40 CFR § 96.88 - NO allowance allocations to opt-in units.

---
identifier: "/us/cfr/t40/s96.88"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "40 CFR § 96.88 - NO allowance allocations to opt-in units."
title_number: 40
title_name: "Protection of Environment"
section_number: "96.88"
section_name: "NO allowance allocations to opt-in units."
chapter_name: "ENVIRONMENTAL PROTECTION AGENCY"
subchapter_number: "C"
subchapter_name: "AIR PROGRAMS"
part_number: "96"
part_name: "NOX BUDGET TRADING PROGRAM AND CAIR NOX AND SO2 TRADING PROGRAMS FOR STATE IMPLEMENTATION PLANS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 7401, 7403, 7410, 7601, and 7651,"
regulatory_source: "63 FR 57514, Oct. 27, 1998, unless otherwise noted."
cfr_part: "96"
---


# 96.88 NO allowance allocations to opt-in units.

(a) *NO*<sub>X</sub> *allowance allocation.* (1) By December 31 immediately before the first control period for which the NO<sub>X</sub> Budget opt-in permit is effective, the permitting authority will allocate NO<sub>X</sub> allowances to the NO<sub>X</sub> Budget opt-in source and submit to the Administrator the allocation for the control period in accordance with paragraph (b) of this section.

(2) By no later than December 31, after the first control period for which the NO<sub>X</sub> Budget opt-in permit is in effect, and December 31 of each year thereafter, the permitting authority will allocate NO<sub>X</sub> allowances to the NO<sub>X</sub> Budget opt-in source, and submit to the Administrator allocations for the next control period, in accordance with paragraph (b) of this section.

(b) For each control period for which the NO<sub>X</sub> Budget opt-in source has an approved NO<sub>X</sub> Budget opt-in permit, the NO<sub>X</sub> Budget opt-in source will be allocated NO<sub>X</sub> allowances in accordance with the following procedures:

(1) The heat input (in mmBtu) used for calculating NO<sub>X</sub> allowance allocations will be the lesser of:

(i) The NO<sub>X</sub> Budget opt-in source's baseline heat input determined pursuant to § 96.84(c); or

(ii) The NO<sub>X</sub> Budget opt-in source's heat input, as determined in accordance with subpart H of this part, for the control period in the year prior to the year of the control period for which the NO<sub>X</sub> allocations are being calculated.

(2) The permitting authority will allocate NO<sub>X</sub> allowances to the NO<sub>X</sub> Budget opt-in source in an amount equaling the heat input (in mmBtu) determined under paragraph (b)(1) of this section multiplied by the lesser of:

(i) The NO<sub>X</sub> Budget opt-in source's baseline NO<sub>X</sub> emissions rate (in lb/mmBtu) determined pursuant to § 96.84(c); or

(ii) The most stringent State or Federal NO<sub>X</sub> emissions limitation applicable to the NO<sub>X</sub> Budget opt-in source during the control period.