# 96.87 Change in regulatory status.
(a) *Notification.* When a NO<sub>X</sub> Budget opt-in source becomes a NO<sub>X</sub> Budget unit under § 96.4, the NO<sub>X</sub> authorized account representative shall notify in writing the permitting authority and the Administrator of such change in the NO<sub>X</sub> Budget opt-in source's regulatory status, within 30 days of such change.
(b) *Permitting authority's and Administrator's action.* (1)(i) When the NO<sub>X</sub> Budget opt-in source becomes a NO<sub>X</sub> Budget unit under § 96.4, the permitting authority will revise the NO<sub>X</sub> Budget opt-in source's NO<sub>X</sub> Budget opt-in permit to meet the requirements of a NO<sub>X</sub> Budget permit under § 96.23 as of an effective date that is the date on which such NO<sub>X</sub> Budget opt-in source becomes a NO<sub>X</sub> Budget unit under § 96.4.
(ii)(A) The Administrator will deduct from the compliance account for the NO<sub>X</sub> Budget unit under paragraph (b)(1)(i) of this section, or the overdraft account of the NO<sub>X</sub> Budget source where the unit is located, NO<sub>X</sub> allowances equal in number to and allocated for the same or a prior control period as:
(*1*) Any NO<sub>X</sub> allowances allocated to the NO<sub>X</sub> Budget unit (as a NO<sub>X</sub> Budget opt-in source) under § 96.88 for any control period after the last control period during which the unit's NO<sub>X</sub> Budget opt-in permit was effective; and
(*2*) If the effective date of the NO<sub>X</sub> Budget permit revision under paragraph (b)(1)(i) of this section is during a control period, the NO<sub>X</sub> allowances allocated to the NO<sub>X</sub> Budget unit (as a NO<sub>X</sub> Budget opt-in source) under § 96.88 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)(i) of this section, divided by the total number of days in the control period.
(B) The NO<sub>X</sub> authorized account representative shall ensure that the compliance account of the NO<sub>X</sub> Budget unit under paragraph (b)(1)(i) of this section, or the overdraft account of the NO<sub>X</sub> Budget source where the unit is located, includes the NO<sub>X</sub> allowances necessary for completion of the deduction under paragraph (b)(1)(ii)(A) of this section. If the compliance account or overdraft account does not contain sufficient NO<sub>X</sub> allowances, the Administrator will deduct the required number of NO<sub>X</sub> allowances, regardless of the control period for which they were allocated, whenever NO<sub>X</sub> allowances are recorded in either account.
(iii)(A) For every control period during which the NO<sub>X</sub> Budget permit revised under paragraph (b)(1)(i) of this section is effective, the NO<sub>X</sub> Budget unit under paragraph (b)(1)(i) of this section will be treated, solely for purposes of NO<sub>X</sub> allowance allocations under § 96.42, as a unit that commenced operation on the effective date of the NO<sub>X</sub> Budget permit revision under paragraph (b)(1)(i) of this section and will be allocated NO<sub>X</sub> allowances under § 96.42.
(B) Notwithstanding paragraph (b)(1)(iii)(A) of this section, if the effective date of the NO<sub>X</sub> Budget permit revision under paragraph (b)(1)(i) of this section is during a control period, the following number of NO<sub>X</sub> allowances will be allocated to the NO<sub>X</sub> Budget unit under paragraph (b)(1)(i) of this section under § 96.42 for the control period: the number of NO<sub>X</sub> allowances otherwise allocated to the NO<sub>X</sub> Budget unit under § 96.42 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)(i) of this section, divided by the total number of days in the control period.
(2)(i) When the NO<sub>X</sub> authorized account representative of a NO<sub>X</sub> Budget opt-in source does not renew its NO<sub>X</sub> Budget opt-in permit under § 96.83(b), the Administrator will deduct from the NO<sub>X</sub> Budget opt-in unit's compliance account, or the overdraft account of the NO<sub>X</sub> Budget source where the NO<sub>X</sub> Budget opt-in source is located, NO<sub>X</sub> allowances equal in number to and allocated for the same or a prior control period as any NO<sub>X</sub> allowances allocated to the NO<sub>X</sub> Budget opt-in source under § 96.88 for any control period after the last control period for which the NO<sub>X</sub> Budget opt-in permit is effective. The NO<sub>X</sub> authorized account representative shall ensure that the NO<sub>X</sub> Budget opt-in source's compliance account or the overdraft account of the NO<sub>X</sub> Budget source where the NO<sub>X</sub> Budget opt-in source is located includes the NO<sub>X</sub> allowances necessary for completion of such deduction. If the compliance account or overdraft account does not contain sufficient NO<sub>X</sub> allowances, the Administrator will deduct the required number of NO<sub>X</sub> allowances, regardless of the control period for which they were allocated, whenever NO<sub>X</sub> allowances are recorded in either account.
(ii) After the deduction under paragraph (b)(2)(i) of this section is completed, the Administrator will close the NO<sub>X</sub> Budget opt-in source's compliance account. If any NO<sub>X</sub> allowances remain in the compliance account after completion of such deduction and any deduction under § 96.54, the Administrator will close the NO<sub>X</sub> 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 NO<sub>X</sub> Budget opt-in source. The NO<sub>X</sub> authorized account representative for the NO<sub>X</sub> Budget opt-in source shall become the NO<sub>X</sub> authorized account representative for the general account.