1. A. The state, local or tribal agency responsible for implementing and enforcing the SIP or TIP can in cooperation with federal agencies or third parties authorized by the agency that operate installations subject to federal oversight develop and adopt a facility-wide emission budget to be used for demonstrating conformity under Paragraph (1) of Subsection A of 20.11.4.158 NMAC. The facility-wide budget must meet the following criteria.

   (1) Be for a set time period.

   (2) Cover the pollutants or precursors of the pollutants for which the area is designated nonattainment or maintenance.

   (3) Include specific quantities allowed to be emitted on an annual or seasonal basis.

   (4) The emissions from the facility along with all other emissions in the area will not exceed the emission budget for the area.

   (5) Include specific measures to ensure compliance with the budget, such as periodic reporting requirements or compliance demonstration, when the federal agency is taking an action that would otherwise require a conformity determination.

   (6) Be submitted to EPA as a SIP revision.

   (7) The SIP revision must be approved by EPA.

2. B. The facility-wide budget developed and adopted in accordance with Subsection A of 20.11.4.161 NMAC can be revised by following the requirements in Subsection A of 20.11.4.161 NMAC.
3. C. Total direct and indirect emissions from federal actions in conjunction with all other emissions subject to general conformity from the facility that do not exceed the facility budget adopted pursuant to Subsection A of 20.11.4.161 NMAC are “presumed to conform” to the SIP and do not require a conformity analysis.
4. D. If the total direct and indirect emissions from the federal actions in conjunction with the other emissions subject to general conformity from the facility exceed the budget adopted pursuant to Subsection A of 20.11.4.161 NMAC, the action must be evaluated for conformity. A federal agency can use the compliance with the facility-wide emissions budget as part of the demonstration of conformity, i.e., the agency would have to mitigate or offset the emissions that exceed the emission budget.
5. E. If the SIP for the area includes a category for construction emissions, the negotiated budget can exempt construction emissions from further conformity analysis.

[20.11.4.161 NMAC - N, 3/14/11]