Federal Register: Rulemaking on Section 126 Petition From North Carolina To Reduce Interstate Transport of Fine Particulate Matter and Ozone; Federal Implementation Plans To Reduce Interstate Transport of Fine Particulate Matter and Ozone; Revisions to the Clean Air Interstate Rule; Revisions to the Acid Rain Program

Note: EPA no longer updates this information, but it may be useful as a reference or resource.
  [Federal Register: April 28, 2006 (Volume 71, Number 82)]
[Rules and Regulations]
[Page 25377-25426]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28ap06-16]
 
[[pp. 25377-25426]]
Rulemaking on Section 126 Petition From North Carolina To Reduce 
Interstate Transport of Fine Particulate Matter and Ozone; Federal 
Implementation Plans To Reduce Interstate Transport of Fine Particulate 
Matter and Ozone; Revisions to the Clean Air Interstate R[[Page 25377]]

[[Continued from page 25376]]

[[Page 25377]]

comply with such applicable requirements.

Sec.  52.2141  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of sulfur dioxide?

    The owner or operator of each SO₂ source located within 
the State of South Carolina and for which requirements are set forth 
under the Federal CAIR SO₂ Trading Program in part 97 of 
this chapter must comply with such applicable requirements.

Subpart RR--Tennessee

? 27. Subpart RR is amended by adding Sec. Sec.  52.2240 and 52.2241 to 
read as follows:

Sec.  52.2240  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of nitrogen oxides?

    The owner or operator of each NO_X source located within 
the State of Tennessee and for which requirements are set forth under 
the Federal CAIR NO_X Annual and Ozone Season Trading Programs in 
part 97 of this chapter must comply with such applicable requirements.

Sec.  52.2241  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of sulfur dioxide?

    The owner or operator of each SO₂ source located within 
the State of Tennessee and for which requirements are set forth under 
the Federal CAIR SO₂ Trading Program in part 97 of this 
chapter must comply with such applicable requirements.

Subpart SS--Texas

? 28. Subpart SS is amended by adding Sec. Sec.  52.2283 and 52.2284 to 
read as follows:

Sec.  52.2283  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of nitrogen oxides?

    The owner or operator of each NO_X source located within 
the State of Texas and for which requirements are set forth under the 
Federal CAIR NO_X Annual Trading Program in part 97 of this 
chapter must comply with such applicable requirements.

Sec.  52.2284  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of sulfur dioxide?

    The owner or operator of each SO₂ source located within 
the State of Texas and for which requirements are set forth under the 
Federal CAIR SO₂ Trading Program in part 97 of this chapter 
must comply with such applicable requirements.

Subpart VV--Virginia

? 29. Subpart VV is amended by adding Sec. Sec.  52.2440 and 52.2441 to 
read as follows:

Sec.  52.2440  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of nitrogen oxides?

    The owner or operator of each NO_X source located within 
the State of Virginia and for which requirements are set forth under 
the Federal CAIR NO_X Annual and Ozone Season Trading Programs in 
part 97 of this chapter must comply with such applicable requirements.

Sec.  52.2441  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of sulfur dioxide?

    The owner or operator of each SO₂ source located within 
the State of Virginia and for which requirements are set forth under 
the Federal CAIR SO₂ Trading Program in part 97 of this 
chapter must comply with such applicable requirements.

Subpart XX--West Virginia

? 30. Subpart XX is amended by adding Sec. Sec.  52.2540 and 52.2541 to 
read as follows:

Sec.  52.2540  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of nitrogen oxides?

    The owner or operator of each NO_X source located within 
the State of West Virginia and for which requirements are set forth 
under the Federal CAIR NO_X Annual and Ozone Season Trading 
Programs in part 97 of this chapter must comply with such applicable 
requirements.

Sec.  52.2541  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of sulfur dioxide?

    The owner or operator of each SO₂ source located within 
the State of West Virginia and for which requirements are set forth 
under the Federal CAIR SO₂ Trading Program in part 97 of 
this chapter must comply with such applicable requirements.

Subpart YY--Wisconsin

? 31. Subpart YY is amended by adding Sec. Sec.  52.2587 and 52.2588 to 
read as follows:

Sec.  52.2587  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of nitrogen oxides?

    The owner or operator of each NO_X source located within 
the State of Wisconsin and for which requirements are set forth under 
the Federal CAIR NO_X Annual and Ozone Season Trading Programs in 
part 97 of this chapter must comply with such applicable requirements.

Sec.  52.2588  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of sulfur dioxide?

    The owner or operator of each SO₂ source located within 
the State of Wisconsin and for which requirements are set forth under 
the Federal CAIR SO₂ Trading Program in part 97 of this 
chapter must comply with such applicable requirements.

PART 72--[AMENDED]

? 1. The authority citation for Part 72 continues to read as follows:

    Authority: 42 U.S.C. 7601 and 7651, et seq.

? 2. Section 72.2 is amended, in the definition of ``Receive or 
receipt'', by revising the words ``official correspondence log'' to 
read ``official log''.

? 3. Section 72.7 is amended as follows:
? a. By revising paragraph (f)(2); and
? b. In paragraph (f)(4)(i), by revising the words ``become an affected 
unit under the Acid Rain Program and parts 70 and 71 of this chapter'' 
to read, for purposes of applying parts 70 and 71 of this chapter, 
shall be treated as an affected unit under the Acid Rain Program''. The 
revision reads as follows:

Sec.  72.7  New units exemption.

* * * * *
    (f) * * *
    (2) For any period for which a unit is exempt under this section:
    (i) For purposes of applying parts 70 and 71 of this chapter, the 
unit shall not be treated as an affected unit under the Acid Rain 
Program and shall continue to be subject to any other applicable 
requirements under parts 70 and 71 of this chapter.
    (ii) The unit shall not be eligible to be an opt-in source under 
part 74 of chapter.
* * * * *

? 4. Section 72.8 is amended as follows:
? a. By revising paragraph (d)(4); and
? b. In paragraph (d)(6)(i) introductory text, by revising the words 
``become an affected unit under the Acid Rain Program and parts 70 and 
71 of this chapter'' to read ,`` for purposes of

[[Page 25378]]

applying parts 70 and 71 of this chapter, shall be treated as an 
affected unit under the Acid Rain Program''.
    The revision reads as follows:

Sec.  72.8  Retired units exemption.

* * * * *
    (d) * * *
    (4) For any period for which a unit is exempt under this section:
    (i) For purposes of applying parts 70 and 71 of this chapter, the 
unit shall not be treated as an affected unit under the Acid Rain 
Program and shall continue to be subject to any other applicable 
requirements under parts 70 and 71 of this chapter.
    (ii) The unit shall not be eligible to be an opt-in source under 
part 74 of chapter.
* * * * *

Sec.  72.20  [Amended]

? 5. Section 72.20 is amended, in paragraph (b), by revising the words 
``his or her actions'' to read ``his or her representations, actions''.

Sec.  72.22  [Amended]

? 6. Section 72.22 is amended, in paragraph (b), by revising the words 
``any action, representation, or failure to act'' to read ``any 
representation, action, inaction, or submission'' whenever they appear.

Sec.  72.23  [Amended]

? 7. Section 72.23 is amended as follows:
? a. In paragraphs (a) and (b), by revising the words ``submissions, 
actions, and inactions'' to read ``representations, actions, inactions, 
and submissions''; and
? b. In paragraph (c)(1), by revising the words ``a new owner'' to read 
``an owner'', by revising the words ``such new owner'' to read ``such 
owner'', by revising the words ``submissions, actions, and inactions'' 
to read ``representations, actions, inactions, and submissions'', and 
by revising the words ``the new owner'' to read ``the owner.''

Sec.  72.24  [Amended]

? 8. Section 72.24 is amended as follows:
? a. In paragraph (a)(1) by revising the words ``is submitted.'' to read 
``is submitted, including identification and nameplate capacity of each 
generator served by each such unit'';
? b. In paragraph (a)(6), by revising the words ``actions, inactions, or 
submissions'' to read ``representations, actions, inactions, or 
submissions''; and
? c. In paragraph (a)(9)(ii), by revising the words ``or ,if such 
multiple'' to read ``, except that, if such multiple''.

Sec.  72.25  [Amended]

? 9. Section 72.25 is amended, in paragraph (b), by revising the words 
``submission, action or inaction'' to read ``representation, action, 
inaction, or submission'' and revise the words ``submission, action, or 
inaction'' to read ``representation, action, inaction, or submission''.

? 10. Add a new 72.26 to read as follows:

Sec.  72.26  Delegation by designated representative and alternate 
designated representative.

    (a) A designated representative may delegate, to one or more 
natural persons, his or her authority to make an electronic submission 
(in a format prescribed by the Administrator) to the Administrator 
provided for or required under this part and parts 73 through 77 of 
this chapter.
    (b) An alternate designated representative may delegate, to one or 
more natural persons, his or her authority to make an electronic 
submission (in a format prescribed by the Administrator) to the 
Administrator provided for or required under this part and parts 73 
through 77 of this chapter.
    (c) In order to delegate authority to make an electronic submission 
to the Administrator in accordance with paragraph (a) or (b) of this 
section, the designated representative or alternate designated 
representative, as appropriate, must submit to the Administrator a 
notice of delegation, in a format prescribed by the Administrator, that 
includes the following elements:
    (1) The name, address, e-mail address, telephone number, and 
facsimile transmission number (if any) of such designated 
representative or alternate designated representative;
    (2) The name, address, e-mail address, telephone number, and 
facsimile transmission number (if any) of each such natural person 
(referred to as an ``agent'');
    (3) For each such natural person, a list of the type or types of 
electronic submissions under paragraph (a) or (b) of this section for 
which authority is delegated to him or her; and
    (4) The following certification statements by such designated 
representative or alternate designated representative, as appropriate:
    (i) ``I agree that any electronic submission to the Administrator 
that is by an agent identified in this notice of delegation and of a 
type listed for such agent in this notice of delegation and that is 
made when I am a designated representative or alternate designated 
representative, as appropriate, and before this notice of delegation is 
superseded by another notice of delegation under 40 CFR 72.26(d) shall 
be deemed to be an electronic submission by me.''
    (ii) ``Until this notice of delegation is superseded by another 
notice of delegation under 40 CFR 72.26(d), I agree to maintain an e-
mail account and to notify the Administrator immediately of any change 
in my e-mail address unless all delegation of authority by me under 40 
CFR 72.26 is terminated.''
    (d) A notice of delegation submitted under paragraph (c) of this 
section shall be effective, with regard to the designated 
representative or alternate designated representative identified in 
such notice, upon receipt of such notice by the Administrator and until 
receipt by the Administrator of a superseding notice of delegation 
submitted by such designated representative or alternate designated 
representative, as appropriate. The superseding notice of delegation 
may replace any previously identified agent, add a new agent, or 
eliminate entirely any delegation of authority.
    (e) Any electronic submission covered by the certification in 
paragraph (c)(4)(i) of this section and made in accordance with a 
notice of delegation effective under paragraph (d) of this section 
shall be deemed to be an electronic submission by the designated 
representative or alternate designated representative submitting such 
notice of delegation.

PART 73--[AMENDED]

? 1. The authority citation for part 73 continues to read as follows:

    Authority: 42 U.S.C. 7601 and 7651, et seq.

Sec.  73.31  [Amended]

? 2. Section 73.31 is amended, in paragraph (c)(1)(v), by revising the 
words ``actions, inactions, or submissions'' to read ``representations, 
actions, inactions, or submissions''.

? 3. Section 73.33 is amended as follows:
? a. In paragraph (d)(4), by revising the words ``action, representation, 
or failure to act'' to read ``representation, action, inaction, or 
submission'' and by revising the word ``an action'' to read ``a 
representation, action, inaction, or submission'';
? b. In paragraph (e), by revising the word ``actions'' to read 
``representations, actions, inactions, or submissions'';
? c. In paragraph (f), by revising the words ``any submission to'' to 
read ``any representation, action, inaction, or submission to'' and 
revise the words ``the recordation of transfers submitted

[[Page 25379]]

by'' to read ``any representation, action, inaction, or submission 
of''; and
? d. By adding a new paragraph (g) to read as follows:

Sec.  73.33  Authorized account representative.

* * * * *
    (g) Delegation by authorized account representative and alternate 
authorized account representative. (1) An authorized account 
representative may delegate, to one or more natural persons, his or her 
authority to make an electronic submission (in a format prescribed by 
the Administrator) to the Administrator provided for or required under 
this part.
    (2) An alternate authorized account representative may delegate, to 
one or more natural persons, his or her authority to make an electronic 
submission (in a format prescribed by the Administrator) to the 
Administrator provided for or required under this part.
    (3) In order to delegate authority to make an electronic submission 
to the Administrator in accordance with paragraph (g)(1) or (2) of this 
section, the authorized account representative or alternate authorized 
account representative, as appropriate, must submit to the 
Administrator a notice of delegation, in a format prescribed by the 
Administrator, that includes the following elements:
    (i) The name, address, e-mail address, telephone number, and 
facsimile transmission number (if any) of such authorized account 
representative or alternate authorized account representative;
    (ii) The name, address, e-mail address, telephone number, and, 
facsimile transmission number (if any) of each such natural person 
(referred to as an ``agent'');
    (iii) For each such natural person, a list of the type or types of 
electronic submissions under paragraph (g)(1) or (2) of this section 
for which authority is delegated to him or her;
    (iv) The following certification statements by such authorized 
account representative or alternate authorized account representative:
    (A) ``I agree that any electronic submission to the Administrator 
that is by an agent identified in this notice of delegation and of a 
type listed for such agent in this notice of delegation and that is 
made when I am a authorized account representative or alternate 
authorized representative, as appropriate, and before this notice of 
delegation is superseded by another notice of delegation under 40 CFR 
73.33(g)(4) shall be deemed to be an electronic submission by me.''
    (B) ``Until this notice of delegation is superseded by another 
notice of delegation under 40 CFR 73.33(g)(4), I agree to maintain an 
e-mail account and to notify the Administrator immediately of any 
change in my e-mail address unless all delegation of authority by me 
under 40 CFR 73.33(g) is eliminated.''
    (4) A notice of delegation submitted under paragraph (g)(3) of this 
section shall be effective, with regard to the authorized account 
representative or alternate authorized account representative 
identified in such notice, upon receipt of such notice by the 
Administrator and until receipt by the Administrator of a superseding 
notice of delegation submitted by such authorized account 
representative or alternate authorized account representative, as 
appropriate. The superseding notice of delegation may replace any 
previously identified agent, add a new agent, or eliminate entirely any 
delegation of authority.
    (5) Any electronic submission covered by the certification in 
paragraph (g)(3)(iv)(A) of this section and made in accordance with a 
notice of delegation effective under paragraph (g)(4) of this section 
shall be deemed to be an electronic submission by the designated 
representative or alternate designated representative submitting such 
notice of delegation.

PART 74--[AMENDED]

? 1. The authority citation for Part 74 continues to read as follows:

    Authority: 7601 and 7651 et seq.

Sec.  74.4  [Amended]

? 2. In Sec.  74.4, paragraph (c) is removed.

PART 78--[AMENDED]

? 1. The authority citation for part 78 continues to read as follows:

    Authority: 42 U.S.C. 7401, 7403, 7410, 7426, 7601, and 7651, et seq.

? 2. Section 78.1 is amended as follows:
? a. In paragraph (b)(8)(ii), by revising ``Sec.  97.256'' to read 
``Sec.  96.256''.
? b. By adding new paragraphs (b)(10), (b)(11), and (b)(12) to read as 
follows:

Sec.  78.1  Purpose and scope.

* * * * *
    (b) * * *
    (10) Under subparts AA through II of part 97 of this chapter,
    (i) The decision on the allocation of CAIR NO_X 
allowances under subpart EE of part 97 of this chapter.
    (ii) The decision on the deduction of CAIR NO_X 
allowances, and the adjustment of the information in a submission and 
the decision on the deduction or transfer of CAIR NO_X 
allowances based on the information as adjusted, under Sec.  97.154 of 
this chapter;
    (iii) The correction of an error in a CAIR NO_X Allowance 
Tracking System account under Sec.  97.156 of this chapter;
    (iv) The decision on the transfer of CAIR NO_X allowances 
under Sec.  97.161 of this chapter;
    (v) The finalization of control period emissions data, including 
retroactive adjustment based on audit;
    (vi) The approval or disapproval of a petition under Sec.  97.175 
of this chapter.
    (11) Under subparts AAA through III of part 97 of this chapter,
    (i) The decision on the deduction of CAIR SO₂ 
allowances, and the adjustment of the information in a submission and 
the decision on the deduction or transfer of CAIR SO₂ 
allowances based on the information as adjusted, under Sec.  97.254 of 
this chapter;
    (ii) The correction of an error in a CAIR SO₂ Allowance 
Tracking System account under Sec.  97.256 of this chapter;
    (iii) The decision on the transfer of CAIR SO₂ 
allowances under Sec.  97.261 of this chapter;
    (iv) The finalization of control period emissions data, including 
retroactive adjustment based on audit;
    (v) The approval or disapproval of a petition under Sec.  97.275 of 
this chapter.
    (12) Under subparts AAAA through IIII of part 97 of this chapter,
    (i) The decision on the allocation of CAIR NO_X Ozone 
Season allowances under subpart EEEE of part 97 of this chapter.
    (ii) The decision on the deduction of CAIR NO_X Ozone 
Season allowances, and the adjustment of the information in a 
submission and the decision on the deduction or transfer of CAIR 
NO_X Ozone Season allowances based on the information as 
adjusted, under Sec.  97.354 of this chapter;
    (iii) The correction of an error in a CAIR NO_X Ozone Season 
Allowance Tracking System account under Sec.  97.356 of this chapter;
    (iv) The decision on the transfer of CAIR NO_X Ozone 
Season allowances under Sec.  97.361;
    (v) The finalization of control period emissions data, including 
retroactive adjustment based on audit;
    (vi) The approval or disapproval of a petition under Sec.  97.375 
of this chapter.
* * * * *

? 3. Section 78.3 is amended as follows:
? a. In paragraph (b)(3)(i), by revising the words ``under paragraph 
(a)(4), (5), or (6) of this section'' to read ``under paragraph (a)(4), 
(5), (6), (7), (8), or (9) of this section'';
? b. In paragraph (d)(3), by revising the words ``account certificate of

[[Page 25380]]

representation submitted by a CAIR designated representative'' to read 
``certificate of representation submitted by a CAIR designated 
representative'' and by revising the words ``or subparts AAAA through 
IIII of part 96 of this chapter'', the words ``subparts AAAA through 
IIII of part 96 of this chapter, or under part 97 of this chapter''; 
and
? c. By adding new paragraphs (a)(7), (a)(8), (a)(9), (d)(8), (d)(9), and 
(d)(10) to read as follows:

Sec.  78.3  Petition for administrative review and request for 
evidentiary hearing.

    (a) * * *
    (7) The following persons may petition for administrative review of 
a decision of the Administrator that is made under subparts AA through 
II of part 97 of this chapter and that is appealable under Sec.  
78.1(a):
    (i) The CAIR designated representative for a unit or source, or the 
CAIR authorized account representative for any CAIR NO_X 
Allowance Tracking System account, covered by the decision; or
    (ii) Any interested person.
    (8) The following persons may petition for administrative review of 
a decision of the Administrator that is made under subparts AAA through 
III of part 97 and that is appealable under Sec.  78.1(a):
    (i) The CAIR designated representative for a unit or source, or the 
CAIR authorized account representative for any CAIR SO₂ 
Allowance Tracking System account, covered by the decision; or
    (ii) Any interested person.
    (9) The following persons may petition for administrative review of 
a decision of the Administrator that is made under subparts AAAA 
through III of part 97 and that is appealable under Sec.  78.1(a):
    (i) The CAIR designated representative for a unit or source, or the 
CAIR authorized account representative for any CAIR Ozone Season 
NO_X Allowance Tracking System account, covered by the decision; or
    (ii) Any interested person.
* * * * *
    (d) * * *
    (8) Any provision or requirement of subparts AA through II of part 
97 of this chapter, including the standard requirements under Sec.  97.106 
of this chapter and any emission monitoring or reporting requirements.
    (9) Any provision or requirement of subparts AAA through III of 
part 97 of this chapter, including the standard requirements under 
Sec.  97.206 of this chapter and any emission monitoring or reporting 
requirements.
    (10) Any provision or requirement of subparts AAAA through IIII of 
part 97 of this chapter, including the standard requirements under 
Sec.  97.306 of this chapter and any emission monitoring or reporting 
requirements.

PART 96--NO_X BUDGET TRADING PROGRAM AND CAIR NO_X AND 
SO₂ TRADING PROGRAMS FOR STATE IMPLEMENTATION PLANS

? 1. The heading of part 96 is revised to read as set forth above.
? 2. The authority citation for part 96 continues to read as follows:

    Authority: 42 U.S.C. 7401, 7403, 7410, 7601, and 7651, et seq.

? 3. Section 96.102 is amended as follows:
? a. By revising the definition of ``Allocate or allocation'';
? b. In the definition of ``Allowance transfer deadline'', by revising 
the words ``midnight of March 1, if it is a business day, or, if March 
1 is not a business day, midnight of the first business day 
thereafter'' to read ``midnight of March 1 (if it is a business day), 
or midnight of the first business day thereafter (if March 1 is not a 
business day),'';
? c. In the definition of ``Alternate CAIR designated representative'', 
by revising the words ``in accordance with'' to read ``, in accordance 
with'' and by adding at the end the words ``If the CAIR NO_X 
source is also subject to the Hg Budget Trading Program, then this 
natural person shall be the same person as the alternate Hg designated 
representative under the Hg Budget Trading Program.'';
? d. In the definition of ``CAIR authorized account representative'', by 
revising the words ``subparts BB and II'' to read ``subparts BB, FF, 
and II'';
? e. In the definition of ``CAIR designated representative'', by adding 
at the end the words ``If the CAIR NO_X source is also 
subject to the Hg Budget Trading Program, then this natural person 
shall be the same person as the Hg designated representative under the 
Hg Budget Trading Program.'';
? f. By revising the definition of ``CAIR NO_X allowance'';
? g. In the definition of ``CAIR NO_X allowance deduction or 
deduct CAIR NO_X allowances'', by adding, after the words 
``compliance account'', the words ``, e.g.,'';
? h. In the definition of ``CAIR NO_X Annual Trading Program'', 
by revising the words ``Sec.  51.123 of this chapter,'' to read ``Sec.  
51.123 of this chapter or established by the Administrator in 
accordance with subparts AA through II of part 97 of this chapter and 
Sec. Sec.  51.123(p) and 52.35 of this chapter,'';
? i. In the definition of ``CAIR NO_X emissions limitation'', 
by revising the words ``tonnage equivalent of'' to read ``tonnage 
equivalent, in NO_X emissions in a control period, of'' and 
by revising the words ``for a control period'' to read ``for the 
control period'';
? j. In the definition of ``CAIR NO_X Ozone Season source'', by 
revising the words ``includes one or more CAIR NO_X Ozone 
Season units'' to read ``is subject to the CAIR NO_X Ozone 
Season Trading Program'';
? k. In the definition of ``CAIR NO_X Ozone Season Trading 
Program'', by revising the words ``Sec.  51.123 of this chapter,'' to 
read ``Sec.  51.123 of this chapter or established by the Administrator 
in accordance with subparts AAAA through IIII of part 97 of this 
chapter and Sec. Sec.  51.123(ee) and 52.35 of this chapter,'';
? l. By removing the definition of ``CAIR NO_X Ozone Season 
unit'';
? m. In the definition of ``CAIR SO₂ source'', by revising the 
words ``includes one or more CAIR SO₂ units'' to read ``is 
subject to the CAIR SO₂ Trading Program'';
? n. In the definition of ``CAIR SO₂ Trading Program'', by 
revising the words ``Sec.  51.124 of this chapter,'' to read ``Sec.  
51.124 of this chapter or established by the Administrator in 
accordance with subparts AAA through III of part 97 of this chapter and 
Sec. Sec.  51.124(r) and 52.36 of this chapter,'';
? o. By removing the definition of ``CAIR SO₂ unit'';
? p. In paragraph (2) of the definition of ``Cogeneration unit'', by 
revising the words ``calendar year after which'' to read ``calendar 
year after the calendar year in which'';
? q. In paragraph (2) of the definition of ``Combustion turbine'', by 
revising the words ``any associated heat recovery steam generator''to 
read ``any associated duct burner, heat recovery steam generator,'';
? r. By revising the definition of ``Commence commercial operation'';
? s. By revising the definition of ``Commence operation'';
? t. In the definition of ``Control period'', by revising the words 
``January 1 of a calendar year and'' to read ``January 1 of a calendar 
year, except as provided in Sec.  96.106(c)(2), and'';
? u. By revising the definition of ``Maximum design heat input'';
? v. In the definition of ``Nameplate capacity'', by revising the words 
``other deratings) as specified'' to read ``other deratings) as of such 
installation as specified'' and by revising the words ``maximum amount 
as specified'' to read

[[Page 25381]]

``maximum amount as of such completion as specified'';
? w. In the definition of ``Oil-fired'', by revising the words ``in a 
specified year.'' to read ``in a specified year and not qualifying as 
coal-fired.'';
? x. In the definition of ``Receive or receipt'', by revising the words 
``official correspondence log'' to read ``official log''; and
? y. By adding new definitions of ``Hg Budget Trading Program'', 
``Replacement, replace, or replaced'', and ``Solid waste incineration 
unit'' to read as follows:

Sec.  96.102  Definitions.

* * * * *
    Allocate or allocation means, with regard to CAIR NO_X 
allowances, the determination by a permitting authority or the 
Administrator of the amount of such CAIR NO_X allowances to 
be initially credited to a CAIR NO_X unit, a new unit set-
aside, or other entity.
* * * * *
    CAIR NOX allowance means a limited authorization issued by a 
permitting authority or the Administrator under provisions of a State 
implementation plan that are approved under Sec.  51.123(o)(1) or (2) 
or (p) of this chapter, or under subpart EE of part 97 or Sec.  97.188 
of this chapter, to emit one ton of nitrogen oxides during a control 
period of the specified calendar year for which the authorization is 
allocated or of any calendar year thereafter under the CAIR 
NO_X Program. An authorization to emit nitrogen oxides that 
is not issued under provisions of a State implementation plan that are 
approved under Sec.  51.123(o)(1) or (2) or (p) of this chapter or 
subpart EE of part 97 or Sec.  97.188 of this chapter shall not be a 
CAIR NO_X allowance.
* * * * *
    Commence commercial operation means, with regard to a unit:
    (1) To have begun to produce steam, gas, or other heated medium 
used to generate electricity for sale or use, including test 
generation, except as provided in Sec.  96.105 and Sec.  96.184(h).
    (i) For a unit that is a CAIR NO_X unit under Sec.  
96.104 on the later of November 15, 1990 or the date the unit commences 
commercial operation as defined in paragraph (1) of this definition and 
that subsequently undergoes a physical change (other than replacement 
of the unit by a unit at the same source), such date shall remain the 
date of commencement of commercial operation of the unit, which shall 
continue to be treated as the same unit.
    (ii) For a unit that is a CAIR NO_X unit under Sec.  
96.104 on the later of November 15, 1990 or the date the unit commences 
commercial operation as defined in paragraph (1) of this definition and 
that is subsequently replaced by a unit at the same source (e.g., 
repowered), such date shall remain the replaced unit's date of 
commencement of commercial operation, and the replacement unit shall be 
treated as a separate unit with a separate date for commencement of 
commercial operation as defined in paragraph (1) or (2) of this 
definition as appropriate.
    (2) Notwithstanding paragraph (1) of this definition and except as 
provided in Sec.  96.105, for a unit that is not a CAIR NO_X 
unit under Sec.  96.104 on the later of November 15, 1990 or the date 
the unit commences commercial operation as defined in paragraph (1) of 
this definition, the unit's date for commencement of commercial 
operation shall be the date on which the unit becomes a CAIR 
NO_X unit under Sec.  96.104.
    (i) For a unit with a date for commencement of commercial operation 
as defined in paragraph (2) of this definition and that subsequently 
undergoes a physical change (other than replacement of the unit by a 
unit at the same source), such date shall remain the date of 
commencement of commercial operation of the unit, which shall continue 
to be treated as the same unit.
    (ii) For a unit with a date for commencement of commercial 
operation as defined in paragraph (2) of this definition and that is 
subsequently replaced by a unit at the same source (e.g., repowered), 
such date shall remain the replaced unit's date of commencement of 
commercial operation, and the replacement unit shall be treated as a 
separate unit with a separate date for commencement of commercial 
operation as defined in paragraph (1) or (2) of this definition as 
appropriate.
    Commence operation means:
    (1) To have begun any mechanical, chemical, or electronic process, 
including, with regard to a unit, start-up of a unit's combustion 
chamber, except as provided in Sec.  96.184(h).
    (2) For a unit that undergoes a physical change (other than 
replacement of the unit by a unit at the same source) after the date 
the unit commences operation as defined in paragraph (1) of this 
definition, such date shall remain the date of commencement of 
operation of the unit, which shall continue to be treated as the same unit.
    (3) For a unit that is replaced by a unit at the same source (e.g., 
repowered) after the date the unit commences operation as defined in 
paragraph (1) of this definition, such date shall remain the replaced 
unit's date of commencement of operation, and the replacement unit 
shall be treated as a separate unit with a separate date for 
commencement of operation as defined in paragraph (1), (2), or (3) of 
this definition as appropriate, except as provided in Sec.  96.184(h).
* * * * *
    Hg Budget Trading Program means a multi-state Hg air pollution 
control and emission reduction program approved and administered by the 
Administrator in accordance subpart HHHH of part 60 of this chapter and 
Sec.  60.24(h)(6), or established by the Administrator under section 
111 of the Clean Air Act, as a means of reducing national Hg emissions.
* * * * *
    Maximum design heat input means the maximum amount of fuel per hour 
(in Btu/hr) that a unit is capable of combusting on a steady state 
basis as of the initial installation of the unit as specified by the 
manufacturer of the unit.
* * * * *
    Replacement, replace, or replaced means, with regard to a unit, the 
demolishing of a unit, or the permanent shutdown and permanent 
disabling of a unit, and the construction of another unit (the 
replacement unit) to be used instead of the demolished or shutdown unit 
(the replaced unit).
* * * * *
    Solid waste incineration unit means a stationary, fossil-fuel-fired 
boiler or stationary, fossil-fuel-fired combustion turbine that is a 
``solid waste incineration unit'' as defined in section 129(g)(1) of 
the Clean Air Act.
* * * * *

? 4. Section 96.103 is revised to read as follows:

Sec.  96.103  Measurements, abbreviations, and acroynyms.

    Measurements, abbreviations, and acronyms used in this subpart and 
subparts BB through II are defined as follows:
Btu--British thermal unit.
CO₂--carbon dioxide
H₂O--water
Hg--mercury
hr--hour
kW--kilowatt electrical
kWh--kilowatt hour
lb--pound
mmBtu--million Btu
MWe--megawatt electrical
MWh--megawatt hour
NO_X--nitrogen oxides
O2--oxygen
ppm--parts per million
scfh--standard cubic feet per hour
SO₂--sulfur dioxide
yr--year

[[Page 25382]]

? 5. Section 96.104 is revised to read as follows:

Sec.  96.104  Applicability.

    (a) Except as provided in paragraph (b) of this section:
    (1) The following units in a State shall be CAIR NO_X 
units, and any source that includes one or more such units shall be a 
CAIR NO_X source, subject to the requirements of this subpart 
and subparts BB through HH of this part: any stationary, fossil-fuel-
fired boiler or stationary, fossil-fuel-fired combustion turbine 
serving at any time, since the later of November 15, 1990 or the start-
up of the unit's combustion chamber, a generator with nameplate 
capacity of more than 25 MWe producing electricity for sale.
    (2) If a stationary boiler or stationary combustion turbine that, 
under paragraph (a)(1) of this section, is not a CAIR NO_X 
unit begins to combust fossil fuel or to serve a generator with 
nameplate capacity of more than 25 MWe producing electricity for sale, 
the unit shall become a CAIR NO_X unit as provided in 
paragraph (a)(1) of this section on the first date on which it both 
combusts fossil fuel and serves such generator.
    (b) The units in a State that meet the requirements set forth in 
paragraph (b)(1)(i), (b)(2)(i), or (b)(2)(ii) of this section shall not 
be CAIR NO_X units:
    (1)(i) Any unit that is a CAIR NO_X unit under paragraph 
(a)(1) or (2) of this section:
    (A) Qualifying as a cogeneration unit during the 12-month period 
starting on the date the unit first produces electricity and continuing 
to qualify as a cogeneration unit; and
    (B) Not serving at any time, since the later of November 15, 1990 
or the start-up of the unit's combustion chamber, a generator with 
nameplate capacity of more than 25 MWe supplying in any calendar year 
more than one-third of the unit's potential electric output capacity or 
219,000 MWh, whichever is greater, to any utility power distribution 
system for sale.
    (ii) If a unit qualifies as a cogeneration unit during the 12-month 
period starting on the date the unit first produces electricity and 
meets the requirements of paragraphs (b)(1)(i) of this section for at 
least one calendar year, but subsequently no longer meets all such 
requirements, the unit shall become a CAIR NO_X unit starting 
on the earlier of January 1 after the first calendar year during which 
the unit first no longer qualifies as a cogeneration unit or January 1 
after the first calendar year during which the unit no longer meets the 
requirements of paragraph (b)(1)(i)(B) of this section.
    (2)(i) Any unit that is a CAIR NO_X unit under paragraph 
(a)(1) or (2) of this section commencing operation before January 1, 1985:
    (A) Qualifying as a solid waste incineration unit; and
    (B) With an average annual fuel consumption of non-fossil fuel for 
1985-1987 exceeding 80 percent (on a Btu basis) and an average annual 
fuel consumption of non-fossil fuel for any 3 consecutive calendar 
years after 1990 exceeding 80 percent (on a Btu basis).
    (ii) Any unit that is a CAIR NO_X unit under paragraph 
(a)(1) or (2) of this section commencing operation on or after January 
1, 1985:
    (A) Qualifying as a solid waste incineration unit; and
    (B) With an average annual fuel consumption of non-fossil fuel for 
the first 3 calendar years of operation exceeding 80 percent (on a Btu 
basis) and an average annual fuel consumption of non-fossil fuel for 
any 3 consecutive calendar years after 1990 exceeding 80 percent (on a 
Btu basis).
    (iii) If a unit qualifies as a solid waste incineration unit and 
meets the requirements of paragraph (b)(2)(i) or (ii) of this section 
for at least 3 consecutive calendar years, but subsequently no longer 
meets all such requirements, the unit shall become a CAIR 
NO_X unit starting on the earlier of January 1 after the 
first calendar year during which the unit first no longer qualifies as 
a solid waste incineration unit or January 1 after the first 3 
consecutive calendar years after 1990 for which the unit has an average 
annual fuel consumption of fossil fuel of 20 percent or more.

Sec.  96.105  [Amended]

? 6. Section 96.105 is amended as follows:
? a. In paragraph (a)(1), by revising the words ``Sec.  96.106(c)(4) 
through (8), Sec.  96.107, and subparts EE through GG of this part'' to 
read ``Sec.  96.106(c)(4) through (7), Sec.  96.107, Sec.  96.108, and 
(subparts BB and EE through GG'';
? b. In paragraph (b)(3), by revising the words ``shall retain at the 
source'' to read ``shall retain, at the source''; and
? c. In paragraph (b)(7), by revising the words ``commences operation and 
commercial operation'' to read ``commences commercial operation''.

Sec.  96.106  [Amended]

? 7. Section 96.106 is amended as follows:
? a. In paragraph (a)(1)(i), by revising the words ``in Sec.  96.121(a) 
and (b)'' to read ``in Sec.  96.121'';
? b. In paragraph (c)(2), by revising the words ``under paragraph (c)(1) 
of this section'' to read ``under paragraph (c)(1) of this section for 
the control period'' and by revising the words ``under Sec.  
96.170(b)(1), (2), or (5)'' to read ``under Sec.  96.170(b)(1), (2), or 
(5) and for each control period thereafter'';
? c. In paragraph (c)(4), by revising the words ``subpart EE'' to read 
``subparts FF, GG, and II'';
? d. In paragraph (c)(7), by revising the words ``under subpart FF, GG, 
or II'' to read ``under subpart EE, FF, GG, or II'', by revising the 
words ``from a CAIR NO_X unit's compliance account'' to read 
``from a CAIR NO_X source's compliance account'', and by 
removing the words ``that includes the CAIR NO_X unit'';
? e. In paragraph (d)(1), by removing the paragraph designation ``(1)'' 
and by redesignating paragraph (i) as paragraph (d)(1); and
? f. By removing paragraph (d)(2) and by redesignating paragraph (ii) as 
paragraph (d)(2).

Sec.  96.111  [Amended]

? 8. Section 96.111 is amended, in paragraph (c), by revising the words 
``Sec.  96.151 and 96.182'' to read ``96.115, 96.151, and 96.182''.

Sec.  96.112  [Amended]

? 9. Section 96.112 is amended, in paragraph (c)(1), by revising the 
words ``a new owner'' to read ``an owner'', by revising the words 
``such new owner'' to read ``such owner'', and by revising the words 
``the new owner'' to read ``the owner''.

Sec.  96.113  [Amended]

? 10. Section 96.113 is amended as follows:
? a. In paragraph (a)(1), by revising the words ``is submitted'' to read 
``is submitted, including identification and nameplate capacity of each 
generator served by each such unit''; and
? b. In paragraph (a)(4)(iv), by revising the words ``where a customer'' 
to read ``where a utility or industrial customer''.
? 11. Add a new Sec.  96.115 to read as follows:

Sec.  96.115  Delegation by CAIR designated representative and 
alternate CAIR designated representative.

    (a) A CAIR designated representative may delegate, to one or more 
natural persons, his or her authority to make an electronic submission 
to the Administrator provided for or required under this part.
    (b) An alternate CAIR designated representative may delegate, to 
one or more natural persons, his or her authority to make an electronic

[[Page 25383]]

submission to the Administrator provided for or required under this part.
    (c) In order to delegate authority to make an electronic submission 
to the Administrator in accordance with paragraph (a) or (b) of this 
section, the CAIR designated representative or alternate CAIR 
designated representative, as appropriate, must submit to the 
Administrator a notice of delegation, in a format prescribed by the 
Administrator that includes the following elements:
    (1) The name, address, e-mail address, telephone number, and 
facsimile transmission number (if any) of such CAIR designated 
representative or alternate CAIR designated representative;
    (2) The name, address, e-mail address, telephone number, and 
facsimile transmission number (if any) of each such natural person 
(referred to as an ``agent'');
    (3) For each such natural person, a list of the type or types of 
electronic submissions under paragraph (a) or (b) of this section for 
which authority is delegated to him or her; and
    (4) The following certification statements by such CAIR designated 
representative or alternate CAIR designated representative:
    (i) ``I agree that any electronic submission to the Administrator 
that is by an agent identified in this notice of delegation and of a 
type listed for such agent in this notice of delegation and that is 
made when I am a CAIR designated representative or alternate CAIR 
designated representative, as appropriate, and before this notice of 
delegation is superseded by another notice of delegation under 40 CFR 
96.115(d) shall be deemed to be an electronic submission by me.''
    (ii) ``Until this notice of delegation is superseded by another 
notice of delegation under 40 CFR 96.115(d), I agree to maintain an e-
mail account and to notify the Administrator immediately of any change 
in my e-mail address unless all delegation of authority by me under 40 
CFR 96.115 is terminated.''
    (d) A notice of delegation submitted under paragraph (c) of this 
section shall be effective, with regard to the CAIR designated 
representative or alternate CAIR designated representative identified 
in such notice, upon receipt of such notice by the Administrator and 
until receipt by the Administrator of a superseding notice of 
delegation submitted by such CAIR designated representative or 
alternate CAIR designated representative, as appropriate. The 
superseding notice of delegation may replace any previously identified 
agent, add a new agent, or eliminate entirely any delegation of authority.
    (e) Any electronic submission covered by the certification in 
paragraph (c)(4)(i) of this section and made in accordance with a 
notice of delegation effective under paragraph (d) of this section 
shall be deemed to be an electronic submission by the CAIR designated 
representative or alternate CAIR designated representative submitting 
such notice of delegation.

