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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 25427-25469]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28ap06-17]
[[pp. 25427-25469]]
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 25427]]
[[Continued from page 25426]]
[[Page 25427]]
hr--hour.
kW--kilowatt electrical.
kWh--kilowatt hour.
lb--pound.
mmBtu--million Btu.
MWe--megawatt electrical.
MWh--megawatt hour.
NOX--nitrogen oxides.
O2--oxygen.
ppm--parts per million.
scfh--standard cubic feet per hour.
SO2--sulfur dioxide.
yr--year.
Sec. 97.204 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 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.
(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 SO2 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 SO2 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. 97.205 Retired unit exemption.
(a)(1) Any CAIR SO2 unit that is permanently retired and
is not a CAIR SO2 opt-in unit under subpart III of this part
shall be exempt from the CAIR SO2 Trading Program, except
for the provisions of this section, Sec. Sec. 97.202, 97.203, 97.204,
97.206(c)(4) through (7), 97.207, 97.208, and subparts BBB, FFF, and
GGG of this part.
(2) The exemption under paragraph (a)(1) of this section shall
become effective the day on which the CAIR SO2 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
[[Page 25428]]
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
CCC 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 sulfur dioxide, starting on the date
that the exemption takes effect.
(2) 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.
(3) 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
SO2 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.
(4) 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. 97.222 for the unit not
less than 18 months (or such lesser time provided by the permitting
authority) before the later of January 1, 2010 or the date on which the
unit resumes operation.
(5) 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)(4) of this
section;
(ii) The date on which the CAIR designated representative is
required under paragraph (b)(4) 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.
(6) For the purpose of applying monitoring, reporting, and
recordkeeping requirements under subpart HHH 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. 97.206 Standard requirements.
(a) Permit requirements. (1) The CAIR designated representative of
each CAIR SO2 source required to have a title V operating
permit and each CAIR SO2 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. 97.222 in accordance with the deadlines
specified in Sec. 97.221; 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 SO2 source
required to have a title V operating permit and each CAIR
SO2 unit required to have a title V operating permit at the
source shall have a CAIR permit issued by the permitting authority
under subpart CCC 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 III of this part, the owners and
operators of a CAIR SO2 source that is not otherwise
required to have a title V operating permit and each CAIR
SO2 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 CCC of this part for such CAIR
SO2 source and such CAIR SO2 unit.
(b) Monitoring, reporting, and recordkeeping requirements. (1) The
owners and operators, and the CAIR designated representative, of each
CAIR SO2 source and each CAIR SO2 unit at the
source shall comply with the monitoring, reporting, and recordkeeping
requirements of subpart HHH of this part.
(2) The emissions measurements recorded and reported in accordance
with subpart HHH of this part shall be used to determine compliance by
each CAIR SO2 source with the CAIR SO2 emissions
limitation under paragraph (c) of this section.
(c) Sulfur dioxide emission requirements. (1) As of the allowance
transfer deadline for a control period, the owners and operators of
each CAIR SO2 source and each CAIR SO2 unit at
the source shall hold, in the source's compliance account, a tonnage
equivalent in CAIR SO2 allowances available for compliance
deductions for the control period, as determined in accordance with
Sec. 97.254(a) and (b), not less than the tons of total sulfur dioxide
emissions for the control period from all CAIR SO2 units at
the source, as determined in accordance with subpart HHH of this part.
(2) A CAIR SO2 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, 2010 or the deadline for meeting the unit(s
monitor certification requirements under Sec. 97.270(b)(1),(2), or (5)
and for each control period thereafter.
(3) A CAIR SO2 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 SO2 allowance was allocated.
(4) CAIR SO2 allowances shall be held in, deducted from,
or transferred into or among CAIR SO2 Allowance Tracking
System accounts in accordance with subparts FFF, GGG, and III of this part.
(5) A CAIR SO2 allowance is a limited authorization to
emit sulfur dioxide in accordance with the CAIR SO2 Trading
Program. No provision of the CAIR SO2 Trading Program, the
CAIR permit application, the CAIR permit, or an exemption under Sec.
97.205 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 SO2 allowance does not constitute a property
right.
(7) Upon recordation by the Administrator under subpart FFF, GGG,
or III of this part, every allocation, transfer, or deduction of a CAIR
SO2 allowance to or from a CAIR SO2 source's
compliance account is incorporated automatically in any CAIR permit of
the source.
(d) Excess emissions requirements. If a CAIR SO2 source
emits sulfur dioxide during any control period in excess of the CAIR
SO2 emissions limitation, then:
(1) The owners and operators of the source and each CAIR
SO2 unit at the source shall surrender the CAIR
SO2 allowances required for deduction under Sec.
97.254(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
[[Page 25429]]
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 SO2 source
and each CAIR SO2 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. 97.213 for the
CAIR designated representative for the source and each CAIR
SO2 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. 97.213 changing the CAIR designated
representative.
(ii) All emissions monitoring information, in accordance with
subpart HHH of this part, provided that to the extent that subpart HHH
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
SO2 Trading Program.
(iv) Copies of all documents used to complete a CAIR permit
application and any other submission under the CAIR SO2
Trading Program or to demonstrate compliance with the requirements of
the CAIR SO2 Trading Program.
(2) The CAIR designated representative of a CAIR SO2
source and each CAIR SO2 unit at the source shall submit the
reports required under the CAIR SO2 Trading Program,
including those under subpart HHH of this part.
(f) Liability. (1) Each CAIR SO2 source and each CAIR
SO2 unit shall meet the requirements of the CAIR
SO2 Trading Program.
(2) Any provision of the CAIR SO2 Trading Program that
applies to a CAIR SO2 source or the CAIR designated
representative of a CAIR SO2 source shall also apply to the
owners and operators of such source and of the CAIR SO2
units at the source.
(3) Any provision of the CAIR SO2 Trading Program that
applies to a CAIR SO2 unit or the CAIR designated
representative of a CAIR SO2 unit shall also apply to the
owners and operators of such unit.
(g) Effect on other authorities. No provision of the CAIR
SO2 Trading Program, a CAIR permit application, a CAIR
permit, or an exemption under Sec. 97.205 shall be construed as
exempting or excluding the owners and operators, and the CAIR
designated representative, of a CAIR SO2 source or CAIR
SO2 unit from compliance with any other provision of the
applicable, approved State implementation plan, a federally enforceable
permit, or the Clean Air Act.
Sec. 97.207 Computation of time.
(a) Unless otherwise stated, any time period scheduled, under the
CAIR SO2 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 SO2 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 SO2 Trading Program, falls on a weekend or a
State or Federal holiday, the time period shall be extended to the next
business day.
Sec. 97.208 Appeal procedures.
The appeal procedures for decisions of the Administrator under the
CAIR SO2 Trading Program are set forth in part 78 of this chapter.
Subpart BBB--CAIR Designated Representative for CAIR SO2 Sources
Sec. 97.210 Authorization and responsibilities of CAIR designated
representative.
(a) Except as provided under Sec. 97.211, each CAIR SO2
source, including all CAIR SO2 units at the source, shall
have one and only one CAIR designated representative, with regard to
all matters under the CAIR SO2 Trading Program concerning
the source or any CAIR SO2 unit at the source.
(b) The CAIR designated representative of the CAIR SO2
source shall be selected by an agreement binding on the owners and
operators of the source and all CAIR SO2 units at the source
and shall act in accordance with the certification statement in Sec.
97.213(a)(4)(iv).
(c) Upon receipt by the Administrator of a complete certificate of
representation under Sec. 97.213, 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 SO2 source represented and each CAIR
SO2 unit at the source in all matters pertaining to the CAIR
SO2 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 SO2 Allowance Tracking System
account will be established for a CAIR SO2 unit at a source,
until the Administrator has received a complete certificate of
representation under Sec. 97.213 for a CAIR designated representative
of the source and the CAIR SO2 units at the source.
(e)(1) Each submission under the CAIR SO2 Trading
Program shall be submitted, signed, and certified by the CAIR
designated representative for each CAIR SO2 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 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
SO2 source or a CAIR SO2 unit only if the
submission has been made, signed, and certified in accordance with
paragraph (e)(1) of this section.
Sec. 97.211 Alternate CAIR designated representative.
(a) A certificate of representation under Sec. 97.213 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
[[Page 25430]]
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. 97.213, 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. 97.202, 97.210(a) and
(d), 97.212, 97.213, 97.215, 97.251 and 97.282, whenever the term
``CAIR designated representative'' is used in subparts AAA through III
of this part, the term shall be construed to include the CAIR
designated representative or any alternate CAIR designated representative.
