§ 97.86 - Withdrawal from NOX Budget Trading Program.

§ 97.86 Withdrawal from NO_X Budget Trading Program.

(a) Requesting withdrawal. To withdraw from the NO_X Budget Trading Program, the NO_X authorized account representative of a NO_X Budget opt-in unit shall submit to the Administrator and the permitting authority 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 NO_X Budget opt-in unit covered by a request under paragraph (a) of this section may withdraw from the NO_X Budget Trading Program and the NO_X Budget opt-in permit may be terminated under paragraph (e) of this section, the following conditions must be met:

(1) For the control period immediately before the withdrawal is to be effective, the NO_X authorized account representative must submit or must have submitted to the Administrator and the permitting authority an annual compliance certification report in accordance with § 97.30.

(2) If the NO_X Budget opt-in unit has excess emissions for the control period immediately before the withdrawal is to be effective, the Administrator will deduct or has deducted from the NO_X Budget opt-in unit's compliance account, or the overdraft account of the NO_X Budget source where the NO_X Budget opt-in unit is located, the full amount required under § 97.54(d) for the control period.

(3) After the requirements for withdrawal under paragraphs (b)(1) and (2) of this section are met, the Administrator will deduct from the NO_X Budget opt-in unit's compliance account, or the overdraft account of the NO_X Budget source where the NO_X Budget opt-in unit is located, NO_X allowances equal in number to and allocated for the same or a prior control period as any NO_X allowances allocated to that source under § 97.88 for any control period for which the withdrawal is to be effective. The Administrator will close the NO_X Budget opt-in unit's compliance account and transfer any remaining allowances to a general account specified by the owners and operators of the NO_X Budget opt-in unit.

(c) A NO_X Budget opt-in unit that withdraws from the NO_X Budget Trading Program shall comply with all requirements under the NO_X Budget Trading Program concerning all years for which such NO_X Budget opt-in unit was a NO_X Budget opt-in unit, even if such requirements arise or must be complied with after the withdrawal takes effect.

(d) Notification.

(1) After the requirements for withdrawal under paragraphs (a) and (b) of this section are met (including deduction of the full amount of NO_X allowances required), the Administrator will issue a notification to the permitting authority and the NO_X authorized account representative of the NO_X Budget opt-in unit of the acceptance of the withdrawal of the NO_X Budget opt-in unit 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 section are not met, the Administrator will issue a notification to the permitting authority and the NO_X authorized account representative of the NO_X Budget opt-in unit that the request to withdraw is denied. If the NO_X Budget opt-in unit's request to withdraw is denied, the NO_X Budget opt-in unit shall remain subject to the requirements for a NO_X Budget opt-in unit.

(e) Permit revision. After the Administrator issues a notification under paragraph (d)(1) of this section that the requirements for withdrawal have been met, the permitting authority will revise the NO_X Budget permit covering the NO_X Budget opt-in unit to terminate the NO_X Budget opt-in permit as of the effective date specified under paragraph (d)(1) of this section. A NO_X Budget opt-in unit shall continue to be a NO_X Budget opt-in unit until the effective date of the termination.

(f) Reapplication upon failure to meet conditions of withdrawal. If the Administrator denies the request to withdraw the NO_X Budget opt-in unit, the NO_X authorized account representative may submit another request to withdraw in accordance with paragraphs (a) and (b) of this section.

(g) Ability to return to the NO_X Budget Trading Program. Once a NO_X Budget opt-in unit withdraws from the NO_X Budget Trading Program and its NO_X Budget opt-in permit is terminated under paragraph (e) of this section, the NO_X authorized account representative may not submit another application for a NO_X Budget opt-in permit under § 97.83 for the unit prior to the date that is 4 years after the date on which the terminated NO_X Budget opt-in permit became effective.