25 Pa. Code § 145.54 - Compliance
(a)
NOx allowance transfer deadline. The
NOx allowances are available to be deducted for
compliance with a unit's NOx budget emissions limitation
for a control period in a given year only if the NOx
allowances meet the following conditions:
(1)
The allowances are allocated for a control period in a prior year or the same
year.
(2) The allowances 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 §
145.60 (relating to submission of
NOx allowance transfers) by the
NOx allowance transfer deadline for that control period.
(b)
Deductions
for compliance.
(1) Following the
recordation, in accordance with §
145.61 (relating to
NOx transfer recordation), 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 NOx Budget Administrator will deduct
NOx allowances available under subsection (a) to cover
the unit's NOx emissions (as determined in accordance
with §§
145.70-145.76 (relating to recordkeeping
and reporting requirements)), or to account for actual heat input under §
145.42(e)
(relating to NOx allowance allocations), for the control
period:
(i) From the compliance
account.
(ii) Only if no more
NOx allowances available under subsection (a) remain in
the compliance account, from the overdraft account. In deducting allowances for
units at the source from the overdraft account, the NOx
Budget 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) NOx allowances
will be deducted first under subparagraph (i) and then under subparagraph (ii):
(i) Until the number of
NOx allowances deducted for the control period equals
the number of tons of NOx emissions, determined in
accordance with §§
145.70-145.76, from the unit for the
control period for which compliance is being determined, plus the number of
NOx allowances required for deduction to account for
actual heat input under §
145.42(e) for the
control period.
(ii) Until no more
NOx allowances available under subsection (a) remain in
the respective account.
(c)
Allowance
identification.
(1)
Identification of NOx allowances by serial
number. The NOx authorized account
representative for each compliance account may identify by serial number the
NOx allowances to be deducted from the unit's compliance
account under subsection (b), (d), (e) or (f). The identification shall be made
in the compliance certification report submitted in accordance with §
145.30 (relating to compliance
certification report).
(2)
First-in, first-out. NOx allowances
will be deducted 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 (1), or
the overdraft account on a first-in, first-out (FIFO) accounting basis in the
following order:
(i) Those
NOx allowances that were allocated for the control
period to the unit under §§
145.40-145.43 or §§
145.80-145.88 (relating to
NOx allowance allocations; and opt-in
process).
(ii) Those
NOx allowances that were allocated for the control
period to any unit and transferred and recorded in the account under
§§
145.60-145.62 (relating to
NOx allowance transfers), in order of their date of
recordation.
(d)
Deductions for excess emissions.
(1) After making the deductions for
compliance under subsection (b), the NOx Budget
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
NOx Budget Administrator will deduct the required number
of NOx allowances, regardless of the control period for
which they were allocated, whenever NOx allowances are
recorded in either account.
(3) An
allowance deduction required under subsection (d) does 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 the act. The
following guidelines will be followed in assessing fines, penalties or other
obligations:
(i) For purposes of determining
the number of days of violation, if a NOx budget unit
has excess emissions for a control period, each day in the control period (153
days) constitutes a day in violation unless the owners and operators of the
unit demonstrate that a lesser number of days should be considered.
(ii) Each ton of excess emissions is a
separate violation.
(e)
Deductions for units sharing a
common stack. In the case of units sharing a common stack and having
emissions that are not separately monitored or apportioned in accordance with
§§
145.70-145.76:
(1) The NOx authorized
account representative of the units may identify the percentage of
NOx allowances to be deducted from each unit's
compliance account to cover the unit's share of NOx
emissions from the common stack for a control period. The identification shall
be made in the compliance certification report submitted in accordance with
§
145.30.
(2) Notwithstanding subsection (b)(2)(i), the
NOx Budget Administrator will deduct
NOx allowances for each unit until the number of
NOx allowances deducted equals the unit's identified
percentage (under paragraph (1)) of the number of tons of
NOx emissions, as determined in accordance with
§§
145.70-145.76, 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 unit, plus the number of
allowances required for deduction to account for actual heat input under §
145.42(e) for the
control period.
(f)
Deduction of banked allowances. Each year starting in 2005,
after the NOx Budget Administrator has completed the
designation of banked allowances under §
145.55(b)
(relating to banking) and before May 1 of the year, the
NOx Budget Administrator will determine the extent to
which banked NOx allowances otherwise available under
subsection (a) are available for compliance in the control period for the
current year as follows:
(1) The
NOx Budget 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 (1), to be
held in compliance accounts, overdraft accounts or general accounts is less
than or equal to 10% of the sum of the trading program budgets under §
145.40 (relating to State Trading
Program budget) for all states for the control period, any banked
NOx allowance may be deducted for compliance in
accordance with subsections (a)-(e).
(3) If the total number of banked
NOx allowances determined, under paragraph (1) to be
held in compliance accounts, overdraft accounts or general accounts exceeds 10%
of the sum of the trading program budgets under §
145.40 for Pennsylvania and the
trading program budgets approved by the administrator for other states
participating in the NOx budget trading program for the
control period, any banked allowance may be deducted for compliance in
accordance with subsections (a)-(e), except as follows:
(i) The NOx Budget
Administrator will determine the following ratio: 0.10 multiplied by the sum of
the trading program budgets under §
145.40 for all states for the
control period and divided by the total number of banked
NOx allowances determined, under paragraph (1), to be
held in compliance accounts, overdraft accounts, or general accounts.
(ii) The NOx Budget
Administrator will multiply the number of banked NOx
allowances in each compliance account or overdraft account by the ratio
determined under subparagraph (i). The resulting product is the number of
banked NOx allowances in the account that may be
deducted for compliance in accordance with subsections (a)-(e), except that, if
the NOx allowances are used to make a deduction under
subsection (b) or (e), two (rather than one), these NOx
allowances shall authorize up to 1 ton of NOx emissions
during the control period and shall be deducted for each deduction of one
NOx allowance required under subsection (b) or (e).
(g) The
NOx Budget Administrator will record in the appropriate
compliance account or overdraft account all deductions from the account under
subsection (b), (d) or (f).
Notes
This section cited in 25 Pa. Code § 123.121 (relating to NOx Allowance Program transition); 25 Pa. Code § 145.2 (relating to definitions); 25 Pa. Code § 145.4 (relating to applicability); 25 Pa. Code § 145.5 (relating to retired unit exemption); 25 Pa. Code § 145.30 (relating to compliance certification report); 25 Pa. Code § 145.42 (relating to NOx allowance allocations); 25 Pa. Code § 145.43 (relating to compliance supplement budget); 25 Pa. Code § 145.50 (relating to NOx Allowance Tracking System accounts); 25 Pa. Code § 145.53 (relating to recordation of NOx allowance allocations); 25 Pa. Code § 145.55 (relating to banking); 25 Pa. Code § 145.81 (relating to opt-in source general provisions); 25 Pa. Code § 145.86 (relating to opt-in source withdrawal from NOx Budget Trading Program); and 25 Pa. Code § 145.87 (relating to opt-in unit change in regulatory status).
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