Sec.  96.120  [Amended]

? 12. Section 96.120 is amended, in paragraph (a), by revising the words 
``otherwise by this subpart and'' to read ``otherwise by Sec.  96.105, 
this subpart, and''.

Sec.  96.121  [Amended]

? 13. Section 96.121 is amended as follows:
? a. In paragraph (a), by revising the words ``commences operation'' to 
read ``commences commercial operation, except as provided in Sec.  
96.183(a)''; and
? b. In paragraph (b), by revising the words ``permit renewal'' to read 
``permit renewal, except as provided in Sec.  96.183(b)''.

Sec.  96.123  [Amended]

? 14. Section 96.123 is amended, in paragraph (b), by revising the words 
``subpart FF, GG, or II'' to read ``subpart EE, FF, GG, or II''.

Sec.  96.141  [Amended]

? 15. Section 96.141 is amended as follows:
? a. In paragraph (b)(1), removing the paragraph designation ``(1)'';
? b. By removing paragraph (b)(2);
? c. In paragraph (c)(1), removing the paragraph designation ``(1)''; and
? d. By removing paragraph (c)(2).

? 16. Section 96.142 is amended as follows:
? a. In paragraph (a)(2)(ii)(C), by revising the words ``3,414 Btu/kWh'' 
to read ``3,413 Btu/kWh'';
? b. By revising paragraph (c) introductory text;
? c. In paragraph (c)(1), by revising the words ``2009 through 2013'' to 
read ``2009 through 2014'' and by revising the words ``in 2014'' to 
read ``in 2015'';
? d. In paragraph (c)(2), by revising the words ``The CAIR NO_X 
allowance allocation request must be submitted on or before July 1 of 
the first control period for which CAIR NO_X allowances are 
requested'' to read ``A separate CAIR NO_X allowance 
allocation request for each control period for which CAIR 
NO_X allowances are sought must be submitted on or before May 
1 of such control period''; and
? e. In paragraph (c)(4)(ii), by revising the words ``On or after July 
1'' to read ``On or after May 1''; and revising to read as follows:

Sec.  96.142  CAIR NO_X allowance allocations.

* * * * *
    (c) For each control period in 2009 and thereafter, the permitting 
authority will allocate CAIR NO_X allowances to CAIR 
NO_X units in a State that are not allocated CAIR 
NO_X allowances under paragraph (b) of this section because 
the units do not yet have a baseline heat input under paragraph (a) of 
this section or because the units have a baseline heat input but all 
CAIR NO_X allowances available under paragraph (b) of this 
section for the control period are already allocated, in accordance 
with the following procedures:
* * * * *

Sec.  96.143  [Amended]

? 17. Section 96.143 is amended as follows:
? a. In paragraphs (b)(2), (c)(1), and (d), by revising the words ``July 
1'' to read ``May 1'';
? b. In paragraph (d)(3), by revising the words `` `Unit's allocation' is 
the number of CAIR NO_X allowances'' to read `` `Unit's 
allocation' is the amount of CAIR NO_X allowances'';
? c. In paragraph (d)(4), by revising the words ``paragraph (d)(3) or 
(4)'' to read ``paragraph (d)(2) or (3)''; and
? d. In paragraph (d)(5), by revising the words ``paragraph (d)(5)'' to 
read ``paragraph (d)(4)''.

? 18. Section 96.151 is amended as follows:
? a. In paragraph (b)(2) introductory text, by revising the word 
``representative'' to read ``representative or alternate CAIR 
authorized account representative'';
? b. In paragraph (b)(3)(iii)(A), by revising the words ``a new person'' 
to read ``a person'', by revising the words ``such new person'' to read 
``such person'', and by revising the words ``the new person'' to read 
``the person'';
? c. In paragraph (b)(3)(iii)(B), by revising the words ``addition of 
persons'' to read ``addition of a new person'';
? d. In paragraph (b)(4) introductory text, by revising the word 
``representative'' to read ``representative or alternate CAIR 
authorized account representative'';
? e. In paragraphs (b)(4)(ii) and (iii), by revising the words 
``alternative CAIR'' to read ``alternate CAIR'' whenever they appear; 
and
? f. By adding a new paragraph (b)(5) to read as follows:

[[Page 25384]]

Sec.  96.151  Establishment of accounts.

* * * * *
    (b) * * *
    (5) Delegation by CAIR authorized account representative and 
alternate CAIR authorized account representative. (i) A CAIR authorized 
account representative may delegate, to one or more natural persons, 
his or her authority to make an electronic submission to the Administrator 
provided for or required under subparts FF and GG of this part.
    (ii) An alternate CAIR authorized account representative may 
delegate, to one or more natural persons, his or her authority to make 
an electronic submission to the Administrator provided for or required 
under subparts FF and GG of this part.
    (iii) In order to delegate authority to make an electronic 
submission to the Administrator in accordance with paragraph (b)(5)(i) 
or (ii) of this section, the CAIR authorized account representative or 
alternate CAIR authorized account representative, as appropriate, must 
submit to the Administrator a notice of delegation, in a format 
prescribed by the Administrator, that includes the following elements:
    (A) The name, address, e-mail address, telephone number, and 
facsimile transmission number (if any) of such CAIR authorized account 
representative or alternate CAIR authorized account representative;
    (B) The name, address, e-mail address, telephone number, and, 
facsimile transmission number (if any) of each such natural person 
(referred to as an ``agent'');
    (C) For each such natural person, a list of the type or types of 
electronic submissions under paragraph (b)(5)(i) or (ii) of this 
section for which authority is delegated to him or her;
    (D) The following certification statement by such CAIR authorized 
account representative or alternate CAIR authorized account 
representative: ``I agree that any electronic submission to the 
Administrator that is by an agent identified in this notice of 
delegation and of a type listed for such agent in this notice of 
delegation and that is made when I am a CAIR authorized account 
representative or alternate CAIR authorized representative, as 
appropriate, and before this notice of delegation is superseded by 
another notice of delegation under 40 CFR 96.151(b)(5)(iv) shall be 
deemed to be an electronic submission by me.''; and
    (E) The following certification statement by such CAIR authorized 
account representative or alternate CAIR authorized account 
representative: ``Until this notice of delegation is superseded by 
another notice of delegation under 40 CFR 96.151 (b)(5)(iv), I agree to 
maintain an e-mail account and to notify the Administrator immediately 
of any change in my e-mail address unless all delegation of authority 
by me under 40 CFR 96.151 (b)(5) is terminated.''
    (iv) A notice of delegation submitted under paragraph (b)(5)(iii) 
of this section shall be effective, with regard to the CAIR authorized 
account representative or alternate CAIR authorized account 
representative identified in such notice, upon receipt of such notice 
by the Administrator and until receipt by the Administrator of a 
superseding notice of delegation submitted by such CAIR authorized 
account representative or alternate CAIR authorized account 
representative, as appropriate. The superseding notice of delegation 
may replace any previously identified agent, add a new agent, or 
eliminate entirely any delegation of authority.
    (v) Any electronic submission covered by the certification in 
paragraph (b)(5)(iii)(D) of this section and made in accordance with a 
notice of delegation effective under paragraph (b)(5)(iv) of this 
section shall be deemed to be an electronic submission by the CAIR 
designated representative or alternate CAIR designated representative 
submitting such notice of delegation.
* * * * *

? 19. Section 96.153 is amended as follows:
? a. In paragraph (a), by revising the words ``By December 1, 2006,'' to 
read ``By September 30, 2007,'' and revising the words ``at a source'' 
to read ``at the source'';
? b. In paragraphs (b) and (d), by removing the words ``or as determined 
by the Administrator''; and
? c. By revising paragraph (c) to read as follows:

Sec.  96.153  Recordation of CAIR NO_X allowance allocations.

* * * * *
    (c) By December 1, 2009 and December 1 of each year thereafter, the 
Administrator will record in the CAIR NO_X source's 
compliance account the CAIR NO_X allowances allocated for the 
CAIR NO_X units at the source, as submitted by the permitting 
authority in accordance with Sec.  96.141(b), for the control period in 
the sixth year after the year of the applicable deadline for 
recordation under this paragraph.
* * * * *

Sec.  96.154  [Amended]

? 20. Section 96.154 is amended as follows:
? a. In paragraph (a)(1), by revising the words ``prior year;'' to read 
``prior year; and'';
? b. In paragraph (a)(2), revising the words ``Sec.  96.160 by the 
allowance transfer deadline for the control period; and'' to read 
``Sec. Sec.  96.160 and 96.161 by the allowance transfer deadline for 
the control period.'';
? c. By removing paragraph (a)(3);
? d. In paragraph (c)(2)(ii), by revising the words ``to any unit'' to 
read ``to any entity'';
? e. In paragraph (e), by revising the words ``under paragraph (b) or (d) 
of this section'' to read ``under paragraphs (b) and (d) of this 
section and subpart II'';
? f. In paragraph (f)(2), by revising the words ``of this section.'' to 
read ``of this section, and record such deductions and transfers.''

Sec.  96.155  [Amended]

? 21. Section 96.155 is amended, in paragraph (b), by revising the words 
``Sec.  96.156, or subpart GG'' to read ``Sec.  96.156, or subpart GG 
or II''.

Sec.  96.157  [Amended]

? 22. Section 96.157 is amended, in paragraphs (a) and (b), by revising 
the words ``Sec.  96.160'' to read ``Sec. Sec.  96.160 and 96.161''.

? 23. Section 96.170 is amended as follows:
? a. In paragraph (b) introductory text, by revising the words ``The 
owner'' to read ``Except as provided in paragraph (e) of this section, 
the owner'';
? b. In paragraph (b)(5), by revising the words ``paragraphs (b)(1), (2), 
and (4) of this section and solely for purposes of Sec.  96.106(c)(2), 
for the owner'' to read ``paragraphs (b)(1) and (2) of this section, 
for the owner'';
? c. In paragraph (c)(1), by removing the paragraph designation ``(1)'' 
and by revising the words ``Except as provided in paragraph (c)(2) of 
this section, the owner'' to read ``The owner'';
? d. By removing paragraph (c)(2);
? e. In paragraph (d)(3), by revising the words ``the atmosphere'' to 
read ``the atmosphere or heat input''; and
? f. By adding a new paragraph (e) to read as follows:

Sec.  96.170  General Requirements.

* * * * *
    (e) Long-term cold storage. The owner or operator of a CAIR 
NO_X unit is subject to the applicable provisions of part 75 
of this chapter concerning units in long-term cold storage.

[[Page 25385]]

Sec.  96.171  [Amended]

? 24. Section 96.171 is amended, in paragraph (c), by revising the words 
``Sec.  75.12, Sec.  75.17, or subpart H of part 75'' to read ``Sec.  
75.12 or Sec.  75.17''.

Sec.  96.173  [Amended]

? 25. Section 96.173 is amended by removing the words ``, except that if 
the unit is not subject to an Acid Rain emissions limitation, the 
notification is only required to be sent to the permitting authority''.

? 26. Section 96.174 is amended as follows:
? a. In paragraph (d)(1)(i), by revising the words ``2008; or'' to read 
``2008;'';
? b. In paragraph (d)(1)(ii), by revising the words ``2008.'' to read 
``2008;'';
? c. By adding new paragraphs (d)(1)(iii) and (iv); and
? d. In paragraph (d)(3), by revising the words ``or CAIR SO₂ 
Trading Program,'' to read ``, CAIR SO₂ Trading Program, or 
Hg Budget Trading Program,'' and by revising the words ``subparts F 
through H'' to read ``subparts F through I'' and revising to read as 
follows:

Sec.  96.174  Recordkeeping and reporting.

* * * * *
    (d) * * *
    (1) * * *
    (iii) Notwithstanding paragraphs (d)(1)(i) and (ii) of this 
section, for a unit for which a CAIR opt-in permit application is 
submitted and not withdrawn and a CAIR opt-in permit is not yet issued 
or denied under subpart II of this part, the calendar quarter 
corresponding to the date specified in Sec.  96.184(b); and
    (iv) Notwithstanding paragraphs (d)(1)(i) and (ii) of this section, 
for a CAIR NO_X opt-in unit under subpart II of this part, 
the calendar quarter corresponding to the date on which the CAIR 
NO_X opt-in unit enters the CAIR NO_X Annual 
Trading Program as provided in Sec.  96.184(g).
* * * * *

Sec.  96.176  [Removed]

? 27. Section 96.176 is removed.

? 28. Section 96.183 is amended as follows:
? a. By revising paragraph (a)(5); and
? b. In paragraph (b)(2), by revising the words ``CAIR opt-in unit``to 
read ''CAIR NO_X opt-in unit'' and revising to read as follows:

Sec.  96.183  Applying for CAIR opt-in permit.

    (a)* * *
    (5) A statement, in a format specified by the permitting authority, 
whether the CAIR designated representative requests that the unit be 
allocated CAIR NO_X allowances under Sec.  96.188(b) or Sec.  
96.188(c) (subject to the conditions in Sec. Sec.  96.184(h) and 
96.186(g)). If allocation under Sec.  96.188(c) is requested, this 
statement shall include a statement that the owners and operators of 
the unit intend to repower the unit before January 1, 2015 and that 
they will provide, upon request, documentation demonstrating such intent.
* * * * *

Sec.  96.184  [Amended]

? 29. Section 96.184 is amended as follows:
? a. In paragraph (c)(2), by revising the words ``for the control period 
under paragraph (b)(1)(ii) of this section and for the control periods 
under paragraph (b)(2) of this section``to read''for the control 
periods under paragraphs (b)(1)(ii) and (2) of this section'';
? b. In paragraph (d)(2), by revising the words ``for the control period 
under paragraph (b)(1)(ii) of this section and the control periods 
under paragraph (b)(2) of this section``to read''for the control 
periods under paragraphs (b)(1)(ii) and (2) of this section'';
? c. In paragraph (d)(3), by revising the words ``for such control 
period'' with words''for such control periods'';
? d. In paragraph (f), by revising the words ``CAIR NO_X opt-in 
permit'' to read ``CAIR opt-in permit''; and
? e. In paragraph (h)(2), by revising the words ``a CAIR opt-in unit'' to 
read ``a CAIR NO_X opt-in unit''.

? 30. Section 96.185 is amended as follows:
? a. In paragraph (a)(5), by revising the words ``under Sec.  
96.188(c)``to read''Sec.  96.188(b) or Sec.  96.188(c)''; and
? b. By adding a new paragraph (c) to read as follows:

Sec.  96.185  CAIR opt-in permit contents.

* * * * *
    (c) The CAIR opt-in permit shall be included, in a format specified 
by the permitting authority, in the CAIR permit for the source where 
the CAIR NO_X opt-in unit is located and in a title V 
operating permit or other federally enforceable permit for the source.

Sec.  96.186  [Amended]

? 31. Section 96.186 is amended as follows:
? a. In paragraph (a), by revising the words ``CAIR opt-in unit'' to read 
``CAIR NO_X opt-in unit''; and
? b. In paragraph (b)(2), by revising the words ``equal in number to'' to 
read ``equal in amount to''.

? 32. Section 96.187 is amended as follows:
? a. In paragraph (b)(1), by revising the words ``under Sec.  96.123'' to 
read ``under Sec.  96.123, and remove the CAIR opt-in permit provisions,'';
? b. In paragraph (b)(2)(i), by revising the words ``equal in number to'' 
to read ``equal in amount to'';
? c. By revising paragraph (b)(3)(i);
? d. In paragraph (b)(3)(ii), by revising the words ``Notwithstanding 
paragraph (b)(3)(i) of this section, if'' to read ``If'', by revising 
the words ``January 1'' to read ``December 31,'' and by revising the 
words ``number of CAIR NO_X allowances'' to read ``amount of 
CAIR NO_X allowances''; and
? e. In paragraph (b)(3)(ii)(A), by revising the words ``number of CAIR 
NO_X allowances'' to read ``amount of CAIR NO_X 
allowances'' and revising to read as follows:

Sec.  96.187  Change in regulatory status.

* * * * *
    (b) * * *
    (3)(i) For every control period after the date on which the CAIR 
NO_X opt-in unit becomes a CAIR NO_X unit under 
Sec.  96.104, the CAIR NO_X opt-in unit will be allocated 
CAIR NO_X allowances under Sec.  96.142.
* * * * *

Sec.  96.188  CAIR NO_X allowance allocations to CAIR 
NO_X opt-in units.

? 33. Section 96.188 is amended as follows:
? a. By revising the heading of the section as set forth above;
? b. In paragraph (a)(2), by revising the words ``of the control period 
in which a CAIR opt-in unit'' to read ``of the control period after the 
control period in which a CAIR NO_X opt-in unit'';
? c. In paragraph (c), by revising the words ``issues a CAIR opt-in 
permit'' to read ``issues a CAIR opt-in permit (based on a 
demonstration of the intent to repower stated under Sec.  
96.183(a)(5))''; and
? d. In paragraph (d)(2), by revising the words ``CAIR opt-in unit'' to 
read ``CAIR NO_X opt-in unit'' and revising the words ``CAIR 
opt-in unit''.

? 34. Section 96.202 is amended as follows:
? a. By revising the definition of ``Allocate or allocation'';
? b. In the definition of ``Allowance transfer deadline'', by revising 
the words ``midnight of March 1, if it is a business day, or, if March 
1 is not a business day, midnight of the first business day 
thereafter'' to read ``midnight of March 1 (if it is a business day), 
or midnight of the first business day thereafter (if March 1 is not a 
business day),'';
? c. In the definition of ``Alternate CAIR designated representative'', 
by adding at the end the words ``If the CAIR SO₂

[[Page 25386]]

source is also subject to the Hg Budget Trading Program, then this 
natural person shall be the same person as the alternate Hg designated 
representative under the Hg Budget Trading Program.'';
? d. In the definition of ``CAIR authorized account representative'', by 
revising the words ``subparts BBB and III'' to read ``subparts BBB, 
FFF, and III'';
? e. In the definition of ``CAIR designated representative'', by adding 
at the end the words ``If the CAIR SO₂ source is also 
subject to the Hg Budget Trading Program, then this natural person 
shall be the same person as the Hg designated representative under the 
Hg Budget Trading Program.'';
? f. In the definition of ``CAIR NO_X Annual Trading Program'', 
by revising the words ``Sec.  51.123 of this chapter,'' to read ``Sec.  
51.123 of this chapter or established by the Administrator in 
accordance with subparts AA through II of part 97 of this chapter and 
Sec. Sec.  51.123(p) and 52.35 of this chapter,'';
? g. In the definition of ``CAIR NO_X Ozone Season source'', by 
revising the words ``includes one or more CAIR NO_X Ozone 
Season unit'' to read ``is subject to the CAIR NO_X Ozone 
Season Trading Program'';
? h. In the definition of ``CAIR NO_X Ozone Season Trading 
Program'', by revising the words ``Sec.  51.123 of this chapter,'' to 
read ``Sec.  51.123 of this chapter or established by the Administrator 
in accordance with subparts AAAA through IIII of part 97 of this 
chapter and Sec. Sec.  51.123(ee) and 52.35 of this chapter,'';
? i. By removing the definition of ``CAIR NO_X Ozone Season 
unit'';
? j. In the definition of ``CAIR NO_X source'', by revising the 
words ``includes one or more CAIR NO_X units'' to read ``is 
subject to the CAIR NO_X Annual Trading Program'';
? k. By removing the definition of ``CAIR NO_X unit'';
? l. In the definition of ``CAIR SO₂ allowance'', by revising 
in the introductory text the words ``under Sec.  96.288,'' to read 
``under provisions of a State implementation plan that are approved 
under Sec.  51.124(o)(1) or (2) or (r) of this chapter or Sec.  97.288 
of this chapter,'', by designating the last sentence of the definition 
as paragraph (4), and by revising in paragraph (4) the words ``(Program 
or under the provisions of a State implementation plan that is approved 
under Sec.  51.124(o)(1) or (2) of this chapter'' to read ``(Program, 
provisions of a State implementation plan that are approved under Sec.  
51.124(o)(1) or (2) or (r) of this chapter, or Sec.  97.288 of this 
chapter'';
? m. In the definition of ``CAIR SO₂ allowance deduction or 
deduct CAIR SO₂ allowances'', by adding, after the words 
``compliance account'', the words ``, e.g.,'';
? n. In the definition of ``CAIR SO₂ emissions limitation'', 
by revising the words ``tonnage equivalent of'' to read ``tonnage 
equivalent, in SO₂ emissions in a control period, of'' and 
by revising the words ``for a control period'' to read ``for the 
control period''
? o. In the definition of ``CAIR SO₂ Trading Program'', by 
revising the words ``Sec.  51.124 of this chapter,'' to read ``Sec.  
51.124 of this chapter or established by the Administrator in 
accordance with subparts AAA through III of part 97 of this chapter and 
Sec. Sec.  51.124(r) and 52.36 of this chapter,'';
? p. In paragraph (2) of the definition of ``Cogeneration unit'', by 
revising the words ``calendar year after which'' to read ``calendar 
year after the calendar year in which'';
? q. In the definition of ``Combustion turbine'', by revising the words 
``any associated heat recovery steam generator'' to read ``any 
associated duct burner, heat recovery steam generator,'';
? r. By revising the definition of ``Commence commercial operation'';
? s. By revising the definition of ``Commence operation'';
? t. In the definition of ``Control period'', by revising the words 
``January 1 of a calendar year and'' to read ``January 1 of a calendar 
year, except as provided in Sec.  96.206(c)(2), and'';
? u. By revising the definition of ``Maximum design heat input'';
? v. In the definition of ``Nameplate capacity'', by revising the words 
``other deratings) as specified'' to read ``other deratings) as of such 
installation as specified'' and by revising the words ``maximum amount 
as specified'' to read ``maximum amount as of such completion as 
specified'';
? w. In the definition of ``Receive or receipt'', by revising the words 
``official correspondence log'' to read ``official log'';
? x. In the definition of ``Useful thermal energy'', by revising in 
paragraph (2) the word ``heat'' with the word ``heating''; and
? y. By adding new definitions of ``Hg Budget Trading Program'', 
``Replacement, replace, or replaced'', and ``Solid waste incineration 
unit'' to read as follows:

Sec.  96.202  Definitions.

* * * * *
    Allocate or allocation means, with regard to CAIR SO₂ 
allowances issued under the Acid Rain Program, the determination by the 
Administrator of the amount of such CAIR SO₂ allowances to 
be initially credited to a CAIR SO₂ unit or other entity 
and, with regard to CAIR SO₂ allowances issued under 
provisions of a State implementation plan that are approved under Sec.  
51.124(o)(1) or (2) or (r) of this chapter or Sec.  97.288 of this 
chapter, the determination by a permitting authority of the amount of 
such CAIR SO₂ allowances to be initially credited to a CAIR 
SO₂ unit or other entity.
* * * * *
    Commence commercial operation means, with regard to a unit:
    (1) To have begun to produce steam, gas, or other heated medium 
used to generate electricity for sale or use, including test 
generation, except as provided in Sec.  96.205 and Sec.  96.284(h).
    (i) For a unit that is a CAIR SO₂ unit under Sec.  
96.204 on the later of November 15, 1990 or the date the unit commences 
commercial operation as defined in paragraph (1) of this definition and 
that subsequently undergoes a physical change (other than replacement 
of the unit by a unit at the same source), such date shall remain the 
date of commencement of commercial operation of the unit, which shall 
continue to be treated as the same unit.
    (ii) For a unit that is a CAIR SO₂ unit under Sec.  
96.204 on the later of November 15, 1990 or the date the unit commences 
commercial operation as defined in paragraph (1) of this definition and 
that is subsequently replaced by a unit at the same source (e.g., 
repowered), such date shall remain the replaced unit's date of 
commencement of commercial operation, and the replacement unit shall be 
treated as a separate unit with a separate date for commencement of 
commercial operation as defined in paragraph (1) or (2) of this 
definition as appropriate.
    (2) Notwithstanding paragraph (1) of this definition and except as 
provided in Sec.  96.205, for a unit that is not a CAIR SO₂ 
unit under Sec.  96.204 on the later of November 15, 1990 or the date 
the unit commences commercial operation as defined in paragraph (1) of 
this definition, the unit's date for commencement of commercial 
operation shall be the date on which the unit becomes a CAIR 
SO₂ unit under Sec.  96.204.
    (i) For a unit with a date for commencement of commercial operation 
as defined in paragraph (2) of this definition and that subsequently 
undergoes a physical change (other than replacement of the unit by a 
unit at the same source), such date shall remain the date of 
commencement of commercial operation of the unit, which shall continue 
to be treated as the same unit.

[[Page 25387]]

    (ii) For a unit with a date for commencement of commercial 
operation as defined in paragraph (2) of this definition and that is 
subsequently replaced by a unit at the same source (e.g., repowered), 
such date shall remain the replaced unit's date of commencement of 
commercial operation, and the replacement unit shall be treated as a 
separate unit with a separate date for commencement of commercial 
operation as defined in paragraph (1) or (2) of this definition as 
appropriate.
    Commence operation means:
    (1) To have begun any mechanical, chemical, or electronic process, 
including, with regard to a unit, start-up of a unit's combustion 
chamber, except as provided in Sec.  96.284(h).
    (2) For a unit that undergoes a physical change (other than 
replacement of the unit by a unit at the same source) after the date 
the unit commences operation as defined in paragraph (1) of this 
definition, such date shall remain the date of commencement of 
operation of the unit, which shall continue to be treated as the same unit.
    (3) For a unit that is replaced by a unit at the same source (e.g., 
repowered) after the date the unit commences operation as defined in 
paragraph (1) of this definition, such date shall remain the replaced 
unit's date of commencement of operation, and the replacement unit 
shall be treated as a separate unit with a separate date for 
commencement of operation as defined in paragraph (1), (2), or (3) of 
this definition as appropriate, except as provided in (96.284(h).
* * * * *
    Hg Budget Trading Program means a multi-state Hg air pollution 
control and emission reduction program approved and administered by the 
Administrator in accordance subpart HHHH of part 60 of this chapter and 
Sec.  60.24(h)(6), or established by the Administrator under section 
111 of the Clean Air Act, as a means of reducing national Hg emissions.
* * * * *
    Maximum design heat input means the maximum amount of fuel per hour 
(in Btu/hr) that a unit is capable of combusting on a steady state 
basis as of the initial installation of the unit as specified by the 
manufacturer of the unit.
* * * * *
    Replacement, replace, or replaced means, with regard to a unit, the 
demolishing of a unit, or the permanent shutdown and permanent 
disabling of a unit, and the construction of another unit (the 
replacement unit) to be used instead of the demolished or shutdown unit 
(the replaced unit).
* * * * *
    Solid waste incineration unit means a stationary, fossil-fuel-fired 
boiler or stationary, fossil-fuel-fired combustion turbine that is a 
``solid waste incineration unit'' as defined in section 129(g)(1) of 
the Clean Air Act.
* * * * *

? 35. Section 96.203 is revised to read as follows:

Sec.  96.203  Measurements, abbreviations, and acronyms.

    Measurements, abbreviations, and acronyms used in this subpart and 
subparts BBB through III are defined as follows:

Btu--British thermal unit
CO₂--carbon dioxide
H₂O--water
Hg--mercury
 hr--hour
kW--kilowatt electrical
kWh--kilowatt hour
lb--pound
mmBtu--million Btu
MWe--megawatt electrical
MWh--megawatt hour
NO_X--nitrogen oxides
O₂--oxygen
ppm--parts per million
scfh--standard cubic feet per hour
SO₂--sulfur dioxide
 yr--year

? 36. Section 96.204 is revised to read as follows:

Sec.  96.204  Applicability.

    (a) Except as provided in paragraph (b) of this section:
    (1) The following units in a State shall be CAIR SO₂ 
units, and any source that includes one or more such units shall be a 
CAIR SO₂ source, subject to the requirements of this subpart 
and subparts BBB through HHH of this part: any stationary, fossil-fuel-
fired boiler or stationary, fossil-fuel-fired combustion turbine 
serving at any time, since the later of November 15, 1990 or the start-
up of the unit's combustion chamber, a generator with nameplate 
capacity of more than 25 MWe producing electricity for sale.
    (2) If a stationary boiler or stationary combustion turbine that, 
under paragraph (a)(1) of this section, is not a CAIR SO₂ 
unit begins to combust fossil fuel or to serve a generator with 
nameplate capacity of more than 25 MWe producing electricity for sale, 
the unit shall become a CAIR SO₂ unit as provided in 
paragraph (a)(1) of this section on the first date on which it both 
combusts fossil fuel and serves such generator.
    (b) The units in a State that meet the requirements set forth in 
paragraph (b)(1)(i), (b)(2)(i), or (b)(2)(ii) of this section shall not 
be CAIR SO₂ units:
    (1)(i) Any unit that is a CAIR SO₂ unit under paragraph 
(a)(1) or (2) of this section:
    (A) Qualifying as a cogeneration unit during the 12-month period 
starting on the date the unit first produces electricity and continuing 
to qualify as a cogeneration unit; and
    (B) Not serving at any time, since the later of November 15, 1990 
or the start-up of the unit's combustion chamber, a generator with 
nameplate capacity of more than 25 MWe supplying in any calendar year 
more than one-third of the unit's potential electric output capacity or 
219,000 MWh, whichever is greater, to any utility power distribution 
system for sale.
    (ii) If a unit qualifies as a cogeneration unit during the 12-month 
period starting on the date the unit first produces electricity and 
meets the requirements of paragraphs (b)(1)(i) of this section for at 
least one calendar year, but subsequently no longer meets all such 
requirements, the unit shall become a CAIR SO₂ unit starting 
on the earlier of January 1 after the first calendar year during which 
the unit first no longer qualifies as a cogeneration unit or January 1 
after the first calendar year during which the unit no longer meets the 
requirements of paragraph (b)(1)(i)(B) of this section.
    (2)(i) Any unit that is a CAIR SO₂ unit under paragraph 
(a)(1) or (2) of this section commencing operation before January 1, 1985:
    (A) Qualifying as a solid waste incineration unit; and
    (B) With an average annual fuel consumption of non-fossil fuel for 
1985-1987 exceeding 80 percent (on a Btu basis) and an average annual 
fuel consumption of non-fossil fuel for any 3 consecutive calendar 
years after 1990 exceeding 80 percent (on a Btu basis).
    (ii) Any unit that is a CAIR SO₂ unit under paragraph 
(a)(1) or (2) of this section commencing operation on or after January 
1, 1985:
    (A) Qualifying as a solid waste incineration unit; and
    (B) With an average annual fuel consumption of non-fossil fuel for 
the first 3 calendar years of operation exceeding 80 percent (on a Btu 
basis) and an average annual fuel consumption of non-fossil fuel for 
any 3 consecutive calendar years after 1990 exceeding 80 percent (on a 
Btu basis).
    (iii) If a unit qualifies as a solid waste incineration unit and 
meets the requirements of paragraph (b)(2)(i) or (ii) of this section 
for at least 3 consecutive

[[Page 25388]]

calendar years, but subsequently no longer meets all such requirements, 
the unit shall become a CAIR SO₂ unit starting on the 
earlier of January 1 after the first calendar year during which the 
unit first no longer qualifies as a solid waste incineration unit or 
January 1 after the first 3 consecutive calendar years after 1990 for 
which the unit has an average annual fuel consumption of fossil fuel of 
20 percent or more.

Sec.  96.205  [Amended]

? 37. Section 96.205 is amended as follows:
? a. In paragraph (a)(1), by revising the words ``Sec.  96.206(c)(4) 
through (8), Sec.  96.207, and subparts FFF and GGG'' to read ``Sec.  
96.206(c)(4) through (7), Sec.  96.207, Sec.  96.208, and subparts BBB, 
FFF, and GGG'';
? b. In paragraph (b)(2), by revising the words ``shall retain at the 
source'' to read ``shall retain, at the source''; and
? c. In paragraph (b)(6), by revising the words ``commences operation and 
commercial operation'' to read ``commences commercial operation''.

Sec.  96.206  [Amended]

? 38. Section 96.206 is amended as follows:
? a. In paragraph (a)(1)(i), by revising the words ``in Sec.  96.221(a) 
and (b)'' to read ``in Sec.  96.221'';
? b. In paragraph (c)(2), by revising the words ``under paragraph (c)(1) 
of this section'' with ``under paragraph (c)(1) of this section for the 
control period'' and by revising the words ``under Sec.  96.270(b)(1), 
(2), or (5)'' to read ``under Sec.  96.270(b)(1), (2), or (5) and for 
each control period thereafter'';
? c. In paragraph (c)(7), by revising the words ``from a CAIR 
SO₂ unit's compliance account'' to read ``from a CAIR 
SO₂ source's compliance account'' and by removing the words 
``that includes the CAIR SO₂ unit''; and
? d. In paragraph (d)(1), by removing the paragraph designation ``(1)'' 
and by redesignating paragraph (i) as paragraph (d)(1); and
? e. By removing paragraph (d)(2) and by redesignating paragraph (ii) as 
paragraph (d)(2).

Sec.  96.211  [Amended]

? 39. In paragraph (c), by revising the words ``96.251 and 96.282'' to 
read ``96.215, 96.251, and 96.282''.

Sec.  96.212  [Amended]

? 40. Section 96.212 is amended, in paragraph (c)(1), by revising the 
words ``a new owner'' to read ``an owner'', by revising the words 
``such new owner'' to read ``such owner'', and by revising the words 
``the new owner'' to read ``the owner''.

Sec.  96.213  [Amended]

? 41. Section 96.213 is amended as follows:
? a. In paragraph (a)(1), by revising the words ``is submitted'' to read 
``is submitted, including identification and nameplate capacity of each 
generator served by each such unit''; and
? b. In paragraph (a)(4)(iv), by revising the words ``where a customer'' 
to read ``where a utility or industrial customer''.
? 42. Add a new section 96.215 to read as follows:

Sec.  96.215  Delegation by CAIR designated representative and 
alternate CAIR designated representative.

    (a) A CAIR designated representative may delegate, to one or more 
natural persons, his or her authority to make an electronic submission 
to the Administrator provided for or required under this part.
    (b) An alternate CAIR designated representative may delegate, to 
one or more natural persons, his or her authority to make an electronic 
submission to the Administrator provided for or required under this part.
    (c) In order to delegate authority to make an electronic submission 
to the Administrator in accordance with paragraph (a) or (b) of this 
section, the CAIR designated representative or alternate CAIR 
designated representative, as appropriate, must submit to the 
Administrator a notice of delegation, in a format prescribed by the 
Administrator that includes the following elements:
    (1) The name, address, e-mail address, telephone number, and 
facsimile transmission number (if any) of such CAIR designated 
representative or alternate CAIR designated representative;
    (2) The name, address, e-mail address, telephone number, and 
facsimile transmission number (if any) of each such natural person 
``referred to as an ``agent'');
    (3) For each such natural person, a list of the type or types of 
electronic submissions under paragraph (a) or (b) of this section for 
which authority is delegated to him or her; and
    (4) The following certification statements by such CAIR designated 
representative or alternate CAIR designated representative:
    (i) ``I agree that any electronic submission to the Administrator 
that is by an agent identified in this notice of delegation and of a 
type listed for such agent in this notice of delegation and that is 
made when I am a CAIR designated representative or alternate CAIR 
designated representative, as appropriate, and before this notice of 
delegation is superseded by another notice of delegation under 40 CFR 
96.215(d) shall be deemed to be an electronic submission by me.''
    (ii) ``Until this notice of delegation is superseded by another 
notice of delegation under 40 CFR 96.215(d), I agree to maintain an e-
mail account and to notify the Administrator immediately of any change 
in my e-mail address unless all delegation of authority by me under 40 
CFR 96.215 is terminated.''.
    (d) A notice of delegation submitted under paragraph (c) of this 
section shall be effective, with regard to the CAIR designated 
representative or alternate CAIR designated representative identified 
in such notice, upon receipt of such notice by the Administrator and 
until receipt by the Administrator of a superseding notice of 
delegation submitted by such CAIR designated representative or 
alternate CAIR designated representative, as appropriate. The 
superseding notice of delegation may replace any previously identified 
agent, add a new agent, or eliminate entirely any delegation of authority.
    (e) Any electronic submission covered by the certification in 
paragraph (c)(4)(i) of this section and made in accordance with a 
notice of delegation effective under paragraph (d) of this section 
shall be deemed to be an electronic submission by the CAIR designated 
representative or alternate CAIR designated representative submitting 
such notice of delegation.

Sec.  96.220  [Amended]

? 43. Section 96.220 is amended as follows:
? a. In paragraph (a), by revising the words ``otherwise by this subpart 
and'' to read ``otherwise by Sec.  96.205, this subpart, and''; and
? b. In paragraph (b), by replacing the words ``CAIR SO₂ units 
at the source'' to read ``CAIR SO₂ units at the source 
covered by the CAIR permit''.

Sec.  96.221  [Amended]

? 44. Section 96.221 is amended as follows:
? a. In paragraph (a), by revising the words ``commences operation'' to 
read ``commences commercial operation, except as provided in Sec.  
96.283(a)'' and
? b. In paragraph (b), by revising the words ``permit renewal'' to read 
``permit renewal, except as provided in Sec.  96.283(b)''.

? 45. Section 96.251 is amended as follows:
? a. In paragraph (b)(2) introductory text, by revising the word 
``representative'' to read ``representative

[[Page 25389]]

or alternate CAIR authorized account representative'';
? b. In paragraph (b)(3)(iii)(A), by revising the words ``a new person'' 
to read ``a person'', revise the words ``such new person'' to read 
``such person'', and revise the words ``the new person'' to read ``the 
person'';
? c. In paragraph (b)(3)(iii)(B), by revising the words ``addition of 
persons'' to read ``addition of a new person'';
? d. In paragraph (b)(4) introductory text, by revising the word 
``representative'' to read ``representative or alternate CAIR 
authorized account representative'';
? e. In paragraphs (b)(4)(ii) and (iii), by revising the words 
``alternative CAIR'' to read ``alternate CAIR'' whenever they appear; 
and
? f. By adding a new paragraph (b)(5) to read as follows:

Sec.  96.251  Establishment of accounts.

* * * * *
    (b) * * *
    (5) Delegation by CAIR authorized account representative and 
alternate CAIR authorized account representative. (i) A CAIR authorized 
account representative may delegate, to one or more natural persons, 
his or her authority to make an electronic submission to the 
Administrator provided for or required under subparts FFF and GGG of 
this part.
    (ii) An alternate CAIR authorized account representative may 
delegate, to one or more natural persons, his or her authority to make 
an electronic submission to the Administrator provided for or required 
under subparts FFF and GGG of this part.
    (iii) In order to delegate authority to make an electronic 
submission to the Administrator in accordance with paragraph (b)(5)(i) 
or (ii) of this section, the CAIR authorized account representative or 
alternate CAIR authorized account representative, as appropriate, must 
submit to the Administrator a notice of delegation, in a format 
prescribed by the Administrator, that includes the following elements:
    (A) The name, address, e-mail address, telephone number, and 
facsimile transmission number (if any) of such CAIR authorized account 
representative or alternate CAIR authorized account representative;
    (B) The name, address, e-mail address, telephone number, and, 
facsimile transmission number (if any) of each such natural person 
(referred to as an ``agent'');
    (C) For each such natural person, a list of the type or types of 
electronic submissions under paragraph (b)(5)(i) or (ii) of this 
section for which authority is delegated to him or her;
    (D) The following certification statement by such CAIR authorized 
account representative or alternate CAIR authorized account 
representative: ``I agree that any electronic submission to the 
Administrator that is by an agent identified in this notice of 
delegation and of a type listed for such agent in this notice of 
delegation and that is made when I am a CAIR authorized account 
representative or alternate CAIR authorized representative, as 
appropriate, and before this notice of delegation is superseded by 
another notice of delegation under 40 CFR 96.251(b)(5)(iv) shall be 
deemed to be an electronic submission by me.''; and
    (E) The following certification statement by such CAIR authorized 
account representative or alternate CAIR authorized account 
representative: ``Until this notice of delegation is superseded by 
another notice of delegation under 40 CFR 96.251 (b)(5)(iv), I agree to 
maintain an e-mail account and to notify the Administrator immediately 
of any change in my e-mail address unless all delegation of authority 
by me under 40 CFR 96.251 (b)(5) is terminated.''
    (iv) A notice of delegation submitted under paragraph (b)(5)(iii) 
of this section shall be effective, with regard to the CAIR authorized 
account representative or alternate CAIR authorized account 
representative identified in such notice, upon receipt of such notice 
by the Administrator and until receipt by the Administrator of a 
superseding notice of delegation submitted by such CAIR authorized 
account representative or alternate CAIR authorized account 
representative, as appropriate. The superseding notice of delegation 
may replace any previously identified agent, add a new agent, or 
eliminate entirely any delegation of authority.
    (v) Any electronic submission covered by the certification in 
paragraph (b)(5)(iii)(D) of this section and made in accordance with a 
notice of delegation effective under paragraph (b)(5)(iv) of this 
section shall be deemed to be an electronic submission by the CAIR 
designated representative or alternate CAIR designated representative 
submitting such notice of delegation.
* * * * *

Sec.  96.254  [Amended]

? 46. Section 96.254 is amended as follows:
? a. In paragraph (a)(1), by revising the words ``prior year;'' to read 
``prior year; and'';
? b. In paragraph (a)(2), revising the words ``Sec.  96.260 by the 
allowance transfer deadline for the control period; and'' to read 
``Sec. Sec.  96.260 and 96.261 by the allowance transfer deadline for 
the control period.'';
? c. Removing paragraph (a)(3);
? d. In paragraph (b)(1)(ii), by removing the words ``available under 
paragraph (a) of this section and'';
? d. In paragraphs (c)(2)(ii), (c)(2)(iv), and (c)(2)(vi), by revising 
the words ``to any unit'' to read ``to any entity'';
? e. In paragraph (d)(1), by revising the words ``3 times the number of 
tons of the source's excess emissions'' to read ``3 times the following 
amount: the number of tons of the source's excess emissions minus, if 
the source is subject to an Acid Rain emissions limitation, the amount 
of the CAIR SO₂ allowances required to be deducted under 
paragraph (b)(1)(ii) of this section'';
? f. In paragraph (e), by revising the words ``under paragraph (b) or (d) 
of this section'' to read ``under paragraphs (b) and (d) of this 
section) and subpart III''; and
? g. In paragraph (f)(2), by revising the words ``of this section'' to 
read ``of this section, and record such deductions and transfers''.