Sec. 97.212 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. 97.213. 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 SO2 source and the CAIR
SO2 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. 97.213. 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 SO2
source and the CAIR SO2 units at the source.
(c) Changes in owners and operators. (1) In the event an owner or
operator of a CAIR SO2 source or a CAIR SO2 unit
is not included in the list of owners and operators in the certificate
of representation under Sec. 97.213, 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 SO2 source or a CAIR SO2 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.
97.213 amending the list of owners and operators to include the change.
Sec. 97.213 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 SO2 source, and each CAIR
SO2 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 SO2
source and of each CAIR SO2 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 SO2 unit at the source.''
(ii) ``I certify that I have all the necessary authority to carry
out my duties and responsibilities under the CAIR SO2
Trading Program on behalf of the owners and operators of the source and
of each CAIR SO2 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 SO2 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 SO2 unit, or
where a utility or industrial customer purchases power from a CAIR
SO2 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 SO2 unit at the source; and CAIR SO2
allowances and proceeds of transactions involving CAIR SO2
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 SO2 allowances
by contract, CAIR SO2 allowances and proceeds of
transactions involving CAIR SO2 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
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. 97.214 Objections concerning CAIR designated representative.
(a) Once a complete certificate of representation under Sec.
97.213 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. 97.213 is received by the Administrator.
(b) Except as provided in Sec. 97.212(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
[[Page 25431]]
of any decision or order by the permitting authority or the
Administrator under the CAIR SO2 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 SO2 allowance transfers.
Sec. 97.215 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
97.215(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 97.215(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 97.215 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.
Subpart CCC--Permits
Sec. 97.220 General CAIR SO2 Trading Program permit requirements.
(a) For each CAIR SO2 source required to have a title V
operating permit or required, under subpart III 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. 97.205,
this subpart, and subpart III of this part.
(b) Each CAIR permit shall contain, with regard to the CAIR
SO2 source and the CAIR SO2 units at the source
covered by the CAIR permit, all applicable CAIR SO2 Trading
Program, CAIR NOX Annual Trading Program, and CAIR
NOX Ozone Season 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. 97.221 Submission of CAIR permit applications.
(a) Duty to apply. The CAIR designated representative of any CAIR
SO2 source required to have a title V operating permit shall
submit to the permitting authority a complete CAIR permit application
under Sec. 97.222 for the source covering each CAIR SO2
unit at the source at least 18 months (or such lesser time provided by
the permitting authority) before the later of January 1, 2010 or the
date on which the CAIR SO2 unit commences commercial
operation, except as provided in Sec. 97.283(a).
(b) Duty to reapply. For a CAIR SO2 source required to
have a title V operating permit, the CAIR designated representative
shall submit a complete CAIR permit application under Sec. 97.222 for
the source covering each CAIR SO2 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. 97.283(b).
Sec. 97.222 Information requirements for CAIR permit applications.
A complete CAIR permit application shall include the following
elements concerning the CAIR SO2 source for which the application
is submitted, in a format prescribed by the permitting authority:
(a) Identification of the CAIR SO2 source;
(b) Identification of each CAIR SO2 unit at the CAIR
SO2 source; and
(c) The standard requirements under Sec. 97.206.
Sec. 97.223 CAIR permit contents and term.
(a) Each CAIR permit will contain, in a format prescribed by the
permitting authority, all lements required for a complete CAIR permit
application under Sec. 97.222.
(b) Each CAIR permit is deemed to incorporate automatically the
definitions of terms under Sec. 97.202 and, upon recordation by the
Administrator under subpart FFF, GGG, or III of this part, every
allocation, transfer, or deduction of a CAIR SO2 allowance
to or from the compliance account of the CAIR SO2 source
covered by the permit.
(c) The term of the CAIR permit will be set by the permitting
authority, as
[[Page 25432]]
necessary to facilitate coordination of the renewal of the CAIR permit
with issuance, revision, or renewal of the CAIR SO2 source's
title V operating permit or other federally enforceable permit as
applicable.
Sec. 97.224 CAIR permit revisions.
Except as provided in Sec. 97.223(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 DDD--[Reserved]
Subpart EEE--[Reserved]
Subpart FFF--CAIR SO2 Allowance Tracking System
Sec. 97.250 [Reserved]
Sec. 97.251 Establishment of accounts.
(a) Compliance accounts. Except as provided in Sec. 97.284(e),
upon receipt of a complete certificate of representation under Sec.
97.213, the Administrator will establish a compliance account for the
CAIR SO2 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 SO2 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 SO2 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
SO2 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 SO2 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 SO2 allowances held in the general
account in all matters pertaining to the CAIR SO2 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
SO2 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 SO2 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
[[Page 25433]]
account shall be binding on the new CAIR authorized account
representative and the persons with an ownership interest with respect
to the CAIR SO2 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 SO2 allowances
in the general account.
(iii)(A) In the event a person having an ownership interest with
respect to CAIR SO2 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 SO2 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 SO2 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
SO2 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 SO2 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 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 97.251(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 97.251 (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 97.251 (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.
(c) Account identification. The Administrator will assign a unique
identifying number to each account established under paragraph (a) or
(b) of this section.
[[Page 25434]]
Sec. 97.252 Responsibilities of CAIR authorized account representative.
Following the establishment of a CAIR SO2 Allowance
Tracking System account, all submissions to the Administrator
pertaining to the account, including, but not limited to, submissions
concerning the deduction or transfer of CAIR SO2 allowances
in the account, shall be made only by the CAIR authorized account
representative for the account.
Sec. 97.253 Recordation of CAIR SO2 allowances.
(a)(1) After a compliance account is established under Sec.
97.251(a) or Sec. 73.31(a) or (b) of this chapter, the Administrator
will record in the compliance account any CAIR SO2 allowance
allocated to any CAIR SO2 unit at the source for each of the
30 years starting the later of 2010 or the year in which the compliance
account is established and any CAIR SO2 allowance allocated
for each of the 30 years starting the later of 2010 or the year in
which the compliance account is established and transferred to the
source in accordance with subpart GGG of this part or subpart D of part
73 of this chapter.
(2) In 2011 and each year thereafter, after Administrator has
completed all deductions under Sec. 97.254(b), the Administrator will
record in the compliance account any CAIR SO2 allowance
allocated to any CAIR SO2 unit at the source for the new
30th year (i.e., the year that is 30 years after the calendar year for
which such deductions are or could be made) and any CAIR SO2
allowance allocated for the new 30th year and transferred to the source
in accordance with subpart GGG of this part or subpart D of part 73 of
this chapter.
(b)(1) After a general account is established under Sec. 97.251(b)
or Sec. 73.31(c) of this chapter, the Administrator will record in the
general account any CAIR SO2 allowance allocated for each of
the 30 years starting the later of 2010 or the year in which the
general account is established and transferred to the general account
in accordance with subpart GGG of this part or subpart D of part 73 of
this chapter.
(2) In 2011 and each year thereafter, after Administrator has
completed all deductions under Sec. 97.254(b), the Administrator will
record in the general account any CAIR SO2 allowance
allocated for the new 30th year (i.e., the year that is 30 years after
the calendar year for which such deductions are or could be made) and
transferred to the general account in accordance with subpart GGG of
this part or subpart D of part 73 of this chapter.
(c) Serial numbers for allocated CAIR SO2 allowances. When
recording the allocation of CAIR SO2 allowances issued by a
permitting authority under Sec. 97.288, the Administrator will assign
each such CAIR SO2 allowance a unique identification number
that will include digits identifying the year of the control period for
which the CAIR SO2 allowance is allocated.
Sec. 97.254 Compliance with CAIR SO2 emissions limitation.
(a) Allowance transfer deadline. The CAIR SO2 allowances
are available to be deducted for compliance with a source's CAIR
SO2 emissions limitation for a control period in a given
calendar year only if the CAIR SO2 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 SO2 allowance transfer correctly submitted
for recordation under Sec. Sec. 97.260 and 97.261 by the allowance
transfer deadline for the control period.
(b) Deductions for compliance. Following the recordation, in
accordance with Sec. 97.261, of CAIR SO2 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 SO2 allowances
available under paragraph (a) of this section in order to determine
whether the source meets the CAIR SO2 emissions limitation
for the control period as follows:
(1) For a CAIR SO2 source subject to an Acid Rain
emissions limitation, the Administrator will, in the following order:
(i) Deduct the amount of CAIR SO2 allowances, available
under paragraph (a) of this section and not issued by a permitting
authority under Sec. 97.288, that is required under Sec. Sec.
