Section 550. Banking

A. NO_x allowances may be banked for future use or transfer in a compliance account, an overdraft account, or a general account, as follows:

1. Any NO_x allowance that is held in a compliance account, an overdraft account, or a general account will remain in such account unless and until the NO_x allowance is deducted or transferred under 9VAC5-140-310, 9VAC5-140-540, 9VAC5-140-560, Article 7 (9VAC5-140-600 et seq.) of this part, or Article 9 (9VAC5-140-800 et seq.) of this part.

2. The administrator will designate, as a "banked" NO_x allowance, any NO_xallowance 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 9VAC5-140-540 (except deductions pursuant to 9VAC5-140-540 D 2), and that was allocated for that control period or a control period in a prior year.

B. Each year starting in 2005, after the administrator has completed the designation of banked NO_x allowances under subdivision A 2 of this section and before May 1 of the year, the administrator will determine the extent to which banked NO_x 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 NO_x allowances held in compliance accounts, overdraft accounts, or general accounts.

2. If the total number of banked NO_x allowances determined, under subdivision 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 NO_x Budget units are located, any banked NO_x allowance may be deducted for compliance in accordance with 9VAC5-140-540.

3. If the total number of banked NO_x allowances determined, under subdivision 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 NO_x Budget units are located, any banked allowance may be deducted for compliance in accordance with 9VAC5-140-540, 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 NO_x Budget units are located and divided by the total number of banked NO_x allowances determined, under subdivision 1 of this subsection, to be held in compliance accounts, overdraft accounts, or general accounts.

b. The administrator will multiply the number of banked NO_x allowances in each compliance account or overdraft account by the ratio determined in subdivision 3 a of this subsection. The resulting product is the number of banked NO_x allowances in the account that may be deducted for compliance in accordance with 9VAC5-140-540. Any banked NO_x allowances in excess of the resulting product may be deducted for compliance in accordance with 9VAC5-140-540, except that, if such NO_xallowances are used to make a deduction, two such NO_x allowances shall be deducted for each deduction of one NO_x allowance required under 9VAC5-140-540.

Historical Notes

Derived from Volume 18, Issue 20, eff. July 17, 2002; amended, Virginia Register Volume 20, Issue 12, eff. March 24, 2004; Errata, 20:13 VA.R. 1643 March 8, 2004.

Statutory Authority

§§ 10.1-1308 and 10.1-1322.3 of the Code of Virginia; §§ 108, 109, 110 and 302 of the Clean Air Act; and 40 CFR Part 51.