR 75.66 to the Department and the Administrator
requesting approval to apply an alternative to any requirement of this
section and section 41.10.  

		(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 40 CFR 75.66 to the Department and the Administrator
requesting approval to apply an alternative to a requirement concerning
any additional CEMS required under the common stack provisions of 40 CFR
75.72 or a NOx concentration CEMS used under 40 CFR 75.71(a)(2).

		(2)	Application of an alternative to any requirement of this section
or section 41.10 is in accordance with the section only to the extent
the petition under paragraph (b) of this subsection is approved by both
the Department and the Administrator.   

41.12	Compliance Certification

41.12.1	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 Administrator 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 subsection the following elements, in a format prescribed by the
Administrator, 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 subsection 41.9.5 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 section 41.10, the
percentage of allowances that is to be deducted from each unit's
compliance account under subsection 41.9.5(e); and

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

	(c)	Compliance certification.  In the compliance certification report
under paragraph (a) of this subsection, 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 sections 41.10 and 41.11;

		(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 sections 41.10 and 41.11.  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
section 41.10 and 41.11 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
section 41.10 and 41.11, if any, has changed; and

		(5)	If a change is required to be reported under paragraph (c)(4) of
this subsection, 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.

	41.12.2	Department's and Administrator's action on compliance
certifications.

 		(a)	The Department or the Administrator 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 Administrator 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 subsection.

41.13	Individual Opt-ins.

41.13.1	Applicability.

		A unit that is in the State, is not a NOx Budget unit under section
41.3, vents all of its emissions to a stack, and is operating, may
qualify, under this section, 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 41.14 that is in effect, or is not operating is not
eligible to become a NOx Budget opt-in source.

41.13.2	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
sections 41.1 through 41.12 of this regulation.

41.13.3	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.

41.13.4	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 subsection 41.13.1 may submit
to the Department at any time, except as provided under subsection
41.13.7(g):

		(1)	A complete NOx Budget permit application under subsection 41.7.4;

		(2)	A monitoring plan submitted in accordance with section 41.10; and

		(3)	A complete account certificate of representation under subsection
41.6.5, 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 subsection 41.7.4 to renew the NOx Budget opt-in
permit in accordance with subsection 41.7.3(c) and, if applicable, an
updated monitoring plan in accordance with section 41.10.

41.13.5	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
subsection 41.13.4 is submitted, in accordance with subsection 41.7.2
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 subsection
41.13.4.  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 sections 41.10 and 41.11.  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 subsection and after completion
of monitoring system certification under section 41.10, the NOx
emissions rate and the heat input of the unit shall be monitored and
reported in accordance with section 41.10 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 subsection, 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 subsection, 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 subsection 41.13.4. 
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 subsection, the Department will issue the draft
NOx Budget opt-in permit in accordance with subsection 41.7.2.

	(g)	Not withstanding paragraphs (a) through (f) of this subsection, 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 subsection 41.13.1, the Department will issue
a draft denial of a NOx Budget opt-in permit for the unit in accordance
with subsection 41.7.2.

	(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 subsection 41.13.4 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 subsection 41.13.4. 

	(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.

41.13.6	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 subsection
41.7.3 as approved or adjusted by the Department.

	(b)	Each NOx Budget opt-in permit is deemed to incorporate
automatically the definitions of terms under subsection 41.1 and, upon
recordation by the Administrator under sections 41. 8, 41.9 and 41.13,
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. 

41.13.7	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 subsection may withdraw
from the NOx Budget Trading Program and the NOx Budget opt-in permit may
be terminated under paragraph (e) of this subsection, 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 subsection 41.12.1.

		(2)	If the NOx Budget opt-in source has excess emissions for the
control period immediately before the withdrawal is to be effective, the
Administrator 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 subsection 41.9.5(d) for the control period.

		(3)	After the requirements for withdrawal under paragraphs (b)(1) and
(2) of this subsection are met, the Administrator 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
subsection 41.13.9 for any control period for which the withdrawal is to
be effective.  The Administrator 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 subsection 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.

		(2)	If the requirements for withdrawal under paragraphs (a) and (b) of
this subsection 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 NOx 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 subsection 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
subsection.  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
subsection.

	(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 subsection 41.13.4 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.

41.13.8	Change in regulatory status.

	(a)	Notification.  When a NOx Budget opt-in source becomes a NOx Budget
unit under section 41.3, the NOx authorized account representative shall
notify in writing the Department and the Administrator of such change in
the NOx Budget opt-in source's regulatory status, within 30 days of such
change.

		(b)	Department's and Administrator's action. 

	(1)	When the NOx Budget opt-in source becomes a NOx Budget unit under
section 41.3, 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 subsection 41.7.5 as of an effective date that is the date on
which such NOx Budget opt-in source becomes a NOx Budget unit under
section 41.3. 

		(2)	The Administrator will deduct from the compliance account for the
NOx Budget unit under paragraph (b)(1) of this subsection, 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:

			a.	Any NOx allowances allocated to the NOx Budget unit (as a NOx
Budget opt-in source) under subsection 41.13.9 for any control period
after the last control period during which the unit's NOx Budget opt-in
permit was effective; and

			b.	If the effective date of the NOx Budget permit revision under
paragraph (b)(1) of this subsection is during a control period, the NOx
allowances allocated to the NOx Budget unit (as a NOx Budget opt-in
source) under subsection 41.13.9 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) of this
subsection, divided by the total number of days in the control period.