73.35(b) and (c) of this part. If there are sufficient CAIR
SO2 allowances to complete this deduction, the deduction
will be treated as satisfying the requirements of Sec. Sec. 73.35(b)
and (c) of this chapter.
(ii) Deduct the amount of CAIR SO2 allowances, not
issued by a permitting authority under Sec. 97.288, that is required
under Sec. Sec. 73.35(d) and 77.5 of this part. If there are
sufficient CAIR SO2 allowances to complete this deduction,
the deduction will be treated as satisfying the requirements of
Sec. Sec. 73.35(d) and 77.5 of this chapter.
(iii) Treating the CAIR SO2 allowances deducted under
paragraph (b)(1)(i) of this section as also being deducted under this
paragraph (b)(1)(iii), deduct CAIR SO2 allowances available
under paragraph (a) of this section (including any issued by a
permitting authority under Sec. 97.288) in order to determine whether
the source meets the CAIR SO2 emissions limitation for the
control period, as follows:
(A) Until the tonnage equivalent of the CAIR SO2
allowances deducted equals, or exceeds in accordance with paragraphs
(c)(1) and (2) of this section, the number of tons of total sulfur
dioxide emissions, determined in accordance with subpart HHH of this
part, from all CAIR SO2 units at the source for the control
period; or
(B) If there are insufficient CAIR SO2 allowances to
complete the deductions in paragraph (b)(1)(iii)(A) of this section,
until no more CAIR SO2 allowances available under paragraph
(a) of this section (including any issued by a permitting authority
under Sec. 97.288) remain in the compliance account.
(2) For a CAIR SO2 source not subject to an Acid Rain
emissions limitation, the Administrator will deduct CAIR SO2
allowances available under paragraph (a) of this section (including any
issued by a permitting authority under Sec. 97.288) in order to
determine whether the source meets the CAIR SO2 emissions
limitation for the control period, as follows:
(i) Until the tonnage equivalent of the CAIR SO2
allowances deducted equals, or exceeds in accordance with paragraphs
(c)(1) and (2) of this section, the number of tons of total sulfur
dioxide emissions, determined in accordance with subpart HHH of this
part, from all CAIR SO2 units at the source for the control
period; or
(ii) If there are insufficient CAIR SO2 allowances to
complete the deductions in paragraph (b)(2)(i) of this section, until
no more CAIR SO2 allowances available under paragraph (a) of
this section (including any issued by a permitting authority under
Sec. 97.288) remain in the compliance account.
(c)(1) Identification of CAIR SO2 allowances by serial
number. The CAIR authorized account representative for a source's
compliance account may request that specific CAIR SO2
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
[[Page 25435]]
Administrator, the identification of the CAIR SO2 source and
the appropriate serial numbers.
(2) First-in, first-out. The Administrator will deduct CAIR
SO2 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
SO2 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 SO2 allowances that were allocated to the
units at the source for a control period before 2010, in the order of
recordation;
(ii) Any CAIR SO2 allowances that were allocated to any
entity for a control period before 2010 and transferred and recorded in
the compliance account pursuant to subpart GGG of this part or subpart
D of part 73 of this chapter, in the order of recordation;
(iii) Any CAIR SO2 allowances that were allocated to the
units at the source for a control period during 2010 through 2014, in
the order of recordation;
(iv) Any CAIR SO2 allowances that were allocated to any
entity for a control period during 2010 through 2014 and transferred
and recorded in the compliance account pursuant to subpart GGG of this
part or subpart D of part 73 of this chapter, in the order of recordation;
(v) Any CAIR SO2 allowances that were allocated to the
units at the source for a control period in 2015 or later, in the order
of recordation; and
(vi) Any CAIR SO2 allowances that were allocated to any
entity for a control period in 2015 or later and transferred and
recorded in the compliance account pursuant to subpart GGG of this part
or subpart D of part 73 of this chapter, 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 SO2
source has excess emissions, the Administrator will deduct from the
source's compliance account the tonnage equivalent in CAIR
SO2 allowances, allocated for the control period in the
immediately following calendar year (including any issued by a
permitting authority under Sec. 97.288), equal to, or exceeding in
accordance with paragraphs (c)(1) and (2) of this section 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.
(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 SO2 source or the CAIR SO2 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 III.
(f) Administrator's action on submissions. (1) The Administrator
may review and conduct independent audits concerning any submission
under the CAIR SO2 Trading Program and make appropriate
adjustments of the information in the submissions.
(2) The Administrator may deduct CAIR SO2 allowances
from or transfer CAIR SO2 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. 97.255 Banking.
(a) CAIR SO2 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 SO2 allowance that is held in a compliance
account or a general account will remain in such account unless and
until the CAIR SO2 allowance is deducted or transferred
under Sec. 97.254, Sec. 97.256, or subpart GGG or III of this part.
Sec. 97.256 Account error.
The Administrator may, at his or her sole discretion and on his or
her own motion, correct any error in any CAIR SO2 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. 97.257 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.
97.260 and 97.261 for any CAIR SO2 allowances in the account
to one or more other CAIR SO2 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 SO2 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 SO2 allowances into the account under
Sec. Sec. 97.260 and 97.261 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 GGG--CAIR SO2 Allowance Transfers
Sec. 97.260 Submission of CAIR SO2 allowance transfers.
(a) A CAIR authorized account representative seeking recordation of
a CAIR SO2 allowance transfer shall submit the transfer to
the Administrator. To be considered correctly submitted, the CAIR
SO2 allowance transfer shall include the following elements,
in a format specified by the Administrator:
(1) The account numbers of both the transferor and transferee accounts;
(2) The serial number of each CAIR SO2 allowance that is
in the transferor account and is to be transferred; and
(3) The name and signature of the CAIR authorized account
representatives of the transferor and transferee accounts and the dates
signed.
(b)(1) The CAIR authorized account representative for the
transferee account can meet the requirements in paragraph (a)(3) of
this section by submitting, in a format prescribed by the
Administrator, a statement signed by the CAIR authorized account
representative and identifying each account into which any transfer of
allowances, submitted on or after the date on which the Administrator
receives such statement, is authorized. Such authorization shall be
binding on any CAIR authorized account representative for such account
and shall apply to all transfers into the account that are submitted on
or after such date of receipt, unless and until the Administrator
receives a statement signed by the CAIR authorized account
representative retracting the authorization for the account.
(2) The statement under paragraph (b)(1) of this section shall
include the following: ``By this signature I authorize any transfer of
allowances into each
[[Page 25436]]
account listed herein, except that I do not waive any remedies under
State or Federal law to obtain correction of any erroneous transfers
into such accounts. This authorization shall be binding on any CAIR
authorized account representative for such account unless and until a
statement signed by the CAIR authorized account representative retracting
this authorization for the account is received by the Administrator.''
Sec. 97.261 EPA recordation.
(a) Within 5 business days (except as necessary to perform a
transfer in perpetuity of CAIR SO2 allowances allocated to a
CAIR SO2 unit or as provided in paragraph (b) of this
section) of receiving a CAIR SO2 allowance transfer, the
Administrator will record a CAIR SO2 allowance transfer by
moving each CAIR SO2 allowance from the transferor account
to the transferee account as specified by the request, provided that:
(1) The transfer is correctly submitted under Sec. 97.260;
(2) The transferor account includes each CAIR SO2
allowance identified by serial number in the transfer; and
(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.
(b) A CAIR SO2 allowance transfer that is submitted for
recordation after the allowance transfer deadline for a control period
and that includes any CAIR SO2 allowances allocated for any
control period before such allowance transfer deadline will not be
recorded until after the Administrator completes the deductions under
Sec. 97.254 for the control period immediately before such allowance
transfer deadline.
(c) Where a CAIR SO2 allowance transfer submitted for
recordation fails to meet the requirements of paragraph (a) of this
section, the Administrator will not record such transfer.
Sec. 97.262 Notification.
(a) Notification of recordation. Within 5 business days of
recordation of a CAIR SO2 allowance transfer under Sec.
97.261, 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 SO2 allowance transfer that fails to meet
the requirements of Sec. 97.261(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
SO2 allowance transfer for recordation following
notification of non-recordation.
Subpart HHH--Monitoring and Reporting
Sec. 97.270 General requirements.
The owners and operators, and to the extent applicable, the CAIR
designated representative, of a CAIR SO2 unit, shall comply
with the monitoring, recordkeeping, and reporting requirements as
provided in this subpart and in subparts F and G of part 75 of this
chapter. For purposes of complying with such requirements, the
definitions in Sec. 97.202 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
SO2 unit,'' ``CAIR designated representative,'' and
``continuous emission monitoring system'' or (``CEMS'') respectively,
as defined in Sec. 97.202. The owner or operator of a unit that is not
a CAIR SO2 unit but that is monitored under Sec.