Sec.  96.255  [Amended]

? 47. Section 96.255 is amended, in paragraph (b), by revising the words 
``Sec.  96.256, or subpart GGG'' to read ``Sec.  96.256, or subpart GGG 
or III''.

Sec.  96.257  [Amended]

? 48. Section 96.257 is amended, in paragraphs (a) and (b), by revising 
the words ``96.260''; to read ``Sec. Sec.  96.260 and 96.261''.

? 49. Section 96.261 is amended as follows:
? a. In paragraph (a)(1), by revising the words ``Sec.  96.260; and'' to 
read ``Sec.  96.260;'';
? b. In paragraph (a)(2), by revising the words ``transfer.'' to read 
``transfer; and''; and
? c. By adding a new paragraph (a)(3) to read as follows:

Sec.  96.261  EPA recordation.

    (a) * * *
    (3) The transfer is in accordance with the limitation on transfer 
under Sec.  74.42 of this chapter and Sec.  74.47(c) of this chapter, 
as applicable.
* * * * *

? 50. Section 96.270 is amended as follows:
? a. In paragraph (b) introductory text, by revising the words ``The 
owner'' to read ``Except as provided in paragraph (e) of this section, 
the owner'';

[[Page 25390]]

? b. In paragraph (b)(5), by revising the words ``paragraphs (b)(1) and 
(2) of this section and solely for purposes of Sec.  96.206(c)(2), for 
the owner'' to read ``paragraphs (b)(1) and (2) of this section, for 
the owner'';
? c. In paragraph (c)(1), by removing the paragraph designation ``(1)'' 
and by revising the words ``Except as provided in paragraph (c)(2) of 
this section, the owner'' to read ``The owner'' and the words 
``SO₂ concentration, SO₂ emission rate,'' to read 
``SO₂ concentration,'';
? d. By removing paragraph (c)(2);
? e. In paragraph (d)(3), by revising the words ``the atmosphere'' to 
read ``the atmosphere or heat input''; and
? f. By adding a new paragraph (e) to read as follows:

Sec.  96.270  General requirements.

* * * * *
    (e) Long-term cold storage. The owner or operator of a CAIR 
SO₂ unit is subject to the applicable provisions of part 75 
of this chapter concerning units in long-term cold storage.

Sec.  96.271  [Amended]

? 51. Section 96.271 is amended by removing and reserving paragraph (c).

Sec.  96.273  [Amended]

? 52. Section 96.273 is amended by removing the words ``, except that if 
the unit is not subject to an Acid Rain emissions limitation, the 
notification is only required to be sent to the permitting authority''.

? 53. Section 96.274 is amended as follows:
? a. In paragraph (d)(1)(i), by revising the words ``2009; or'' to read 
``2009;'';
? b. In paragraph (d)(1)(ii), by revising the words ``2009.'' to read 
``2009;'';
? c. By adding new paragraphs (d)(1)(iii) and (iv); and
? d. In paragraph (d)(3), by revising the words ``or CAIR NO_X 
Ozone Season Trading Program,'' to read ``, CAIR NO_X Ozone 
Season Trading Program, or Hg Budget Trading Program,'' and by revising 
the words ``subparts F through H'' to read ``subparts F through I'' and 
revising to read as follows:

Sec.  96.274  Recordkeeping and reporting.

* * * * *
    (d) * * *
    (1) * * *
    (iii) Notwithstanding paragraphs (d)(1)(i) and (ii) of this 
section, for a unit for which a CAIR opt-in permit application is 
submitted and not withdrawn and a CAIR opt-in permit is not yet issued 
or denied under subpart III of this part, the calendar quarter 
corresponding to the date specified in Sec.  96.284(b); and
    (iv) Notwithstanding paragraphs (d)(1)(i) and (ii) of this section, 
for a CAIR SO₂ opt-in unit under subpart III of this part, 
the calendar quarter corresponding to the date on which the CAIR 
SO₂ opt-in unit enters the CAIR SO₂ Trading 
Program as provided in Sec.  96.284(g).
* * * * *

Sec.  96.276  [Removed]

? 54. Section 96.276 is removed.

? 55. Section 96.283 is amended as follows:
? a. In paragraph (a)(2)(iii), by revising the words ``CAIR opt-in unit'' 
to read ``CAIR SO₂ opt-in unit'';
? b. By revising paragraph (a)(5);
? c. In paragraph (b)(1), by revising the words ``or permitting 
authority's'' to read ``or the permitting authority's'';
? d. In paragraph (b)(2), by revising the words ``withdrawal of the CAIR 
opt-in unit'' to read ``withdrawal of the CAIR SO₂ opt-in 
unit'' and revising to read as follows:

Sec.  96.283  Applying for CAIR opt-in permit.

    (a) * * *
    (5) A statement, in a format specified by the permitting authority, 
whether the CAIR designated representative requests that the unit be 
allocated CAIR SO₂ allowances under Sec.  96.288(b) or Sec.  
96.288(c) (subject to the conditions in Sec. Sec.  96.284(h) and 
96.286(g)). If allocation under Sec.  96.288(c) is requested, this 
statement shall include a statement that the owners and operators of 
the unit intend to repower the unit before January 1, 2015 and that 
they will provide, upon request, documentation demonstrating such 
intent.
* * * * *

Sec.  96.284  [Amended]

? 56. Section 96.284 is amended as follows:
? a. In paragraph (a), by revising the words ``heat input of the unit'' 
to read ``heat input of the unit and all other applicable parameters'';
? b. In paragraph (c)(2), by revising the words ``for the control period 
under paragraph (b)(1)(ii) of this section and the control periods 
under paragraph (b)(2) of this section'' to read ``for the control 
periods under paragraphs (b)(1)(ii) and (2) of this section'';
? c. In paragraph (d)(2), by revising the words ``for the control period 
under paragraph (b)(1)(ii) of this section and the control periods 
under paragraph (b)(2) of this section'' to read ``for the control 
periods under paragraphs (b)(1)(ii) and (2) of this section'';
? d. In paragraph (d)(3), by revising the words ``for such control 
period'' with words ``for such control periods'';
? d. In paragraph (f), by revising the words ``CAIR SO₂ opt-in 
permit'' to read ``CAIR opt-in permit''; and
? e. In paragraph (h)(2), by revising the words ``a CAIR opt-in unit'' to 
read ``a CAIR SO₂ opt-in unit''.

? 57. Section 96.285 is amended as follows:
? a. In paragraph (a)(5), by revising the words ``under Sec.  96.288(c)'' 
to read ``Sec.  96.288(b) or Sec.  96.288(c)''; and
? b. By adding a new paragraph (c) to read as follows:

Sec.  96.285  CAIR opt-in permit contents.

* * * * *
    (c) The CAIR opt-in permit shall be included, in a format specified 
by the permitting authority, in the CAIR permit for the source where 
the CAIR SO₂ opt-in unit is located and in a title V 
operating permit or other federally enforceable permit for the source.

Sec.  96.286  [Amended]

? 58. Section 96.286 is amended as follows:
? a. In paragraph (a), by revising the words ``CAIR opt-in unit'' to read 
``CAIR SO₂ opt-in unit''; and
? b. In paragraph (b)(2), by revising the words ``equal in number to'' to 
read ``equal in amount to'' and by revising the words ``Sec.  96.188'' 
to read ``Sec.  96.288''.

Sec.  96.287  [Amended]

? 59. Section 96.287 is amended as follows:
? a. In paragraph (b)(1), by revising the words ``under Sec.  96.223'' to 
read ``under Sec.  96.223, and remove the CAIR opt-in permit 
provisions,'';
? b. In paragraph (b)(2)(i), by revising the words ``equal in number to'' 
to read ``equal in amount to''; and
? c. By removing paragraph (b)(3).

Sec.  96.288  CAIR SO₂ allowance allocations to CAIR 
SO₂ opt-in units.

? 60. Section 96.288 is amended as follows:
? a. By revising the heading of the section as set forth above;
? b. In paragraph (a)(2), by revising the words ``of the control period 
in which a CAIR opt-in unit'' to read ``of the control period after the 
control period in which a CAIR SO₂ opt-in unit'';
? c. In paragraph (c), by revising the words ``issues a CAIR opt-in 
permit'' to read ``issues a CAIR opt-in permit (based on a 
demonstration of the intent to repower stated under Sec.  
96.283(a)(5))''; and
? d. In paragraph (d)(2), by revising the words ``CAIR opt-in unit'' to 
read ``CAIR SO₂ opt-in unit''.

? 61. Section 96.302 is amended as follows:

[[Page 25391]]

? a. By revising the definition of ``Allocate or allocation'';
? b. In the definition of ``Allowance transfer deadline'', by revising 
the words ``midnight of November 30, if it is a business day, or, if 
November 30 is not a business day, midnight of the first business day 
thereafter'' to read ``midnight of November 30 (if it is a business 
day), or midnight of the first business day thereafter (if November 30 
is not a business day),'';
? c. In the definition of ``Alternate CAIR designated representative'', 
by adding at the end the words ``If the CAIR NO_X Ozone 
Season source is also subject to the Hg Budget Trading Program, then 
this natural person shall be the same person as the alternate Hg 
designated representative under the Hg Budget Trading Program.''
? d. In the definition of ``CAIR authorized account representative'', by 
revising the words ``subparts BBBB and IIII'' to read ''subparts BBBB, 
FFFF, and IIII'';
? e. In the definition of ``CAIR designated representative'', by adding 
at the end the words ``If the CAIR NO_X Ozone Season source 
is also subject to the Hg Budget Trading Program, then this natural 
person shall be the same person as the Hg designated representative 
under the Hg Budget Trading Program.''
? f. In the definition of ``CAIR NO_X Annual Trading Program'', 
by revising the words ``Sec.  51.123 of this chapter,'' to read ``Sec.  
51.123 of this chapter or established by the Administrator in 
accordance with subparts AA through II of part 97 of this chapter and 
Sec. Sec.  51.123(p) and 52.35 of this chapter,'';
? g. Revising the definition of ``CAIR NO_X Ozone Season 
allowance'';
?
h. In the definition of ``CAIR NO_X Ozone Season allowance 
deduction or deduct CAIR NO_X Ozone Season allowances'', by 
adding, after the words ``compliance account'', the words ``, e.g.,'';
?
i. In the definition of ``CAIR NO_X Ozone Season emissions 
limitation'', by revising the words ``tonnage equivalent of'' to read 
``tonnage equivalent, in NO_X emissions in a control period, 
of'' and by revising the words ``for a control period'' to read ``for 
the control period'';
? j. In the definition of ``CAIR NO_X Ozone Season Trading 
Program'', by revising the words ``Sec.  51.123 of this chapter,'' to 
read ``Sec.  51.123 of this chapter or established by the Administrator 
in accordance with subparts AAAA through IIII of part 97 of this 
chapter and Sec. Sec.  51.123(ee) and 52.35 of this chapter,'';
? k. In the definition of ``CAIR NO_X source'', by revising the 
words ``includes one or more CAIR NO_X units'' to read ``is 
subject to the CAIR NO_X Annual Trading Program'';
? l. By removing the definition of ``CAIR NO_X unit'';
? m. In the definition of ``CAIR SO₂ source'', by revising the 
words ``includes one or more CAIR SO₂ units'' to read ``is 
subject to the CAIR SO₂ Trading Program'';
? n. In the definition of ``CAIR SO₂ Trading Program'', by 
revising the words ``Sec.  51.124 of this chapter,'' to read ``Sec.  
51.124 of this chapter or established by the Administrator in 
accordance with subparts AAA through III of part 97 of this chapter and 
Sec. Sec.  51.124(r) and 52.36 of this chapter,'';
? o. By removing the definition of ``CAIR SO₂ unit'';
? p. In paragraph (2) of the definition of ``Cogeneration unit'', by 
revising the words ``calendar year after which'' to read ``calendar 
year after the calendar year in which'';
? q. In the definition of ``Combustion turbine'', by revising the words 
``any associated heat recovery steam generator'' to read ``any 
associated duct burner, heat recovery steam generator,'';
? r. By revising the definition of ``Commence commercial operation'';
? s. By revising the definition of ``Commence operation'';
? 
t. In the definition of ``Control period'', by revising the words ``May 
1 of a calendar year and'' to read ``May 1 of a calendar year, except 
as provided in Sec.  96.306(c)(2), and'';
? u. By revising the definition of ``Maximum design heat input'';
? v. In the definition of ``Nameplate capacity'', by revising the words 
``other deratings) as specified''to read ``other deratings) as of such 
installation as specified'' and by revising the words ``maximum amount 
as specified'' to read ``maximum amount as of such completion as 
specified'';
? w. In the definition of ``Oil-fired'', by revising the words ``in a 
specified year.'' to read ``in a specified year and not qualifying as 
coal-fired.'';
? x. In the definition of ``Receive or receipt'', by revising the words 
``official correspondence log'' to read ``official log'';
? y. In the definition of ``Useful thermal energy'', by revising in 
paragraph (2) the word ``heat'' with the word ``heating''; and
? z. By adding new definitions of ``Hg Budget Trading Program'', 
``Replacement, replace, or replaced'', and ``Solid waste incineration 
unit'' and revising to read as follows:

Sec.  96.302  Definitions.

* * * * *
    Allocate or allocation means, with regard to CAIR NO_X 
Ozone Season allowances, the determination by a permitting authority or 
the Administrator of the amount of such CAIR NO_X Ozone 
Season allowances to be initially credited to a CAIR NO_X 
Ozone Season unit, a new unit set-aside, or other entity.
* * * * *
    CAIR NOX Ozone Season allowance means a limited authorization 
issued by a permitting authority or the Administrator under provisions 
of a State implementation plan that are approved under Sec.  
51.123(aa)(1) or (2) (and (bb)(1)), (bb)(2), (dd), or (ee) of this 
chapter, or under subpart EEEE of part 97 or Sec.  97.388 of this 
chapter, to emit one ton of nitrogen oxides during a control period of 
the specified calendar year for which the authorization is allocated or 
of any calendar year thereafter under the CAIR NO_X Ozone 
Season Trading Program or a limited authorization issued by a 
permitting authority for a control period during 2003 through 2008 
under the NO_X Budget Trading Program in accordance with 
Sec.  51.121(p) of this chapter to emit one ton of nitrogen oxides 
during a control period, provided that the provision in Sec.  
51.121(b)(2)(ii)(E) of this chapter shall not be used in applying this 
definition and the limited authorization shall not have been used to 
meet the allowance-holding requirement under the NO_X Budget 
Trading Program. An authorization to emit nitrogen oxides that is not 
issued under provisions of a State implementation plan approved under 
Sec.  51.123(aa)(1) or (2) (and (bb)(1)), (bb)(2), (dd), or (ee) of 
this chapter or subpart EEEE of part 97 or Sec.  97.388 of this chapter 
or under the NO_X Budget Trading Program as described in the 
prior sentence shall not be a CAIR NO_X Ozone Season allowance.
* * * * *
    Commence commercial operation means, with regard to a unit:
    (1) To have begun to produce steam, gas, or other heated medium 
used to generate electricity for sale or use, including test 
generation, except as provided in Sec.  96.305 and Sec.  96.384(h).
    (i) For a unit that is a CAIR NO_X Ozone Season unit 
under Sec.  97.304 on the later of November 15, 1990 or the date the 
unit commences commercial operation as defined in paragraph (1) of this 
definition and that subsequently undergoes a physical change (other 
than replacement of the unit by a unit at the same source), such date 
shall remain the date of commencement of commercial

[[Page 25392]]

operation of the unit, which shall continue to be treated as the same unit.
    (ii) For a unit that is a CAIR NO_X Ozone Season unit 
under Sec.  96.304 on the later of November 15, 1990 or the date the 
unit commences commercial operation as defined in paragraph (1) of this 
definition and that is subsequently replaced by a unit at the same 
source (e.g., repowered), such date shall remain the replaced unit's 
date of commencement of commercial operation, and the replacement unit 
shall be treated as a separate unit with a separate date for 
commencement of commercial operation as defined in paragraph (1) or (2) 
of this definition as appropriate.
    (2) Notwithstanding paragraph (1) of this definition and except as 
provided in Sec.  96.305, for a unit that is not a CAIR NO_X 
Ozone Season unit under Sec.  96.304 on the later of November 15, 1990 
or the date the unit commences commercial operation as defined in 
paragraph (1) of this definition, the unit's date for commencement of 
commercial operation shall be the date on which the unit becomes a CAIR 
NO_X Ozone Season unit under Sec.  96.304.
    (i) For a unit with a date for commencement of commercial operation 
as defined in paragraph (2) of this definition and that subsequently 
undergoes a physical change (other than replacement of the unit by a 
unit at the same source), such date shall remain the date of 
commencement of commercial operation of the unit, which shall continue 
to be treated as the same unit.
    (ii) For a unit with a date for commencement of commercial 
operation as defined in paragraph (2) of this definition and that is 
subsequently replaced by a unit at the same source (e.g., repowered), 
such date shall remain the replaced unit's date of commencement of 
commercial operation, and the replacement unit shall be treated as a 
separate unit with a separate date for commencement of commercial 
operation as defined in paragraph (1) or (2) of this definition as 
appropriate.
    Commence operation means:
    (1) To have begun any mechanical, chemical, or electronic process, 
including, with regard to a unit, start-up of a unit's combustion 
chamber, except as provided in Sec.  96.384(h).
    (2) For a unit that undergoes a physical change (other than 
replacement of the unit by a unit at the same source) after the date 
the unit commences operation as defined in paragraph (1) of this 
definition, such date shall remain the date of commencement of 
operation of the unit, which shall continue to be treated as the same unit.
    (3) For a unit that is replaced by a unit at the same source (e.g., 
repowered) after the date the unit commences operation as defined in 
paragraph (1) of this definition, such date shall remain the replaced 
unit's date of commencement of operation, and the replacement unit 
shall be treated as a separate unit with a separate date for 
commencement of operation as defined in paragraph (1), (2), or (3) of 
this definition as appropriate, except as provided in Sec.  96.384(h).
* * * * *
    Hg Budget Trading Program means a multi-state Hg air pollution 
control and emission reduction program approved and administered by the 
Administrator in accordance subpart HHHH of part 60 of this chapter and 
Sec.  60.24(h)(6), or established by the Administrator under section 
111 of the Clean Air Act, as a means of reducing national Hg emissions.
* * * * *
    Maximum design heat input means the maximum amount of fuel per hour 
(in Btu/hr) that a unit is capable of combusting on a steady state 
basis as of the initial installation of the unit as specified by the 
manufacturer of the unit.
* * * * *
    Replacement, replace, or replaced means, with regard to a unit, the 
demolishing of a unit, or the permanent shutdown and permanent 
disabling of a unit, and the construction of another unit (the 
replacement unit) to be used instead of the demolished or shutdown unit 
(the replaced unit).
* * * * *
    Solid waste incineration unit means a stationary, fossil-fuel-fired 
boiler or stationary, fossil-fuel-fired combustion turbine that is a 
``solid waste incineration unit'' as defined in section 129(g)(1) of 
the Clean Air Act.
* * * * *

? 62. Section 96.303 is revised to read as follows:

Sec.  96.303  Measurements, abbreviations, and acronyms.

    Measurements, abbreviations, and acronyms used in this subpart and 
subparts BBBB through IIII are defined as follows:

Btu--British thermal unit
CO₂--carbon dioxide
H₂O--water
Hg--mercury
hr--hour
kW--kilowatt electrical
kWh--kilowatt hour
lb--pound
mmBtu--million Btu
MWe--megawatt electrical
MWh--megawatt hour
NO_X--nitrogen oxides
O₂--oxygen
ppm--parts per million
scfh--standard cubic feet per hour
SO₂--sulfur dioxide
yr--year

? 63. Section 96.304 is revised to read as follows:

Sec.  96.304  Applicability.

    (a) Except as provided in paragraph (b) of this section:
    (1) The following units in a State shall be CAIR NO_X 
Ozone Season units, and any source that includes one or more such units 
shall be a CAIR NO_X Ozone Season source, subject to the 
requirements of this subpart and subparts BBBB through HHHH of this 
part: Any stationary, fossil-fuel-fired boiler or stationary, fossil-
fuel-fired combustion turbine serving at any time, since the later of 
November 15, 1990 or the start-up of the unit's combustion chamber, a 
generator with nameplate capacity of more than 25 MWe producing 
electricity for sale.
    (2) If a stationary boiler or stationary combustion turbine that, 
under paragraph (a)(1) of this section, is not a CAIR NO_X 
Ozone Season unit begins to combust fossil fuel or to serve a generator 
with nameplate capacity of more than 25 MWe producing electricity for 
sale, the unit shall become a CAIR NO_X Ozone Season unit as 
provided in paragraph (a)(1) of this section on the first date on which 
it both combusts fossil fuel and serves such generator.
    (b) The units in a State that meet the requirements set forth in 
paragraph (b)(1)(i), (b)(2)(i), or (b)(2)(ii) of this section shall not 
be CAIR NO_X Ozone Season units:
    (1)(i) Any unit that is a CAIR NO_X Ozone Season unit 
under paragraph (a)(1) or (2) of this section:
    (A) Qualifying as a cogeneration unit during the 12-month period 
starting on the date the unit first produces electricity and continuing 
to qualify as a cogeneration unit; and
    (B) Not serving at any time, since the later of November 15, 1990 
or the start-up of the unit's combustion chamber, a generator with 
nameplate capacity of more than 25 MWe supplying in any calendar year 
more than one-third of the unit's potential electric output capacity or 
219,000 MWh, whichever is greater, to any utility power distribution 
system for sale.
    (ii) If a unit qualifies as a cogeneration unit during the 12-month 
period starting on the date the unit first produces electricity and 
meets the requirements of paragraphs (b)(1)(i) of this section for

[[Page 25393]]

at least one calendar year, but subsequently no longer meets all such 
requirements, the unit shall become a CAIR NO_X Ozone Season 
unit starting on the earlier of January 1 after the first calendar year 
during which the unit first no longer qualifies as a cogeneration unit 
or January 1 after the first calendar year during which the unit no 
longer meets the requirements of paragraph (b)(1)(i)(B) of this section.
    (2)(i) Any unit that is a CAIR NO_X Ozone Season unit 
under paragraph (a)(1) or (2) of this section commencing operation 
before January 1, 1985:
    (A) Qualifying as a solid waste incineration unit; and
    (B) With an average annual fuel consumption of non-fossil fuel for 
1985-1987 exceeding 80 percent (on a Btu basis) and an average annual 
fuel consumption of non-fossil fuel for any 3 consecutive calendar 
years after 1990 exceeding 80 percent (on a Btu basis).
    (ii) Any unit that is a CAIR NO_X Ozone Season unit under 
paragraph (a)(1) or (2) of this section commencing operation on or 
after January 1, 1985:
    (A) Qualifying as a solid waste incineration unit; and
    (B) With an average annual fuel consumption of non-fossil fuel for 
the first 3 calendar years of operation exceeding 80 percent (on a Btu 
basis) and an average annual fuel consumption of non-fossil fuel for 
any 3 consecutive calendar years after 1990 exceeding 80 percent (on a 
Btu basis).
    (iii) If a unit qualifies as a solid waste incineration unit and 
meets the requirements of paragraph (b)(2)(i) or (ii) of this section 
for at least 3 consecutive calendar years, but subsequently no longer 
meets all such requirements, the unit shall become a CAIR 
NO_X Ozone Season unit starting on the earlier of January 1 
after the first calendar year during which the unit first no longer 
qualifies as a solid waste incineration unit or January 1 after the 
first 3 consecutive calendar years after 1990 for which the unit has an 
average annual fuel consumption of fossil fuel of 20 percent or more.

Sec.  96.305  [Amended]

? 64. Section 96.305 is amended as follows:
? a. In paragraph (a)(1), by revising the words ``CAIR NO_X 
Ozone Season opt-in unit'' to read ``CAIR NO_X Ozone Season 
opt-in unit under subpart IIII of this part'' and by revising the words 
``Sec.  96.306(c)(4) through (8), Sec.  96.307, and subparts EEEE 
through GGGG'' to read ``Sec.  96.306(c)(4) through (7), Sec.  96.307, 
Sec.  96.308, and subparts BBBB and EEEE through GGGG'';
? b. In paragraph (b)(3), by revising the words ``shall retain at the 
source'' to read ``shall retain, at the source''; and
? c. In paragraph (b)(7), by revising the words ``commences operation and 
commercial operation'' to read ``commences commercial operation''.

Sec.  96.306  [Amended]

? 65. Section 96.306 is amended as follows:
? a. In paragraph (a)(1)(i), by revising the words ``in Sec.  96.321(a) 
and (b)'' to read ``in Sec.  96.321'';
? b. In paragraph (c)(2), by revising the words ``under paragraph (c)(1) 
of this section'' with ``under paragraph (c)(1) of this section for the 
control period'' and by revising the words ``under Sec.  96.370(b)(1), 
(2), (3), or (7)'' to read ``under Sec.  96.370(b)(1), (2), (3), or (7) 
and for each control period thereafter'';
? c. In paragraph (c)(4), by revising the words ``subpart EEEE'' to read 
``subparts FFFF, GGGG, and IIII'';
? d. In paragraph (c)(7), by revising the words ``from a CAIR 
NO_X Ozone Season unit's compliance account'' to read ``from 
a CAIR NO_X Ozone Season source's compliance account'', and 
by removing the words ``that includes the CAIR NO_X Ozone 
Season unit''; and
? e. In paragraph (d)(1), by removing the paragraph designation ``(1)'' 
and by redesignating paragraph (i) as paragraph (d)(1); and
? f. By removing paragraph (d)(2) and by redesignating paragraph (ii) as 
paragraph (d)(2).

Sec.  96.311  [Amended]

? 66. In paragraph (c), by revising the words ``96.351 and 96.382'' to 
read ``96.315, 96.351, and 96.382''.

Sec.  96.312  [Amended]

? 67. Section 96.312 is amended, in paragraph (c)(1), by revising the 
words ``a new owner'' to read ``an owner'', by revising the words 
``such new owner'' to read ``such owner'', and by revising the words 
``the new owner'' to read ``the owner''.

Sec.  96.313  Amended]

? 68. Section 96.313 is amended as follows:
? a. In paragraph (a)(1), by revising the words ``is submitted'' to read 
``is submitted, including identification and nameplate capacity of each 
generator served by each such unit''; and
? b. In paragraph (a)(4)(iv), by revising the words ``where a customer'' 
to read ``where a utility or industrial customer''.

? 69. A new section 96.315 is added to read as follows:

Sec.  96.315  Delegation by CAIR designated representative and 
alternate CAIR designated representative.

    (a) A CAIR designated representative may delegate, to one or more 
natural persons, his or her authority to make an electronic submission 
to the Administrator provided for or required under this part.
    (b) An alternate CAIR designated representative may delegate, to 
one or more natural persons, his or her authority to make an electronic 
submission to the Administrator provided for or required under this 
part.
    (c) In order to delegate authority to make an electronic submission 
to the Administrator in accordance with paragraph (a) or (b) of this 
section, the CAIR designated representative or alternate CAIR 
designated representative, as appropriate, must submit to the 
Administrator a notice of delegation, in a format prescribed by the 
Administrator, that includes the following elements:
    (1) The name, address, e-mail address, telephone number, and 
facsimile transmission number (if any) of such CAIR designated 
representative or alternate CAIR designated representative;
    (2) The name, address, e-mail address, telephone number, and 
facsimile transmission number (if any) of each such natural person 
(referred to as an ``agent'');
    (3) For each such natural person, a list of the type or types of 
electronic submissions under paragraph (a) or (b) of this section for 
which authority is delegated to him or her; and
    (4) The following certification statements by such CAIR designated 
representative or alternate CAIR designated representative:
    (i) ``I agree that any electronic submission to the Administrator 
that is by an agent identified in this notice of delegation and of a 
type listed for such agent in this notice of delegation and that is 
made when I am a CAIR designated representative or alternate CAIR 
designated representative, as appropriate, and before this notice of 
delegation is superseded by another notice of delegation under 40 CFR 
96.315(d) shall be deemed to be an electronic submission by me.''
    (ii) ``Until this notice of delegation is superseded by another 
notice of delegation under 40 CFR 96.315(d), I agree to maintain an e-
mail account and to notify the Administrator immediately of any change 
in my e-mail address unless all delegation of authority by me under 40 
CFR 96.315 is terminated.''.
    (d) A notice of delegation submitted under paragraph (c) of this 
section shall

[[Page 25394]]

be effective, with regard to the CAIR designated representative or 
alternate CAIR designated representative identified in such notice, 
upon receipt of such notice by the Administrator and until receipt by 
the Administrator of a superseding notice of delegation submitted by 
such CAIR designated representative or alternate CAIR designated 
representative, as appropriate. The superseding notice of delegation 
may replace any previously identified agent, add a new agent, or 
eliminate entirely any delegation of authority.
    (e) Any electronic submission covered by the certification in 
paragraph (c)(4)(i) of this section and made in accordance with a 
notice of delegation effective under paragraph (d) of this section 
shall be deemed to be an electronic submission by the CAIR designated 
representative or alternate CAIR designated representative submitting 
such notice of delegation.

Sec.  96.320  [Amended]

? 70. Section 96.320 is amended, in paragraph (a), by revising the words 
``otherwise by this subpart and'' to read ``otherwise by Sec.  96.305, 
this subpart, and''.

Sec.  96.321  [Amended]

? 71. Section 96.321 is amended as follows:
? a. In paragraph (a), by revising the words ``commences operation'' to 
read ``commences commercial operation, except as provided in Sec.  
96.383(a)''; and
? 
b. In paragraph (b), by revising the words to read ``permit renewal'', 
to read ``permit renewal, except as provided in Sec.  96.383(b)''.

Sec.  96.341  [Amended]

? 72. Section 96.341 is amended as follows:
? a. In paragraph (b)(1), removing the paragraph designation ``(1)'';
? b. By removing paragraph (b)(2);
? c. In paragraph (c)(1), removing the paragraph designation ((1)(; and
? d.. By removing paragraph (c)(2).

? 73. Section 96.342 is amended as follows:
? a. In paragraph (a)(2)(i), by revising the words ``during a calendar 
year'' to read ``during a control period in a calendar year'';
? b. In paragraph (a)(2)(ii)(C), by revising the words ``3,414 Btu/kWh'' 
to read ``3,413 Btu/kWh'';
? c. By revising paragraph (c) introductory text;
? d. In paragraph (c)(1), by revising the words ``2009 through 2013'' to 
read ``2009 through 2014'' and revise the words ``in 2014'' to read 
``in 2015'';
? e. In paragraph (c)(2), by revising the words ``The CAIR NO_X 
Ozone Season allowance allocation request must be submitted on or 
before April 1 of the first control period for which CAIR 
NO_X Ozone Season allowances are requested'' to read ``A 
separate CAIR NO_X Ozone Season allowance allocation request 
for each control period for which CAIR NO_X allowances are 
sought must be submitted on or before February 1 of such control 
period''; and
? f. In paragraph (c)(4)(ii), by revising the words ``On or after April 
1'' to read ``On or after February 1'' and revising to read as follows:

Sec.  96.342  CAIR NOX Ozone Season allowance allocations.

* * * * *
    (c) For each control period in 2009 and thereafter, the permitting 
authority will allocate CAIR NO_X Ozone Season allowances to 
CAIR NO_X Ozone Season units in a State that are not 
allocated CAIR NO_X Ozone Season allowances under paragraph 
(b) of this section because the units do not yet have a baseline heat 
input under paragraph (a) of this section or because the units have a 
baseline heat input but all CAIR NO_X Ozone Season allowances 
available under paragraph (b) of this section for the control period 
are already allocated, in accordance with the following procedures:
* * * * *

? 74. Section 96.351 is amended as follows:
? a. In paragraph (b)(2) introductory text, by revising the word 
``representative'' to read ``representative or alternate CAIR 
authorized account representative'';
? b. In paragraph (b)(3)(iii)(A), by revising the words ``a new person'' 
to read ``a person'', by revising the words ``such new person'' to read 
``such person'', and by revising the words ``the new person'' to read 
``the person'';
? c. In paragraph (b)(3)(iii)(B), by revising the words ``addition of 
persons'' to read ``addition of a new person'';
? d. In paragraph (b)(4) introductory text, by revising the word 
``representative'' to read ``representative or alternate CAIR 
authorized account representative'';
? e. In paragraphs (b)(4)(ii) and (iii), by revising the words 
``alternative CAIR'' to read ``alternate CAIR'' whenever they appear; 
and
? f. By adding a new paragraph (b)(5) to read as follows:

Sec.  96.351  Establishment of accounts.

* * * * *
    (b) * * *
    (5) Delegation by CAIR authorized account representative and 
alternate CAIR authorized account representative. (i) A CAIR authorized 
account representative may delegate, to one or more natural persons, 
his or her authority to make an electronic submission to the 
Administrator provided for or required under subparts FFFF and GGGG of 
this part.
    (ii) An alternate CAIR authorized account representative may 
delegate, to one or more natural persons, his or her authority to make 
an electronic submission to the Administrator provided for or required 
under subparts FFFF and GGGG of this part.
    (iii) In order to delegate authority to make an electronic 
submission to the Administrator in accordance with paragraph (b)(5)(i) 
or (ii) of this section, the CAIR authorized account representative or 
alternate CAIR authorized account representative, as appropriate, must 
submit to the Administrator a notice of delegation, in a format 
prescribed by the Administrator, that includes the following elements:
    (A) The name, address, e-mail address, telephone number, and 
facsimile transmission number (if any) of such CAIR authorized account 
representative or alternate CAIR authorized account representative;
    (B) The name, address, e-mail address, telephone number, and, 
facsimile transmission number (if any) of each such natural person 
(referred to as an ``agent'');
    (C) For each such natural person, a list of the type or types of 
electronic submissions under paragraph (b)(5)(i) or (ii) of this 
section for which authority is delegated to him or her;
    (D) The following certification statement by such CAIR authorized 
account representative or alternate CAIR authorized account 
representative: ``I agree that any electronic submission to the 
Administrator that is by an agent identified in this notice of 
delegation and of a type listed for such agent in this notice of 
delegation and that is made when I am a CAIR authorized account 
representative or alternate CAIR authorized representative, as 
appropriate, and before this notice of delegation is superseded by 
another notice of delegation under 40 CFR 96.351(b)(5)(iv) shall be 
deemed to be an electronic submission by me.''; and
    (E) The following certification statement by such CAIR authorized 
account representative or alternate CAIR authorized account 
representative: ``Until this notice of delegation is superseded by 
another notice of delegation under 40 CFR

[[Page 25395]]

96.351(b)(5)(iv), I agree to maintain an e-mail account and to notify 
the Administrator immediately of any change in my e-mail address unless 
all delegation of authority by me under 40 CFR 96.351(b)(5) is 
terminated.''.
    (iv) A notice of delegation submitted under paragraph (b)(5)(iii) 
of this section shall be effective, with regard to the CAIR authorized 
account representative or alternate CAIR authorized account 
representative identified in such notice, upon receipt of such notice 
by the Administrator and until receipt by the Administrator of a 
superseding notice of delegation submitted by such CAIR authorized 
account representative or alternate CAIR authorized account 
representative, as appropriate. The superseding notice of delegation 
may replace any previously identified agent, add a new agent, or 
eliminate entirely any delegation of authority.
    (v) Any electronic submission covered by the certification in 
paragraph (b)(5)(iii)(D) of this section and made in accordance with a 
notice of delegation effective under paragraph (b)(5)(iv) of this 
section shall be deemed to be an electronic submission by the CAIR 
designated representative or alternate CAIR designated representative 
submitting such notice of delegation.
* * * * *

? 75. Section 96.353 is amended as follows:
? a. In paragraph (a), by revising the words ``By December 1, 2006,'' to 
read ``By September 30, 2007,'' and revising the words ``at a source'' 
to read ``at the source'';
? b. In paragraphs (b) and (d), by removing the words ``or as determined 
by the Administrator''; and
? c. By revising paragraph (c) to read as follows:

Sec.  96.353  Recordation of CAIR NOX Ozone Season allowance allocations.

* * * * *
    (c) By December 1, 2010 and December 1 of each year thereafter, the 
Administrator will record in the CAIR NO_X Ozone Season 
source's compliance account the CAIR NO_X Ozone Season 
allowances allocated for the CAIR NO_X Ozone Season units at 
the source, as submitted by the permitting authority in accordance with 
Sec.  96.341(b), for the control period in the sixth year after the 
year of the applicable deadline for recordation under this paragraph.
* * * * *

Sec.  96.354  [Amended]

? 76. Section 96.354 is amended as follows:
? a. In paragraph (a)(1), by revising the words ``prior year;'' to read 
``prior year; and'';
? b. In paragraph (a)(2), revising the words ``Sec.  96.360 by the 
allowance transfer deadline for the control period; and'' to read 
``Sec. Sec.  96.360 and 96.361 by the allowance transfer deadline for 
the control period.'';
? c. Removing paragraph (a)(3);
? d. In paragraph (c)(2)(ii), by revising the words ``to any unit ''to 
read ``to any entity'';
? e. In paragraph (e), by revising the words ``under paragraph (b) or (d) 
of this section'' to read ``under paragraphs (b) and (d) of this 
section and subpart IIII''; and
? f. In paragraph (f)(2), by revising the words ``of this section'' to 
read ``of this section, and record such deductions and transfers''.

Sec.  96.355  [Amended]

? 77. Section 96.355 is amended, in paragraph (b), by revising the words 
``Sec.  96.356, or subpart GGGG'' to read ``Sec.  96.356, or subpart 
GGGG or IIII''.

