(a) The owner or operator of any electric generating facility (EGF) shall comply with a daily and 30-day system cap emission limitation for nitrogen oxides (NOX ) in accordance with the requirements of this section. Each EGF in the system cap must be subject to the daily cap and appropriate 30-day cap of this section at all times. An EGF is not subject to this section if electric output is entirely dedicated to industrial customers. "Entirely dedicated" may include up to two weeks per year of service to the electric grid when the industrial customers' load sources are not operating. Alternatively, an EGF that generates electricity primarily for internal use, but that during 1997 and all subsequent calendar years transferred (or will transfer) that generated electricity to a utility power distribution system at a rate less than 3.85% of its actual electrical generation is not subject to the requirements of this section.
(b) Each EGF that is subject to §117.310 of this title (relating to Emission Specifications for Attainment Demonstration) must be included in the system cap.
(c) The system cap must be calculated as follows.
  (1) A rolling 30-day average emission cap applicable during the months of July, August, and September must be calculated using the following equation.
Attached Graphic
  (2) A rolling 30-day average emission cap applicable during all months other than July, August, and September must be calculated using the following equation.
Attached Graphic
  (3) A maximum daily cap must be calculated using the following equation.
Attached Graphic
(d) The NOX emissions monitoring required by §117.340 of this title (relating to Continuous Demonstration of Compliance) for each EGF in the system cap must be used to demonstrate continuous compliance with the system cap.
(e) For each operating EGF, the owner or operator shall use one of the following methods to provide substitute emissions compliance data during periods when the NOX monitor is off-line:
  (1) if the NOX monitor is a continuous emissions monitoring system (CEMS):
    (A) subject to 40 Code of Federal Regulations (CFR) 75, use the missing data procedures specified in 40 CFR 75, Subpart D (Missing Data Substitution Procedures); or
    (B) subject to 40 CFR 75, Appendix E, use the missing data procedures specified in 40 CFR 75, Appendix E, §2.5 (Missing Data Procedures);
  (2) use Appendix E monitoring in accordance with §117.1240(e) of this title (relating to Continuous Demonstration of Compliance);
  (3) if the NOX monitor is a predictive emissions monitoring system (PEMS):
    (A) use the methods specified in 40 CFR 75, Subpart D; or
    (B) use calculations in accordance with §117.8110(b) of this title (relating to Emission Monitoring System Requirements for Utility Electric Generation Sources); or
  (4) use the maximum block one-hour emission rate as measured by the 30-day testing.
(f) The owner or operator of any EGF subject to a system cap shall maintain daily records indicating the NOX emissions and fuel usage from each EGF and summations of total NO X emissions and fuel usage for all EGFs under the system cap on a daily basis. Records must also be retained in accordance with §117.345 of this title (relating to Notification, Recordkeeping, and Reporting Requirements).
(g) The owner or operator of any EGF subject to a system cap shall report any exceedance of the system cap emission limit within 48 hours to the appropriate regional office. The owner or operator shall then follow up within 21 days of the exceedance with a written report to the regional office that includes an analysis of the cause for the exceedance with appropriate data to demonstrate the amount of emissions in excess of the applicable limit and the necessary corrective actions taken by the company to assure future compliance. Additionally, the owner or operator shall submit semiannual reports for the monitoring systems in accordance with §117.345 of this title.
(h) The owner or operator of any EGF subject to a system cap shall demonstrate initial compliance with the system cap in accordance with the schedule specified in §117.9020 of this title (relating to Compliance Schedule for Houston-Galveston-Brazoria Ozone Nonattainment Area Major Sources).
(i) An EGF that is permanently retired or decommissioned and rendered inoperable may be included in the system cap emission limit, provided that the permanent shutdown occurred after January 1, 2000. The system cap emission limit is calculated in accordance with subsection (b) of this section.
(j) Emission reductions from shutdowns or curtailments that have been used for netting or offset purposes under the requirements of Chapter 116 of this title (relating to Control of Air Pollution by Permits for New Construction or Modification) may not be included in the baseline for establishing the cap.
(k) For the purposes of determining compliance with the system cap emission limit, the contribution of each affected EGF that is operating during a startup, shutdown, or emissions event as defined in §101.1 of this title (relating to Definitions) must be calculated from the NO X emission rate measured by the NOX monitor, if operating properly. If the NOX monitor is not operating properly, the substitute data procedures identified in subsection (e) of this section must be used. If neither the NO X monitor nor the substitute data procedure are operating properly, the owner or operator shall use the maximum daily rate measured during the initial demonstration of compliance, unless the owner or operator provides data demonstrating to the satisfaction of the executive director and the United States Environmental Protection Agency that actual emissions were less than maximum emissions during such periods.

Source Note: The provisions of this §117.320 adopted to be effective June 14, 2007, 32 TexReg 3206