75.16(b)(2) of this chapter shall comply with the same monitoring,
recordkeeping, and reporting requirements as a CAIR SO2 unit.
(a) Requirements for installation, certification, and data
accounting. The owner or operator of each CAIR SO2 unit shall:
(1) Install all monitoring systems required under this subpart for
monitoring SO2 mass emissions and individual unit heat input
(including all systems required to monitor SO2
concentration, stack gas moisture content, stack gas flow rate,
CO2 or O2 concentration, and fuel flow rate, as
applicable, in accordance with Sec. Sec. 75.11 and 75.16 of this chapter);
(2) Successfully complete all certification tests required under
Sec. 97.271 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 SO2 unit that
commences commercial operation before July 1, 2008, by January 1, 2009.
(2) For the owner or operator of a CAIR SO2 unit that
commences commercial operation on or after July 1, 2008, by the later
of the following dates:
(i) January 1, 2009; 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 SO2 unit for
which construction of a new stack or flue or installation of add-on
SO2 emission controls is completed after the applicable
deadline 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 SO2 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 III of this part, by
the date specified in Sec. 97.284(b).
(5) Notwithstanding the dates in paragraphs (b)(1) and (2) of this
section, for the owner or operator of a CAIR SO2 opt-in unit
under subpart III of this part, by the date on which the CAIR
SO2 opt-in unit enters the CAIR SO2 Trading
Program as provided in Sec. 97.284(g).
(c) Reporting data. The owner or operator of a CAIR SO2
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 SO2 concentration, stack gas
flow rate, stack gas moisture content, fuel flow rate, and any other
parameters required to determine SO2 mass emissions and heat
input in accordance with Sec. 75.31(b)(2) or (c)(3) of this chapter or
section 2.4 of appendix D to part 75 of this chapter, as applicable.
(d) Prohibitions. (1) No owner or operator of a CAIR SO2
unit shall use any alternative monitoring system, alternative reference
method, or any other alternative to any requirement of this subpart
without having obtained
[[Page 25437]]
prior written approval in accordance with Sec. 97.275.
(2) No owner or operator of a CAIR SO2 unit shall
operate the unit so as to discharge, or allow to be discharged,
SO2 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 SO2 unit shall
disrupt the continuous emission monitoring system, any portion thereof,
or any other approved emission monitoring method, and thereby avoid
monitoring and recording SO2 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 SO2 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. 97.205 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. 97.271(d)(3)(i).
(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. 97.271 Initial certification and recertification procedures.
(a) The owner or operator of a CAIR SO2 unit shall be
exempt from the initial certification requirements of this section for
a monitoring system under Sec. 97.270(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 and appendix
D 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. 97.270(a)(1) exempt from initial
certification requirements under paragraph (a) of this section.
(c) [Reserved]
(d) Except as provided in paragraph (a) of this section, the owner
or operator of a CAIR SO2 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 appendix D to part 75 of
this chapter) under Sec. 97.270(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.
97.270(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. 97.270(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. 97.270(a)(1) that may
significantly affect the ability of the system to accurately measure or
record SO2 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: 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 under Sec. 97.270(a)(1) is
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. 97.270(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. 97.273.
(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 SO2 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.
[[Page 25438]]
(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 SO2 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. 97.272(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 SO2 pollutant concentration
monitor and disapproved flow monitor, respectively, the maximum
potential concentration of SO2 and the maximum potential
flow rate, as defined in sections 2.1.1.1 and 2.1.4.1 of appendix A to
part 75 of this chapter.
(2) 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.
(3) 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.
(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 (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. 97.272 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 of appendix D
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. 97.271 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.
97.271 for each disapproved monitoring system.
[[Page 25439]]
Sec. 97.273 Notifications.
The CAIR designated representative for a CAIR SO2 unit
shall submit written notice to the Administrator in accordance with
Sec. 75.61 of this chapter. Sec. 97.274 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 in
subparts F and G of part 75 of this chapter, and the requirements of
Sec. 97.210(e)(1).
(b) Monitoring Plans. The owner or operator of a CAIR
SO2 unit shall comply with requirements of Sec. 75.62 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 III of this part, Sec. Sec. 97.283 and
97.284(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. 97.271, 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
SO2 mass emissions data and heat input data for the CAIR
SO2 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,
2008, the calendar quarter covering January 1, 2009 through March 31, 2009;
(ii) For a unit that commences commercial operation on or after
July 1, 2008, the calendar quarter corresponding to the earlier of the
date of provisional certification or the applicable deadline for
initial certification under Sec. 97.270(b), unless that quarter is the
third or fourth quarter of 2008, in which case reporting shall commence
in the quarter covering January 1, 2009 through March 31, 2009;
(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. 97.284(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. 97.284(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. 75.64 of this chapter.
(3) For CAIR SO2 units that are also subject to an Acid
Rain emissions limitation or the CAIR NOX Annual Trading
Program, CAIR NOX Ozone Season 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 SO2 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 SO2 emission controls and for
all hours where SO2 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 SO2 emissions.
Sec. 97.275 Petitions.
The CAIR designated representative of a CAIR SO2 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 subpart only to
the extent that the petition is approved in writing by the
Administrator, in consultation with the permitting authority.
Subpart III--CAIR SO2 Opt-in Units
Sec. 97.280 Applicability.
A CAIR SO2 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. 51.124(r)(1), (2), or (3) of this chapter
establishing procedures concerning CAIR opt-in units;
(b) Is not a CAIR SO2 unit under Sec. 97.204 and is not
covered by a retired unit exemption under Sec. 97.205 that is in effect;
(c) Is not covered by a retired unit exemption under Sec. 72.8 of
this chapter that is in effect and is not an opt-in source under part
74 of this chapter;
(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. 97.281 General.
(a) Except as otherwise provided in Sec. Sec. 97.201 through
97.204, Sec. Sec. 97.206 through 97.208, and subparts BBB and CCC and
subparts FFF through HHH of this part, a CAIR SO2 opt-in
unit shall be treated as a CAIR SO2 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 HHH 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 SO2 unit before issuance of a
CAIR opt-in permit for such unit.
Sec. 97.282 CAIR designated representative.
Any CAIR SO2 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 SO2 units shall have
the same CAIR designated representative and alternate CAIR designated
representative as such CAIR SO2 units.
Sec. 97.283 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
SO2 opt-in unit in Sec. 97.280 may apply for an initial
CAIR opt-in permit at any time, except as provided under Sec.
97.286(f) and (g),
[[Page 25440]]
and, in order to apply, must submit the following:
(1) A complete CAIR permit application under Sec. 97.222;
(2) A certification, in a format specified by the permitting
authority, that the unit:
(i) Is not a CAIR SO2 unit under Sec. 97.204 and is not
covered by a retired unit exemption under Sec. 97.205 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) Is not, and so long as the unit is a CAIR SO2 opt-
in unit, will not become, an opt-in source under part 74 of this chapter;
(iv) Vents all of its emissions to a stack, and
(v) Has documented heat input for more than 876 hours during the 6
months immediately preceding submission of the CAIR permit application
under Sec. 97.222;
(3) A monitoring plan in accordance with subpart HHH of this part;
(4) A complete certificate of representation under Sec. 97.213
consistent with Sec. 97.282, 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 SO2 allowances under Sec. 97.288(b) or Sec.
97.288(c) (subject to the conditions in Sec. Sec. 97.284(h) and
97.286(g)), to the extent such allocation is provided in a State
implementation plan revision submitted in accordance with Sec.
51.124(r)(1), (2), or (3) of this chapter and approved by the
Administrator. If allocation under Sec. 97.288(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.
(b) Duty to reapply. (1) The CAIR designated representative of a
CAIR SO2 opt-in unit shall submit a complete CAIR permit
application under Sec. 97.222 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 SO2 opt-in unit from
the CAIR SO2 Trading Program in accordance with Sec. 97.286
or the unit becomes a CAIR SO2 unit under Sec. 97.204, the
CAIR SO2 opt-in unit shall remain subject to the
requirements for a CAIR SO2 opt-in unit, even if the CAIR
designated representative for the CAIR SO2 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. 97.284 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. 51.124(r)(1), (2), or (3) 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. 97.283. A monitoring plan is sufficient, for
purposes of interim review, if the plan appears to contain information
demonstrating that the SO2 emissions rate and heat input of
the unit and all other applicable parameters are monitored and reported
in accordance with subpart HHH 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 SO2 emissions rate and the heat input
of the unit and all other applicable parameters, in accordance with
subpart HHH of this part, starting on the date of certification of the
appropriate monitoring systems under subpart HHH of this part and
continuing until a CAIR opt-in permit is denied under Sec. 97.284(f)
or, if a CAIR opt-in permit is issued, the date and time when the unit
is withdrawn from the CAIR SO2 Trading Program in accordance
with Sec. 97.286.