Sec.  96.357  [Amended]

? 78. Section 96.357 is amended, in paragraphs (a) and (b), by revising 
the words ``Sec.  96.360'' to read ``Sec. Sec.  96.360 and 96.361''.
? 79. Section 96.370 is amended as follows:
? a. In paragraph (b) introductory text, by revising the words ``The 
owner'' to read ``Except as provided in paragraph (e) of this section, 
the owner'';
? b. In paragraph (b)(2)(ii), by removing the words ``, if the compliance 
date under paragraph (b)(2)(i) is before May 1, 2008'';
? c. In paragraph (b)(3) introductory text, by revising the words 
``commences operation'' to read ``commences commercial operation'';
? d. In paragraph (b)(7), by revising the words ``paragraphs (b)(1), (2), 
and (3) of this section and solely for purposes of Sec.  96.206(c)(2), 
for the owner'' to read ``paragraphs (b)(1), (2), and (3) of this 
section, for the owner'' and by revising the words ``CAIR 
NO_X Ozone Season opt-in unit'' to read ``CAIR NO_X 
Ozone Season opt-in unit under subpart IIII of this part'';
? e. In paragraph (c)(1), by removing the paragraph designation ``(1)'' 
and by revising the words ``Except as provided in paragraph (c)(2) of 
this section, the owner'' to read ``The owner'';
? f. By removing paragraph (c)(2);
? g. In paragraph (d)(3), by revising the words ``the atmosphere'' to 
read ``the atmosphere or heat input''; and
? h. By adding a new paragraph (e) to read as follows:

Sec.  96.370  General Requirements.

* * * * *
    (e) Long-term cold storage. The owner or operator of a CAIR 
NO_X Ozone Season unit is subject to the applicable provisions of 
part 75 of this chapter concerning units in long-term cold storage.

Sec.  96.371   [Amended]

? 80. Section 96.371 is amended, in paragraph (c), by revising the words 
``Sec.  75.12, Sec.  75.17, or subpart H of part 75'' to read ``Sec.  
75.12 or Sec.  75.17''.

 Sec.  96.373  [Amended]

? 81. Section 96.373 is amended by removing the words ``, except that if 
the unit is not subject to an Acid Rain emissions limitation, the 
notification is only required to be sent to the permitting authority''.

? 82. Section 96.374 is amended as follows:
? a. In paragraph (d)(1)(i), by revising the words ``2008; or'' to read 
``2008;'';
? b. In paragraph (d)(1)(ii), by revising the words ``2008.'' to read 
``2008;'' and by revising the words ``fourth quarter of 2007'' to read 
``fourth quarter of 2007 or the first quarter of 2008'';
? c. In paragraph (d)(2)(ii)(B), by revising the words ``such date.'' to 
read ``such date;''; and
? d. By adding new paragraphs (d)(1)(iii) and (iv) and (d)(2)(ii)(C) and (D);
? e. By renumbering the second paragraph (d)(2) and the second paragraph 
(d)(3) as paragraphs (d)(3) and (d)(4) respectively and, in paragraph 
(d)(4), by revising the words ``or CAIR SO₂ Trading 
Program,'' to read ``, CAIR SO₂ Trading Program, or Hg 
Budget Trading Program,'' and by revising the words ``subparts F through 
H'' to read ``subparts F through I'' and revising to read as follows:

 Sec.  96.374  Recordkeeping and reporting.

* * * * *
    (d) * * *
    (1) * * *
    (iii) Notwithstanding paragraphs (d)(1)(i) and (ii) of this 
section, for a unit for which a CAIR opt-in permit application is 
submitted and not withdrawn and a CAIR opt-in permit is not yet issued 
or denied under subpart IIII of this part, the calendar quarter 
corresponding to the date specified in Sec.  96.384(b); and
    (iv) Notwithstanding paragraphs (d)(1)(i) and (ii) of this section, 
for a CAIR NO_X Ozone Season opt-in unit under subpart IIII 
of this part, the calendar quarter corresponding to the date on which 
the CAIR NO_X Ozone Season opt-in unit enters the CAIR 
NO_X

[[Page 25396]]

Ozone Season Trading Program as provided in Sec.  96.384(g).
    (2) * * *
    (ii) * * *
    (C) Notwithstanding paragraphs (d)(2)(ii)(A) and (2)(ii)(B) of this 
section, for a unit for which a CAIR opt-in permit application is 
submitted and not withdrawn and a CAIR opt-in permit is not yet issued 
or denied under subpart IIII of this part, the calendar quarter 
corresponding to the date specified in Sec.  96.384(b); and
    (D) Notwithstanding paragraphs (d)(2)(ii)(A) and (2)(ii)(B) of this 
section, for a CAIR NO_X Ozone Season opt-in unit under 
subpart IIII of this part, the calendar quarter corresponding to the 
date on which the CAIR NO_X Ozone Season opt-in unit enters 
the CAIR NO_X Ozone Season Trading Program as provided in 
Sec.  96.384(g).
* * * * *

 Sec.  96.376   [Removed]

? 83. Section 96.376 is removed.

? 84. Section 96.383 is amended as follows:

? a. By revising paragraph (a)(5); and
? b. In paragraph (b)(2), by revising the words ``CAIR opt-in unit'' to 
read ``CAIR NO_X Ozone Season opt-in unit'', by revising the 
words ``Annual Trading Program'' to read ``Ozone Season Trading 
Program'', by revising the words ``CAIR NO_X unit'' to read 
``CAIR NO_X Ozone Season unit'', and by revising the words 
``CAIR NO_X opt-in unit'' to read ``CAIR NO_X Ozone 
Season opt-in unit'' whenever they appear and revising to read as follows:

Sec.  96.383   Applying for CAIR opt-in permit.

    (a) * * *
    (5) A statement, in a format specified by the permitting authority, 
whether the CAIR designated representative requests that the unit be 
allocated CAIR NO_X Ozone Season allowances under Sec.  
96.388(b) or Sec.  96.388(c) (subject to the conditions in Sec. Sec.  
96.384(h) and 96.386(g)). If allocation under Sec.  96.388(c) is 
requested, this statement shall include a statement that the owners and 
operators of the unit intend to repower the unit before January 1, 2015 
and that they will provide, upon request, documentation demonstrating 
such intent.
* * * * *

Sec.  96.384  [Amended]

? 85. Section 96.384 is amended as follows:
? a. In paragraph (b), by revising the words ``heat input of the unit 
emissions rate and the heat input of the unit'' to read ``heat input of 
the unit'';
? b. In paragraph (c)(2), by revising the words ``for the control period 
under paragraph (b)(1)(ii) of this section and for the control periods 
under paragraph (b)(2) of this section'' to read ``for the control 
periods under paragraphs (b)(1)(ii) and (2) of this section'';
? c. In paragraph (d)(2), by revising the words ``for the control period 
under paragraph (b)(1)(ii) of this section and the control periods 
under paragraph (b)(2) of this section'' to read ``for the control 
periods under paragraphs (b)(1)(ii) and (2) of this section'';
? d. In paragraph (d)(3), by revising the words ``for such control 
period'' to read ``for such control periods'';
? e. In paragraph (h)(2), revising the words ``a CAIR opt-in unit'' to 
read ``a CAIR NO_X Ozone Season opt-in unit.''

? 86. Section 96.385 is amended as follows:
? a. In paragraph (a)(5), by revising the words ``under Sec.  96.388(c)'' 
to read ``Sec.  96.388(b) or Sec.  96.388(c)''; and
? b. By adding a new paragraph (c) to read as follows:

Sec.  96.385  CAIR opt-in permit contents.

* * * * *
    (c) The CAIR opt-in permit shall be included, in a format specified 
by the permitting authority, in the CAIR permit for the source where 
the CAIR NO_X Ozone Season opt-in unit is located and in a 
title V operating permit or other federally enforceable permit for the 
source.

Sec.  96.386  [Amended]

? 87. Section 96.386 is amended as follows:
? a. In paragraph (a), by revising the words ``CAIR opt-in unit'' to read 
``CAIR NO_X Ozone Season opt-on unit'';
? b. In paragraph (b)(2), by replacing the words ``equal in number to'' 
to read ``equal in amount to''; and
? c. In paragraphs (c)(2) and (g), by revising the words ``CAIR 
NO_X opt-in unit'' to read ``CAIR NO_X Ozone Season 
opt-in unit''.
? 88. Section 96.387 is amended as follows:
? a. In paragraph (b)(1), by revising the words ``under Sec.  96.323'' to 
read ``under Sec.  96.323, and remove the CAIR opt-in permit provisions,'';
? b. In paragraph (b)(2)(i), by revising the words ``equal in number to'' 
to read ``equal in amount to'';
? c. By revising paragraph (b)(3)(i);
? d. In paragraph (b)(3)(ii), by revising the words ``Notwithstanding 
paragraph (b)(3)(i) of this section if,'' to read ``If'', by revising 
the words ``May 1'' to read ``September 30'', and by revising the words 
``number of CAIR NO_X Ozone Season allowances'' to read 
``amount of CAIR NO_X Ozone Season allowances''; and
? e. In paragraph (b)(3)(ii)(A), by revising the words ``number of CAIR 
NO_X Ozone Season allowances'' to read ``amount of CAIR 
NO_X Ozone Season allowances'' and revising to read as follows:

Sec.  96.387   Change in regulatory status.

* * * * *
    (b) * * *
    (3)(i) For every control period after the date on which the CAIR 
NO_X Ozone Season opt-in unit becomes a CAIR NO_X 
Ozone Season unit under Sec.  96.304, the CAIR NO_X Ozone 
Season opt-in unit will be allocated CAIR NO_X Ozone Season 
allowances under Sec.  96.342.
* * * * *

Sec.  96.388   CAIR NO_X Ozone Season allowance allocations 
to CAIR NO_X Ozone Season opt-in units.

? 89. Section 96.388 is amended as follows:
? a. By revising the heading of the section as set forth above;
? b. In paragraph (a)(2), by revising the words ``of the control period 
in which'' to read ``of the control period after the control period in 
which'', by revising the words ``CAIR opt-in unit'' to read ``CAIR 
NO_X Ozone Season opt-in unit'', and by revising the words 
``CAIR NO_X opt-in unit'' to read ``CAIR NO_X Ozone 
Season opt-in unit'';
? c. In paragraph (c), by revising the words ``issues a CAIR opt-in 
permit'' to read ``issues a CAIR opt-in permit'' (based on a 
demonstration of the intent to repower stated under Sec.  
96.383(a)(5)); and
? d. In paragraph (d)(2), by revising the words ``CAIR opt-in unit'' to 
read ``CAIR NO_X Ozone Season opt-in unit.''

PART 97--FEDERAL NO_X BUDGET TRADING PROGRAM AND CAIR 
NO_X AND SO₂ TRADING PROGRAMS

? 1. The heading of part 97 is revised to read as set forth above.

? 2. The authority citation for part 97 is revised to read as follows:

    Authority: 42 U.S.C. 7401, 7403, 7410, 7426, 7601, and 7651, et seq.

? 3. Part 97 is amended by adding subparts AA through II, to read as 
follows:
Subpart AA--CAIR NO_X Annual Trading Program General Provisions
Sec.
97.101 Purpose.
97.102 Definitions.
97.103 Measurements, abbreviations, and acronyms.
97.104 Applicability.
97.105 Retired unit exemption.

[[Page 25397]]

97.106 Standard requirements.
97.107 Computation of time.
97.108 Appeal procedures.
Subpart BB--CAIR Designated Representative for CAIR NO_X Sources
97.110 Authorization and responsibilities of CAIR designated representative.
97.111 Alternate CAIR designated representative.
97.112 Changing CAIR designated representative and alternate CAIR 
designated representative; changes in owners and operators.
97.113 Certificate of representation.
97.114 Objections concerning CAIR designated representative.
97.115 Delegation by CAIR designated representative and alternate 
CAIR designated representative.
Subpart CC--Permits
97.120 General CAIR NO_X Annual Trading Program permit 
requirements.
97.121 Submission of CAIR permit applications.
97.122 Information requirements for CAIR permit applications.
97.123 CAIR permit contents and term.
97.124 CAIR permit revisions.
Subpart DD--[Reserved]
Subpart EE--CAIR NO_X Allowance Allocations
97.140 State trading budgets.
97.141 Timing requirements for CAIR NO_X allowance allocations.
97.142 CAIR NO_X allowance allocations.
97.143 Compliance supplement pool.
97.144 Alternative of allocation of CAIR NO_X allowances 
and compliance supplement pool by permitting authority.

Appendix A to Subpart EE of Part 97--States With Approved State 
Implementation Plan Revisions Concerning Allocations

Subpart FF-- CAIR NO_X Allowance Tracking System
97.150 [Reserved]
97.151 Establishment of accounts.
97.152 Responsibilities of CAIR authorized account representative.
97.153 Recordation of CAIR NO_X allowance allocations.
97.154 Compliance with CAIR NO_X emissions limitation.
97.155 Banking.
97.156 Account error.
97.157 Closing of general accounts.
Subpart GG--CAIR NO_X Allowance Transfers
97.160 Submission of CAIR NO_X allowance transfers.
97.161 EPA recordation.
97.162 Notification.
Subpart HH--Monitoring and Reporting
97.170 General requirements.
97.171 Initial certification and recertification procedures.
97.172 Out of control periods.
97.173 Notifications.
97.174 Recordkeeping and reporting.
97.175 Petitions.
Subpart II--CAIR NO_X Opt-in Units
97.180 Applicability.
97.181 General.
97.182 CAIR designated representative.
97.183 Applying for CAIR opt-in permit.
97.184 Opt-in process.
97.185 CAIR opt-in permit contents.
97.186 Withdrawal from CAIR NO_X Annual Trading Program.
97.187 Change in regulatory status.
97.188 CAIR NO_X allowance allocations to CAIR 
NO_X opt-in units.

Appendix A to Subpart II of Part 97--States With Approved State 
Implementation Plan Revisions Concerning CAIR NO_X Opt-in Units

Subpart AA--CAIR NO_X Annual Trading Program General Provisions

Sec.  97.101  Purpose.

    This subpart and subparts BB through II set forth the general 
provisions and the designated representative, permitting, allowance, 
monitoring, and opt-in provisions for the Federal Clean Air Interstate 
Rule (CAIR) NO_X Annual Trading Program, under section 110 of 
the Clean Air Act and Sec.  52.35 of this chapter, as a means of 
mitigating interstate transport of fine particulates and nitrogen oxides.

Sec.  97.102  Definitions.

    The terms used in this subpart and subparts BB through II shall 
have the meanings set forth in this section as follows:
    Account number means the identification number given by the 
Administrator to each CAIR NO_X Allowance Tracking System account.
    Acid Rain emissions limitation means a limitation on emissions of 
sulfur dioxide or nitrogen oxides under the Acid Rain Program.
    Acid Rain Program means a multi-state sulfur dioxide and nitrogen 
oxides air pollution control and emission reduction program established 
by the Administrator under title IV of the CAA and parts 72 through 78 
of this chapter.
    Actual weighted average NOX emission rate means, for a NO_X 
averaging plan under Sec.  76.11 of this chapter and for a year:
    (1) The sum of the products of the actual annual average 
NO_X emission rate and actual annual heat input (as 
determined in accordance with part 75 of this chapter) for all units in 
the NO_X averaging plan for the year; divided by
    (2) The sum of the actual annual heat input (as determined in 
accordance with part 75 of this chapter) for all units in the 
NO_X averaging plan for the year.
    Administrator means the Administrator of the United States 
Environmental Protection Agency or the Administrator's duly authorized 
representative.
    Allocate or allocation means, with regard to CAIR NO_X 
allowances, the determination by a permitting authority or the 
Administrator of the amount of such CAIR NO_X allowances to 
be initially credited to a CAIR NO_X unit, a new unit set-
aside, or other entity.
    Allowance transfer deadline means, for a control period, midnight 
of March 1 (if it is a business day), or midnight of the first business 
day thereafter (if March 1 is not a business day), immediately 
following the control period and is the deadline by which a CAIR 
NO_X allowance transfer must be submitted for recordation in 
a CAIR NO_X source's compliance account in order to be used 
to meet the source's CAIR NO_X emissions limitation for such 
control period in accordance with Sec.  97.154.
    Alternate CAIR designated representative means, for a CAIR 
NO_X source and each CAIR NO_X unit at the source, 
the natural person who is authorized by the owners and operators of the 
source and all such units at the source in accordance with subparts BB 
and II of this part, to act on behalf of the CAIR designated 
representative in matters pertaining to the CAIR NO_X Annual 
Trading Program. If the CAIR NO_X source is also a CAIR 
SO₂ source, then this natural person shall be the same 
person as the alternate CAIR designated representative under the CAIR 
SO₂ Trading Program. If the CAIR NO_X source is 
also a CAIR NO_X Ozone Season source, then this natural 
person shall be the same person as the alternate CAIR designated 
representative under the CAIR NO_X Ozone Season Trading 
Program. If the CAIR NO_X source is also subject to the Acid 
Rain Program, then this natural person shall be the same person as the 
alternate designated representative under the Acid Rain Program. If the 
CAIR NO_X source is also subject to the Hg Budget Trading 
Program, then this natural person shall be the same person as the 
alternate Hg designated representative under the Hg Budget Trading Program.
    Automated data acquisition and handling system or DAHS means that 
component of the continuous emission monitoring system, or other 
emissions monitoring system approved for use under subpart HH of this 
part, designed to interpret and convert individual output signals from 
pollutant concentration monitors, flow monitors, diluent gas monitors, 
and other component parts of the monitoring system to produce a 
continuous record of the measured parameters in the measurement units 
required by subpart HH of this part.

[[Page 25398]]

    Boiler means an enclosed fossil- or other-fuel-fired combustion 
device used to produce heat and to transfer heat to recirculating 
water, steam, or other medium.
    Bottoming-cycle cogeneration unit means a cogeneration unit in 
which the energy input to the unit is first used to produce useful 
thermal energy and at least some of the reject heat from the useful 
thermal energy application or process is then used for electricity 
production.
    CAIR authorized account representative means, with regard to a 
general account, a responsible natural person who is authorized, in 
accordance with subparts BB, FF, and II of this part, to transfer and 
otherwise dispose of CAIR NO_X allowances held in the general 
account and, with regard to a compliance account, the CAIR designated 
representative of the source.
    CAIR designated representative means, for a CAIR NO_X 
source and each CAIR NO_X unit at the source, the natural 
person who is authorized by the owners and operators of the source and 
all such units at the source, in accordance with subparts BB and II of 
this part, to represent and legally bind each owner and operator in 
matters pertaining to the CAIR NO_X Annual Trading Program. 
If the CAIR NO_X source is also a CAIR SO₂ source, 
then this natural person shall be the same person as the CAIR 
designated representative under the CAIR SO₂ Trading 
Program. If the CAIR NO_X source is also a CAIR 
NO_X Ozone Season source, then this natural person shall be 
the same person as the CAIR designated representative under the CAIR 
NO_X Ozone Season Trading Program. If the CAIR NO_X 
source is also subject to the Acid Rain Program, then this natural 
person shall be the same person as the designated representative under 
the Acid Rain Program. If the CAIR NO_X source is also 
subject to the Hg Budget Trading Program, then this natural person 
shall be the same person as the Hg designated representative under the 
Hg Budget Trading Program.
    CAIR NOX allowance means a limited authorization issued by a 
permitting authority or the Administrator under subpart EE of this part 
or Sec.  97.188, or under provisions of a State implementation plan 
that are approved under Sec.  51.123(o)(1) or (2) or (p) of this 
chapter, to emit one ton of nitrogen oxides during a control period of 
the specified calendar year for which the authorization is allocated or 
of any calendar year thereafter under the CAIR NO_X Program. 
An authorization to emit nitrogen oxides that is not issued under 
subpart EE of this part, Sec.  97.188, or provisions of a State 
implementation plan that are approved under Sec.  51.123(o)(1) or (2) 
or (p) of this chapter shall not be a CAIR NO_X allowance.
    CAIR NOX allowance deduction or deduct CAIR NOX allowances means 
the permanent withdrawal of CAIR NO_X allowances by the 
Administrator from a compliance account, e.g., in order to account for 
a specified number of tons of total nitrogen oxides emissions from all 
CAIR NO_X units at a CAIR NO_X source for a control 
period, determined in accordance with subpart HH of this part, or to 
account for excess emissions.
    CAIR NOX Allowance Tracking System means the system by which the 
Administrator records allocations, deductions, and transfers of CAIR 
NO_X allowances under the CAIR NO_X Annual Trading 
Program. Such allowances will be allocated, held, deducted, or 
transferred only as whole allowances.
    CAIR NOX Allowance Tracking System account means an account in the 
CAIR NO_X Allowance Tracking System established by the 
Administrator for purposes of recording the allocation, holding, 
transferring, or deducting of CAIR NO_X allowances.
    CAIR NOX allowances held or hold CAIR NOX allowances means the CAIR 
NO_X allowances recorded by the Administrator, or submitted 
to the Administrator for recordation, in accordance with subparts FF, 
GG, and II of this part, in a CAIR NO_X Allowance Tracking 
System account.
    CAIR NOX Annual Trading Program means a multi-state nitrogen oxides 
air pollution control and emission reduction program established by the 
Administrator in accordance with subparts AA through II of this part 
and Sec. Sec.  51.123(p) and 52.35 of this chapter or approved and 
administered by the Administrator in accordance with subparts AA 
through II of part 96 of this chapter and Sec.  51.123(o)(1) or (2) of 
this chapter, as a means of mitigating interstate transport of fine 
particulates and nitrogen oxides.
    CAIR NOX emissions limitation means, for a CAIR NO_X 
source, the tonnage equivalent, in NO_X emissions in a 
control period, of the CAIR NO_X allowances available for 
deduction for the source under Sec.  97.154(a) and (b) for the control 
period.
    CAIR NOX Ozone Season source means a source that is subject to the 
CAIR NO_X Ozone Season Trading Program.
    CAIR NOX Ozone Season Trading Program means a multi-state nitrogen 
oxides air pollution control and emission reduction program established 
by the Administrator in accordance with subparts AAAA through IIII of 
this part and Sec. Sec.  51.123(ee) and 52.35 of this chapter or 
approved and administered by the Administrator in accordance with under 
subparts AAAA through IIII and Sec.  51.123(aa)(1) or (2) (and 
(bb)(1)), (bb)(2), or (dd) of this chapter, as a means of mitigating 
interstate transport of ozone and nitrogen oxides.
    CAIR NOX source means a source that includes one or more CAIR 
NO_X units.
    CAIR NOX unit means a unit that is subject to the CAIR 
NO_X Annual Trading Program under Sec.  97.104 and, except 
for purposes of Sec.  97.105 and subpart EE of this part, a CAIR 
NO_X opt-in unit under subpart II of this part.
    CAIR permit means the legally binding and federally enforceable 
written document, or portion of such document, issued by the permitting 
authority under subpart CC of this part, including any permit 
revisions, specifying the CAIR NO_X Annual Trading Program 
requirements applicable to a CAIR NO_X source, to each CAIR 
NO_X unit at the source, and to the owners and operators and 
the CAIR designated representative of the source and each such unit.
    CAIR SO2 source means a source that is subject to the CAIR 
SO₂ Trading Program.
    CAIR SO2 Trading Program means a multi-state sulfur dioxide air 
pollution control and emission reduction program established by the 
Administrator in accordance with subparts AAA through III of this part 
and Sec. Sec.  51.124(r) and 52.36 of this chapter or approved and 
administered by the Administrator in accordance with subparts AAA 
through III of part 96 of this chapter and Sec.  51.124(o)(1) or (2) of 
this chapter, as a means of mitigating interstate transport of fine 
particulates and sulfur dioxide.
    Certifying official means:
    (1) For a corporation, a president, secretary, treasurer, or vice-
president or the corporation in charge of a principal business function 
or any other person who performs similar policy or decision-making 
functions for the corporation;
    (2) For a partnership or sole proprietorship, a general partner or 
the proprietor respectively; or
    (3) For a local government entity or State, Federal, or other 
public agency, a principal executive officer or ranking elected official.
    Clean Air Act or CAA means the Clean Air Act, 42 U.S.C. 7401, et seq.
    Coal means any solid fuel classified as anthracite, bituminous, 
subbituminous, or lignite.
    Coal-derived fuel means any fuel (whether in a solid, liquid, or 
gaseous state) produced by the mechanical, thermal, or chemical 
processing of coal.
    Coal-fired means:

[[Page 25399]]

    (1) Except for purposes of subpart EE of this part, combusting any 
amount of coal or coal-derived fuel, alone or in combination with any 
amount of any other fuel, during any year; or
    (2) For purposes of subpart EE of this part, combusting any amount 
of coal or coal-derived fuel, alone or in combination with any amount 
of any other fuel, during a specified year.
    Cogeneration unit means a stationary, fossil-fuel-fired boiler or 
stationary, fossil-fuel-fired combustion turbine:
    (1) Having equipment used to produce electricity and useful thermal 
energy for industrial, commercial, heating, or cooling purposes through 
the sequential use of energy; and
    (2) Producing during the 12-month period starting on the date the 
unit first produces electricity and during any calendar year after the 
calendar year in which the unit first produces electricity--
    (i) For a topping-cycle cogeneration unit, (A) Useful thermal 
energy not less than 5 percent of total energy output; and
    (B) Useful power that, when added to one-half of useful thermal 
energy produced, is not less then 42.5 percent of total energy input, 
if useful thermal energy produced is 15 percent or more of total energy 
output, or not less than 45 percent of total energy input, if useful 
thermal energy produced is less than 15 percent of total energy output.
    (ii) For a bottoming-cycle cogeneration unit, useful power not less 
than 45 percent of total energy input.
    Combustion turbine means:
    (1) An enclosed device comprising a compressor, a combustor, and a 
turbine and in which the flue gas resulting from the combustion of fuel 
in the combustor passes through the turbine, rotating the turbine; and
    (2) If the enclosed device under paragraph (1) of this definition 
is combined cycle, any associated duct burner, heat recovery steam 
generator, and steam turbine.
    Commence commercial operation means, with regard to a unit:
    (1) To have begun to produce steam, gas, or other heated medium 
used to generate electricity for sale or use, including test 
generation, except as provided in Sec.  97.105 and Sec.  97.184(h).
    (i) For a unit that is a CAIR NO_X unit under Sec.  
97.104 on the later of November 15, 1990 or the date the unit commences 
commercial operation as defined in paragraph (1) of this definition and 
that subsequently undergoes a physical change (other than replacement 
of the unit by a unit at the same source), such date shall remain the 
date of commencement of commercial operation of the unit, which shall 
continue to be treated as the same unit.
    (ii) For a unit that is a CAIR NO_X unit under Sec.  
97.104 on the later of November 15, 1990 or the date the unit commences 
commercial operation as defined in paragraph (1) of this definition and 
that is subsequently replaced by a unit at the same source (e.g., 
repowered), such date shall remain the replaced unit's date of 
commencement of commercial operation, and the replacement unit shall be 
treated as a separate unit with a separate date for commencement of 
commercial operation as defined in paragraph (1) or (2) of this 
definition as appropriate.
    (2) Notwithstanding paragraph (1) of this definition and except as 
provided in Sec.  97.105, for a unit that is not a CAIR NO_X 
unit under Sec.  97.104 on the later of November 15, 1990 or the date 
the unit commences commercial operation as defined in paragraph (1) of 
this definition, the unit's date for commencement of commercial 
operation shall be the date on which the unit becomes a CAIR 
NO_X unit under Sec.  97.104.
    (i) For a unit with a date for commencement of commercial operation 
as defined in paragraph (2) of this definition and that subsequently 
undergoes a physical change (other than replacement of the unit by a 
unit at the same source), such date shall remain the date of 
commencement of commercial operation of the unit, which shall continue 
to be treated as the same unit.
    (ii) For a unit with a date for commencement of commercial 
operation as defined in paragraph (2) of this definition and that is 
subsequently replaced by a unit at the same source (e.g., repowered), 
such date shall remain the replaced unit's date of commencement of 
commercial operation, and the replacement unit shall be treated as a 
separate unit with a separate date for commencement of commercial operation 
as defined in paragraph (1) or (2) of this definition as appropriate.
    Commence operation means:
    (1) To have begun any mechanical, chemical, or electronic process, 
including, with regard to a unit, start-up of a unit's combustion 
chamber, except as provided in Sec.  97.184(h).
    (2) For a unit that undergoes a physical change (other than 
replacement of the unit by a unit at the same source) after the date 
the unit commences operation as defined in paragraph (1) of this 
definition, such date shall remain the date of commencement of 
operation of the unit, which shall continue to be treated as the same unit.
    (3) For a unit that is replaced by a unit at the same source (e.g., 
repowered) after the date the unit commences operation as defined in 
paragraph (1) of this definition, such date shall remain the replaced 
unit's date of commencement of operation, and the replacement unit 
shall be treated as a separate unit with a separate date for 
commencement of operation as defined in paragraph (1), (2), or (3) of 
this definition as appropriate, except as provided in Sec.  97.184(h).
    Common stack means a single flue through which emissions from 2 or 
more units are exhausted.
    Compliance account means a CAIR NO_X Allowance Tracking 
System account, established by the Administrator for a CAIR 
NO_X source under subpart FF or II of this part, in which any 
CAIR NO_X allowance allocations for the CAIR NO_X 
units at the source are initially recorded and in which are held any 
CAIR NO_X allowances available for use for a control period 
in order to meet the source's CAIR NO_X emissions limitation 
in accordance with Sec.  97.154.
    Continuous emission monitoring system or CEMS means the equipment 
required under subpart HH of this part to sample, analyze, measure, and 
provide, by means of readings recorded at least once every 15 minutes 
(using an automated data acquisition and handling system (DAHS)), a 
permanent record of nitrogen oxides emissions, stack gas volumetric 
flow rate, stack gas moisture content, and oxygen or carbon dioxide 
concentration (as applicable), in a manner consistent with part 75 of 
this chapter. The following systems are the principal types of 
continuous emission monitoring systems required under subpart HH of 
this part:
    (1) A flow monitoring system, consisting of a stack flow rate 
monitor and an automated data acquisition and handling system and 
providing a permanent, continuous record of stack gas volumetric flow 
rate, in standard cubic feet per hour (scfh);
    (2) A nitrogen oxides concentration monitoring system, consisting 
of a NO_X pollutant concentration monitor and an automated 
data acquisition and handling system and providing a permanent, 
continuous record of NO_X emissions, in parts per million (ppm);
    (3) A nitrogen oxides emission rate (or NO_X-diluent) 
monitoring system, consisting of a NO_X pollutant 
concentration monitor, a diluent gas (CO₂ or O₂) 
monitor, and an automated data acquisition and handling system and 
providing a permanent, continuous record of NO_X 
concentration, in parts per million (ppm), diluent gas

[[Page 25400]]

concentration, in percent CO₂ or O₂, and 
NO_X emission rate, in pounds per million British thermal 
units (lb/mmBtu);
    (4) A moisture monitoring system, as defined in Sec.  75.11(b)(2) 
of this chapter and providing a permanent, continuous record of the 
stack gas moisture content, in percent H₂O;
    (5) A carbon dioxide monitoring system, consisting of a 
CO₂ pollutant concentration monitor (or an oxygen monitor 
plus suitable mathematical equations from which the CO₂ 
concentration is derived) and an automated data acquisition and 
handling system and providing a permanent, continuous record of 
CO₂ emissions, in percent CO₂; and
    (6) An oxygen monitoring system, consisting of an O₂ 
concentration monitor and an automated data acquisition and handling 
system and providing a permanent, continuous record of O₂, 
in percent O₂.
    Control period means the period beginning January 1 of a calendar 
year, except as provided in Sec.  97.106(c)(2), and ending on December 
31 of the same year, inclusive.
    Emissions means air pollutants exhausted from a unit or source into 
the atmosphere, as measured, recorded, and reported to the 
Administrator by the CAIR designated representative and as determined 
by the Administrator in accordance with subpart HH of this part.
    Excess emissions means any ton of nitrogen oxides emitted by the 
CAIR NO_X units at a CAIR NO_X source during a 
control period that exceeds the CAIR NO_X emissions 
limitation for the source.
    Fossil fuel means natural gas, petroleum, coal, or any form of 
solid, liquid, or gaseous fuel derived from such material.
    Fossil-fuel-fired means, with regard to a unit, combusting any 
amount of fossil fuel in any calendar year.
    Fuel oil means any petroleum-based fuel (including diesel fuel or 
petroleum derivatives such as oil tar) and any recycled or blended 
petroleum products or petroleum by-products used as a fuel whether in a 
liquid, solid, or gaseous state.
    General account means a CAIR NO_X Allowance Tracking 
System account, established under subpart FF of this part, that is not 
a compliance account.
    Generator means a device that produces electricity.
    Gross electrical output means, with regard to a cogeneration unit, 
electricity made available for use, including any such electricity used 
in the power production process (which process includes, but is not 
limited to, any on-site processing or treatment of fuel combusted at 
the unit and any on-site emission controls).
    Heat input means, with regard to a specified period of time, the 
product (in mmBtu/time) of the gross calorific value of the fuel (in 
Btu/lb) divided by 1,000,000 Btu/mmBtu and multiplied by the fuel feed 
rate into a combustion device (in lb of fuel/time), as measured, 
recorded, and reported to the Administrator by the CAIR designated 
representative and determined by the Administrator in accordance with 
subpart HH of this part and excluding the heat derived from preheated 
combustion air, recirculated flue gases, or exhaust from other sources.
    Heat input rate means the amount of heat input (in mmBtu) divided 
by unit operating time (in hr) or, with regard to a specific fuel, the 
amount of heat input attributed to the fuel (in mmBtu) divided by the 
unit operating time (in hr) during which the unit combusts the fuel.
    Hg Budget Trading Program means a multi-state Hg air pollution 
control and emission reduction program approved and administered by the 
Administrator in accordance subpart HHHH of part 60 of this chapter and 
Sec.  60.24(h)(6), or established by the Administrator under section 
111 of the Clean Air Act, as a means of reducing national Hg emissions.
    Life-of-the-unit, firm power contractual arrangement means a unit 
participation power sales agreement under which a utility or industrial 
customer reserves, or is entitled to receive, a specified amount or 
percentage of nameplate capacity and associated energy generated by any 
specified unit and pays its proportional amount of such unit's total 
costs, pursuant to a contract:
    (1) For the life of the unit;
    (2) For a cumulative term of no less than 30 years, including 
contracts that permit an election for early termination; or
    (3) For a period no less than 25 years or 70 percent of the 
economic useful life of the unit determined as of the time the unit is 
built, with option rights to purchase or release some portion of the 
nameplate capacity and associated energy generated by the unit at the 
end of the period.
    Maximum design heat input means the maximum amount of fuel per hour 
(in Btu/hr) that a unit is capable of combusting on a steady state 
basis as of the initial installation of the unit as specified by the 
manufacturer of the unit.
    Monitoring system means any monitoring system that meets the 
requirements of subpart HH of this part, including a continuous 
emissions monitoring system, an alternative monitoring system, or an 
excepted monitoring system under part 75 of this chapter.
    Most stringent State or Federal NO_X emissions limitation 
means, with regard to a unit, the lowest NO_X emissions 
limitation (in terms of lb/mmBtu) that is applicable to the unit under 
State or Federal law, regardless of the averaging period to which the 
emissions limitation applies.
    Nameplate capacity means, starting from the initial installation of 
a generator, the maximum electrical generating output (in MWe) that the 
generator is capable of producing on a steady state basis and during 
continuous operation (when not restricted by seasonal or other 
deratings) as of such installation as specified by the manufacturer of 
the generator or, starting from the completion of any subsequent 
physical change in the generator resulting in an increase in the 
maximum electrical generating output (in MWe) that the generator is 
capable of producing on a steady state basis and during continuous 
operation (when not restricted by seasonal or other deratings), such 
increased maximum amount as of such completion as specified by the 
person conducting the physical change.
    Oil-fired means, for purposes of subpart EE of this part, 
combusting fuel oil for more than 15.0 percent of the annual heat input 
in a specified year and not qualifying as coal-fired.
    Operator means any person who operates, controls, or supervises a 
CAIR NO_X unit or a CAIR NO_X source and shall 
include, but not be limited to, any holding company, utility system, or 
plant manager of such a unit or source.
    Owner means any of the following persons:
    (1) With regard to a CAIR NO_X source or a CAIR 
NO_X unit at a source, respectively:
    (i) Any holder of any portion of the legal or equitable title in a 
CAIR NO_X unit at the source or the CAIR NO_X unit;
    (ii) Any holder of a leasehold interest in a CAIR NO_X 
unit at the source or the CAIR NO_X unit; or
    (iii) Any purchaser of power from a CAIR NO_X unit at the 
source or the CAIR NO_X unit under a life-of-the-unit, firm 
power contractual arrangement; provided that, unless expressly provided 
for in a leasehold agreement, owner shall not include a passive lessor, 
or a person who has an equitable interest through such lessor, whose 
rental payments are not based (either directly or indirectly) on the 
revenues or income from such CAIR NO_X unit; or

[[Page 25401]]

    (2) With regard to any general account, any person who has an 
ownership interest with respect to the CAIR NO_X allowances 
held in the general account and who is subject to the binding agreement 
for the CAIR authorized account representative to represent the 
person's ownership interest with respect to CAIR NO_X allowances.
    Permitting authority means the State air pollution control agency, 
local agency, other State agency, or other agency authorized by the 
Administrator to issue or revise permits to meet the requirements of 
the CAIR NO_X Annual Trading Program in accordance with 
subpart CC of this part or, if no such agency has been so authorized, 
the Administrator.
    Potential electrical output capacity means 33 percent of a unit's 
maximum design heat input, divided by 3,413 Btu/kWh, divided by 1,000 
kWh/MWh, and multiplied by 8,760 hr/yr.
    Receive or receipt of means, when referring to the permitting 
authority or the Administrator, to come into possession of a document, 
information, or correspondence (whether sent in hard copy or by 
authorized electronic transmission), as indicated in an official log, 
or by a notation made on the document, information, or correspondence, 
by the permitting authority or the Administrator in the regular course 
of business.
    Recordation, record, or recorded means, with regard to CAIR 
NO_X allowances, the movement of CAIR NO_X 
allowances by the Administrator into or between CAIR NO_X 
Allowance Tracking System accounts, for purposes of allocation, 
transfer, or deduction.
    Reference method means any direct test method of sampling and 
analyzing for an air pollutant as specified in Sec.  75.22 of this chapter.
    Replacement, replace, or replaced means, with regard to a unit, the 
demolishing of a unit, or the permanent shutdown and permanent 
disabling of a unit, and the construction of another unit (the 
replacement unit) to be used instead of the demolished or shutdown unit 
(the replaced unit).
    Repowered means, with regard to a unit, replacement of a coal-fired 
boiler with one of the following coal-fired technologies at the same 
source as the coal-fired boiler:
    (1) Atmospheric or pressurized fluidized bed combustion;
    (2) Integrated gasification combined cycle;
    (3) Magnetohydrodynamics;
    (4) Direct and indirect coal-fired turbines;
    (5) Integrated gasification fuel cells; or
    (6) As determined by the Administrator in consultation with the 
Secretary of Energy, a derivative of one or more of the technologies 
under paragraphs (1) through (5) of this definition and any other coal-
fired technology capable of controlling multiple combustion emissions 
simultaneously with improved boiler or generation efficiency and with 
significantly greater waste reduction relative to the performance of 
technology in widespread commercial use as of January 1, 2005.
    Sequential use of energy means:
    (1) For a topping-cycle cogeneration unit, the use of reject heat 
from electricity production in a useful thermal energy application or 
process; or
    (2) For a bottoming-cycle cogeneration unit, the use of reject heat 
from useful thermal energy application or process in electricity 
production.
    Serial number means, for a CAIR NO_X allowance, the 
unique identification number assigned to each CAIR NO_X 
allowance by the Administrator.
    Solid waste incineration unit means a stationary, fossil-fuel-fired 
boiler or stationary, fossil-fuel-fired combustion turbine that is a 
``solid waste incineration unit'' as defined in section 129(g)(1) of 
the Clean Air Act.
    Source means all buildings, structures, or installations located in 
one or more contiguous or adjacent properties under common control of 
the same person or persons. For purposes of section 502(c) of the Clean 
Air Act, a ``source,'' including a ``source'' with multiple units, 
shall be considered a single ``facility.''
    State means one of the States or the District of Columbia that is 
subject to the CAIR NO_X Annual Trading Program pursuant to 
Sec.  52.35 of this chapter.
    Submit or serve means to send or transmit a document, information, 
or correspondence to the person specified in accordance with the 
applicable regulation:
    (1) In person;
    (2) By United States Postal Service; or
    (3) By other means of dispatch or transmission and delivery. 
Compliance with any ``submission'' or ``service'' deadline shall be 
determined by the date of dispatch, transmission, or mailing and not 
the date of receipt.
    Title V operating permit means a permit issued under title V of the 
Clean Air Act and part 70 or part 71 of this chapter.
    Title V operating permit regulations means the regulations that the 
Administrator has approved or issued as meeting the requirements of 
title V of the Clean Air Act and part 70 or 71 of this chapter.
    Ton means 2,000 pounds. For the purpose of determining compliance 
with the CAIR NO_X emissions limitation, total tons of 
nitrogen oxides emissions for a control period shall be calculated as 
the sum of all recorded hourly emissions (or the mass equivalent of the 
recorded hourly emission rates) in accordance with subpart HH of this 
part, but with any remaining fraction of a ton equal to or greater than 
0.50 tons deemed to equal one ton and any remaining fraction of a ton 
less than 0.50 tons deemed to equal zero tons.
    Topping-cycle cogeneration unit means a cogeneration unit in which 
the energy input to the unit is first used to produce useful power, 
including electricity, and at least some of the reject heat from the 
electricity production is then used to provide useful thermal energy.
    Total energy input means, with regard to a cogeneration unit, total 
energy of all forms supplied to the cogeneration unit, excluding energy 
produced by the cogeneration unit itself.
    Total energy output means, with regard to a cogeneration unit, the 
sum of useful power and useful thermal energy produced by the 
cogeneration unit.
    Unit means a stationary, fossil-fuel-fired boiler or combustion 
turbine or other stationary, fossil-fuel-fired combustion device.
    Unit operating day means a calendar day in which a unit combusts 
any fuel.
    Unit operating hour or hour of unit operation means an hour in 
which a unit combusts any fuel.
    Useful power means, with regard to a cogeneration unit, electricity 
or mechanical energy made available for use, excluding any such energy 
used in the power production process (which process includes, but is 
not limited to, any on-site processing or treatment of fuel combusted 
at the unit and any on-site emission controls).
    Useful thermal energy means, with regard to a cogeneration unit, 
thermal energy that is:
    (1) Made available to an industrial or commercial process (not a 
power production process), excluding any heat contained in condensate 
return or makeup water;
    (2) Used in a heating application (e.g., space heating or domestic 
hot water heating); or
    (3) Used in a space cooling application (i.e., thermal energy used 
by an absorption chiller).
    Utility power distribution system means the portion of an 
electricity grid

[[Page 25402]]

owned or operated by a utility and dedicated to delivering electricity 
to customers.