		(3)	The NOx authorized account representative shall ensure that the
compliance account of the NOx Budget unit under paragraph (b)(1) 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)(2) of this subsection.  If the
compliance account or overdraft account does not contain sufficient NOx
allowances, the Administrator will deduct the required number of NOx
allowances, regardless of the control period for which they were
allocated, whenever NOx allowances are recorded in either account.

		(4)	For every control period during which the NOx Budget permit
revised under paragraph (b)(1) of this subsection is effective, the NOx
Budget unit under paragraph (b)(1) of this subsection will be treated,
solely for purposes of NOx allowance allocations under section 41.5, as
a unit that commenced operation on the effective date of the NOx Budget
permit revision under paragraph (b)(1) of this subsection and will be
allocated NOx allowances under subsection 41.5. 

		(5)	Notwithstanding paragraph (b)(4) of this subsection, if the
effective date of the NOx Budget permit revision under paragraph (b)(1)
of this subsection is during a control period, the following number of
NOx allowances will be allocated to the NOx Budget unit under paragraph
(b)(1) of this subsection under section 41.5 for the control period: the
number of NOx allowances otherwise allocated to the NOx Budget unit
under section 41.5 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) of this subsection,
divided by the total number of days in the control period.

		(6)	When the NOx authorized account representative of a NOx Budget
opt-in source does not renew its NOx Budget opt-in permit under
subsection 41.13.4(b), the Administrator will deduct from the NOx Budget
opt-in unit's compliance account, or the overdraft account of the NOx
Budget source where the NOx Budget opt-in 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 subsection 41.13.9 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 Administrator will deduct the required number of NOx
allowances, regardless of the control period for which they were
allocated, whenever NOx allowances are recorded in either account. 

		(7)	After the deduction under paragraph (b)(6) of this subsection is
completed, the Administrator 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
subsection 41.9.5, the Administrator 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.  

41.13.9	NOx allowance allocations to opt-in units.

		(a)	NOx allowance allocation.

		(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 Administrator the allocation for the control period in accordance
with paragraph (b) of this subsection.

		(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 Administrator allocations for
the next control period, in accordance with paragraph (b) of this
subsection.

	(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:

			a.	The NOx Budget opt-in source's baseline heat input determined
pursuant to subsection 41.13.5(c); or  

			b.	The NOx Budget opt-in source's heat input, as determined in
accordance with section 41.10, 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 subsection multiplied by the lesser of:

			a.	The NOx Budget opt-in source's baseline NOx emissions rate (in
lb/mmBtu) determined pursuant to subsection 41.13.5(c); or

			b.	The most stringent State or Federal NOx emissions limitation
applicable to the NOx Budget opt-in source during the control period.

41.14	Retired unit exemption.

41.14.1	This section applies to any NOx Budget unit, other than a NOx
Budget opt-in source, that is permanently retired.

41.14.2	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 41.1, 41.3,
41.5, 41.8, 41.9, and subsection 41.4.6.

	41.14.3	The exemption under subsection 41.14.2 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 section 41.6) 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
Administrator.  The statement shall state (in a format prescribed by the
Department) that the unit is permanently retired and will comply with
the requirements of subsection 41.14.5.

	41.14.4	After receipt of the notice under subsection 41.14.3, 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
subsections 41.14.2 and 41.14.5.

41.14.5	Special provisions.

	(a)	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 section 41.5. 

		(b)	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 subsection 41.7.4 for the unit not less than 18
months prior to the later of May 1, 2003 or the date on which the unit
is to first resume operation.

	(c) 	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 subsection 41.7.4 for the unit not less than 18
months prior to the later of May 1, 2003 or the date on which the unit
is to first resume operation.

		(d)	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.

	(e)	A unit that is exempt under this section is not eligible to be a
NOx Budget opt-in source under section 41.13.

		(f)	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 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 Administrator.  The owners and
operators bear the burden of proof that the unit is permanently retired.

		(g)	Loss of exemption.

		(1)	On the earlier of the following dates, a unit exempt under
subsection 41.14.2 shall lose its exemption:

				a.	The date on which the NOx authorized account representative
submits a NOx Budget permit application under subsection 41.14.5(b) or
(c); or

				b.	The date on which the NOx authorized account representative is
required under subsection 41.14.5(b) or (c) to submit a NOx Budget
permit application.

			(2)	For the purpose of applying monitoring requirements under section
41.10, 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.

General Provisions

Purpose

The purpose of this regulation is to specify the requirements of a
nitrogen oxides budget trading program

Authority

These regulations are authorized pursuant to R.I. Gen. Laws §
42-17.1-2(s) and 23-23, as amended, and have been promulgated pursuant
to the procedures set forth in the R.I. Administrative Procedures Act,
R.I. Gen. Laws Chapter 42-35

Application

The terms and provisions of this regulation shall be liberally construed
to permit the Department to effectuate the purposes of state law, goals
and policies.

Severability

If any provision of this regulation or the application thereof to any
person or circumstance, is held invalid by a court of competent
jurisdiction, the validity of the remainder of the regulation shall not
be affected thereby.

Effective Date

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__ day of ______June____, 2007_ to become effective twenty (20) days
thereafter, in accordance with the provisions of Chapters 23-23, 42-35,
42-17.1, 42-17.6, of the General Laws of Rhode Island of 1956, as
amended.

W. Michael Sullivan, PhD., Director

Department of Environmental Management

Notice Given on:  February 21, 2007

Public Hearing held:	March 23, 2007

Filing Date:	June 29, 2007

Effective Date:    July 19, 2007

Page   PAGE  63  of 66