(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 SO2 Trading Program
under Sec. 97.284(g), during which period monitoring system
availability must not be less than 90 percent under subpart HHH of this
part and the unit must be in full compliance with any applicable State
or Federal emissions or emissions-related requirements.
(2) To the extent the SO2 emissions rate and the heat
input of the unit are monitored and reported in accordance with subpart
HHH 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 HHH 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 SO2 Trading Program
under Sec. 97.284(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 SO2 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 SO2 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 SO2 emission rate. The unit's baseline SO2
emission rate shall equal:
(1) If the unit's SO2 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 SO2 emissions
rate (in lb/mmBtu) for the control period;
(2) If the unit's SO2 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 SO2 emission controls during any such control
periods, the average of the amounts of the unit's SO2
emissions rate (in lb/mmBtu) for the control periods under paragraphs
(b)(1)(ii) and (b)(2) of this section; or
(3) If the unit's SO2 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
SO2 emission controls during any such control periods, the
average of the amounts of the unit's SO2 emissions rate (in
lb/mmBtu) for such control periods during which the unit has add-on
SO2 emission controls.
(e) Issuance of CAIR opt-in permit. After calculating the baseline
heat input
[[Page 25441]]
and the baseline SO2 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 SO2 opt-in unit in Sec.
97.280 and meets the elements certified in Sec. 97.283(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 SO2 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 SO2 opt-in unit
in Sec. 97.280 or meets the elements certified in Sec. 97.283(a)(2),
the permitting authority will issue a denial of a CAIR opt-in permit
for the unit.
(g) Date of entry into CAIR SO2 Trading Program. A unit for which
an initial CAIR opt-in permit is issued by the permitting authority
shall become a CAIR SO2 opt-in unit, and a CAIR
SO2 unit, as of the later of January 1, 2010 or January 1 of
the first control period during which such CAIR opt-in permit is issued.
(h) Repowered CAIR SO2 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 SO2 opt-in
unit of CAIR SO2 allowances under Sec. 97.288(c) and such
unit is repowered after its date of entry into the CAIR SO2
Trading Program under paragraph (g) of this section, the repowered unit
shall be treated as a CAIR SO2 opt-in unit replacing the
original CAIR SO2 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 SO2 emission rate as the original CAIR
SO2 opt-in unit, and the original CAIR SO2 opt-in
unit shall no longer be treated as a CAIR SO2 opt-in unit or
a CAIR SO2 unit.
Sec. 97.285 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. 97.222;
(2) The certification in Sec. 97.283(a)(2);
(3) The unit's baseline heat input under Sec. 97.284(c);
(4) The unit's baseline SO2 emission rate under Sec.
97.284(d);
(5) A statement whether the unit is to be allocated CAIR
SO2 allowances under Sec. 97.288(b) or Sec. 97.288(c)
(subject to the conditions in Sec. Sec. 97.284(h) and 97.286(g));
(6) A statement that the unit may withdraw from the CAIR
SO2 Trading Program only in accordance with Sec. 97.286;
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. 97.287.
(b) Each CAIR opt-in permit is deemed to incorporate automatically
the definitions of terms under Sec. 97.202 and, upon recordation by
the Administrator under subpart FFF or GGG of this part or this
subpart, every allocation, transfer, or deduction of CAIR
SO2 allowances to or from the compliance account of the
source that includes a CAIR SO2 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 SO2 opt-in unit is located and in a title V
operating permit or other federally enforceable permit for the source.
Sec. 97.286 Withdrawal from CAIR SO2 Trading Program.
Except as provided under paragraph (g) of this section, a CAIR
SO2 opt-in unit may withdraw from the CAIR SO2
Trading Program, but only if the permitting authority issues a
notification to the CAIR designated representative of the CAIR
SO2 opt-in unit of the acceptance of the withdrawal of the
CAIR SO2 opt-in unit in accordance with paragraph (d) of
this section.
(a) Requesting withdrawal. In order to withdraw a CAIR
SO2 opt-in unit from the CAIR SO2 Trading
Program, the CAIR designated representative of the CAIR SO2
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 SO2 Trading Program under
Sec. 97.284(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 SO2 opt-in
unit covered by a request under paragraph (a) of this section may
withdraw from the CAIR SO2 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
SO2 opt-in unit must meet the requirement to hold CAIR
SO2 allowances under Sec. 97.206(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 SO2 opt-in unit
CAIR SO2 allowances equal in amount to and allocated for the
same or a prior control period as any CAIR SO2 allowances
allocated to the CAIR SO2 opt-in unit under Sec. 97.288 for
any control period for which the withdrawal is to be effective. If
there are no remaining CAIR SO2 units at the source, the
Administrator will close the compliance account, and the owners and
operators of the CAIR SO2 opt-in unit may submit a CAIR
SO2 allowance transfer for any remaining CAIR SO2
allowances to another CAIR SO2 Allowance Tracking System in
accordance with subpart GGG 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 SO2 allowances required), the
permitting authority will issue a notification to the CAIR designated
representative of the CAIR SO2 opt-in unit of the acceptance
of the withdrawal of the CAIR SO2 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
SO2 opt-in unit that the CAIR SO2 opt-in unit's
request to withdraw is denied. Such CAIR SO2 opt-in unit
shall continue to be a CAIR SO2 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 SO2 opt-in
unit to terminate the CAIR opt-in permit for such unit as of the
effective date specified under paragraph (c)(1) of
[[Page 25442]]
this section. The unit shall continue to be a CAIR SO2 opt-
in unit until the effective date of the termination and shall comply
with all requirements under the CAIR SO2 Trading Program
concerning any control periods for which the unit is a CAIR
SO2 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 SO2 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 SO2 Trading Program. Once a CAIR
SO2 opt-in unit withdraws from the CAIR SO2
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. 97.283 for such CAIR
SO2 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. 97.284.
(g) Inability to withdraw. Notwithstanding paragraphs (a) through
(f) of this section, a CAIR SO2 opt-in unit shall not be
eligible to withdraw from the CAIR SO2 Trading Program if
the CAIR designated representative of the CAIR SO2 opt-in
unit requests, and the permitting authority issues a CAIR opt-in permit
providing for, allocation to the CAIR SO2 opt-in unit of
CAIR SO2 allowances under Sec. 97.288(c).
Sec. 97.287 Change in regulatory status.
(a) Notification. If a CAIR SO2 opt-in unit becomes a
CAIR SO2 unit under Sec. 97.204, then the CAIR designated
representative shall notify in writing the permitting authority and the
Administrator of such change in the CAIR SO2 opt-in unit's
regulatory status, within 30 days of such change.
(b) Permitting authority's and Administrator's actions. (1) If a
CAIR SO2 opt-in unit becomes a CAIR SO2 unit
under Sec. 97.204, the permitting authority will revise the CAIR
SO2 opt-in unit's CAIR opt-in permit to meet the
requirements of a CAIR permit under Sec. 97.223, and remove the CAIR
opt-in permit provisions, as of the date on which the CAIR
SO2 opt-in unit becomes a CAIR SO2 unit under
Sec. 97.204.
(2)(i) The Administrator will deduct from the compliance account of
the source that includes the CAIR SO2 opt-in unit that
becomes a CAIR SO2 unit under Sec. 97.204, CAIR
SO2 allowances equal in amount to and allocated for the same
or a prior control period as:
(A) Any CAIR SO2 allowances allocated to the CAIR
SO2 opt-in unit under Sec. 97.288 for any control period
after the date on which the CAIR SO2 opt-in unit becomes a
CAIR SO2 unit under Sec. 97.204; and
(B) If the date on which the CAIR SO2 opt-in unit
becomes a CAIR SO2 unit under Sec. 97.204 is not December
31, the CAIR SO2 allowances allocated to the CAIR
SO2 opt-in unit under Sec. 97.288 for the control period
that includes the date on which the CAIR SO2 opt-in unit
becomes a CAIR SO2 unit under Sec. 97.204, multiplied by
the ratio of the number of days, in the control period, starting with
the date on which the CAIR SO2 opt-in unit becomes a CAIR
SO2 unit under Sec. 97.204 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 SO2
unit that becomes a CAIR SO2 unit under Sec. 97.204
contains the CAIR SO2 allowances necessary for completion of
the deduction under paragraph (b)(2)(i) of this section.