Sec.  97.103  Measurements, abbreviations, and acronyms.

    Measurements, abbreviations, and acronyms used in this subpart and 
subparts BB through II are defined as follows:

Btu--British thermal unit
CO₂--carbon dioxide
H₂O--water
Hg--mercury
hr--hour
kW--kilowatt electrical
kWh--kilowatt hour
 lb--pound
mmBtu--million Btu
MWe--megawatt electrical
MWh--megawatt hour
NO_X--nitrogen oxides
O₂--oxygen
ppm--parts per million
scfh--standard cubic feet per hour
SO₂--sulfur dioxide
yr--year

Sec.  97.104  Applicability

    (a) Except as provided in paragraph (b) of this section:
    (1) The following units in a State shall be CAIR NO_X 
units, and any source that includes one or more such units shall be a 
CAIR NO_X source, subject to the requirements of this subpart 
and subparts BB through HH of this part: any stationary, fossil-fuel-
fired boiler or stationary, fossil-fuel-fired combustion turbine 
serving at any time, since the later of November 15, 1990 or the start-
up of the unit's combustion chamber, a generator with nameplate 
capacity of more than 25 MWe producing electricity for sale.
    (2) If a stationary boiler or stationary combustion turbine that, 
under paragraph (a)(1) of this section, is not a CAIR NO_X 
unit begins to combust fossil fuel or to serve a generator with 
nameplate capacity of more than 25 MWe producing electricity for sale, 
the unit shall become a CAIR NO_X unit as provided in 
paragraph (a)(1) of this section on the first date on which it both 
combusts fossil fuel and serves such generator.
    (b) The units in a State that meet the requirements set forth in 
paragraph (b)(1)(i), (b)(2)(i), or (b)(2)(ii) of this section shall not 
be CAIR NO_X units:
    (1)(i) Any unit that is a CAIR NO_X unit under paragraph 
(a)(1) or (2) of this section:
    (A) Qualifying as a cogeneration unit during the 12-month period 
starting on the date the unit first produces electricity and continuing 
to qualify as a cogeneration unit; and
    (B) Not serving at any time, since the later of November 15, 1990 
or the start-up of the unit's combustion chamber, a generator with 
nameplate capacity of more than 25 MWe supplying in any calendar year 
more than one-third of the unit's potential electric output capacity or 
219,000 MWh, whichever is greater, to any utility power distribution 
system for sale.
    (ii) If a unit qualifies as a cogeneration unit during the 12-month 
period starting on the date the unit first produces electricity and 
meets the requirements of paragraphs (b)(1)(i) of this section for at 
least one calendar year, but subsequently no longer meets all such 
requirements, the unit shall become a CAIR NO_X unit starting 
on the earlier of January 1 after the first calendar year during which 
the unit first no longer qualifies as a cogeneration unit or January 1 
after the first calendar year during which the unit no longer meets the 
requirements of paragraph (b)(1)(i)(B) of this section.
    (2)(i) Any unit that is a CAIR NO_X unit under paragraph 
(a)(1) or (2) of this section commencing operation before January 1, 1985:
    (A) Qualifying as a solid waste incineration unit; and
    (B) With an average annual fuel consumption of non-fossil fuel for 
1985-1987 exceeding 80 percent (on a Btu basis) and an average annual 
fuel consumption of non-fossil fuel for any 3 consecutive calendar 
years after 1990 exceeding 80 percent (on a Btu basis).
    (ii) Any unit that is a CAIR NO_X unit under paragraph 
(a)(1) or (2) of this section commencing operation on or after January 
1, 1985:
    (A) Qualifying as a solid waste incineration unit; and
    (B) With an average annual fuel consumption of non-fossil fuel for 
the first 3 calendar years of operation exceeding 80 percent (on a Btu 
basis) and an average annual fuel consumption of non-fossil fuel for 
any 3 consecutive calendar years after 1990 exceeding 80 percent (on a 
Btu basis).
    (iii) If a unit qualifies as a solid waste incineration unit and 
meets the requirements of paragraph (b)(2)(i) or (ii) of this section 
for at least 3 consecutive calendar years, but subsequently no longer 
meets all such requirements, the unit shall become a CAIR 
NO_X unit starting on the earlier of January 1 after the 
first calendar year during which the unit first no longer qualifies as 
a solid waste incineration unit or January 1 after the first 3 
consecutive calendar years after 1990 for which the unit has an average 
annual fuel consumption of fossil fuel of 20 percent or more.
    (c) A certifying official of an owner or operator of any unit may 
petition the Administrator at any time for a determination concerning 
the applicability, under paragraphs (a) and (b) of this section, of the 
CAIR NO_X Annual Trading Program to the unit.
    (1) Petition content. The petition shall be in writing and include 
the identification of the unit and the relevant facts about the unit. 
The petition and any other documents provided to the Administrator in 
connection with the petition shall include the following certification 
statement, signed by the certifying official: ``I am authorized to make 
this submission on behalf of the owners and operators of the unit for 
which the submission is made. I certify under penalty of law that I 
have personally examined, and am familiar with, the statements and 
information submitted in this document and all its attachments. Based 
on my inquiry of those individuals with primary responsibility for 
obtaining the information, I certify that the statements and 
information are to the best of my knowledge and belief true, accurate, 
and complete. I am aware that there are significant penalties for 
submitting false statements and information or omitting required 
statements and information, including the possibility of fine or 
imprisonment.''
    (2) Submission. The petition and any other documents provided in 
connection with the petition shall be submitted to the Director of the 
Clean Air Markets Division (or its successor), U.S. Environmental 
Protection Agency, who will act on the petition as the Administrator's 
duly authorized representative.
    (3) Response. The Administrator will issue a written response to 
the petition and may request supplemental information relevant to such 
petition. The Administrator's determination concerning the 
applicability, under paragraphs (a) and (b) of this section, of the 
CAIR NO_X Annual Trading Program to the unit shall be binding 
on the permitting authority unless the petition or other information or 
documents provided in connection with the petition are found to have 
contained significant, relevant errors or omissions.

Sec.  97.105  Retired unit exemption.

    (a)(1) Any CAIR NO_X unit that is permanently retired and 
is not a CAIR NO_X opt-in unit under subpart II of this part 
shall be exempt from the CAIR NO_X Annual Trading Program, 
except for the provisions of this section, Sec. Sec.  97.102, 97.103, 
97.104, 97.106(c)(4) through (7),

[[Page 25403]]

97.107, 97.108, and subparts BB and EE through GG of this part.
    (2) The exemption under paragraph (a)(1) of this section shall 
become effective the day on which the CAIR NO_X unit is 
permanently retired. Within 30 days of the unit's permanent retirement, 
the CAIR designated representative shall submit a statement to the 
permitting authority otherwise responsible for administering any CAIR 
permit for the unit and shall submit a copy of the statement to the 
Administrator. The statement shall state, in a format prescribed by the 
permitting authority, that the unit was permanently retired on a 
specific date and will comply with the requirements of paragraph (b) of 
this section.
    (3) After receipt of the statement under paragraph (a)(2) of this 
section, the permitting authority will amend any permit under subpart 
CC of this part covering the source at which the unit is located to add 
the provisions and requirements of the exemption under paragraphs 
(a)(1) and (b) of this section.
    (b) Special provisions. (1) A unit exempt under paragraph (a) of 
this section shall not emit any nitrogen oxides, starting on the date 
that the exemption takes effect.
    (2) The Administrator or the permitting authority will allocate 
CAIR NO_X allowances under subpart EE of this part to a unit 
exempt under paragraph (a) of this section.
    (3) For a period of 5 years from the date the records are created, 
the owners and operators of a unit exempt under paragraph (a) of this 
section shall retain, at the source that includes the unit, records 
demonstrating that the unit is permanently retired. The 5-year period 
for keeping records may be extended for cause, at any time before the 
end of the period, in writing by the permitting authority or the 
Administrator. The owners and operators bear the burden of proof that 
the unit is permanently retired.
    (4) The owners and operators and, to the extent applicable, the 
CAIR designated representative of a unit exempt under paragraph (a) of 
this section shall comply with the requirements of the CAIR 
NO_X Annual Trading Program concerning all periods for which 
the exemption is not in effect, even if such requirements arise, or 
must be complied with, after the exemption takes effect.
    (5) A unit exempt under paragraph (a) of this section and located 
at a source that is required, or but for this exemption would be 
required, to have a title V operating permit shall not resume operation 
unless the CAIR designated representative of the source submits a 
complete CAIR permit application under Sec.  97.122 for the unit not 
less than 18 months (or such lesser time provided by the permitting 
authority) before the later of January 1, 2009 or the date on which the 
unit resumes operation.
    (6) On the earlier of the following dates, a unit exempt under 
paragraph (a) of this section shall lose its exemption:
    (i) The date on which the CAIR designated representative submits a 
CAIR permit application for the unit under paragraph (b)(5) of this section;
    (ii) The date on which the CAIR designated representative is 
required under paragraph (b)(5) of this section to submit a CAIR permit 
application for the unit; or
    (iii) The date on which the unit resumes operation, if the CAIR 
designated representative is not required to submit a CAIR permit 
application for the unit.
    (7) For the purpose of applying monitoring, reporting, and 
recordkeeping requirements under subpart HH of this part, a unit that 
loses its exemption under paragraph (a) of this section shall be 
treated as a unit that commences commercial operation on the first date 
on which the unit resumes operation.

Sec.  97.106  Standard requirements.

    (a) Permit requirements. (1) The CAIR designated representative of 
each CAIR NO_X source required to have a title V operating 
permit and each CAIR NO_X unit required to have a title V 
operating permit at the source shall:
    (i) Submit to the permitting authority a complete CAIR permit 
application under Sec.  97.122 in accordance with the deadlines 
specified in Sec.  97.121; and
    (ii) Submit in a timely manner any supplemental information that 
the permitting authority determines is necessary in order to review a 
CAIR permit application and issue or deny a CAIR permit.
    (2) The owners and operators of each CAIR NO_X source 
required to have a title V operating permit and each CAIR 
NO_X unit required to have a title V operating permit at the 
source shall have a CAIR permit issued by the permitting authority 
under subpart CC of this part for the source and operate the source and 
the unit in compliance with such CAIR permit.
    (3) Except as provided in subpart II of this part, the owners and 
operators of a CAIR NO_X source that is not otherwise 
required to have a title V operating permit and each CAIR 
NO_X unit that is not otherwise required to have a title V 
operating permit are not required to submit a CAIR permit application, 
and to have a CAIR permit, under subpart CC of this part for such CAIR 
NO_X source and such CAIR NO_X unit.
    (b) Monitoring, reporting, and recordkeeping requirements. (1) The 
owners and operators, and the CAIR designated representative, of each 
CAIR NO_X source and each CAIR NO_X unit at the 
source shall comply with the monitoring, reporting, and recordkeeping 
requirements of subpart HH of this part.
    (2) The emissions measurements recorded and reported in accordance 
with subpart HH of this part shall be used to determine compliance by 
each CAIR NO_X source with the CAIR NO_X emissions 
limitation under paragraph (c) of this section.
    (c) Nitrogen oxides emission requirements. (1) As of the allowance 
transfer deadline for a control period, the owners and operators of 
each CAIR NO_X source and each CAIR NO_X unit at 
the source shall hold, in the source's compliance account, CAIR 
NO_X allowances available for compliance deductions for the 
control period under Sec.  97.154(a) in an amount not less than the 
tons of total nitrogen oxides emissions for the control period from all 
CAIR NO_X units at the source, as determined in accordance 
with subpart HH of this part.
    (2) A CAIR NO_X unit shall be subject to the requirements 
under paragraph (c)(1) of this section for the control period starting 
on the later of January 1, 2009 or the deadline for meeting the unit's 
monitor certification requirements under Sec.  97.170(b)(1), (2), or 
(5) and for each control period thereafter.
    (3) A CAIR NO_X allowance shall not be deducted, for 
compliance with the requirements under paragraph (c)(1) of this 
section, for a control period in a calendar year before the year for 
which the CAIR NO_X allowance was allocated.
    (4) CAIR NO_X allowances shall be held in, deducted from, 
or transferred into or among CAIR NO_X Allowance Tracking 
System accounts in accordance with subparts EE, FF, GG, and II of this 
part.
    (5) A CAIR NO_X allowance is a limited authorization to 
emit one ton of nitrogen oxides in accordance with the CAIR 
NO_X Annual Trading Program. No provision of the CAIR 
NO_X Annual Trading Program, the CAIR permit application, the 
CAIR permit, or an exemption under Sec.  97.105 and no provision of law 
shall be construed to limit the authority of the United States to 
terminate or limit such authorization.
    (6) A CAIR NO_X allowance does not constitute a property right.
    (7) Upon recordation by the Administrator under subpart EE, FF,

[[Page 25404]]

GG, or II of this part, every allocation, transfer, or deduction of a 
CAIR NO_X allowance to or from a CAIR NO_X source's 
compliance account is incorporated automatically in any CAIR permit of 
the source.
    (d) Excess emissions requirements. If a CAIR NO_X source 
emits nitrogen oxides during any control period in excess of the CAIR 
NO_X emissions limitation, then:
    (1) The owners and operators of the source and each CAIR 
NO_X unit at the source shall surrender the CAIR 
NO_X allowances required for deduction under Sec.  
97.154(d)(1) and pay any fine, penalty, or assessment or comply with 
any other remedy imposed, for the same violations, under the Clean Air 
Act or applicable State law; and
    (2) Each ton of such excess emissions and each day of such control 
period shall constitute a separate violation of this subpart, the Clean 
Air Act, and applicable State law.
    (e) Recordkeeping and reporting requirements. (1) Unless otherwise 
provided, the owners and operators of the CAIR NO_X source 
and each CAIR NO_X unit at the source shall keep on site at 
the source each of the following documents for a period of 5 years from 
the date the document is created. This period may be extended for 
cause, at any time before the end of 5 years, in writing by the 
permitting authority or the Administrator.
    (i) The certificate of representation under Sec.  97.113 for the 
CAIR designated representative for the source and each CAIR 
NO_X unit at the source and all documents that demonstrate 
the truth of the statements in the certificate of representation; 
provided that the certificate and documents shall be retained on site 
at the source beyond such 5-year period until such documents are 
superseded because of the submission of a new certificate of 
representation under Sec.  97.113 changing the CAIR designated 
representative.
    (ii) All emissions monitoring information, in accordance with 
subpart HH of this part, provided that to the extent that subpart HH of 
this part provides for a 3-year period for recordkeeping, the 3-year 
period shall apply.
    (iii) Copies of all reports, compliance certifications, and other 
submissions and all records made or required under the CAIR 
NO_X Annual Trading Program.
    (iv) Copies of all documents used to complete a CAIR permit 
application and any other submission under the CAIR NO_X 
Annual Trading Program or to demonstrate compliance with the 
requirements of the CAIR NO_X Annual Trading Program.
    (2) The CAIR designated representative of a CAIR NO_X 
source and each CAIR NO_X unit at the source shall submit the 
reports required under the CAIR NO_X Annual Trading Program, 
including those under subpart HH of this part.
    (f) Liability. (1) Each CAIR NO_X source and each CAIR 
NO_X unit shall meet the requirements of the CAIR 
NO_X Annual Trading Program.
    (2) Any provision of the CAIR NO_X Annual Trading Program 
that applies to a CAIR NO_X source or the CAIR designated 
representative of a CAIR NO_X source shall also apply to the 
owners and operators of such source and of the CAIR NO_X 
units at the source.
    (3) Any provision of the CAIR NO_X Annual Trading Program 
that applies to a CAIR NO_X unit or the CAIR designated 
representative of a CAIR NO_X unit shall also apply to the 
owners and operators of such unit.
    (g) Effect on other authorities. No provision of the CAIR 
NO_X Annual Trading Program, a CAIR permit application, a 
CAIR permit, or an exemption under Sec.  97.105 shall be construed as 
exempting or excluding the owners and operators, and the CAIR 
designated representative, of a CAIR NO_X source or CAIR 
NO_X unit from compliance with any other provision of the 
applicable, approved State implementation plan, a federally enforceable 
permit, or the Clean Air Act.

Sec.  97.107  Computation of time.

    (a) Unless otherwise stated, any time period scheduled, under the 
CAIR NO_X Annual Trading Program, to begin on the occurrence 
of an act or event shall begin on the day the act or event occurs.
    (b) Unless otherwise stated, any time period scheduled, under the 
CAIR NO_X Annual Trading Program, to begin before the 
occurrence of an act or event shall be computed so that the period ends 
the day before the act or event occurs.
    (c) Unless otherwise stated, if the final day of any time period, 
under the CAIR NO_X Annual Trading Program, falls on a 
weekend or a State or Federal holiday, the time period shall be 
extended to the next business day.

Sec.  97.108  Appeal procedures.

    The appeal procedures for decisions of the Administrator under the 
CAIR NO_X Annual Trading Program are set forth in part 78 of 
this chapter.

Subpart BB--CAIR Designated Representative for CAIR NO_X Sources

Sec.  97.110  Authorization and responsibilities of CAIR designated 
representative.

    (a) Except as provided under Sec.  97.111, each CAIR NO_X 
source, including all CAIR NO_X units at the source, shall 
have one and only one CAIR designated representative, with regard to 
all matters under the CAIR NO_X Annual Trading Program 
concerning the source or any CAIR NO_X unit at the source.
    (b) The CAIR designated representative of the CAIR NO_X 
source shall be selected by an agreement binding on the owners and 
operators of the source and all CAIR NO_X units at the source 
and shall act in accordance with the certification statement in Sec.  
97.113(a)(4)(iv).
    (c) Upon receipt by the Administrator of a complete certificate of 
representation under Sec.  97.113, the CAIR designated representative 
of the source shall represent and, by his or her representations, 
actions, inactions, or submissions, legally bind each owner and 
operator of the CAIR NO_X source represented and each CAIR 
NO_X unit at the source in all matters pertaining to the CAIR 
NO_X Annual Trading Program, notwithstanding any agreement 
between the CAIR designated representative and such owners and 
operators. The owners and operators shall be bound by any decision or 
order issued to the CAIR designated representative by the permitting 
authority, the Administrator, or a court regarding the source or unit.
    (d) No CAIR permit will be issued, no emissions data reports will 
be accepted, and no CAIR NO_X Allowance Tracking System 
account will be established for a CAIR NO_X unit at a source, 
until the Administrator has received a complete certificate of 
representation under Sec.  97.113 for a CAIR designated representative 
of the source and the CAIR NO_X units at the source.
    (e)(1) Each submission under the CAIR NO_X Annual Trading 
Program shall be submitted, signed, and certified by the CAIR 
designated representative for each CAIR NO_X source on behalf 
of which the submission is made. Each such submission shall include the 
following certification statement by the CAIR designated 
representative: ``I am authorized to make this submission on behalf of 
the owners and operators of the source or units for which the 
submission is made. I certify under penalty of law that I have 
personally examined, and am familiar with, the statements and 
information submitted in this document and all its attachments. Based 
on my inquiry of those individuals with primary

[[Page 25405]]

responsibility for obtaining the information, I certify that the 
statements and information are to the best of my knowledge and belief 
true, accurate, and complete. I am aware that there are significant 
penalties for submitting false statements and information or omitting 
required statements and information, including the possibility of fine 
or imprisonment.''
    (2) The permitting authority and the Administrator will accept or 
act on a submission made on behalf of owner or operators of a CAIR 
NO_X source or a CAIR NO_X unit only if the 
submission has been made, signed, and certified in accordance with 
paragraph (e)(1) of this section.

Sec.  97.111  Alternate CAIR designated representative.

    (a) A certificate of representation under Sec.  97.113 may 
designate one and only one alternate CAIR designated representative, 
who may act on behalf of the CAIR designated representative. The 
agreement by which the alternate CAIR designated representative is 
selected shall include a procedure for authorizing the alternate CAIR 
designated representative to act in lieu of the CAIR designated 
representative.
    (b) Upon receipt by the Administrator of a complete certificate of 
representation under Sec.  97.113, any representation, action, 
inaction, or submission by the alternate CAIR designated representative 
shall be deemed to be a representation, action, inaction, or submission 
by the CAIR designated representative.
    (c) Except in this section and Sec. Sec.  97.102, 97.110(a) and 
(d), 97.112, 97.113, 97.115, 97.151 and 97.182, whenever the term 
``CAIR designated representative'' is used in subparts AA through II of 
this part, the term shall be construed to include the CAIR designated 
representative or any alternate CAIR designated representative.

Sec.  97.112  Changing CAIR designated representative and alternate 
CAIR designated representative; changes in owners and operators.

    (a) Changing CAIR designated representative. The CAIR designated 
representative may be changed at any time upon receipt by the 
Administrator of a superseding complete certificate of representation 
under Sec.  97.113. Notwithstanding any such change, all 
representations, actions, inactions, and submissions by the previous 
CAIR designated representative before the time and date when the 
Administrator receives the superseding certificate of representation 
shall be binding on the new CAIR designated representative and the 
owners and operators of the CAIR NO_X source and the CAIR 
NO_X units at the source.
    (b) Changing alternate CAIR designated representative. The 
alternate CAIR designated representative may be changed at any time 
upon receipt by the Administrator of a superseding complete certificate 
of representation under Sec.  97.113. Notwithstanding any such change, 
all representations, actions, inactions, and submissions by the 
previous alternate CAIR designated representative before the time and 
date when the Administrator receives the superseding certificate of 
representation shall be binding on the new alternate CAIR designated 
representative and the owners and operators of the CAIR NO_X 
source and the CAIR NO_X units at the source.
    (c) Changes in owners and operators. (1) In the event an owner or 
operator of a CAIR NO_X source or a CAIR NO_X unit 
is not included in the list of owners and operators in the certificate 
of representation under Sec.  97.113, such owner or operator shall be 
deemed to be subject to and bound by the certificate of representation, 
the representations, actions, inactions, and submissions of the CAIR 
designated representative and any alternate CAIR designated 
representative of the source or unit, and the decisions and orders of 
the permitting authority, the Administrator, or a court, as if the 
owner or operator were included in such list.
    (2) Within 30 days following any change in the owners and operators 
of a CAIR NO_X source or a CAIR NO_X unit, 
including the addition of a new owner or operator, the CAIR designated 
representative or any alternate CAIR designated representative shall 
submit a revision to the certificate of representation under Sec.  
97.113 amending the list of owners and operators to include the change.

Sec.  97.113  Certificate of representation.

    (a) A complete certificate of representation for a CAIR designated 
representative or an alternate CAIR designated representative shall 
include the following elements in a format prescribed by the 
Administrator:
    (1) Identification of the CAIR NO_X source, and each CAIR 
NO_X unit at the source, for which the certificate of 
representation is submitted, including identification and nameplate 
capacity of each generator served by each such unit.
    (2) The name, address, e-mail address (if any), telephone number, 
and facsimile transmission number (if any) of the CAIR designated 
representative and any alternate CAIR designated representative.
    (3) A list of the owners and operators of the CAIR NO_X 
source and of each CAIR NO_X unit at the source.
    (4) The following certification statements by the CAIR designated 
representative and any alternate CAIR designated representative--
    (i) ``I certify that I was selected as the CAIR designated 
representative or alternate CAIR designated representative, as 
applicable, by an agreement binding on the owners and operators of the 
source and each CAIR NO_X unit at the source.''
    (ii) ``I certify that I have all the necessary authority to carry 
out my duties and responsibilities under the CAIR NO_X Annual 
Trading Program on behalf of the owners and operators of the source and 
of each CAIR NO_X unit at the source and that each such owner 
and operator shall be fully bound by my representations, actions, 
inactions, or submissions.''
    (iii) ``I certify that the owners and operators of the source and 
of each CAIR NO_X unit at the source shall be bound by any 
order issued to me by the Administrator, the permitting authority, or a 
court regarding the source or unit.''
    (iv) (Where there are multiple holders of a legal or equitable 
title to, or a leasehold interest in, a CAIR NO_X unit, or 
where a utility or industrial customer purchases power from a CAIR 
NO_X unit under a life-of-the-unit, firm power contractual 
arrangement, I certify that: I have given a written notice of my 
selection as the `CAIR designated representative' or `alternate CAIR 
designated representative', as applicable, and of the agreement by 
which I was selected to each owner and operator of the source and of 
each CAIR NO_X unit at the source; and CAIR NO_X 
allowances and proceeds of transactions involving CAIR NO_X 
allowances will be deemed to be held or distributed in proportion to 
each holder's legal, equitable, leasehold, or contractual reservation 
or entitlement, except that, if such multiple holders have expressly 
provided for a different distribution of CAIR NO_X allowances 
by contract, CAIR NO_X allowances and proceeds of 
transactions involving CAIR NO_X allowances will be deemed to 
be held or distributed in accordance with the contract.''
    (5) The signature of the CAIR designated representative and any 
alternate CAIR designated representative and the dates signed.
    (b) Unless otherwise required by the permitting authority or the 
Administrator, documents of agreement referred to in the certificate of

[[Page 25406]]

representation shall not be submitted to the permitting authority or 
the Administrator. Neither the permitting authority nor the 
Administrator shall be under any obligation to review or evaluate the 
sufficiency of such documents, if submitted.

Sec.  97.114  Objections concerning CAIR designated representative.

    (a) Once a complete certificate of representation under Sec.  
97.113 has been submitted and received, the permitting authority and 
the Administrator will rely on the certificate of representation unless 
and until a superseding complete certificate of representation under 
Sec.  97.113 is received by the Administrator.
    (b) Except as provided in Sec.  97.112(a) or (b), no objection or 
other communication submitted to the permitting authority or the 
Administrator concerning the authorization, or any representation, 
action, inaction, or submission, of the CAIR designated representative 
shall affect any representation, action, inaction, or submission of the 
CAIR designated representative or the finality of any decision or order 
by the permitting authority or the Administrator under the CAIR 
NO_X Annual Trading Program.
    (c) Neither the permitting authority nor the Administrator will 
adjudicate any private legal dispute concerning the authorization or 
any representation, action, inaction, or submission of any CAIR 
designated representative, including private legal disputes concerning 
the proceeds of CAIR NO_X allowance transfers.

Sec.  97.115  Delegation by CAIR designated representative and 
alternate CAIR designated representative.

    (a) A CAIR designated representative may delegate, to one or more 
natural persons, his or her authority to make an electronic submission 
to the Administrator provided for or required under this part.
    (b) An alternate CAIR designated representative may delegate, to 
one or more natural persons, his or her authority to make an electronic 
submission to the Administrator provided for or required under this part.
    (c) In order to delegate authority to make an electronic submission 
to the Administrator in accordance with paragraph (a) or (b) of this 
section, the CAIR designated representative or alternate CAIR 
designated representative, as appropriate, must submit to the 
Administrator a notice of delegation, in a format prescribed by the 
Administrator, that includes the following elements:
    (1) The name, address, e-mail address, telephone number, and 
facsimile transmission number (if any) of such CAIR designated 
representative or alternate CAIR designated representative;
    (2) The name, address, e-mail address, telephone number, and 
facsimile transmission number (if any) of each such natural person 
(referred to as an ``agent'');
    (3) For each such natural person, a list of the type or types of 
electronic submissions under paragraph (a) or (b) of this section for 
which authority is delegated to him or her; and
    (4) The following certification statements by such CAIR designated 
representative or alternate CAIR designated representative:
    (i) ``I agree that any electronic submission to the Administrator 
that is by an agent identified in this notice of delegation and of a 
type listed for such agent in this notice of delegation and that is 
made when I am a CAIR designated representative or alternate CAIR 
designated representative, as appropriate, and before this notice of 
delegation is superseded by another notice of delegation under 40 CFR 
97.115(d) shall be deemed to be an electronic submission by me.''
    (ii) ``Until this notice of delegation is superseded by another 
notice of delegation under 40 CFR 97.115(d), I agree to maintain an e-
mail account and to notify the Administrator immediately of any change 
in my e-mail address unless all delegation of authority by me under 40 
CFR 97.115 is terminated.''.
    (d) A notice of delegation submitted under paragraph (c) of this 
section shall be effective, with regard to the CAIR designated 
representative or alternate CAIR designated representative identified 
in such notice, upon receipt of such notice by the Administrator and 
until receipt by the Administrator of a superseding notice of 
delegation submitted by such CAIR designated representative or 
alternate CAIR designated representative, as appropriate. The 
superseding notice of delegation may replace any previously identified 
agent, add a new agent, or eliminate entirely any delegation of authority.
    (e) Any electronic submission covered by the certification in 
paragraph (c)(4)(i) of this section and made in accordance with a 
notice of delegation effective under paragraph (d) of this section 
shall be deemed to be an electronic submission by the CAIR designated 
representative or alternate CAIR designated representative submitting 
such notice of delegation.

Subpart CC--Permits

Sec.  97.120  General CAIR NO_X Annual Trading Program permit 
requirements.

    (a) For each CAIR NO_X source required to have a title V 
operating permit or required, under subpart II of this part, to have a 
title V operating permit or other federally enforceable permit, such 
permit shall include a CAIR permit administered by the permitting 
authority for the title V operating permit or the federally enforceable 
permit as applicable. The CAIR portion of the title V permit or other 
federally enforceable permit as applicable shall be administered in 
accordance with the permitting authority's title V operating permits 
regulations promulgated under part 70 or 71 of this chapter or the 
permitting authority's regulations for other federally enforceable 
permits as applicable, except as provided otherwise by Sec.  97.105, 
this subpart, and subpart II of this part.
    (b) Each CAIR permit shall contain, with regard to the CAIR 
NO_X source and the CAIR NO_X units at the source 
covered by the CAIR permit, all applicable CAIR NO_X Annual 
Trading Program, CAIR NO_X Ozone Season Trading Program, and 
CAIR SO₂ Trading Program requirements and shall be a 
complete and separable portion of the title V operating permit or other 
federally enforceable permit under paragraph (a) of this section.

Sec.  97.121  Submission of CAIR permit applications.

    (a) Duty to apply. The CAIR designated representative of any CAIR 
NO_X source required to have a title V operating permit shall 
submit to the permitting authority a complete CAIR permit application 
under Sec.  97.122 for the source covering each CAIR NO_X 
unit at the source at least 18 months (or such lesser time provided by 
the permitting authority) before the later of January 1, 2009 or the 
date on which the CAIR NO_X unit commences commercial 
operation, except as provided in Sec.  97.183(a).
    (b) Duty to reapply. For a CAIR NO_X source required to 
have a title V operating permit, the CAIR designated representative 
shall submit a complete CAIR permit application under Sec.  97.122 for 
the source covering each CAIR NO_X unit at the source to 
renew the CAIR permit in accordance with the permitting authority's 
title V operating permits regulations addressing permit renewal, except 
as provided in Sec.  97.183(b).

[[Page 25407]]

Sec.  97.122  Information requirements for CAIR permit applications.

    A complete CAIR permit application shall include the following 
elements concerning the CAIR NO_X source for which the 
application is submitted, in a format prescribed by the permitting 
authority:
    (a) Identification of the CAIR NO_X source;
    (b) Identification of each CAIR NO_X unit at the CAIR 
NO_X source; and
    (c) The standard requirements under Sec.  97.106.

Sec.  97.123  CAIR permit contents and term.

    (a) Each CAIR permit will contain, in a format prescribed by the 
permitting authority, all elements required for a complete CAIR permit 
application under Sec.  97.122.
    (b) Each CAIR permit is deemed to incorporate automatically the 
definitions of terms under Sec.  97.102 and, upon recordation by the 
Administrator under subpart EE, FF, GG, or II of this part, every 
allocation, transfer, or deduction of a CAIR NO_X allowance 
to or from the compliance account of the CAIR NO_X source 
covered by the permit.
    (c) The term of the CAIR permit will be set by the permitting 
authority, as necessary to facilitate coordination of the renewal of 
the CAIR permit with issuance, revision, or renewal of the CAIR 
NO_X source's title V operating permit or other federally 
enforceable permit as applicable.

Sec.  97.124  CAIR permit revisions.

    Except as provided in Sec.  97.123(b), the permitting authority 
will revise the CAIR permit, as necessary, in accordance with the 
permitting authority's title V operating permits regulations or the 
permitting authority's regulations for other federally enforceable 
permits as applicable addressing permit revisions.

Subpart DD--[Reserved]

Subpart EE--CAIR NOX Allowance Allocations

Sec.  97.140  State trading budgets.

    The State trading budgets for annual allocations of CAIR 
NO_X allowances for the control periods in 2009 through 2014 
and in 2015 and thereafter are respectively as follows:

------------------------------------------------------------------------
                                                           State trading
                                           State trading    budget for
                  State                     budget for       2015 and
                                             2009-2014      thereafter
                                              (tons)          (tons)
------------------------------------------------------------------------
Alabama.................................          69,020          57,517
Delaware................................           4,166           3,472
District of Columbia....................             144             120
Florida.................................          99,445          82,871
Georgia.................................          66,321          55,268
Illinois................................          76,230          63,525
Indiana.................................         108,935          90,779
Iowa....................................          32,692          27,243
Kentucky................................          83,205          69,337
Louisiana...............................          35,512          29,593
Maryland................................          27,724          23,104
Michigan................................          65,304          54,420
Minnesota...............................          31,443          26,203
Mississippi.............................          17,807          14,839
Missouri................................          59,871          49,892
New Jersey..............................          12,670          10,558
New York................................          45,617          38,014
North Carolina..........................          62,183          51,819
Ohio....................................         108,667          90,556
Pennsylvania............................          99,049          82,541
South Carolina..........................          32,662          27,219
Tennessee...............................          50,973          42,478
Texas...................................         181,014         150,845
Virginia................................          36,074          30,062
West Virginia...........................          74,220          61,850
Wisconsin...............................          40,759          33,966
                                         -------------------------------
    Total...............................       1,521,707       1,268,091
------------------------------------------------------------------------

Sec.  97.141  Timing requirements for CAIR NO_X allowance 
allocations.

    (a) The Administrator will determine by order the CAIR 
NO_X allowance allocations, in accordance with Sec.  
97.142(a) and (b), for the control periods in 2009, 2010, 2011, 2012, 
2013, and 2014.
    (b) By July 31, 2011 and July 31 of each year thereafter, the 
Administrator will determine by order the CAIR NO_X allowance 
allocations, in accordance with Sec.  97.142(a) and (b), for the 
control period in the fourth year after the year of the applicable 
deadline for determination under this paragraph.
    (c) By July 31, 2009 and July 31 of each year thereafter, the 
Administrator will determine by order the CAIR NO_X allowance 
allocations, in accordance with Sec.  97.142(a),(c), and (d), for the 
control period in the year of the applicable deadline for determination 
under this paragraph.
    (d) The Administrator will make available to the public each 
determination of CAIR NO_X allowances under paragraph (a), 
(b), or (c) of this section and will provide an opportunity for 
submission of objections to the determination. Objections shall be 
limited to addressing whether the determination is in accordance with 
Sec.  97.142. Based on any such objections, the Administrator will 
adjust each determination to the extent necessary to ensure that it is 
in accordance with Sec.  97.142.

[[Page 25408]]

Sec.  97.142  CAIR NO_X allowance allocations.

