40 CFR § 97.86 - Withdrawal from NO Budget Trading Program.

# 97.86 Withdrawal from NO Budget Trading Program.

(a) *Requesting withdrawal.* To withdraw from the NO<sub>X</sub> Budget Trading Program, the NO<sub>X</sub> authorized account representative of a NO<sub>X</sub> 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<sub>X</sub> Budget opt-in unit covered by a request under paragraph (a) of this section may withdraw from the NO<sub>X</sub> Budget Trading Program and the NO<sub>X</sub> 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<sub>X</sub> 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<sub>X</sub> 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<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 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<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 unit 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 that source under § 97.88 for any control period for which the withdrawal is to be effective. The Administrator will close the NO<sub>X</sub> 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<sub>X</sub> Budget opt-in unit.

(c) A NO<sub>X</sub> Budget opt-in unit that withdraws from the NO<sub>X</sub> Budget Trading Program shall comply with all requirements under the NO<sub>X</sub> Budget Trading Program concerning all years for which such NO<sub>X</sub> Budget opt-in unit was a NO<sub>X</sub> 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<sub>X</sub> allowances required), the Administrator will issue a notification to the permitting authority and the NO<sub>X</sub> authorized account representative of the NO<sub>X</sub> Budget opt-in unit of the acceptance of the withdrawal of the NO<sub>X</sub> 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<sub>X</sub> authorized account representative of the NO<sub>X</sub> Budget opt-in unit that the request to withdraw is denied. If the NO<sub>X</sub> Budget opt-in unit's request to withdraw is denied, the NO<sub>X</sub> Budget opt-in unit shall remain subject to the requirements for a NO<sub>X</sub> 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<sub>X</sub> Budget permit covering the NO<sub>X</sub> Budget opt-in unit to terminate the NO<sub>X</sub> Budget opt-in permit as of the effective date specified under paragraph (d)(1) of this section. A NO<sub>X</sub> Budget opt-in unit shall continue to be a NO<sub>X</sub> 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<sub>X</sub> Budget opt-in unit, the NO<sub>X</sub> 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*<sub>X</sub> *Budget Trading Program.* Once a NO<sub>X</sub> Budget opt-in unit withdraws from the NO<sub>X</sub> Budget Trading Program and its NO<sub>X</sub> Budget opt-in permit is terminated under paragraph (e) of this section, the NO<sub>X</sub> authorized account representative may not submit another application for a NO<sub>X</sub> 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<sub>X</sub> Budget opt-in permit became effective.