Sec. 97.288 CAIR SO2 allowance allocations to CAIR
SO2 opt-in units.
(a) Timing requirements. (1) When the CAIR opt-in permit is issued
under Sec. 97.284(e), the permitting authority will allocate CAIR
SO2 allowances to the CAIR SO2 opt-in unit, and
submit to the Administrator the allocation for the control period in
which a CAIR SO2 opt-in unit enters the CAIR SO2
Trading Program under Sec. 97.284(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 SO2 opt-in unit enters the
CAIR SO2 Trading Program under Sec. 97.284(g) and October
31 of each year thereafter, the permitting authority will allocate CAIR
SO2 allowances to the CAIR SO2 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
SO2 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 SO2 opt-in unit is to be allocated CAIR SO2
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. 51.124(r)(1), (2), or (3)
of this chapter and approved by the Administrator:
(1) The heat input (in mmBtu) used for calculating the CAIR
SO2 allowance allocation will be the lesser of:
(i) The CAIR SO2 opt-in unit's baseline heat input
determined under Sec. 97.284(c); or
(ii) The CAIR SO2 opt-in unit's heat input, as
determined in accordance with subpart HHH of this part, for the
immediately prior control period, except when the allocation is being
calculated for the control period in which the CAIR SO2 opt-
in unit enters the CAIR SO2 Trading Program under Sec.
97.284(g).
(2) The SO2 emission rate (in lb/mmBtu) used for
calculating CAIR SO2 allowance allocations will be the lesser of:
(i) The CAIR SO2 opt-in unit's baseline SO2
emissions rate (in lb/mmBtu) determined under Sec. 97.284(d) and
multiplied by 70 percent; or
(ii) The most stringent State or Federal SO2 emissions
limitation applicable to the CAIR SO2 opt-in unit at any
time during the control period for which CAIR SO2 allowances
are to be allocated.
(3) The permitting authority will allocate CAIR SO2
allowances to the CAIR SO2 opt-in unit with a tonnage
equivalent equal to, or less than by the smallest possible amount, the
heat input under paragraph (b)(1) of this section, multiplied by the
SO2 emission rate under paragraph (b)(2) of this section,
and divided by 2,000 lb/ton.
(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. 97.283(a)(5)) providing for, allocation to a CAIR
SO2 opt-in unit of CAIR SO2 allowances under this
paragraph (subject to the conditions in Sec. Sec. 97.284(h) and
97.286(g)), the permitting authority will allocate to the CAIR
SO2 opt-in unit as follows, if provided in a State
implementation plan revision submitted in accordance with Sec.
51.124(r)(1), (2), or (3) of this chapter and approved by the Administrator:
(1) For each control period in 2010 through 2014 for which the CAIR
SO2 opt-in unit is to be allocated CAIR SO2
allowances,
(i) The heat input (in mmBtu) used for calculating CAIR
SO2 allowance allocations will be determined as described in
paragraph (b)(1) of this section.
[[Page 25443]]
(ii) The SO2 emission rate (in lb/mmBtu) used for
calculating CAIR SO2 allowance allocations will be the lesser of:
(A) The CAIR SO2 opt-in unit's baseline SO2
emissions rate (in lb/mmBtu) determined under Sec. 97.284(d); or
(B) The most stringent State or Federal SO2 emissions
limitation applicable to the CAIR SO2 opt-in unit at any
time during the control period in which the CAIR SO2 opt-in
unit enters the CAIR SO2 Trading Program under Sec. 97.284(g).
(iii) The permitting authority will allocate CAIR SO2
allowances to the CAIR SO2 opt-in unit with a tonnage
equivalent equal to, or less than by the smallest possible amount, the
heat input under paragraph (c)(1)(i) of this section, multiplied by the
SO2 emission rate under paragraph (c)(1)(ii) of this
section, and divided by 2,000 lb/ton.
(2) For each control period in 2015 and thereafter for which the
CAIR SO2 opt-in unit is to be allocated CAIR SO2
allowances,
(i) The heat input (in mmBtu) used for calculating the CAIR
SO2 allowance allocations will be determined as described in
paragraph (b)(1) of this section.
(ii) The SO2 emission rate (in lb/mmBtu) used for
calculating the CAIR SO2 allowance allocation will be the
lesser of:
(A) The CAIR SO2 opt-in unit's baseline SO2
emissions rate (in lb/mmBtu) determined under Sec. 97.284(d)
multiplied by 10 percent; or
(B) The most stringent State or Federal SO2 emissions
limitation applicable to the CAIR SO2 opt-in unit at any
time during the control period for which CAIR SO2 allowances
are to be allocated.
(iii) The permitting authority will allocate CAIR SO2
allowances to the CAIR SO2 opt-in unit with a tonnage
equivalent equal to, or less than by the smallest possible amount, the
heat input under paragraph (c)(2)(i) of this section, multiplied by the
SO2 emission rate under paragraph (c)(2)(ii) of this
section, and divided by 2,000 lb/ton.
(d) Recordation. If provided in a State implementation plan
revision submitted in accordance with Sec. 51.124(r)(1), (2), or (3)
of this chapter and approved by the Administrator:
(1) The Administrator will record, in the compliance account of the
source that includes the CAIR SO2 opt-in unit, the CAIR
SO2 allowances allocated by the permitting authority to the
CAIR SO2 opt-in unit under paragraph (a)(1) of this section.
(2) By December 1 of the control period in which a CAIR
SO2 opt-in unit enters the CAIR SO2 Trading
Program under Sec. 97.284(g) and December 1 of each year thereafter,
the Administrator will record, in the compliance account of the source
that includes the CAIR SO2 opt-in unit, the CAIR
SO2 allowances allocated by the permitting authority to the
CAIR SO2 opt-in unit under paragraph (a)(2) of this section.
Appendix A to Subpart III of Part 97--States With Approved State
Implementation Plan Revisions Concerning CAIR SO2 Opt-In Units
1. The following States have State Implementation Plan revisions
under Sec. 51.124(r) of this chapter approved by the Administrator
and establishing procedures providing for CAIR SO2 opt-in
units under subpart III of this part and allocation of CAIR
SO2 allowances to such units under Sec. 97.288(b):
[Reserved]
2. The following States have State Implementation Plan revisions
under Sec. 51.124(r) of this chapter approved by the Administrator
and establishing procedures providing for CAIR SO2 opt-in
units under subpart III of this part and allocation of CAIR
SO2 allowances to such units under Sec. 97.288(c):
[Reserved]
? 5. Part 97 is amended by adding subparts AAAA through IIII to read as
follows:
Subpart AAAA--CAIR NOX Ozone Season Trading Program General
Provisions
Sec.
97.301 Purpose.
97.302 Definitions.
97.303 Measurements, abbreviations, and acronyms.
97.304 Applicability.
97.305 Retired unit exemption.
97.306 Standard requirements.
97.307 Computation of time.
97.308 Appeal procedures.
Appendix A to Subpart AAAA of Part 97--States With Approved State
Implementation Plan Revisions Concerning Applicability
Subpart BBBB--CAIR Designated Representative for CAIR NOX
Ozone Season Sources
97.310 Authorization and responsibilities of CAIR designated
representative.
97.311 Alternate CAIR designated representative.
97.312 Changing CAIR designated representative and alternate CAIR
designated representative; changes in owners and operators.
97.313 Certificate of representation.
97.314 Objections concerning CAIR designated representative.
97.315 Delegation by CAIR designated representative and alternate
CAIR designated representative.
Subpart CCCC--Permits
97.320 General CAIR NOX Ozone Season Trading Program
permit requirements.
97.321 Submission of CAIR permit applications.
97.322 Information requirements for CAIR permit applications.
97.323 CAIR permit contents and term.
97.324 CAIR permit revisions.
Subpart DDDD--[Reserved]
Subpart EEEE--CAIR NOX Ozone Season Allowance Allocations
97.340 State trading budgets.
97.341 Timing requirements for CAIR NOX Ozone Season
allowance allocations.
97.342 CAIR NOX Ozone Season allowance allocations.
97.343 Alternative of allocation of CAIR NOX Ozone Season
allowances by permitting authority.
Appendix A to Subpart EEEE of Part 97--States With Approved State
Implementation Plan Revisions Concerning Allocations
Subpart FFFF--CAIR NOX Ozone Season Allowance Tracking System
97.350 [Reserved]
97.351 Establishment of accounts.
97.352 Responsibilities of CAIR authorized account representative.
97.353 Recordation of CAIR NOX Ozone Season allowance
allocations.