    (a)(1) The baseline heat input (in mmBtu) used with respect to CAIR 
NO_X allowance allocations under paragraph (b) of this 
section for each CAIR NO_X unit will be:
    (i) For units commencing operation before January 1, 2001 the 
average of the 3 highest amounts of the unit's adjusted control period 
heat input for 2000 through 2004, with the adjusted control period heat 
input for each year calculated as follows:
    (A) If the unit is coal-fired during the year, the unit's control 
period heat input for such year is multiplied by 100 percent;
    (B) If the unit is oil-fired during the year, the unit's control 
period heat input for such year is multiplied by 60 percent; and
    (C) If the unit is not subject to paragraph (a)(1)(i)(A) or (B) of 
this section, the unit's control period heat input for such year is 
multiplied by 40 percent.
    (ii) For units commencing operation on or after January 1, 2001 and 
operating each calendar year during a period of 5 or more consecutive 
calendar years, the average of the 3 highest amounts of the unit's 
total converted control period heat input over the first such 5 years.
    (2)(i) A unit's control period heat input, and a unit's status as 
coal-fired or oil-fired, for a calendar year under paragraph (a)(1)(i) 
of this section, and a unit's total tons of NO_X emissions 
during a calendar year under paragraph (c)(3) of this section, will be 
determined in accordance with part 75 of this chapter, to the extent 
the unit was otherwise subject to the requirements of part 75 of this 
chapter for the year, or will be based on the best available data 
reported to the Administrator for the unit (in a format prescribed by 
the Administrator), to the extent the unit was not otherwise subject to 
the requirements of part 75 of this chapter for the year.
    (ii) A unit's converted control period heat input for a calendar 
year specified under paragraph (a)(1)(ii) of this section equals:
    (A) Except as provided in paragraph (a)(2)(ii)(B) or (C) of this 
section, the control period gross electrical output of the generator or 
generators served by the unit multiplied by 7,900 Btu/kWh, if the unit 
is coal-fired for the year, or 6,675 Btu/kWh, if the unit is not coal-
fired for the year, and divided by 1,000,000 Btu/mmBtu, provided that 
if a generator is served by 2 or more units, then the gross electrical 
output of the generator will be attributed to each unit in proportion 
to the unit's share of the total control period heat input of such 
units for the year;
    (B) For a unit that is a boiler and has equipment used to produce 
electricity and useful thermal energy for industrial, commercial, 
heating, or cooling purposes through the sequential use of energy, the 
total heat energy (in Btu) of the steam produced by the boiler during 
the control period, divided by 0.8 and by 1,000,000 Btu/mmBtu; or
    (C) For a unit that is a combustion turbine and has equipment used 
to produce electricity and useful thermal energy for industrial, 
commercial, heating, or cooling purposes through the sequential use of 
energy, the control period gross electrical output of the enclosed 
device comprising the compressor, combustor, and turbine multiplied by 
3,413 Btu/kWh, plus the total heat energy (in Btu) of the steam 
produced by any associated heat recovery steam generator during the 
control period divided by 0.8, and with the sum divided by 1,000,000 
Btu/mmBtu.
    (iii) Gross electrical output and total heat energy under paragraph 
(a)(2)(ii) of this section will be determined based on the best 
available data reported to the Administrator for the unit (in a format 
prescribed by the Administrator).
    (3) The Administrator will determine what data are the best 
available data under paragraph (a)(2) of this section by weighing the 
likelihood that data are accurate and reliable and giving greater 
weight to data submitted to a governmental entity in compliance with 
legal requirements or substantiated by an independent entity.
    (b)(1) For each control period in 2009 and thereafter, the 
Administrator will allocate to all CAIR NO_X units in a State 
that have a baseline heat input (as determined under paragraph (a) of 
this section) a total amount of CAIR NO_X allowances equal to 
95 percent for a control period during 2009 through 2014, and 97 
percent for a control period during 2015 and thereafter, of the tons of 
NO_X emissions in the applicable State trading budget under 
Sec.  97.140 (except as provided in paragraphs (d) and (e) of this section).
    (2) The Administrator will allocate CAIR NO_X allowances 
to each CAIR NO_X unit under paragraph (b)(1) of this section 
in an amount determined by multiplying the total amount of CAIR 
NO_X allowances allocated under paragraph (b)(1) of this 
section by the ratio of the baseline heat input of such CAIR 
NO_X unit to the total amount of baseline heat input of all 
such CAIR NO_X units in the State and rounding to the nearest 
whole allowance as appropriate.
    (c) For each control period in 2009 and thereafter, the 
Administrator will allocate CAIR NO_X allowances to CAIR 
NO_X units in a State that are not allocated CAIR 
NO_X allowances under paragraph (b) of this section because 
the units do not yet have a baseline heat input under paragraph (a) of 
this section or because the units have a baseline heat input but all 
CAIR NO_X allowances available under paragraph (b) of this 
section for the control period are already allocated, in accordance 
with the following procedures:
    (1) The Administrator will establish a separate new unit set-aside 
for each control period. Each new unit set-aside will be allocated CAIR 
NO_X allowances equal to 5 percent for a control period in 
2009 through 2014, and 3 percent for a control period in 2015 and 
thereafter, of the amount of tons of NO_X emissions in the 
applicable State trading budget under Sec.  97.140.
    (2) The CAIR designated representative of such a CAIR 
NO_X unit may submit to the Administrator a request, in a 
format specified by the Administrator, to be allocated CAIR 
NO_X allowances, starting with the later of the control 
period in 2009 or the first control period after the control period in 
which the CAIR NO_X unit commences commercial operation and 
until the first control period for which the unit is allocated CAIR 
NO_X allowances under paragraph (b) of this section. A 
separate CAIR NO_X allowance allocation request for each 
control period for which CAIR NO_X allowances are sought must 
be submitted on or before May 1 of such control period and after the 
date on which the CAIR NO_X unit commences commercial operation.
    (3) In a CAIR NO_X allowance allocation request under 
paragraph (c)(2) of this section, the CAIR designated representative 
may request for a control period CAIR NO_X allowances in an 
amount not exceeding the CAIR NO_X unit's total tons of 
NO_X emissions during the calendar year immediately before 
such control period.
    (4) The Administrator will review each CAIR NO_X 
allowance allocation request under paragraph (c)(2) of this section and 
will allocate CAIR NO_X allowances for each control period 
pursuant to such request as follows:
    (i) The Administrator will accept an allowance allocation request 
only if the request meets, or is adjusted by the Administrator as 
necessary to meet, the requirements of paragraphs (c)(2) and (3) of 
this section.
    (ii) On or after May 1 of the control period, the Administrator 
will determine the sum of the CAIR NO_X allowances requested 
(as adjusted under

[[Page 25409]]

paragraph (c)(4)(i) of this section) in all allowance allocation 
requests accepted under paragraph (c)(4)(i) of this section for the 
control period.
    (iii) If the amount of CAIR NO_X allowances in the new 
unit set-aside for the control period is greater than or equal to the 
sum under paragraph (c)(4)(ii) of this section, then the Administrator 
will allocate the amount of CAIR NO_X allowances requested 
(as adjusted under paragraph (c)(4)(i) of this section) to each CAIR 
NO_X unit covered by an allowance allocation request accepted 
under paragraph (c)(4)(i) of this section.
    (iv) If the amount of CAIR NO_X allowances in the new 
unit set-aside for the control period is less than the sum under 
paragraph (c)(4)(ii) of this section, then the Administrator will 
allocate to each CAIR NO_X unit covered by an allowance 
allocation request accepted under paragraph (c)(4)(i) of this section 
the amount of the CAIR NO_X allowances requested (as adjusted 
under paragraph (c)(4)(i) of this section), multiplied by the amount of 
CAIR NO_X allowances in the new unit set-aside for the 
control period, divided by the sum determined under paragraph 
(c)(4)(ii) of this section, and rounded to the nearest whole allowance 
as appropriate.
    (v) The Administrator will notify each CAIR designated 
representative that submitted an allowance allocation request of the 
amount of CAIR NO_X allowances (if any) allocated for the 
control period to the CAIR NO_X unit covered by the request.
    (d) If, after completion of the procedures under paragraph (c)(4) 
of this section for a control period, any unallocated CAIR 
NO_X allowances remain in the new unit set-aside under 
paragraph (c) of this section for a State for the control period, the 
Administrator will allocate to each CAIR NO_X unit that was 
allocated CAIR NO_X allowances under paragraph (b) of this 
section in the State an amount of CAIR NO_X allowances equal 
to the total amount of such remaining unallocated CAIR NO_X 
allowances, multiplied by the unit's allocation under paragraph (b) of 
this section, divided by 95 percent for a control period during 2009 
through 2014, and 97 percent for a control period during 2015 and 
thereafter, of the amount of tons of NO_X emissions in the 
applicable State trading budget under Sec.  97.140, and rounded to the 
nearest whole allowance as appropriate.
    (e) If the Administrator determines that CAIR NO_X 
allowances were allocated under paragraphs (a) and (b) of this section, 
paragraphs (a) and (c) of this section, or paragraph (d) of this 
section for a control period and that the recipient of the allocation 
is not actually a CAIR NO_X unit under Sec.  97.104 in such 
control period, then the Administrator will notify the CAIR designated 
representative and will act in accordance with the following procedures:
    (1) Except as provided in paragraph (e)(2) or (3) of this section, 
the Administrator will not record such CAIR NO_X allowances 
under Sec.  97.153.
    (2) If the Administrator already recorded such CAIR NO_X 
allowances under Sec.  97.153 and if the Administrator makes such 
determination before making deductions for the source that includes 
such recipient under Sec.  97.154(b) for the control period, then the 
Administrator will deduct from the account in which such CAIR 
NO_X allowances were recorded under Sec.  97.153 an amount of 
CAIR NO_X allowances allocated for the same or a prior 
control period equal to the amount of such already recorded CAIR 
NO_X allowances. The CAIR designated representative shall 
ensure that there are sufficient CAIR NO_X allowances in such 
account for completion of the deduction.
    (3) If the Administrator already recorded such CAIR NO_X 
allowances under Sec.  97.153 and if the Administrator makes such 
determination after making deductions for the source that includes such 
recipient under Sec.  97.154(b) for the control period, then the 
Administrator will apply paragraph (e)(1) or (2) of this section, as 
appropriate, to any subsequent control period for which CAIR 
NO_X allowances were allocated to such recipient.
    (4) The Administrator will transfer the CAIR NO_X 
allowances that are not recorded, or that are deducted, in accordance 
with paragraphs (e)(1), (2), and (3) of this section to a new unit set-
aside for the State in which such recipient is located.

Sec.  97.143  Compliance supplement pool.

    (a) In addition to the CAIR NO_X allowances allocated 
under Sec.  97.142, the Administrator may allocate for the control 
period in 2009 up to the following amount of CAIR NO_X 
allowances to CAIR NO_X units in the respective State:

------------------------------------------------------------------------
                                                           Compliance
                         State                          supplement  pool
------------------------------------------------------------------------
Alabama...............................................            10,166
Delaware..............................................               843
District of Columbia..................................                 0
Florida...............................................             8,335
Georgia...............................................            12,397
Illinois..............................................            11,299
Indiana...............................................            20,155
Iowa..................................................             6,978
Kentucky..............................................            14,935
Louisiana.............................................             2,251
Maryland..............................................             4,670
Michigan..............................................             8,347
Minnesota.............................................             6,528
Mississippi...........................................             3,066
Missouri..............................................             9,044
New Jersey............................................               660
New York..............................................                 0
North Carolina........................................                 0
Ohio..................................................            25,037
Pennsylvania..........................................            16,009
South Carolina........................................             2,600
Tennessee.............................................             8,944
Texas.................................................               772
Virginia..............................................             5,134
West Virginia.........................................            16,929
Wisconsin.............................................             4,898
                                                       -----------------
    Total.............................................           199,997
------------------------------------------------------------------------

    (b) For any CAIR NO_X unit in a State, if the unit's 
average annual NO_X emission rate for 2007 or 2008 is less 
than 0.25 lb/mmBtu and, where such unit is included in a NO_X 
averaging plan under Sec.  76.11 of this chapter under the Acid Rain 
Program for such year, the unit's NO_X averaging plan has an 
actual weighted average NO_X emission rate for such year 
equal to or less than the actual weighted average NO_X 
emission rate for the year before such year and if the unit achieves 
NO_X emission reductions in 2007 and 2008, the CAIR 
designated representative of the unit may request early reduction 
credits, and allocation of CAIR NO_X allowances from the 
compliance supplement pool under paragraph (a) of this section for such 
early reduction credits, in accordance with the following:
    (1) The owners and operators of such CAIR NO_X unit shall 
monitor and report the NO_X emissions rate and the heat input 
of the unit in accordance with subpart HH of this part in each control 
period for which early reduction credit is requested.
    (2) The CAIR designated representative of such CAIR NO_X 
unit shall submit to the Administrator by May 1, 2009 a request, in a 
format specified by the Administrator, for allocation of an amount of 
CAIR NO_X allowances from the compliance supplement pool not 
exceeding the sum of the unit's heat input for the control period in 
2007 multiplied by the difference (if any greater than zero) between 
0.25 lb/mmBtu and the unit's NO_X emission rate for the 
control period in 2007 plus the unit's heat input for the control 
period in 2008 multiplied by the difference (if any greater than zero) 
between 0.25 lb/mmBtu and the unit's

[[Page 25410]]

NO_X emission rate for the control period in 2008, determined 
in accordance with subpart HH of this part and with the sum divided by 
2,000 lb/ton and rounded to the nearest whole number of tons as 
appropriate.
    (c) For any CAIR NO_X unit in a State whose compliance 
with CAIR NO_X emissions limitation for the control period in 
2009 would create an undue risk to the reliability of electricity 
supply during such control period, the CAIR designated representative 
of the unit may request the allocation of CAIR NO_X 
allowances from the compliance supplement pool under paragraph (a) of 
this section, in accordance with the following:
    (1) The CAIR designated representative of such CAIR NO_X 
unit shall submit to the Administrator by May 1, 2009 a request, in a 
format specified by the Administrator, for allocation of an amount of 
CAIR NO_X allowances from the compliance supplement pool not 
exceeding the minimum amount of CAIR NO_X allowances necessary to 
remove such undue risk to the reliability of electricity supply.
    (2) In the request under paragraph (c)(1) of this section, the CAIR 
designated representative of such CAIR NO_X unit shall 
demonstrate that, in the absence of allocation to the unit of the 
amount of CAIR NO_X allowances requested, the unit's 
compliance with CAIR NO_X emissions limitation for the 
control period in 2009 would create an undue risk to the reliability of 
electricity supply during such control period. This demonstration must 
include a showing that it would not be feasible for the owners and 
operators of the unit to:
    (i) Obtain a sufficient amount of electricity from other 
electricity generation facilities, during the installation of control 
technology at the unit for compliance with the CAIR NO_X 
emissions limitation, to prevent such undue risk; or
    (ii) Obtain under paragraphs (b) and (d) of this section, or 
otherwise obtain, a sufficient amount of CAIR NO_X allowances 
to prevent such undue risk.
    (d) The Administrator will review each request under paragraph (b) 
or (c) of this section submitted by May 1, 2009 and will allocate CAIR 
NO_X allowances for the control period in 2009 to CAIR 
NO_X units in a State and covered by such request as follows:
    (1) Upon receipt of each such request, the Administrator will make 
any necessary adjustments to the request to ensure that the amount of 
the CAIR NO_X allowances requested meets the requirements of 
paragraph (b) or (c) of this section.
    (2) If the State's compliance supplement pool under paragraph (a) 
of this section has an amount of CAIR NO_X allowances not 
less than the total amount of CAIR NO_X allowances in all 
such requests (as adjusted under paragraph (d)(1) of this section), the 
Administrator will allocate to each CAIR NO_X unit covered by 
such requests the amount of CAIR NO_X allowances requested 
(as adjusted under paragraph (d)(1) of this section).
    (3) If the State's compliance supplement pool under paragraph (a) 
of this section has a smaller amount of CAIR NO_X allowances 
than the total amount of CAIR NO_X allowances in all such 
requests (as adjusted under paragraph (d)(1) of this section), the 
Administrator will allocate CAIR NO_X allowances to each CAIR 
NO_X unit covered by such requests according to the following 
formula and rounding to the nearest whole allowance as appropriate:

Unit's allocation = Unit's adjusted allocation x (State's compliance 
supplement pool / Total adjusted allocations for all units)

Where:

``Unit's allocation'' is the amount of CAIR NO_X 
allowances allocated to the unit from the State's compliance 
supplement pool.
``Unit's adjusted allocation'' is the amount of CAIR NO_X 
allowances requested for the unit under paragraph (b) or (c) of this 
section, as adjusted under paragraph (d)(1) of this section.
``State's compliance supplement pool'' is the amount of CAIR 
NO_X allowances in the State's compliance supplement pool.
``Total adjusted allocations for all units'' is the sum of the 
amounts of allocations requested for all units under paragraph (b) 
or (c) of this section, as adjusted under paragraph (d)(1) of this section.

    (4) By July 31, 2009, the Administrator will determine by order the 
allocations under paragraph (d)(2) or (3) of this section. The 
Administrator will make available to the public each determination of 
CAIR NO_X allowances under such paragraph and will provide an 
opportunity for submission of objections to the determination. 
Objections shall be limited to addressing whether the determination is 
in accordance with paragraph (b) or (c) of this section and paragraph 
(d)(2) or (3) of this section, as appropriate. Based on any such 
objections, the Administrator will adjust each determination to the 
extent necessary to ensure that it is in accordance with such paragraphs.
    (5) By January 1, 2010, the Administrator will record the 
allocations under paragraph (d)(4) of this section.

Sec.  97.144  Alternative of allocation of CAIR NO_X 
allowances and compliance supplement pool by permitting authority.

    (a) Notwithstanding Sec. Sec.  97.141, 97.142, and 97.153 if a 
State submits, and the Administrator approves, a State implementation 
plan revision in accordance with Sec.  51.123(p)(1) of this chapter 
providing for allocation of CAIR NO_X allowances by the 
permitting authority, then the permitting authority shall make such 
allocations in accordance with such approved State implementation plan 
revision, the Administrator will not make allocations under Sec. Sec.  
97.141 and 97.142 for the CAIR NO_X units in the State, and 
under Sec.  97.153, the Administrator will record the allocations made 
under such approved State implementation plan revision instead of 
allocations made under Sec. Sec.  97.141 and 97.142.
    (b) Notwithstanding Sec.  97.143, if a State submits, and the 
Administrator approves, a State implementation plan revision in 
accordance with Sec.  51.123(p)(2) of this chapter providing for 
allocation of the State's compliance supplement pool by the permitting 
authority, then the permitting authority shall make such allocations in 
accordance with such approved State implementation plan revision, the 
Administrator will not make allocations under Sec.  97.143(d)(4) for 
the CAIR NO_X units in the State, and under Sec.  
97.143(d)(5), the Administrator will record the allocations of the 
State's compliance supplement pool made under such approved State 
implementation plan revision instead of allocations made under Sec.  
97.143(d)(4).
    (c)(1) In implementing paragraph (a) of this section and Sec. Sec.  
97.141, 97.142, and 97.153, the Administrator will ensure that the 
total amount of CAIR NO_X allowances allocated, under such 
provisions and under a State's State implementation plan revision 
approved in accordance with Sec.  51.123(p)(1) of this chapter, for a 
control period for CAIR NO_X sources in the State or for 
other entities specified by the permitting authority will not exceed 
the State's State trading budget for the year of the control period.
    (2) In implementing paragraph (b) of this section and Sec.  97.143, 
the Administrator will ensure that the total amount of CAIR 
NO_X allowances allocated, under such provisions and under a 
State's State implementation plan revision approved in accordance with 
Sec.  51.123(p)(2), for CAIR NO_X sources in the State will 
not exceed the State(s compliance supplement pool.

[[Page 25411]]

Appendix A to Subpart EE of Part 97--States With Approved State 
Implementation Plan Revisions Concerning Allocations

    1. The following States have State Implementation Plan revisions 
under Sec.  51.123(p)(1) of this chapter approved by the 
Administrator and providing for allocation of CAIR NO_X 
allowances by the permitting authority under Sec.  97.144(a):
    [Reserved]
    2. The following States have State Implementation Plan revisions 
under Sec.  51.123(p)(2) of this chapter approved by the 
Administrator and providing for allocation of the Compliance 
Supplement Pool by the permitting authority under Sec.  97.144(b):
    [Reserved]

Subpart FF--CAIR NO_X Allowance Tracking System

Sec.  97.150  [Reserved]

Sec.  97.151  Establishment of accounts.

    (a) Compliance accounts. Except as provided in Sec.  97.184(e), 
upon receipt of a complete certificate of representation under Sec.  
97.113, the Administrator will establish a compliance account for the 
CAIR NO_X source for which the certificate of representation 
was submitted, unless the source already has a compliance account.
    (b) General accounts--(1) Application for general account. (i) Any 
person may apply to open a general account for the purpose of holding 
and transferring CAIR NO_X allowances. An application for a 
general account may designate one and only one CAIR authorized account 
representative and one and only one alternate CAIR authorized account 
representative who may act on behalf of the CAIR authorized account 
representative. The agreement by which the alternate CAIR authorized 
account representative is selected shall include a procedure for 
authorizing the alternate CAIR authorized account representative to act 
in lieu of the CAIR authorized account representative.
    (ii) A complete application for a general account shall be 
submitted to the Administrator and shall include the following elements 
in a format prescribed by the Administrator:
    (A) Name, mailing address, e-mail address (if any), telephone 
number, and facsimile transmission number (if any) of the CAIR 
authorized account representative and any alternate CAIR authorized 
account representative;
    (B) Organization name and type of organization, if applicable;
    (C) A list of all persons subject to a binding agreement for the 
CAIR authorized account representative and any alternate CAIR 
authorized account representative to represent their ownership interest 
with respect to the CAIR NO_X allowances held in the general 
account;
    (D) The following certification statement by the CAIR authorized 
account representative and any alternate CAIR authorized account 
representative: ``I certify that I was selected as the CAIR authorized 
account representative or the alternate CAIR authorized account 
representative, as applicable, by an agreement that is binding on all 
persons who have an ownership interest with respect to CAIR 
NO_X allowances held in the general account. I certify that I 
have all the necessary authority to carry out my duties and 
responsibilities under the CAIR NO_X Annual Trading Program 
on behalf of such persons and that each such person shall be fully 
bound by my representations, actions, inactions, or submissions and by 
any order or decision issued to me by the Administrator or a court 
regarding the general account.''
    (E) The signature of the CAIR authorized account representative and 
any alternate CAIR authorized account representative and the dates signed.
    (iii) Unless otherwise required by the permitting authority or the 
Administrator, documents of agreement referred to in the application 
for a general account shall not be submitted to the permitting 
authority or the Administrator. Neither the permitting authority nor 
the Administrator shall be under any obligation to review or evaluate 
the sufficiency of such documents, if submitted.
    (2) Authorization of CAIR authorized account representative and 
alternate CAIR authorized account representative. (i) Upon receipt by 
the Administrator of a complete application for a general account under 
paragraph (b)(1) of this section:
    (A) The Administrator will establish a general account for the 
person or persons for whom the application is submitted.
    (B) The CAIR authorized account representative and any alternate 
CAIR authorized account representative for the general account shall 
represent and, by his or her representations, actions, inactions, or 
submissions, legally bind each person who has an ownership interest 
with respect to CAIR NO_X allowances held in the general 
account in all matters pertaining to the CAIR NO_X Annual 
Trading Program, notwithstanding any agreement between the CAIR 
authorized account representative or any alternate CAIR authorized 
account representative and such person. Any such person shall be bound 
by any order or decision issued to the CAIR authorized account 
representative or any alternate CAIR authorized account representative 
by the Administrator or a court regarding the general account.
    (C) Any representation, action, inaction, or submission by any 
alternate CAIR authorized account representative shall be deemed to be 
a representation, action, inaction, or submission by the CAIR 
authorized account representative.
    (ii) Each submission concerning the general account shall be 
submitted, signed, and certified by the CAIR authorized account 
representative or any alternate CAIR authorized account representative 
for the persons having an ownership interest with respect to CAIR 
NO_X allowances held in the general account. Each such 
submission shall include the following certification statement by the 
CAIR authorized account representative or any alternate CAIR authorized 
account representative: ``I am authorized to make this submission on 
behalf of the persons having an ownership interest with respect to the 
CAIR NO_X allowances held in the general account. I certify 
under penalty of law that I have personally examined, and am familiar 
with, the statements and information submitted in this document and all 
its attachments. Based on my inquiry of those individuals with primary 
responsibility for obtaining the information, I certify that the 
statements and information are to the best of my knowledge and belief 
true, accurate, and complete. I am aware that there are significant 
penalties for submitting false statements and information or omitting 
required statements and information, including the possibility of fine 
or imprisonment.''
    (iii) The Administrator will accept or act on a submission 
concerning the general account only if the submission has been made, 
signed, and certified in accordance with paragraph (b)(2)(ii) of this 
section.
    (3) Changing CAIR authorized account representative and alternate 
CAIR authorized account representative; changes in persons with 
ownership interest. (i) The CAIR authorized account representative for 
a general account may be changed at any time upon receipt by the 
Administrator of a superseding complete application for a general 
account under paragraph (b)(1) of this section. Notwithstanding any 
such change, all representations, actions, inactions, and submissions 
by the previous CAIR authorized account representative before the time 
and date when the Administrator receives the superseding application 
for a general account shall be binding on the new CAIR authorized 
account representative

[[Page 25412]]

and the persons with an ownership interest with respect to the CAIR 
NO_X allowances in the general account.
    (ii) The alternate CAIR authorized account representative for a 
general account may be changed at any time upon receipt by the 
Administrator of a superseding complete application for a general 
account under paragraph (b)(1) of this section. Notwithstanding any 
such change, all representations, actions, inactions, and submissions 
by the previous alternate CAIR authorized account representative before 
the time and date when the Administrator receives the superseding 
application for a general account shall be binding on the new alternate 
CAIR authorized account representative and the persons with an 
ownership interest with respect to the CAIR NO_X allowances 
in the general account.
    (iii)(A) In the event a person having an ownership interest with 
respect to CAIR NO_X allowances in the general account is not 
included in the list of such persons in the application for a general 
account, such person shall be deemed to be subject to and bound by the 
application for a general account, the representation, actions, 
inactions, and submissions of the CAIR authorized account 
representative and any alternate CAIR authorized account representative 
of the account, and the decisions and orders of the Administrator or a 
court, as if the person were included in such list.
    (B) Within 30 days following any change in the persons having an 
ownership interest with respect to CAIR NO_X allowances in 
the general account, including the addition of a new person, the CAIR 
authorized account representative or any alternate CAIR authorized 
account representative shall submit a revision to the application for a 
general account amending the list of persons having an ownership 
interest with respect to the CAIR NO_X allowances in the 
general account to include the change.
    (4) Objections concerning CAIR authorized account representative 
and alternate CAIR authorized account representative. (i) Once a 
complete application for a general account under paragraph (b)(1) of 
this section has been submitted and received, the Administrator will 
rely on the application unless and until a superseding complete 
application for a general account under paragraph (b)(1) of this 
section is received by the Administrator.
    (ii) Except as provided in paragraph (b)(3)(i) or (ii) of this 
section, no objection or other communication submitted to the 
Administrator concerning the authorization, or any representation, 
action, inaction, or submission of the CAIR authorized account 
representative or any alternate CAIR authorized account representative 
for a general account shall affect any representation, action, 
inaction, or submission of the CAIR authorized account representative 
or any alternate CAIR authorized account representative or the finality 
of any decision or order by the Administrator under the CAIR 
NO_X Annual Trading Program.
    (iii) The Administrator will not adjudicate any private legal 
dispute concerning the authorization or any representation, action, 
inaction, or submission of the CAIR authorized account representative 
or any alternate CAIR authorized account representative for a general 
account, including private legal disputes concerning the proceeds of 
CAIR NO_X allowance transfers.
    (5) Delegation by CAIR authorized account representative and 
alternate CAIR authorized account representative. (i) A CAIR authorized 
account representative may delegate, to one or more natural persons, 
his or her authority to make an electronic submission to the Administrator 
provided for or required under subparts FF and GG of this part.
    (ii) An alternate CAIR authorized account representative may 
delegate, to one or more natural persons, his or her authority to make 
an electronic submission to the Administrator provided for or required 
under subparts FF and GG of this part.
    (iii) In order to delegate authority to make an electronic 
submission to the Administrator in accordance with paragraph (b)(5)(i) 
or (ii) of this section, the CAIR authorized account representative or 
alternate CAIR authorized account representative, as appropriate, must 
submit to the Administrator a notice of delegation, in a format 
prescribed by the Administrator, that includes the following elements:
    (A) The name, address, e-mail address, telephone number, and 
facsimile transmission number (if any) of such CAIR authorized account 
representative or alternate CAIR authorized account representative;
    (B) The name, address, e-mail address, telephone number, and 
facsimile transmission number (if any) of each such natural person 
(referred to as an ``agent'');
    (C) For each such natural person, a list of the type or types of 
electronic submissions under paragraph (b)(5)(i) or (ii) of this 
section for which authority is delegated to him or her;
    (D) The following certification statement by such CAIR authorized 
account representative or alternate CAIR authorized account 
representative: ``I agree that any electronic submission to the 
Administrator that is by an agent identified in this notice of 
delegation and of a type listed for such agent in this notice of 
delegation and that is made when I am a CAIR authorized account 
representative or alternate CAIR authorized representative, as 
appropriate, and before this notice of delegation is superseded by 
another notice of delegation under 40 CFR 97.151(b)(5)(iv) shall be 
deemed to be an electronic submission by me.''; and
    (E) The following certification statement by such CAIR authorized 
account representative or alternate CAIR authorized account 
representative: ``Until this notice of delegation is superseded by 
another notice of delegation under 40 CFR 97.151(b)(5)(iv), I agree to 
maintain an e-mail account and to notify the Administrator immediately 
of any change in my e-mail address unless all delegation of authority 
by me under 40 CFR 97.151(b)(5) is terminated.''.
    (iv) A notice of delegation submitted under paragraph (b)(5)(iii) 
of this section shall be effective, with regard to the CAIR authorized 
account representative or alternate CAIR authorized account 
representative identified in such notice, upon receipt of such notice 
by the Administrator and until receipt by the Administrator of a 
superseding notice of delegation submitted by such CAIR authorized 
account representative or alternate CAIR authorized account 
representative, as appropriate. The superseding notice of delegation 
may replace any previously identified agent, add a new agent, or 
eliminate entirely any delegation of authority.
    (v) Any electronic submission covered by the certification in 
paragraph (b)(5)(iii)(D) of this section and made in accordance with a 
notice of delegation effective under paragraph (b)(5)(iv) of this 
section shall be deemed to be an electronic submission by the CAIR 
designated representative or alternate CAIR designated representative 
submitting such notice of delegation.
    (c) Account identification. The Administrator will assign a unique 
identifying number to each account established under paragraph (a) or 
(b) of this section.

Sec.  97.152  Responsibilities of CAIR authorized account representative.

    Following the establishment of a CAIR NO_X Allowance 
Tracking System account, all submissions to the

[[Page 25413]]

Administrator pertaining to the account, including, but not limited to, 
submissions concerning the deduction or transfer of CAIR NO_X 
allowances in the account, shall be made only by the CAIR authorized 
account representative for the account.

Sec.  97.153  Recordation of CAIR NO_X allowance allocations.

    (a) By September 30, 2007, the Administrator will record in the 
CAIR NO_X source's compliance account the CAIR NO_X 
allowances allocated for the CAIR NO_X units at the source in 
accordance with Sec.  97.142(a) and (b) for the control period in 2009.
    (b) By September 30, 2008, the Administrator will record in the 
CAIR NO_X source's compliance account the CAIR NO_X 
allowances allocated for the CAIR NO_X units at the source in 
accordance with Sec.  97.142(a) and (b) for the control period in 2010.
    (c) By September 30, 2009, the Administrator will record in the 
CAIR NO_X source's compliance account the CAIR NO_X 
allowances allocated for the CAIR NO_X units at the source in 
accordance with Sec.  97.142(a) and (b) for the control periods in 
2011, 2012, and 2013.
    (d) By December 1, 2010 and December 1 of each year thereafter, the 
Administrator will record in the CAIR NO_X source's 
compliance account the CAIR NO_X allowances allocated for the 
CAIR NO_X units at the source in accordance with Sec.  
97.142(a) and (b) for the control period in the fourth year after the 
year of the applicable deadline for recordation under this paragraph.
    (e) By December 1, 2009 and December 1 of each year thereafter, the 
Administrator will record in the CAIR NO_X source's 
compliance account the CAIR NO_X allowances allocated for the 
CAIR NO_X units at the source in accordance with Sec.  
97.142(a) and (c) for the control period in the year of the applicable 
deadline for recordation under this paragraph.
    (f) Serial numbers for allocated CAIR NOX allowances. When 
recording the allocation of CAIR NO_X allowances for a CAIR 
NO_X unit in a compliance account, the Administrator will 
assign each CAIR NO_X allowance a unique identification 
number that will include digits identifying the year of the control 
period for which the CAIR NO_X allowance is allocated.

Sec.  97.154  Compliance with CAIR NO_X emissions limitation.

    (a) Allowance transfer deadline. The CAIR NO_X allowances 
are available to be deducted for compliance with a source's CAIR 
NO_X emissions limitation for a control period in a given 
calendar year only if the CAIR NO_X allowances:
    (1) Were allocated for the control period in the year or a prior 
year; and
    (2) Are held in the compliance account as of the allowance transfer 
deadline for the control period or are transferred into the compliance 
account by a CAIR NO_X allowance transfer correctly submitted 
for recordation under Sec. Sec.  97.160 and 97.161 by the allowance 
transfer deadline for the control period.
    (b) Deductions for compliance. Following the recordation, in 
accordance with Sec.  97.161, of CAIR NO_X allowance 
transfers submitted for recordation in a source's compliance account by 
the allowance transfer deadline for a control period, the Administrator 
will deduct from the compliance account CAIR NO_X allowances 
available under paragraph (a) of this section in order to determine 
whether the source meets the CAIR NO_X emissions limitation 
for the control period, as follows:
    (1) Until the amount of CAIR NO_X allowances deducted 
equals the number of tons of total nitrogen oxides emissions, 
determined in accordance with subpart HH of this part, from all CAIR 
NO_X units at the source for the control period; or
    (2) If there are insufficient CAIR NO_X allowances to 
complete the deductions in paragraph (b)(1) of this section, until no 
more CAIR NO_X allowances available under paragraph (a) of 
this section remain in the compliance account.
    (c)(1) Identification of CAIR NOX allowances by serial number. The 
CAIR authorized account representative for a source's compliance 
account may request that specific CAIR NO_X allowances, 
identified by serial number, in the compliance account be deducted for 
emissions or excess emissions for a control period in accordance with 
paragraph (b) or (d) of this section. Such request shall be submitted 
to the Administrator by the allowance transfer deadline for the control 
period and include, in a format prescribed by the Administrator, the 
identification of the CAIR NO_X source and the appropriate 
serial numbers.
    (2) First-in, first-out. The Administrator will deduct CAIR 
NO_X allowances under paragraph (b) or (d) of this section 
from the source's compliance account, in the absence of an 
identification or in the case of a partial identification of CAIR 
NO_X allowances by serial number under paragraph (c)(1) of 
this section, on a first-in, first-out (FIFO) accounting basis in the 
following order:
    (i) Any CAIR NO_X allowances that were allocated to the 
units at the source, in the order of recordation; and then
    (ii) Any CAIR NO_X allowances that were allocated to any 
entity and transferred and recorded in the compliance account pursuant 
to subpart GG of this part, in the order of recordation.
    (d) Deductions for excess emissions. (1) After making the 
deductions for compliance under paragraph (b) of this section for a 
control period in a calendar year in which the CAIR NO_X 
source has excess emissions, the Administrator will deduct from the 
source's compliance account an amount of CAIR NO_X 
allowances, allocated for the control period in the immediately 
following calendar year, equal to 3 times the number of tons of the 
source's excess emissions.
    (2) Any allowance deduction required under paragraph (d)(1) of this 
section shall not affect the liability of the owners and operators of 
the CAIR NO_X source or the CAIR NO_X units at the 
source for any fine, penalty, or assessment, or their obligation to 
comply with any other remedy, for the same violations, as ordered under 
the Clean Air Act or applicable State law.
    (e) Recordation of deductions. The Administrator will record in the 
appropriate compliance account all deductions from such an account 
under paragraphs (b) and (d) of this section and subpart II.
    (f) Administrator's action on submissions. (1) The Administrator 
may review and conduct independent audits concerning any submission 
under the CAIR NO_X Annual Trading Program and make 
appropriate adjustments of the information in the submissions.
    (2) The Administrator may deduct CAIR NO_X allowances 
from or transfer CAIR NO_X allowances to a source's 
compliance account based on the information in the submissions, as 
adjusted under paragraph (f)(1) of this section, and record such 
deductions and transfers.

Sec.  97.155  Banking.

    (a) CAIR NO_X allowances may be banked for future use or 
transfer in a compliance account or a general account in accordance 
with paragraph (b) of this section.
    (b) Any CAIR NO_X allowance that is held in a compliance 
account or a general account will remain in such account unless and 
until the CAIR NO_X allowance is deducted or transferred 
under Sec.  97.142, Sec.  97.154, Sec.  97.156, or subpart GG or II of 
this part.

[[Page 25414]]

Sec.  97.156  Account error.

    The Administrator may, at his or her sole discretion and on his or 
her own motion, correct any error in any CAIR NO_X Allowance 
Tracking System account. Within 10 business days of making such 
correction, the Administrator will notify the CAIR authorized account 
representative for the account.

Sec.  97.157  Closing of general accounts.

    (a) The CAIR authorized account representative of a general account 
may submit to the Administrator a request to close the account, which 
shall include a correctly submitted allowance transfer under Sec. Sec.  
97.160 and 97.161 for any CAIR NO_X allowances in the account 
to one or more other CAIR NO_X Allowance Tracking System accounts.
    (b) If a general account has no allowance transfers in or out of 
the account for a 12-month period or longer and does not contain any 
CAIR NO_X allowances, the Administrator may notify the CAIR 
authorized account representative for the account that the account will 
be closed following 20 business days after the notice is sent. The 
account will be closed after the 20-day period unless, before the end 
of the 20-day period, the Administrator receives a correctly submitted 
transfer of CAIR NO_X allowances into the account under 
Sec. Sec.  97.160 and 97.161 or a statement submitted by the CAIR 
authorized account representative demonstrating to the satisfaction of 
the Administrator good cause as to why the account should not be closed.

Subpart GG--CAIR NO_X Allowance Transfers

Sec.  97.160  Submission of CAIR NO_X allowance transfers.

    A CAIR authorized account representative seeking recordation of a 
CAIR NO_X allowance transfer shall submit the transfer to the 
Administrator. To be considered correctly submitted, the CAIR 
NO_X allowance transfer shall include the following elements, 
in a format specified by the Administrator:
    (a) The account numbers for both the transferor and transferee 
accounts;
    (b) The serial number of each CAIR NO_X allowance that is 
in the transferor account and is to be transferred; and
    (c) The name and signature of the CAIR authorized account 
representative of the transferor account and the date signed.

Sec.  97.161  EPA recordation.

    (a) Within 5 business days (except as provided in paragraph (b) of 
this section) of receiving a CAIR NO_X allowance transfer, 
the Administrator will record a CAIR NO_X allowance transfer 
by moving each CAIR NO_X allowance from the transferor account 
to the transferee account as specified by the request, provided that:
    (1) The transfer is correctly submitted under Sec.  97.160; and
    (2) The transferor account includes each CAIR NO_X 
allowance identified by serial number in the transfer.
    (b) A CAIR NO_X allowance transfer that is submitted for 
recordation after the allowance transfer deadline for a control period 
and that includes any CAIR NO_X allowances allocated for any 
control period before such allowance transfer deadline will not be 
recorded until after the Administrator completes the deductions under 
Sec.  97.154 for the control period immediately before such allowance 
transfer deadline.
    (c) Where a CAIR NO_X allowance transfer submitted for 
recordation fails to meet the requirements of paragraph (a) of this 
section, the Administrator will not record such transfer.

Sec.  97.162  Notification.

    (a) Notification of recordation. Within 5 business days of 
recordation of a CAIR NO_X allowance transfer under Sec.  
97.161, the Administrator will notify the CAIR authorized account 
representatives of both the transferor and transferee accounts.
    (b) Notification of non-recordation. Within 10 business days of 
receipt of a CAIR NO_X allowance transfer that fails to meet 
the requirements of Sec.  97.161(a), the Administrator will notify the 
CAIR authorized account representatives of both accounts subject to the 
transfer of:
    (1) A decision not to record the transfer, and
    (2) The reasons for such non-recordation.
    (c) Nothing in this section shall preclude the submission of a CAIR 
NO_X allowance transfer for recordation following 
notification of non-recordation.

Subpart HH--Monitoring and Reporting

Sec.  97.170  General requirements.

