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 Virginia Administrative Code (Last Updated: January 10, 2017)
 Title 9. Environment
 Agency 5. State Air Pollution Control Board
 Chapter 140. Regulation for Emissions Trading Programs

  Section 540. Compliance  

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  • A. 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 9VAC5-140-600 by the NOx allowance transfer deadline for that control period.

    B. 1. Following the recordation, in accordance with 9VAC5-140-610, 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 subsection A of this section to cover the unit's NOx emissions (as determined in accordance with Article 8 (9VAC5-140-700 et seq.) of this part) or to account for actual utilization under 9VAC5-140-420 E for the control period:

    a. From the compliance account; and

    b. Only if no more NOx allowances available under subsection A of this section remain in the compliance account, from the overdraft account. In deducting allowances for units at the source from the overdraft account, the 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 subdivision 1 a of this subsection and then under subdivision 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 Article 8 (9VAC5-140-700 et seq.) of this part, from the unit for the control period for which compliance is being determined, plus the number of NOx allowances required for deduction to account for actual utilization under 9VAC5-140-420 E for the control period; or

    b. Until no more NOx allowances available under subsection A of this section remain in the respective account.

    C. 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 subsection B, D, or E of this section. Such identification shall be made in the compliance certification report submitted in accordance with 9VAC5-140-300.

    2. 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 subdivision 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 Article 5 (9VAC5-140-400 et seq.) or Article 9 (9VAC5-140-800 et seq.) of this part;

    b. Those NOx allowances that were allocated for the control period to any unit and transferred and recorded in the account pursuant to Article 7 (9VAC5-140-600 et seq.) of this part, in order of their date of recordation;

    c. Those NOx allowances that were allocated for a prior control period to the unit under Article 5 (9VAC5-140-400 et seq.) or Article 9 (9VAC5-140-800 et seq.) of this part; 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 Article 7 (9VAC5-140-600 et seq.) of this part, in order of their date of recordation.

    D. 1. After making the deductions for compliance under subsection B of this section, the administrator shall 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 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 the Virginia Air Pollution Control Law. The following guidelines shall 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. In the case of units sharing a common stack and having emissions that are not separately monitored or apportioned in accordance with Article 8 (9VAC5-140-700 et seq.) of this part:

    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 9VAC5-140-300.

    2. Notwithstanding subdivision B 2 a of this section, the administrator will deduct NOx allowances for each such unit until the number of NOx allowances deducted equals the unit's identified percentage (under subdivision 1 of this subsection) of the number of tons of NOx emissions, as determined in accordance with Article 8 (9VAC5-140-700 et seq.) of this part, from the common stack for the control period for which compliance is being determined or, if no percentage is identified, an equal percentage for each such unit, plus the number of allowances required for deduction to account for actual utilization under 9VAC5-140-420 E for the control period.

    F. The administrator will record in the appropriate compliance account or overdraft account all deductions from such an account pursuant to subsection B, D, or E of this section.

Historical Notes

Derived from Volume 18, Issue 20, eff. July 17, 2002.

Statutory Authority

§§ 10.1-1308 and 10.1-1322.3 of the Code of Virginia.