97.354 Compliance with CAIR NOX emissions limitation.
97.355 Banking.
97.356 Account error.
97.357 Closing of general accounts.
Subpart GGGG--CAIR NOX Ozone Season Allowance Transfers
97.360 Submission of CAIR NOX Ozone Season allowance transfers.
97.361 EPA recordation.
97.362 Notification.
Subpart HHHH--Monitoring and Reporting
97.370 General requirements.
97.371 Initial certification and recertification procedures.
97.372 Out of control periods.
97.373 Notifications.
97.374 Recordkeeping and reporting.
97.375 Petitions.
Subpart IIII--CAIR NOX Ozone Season Opt-in Units
97.380 Applicability.
97.381 General.
97.382 CAIR designated representative.
97.383 Applying for CAIR opt-in permit.
97.384 Opt-in process.
97.385 CAIR opt-in permit contents.
97.386 Withdrawal from CAIR NOX Ozone Season Trading
Program.
97.387 Change in regulatory status.
97.388 CAIR NOX Ozone Season allowance allocations to
CAIR NOX Ozone Season opt-in units.
[[Page 25444]]
Appendix A to Subpart IIII of Part 97--States With Approved State
Implementation Plan Revisions Concerning CAIR NOX Ozone
Season Opt-In Units
Subpart AAAA--CAIR NOX Ozone Season Trading Program
General Provisions
Sec. 97.301 Purpose.
This subpart and subparts BBBB through IIII set forth the general
provisions and the designated representative, permitting, allowance,
monitoring, and opt-in provisions for the Federal Clean Air Interstate
Rule (CAIR) NOX Ozone Season 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 ozone and nitrogen oxides.
Sec. 97.302 Definitions.
The terms used in this subpart and subparts BBBB through IIII shall
have the meanings set forth in this section as follows:
Account number means the identification number given by the
Administrator to each CAIR NOX Ozone Season 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 NOX
Ozone Season allowances, the determination by a permitting authority or
the Administrator of the amount of such CAIR NOX Ozone
Season allowances to be initially credited to a CAIR NOX
Ozone Season unit, a new unit set-aside, or other entity.
Allowance transfer deadline means, for a control period, 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),
immediately following the control period and is the deadline by which a
CAIR NOX Ozone Season allowance transfer must be submitted
for recordation in a CAIR NOX Ozone Season source's
compliance account in order to be used to meet the source's CAIR
NOX Ozone Season emissions limitation for such control
period in accordance with Sec. 97.354.
Alternate CAIR designated representative means, for a CAIR
NOX Ozone Season source and each CAIR NOX Ozone
Season 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 BBBB and IIII of this part, to act on behalf
of the CAIR designated representative in matters pertaining to the CAIR
NOX Ozone Season Trading Program. If the CAIR NOX
Ozone Season source is also a CAIR NOX source, then this
natural person shall be the same person as the alternate CAIR
designated representative under the CAIR NOX Annual Trading
Program. If the CAIR NOX Ozone Season 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 NOX Ozone Season
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 NOX
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.
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 HHHH 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 HHHH of this part.
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 BBBB, FFFF, and IIII of this part, to transfer
and otherwise dispose of CAIR NOX Ozone Season 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 NOX
Ozone Season source and each CAIR NOX Ozone Season 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 BBBB and IIII of this part, to represent and legally bind
each owner and operator in matters pertaining to the CAIR
NOX Ozone Season Trading Program. If the CAIR NOX
Ozone Season source is also a CAIR NOX source, then this
natural person shall be the same person as the CAIR designated
representative under the CAIR NOX Annual Trading Program. If
the CAIR NOX Ozone Season 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 NOX Ozone Season
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 NOX 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.
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 Ozone Season allowance means a limited authorization
issued by a permitting authority or the Administrator under subpart
EEEE of this part, Sec. 97.388, or 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, 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 NOX Ozone Season Trading Program
or a limited authorization issued by a
[[Page 25445]]
permitting authority for a control period during 2003 through 2008
under the NOX 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 NOX Budget
Trading Program. An authorization to emit nitrogen oxides that is not
issued under subpart EEEE of this part, Sec. 97.388, or 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
the NOX Budget Trading Program as described in the prior
sentence shall not be a CAIR NOX Ozone Season allowance.
CAIR NOX Ozone Season allowance deduction or deduct CAIR NOX Ozone
Season allowances means the permanent withdrawal of CAIR NOX
Ozone Season 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 NOX Ozone Season
units at a CAIR NOX Ozone Season source for a control
period, determined in accordance with subpart HHHH of this part, or to
account for excess emissions.
CAIR NOX Ozone Season Allowance Tracking System means the system by
which the Administrator records allocations, deductions, and transfers
of CAIR NOX Ozone Season allowances under the CAIR
NOX Ozone Season Trading Program. Such allowances will be
allocated, held, deducted, or transferred only as whole allowances.
CAIR NOX Ozone Season Allowance Tracking System account means an
account in the CAIR NOX Ozone Season Allowance Tracking
System established by the Administrator for purposes of recording the
allocation, holding, transferring, or deducting of CAIR NOX
Ozone Season allowances.
CAIR NOX Ozone Season allowances held or hold CAIR NOX
Ozone Season allowances means the CAIR NOX Ozone Season
allowances recorded by the Administrator, or submitted to the
Administrator for recordation, in accordance with subparts FFFF, GGGG,
and IIII of this part, in a CAIR NOX Ozone Season Allowance
Tracking System account.
CAIR NOX Ozone Season emissions limitation means, for a CAIR
NOX Ozone Season source, the tonnage equivalent, in
NOX emissions in a control period, of the CAIR
NOX Ozone Season allowances available for deduction for the
source under Sec. 97.354(a) and (b) for the control period.
CAIR NOX Ozone Season source means a source that includes one or
more CAIR NOX Ozone Season units.
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 Ozone Season unit means a unit that is subject to the CAIR
NOX Ozone Season Trading Program under Sec. 97.304 and,
except for purposes of Sec. 97.305 and subpart EEEE of this part, a CAIR
NOX Ozone Season opt-in unit under subpart IIII of this part.
CAIR NOX source means a source that is subject to the CAIR
NOX 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 CCCC of this part, including any permit
revisions, specifying the CAIR NOX Ozone Season Trading
Program requirements applicable to a CAIR NOX Ozone Season
source, to each CAIR NOX Ozone Season 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:
(1) Except for purposes of subpart EEEE 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 EEEE 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
[[Page 25446]]
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. 97.305 and Sec. 97.384(h).
(i) For a unit that is a CAIR NOX 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 operation of the
unit, which shall continue to be treated as the same unit.
(ii) For a unit that is a CAIR NOX 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 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), (2),
or (3) of this definition as appropriate.
(2) Notwithstanding paragraph (1) of this definition and except as
provided in Sec. 97.305, for a unit that is not a CAIR NOX
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, the unit's date for commencement of
commercial operation shall be the date on which the unit becomes a CAIR
NOX Ozone Season unit under Sec. 97.304.
(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), (2), or (3) of this definition
as appropriate.
(3) Notwithstanding paragraphs (1) and (2) of this definition, for
a unit not serving a generator producing electricity for sale, the
unit's date of commencement of operation shall also be the unit's date
of commencement of commercial operation.
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. 97.384(h).
(i) 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.
(ii) 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) or (2) of this
definition as appropriate, except as provided in Sec. 97.384(h).
(2) Notwithstanding paragraph (1) of this definition and solely for
purposes of subpart HHHH of this part, for a unit that is not a CAIR
NOX Ozone Season unit under Sec. 97.304(d) on the later of
November 15, 1990 or the date the unit commences operation as defined
in paragraph (1) of this definition and subsequently becomes such a
CAIR NOX Ozone Season unit, the unit's date for commencement
of operation shall be the date on which the unit becomes a CAIR
NOX Ozone Season unit under Sec. 97.304(d).
(i) For a unit with a date for commencement of 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
operation of the unit, which shall continue to be treated as the same unit.
(ii) For a unit with a date for commencement of 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 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)
or (2) of this definition as appropriate.
Common stack means a single flue through which emissions from 2 or
more units are exhausted.
Compliance account means a CAIR NOX Ozone Season
Allowance Tracking System account, established by the Administrator for
a CAIR NOX Ozone Season source under subpart FFFF or IIII of
this part, in which any CAIR NOX Ozone Season allowance
allocations for the CAIR NOX Ozone Season units at the
source are initially recorded and in which are held any CAIR
NOX Ozone Season allowances available for use for a control
period in order to meet the source's CAIR NOX Ozone Season
emissions limitation in accordance with Sec. 97.354.