    The owners and operators, and to the extent applicable, the CAIR 
designated representative, of a CAIR NO_X unit, shall comply 
with the monitoring, recordkeeping, and reporting requirements as 
provided in this subpart and in subpart H of part 75 of this chapter. 
For purposes of complying with such requirements, the definitions in 
Sec.  97.102 and in Sec.  72.2 of this chapter shall apply, and the 
terms ``affected unit,'' ``designated representative,'' and 
``continuous emission monitoring system'' or ``CEMS'') in part 75 of 
this chapter shall be deemed to refer to the terms ``CAIR 
NO_X unit,`` ``CAIR designated representative,'' and 
``continuous emission monitoring system'' (or ``CEMS'') respectively, 
as defined in Sec.  97.102. The owner or operator of a unit that is not 
a CAIR NO_X unit but that is monitored under Sec.  
75.72(b)(2)(ii) of this chapter shall comply with the same monitoring, 
recordkeeping, and reporting requirements as a CAIR NO_X unit.
    (a) Requirements for installation, certification, and data 
accounting. The owner or operator of each CAIR NO_X unit shall:
    (1) Install all monitoring systems required under this subpart for 
monitoring NO_X mass emissions and individual unit heat input 
(including all systems required to monitor NO_X emission 
rate, NO_X concentration, stack gas moisture content, stack 
gas flow rate, CO₂ or O₂ concentration, and fuel 
flow rate, as applicable, in accordance with (Sec. Sec.  75.71 and 
75.72 of this chapter);
    (2) Successfully complete all certification tests required under 
Sec.  97.171 and meet all other requirements of this subpart and part 
75 of this chapter applicable to the monitoring systems under paragraph 
(a)(1) of this section; and
    (3) Record, report, and quality-assure the data from the monitoring 
systems under paragraph (a)(1) of this section.
    (b) Compliance deadlines. Except as provided in paragraph (e) of 
this section, the owner or operator shall meet the monitoring system 
certification and other requirements of paragraphs (a)(1) and (2) of 
this section on or before the following dates. The owner or operator 
shall record, report, and quality-assure the data from the monitoring 
systems under paragraph (a)(1) of this section on and after the 
following dates.
    (1) For the owner or operator of a CAIR NO_X unit that 
commences commercial operation before July 1, 2007, by January 1, 2008.
    (2) For the owner or operator of a CAIR NO_X unit that 
commences commercial operation on or after July 1, 2007, by the later 
of the following dates:
    (i) January 1, 2008; or
    (ii) 90 unit operating days or 180 calendar days, whichever occurs 
first, after the date on which the unit commences commercial operation.
    (3) For the owner or operator of a CAIR NO_X unit for 
which construction of a new stack or flue or installation of add-on 
NO_X emission controls is completed after the applicable deadline

[[Page 25415]]

under paragraph (b)(1), (2), (4), or (5) of this section, by 90 unit 
operating days or 180 calendar days, whichever occurs first, after the 
date on which emissions first exit to the atmosphere through the new 
stack or flue or add-on NO_X emissions controls.
    (4) Notwithstanding the dates in paragraphs (b)(1) and (2) of this 
section, for the owner or operator of a unit for which a CAIR opt-in 
permit application is submitted and not withdrawn and a CAIR opt-in 
permit is not yet issued or denied under subpart II of this part, by 
the date specified in Sec.  97.184(b).
    (5) Notwithstanding the dates in paragraphs (b)(1) and (2) of this 
section, for the owner or operator of a CAIR NO_X opt-in unit 
under subpart II of this part, by the date on which the CAIR 
NO_X opt-in unit enters the CAIR NO_X Annual 
Trading Program as provided in Sec.  97.184(g).
    (c) Reporting data. The owner or operator of a CAIR NO_X 
unit that does not meet the applicable compliance date set forth in 
paragraph (b) of this section for any monitoring system under paragraph 
(a)(1) of this section shall, for each such monitoring system, 
determine, record, and report maximum potential (or, as appropriate, 
minimum potential) values for NO_X concentration, 
NO_X emission rate, stack gas flow rate, stack gas moisture 
content, fuel flow rate, and any other parameters required to determine 
NO_X mass emissions and heat input in accordance with Sec.  
75.31(b)(2) or (c)(3) of this chapter, section 2.4 of appendix D to 
part 75 of this chapter, or section 2.5 of appendix E to part 75 of 
this chapter, as applicable.
    (d) Prohibitions. (1) No owner or operator of a CAIR NO_X 
unit shall use any alternative monitoring system, alternative reference 
method, or any other alternative to any requirement of this subpart 
without having obtained prior written approval in accordance with Sec.  
97.175.
    (2) No owner or operator of a CAIR NO_X unit shall 
operate the unit so as to discharge, or allow to be discharged, 
NO_X emissions to the atmosphere without accounting for all 
such emissions in accordance with the applicable provisions of this 
subpart and part 75 of this chapter.
    (3) No owner or operator of a CAIR NO_X unit shall 
disrupt the continuous emission monitoring system, any portion thereof, 
or any other approved emission monitoring method, and thereby avoid 
monitoring and recording NO_X mass emissions discharged into 
the atmosphere or heat input, except for periods of recertification or 
periods when calibration, quality assurance testing, or maintenance is 
performed in accordance with the applicable provisions of this subpart 
and part 75 of this chapter.
    (4) No owner or operator of a CAIR NO_X unit shall retire 
or permanently discontinue use of the continuous emission monitoring 
system, any component thereof, or any other approved monitoring system 
under this subpart, except under any one of the following circumstances:
    (i) During the period that the unit is covered by an exemption 
under Sec.  97.105 that is in effect;
    (ii) The owner or operator is monitoring emissions from the unit 
with another certified monitoring system approved, in accordance with 
the applicable provisions of this subpart and part 75 of this chapter, 
by the Administrator for use at that unit that provides emission data 
for the same pollutant or parameter as the retired or discontinued 
monitoring system; or
    (iii) The CAIR designated representative submits notification of 
the date of certification testing of a replacement monitoring system 
for the retired or discontinued monitoring system in accordance with 
Sec.  97.171(d)(3)(i).
    (e) Long-term cold storage. The owner or operator of a CAIR 
NO_X unit is subject to the applicable provisions of part 75 
of this chapter concerning units in long-term cold storage.

Sec.  97.171  Initial certification and recertification procedures.

    (a) The owner or operator of a CAIR NO_X unit shall be 
exempt from the initial certification requirements of this section for 
a monitoring system under Sec.  97.170(a)(1) if the following 
conditions are met:
    (1) The monitoring system has been previously certified in 
accordance with part 75 of this chapter; and
    (2) The applicable quality-assurance and quality-control 
requirements of Sec.  75.21 of this chapter and appendix B, appendix D, 
and appendix E to part 75 of this chapter are fully met for the 
certified monitoring system described in paragraph (a)(1) of this section.
    (b) The recertification provisions of this section shall apply to a 
monitoring system under Sec.  97.170(a)(1) exempt from initial 
certification requirements under paragraph (a) of this section.
    (c) If the Administrator has previously approved a petition under 
Sec.  75.17(a) or (b) of this chapter for apportioning the 
NO_X emission rate measured in a common stack or a petition 
under Sec.  75.66 of this chapter for an alternative to a requirement 
in Sec.  75.12 or Sec.  75.17 of this chapter, the CAIR designated 
representative shall resubmit the petition to the Administrator under 
Sec.  97.175 to determine whether the approval applies under the CAIR 
NO_X Annual Trading Program.
    (d) Except as provided in paragraph (a) of this section, the owner 
or operator of a CAIR NO_X unit shall comply with the 
following initial certification and recertification procedures for a 
continuous monitoring system (i.e., a continuous emission monitoring 
system and an excepted monitoring system under appendices D and E to 
part 75 of this chapter) under Sec.  97.170(a)(1). The owner or 
operator of a unit that qualifies to use the low mass emissions 
excepted monitoring methodology under Sec.  75.19 of this chapter or 
that qualifies to use an alternative monitoring system under subpart E 
of part 75 of this chapter shall comply with the procedures in 
paragraph (e) or (f) of this section respectively.
    (1) Requirements for initial certification. The owner or operator 
shall ensure that each continuous monitoring system under Sec.  
97.170(a)(1) (including the automated data acquisition and handling 
system) successfully completes all of the initial certification testing 
required under Sec.  75.20 of this chapter by the applicable deadline 
in Sec.  97.170(b). In addition, whenever the owner or operator 
installs a monitoring system to meet the requirements of this subpart 
in a location where no such monitoring system was previously installed, 
initial certification in accordance with Sec.  75.20 of this chapter is 
required.
    (2) Requirements for recertification. Whenever the owner or 
operator makes a replacement, modification, or change in any certified 
continuous emission monitoring system under Sec.  97.170(a)(1) that may 
significantly affect the ability of the system to accurately measure or 
record NO_X mass emissions or heat input rate or to meet the 
quality-assurance and quality-control requirements of Sec.  75.21 of 
this chapter or appendix B to part 75 of this chapter, the owner or 
operator shall recertify the monitoring system in accordance with Sec.  
75.20(b) of this chapter. Furthermore, whenever the owner or operator 
makes a replacement, modification, or change to the flue gas handling 
system or the unit's operation that may significantly change the stack 
flow or concentration profile, the owner or operator shall recertify 
each continuous emission monitoring system whose accuracy is 
potentially affected by the change, in accordance with Sec.  75.20(b) 
of this chapter. Examples of changes to a continuous emission 
monitoring system that require recertification include

[[Page 25416]]

replacement of the analyzer, complete replacement of an existing 
continuous emission monitoring system, or change in location or 
orientation of the sampling probe or site. Any fuel flowmeter system, 
and any excepted NO_X monitoring system under appendix E to 
part 75 of this chapter, under Sec.  97.170(a)(1) are subject to the 
recertification requirements in Sec.  75.20(g)(6) of this chapter.
    (3) Approval process for initial certification and recertification. 
Paragraphs (d)(3)(i) through (iv) of this section apply to both initial 
certification and recertification of a continuous monitoring system 
under Sec.  97.170(a)(1). For recertifications, replace the words 
``certification'' and ``initial certification'' with the word 
``recertification'', replace the word ``certified'' with the word 
``recertified'', and follow the procedures in Sec. Sec.  75.20(b)(5) 
and (g)(7) of this chapter in lieu of the procedures in paragraph 
(d)(3)(v) of this section.
    (i) Notification of certification. The CAIR designated 
representative shall submit to the appropriate EPA Regional Office and 
the Administrator written notice of the dates of certification testing, 
in accordance with Sec.  97.173.
    (ii) Certification application. The CAIR designated representative 
shall submit to the Administrator a certification application for each 
monitoring system. A complete certification application shall include 
the information specified in Sec.  75.63 of this chapter.
    (iii) Provisional certification date. The provisional certification 
date for a monitoring system shall be determined in accordance with 
Sec.  75.20(a)(3) of this chapter. A provisionally certified monitoring 
system may be used under the CAIR NO_X Annual Trading Program 
for a period not to exceed 120 days after receipt by the Administrator 
of the complete certification application for the monitoring system 
under paragraph (d)(3)(ii) of this section. Data measured and recorded 
by the provisionally certified monitoring system, in accordance with 
the requirements of part 75 of this chapter, will be considered valid 
quality-assured data (retroactive to the date and time of provisional 
certification), provided that the Administrator does not invalidate the 
provisional certification by issuing a notice of disapproval within 120 
days of the date of receipt of the complete certification application 
by the Administrator.
    (iv) Certification application approval process. The Administrator 
will issue a written notice of approval or disapproval of the 
certification application to the owner or operator within 120 days of 
receipt of the complete certification application under paragraph 
(d)(3)(ii) of this section. In the event the Administrator does not 
issue such a notice within such 120-day period, each monitoring system 
that meets the applicable performance requirements of part 75 of this 
chapter and is included in the certification application will be deemed 
certified for use under the CAIR NO_X Annual Trading Program.
    (A) Approval notice. If the certification application is complete 
and shows that each monitoring system meets the applicable performance 
requirements of part 75 of this chapter, then the Administrator will 
issue a written notice of approval of the certification application 
within 120 days of receipt.
    (B) Incomplete application notice. If the certification application 
is not complete, then the Administrator will issue a written notice of 
incompleteness that sets a reasonable date by which the CAIR designated 
representative must submit the additional information required to 
complete the certification application. If the CAIR designated 
representative does not comply with the notice of incompleteness by the 
specified date, then the Administrator may issue a notice of 
disapproval under paragraph (d)(3)(iv)(C) of this section. The 120-day 
review period shall not begin before receipt of a complete 
certification application.
    (C) Disapproval notice. If the certification application shows that 
any monitoring system does not meet the performance requirements of 
part 75 of this chapter or if the certification application is 
incomplete and the requirement for disapproval under paragraph 
(d)(3)(iv)(B) of this section is met, then the Administrator will issue 
a written notice of disapproval of the certification application. Upon 
issuance of such notice of disapproval, the provisional certification 
is invalidated by the Administrator and the data measured and recorded 
by each uncertified monitoring system shall not be considered valid 
quality-assured data beginning with the date and hour of provisional 
certification (as defined under Sec.  75.20(a)(3) of this chapter). The 
owner or operator shall follow the procedures for loss of certification 
in paragraph (d)(3)(v) of this section for each monitoring system that 
is disapproved for initial certification.
    (D) Audit decertification. The Administrator may issue a notice of 
disapproval of the certification status of a monitor in accordance with 
Sec.  97.172(b).
    (v) Procedures for loss of certification. If the Administrator 
issues a notice of disapproval of a certification application under 
paragraph (d)(3)(iv)(C) of this section or a notice of disapproval of 
certification status under paragraph (d)(3)(iv)(D) of this section, then:
    (A) The owner or operator shall substitute the following values, 
for each disapproved monitoring system, for each hour of unit operation 
during the period of invalid data specified under Sec.  
75.20(a)(4)(iii), Sec.  75.20(g)(7), or Sec.  75.21(e) of this chapter 
and continuing until the applicable date and hour specified under Sec.  
75.20(a)(5)(i) or (g)(7) of this chapter:
    (1) For a disapproved NO_X emission rate (i.e.,, 
NO_X-diluent) system, the maximum potential NO_X 
emission rate, as defined in Sec.  72.2 of this chapter.
    (2) For a disapproved NO_X pollutant concentration 
monitor and disapproved flow monitor, respectively, the maximum 
potential concentration of NO_X and the maximum potential 
flow rate, as defined in sections 2.1.2.1 and 2.1.4.1 of appendix A to 
part 75 of this chapter.
    (3) For a disapproved moisture monitoring system and disapproved 
diluent gas monitoring system, respectively, the minimum potential 
moisture percentage and either the maximum potential CO₂ 
concentration or the minimum potential O₂ concentration (as 
applicable), as defined in sections 2.1.5, 2.1.3.1, and 2.1.3.2 of 
appendix A to part 75 of this chapter.
    (4) For a disapproved fuel flowmeter system, the maximum potential 
fuel flow rate, as defined in section 2.4.2.1 of appendix D to part 75 
of this chapter.
    (5) For a disapproved excepted NO_X monitoring system 
under appendix E to part 75 of this chapter, the fuel-specific maximum 
potential NO_X emission rate, as defined in Sec.  72.2 of 
this chapter.
    (B) The CAIR designated representative shall submit a notification 
of certification retest dates and a new certification application in 
accordance with paragraphs (d)(3)(i) and (ii) of this section.
    (C) The owner or operator shall repeat all certification tests or 
other requirements that were failed by the monitoring system, as 
indicated in the Administrator's notice of disapproval, no later than 
30 unit operating days after the date of issuance of the notice of 
disapproval.
    (e) Initial certification and recertification procedures for units 
using the low mass emission excepted methodology under Sec.  75.19 of 
this chapter. The owner or operator of a unit qualified to use the low 
mass emissions

[[Page 25417]]

(LME) excepted methodology under Sec.  75.19 of this chapter shall meet 
the applicable certification and recertification requirements in 
Sec. Sec.  75.19(a)(2) and 75.20(h) of this chapter. If the owner or 
operator of such a unit elects to certify a fuel flowmeter system for 
heat input determination, the owner or operator shall also meet the 
certification and recertification requirements in Sec.  75.20(g) of 
this chapter.
    (f) Certification/recertification procedures for alternative 
monitoring systems. The CAIR designated representative of each unit for 
which the owner or operator intends to use an alternative monitoring 
system approved by the Administrator under subpart E of part 75 of this 
chapter shall comply with the applicable notification and application 
procedures of Sec.  75.20(f) of this chapter.

Sec.  97.172  Out of control periods.

    (a) Whenever any monitoring system fails to meet the quality-
assurance and quality-control requirements or data validation 
requirements of part 75 of this chapter, data shall be substituted 
using the applicable missing data procedures in subpart D or subpart H 
of, or appendix D or appendix E to, part 75 of this chapter.
    (b) Audit decertification. Whenever both an audit of a monitoring 
system and a review of the initial certification or recertification 
application reveal that any monitoring system should not have been 
certified or recertified because it did not meet a particular 
performance specification or other requirement under Sec.  97.171 or 
the applicable provisions of part 75 of this chapter, both at the time 
of the initial certification or recertification application submission 
and at the time of the audit, the Administrator will issue a notice of 
disapproval of the certification status of such monitoring system. For 
the purposes of this paragraph, an audit shall be either a field audit 
or an audit of any information submitted to the permitting authority or 
the Administrator. By issuing the notice of disapproval, the 
Administrator revokes prospectively the certification status of the 
monitoring system. The data measured and recorded by the monitoring 
system shall not be considered valid quality-assured data from the date 
of issuance of the notification of the revoked certification status 
until the date and time that the owner or operator completes 
subsequently approved initial certification or recertification tests 
for the monitoring system. The owner or operator shall follow the 
applicable initial certification or recertification procedures in Sec.  
97.171 for each disapproved monitoring system.

Sec.  97.173  Notifications.

    The CAIR designated representative for a CAIR NO_X unit 
shall submit written notice to the Administrator in accordance with 
Sec.  75.61 of this chapter.

Sec.  97.174  Recordkeeping and reporting.

    (a) General provisions. The CAIR designated representative shall 
comply with all recordkeeping and reporting requirements in this 
section, the applicable recordkeeping and reporting requirements under 
Sec.  75.73 of this chapter, and the requirements of Sec.  97.110(e)(1).
    (b) Monitoring plans. The owner or operator of a CAIR 
NO_X unit shall comply with requirements of Sec.  75.73(c) 
and (e) of this chapter and, for a unit for which a CAIR opt-in permit 
application is submitted and not withdrawn and a CAIR opt-in permit is 
not yet issued or denied under subpart II of this part, Sec. Sec.  
97.183 and 97.184(a).
    (c) Certification applications. The CAIR designated representative 
shall submit an application to the Administrator within 45 days after 
completing all initial certification or recertification tests required 
under Sec.  97.171, including the information required under Sec.  
75.63 of this chapter.
    (d) Quarterly reports. The CAIR designated representative shall 
submit quarterly reports, as follows:
    (1) The CAIR designated representative shall report the 
NO_X mass emissions data and heat input data for the CAIR 
NO_X unit, in an electronic quarterly report in a format 
prescribed by the Administrator, for each calendar quarter beginning with:
    (i) For a unit that commences commercial operation before July 1, 
2007, the calendar quarter covering January 1, 2008 through March 31, 2008;
    (ii) For a unit that commences commercial operation on or after 
July 1, 2007, the calendar quarter corresponding to the earlier of the 
date of provisional certification or the applicable deadline for 
initial certification under Sec.  97.170(b), unless that quarter is the 
third or fourth quarter of 2007, in which case reporting shall commence 
in the quarter covering January 1, 2008 through March 31, 2008;
    (iii) Notwithstanding paragraphs (d)(1)(i) and (ii) of this 
section, for a unit for which a CAIR opt-in permit application is 
submitted and not withdrawn and a CAIR opt-in permit is not yet issued 
or denied under subpart II of this part, the calendar quarter 
corresponding to the date specified in Sec.  97.184(b); and
    (iv) Notwithstanding paragraphs (d)(1)(i) and (ii) of this section, 
for a CAIR NO_X opt-in unit under subpart II of this part, 
the calendar quarter corresponding to the date on which the CAIR 
NO_X opt-in unit enters the CAIR NO_X Annual 
Trading Program as provided in Sec.  97.184(g).
    (2) The CAIR designated representative shall submit each quarterly 
report to the Administrator within 30 days following the end of the 
calendar quarter covered by the report. Quarterly reports shall be 
submitted in the manner specified in Sec.  75.73(f) of this chapter.
    (3) For CAIR NO_X units that are also subject to an Acid 
Rain emissions limitation or the CAIR NO_X Ozone Season 
Trading Program, CAIR SO₂ Trading Program, or Hg Budget 
Trading Program, quarterly reports shall include the applicable data 
and information required by subparts F through I of part 75 of this 
chapter as applicable, in addition to the NO_X mass emission 
data, heat input data, and other information required by this subpart.
    (e) Compliance certification. The CAIR designated representative 
shall submit to the Administrator a compliance certification (in a 
format prescribed by the Administrator) in support of each quarterly 
report based on reasonable inquiry of those persons with primary 
responsibility for ensuring that all of the unit's emissions are 
correctly and fully monitored. The certification shall state that:
    (1) The monitoring data submitted were recorded in accordance with 
the applicable requirements of this subpart and part 75 of this 
chapter, including the quality assurance procedures and specifications; 
and
    (2) For a unit with add-on NO_X emission controls and for 
all hours where NO_X data are substituted in accordance with 
Sec.  75.34(a)(1) of this chapter, the add-on emission controls were 
operating within the range of parameters listed in the quality 
assurance/quality control program under appendix B to part 75 of this 
chapter and the substitute data values do not systematically 
underestimate NO_X emissions.

Sec.  97.175  Petitions.

    The CAIR designated representative of a CAIR NO_X unit 
may submit a petition under Sec.  75.66 of this chapter to the 
Administrator requesting approval to apply an alternative to any 
requirement of this subpart. Application of an alternative to any 
requirement of this subpart is in accordance with this

[[Page 25418]]

subpart only to the extent that the petition is approved in writing by 
the Administrator, in consultation with the permitting authority.

Subpart II--CAIR NO_X Opt-In Units

Sec.  97.180  Applicability.

    A CAIR NO_X opt-in unit must be a unit that:
    (a) Is located in a State that submits, and for which the 
Administrator approves, a State implementation plan revision in 
accordance with Sec.  51.123(p)(3)(i), (ii), or (iii) of this chapter 
establishing procedures concerning CAIR opt-in units;
    (b) Is not a CAIR NO_X unit under Sec.  97.104 and is not 
covered by a retired unit exemption under Sec.  97.105 that is in effect;
    (c) Is not covered by a retired unit exemption under Sec.  72.8 of 
this chapter that is in effect;
    (d) Has or is required or qualified to have a title V operating 
permit or other federally enforceable permit; and
    (e) Vents all of its emissions to a stack and can meet the 
monitoring, recordkeeping, and reporting requirements of subpart HH of 
this part.

Sec.  97.181  General.

    (a) Except as otherwise provided in Sec. Sec.  97.101 through 
97.104, Sec. Sec.  97.106 through 97.108, and subparts BB and CC and 
subparts FF through HH of this part, a CAIR NO_X opt-in unit 
shall be treated as a CAIR NO_X unit for purposes of applying 
such sections and subparts of this part.
    (b) Solely for purposes of applying, as provided in this subpart, 
the requirements of subpart HH of this part to a unit for which a CAIR 
opt-in permit application is submitted and not withdrawn and a CAIR 
opt-in permit is not yet issued or denied under this subpart, such unit 
shall be treated as a CAIR NO_X unit before issuance of a 
CAIR opt-in permit for such unit.

Sec.  97.182  CAIR designated representative.

    Any CAIR NO_X opt-in unit, and any unit for which a CAIR 
opt-in permit application is submitted and not withdrawn and a CAIR 
opt-in permit is not yet issued or denied under this subpart, located 
at the same source as one or more CAIR NO_X units shall have 
the same CAIR designated representative and alternate CAIR designated 
representative as such CAIR NO_X units.

Sec.  97.183  Applying for CAIR opt-in permit.

    (a) Applying for initial CAIR opt-in permit. The CAIR designated 
representative of a unit meeting the requirements for a CAIR 
NO_X opt-in unit in Sec.  97.180 may apply for an initial 
CAIR opt-in permit at any time, except as provided under Sec.  
97.186(f) and (g), and, in order to apply, must submit the following:
    (1) A complete CAIR permit application under Sec.  97.122;
    (2) A certification, in a format specified by the permitting 
authority, that the unit:
    (i) Is not a CAIR NO_X unit under Sec.  97.104 and is not 
covered by a retired unit exemption under Sec.  97.105 that is in effect;
    (ii) Is not covered by a retired unit exemption under Sec.  72.8 of 
this chapter that is in effect;
    (iii) Vents all of its emissions to a stack; and
    (iv) Has documented heat input for more than 876 hours during the 6 
months immediately preceding submission of the CAIR permit application 
under Sec.  97.122;
    (3) A monitoring plan in accordance with subpart HH of this part;
    (4) A complete certificate of representation under Sec.  97.113 
consistent with Sec.  97.182, if no CAIR designated representative has 
been previously designated for the source that includes the unit; and
    (5) A statement, in a format specified by the permitting authority, 
whether the CAIR designated representative requests that the unit be 
allocated CAIR NO_X allowances under Sec.  97.188(b) or Sec.  
97.188(c) (subject to the conditions in Sec. Sec.  97.184(h) and 
97.186(g)), to the extent such allocation is provided in a State 
implementation plan revision submitted in accordance with Sec.  
51.123(p)(3)(i), (ii), or (iii) of this chapter and approved by the 
Administrator. If allocation under Sec.  97.188(c) is requested, this 
statement shall include a statement that the owners and operators of 
the unit intend to repower the unit before January 1, 2015 and that 
they will provide, upon request, documentation demonstrating such 
intent.
    (b) Duty to reapply. (1) The CAIR designated representative of a 
CAIR NO_X opt-in unit shall submit a complete CAIR permit 
application under Sec.  97.122 to renew the CAIR opt-in unit permit in 
accordance with the permitting authority's regulations for title V 
operating permits, or the permitting authority's regulations for other 
federally enforceable permits if applicable, addressing permit renewal.
    (2) Unless the permitting authority issues a notification of 
acceptance of withdrawal of the CAIR NO_X opt-in unit from 
the CAIR NO_X Annual Trading Program in accordance with Sec.  
97.186 or the unit becomes a CAIR NO_X unit under Sec.  
97.104, the CAIR NO_X opt-in unit shall remain subject to the 
requirements for a CAIR NO_X opt-in unit, even if the CAIR 
designated representative for the CAIR NO_X opt-in unit fails 
to submit a CAIR permit application that is required for renewal of the 
CAIR opt-in permit under paragraph (b)(1) of this section.

Sec.  97.184  Opt-in process.

    The permitting authority will issue or deny a CAIR opt-in permit 
for a unit for which an initial application for a CAIR opt-in permit 
under Sec.  97.183 is submitted in accordance with the following, to 
the extent provided in a State implementation plan revision submitted 
in accordance with Sec.  51.123(p)(3)(i), (ii), or (iii) of this 
chapter and approved by the Administrator:
    (a) Interim review of monitoring plan. The permitting authority and 
the Administrator will determine, on an interim basis, the sufficiency 
of the monitoring plan accompanying the initial application for a CAIR 
opt-in permit under Sec.  97.183. A monitoring plan is sufficient, for 
purposes of interim review, if the plan appears to contain information 
demonstrating that the NO_X emissions rate and heat input of 
the unit and all other applicable parameters are monitored and reported 
in accordance with subpart HH of this part. A determination of 
sufficiency shall not be construed as acceptance or approval of the 
monitoring plan.
    (b) Monitoring and reporting. (1)(i) If the permitting authority 
and the Administrator determine that the monitoring plan is sufficient 
under paragraph (a) of this section, the owner or operator shall 
monitor and report the NO_X emissions rate and the heat input 
of the unit and all other applicable parameters, in accordance with 
subpart HH of this part, starting on the date of certification of the 
appropriate monitoring systems under subpart HH of this part and 
continuing until a CAIR opt-in permit is denied under Sec.  97.184(f) 
or, if a CAIR opt-in permit is issued, the date and time when the unit 
is withdrawn from the CAIR NO_X Annual Trading Program in 
accordance with Sec.  97.186.
    (ii) The monitoring and reporting under paragraph (b)(1)(i) of this 
section shall include the entire control period immediately before the 
date on which the unit enters the CAIR NO_X Annual Trading 
Program under Sec.  97.184(g), during which period monitoring system 
availability must not be less than 90 percent under subpart HH of this 
part and the unit must be in full compliance with any applicable State 
or Federal

[[Page 25419]]

emissions or emissions-related requirements.
    (2) To the extent the NO_X emissions rate and the heat 
input of the unit are monitored and reported in accordance with subpart 
HH of this part for one or more control periods, in addition to the 
control period under paragraph (b)(1)(ii) of this section, during which 
control periods monitoring system availability is not less than 90 
percent under subpart HH of this part and the unit is in full 
compliance with any applicable State or Federal emissions or emissions-
related requirements and which control periods begin not more than 3 
years before the unit enters the CAIR NO_X Annual Trading 
Program under Sec.  97.184(g), such information shall be used as 
provided in paragraphs (c) and (d) of this section.
    (c) Baseline heat input. The unit's baseline heat rate shall equal:
    (1) If the unit's NO_X emissions rate and heat input are 
monitored and reported for only one control period, in accordance with 
paragraph (b)(1) of this section, the unit's total heat input (in 
mmBtu) for the control period; or
    (2) If the unit's NO_X emissions rate and heat input are 
monitored and reported for more than one control period, in accordance 
with paragraphs (b)(1) and (2) of this section, the average of the 
amounts of the unit's total heat input (in mmBtu) for the control 
periods under paragraphs (b)(1)(ii) and (2) of this section.
    (d) Baseline NOX emission rate. The unit's baseline NO_X 
emission rate shall equal:
    (1) If the unit's NO_X emissions rate and heat input are 
monitored and reported for only one control period, in accordance with 
paragraph (b)(1) of this section, the unit's NO_X emissions 
rate (in lb/mmBtu) for the control period;
    (2) If the unit's NO_X emissions rate and heat input are 
monitored and reported for more than one control period, in accordance 
with paragraphs (b)(1) and (2) of this section, and the unit does not 
have add-on NO_X emission controls during any such control 
periods, the average of the amounts of the unit's NO_X 
emissions rate (in lb/mmBtu) for the control periods under paragraphs 
(b)(1)(ii) and (2) of this section; or
    (3) If the unit's NO_X emissions rate and heat input are 
monitored and reported for more than one control period, in accordance 
with paragraphs (b)(1) and (2) of this section, and the unit has add-on 
NO_X emission controls during any such control periods, the 
average of the amounts of the unit's NO_X emissions rate (in 
lb/mmBtu) for such control periods during which the unit has add-on 
NO_X emission controls.
    (e) Issuance of CAIR opt-in permit. After calculating the baseline 
heat input and the baseline NO_X emissions rate for the unit 
under paragraphs (c) and (d) of this section and if the permitting 
authority determines that the CAIR designated representative shows that 
the unit meets the requirements for a CAIR NO_X opt-in unit 
in Sec.  97.180 and meets the elements certified in Sec.  97.183(a)(2), 
the permitting authority will issue a CAIR opt-in permit. The 
permitting authority will provide a copy of the CAIR opt-in permit to 
the Administrator, who will then establish a compliance account for the 
source that includes the CAIR NO_X opt-in unit unless the 
source already has a compliance account.
    (f) Issuance of denial of CAIR opt-in permit. Notwithstanding 
paragraphs (a) through (e) of this section, if at any time before 
issuance of a CAIR opt-in permit for the unit, the permitting authority 
determines that the CAIR designated representative fails to show that 
the unit meets the requirements for a CAIR NO_X opt-in unit 
in Sec.  97.180 or meets the elements certified in Sec.  97.183(a)(2), 
the permitting authority will issue a denial of a CAIR opt-in permit 
for the unit.
    (g) Date of entry into CAIR NO_X Annual Trading Program. 
A unit for which an initial CAIR opt-in permit is issued by the 
permitting authority shall become a CAIR NO_X opt-in unit, 
and a CAIR NO_X unit, as of the later of January 1, 2009 or 
January 1 of the first control period during which such CAIR opt-in 
permit is issued.
    (h) Repowered CAIR NO_X opt-in unit. (1) If CAIR 
designated representative requests, and the permitting authority issues 
a CAIR opt-in permit providing for, allocation to a CAIR NO_X 
opt-in unit of CAIR NO_X allowances under Sec.  97.188(c) and 
such unit is repowered after its date of entry into the CAIR 
NO_X Annual Trading Program under paragraph (g) of this 
section, the repowered unit shall be treated as a CAIR NO_X 
opt-in unit replacing the original CAIR NO_X opt-in unit, as 
of the date of start-up of the repowered unit's combustion chamber.
    (2) Notwithstanding paragraphs (c) and (d) of this section, as of 
the date of start-up under paragraph (h)(1) of this section, the 
repowered unit shall be deemed to have the same date of commencement of 
operation, date of commencement of commercial operation, baseline heat 
input, and baseline NO_X emission rate as the original CAIR 
NO_X opt-in unit, and the original CAIR NO_X opt-in 
unit shall no longer be treated as a CAIR NO_X opt-in unit or 
a CAIR NO_X unit.

Sec.  97.185  CAIR opt-in permit contents.

    (a) Each CAIR opt-in permit will contain:
    (1) All elements required for a complete CAIR permit application 
under Sec.  97.122;
    (2) The certification in Sec.  97.183(a)(2);
    (3) The unit's baseline heat input under Sec.  97.184(c);
    (4) The unit's baseline NO_X emission rate under Sec.  
97.184(d);
    (5) A statement whether the unit is to be allocated CAIR 
NO_X allowances under Sec.  97.188(b) or Sec.  97.188(c) 
(subject to the conditions in Sec. Sec.  97.184(h) and 97.186(g));
    (6) A statement that the unit may withdraw from the CAIR 
NO_X Annual Trading Program only in accordance with Sec.  
97.186; and
    (7) A statement that the unit is subject to, and the owners and 
operators of the unit must comply with, the requirements of Sec.  97.187.
    (b) Each CAIR opt-in permit is deemed to incorporate automatically 
the definitions of terms under Sec.  97.102 and, upon recordation by 
the Administrator under subpart FF or GG of this part or this subpart, 
every allocation, transfer, or deduction of CAIR NO_X 
allowances to or from the compliance account of the source that 
includes a CAIR NO_X opt-in unit covered by the CAIR opt-in 
permit.
    (c) The CAIR opt-in permit shall be included, in a format specified 
by the permitting authority, in the CAIR permit for the source where 
the CAIR NO_X opt-in unit is located and in a title V 
operating permit or other federally enforceable permit for the source.

Sec.  97.186  Withdrawal from CAIR NO_X Annual Trading Program.

    Except as provided under paragraph (g) of this section, a CAIR 
NO_X opt-in unit may withdraw from the CAIR NO_X 
Annual Trading Program, but only if the permitting authority issues a 
notification to the CAIR designated representative of the CAIR 
NO_X opt-in unit of the acceptance of the withdrawal of the 
CAIR NO_X opt-in unit in accordance with paragraph (d) of 
this section.
    (a) Requesting withdrawal. In order to withdraw a CAIR 
NO_X opt-in unit from the CAIR NO_X Annual Trading 
Program, the CAIR designated representative of the CAIR NO_X 
opt-in unit shall submit to the permitting authority a request to 
withdraw effective as of midnight of December 31 of a specified 
calendar year, which date must be at least 4 years after December 31 of 
the year of entry into the CAIR NO_X Annual Trading

[[Page 25420]]

Program under Sec.  97.184(g). The request must be submitted no later 
than 90 days before the requested effective date of withdrawal.
    (b) Conditions for withdrawal. Before a CAIR NO_X opt-in 
unit covered by a request under paragraph (a) of this section may 
withdraw from the CAIR NO_X Annual Trading Program and the 
CAIR opt-in permit may be terminated under paragraph (e) of this 
section, the following conditions must be met:
    (1) For the control period ending on the date on which the 
withdrawal is to be effective, the source that includes the CAIR 
NO_X opt-in unit must meet the requirement to hold CAIR 
NO_X allowances under Sec.  97.106(c) and cannot have any 
excess emissions.
    (2) After the requirement for withdrawal under paragraph (b)(1) of 
this section is met, the Administrator will deduct from the compliance 
account of the source that includes the CAIR NO_X opt-in unit 
CAIR NO_X allowances equal in amount to and allocated for the 
same or a prior control period as any CAIR NO_X allowances 
allocated to the CAIR NO_X opt-in unit under Sec.  97.188 for 
any control period for which the withdrawal is to be effective. If 
there are no remaining CAIR NO_X units at the source, the 
Administrator will close the compliance account, and the owners and 
operators of the CAIR NO_X opt-in unit may submit a CAIR 
NO_X allowance transfer for any remaining CAIR NO_X 
allowances to another CAIR NO_X Allowance Tracking System in 
accordance with subpart GG of this part.
    (c) Notification. (1) After the requirements for withdrawal under 
paragraphs (a) and (b) of this section are met (including deduction of 
the full amount of CAIR NO_X allowances required), the 
permitting authority will issue a notification to the CAIR designated 
representative of the CAIR NO_X opt-in unit of the acceptance 
of the withdrawal of the CAIR NO_X opt-in unit as of midnight 
on December 31 of the calendar year for which the withdrawal was requested.
    (2) If the requirements for withdrawal under paragraphs (a) and (b) 
of this section are not met, the permitting authority will issue a 
notification to the CAIR designated representative of the CAIR 
NO_X opt-in unit that the CAIR NO_X opt-in unit's 
request to withdraw is denied. Such CAIR NO_X opt-in unit 
shall continue to be a CAIR NO_X opt-in unit.
    (d) Permit amendment. After the permitting authority issues a 
notification under paragraph (c)(1) of this section that the 
requirements for withdrawal have been met, the permitting authority 
will revise the CAIR permit covering the CAIR NO_X opt-in 
unit to terminate the CAIR opt-in permit for such unit as of the 
effective date specified under paragraph (c)(1) of this section. The 
unit shall continue to be a CAIR NO_X opt-in unit until the 
effective date of the termination and shall comply with all 
requirements under the CAIR NO_X Annual Trading Program 
concerning any control periods for which the unit is a CAIR 
NO_X opt-in unit, even if such requirements arise or must be 
complied with after the withdrawal takes effect.
    (e) Reapplication upon failure to meet conditions of withdrawal. If 
the permitting authority denies the CAIR NO_X opt-in unit's 
request to withdraw, the CAIR designated representative may submit 
another request to withdraw in accordance with paragraphs (a) and (b) 
of this section.
    (f) Ability to reapply to the CAIR NO_X Annual Trading 
Program. Once a CAIR NO_X opt-in unit withdraws from the CAIR 
NO_X Annual Trading Program and its CAIR opt-in permit is 
terminated under this section, the CAIR designated representative may 
not submit another application for a CAIR opt-in permit under Sec.  
97.183 for such CAIR NO_X opt-in unit before the date that is 
4 years after the date on which the withdrawal became effective. Such 
new application for a CAIR opt-in permit will be treated as an initial 
application for a CAIR opt-in permit under Sec.  97.184.
    (g) Inability to withdraw. Notwithstanding paragraphs (a) through 
(f) of this section, a CAIR NO_X opt-in unit shall not be 
eligible to withdraw from the CAIR NO_X Annual Trading 
Program if the CAIR designated representative of the CAIR 
NO_X opt-in unit requests, and the permitting authority 
issues a CAIR NO_X opt-in permit providing for, allocation to 
the CAIR NO_X opt-in unit of CAIR NO_X allowances 
under Sec.  97.188(c).

Sec.  97.187  Change in regulatory status.

    (a) Notification. If a CAIR NO_X opt-in unit becomes a 
CAIR NO_X unit under Sec.  97.104, then the CAIR designated 
representative shall notify in writing the permitting authority and the 
Administrator of such change in the CAIR NO_X opt-in unit's 
regulatory status, within 30 days of such change.
    (b) Permitting authority's and Administrator's actions. (1) If a 
CAIR NO_X opt-in unit becomes a CAIR NO_X unit 
under Sec.  97.104, the permitting authority will revise the CAIR 
NO_X opt-in unit's CAIR opt-in permit to meet the 
requirements of a CAIR permit under Sec.  97.123, and remove the CAIR 
opt-in permit provisions, as of the date on which the CAIR 
NO_X opt-in unit becomes a CAIR NO_X unit under 
Sec.  97.104.
    (2)(i) The Administrator will deduct from the compliance account of 
the source that includes the CAIR NO_X opt-in unit that 
becomes a CAIR NO_X unit under Sec.  97.104, CAIR 
NO_X allowances equal in amount to and allocated for the same 
or a prior control period as:
    (A) Any CAIR NO_X allowances allocated to the CAIR 
NO_X opt-in unit under Sec.  97.188 for any control period 
after the date on which the CAIR NO_X opt-in unit becomes a 
CAIR NO_X unit under Sec.  97.104; and
    (B) If the date on which the CAIR NO_X opt-in unit 
becomes a CAIR NO_X unit under Sec.  97.104 is not December 
31, the CAIR NO_X allowances allocated to the CAIR 
NO_X opt-in unit under Sec.  97.188 for the control period 
that includes the date on which the CAIR NO_X opt-in unit 
becomes a CAIR NO_X unit under Sec.  97.104, multiplied by 
the ratio of the number of days, in the control period, starting with 
the date on which the CAIR NO_X opt-in unit becomes a CAIR 
NO_X unit under Sec.  97.104 divided by the total number of 
days in the control period and rounded to the nearest whole allowance 
as appropriate.
    (ii) The CAIR designated representative shall ensure that the 
compliance account of the source that includes the CAIR NO_X 
unit that becomes a CAIR NO_X unit under Sec.  97.104 
contains the CAIR NO_X allowances necessary for completion of 
the deduction under paragraph (b)(2)(i) of this section.
    (3)(i) For every control period after the date on which the CAIR 
NO_X opt-in unit becomes a CAIR NO_X unit under 
Sec.  97.104, the CAIR NO_X opt-in unit will be allocated 
CAIR NO_X allowances under Sec.  97.142.
    (ii) If the date on which the CAIR NO_X opt-in unit 
becomes a CAIR NO_X unit under Sec.  97.104 is not December 
31, the following amount of CAIR NO_X allowances will be 
allocated to the CAIR NO_X opt-in unit (as a CAIR 
NO_X unit) under ( 97.142 for the control period that 
includes the date on which the CAIR NO_X opt-in unit becomes 
a CAIR NO_X unit under Sec.  97.104:
    (A) The amount of CAIR NO_X allowances otherwise 
allocated to the CAIR NO_X opt-in unit (as a CAIR 
NO_X unit) under Sec.  97.142 for the control period 
multiplied by;
    (B) The ratio of the number of days, in the control period, 
starting with the date on which the CAIR NO_X opt-in unit 
becomes a CAIR NO_X unit under Sec.  97.104, divided by the 
total number of days in the control period; and

[[Page 25421]]

    (C) Rounded to the nearest whole allowance as appropriate.

Sec.  97.188  CAIR NO_X allowance allocations to CAIR 
NO_X opt-in units.

    (a) Timing requirements. (1) When the CAIR opt-in permit is issued 
under Sec.  97.184(e), the permitting authority will allocate CAIR 
NO_X allowances to the CAIR NO_X opt-in unit, and 
submit to the Administrator the allocation for the control period in 
which a CAIR NO_X opt-in unit enters the CAIR NO_X 
Annual Trading Program under Sec.  97.184(g), in accordance with 
paragraph (b) or (c) of this section.
    (2) By no later than October 31 of the control period after the 
control period in which a CAIR NO_X opt-in unit enters the 
CAIR NO_X Annual Trading Program under Sec.  97.184(g) and 
October 31 of each year thereafter, the permitting authority will 
allocate CAIR NO_X allowances to the CAIR NO_X opt-
in unit, and submit to the Administrator the allocation for the control 
period that includes such submission deadline and in which the unit is 
a CAIR NO_X opt-in unit, in accordance with paragraph (b) or 
(c) of this section.
    (b) Calculation of allocation. For each control period for which a 
CAIR NO_X opt-in unit is to be allocated CAIR NO_X 
allowances, the permitting authority will allocate in accordance with 
the following procedures, if provided in a State implementation plan 
revision submitted in accordance with Sec.  51.123(p)(3)(i), (ii), or 
(iii) of this chapter and approved by the Administrator:
    (1) The heat input (in mmBtu) used for calculating the CAIR 
NO_X allowance allocation will be the lesser of:
    (i) The CAIR NO_X opt-in unit's baseline heat input 
determined under Sec.  97.184(c); or
    (ii) The CAIR NO_X opt-in unit's heat input, as 
determined in accordance with subpart HH of this part, for the 
immediately prior control period, except when the allocation is being 
calculated for the control period in which the CAIR NO_X opt-
in unit enters the CAIR NO_X Annual Trading Program under 
Sec.  97.184(g).
    (2) The NO_X emission rate (in lb/mmBtu) used for 
calculating CAIR NO_X allowance allocations will be the lesser of:
    (i) The CAIR NO_X opt-in unit's baseline NO_X 
emissions rate (in lb/mmBtu) determined under Sec.  97.184(d) and 
multiplied by 70 percent; or
    (ii) The most stringent State or Federal NO_X emissions 
limitation applicable to the CAIR NO_X opt-in unit at any 
time during the control period for which CAIR NO_X allowances 
are to be allocated.
    (3) The permitting authority will allocate CAIR NO_X 
allowances to the CAIR NO_X opt-in unit in an amount equaling 
the heat input under paragraph (b)(1) of this section, multiplied by 
the NO_X emission rate under paragraph (b)(2) of this 
section, divided by 2,000 lb/ton, and rounded to the nearest whole 
allowance as appropriate.
    (c) Notwithstanding paragraph (b) of this section and if the CAIR 
designated representative requests, and the permitting authority issues 
a CAIR opt-in permit (based on a demonstration of the intent to repower 
stated under Sec.  97.183(a)(5)) providing for, allocation to a CAIR 
NO_X opt-in unit of CAIR NO_X allowances under this 
paragraph (subject to the conditions in Sec. Sec.  97.184(h) and 
97.186(g)), the permitting authority will allocate to the CAIR 
NO_X opt-in unit as follows, if provided in a State 
implementation plan revision submitted in accordance with ( 
51.123(p)(3)(i), (ii), or (iii) of this chapter and approved by the 
Administrator:
    (1) For each control period in 2009 through 2014 for which the CAIR 
NO_X opt-in unit is to be allocated CAIR NO_X 
allowances,
    (i) The heat input (in mmBtu) used for calculating CAIR 
NO_X allowance allocations will be determined as described in 
paragraph (b)(1) of this section.
    (ii) The NO_X emission rate (in lb/mmBtu) used for 
calculating CAIR NO_X allowance allocations will be the 
lesser of:
    (A) The CAIR NO_X opt-in unit's baseline NO_X 
emissions rate (in lb/mmBtu) determined under Sec.  97.184(d); or
    (B) The most stringent State or Federal NO_X emissions 
limitation applicable to the CAIR NO_X opt-in unit at any 
time during the control period in which the CAIR NO_X opt-in 
unit enters the CAIR NO_X Annual Trading Program under Sec.  
97.184(g).
    (iii) The permitting authority will allocate CAIR NO_X 
allowances to the CAIR NO_X opt-in unit in an amount equaling 
the heat input under paragraph (c)(1)(i) of this section, multiplied by 
the NO_X emission rate under paragraph (c)(1)(ii) of this 
section, divided by 2,000 lb/ton, and rounded to the nearest whole 
allowance as appropriate.
    (2) For each control period in 2015 and thereafter for which the 
CAIR NO_X opt-in unit is to be allocated CAIR NO_X 
allowances,
    (i) The heat input (in mmBtu) used for calculating the CAIR 
NO_X allowance allocations will be determined as described in 
paragraph (b)(1) of this section.
    (ii) The NO_X emission rate (in lb/mmBtu) used for 
calculating the CAIR NO_X allowance allocation will be the 
lesser of:
    (A) 0.15 lb/mmBtu;
    (B) The CAIR NO_X opt-in unit's baseline NO_X 
emissions rate (in lb/mmBtu) determined under Sec.  97.184(d); or
    (C) The most stringent State or Federal NO_X emissions 
limitation applicable to the CAIR NO_X opt-in unit at any 
time during the control period for which CAIR NO_X allowances 
are to be allocated.
    (iii) The permitting authority will allocate CAIR NO_X 
allowances to the CAIR NO_X opt-in unit in an amount equaling 
the heat input under paragraph (c)(2)(i) of this section, multiplied by 
the NO_X emission rate under paragraph (c)(2)(ii) of this 
section, divided by 2,000 lb/ton, and rounded to the nearest whole 
allowance as appropriate.
    (d) Recordation. If provided in a State implementation plan 
revision submitted in accordance with Sec.  51.123(p)(3)(i), (ii), or 
(iii) of this chapter and approved by the Administrator:
    (1) The Administrator will record, in the compliance account of the 
source that includes the CAIR NO_X opt-in unit, the CAIR 
NO_X allowances allocated by the permitting authority to the 
CAIR NO_X opt-in unit under paragraph (a)(1) of this section.
    (2) By December 1 of the control period in which a CAIR 
NO_X opt-in unit enters the CAIR NO_X Annual 
Trading Program under Sec.  97.184(g) and December 1 of each year 
thereafter, the Administrator will record, in the compliance account of 
the source that includes the CAIR NO_X opt-in unit, the CAIR 
NO_X allowances allocated by the permitting authority to the 
CAIR NO_X opt-in unit under paragraph (a)(2) of this section.

Appendix A to Subpart II of Part 97--States With Approved State 
Implementation Plan Revisions Concerning CAIR NO_X Opt-In Units

    1. The following States have State Implementation Plan revisions 
under Sec.  51.123(p)(3) of this chapter approved by the 
Administrator and establishing procedures providing for CAIR 
NO_X opt-in units under subpart II of this part and 
allocation of CAIR NO_X allowances to such units under 
Sec.  97.188(b):
    [Reserved]
    2. The following States have State Implementation Plan revisions 
under Sec.  51.123(p)(3) of this chapter approved by the 
Administrator and establishing procedures providing for CAIR 
NO_X opt-in units under subpart II of this part and 
allocation of CAIR

[[Page 25422]]

NO_X allowances to such units under Sec.  97.188(c):
    [Reserved]

? 4. Part 97 is amended by adding subparts AAA through CCC, adding and 
reserving subparts DDD and EEE and adding subparts FFF through III to 
read as follows:
Subpart AAA--CAIR SO2 Trading Program General Provisions
Sec.
97.201 Purpose.
97.202 Definitions.
97.203 Measurements, abbreviations, and acronyms.
97.204 Applicability.
97.205 Retired unit exemption.
97.206 Standard requirements.
97.207 Computation of time.
97.208 Appeal procedures.
Subpart BBB--CAIR Designated Representative for CAIR SO2 Sources
97.210 Authorization and responsibilities of CAIR designated 
representative.
97.211 Alternate CAIR designated representative.
97.212 Changing CAIR designated representative and alternate CAIR 
designated representative; changes in owners and operators.
97.213 Certificate of representation.
97.214 Objections concerning CAIR designated representative.
97.215 Delegation by CAIR designated representative and alternate 
CAIR designated representative.
Subpart CCC--Permits
97.220 General CAIR SO₂ Trading Program permit 
requirements.
97.221 Submission of CAIR permit applications.
97.222 Information requirements for CAIR permit applications.
97.223 CAIR permit contents and term.
97.224 CAIR permit revisions.
Subpart DDD--[Reserved]
Subpart EEE--[Reserved]
Subpart FFF--CAIR SO2 Allowance Tracking System
97.250 [Reserved]
97.251 Establishment of accounts.
97.252 Responsibilities of CAIR authorized account representative.
97.253 Recordation of CAIR SO₂ allowances.
97.254 Compliance with CAIR SO₂ emissions limitation.
97.255 Banking.
97.256 Account error.
97.257 Closing of general accounts.
Subpart GGG--CAIR SO2 Allowance Transfers
97.260 Submission of CAIR SO₂ allowance transfers.
97.261 EPA recordation.
97.262 Notification.
Subpart HHH--Monitoring and Reporting
97.270 General requirements.
97.271 Initial certification and recertification procedures.
97.272 Out of control periods.
97.273 Notifications.
97.274 Recordkeeping and reporting.
97.275 Petitions.
Subpart III--CAIR SO2 Opt-in Units
97.280 Applicability.
97.281 General.
97.282 CAIR designated representative.
97.283 Applying for CAIR opt-in permit.
97.284 Opt-in process.
97.285 CAIR opt-in permit contents.
97.286 Withdrawal from CAIR SO₂ Trading Program.
97.287 Change in regulatory status.
97.288 CAIR SO₂ allowance allocations to CAIR 
SO₂ opt-in units.

Appendix A to Subpart III of Part 97--States With Approved State 
Implementation Plan Revisions Concerning CAIR SO₂ Opt-In Units

Subpart AAA--CAIR SO2 Trading Program General Provisions

Sec.  97.201  Purpose.

    This subpart and subparts BBB through III set forth the general 
provisions and the designated representative, permitting, allowance, 
monitoring, and opt-in provisions for the Federal Clean Air Interstate 
Rule (CAIR) SO₂ Trading Program, under section 110 of the 
Clean Air Act and Sec.  52.36 of this chapter, as a means of mitigating 
interstate transport of fine particulates and sulfur dioxide.

Sec.  97.202  Definitions.

    The terms used in this subpart and subparts BBB through III shall 
have the meanings set forth in this section as follows:
    Account number means the identification number given by the 
Administrator to each CAIR SO₂ Allowance Tracking System account.
    Acid Rain emissions limitation means a limitation on emissions of 
sulfur dioxide or nitrogen oxides under the Acid Rain Program.
    Acid Rain Program means a multi-state sulfur dioxide and nitrogen 
oxides air pollution control and emission reduction program established 
by the Administrator under title IV of the CAA and parts 72 through 78 
of this chapter.
    Administrator means the Administrator of the United States 
Environmental Protection Agency or the Administrator's duly authorized 
representative.
    Allocate or allocation means, with regard to CAIR SO₂ 
allowances issued under the Acid Rain Program, the determination by the 
Administrator of the amount of such CAIR SO₂ allowances to 
be initially credited to a CAIR SO₂ unit or other entity 
and, with regard to CAIR SO₂ allowances issued under Sec.  
97.288 or provisions of a State implementation plan that are approved 
under Sec.  51.124(o)(1) or (2) or (r) of this chapter, the 
determination by a permitting authority of the amount of such CAIR 
SO₂ allowances to be initially credited to a CAIR 
SO₂ unit or other entity.
    Allowance transfer deadline means, for a control period, midnight 
of March 1 (if it is a business day), or midnight of the first business 
day thereafter (if March 1 is not a business day), immediately 
following the control period and is the deadline by which a CAIR 
SO₂ allowance transfer must be submitted for recordation in 
a CAIR SO₂ source's compliance account in order to be used 
to meet the source's CAIR SO₂ emissions limitation for such 
control period in accordance with Sec.  97.254.
    Alternate CAIR designated representative means, for a CAIR 
SO₂ source and each CAIR SO₂ unit at the source, 
the natural person who is authorized by the owners and operators of the 
source and all such units at the source in accordance with subparts BBB 
and III of this part, to act on behalf of the CAIR designated 
representative in matters pertaining to the CAIR SO₂ Trading 
Program. If the CAIR SO₂ source is also a CAIR 
NO_X source, then this natural person shall be the same 
person as the alternate CAIR designated representative under the CAIR 
NO_X Annual Trading Program. If the CAIR SO₂ 
source is also a CAIR NO_X Ozone Season source, then this 
natural person shall be the same person as the alternate CAIR 
designated representative under the CAIR NO_X Ozone Season 
Trading Program. If the CAIR SO₂ source is also subject to 
the Acid Rain Program, then this natural person shall be the same 
person as the alternate designated representative under the Acid Rain 
Program. If the CAIR SO₂ source is also subject to the Hg 
Budget Trading Program, then this natural person shall be the same 
person as the alternate Hg designated representative under the Hg 
Budget Trading Program.
    Automated data acquisition and handling system or DAHS means that 
component of the continuous emission monitoring system, or other 
emissions monitoring system approved for use under subpart HHH of this 
part, designed to interpret and convert individual output signals from 
pollutant concentration monitors, flow monitors, diluent gas monitors, 
and other component parts of the monitoring system to produce a 
continuous record of the measured parameters in the measurement units 
required by subpart HHH of this part.
    Boiler means an enclosed fossil- or other-fuel-fired combustion 
device used

[[Page 25423]]

to produce heat and to transfer heat to recirculating water, steam, or 
other medium.
    Bottoming-cycle cogeneration unit means a cogeneration unit in 
which the energy input to the unit is first used to produce useful 
thermal energy and at least some of the reject heat from the useful 
thermal energy application or process is then used for electricity 
production.
    CAIR authorized account representative means, with regard to a 
general account, a responsible natural person who is authorized, in 
accordance with subparts BBB, FFF, and III of this part, to transfer 
and otherwise dispose of CAIR SO₂ allowances held in the 
general account and, with regard to a compliance account, the CAIR 
designated representative of the source.
    CAIR designated representative means, for a CAIR SO₂ 
source and each CAIR SO₂ unit at the source, the natural 
person who is authorized by the owners and operators of the source and 
all such units at the source, in accordance with subparts BBB and III 
of this part, to represent and legally bind each owner and operator in 
matters pertaining to the CAIR SO₂ Trading Program. If the 
CAIR SO₂ source is also a CAIR NO_X source, then 
this natural person shall be the same person as the CAIR designated 
representative under the CAIR NO_X Annual Trading Program. If 
the CAIR SO₂ source is also a CAIR NO_X Ozone 
Season source, then this natural person shall be the same person as the 
CAIR designated representative under the CAIR NO_X Ozone 
Season Trading Program. If the CAIR SO₂ source is also 
subject to the Acid Rain Program, then this natural person shall be the 
same person as the designated representative under the Acid Rain 
Program. If the CAIR SO₂ source is also subject to the Hg 
Budget Trading Program, then this natural person shall be the same 
person as the Hg designated representative under the Hg Budget Trading 
Program.
    CAIR NOX Annual Trading Program means a multi-state nitrogen oxides 
air pollution control and emission reduction program established by the 
Administrator in accordance with subparts AA through II of this part 
and (Sec.  51.123(p) and 52.35 of this chapter or approved and 
administered by the Administrator in accordance with subparts AA 
through II of part 96 of this chapter and Sec.  51.123(o)(1) or (2) of 
this chapter, as a means of mitigating interstate transport of fine 
particulates and nitrogen oxides.
    CAIR NOX Ozone Season source means a source that is subject to the 
CAIR NO_X Ozone Season Trading Program.
    CAIR NOX Ozone Season Trading Program means a multi-state nitrogen 
oxides air pollution control and emission reduction program established 
by the Administrator in accordance with subparts AAAA through IIII of 
this part and (Sec.  51.123(ee) and 52.35 of this chapter or approved 
and administered by the Administrator in accordance with under subparts 
AAAA through IIII and Sec.  51.123(aa)(1) or (2) (and (bb)(1)), 
(bb)(2), or (dd) of this chapter, as a means of mitigating interstate 
transport of ozone and nitrogen oxides.
    CAIR NO_X source means a source that is subject to the 
CAIR NO_X Annual Trading Program.
    CAIR permit means the legally binding and federally enforceable 
written document, or portion of such document, issued by the permitting 
authority under subpart CCC of this part, including any permit 
revisions, specifying the CAIR SO₂ Trading Program 
requirements applicable to a CAIR SO₂ source, to each CAIR 
SO₂ unit at the source, and to the owners and operators and 
the CAIR designated representative of the source and each such unit.
    CAIR SO2 allowance means a limited authorization issued by the 
Administrator under the Acid Rain Program, by a permitting authority 
under Sec.  97.288, or by a permitting authority under provisions of a 
State implementation plan that are approved under Sec.  51.124(o)(1) or 
(2) or (r) of this chapter, to emit sulfur dioxide during the control 
period of the specified calendar year for which the authorization is 
allocated or of any calendar year thereafter under the CAIR 
SO₂ Trading Program as follows:
    (1) For one CAIR SO₂ allowance allocated for a control 
period in a year before 2010, one ton of sulfur dioxide, except as 
provided in Sec.  97.254(b);
    (2) For one CAIR SO₂ allowance allocated for a control 
period in 2010 through 2014, 0.50 ton of sulfur dioxide, except as 
provided in Sec.  97.254(b); and
    (3) For one CAIR SO₂ allowance allocated for a control 
period in 2015 or later, 0.35 ton of sulfur dioxide, except as provided 
in Sec.  97.254(b).
    (4) An authorization to emit sulfur dioxide that is not issued 
under the Acid Rain Program, Sec.  97.288, or provisions of a State 
implementation plan that are approved under Sec.  51.124(o)(1) or (2) 
or (r) of this chapter shall not be a CAIR SO₂ allowance.
    CAIR SO2 allowance deduction or deduct CAIR SO2 allowances means 
the permanent withdrawal of CAIR SO₂ allowances by the 
Administrator from a compliance account, e.g., in order to account for 
a specified number of tons of total sulfur dioxide emissions from all 
CAIR SO₂ units at a CAIR SO₂ source for a control 
period, determined in accordance with subpart HHH of this part, or to 
account for excess emissions.
    CAIR SO2 Allowance Tracking System means the system by which the 
Administrator records allocations, deductions, and transfers of CAIR 
SO₂ allowances under the CAIR SO₂ Trading 
Program. This is the same system as the Allowance Tracking System under 
Sec.  72.2 of this chapter by which the Administrator records 
allocations, deduction, and transfers of Acid Rain SO₂ 
allowances under the Acid Rain Program.
    CAIR SO2 Allowance Tracking System account means an account in the 
CAIR SO2 Allowance Tracking System established by the Administrator for 
purposes of recording the allocation, holding, transferring, or 
deducting of CAIR SO₂ allowances. Such allowances will be 
allocated, held, deducted, or transferred only as whole allowances.
    CAIR SO2 allowances held or hold CAIR SO2 allowances means the CAIR 
SO₂ allowances recorded by the Administrator, or submitted 
to the Administrator for recordation, in accordance with subparts FFF, 
GGG, and III of this part or part 73 of this chapter, in a CAIR 
SO₂ Allowance Tracking System account.
    CAIR SO2 emissions limitation means, for a CAIR SO₂ 
source, the tonnage equivalent, in SO₂ emissions in a 
control period, of the CAIR SO₂ allowances available for 
deduction for the source under Sec.  97.254(a) and (b) for the control 
period.
    CAIR SO2 source means a source that includes one or more CAIR 
SO₂ units.
    CAIR SO2 Trading Program means a multi-state sulfur dioxide air 
pollution control and emission reduction program established by the 
Administrator in accordance with subparts AAA through III of this part 
and Sec. Sec.  51.124(r) and 52.36 of this chapter or approved and 
administered by the Administrator in accordance with subparts AAA 
through III of part 96 of this chapter and Sec.  51.124(o) (1) or (2) 
of this chapter, as a means of mitigating interstate transport of fine 
particulates and sulfur dioxide.
    CAIR SO2 unit means a unit that is subject to the CAIR 
SO₂ Trading Program under Sec.  97.204 and, except for 
purposes of Sec.  97.205, a CAIR SO₂ opt-in unit under 
subpart III of this part.
    Certifying official means:
    (1) For a corporation, a president, secretary, treasurer, or vice-
president or the corporation in charge of a principal business function 
or any other person who performs similar policy or

[[Page 25424]]

decision-making functions for the corporation;
    (2) For a partnership or sole proprietorship, a general partner or 
the proprietor respectively; or
    (3) For a local government entity or State, Federal, or other 
public agency, a principal executive officer or ranking elected official.
    Clean Air Act or CAA means the Clean Air Act, 42 U.S.C. 7401, et seq.
    Coal means any solid fuel classified as anthracite, bituminous, 
subbituminous, or lignite.
    Coal-derived fuel means any fuel (whether in a solid, liquid, or 
gaseous state) produced by the mechanical, thermal, or chemical 
processing of coal.
    Coal-fired means combusting any amount of coal or coal-derived 
fuel, alone, or in combination with any amount of any other fuel.
    Cogeneration unit means a stationary, fossil-fuel-fired boiler or 
stationary, fossil-fuel-fired combustion turbine:
    (1) Having equipment used to produce electricity and useful thermal 
energy for industrial, commercial, heating, or cooling purposes through 
the sequential use of energy; and
    (2) Producing during the 12-month period starting on the date the 
unit first produces electricity and during any calendar year after the 
calendar year in which the unit first produces electricity--
    (i) For a topping-cycle cogeneration unit,
    (A) Useful thermal energy not less than 5 percent of total energy 
output; and
    (B) Useful power that, when added to one-half of useful thermal 
energy produced, is not less then 42.5 percent of total energy input, 
if useful thermal energy produced is 15 percent or more of total energy 
output, or not less than 45 percent of total energy input, if useful 
thermal energy produced is less than 15 percent of total energy output.
    (ii) For a bottoming-cycle cogeneration unit, useful power not less 
than 45 percent of total energy input.
    Combustion turbine means:
    (1) An enclosed device comprising a compressor, a combustor, and a 
turbine and in which the flue gas resulting from the combustion of fuel 
in the combustor passes through the turbine, rotating the turbine; and
    (2) If the enclosed device under paragraph (1) of this definition 
is combined cycle, any associated duct burner, heat recovery steam 
generator, and steam turbine.
    Commence commercial operation means, with regard to a unit:
    (1) To have begun to produce steam, gas, or other heated medium 
used to generate electricity for sale or use, including test 
generation, except as provided in Sec.  97.205 and Sec.  97.284(h).
    (i) For a unit that is a CAIR SO₂ unit under Sec.  
97.204 on the later of November 15, 1990 or the date the unit commences 
commercial operation as defined in paragraph (1) of this definition and 
that subsequently undergoes a physical change (other than replacement 
of the unit by a unit at the same source), such date shall remain the 
date of commencement of commercial operation of the unit, which shall 
continue to be treated as the same unit.
    (ii) For a unit that is a CAIR SO₂ unit under Sec.  
97.204 on the later of November 15, 1990 or the date the unit commences 
commercial operation as defined in paragraph (1) of this definition and 
that is subsequently replaced by a unit at the same source (e.g., 
repowered), such date shall remain the replaced unit's date of 
commencement of commercial operation, and the replacement unit shall be 
treated as a separate unit with a separate date for commencement of 
commercial operation as defined in paragraph (1) or (2) of this 
definition as appropriate.
    (2) Notwithstanding paragraph (1) of this definition and except as 
provided in Sec.  97.205, for a unit that is not a CAIR SO₂ 
unit under Sec.  97.204 on the later of November 15, 1990 or the date 
the unit commences commercial operation as defined in paragraph (1) of 
this definition, the unit's date for commencement of commercial 
operation shall be the date on which the unit becomes a CAIR 
SO₂ unit under Sec.  97.204.
    (i) For a unit with a date for commencement of commercial operation 
as defined in paragraph (2) of this definition and that subsequently 
undergoes a physical change (other than replacement of the unit by a 
unit at the same source), such date shall remain the date of 
commencement of commercial operation of the unit, which shall continue 
to be treated as the same unit.
    (ii) For a unit with a date for commencement of commercial 
operation as defined in paragraph (2) of this definition and that is 
subsequently replaced by a unit at the same source (e.g., repowered), 
such date shall remain the replaced unit's date of commencement of 
commercial operation, and the replacement unit shall be treated as a 
separate unit with a separate date for commencement of commercial 
operation as defined in paragraph (1) or (2) of this definition as 
appropriate.
    Commence operation means:
    (1) To have begun any mechanical, chemical, or electronic process, 
including, with regard to a unit, start-up of a unit's combustion 
chamber, except as provided in Sec.  97.284(h).
    (2) For a unit that undergoes a physical change (other than 
replacement of the unit by a unit at the same source) after the date 
the unit commences operation as defined in paragraph (1) of this 
definition, such date shall remain the date of commencement of 
operation of the unit, which shall continue to be treated as the same 
unit.
    (3) For a unit that is replaced by a unit at the same source (e.g., 
repowered) after the date the unit commences operation as defined in 
paragraph (1) of this definition, such date shall remain the replaced 
unit's date of commencement of operation, and the replacement unit 
shall be treated as a separate unit with a separate date for 
commencement of operation as defined in paragraph (1), (2), or (3) of 
this definition as appropriate, except as provided in Sec.  97.284(h).
    Common stack means a single flue through which emissions from 2 or 
more units are exhausted.
    Compliance account means a CAIR SO₂ Allowance Tracking 
System account, established by the Administrator for a CAIR 
SO₂ source subject to an Acid Rain emissions limitations 
under Sec.  73.31(a) or (b) of this chapter or for any other CAIR 
SO₂ source under subpart FFF or III of this part, in which 
any CAIR SO₂ allowance allocations for the CAIR 
SO₂ units at the source are initially recorded and in which 
are held any CAIR SO₂ allowances available for use for a 
control period in order to meet the source's CAIR SO₂ 
emissions limitation in accordance with Sec.  97.254.
    Continuous emission monitoring system or CEMS means the equipment 
required under subpart HHH of this part to sample, analyze, measure, 
and provide, by means of readings recorded at least once every 15 
minutes (using an automated data acquisition and handling system 
(DAHS)), a permanent record of sulfur dioxide emissions, stack gas 
volumetric flow rate, stack gas moisture content, and oxygen or carbon 
dioxide concentration (as applicable), in a manner consistent with part 
75 of this chapter. The following systems are the principal types of 
continuous emission monitoring systems required under subpart HHH of 
this part:
    (1) A flow monitoring system, consisting of a stack flow rate 
monitor and an automated data acquisition and handling system and 
providing a permanent, continuous record of stack gas volumetric flow 
rate, in standard cubic feet per hour (scfh);

[[Page 25425]]

    (2) A sulfur dioxide monitoring system, consisting of a 
SO₂ pollutant concentration monitor and an automated data 
acquisition and handling system and providing a permanent, continuous 
record of SO₂ emissions, in parts per million (ppm);
    (3) A moisture monitoring system, as defined in Sec.  75.11(b)(2) 
of this chapter and providing a permanent, continuous record of the 
stack gas moisture content, in percent H₂O;
    (4) A carbon dioxide monitoring system, consisting of a 
CO₂ pollutant concentration monitor (or an oxygen monitor 
plus suitable mathematical equations from which the CO₂ 
concentration is derived) and an automated data acquisition and 
handling system and providing a permanent, continuous record of 
CO₂ emissions, in percent CO₂; and
    (5) An oxygen monitoring system, consisting of an O₂ 
concentration monitor and an automated data acquisition and handling 
system and providing a permanent, continuous record of O₂ in 
percent O₂.
    Control period means the period beginning January 1 of a calendar 
year, except as provided in Sec.  97.206(c)(2), and ending on December 
31 of the same year, inclusive.
    Emissions means air pollutants exhausted from a unit or source into 
the atmosphere, as measured, recorded, and reported to the 
Administrator by the CAIR designated representative and as determined 
by the Administrator in accordance with subpart HHH of this part.
    Excess emissions means any ton, or portion of a ton, of sulfur 
dioxide emitted by the CAIR SO₂ units at a CAIR 
SO₂ source during a control period that exceeds the CAIR 
SO₂ emissions limitation for the source, provided that any 
portion of a ton of excess emissions shall be treated as one ton of 
excess emissions.
    Fossil fuel means natural gas, petroleum, coal, or any form of 
solid, liquid, or gaseous fuel derived from such material.
    Fossil-fuel-fired means, with regard to a unit, combusting any 
amount of fossil fuel in any calendar year.
    General account means a CAIR SO₂ Allowance Tracking 
System account, established under subpart FFF of this part, that is not 
a compliance account.
    Generator means a device that produces electricity.
    Heat input means, with regard to a specified period of time, the 
product (in mmBtu/time) of the gross calorific value of the fuel (in 
Btu/lb) divided by 1,000,000 Btu/mmBtu and multiplied by the fuel feed 
rate into a combustion device (in lb of fuel/time), as measured, 
recorded, and reported to the Administrator by the CAIR designated 
representative and determined by the Administrator in accordance with 
subpart HHH of this part and excluding the heat derived from preheated 
combustion air, recirculated flue gases, or exhaust from other sources.
    Heat input rate means the amount of heat input (in mmBtu) divided 
by unit operating time (in hr) or, with regard to a specific fuel, the 
amount of heat input attributed to the fuel (in mmBtu) divided by the 
unit operating time (in hr) during which the unit combusts the fuel.
    Hg Budget Trading Program means a multi-state Hg air pollution 
control and emission reduction program approved and administered by the 
Administrator in accordance subpart HHHH of part 60 of this chapter and 
Sec.  60.24(h)(6), or established by the Administrator under section 
111 of the Clean Air Act, as a means of reducing national Hg emissions.
    Life-of-the-unit, firm power contractual arrangement means a unit 
participation power sales agreement under which a utility or industrial 
customer reserves, or is entitled to receive, a specified amount or 
percentage of nameplate capacity and associated energy generated by any 
specified unit and pays its proportional amount of such unit's total 
costs, pursuant to a contract:
    (1) For the life of the unit;
    (2) For a cumulative term of no less than 30 years, including 
contracts that permit an election for early termination; or
    (3) For a period no less than 25 years or 70 percent of the 
economic useful life of the unit determined as of the time the unit is 
built, with option rights to purchase or release some portion of the 
nameplate capacity and associated energy generated by the unit at the 
end of the period.
    Maximum design heat input means the maximum amount of fuel per hour 
(in Btu/hr) that a unit is capable of combusting on a steady state 
basis as of the initial installation of the unit as specified by the 
manufacturer of the unit.
    Monitoring system means any monitoring system that meets the 
requirements of subpart HHH of this part, including a continuous 
emissions monitoring system, an alternative monitoring system, or an 
excepted monitoring system under part 75 of this chapter.
    Most stringent State or Federal SO2 emissions limitation means, 
with regard to a unit, the lowest SO₂ emissions limitation 
(in terms of lb/mmBtu) that is applicable to the unit under State or 
Federal law, regardless of the averaging period to which the emissions 
limitation applies.
    Nameplate capacity means, starting from the initial installation of 
a generator, the maximum electrical generating output (in MWe) that the 
generator is capable of producing on a steady state basis and during 
continuous operation (when not restricted by seasonal or other 
deratings) as of such installation as specified by the manufacturer of 
the generator or, starting from the completion of any subsequent 
physical change in the generator resulting in an increase in the 
maximum electrical generating output (in MWe) that the generator is 
capable of producing on a steady state basis and during continuous 
operation (when not restricted by seasonal or other deratings), such 
increased maximum amount as of such completion as specified by the 
person conducting the physical change.
    Operator means any person who operates, controls, or supervises a 
CAIR SO₂ unit or a CAIR SO₂ source and shall 
include, but not be limited to, any holding company, utility system, or 
plant manager of such a unit or source.
    Owner means any of the following persons:
    (1) With regard to a CAIR SO₂ source or a CAIR 
SO₂ unit at a source, respectively:
    (i) Any holder of any portion of the legal or equitable title in a 
CAIR SO₂ unit at the source or the CAIR SO₂ unit;
    (ii) Any holder of a leasehold interest in a CAIR SO₂ 
unit at the source or the CAIR SO₂ unit; or
    (iii) Any purchaser of power from a CAIR SO₂ unit at the 
source or the CAIR SO₂ unit under a life-of-the-unit, firm 
power contractual arrangement; provided that, unless expressly provided 
for in a leasehold agreement, owner shall not include a passive lessor, 
or a person who has an equitable interest through such lessor, whose 
rental payments are not based (either directly or indirectly) on the 
revenues or income from such CAIR SO₂ unit; or
    (2) With regard to any general account, any person who has an 
ownership interest with respect to the CAIR SO₂ allowances 
held in the general account and who is subject to the binding agreement 
for the CAIR authorized account representative to represent the 
person's ownership interest with respect to CAIR SO₂ allowances.
    Permitting authority means the State air pollution control agency, 
local agency, other State agency, or other

[[Page 25426]]

agency authorized by the Administrator to issue or revise permits to 
meet the requirements of the CAIR SO₂ Trading Program in 
accordance with subpart CCC of this part or, if no such agency has been 
so authorized, the Administrator.
    Potential electrical output capacity means 33 percent of a unit's 
maximum design heat input, divided by 3,413 Btu/kWh, divided by 1,000 
kWh/MWh, and multiplied by 8,760 hr/yr.
    Receive or receipt of means, when referring to the permitting 
authority or the Administrator, to come into possession of a document, 
information, or correspondence (whether sent in hard copy or by 
authorized electronic transmission), as indicated in an official log, 
or by a notation made on the document, information, or correspondence, 
by the permitting authority or the Administrator in the regular course 
of business.
    Recordation, record, or recorded means, with regard to CAIR 
SO₂ allowances, the movement of CAIR SO₂ 
allowances by the Administrator into or between CAIR SO₂ 
Allowance Tracking System accounts, for purposes of allocation, 
transfer, or deduction.
    Reference method means any direct test method of sampling and 
analyzing for an air pollutant as specified in Sec.  75.22 of this chapter.
    Replacement, replace, or replaced means, with regard to a unit, the 
demolishing of a unit, or the permanent shutdown and permanent 
disabling of a unit, and the construction of another unit (the 
replacement unit) to be used instead of the demolished or shutdown unit 
(the replaced unit).
    Repowered means, with regard to a unit, replacement of a coal-fired 
boiler with one of the following coal-fired technologies at the same 
source as the coal-fired boiler:
    (1) Atmospheric or pressurized fluidized bed combustion;
    (2) Integrated gasification combined cycle;
    (3) Magnetohydrodynamics;
    (4) Direct and indirect coal-fired turbines;
    (5) Integrated gasification fuel cells; or
    (6) As determined by the Administrator in consultation with the 
Secretary of Energy, a derivative of one or more of the technologies 
under paragraphs (1) through (5) of this definition and any other coal-
fired technology capable of controlling multiple combustion emissions 
simultaneously with improved boiler or generation efficiency and with 
significantly greater waste reduction relative to the performance of 
technology in widespread commercial use as of January 1, 2005.
    Sequential use of energy means:
    (1) For a topping-cycle cogeneration unit, the use of reject heat 
from electricity production in a useful thermal energy application or 
process; or
    (2) For a bottoming-cycle cogeneration unit, the use of reject heat 
from useful thermal energy application or process in electricity 
production.
    Serial number means, for a CAIR SO₂ allowance, the 
unique identification number assigned to each CAIR SO₂ 
allowance by the Administrator.
    Solid waste incineration unit means a stationary, fossil-fuel-fired 
boiler or stationary, fossil-fuel-fired combustion turbine that is a 
``solid waste incineration unit'' as defined in section 129(g)(1) of 
the Clean Air Act.
    Source means all buildings, structures, or installations located in 
one or more contiguous or adjacent properties under common control of 
the same person or persons. For purposes of section 502(c) of the Clean 
Air Act, a ``source,'' including a ``source'' with multiple units, 
shall be considered a single ``facility.''
    State means one of the States or the District of Columbia that is 
subject to the CAIR SO₂ Trading Program pursuant to Sec.  
52.35 of this chapter.
    Submit or serve means to send or transmit a document, information, 
or correspondence to the person specified in accordance with the 
applicable regulation:
    (1) In person;
    (2) By United States Postal Service; or
    (3) By other means of dispatch or transmission and delivery. 
Compliance with any ``submission'' or ``service'' deadline shall be 
determined by the date of dispatch, transmission, or mailing and not 
the date of receipt.
    Title V operating permit means a permit issued under title V of the 
Clean Air Act and part 70 or part 71 of this chapter.
    Title V operating permit regulations means the regulations that the 
Administrator has approved or issued as meeting the requirements of 
title V of the Clean Air Act and part 70 or 71 of this chapter.
    Ton means 2,000 pounds. For the purpose of determining compliance 
with the CAIR SO₂ emissions limitation, total tons of sulfur 
dioxide emissions for a control period shall be calculated as the sum 
of all recorded hourly emissions (or the mass equivalent of the 
recorded hourly emission rates) in accordance with subpart HHH of this 
part, but with any remaining fraction of a ton equal to or greater than 
0.50 tons deemed to equal one ton and any remaining fraction of a ton 
less than 0.50 tons deemed to equal zero tons.
    Topping-cycle cogeneration unit means a cogeneration unit in which 
the energy input to the unit is first used to produce useful power, 
including electricity, and at least some of the reject heat from the 
electricity production is then used to provide useful thermal energy.
    Total energy input means, with regard to a cogeneration unit, total 
energy of all forms supplied to the cogeneration unit, excluding energy 
produced by the cogeneration unit itself.
    Total energy output means, with regard to a cogeneration unit, the 
sum of useful power and useful thermal energy produced by the 
cogeneration unit.
    Unit means a stationary, fossil-fuel-fired boiler or combustion 
turbine or other stationary, fossil-fuel-fired combustion device. Unit 
operating day means a calendar day in which a unit combusts any fuel.
    Unit operating hour or hour of unit operation means an hour in 
which a unit combusts any fuel.
    Useful power means, with regard to a cogeneration unit, electricity 
or mechanical energy made available for use, excluding any such energy 
used in the power production process (which process includes, but is 
not limited to, any on-site processing or treatment of fuel combusted 
at the unit and any on-site emission controls).
    Useful thermal energy means, with regard to a cogeneration unit, 
thermal energy that is:
    (1) Made available to an industrial or commercial process (not a 
power production process), excluding any heat contained in condensate 
return or makeup water;
    (2) Used in a heating application (e.g., space heating or domestic 
hot water heating); or
    (3) Used in a space cooling application (i.e., thermal energy used 
by an absorption chiller).
    Utility power distribution system means the portion of an 
electricity grid owned or operated by a utility and dedicated to 
delivering electricity to customers.

Sec.  97.203  Measurements, abbreviations, and acronyms.

    Measurements, abbreviations, and acronyms used in this subpart and 
subparts BBB through III are defined as follows:

Btu--British thermal unit.
CO₂--carbon dioxide.
H₂O--water.
Hg--mercury.

[[Continued on page 25427]]
Notices For
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
Local Navigation