Continuous emission monitoring system or CEMS means the equipment
required under subpart HHHH 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 HHHH 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 NOX pollutant concentration monitor and an automated
data acquisition and handling system and providing a permanent,
continuous record of NOX emissions, in parts per million (ppm);
(3) A nitrogen oxides emission rate (or NOX-diluent)
monitoring system, consisting of a NOX 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 NOX
concentration, in parts per million (ppm), diluent gas concentration,
in percent CO2 or O2, and NOX emission
rate, in pounds per million British thermal units (lb/mmBtu);
[[Page 25447]]
(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 or ozone season means the period beginning May 1 of
a calendar year, except as provided in Sec. 97.306(c)(2) and ending on
September 30 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 HHHH of this part.
Excess emissions means any ton of nitrogen oxides emitted by the
CAIR NOX Ozone Season units at a CAIR NOX Ozone
Season source during a control period that exceeds the CAIR
NOX Ozone Season 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 NOX Ozone Season Allowance
Tracking System account, established under subpart FFFF 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 HHHH 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 HHHH 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 NOX emissions limitation means,
with regard to a unit, the lowest NOX 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 EEEE 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 NOX Ozone Season unit or a CAIR NOX Ozone
Season 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 NOX Ozone Season source or a
CAIR NOX Ozone Season unit at a source, respectively:
(i) Any holder of any portion of the legal or equitable title in a
CAIR NOX Ozone Season unit at the source or the CAIR
NOX Ozone Season unit;
(ii) Any holder of a leasehold interest in a CAIR NOX
Ozone Season unit at the source or the CAIR NOX Ozone Season
unit; or
(iii) Any purchaser of power from a CAIR NOX Ozone
Season unit at the source or the CAIR NOX Ozone Season 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
[[Page 25448]]
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 NOX Ozone Season unit; or
(2) With regard to any general account, any person who has an
ownership interest with respect to the CAIR NOX Ozone Season
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
NOX Ozone Season 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 NOX Ozone Season Trading Program in accordance with
subpart CCCC 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
NOX Ozone Season allowances, the movement of CAIR
NOX Ozone Season allowances by the Administrator into or
between CAIR NOX Ozone Season 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 ( 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 NOX Ozone Season
allowance, the unique identification number assigned to each CAIR
NOX Ozone Season 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 NOX Ozone Season Trading Program
pursuant to ( 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 NOX Ozone Season 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 HHHH 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;
[[Page 25449]]
(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. 97.303 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.
NOX--nitrogen oxides.
O2--oxygen.
ppm--parts per million.
scfh--standard cubic feet per hour.
SO2--sulfur dioxide.
yr--year.
Sec. 97.304 Applicability.
(a) Except as provided in paragraph (b) of this section:
(1) The following units in a State shall be CAIR NOX
Ozone Season units, and any source that includes one or more such units
shall be a CAIR NOX 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 NOX
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 NOX 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 NOX Ozone Season units:
(1)(i) Any unit that is a CAIR NOX 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 at
least one calendar year, but subsequently no longer meets all such
requirements, the unit shall become a CAIR NOX 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 NOX 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 NOX 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
NOX 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.
(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 NOX Ozone Season 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 NOX Ozone Season Trading Program to the unit shall be
binding on the permitting authority unless the petition or other
information or documents provided in connection with
[[Page 25450]]
the petition are found to have contained significant, relevant errors
or omissions.
(d) Notwithstanding paragraphs (a) and (b) of this section, if a
State submits, and the Administrator approves, a State implementation
plan revision in accordance with Sec. 51.123(ee)(1) of this chapter
providing for the inclusion in the CAIR NOX Ozone Season
Trading Program of all units that are not otherwise CAIR NOX
Ozone Season units under paragraphs (a) and (b) of this section and
that are NOX Budget units covered by the State's emissions
trading program approved under Sec. 51.121(p) of this chapter, such
units shall be CAIR NOX Ozone Season units as of the first
date that they are NOX Budget units under the NOX
Budget Trading Program under Sec. 51.121(p) of this chapter.
Sec. 97.305 Retired unit exemption.
(a)(1) Any CAIR NOX Ozone Season unit that is
permanently retired and is not a CAIR NOX Ozone Season opt-
in unit under subpart IIII of this part shall be exempt from the CAIR
NOX Ozone Season Trading Program, except for the provisions
of this section, Sec. Sec. 97.302, 97.303, 97.304, 97.306(c)(4)
through (7), 97.307, 97.308, and subparts BBBB and EEEE through GGGG of
this part.
(2) The exemption under paragraph (a)(1) of this section shall
become effective the day on which the CAIR NOX Ozone Season
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
CCCC 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 NOX Ozone Season allowances under subpart EEEE 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
NOX Ozone Season 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. 97.322 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 HHHH 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. 97.306 Standard requirements.
(a) Permit requirements. (1) The CAIR designated representative of
each CAIR NOX Ozone Season source required to have a title V
operating permit and each CAIR NOX Ozone Season 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. 97.322 in accordance with the deadlines
specified in Sec. 97.321; 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 NOX Ozone
Season source required to have a title V operating permit and each CAIR
NOX Ozone Season unit required to have a title V operating
permit at the source shall have a CAIR permit issued by the permitting
authority under subpart CCCC 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 IIII of this part, the owners and
operators of a CAIR NOX Ozone Season source that is not
otherwise required to have a title V operating permit and each CAIR
NOX Ozone Season 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 CCCC of this part
for such CAIR NOX Ozone Season source and such CAIR
NOX Ozone Season unit.
(b) Monitoring, reporting, and recordkeeping requirements. (1) The
owners and operators, and the CAIR designated representative, of each
CAIR NOX Ozone Season source and each CAIR NOX
Ozone Season unit at the source shall comply with the monitoring,
reporting, and recordkeeping requirements of subpart HHHH of this part.
(2) The emissions measurements recorded and reported in accordance
with subpart HHHH of this part shall be used to determine compliance by
each CAIR NOX Ozone Season source with the CAIR
NOX Ozone Season emissions limitation under paragraph (c) of
this section.
(c) Nitrogen oxides ozone season emission requirements. (1) As of
the allowance transfer deadline for a control period, the owners and
operators of each CAIR NOX Ozone Season source and each CAIR
NOX Ozone Season unit at the source shall hold, in the
source's compliance account, CAIR NOX Ozone Season
allowances available for compliance deductions for the control period
under Sec. 97.354(a) in an amount not less than the tons of total
nitrogen oxides emissions for the control period
[[Page 25451]]
from all CAIR NOX Ozone Season units at the source, as
determined in accordance with subpart HHHH of this part.
(2) A CAIR NOX Ozone Season unit shall be subject to the
requirements under paragraph (c)(1) of this section for the control
period starting on the later of May 1, 2009 or the deadline for meeting
the unit's monitor certification requirements under Sec. 97.370(b)(1),
(2), (3), or (7) and for each control period thereafter.
(3) A CAIR NOX Ozone Season 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 NOX Ozone Season allowance was
allocated.
(4) CAIR NOX Ozone Season allowances shall be held in,
deducted from, or transferred into or among CAIR NOX Ozone
Season Allowance Tracking System accounts in accordance with subparts
EEEE, FFFF, GGGG, and IIII of this part.
(5) A CAIR NOX Ozone Season allowance is a limited
authorization to emit one ton of nitrogen oxides in accordance with the
CAIR NOX Ozone Season Trading Program. No provision of the
CAIR NOX Ozone Season Trading Program, the CAIR permit
application, the CAIR permit, or an exemption under Sec. 97.305 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 NOX Ozone Season allowance does not
constitute a property right.
(7) Upon recordation by the Administrator under subpart EEEE, FFFF,
GGGG, or IIII of this part, every allocation, transfer, or deduction of
a CAIR NOX Ozone Season allowance to or from a CAIR
NOX Ozone Season source's compliance account is incorporated
automatically in any CAIR permit of the source.
(d) Excess emissions requirements. If a CAIR NOX Ozone
Season source emits nitrogen oxides during any control period in excess
of the CAIR NOX Ozone Season emissions limitation, then:
(1) The owners and operators of the source and each CAIR
NOX Ozone Season unit at the source shall surrender the CAIR
NOX Ozone Season allowances required for deduction under
Sec. 97.354(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 NOX Ozone
Season source and each CAIR NOX Ozone Season 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. 97.313 for the
CAIR designated representative for the source and each CAIR
NOX Ozone Season 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. 97.313 changing the CAIR designated
representative.
(ii) All emissions monitoring information, in accordance with
subpart HHHH of this part, provided that to the extent that subpart
HHHH 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
NOX Ozone Season Trading Program.
(iv) Copies of all documents used to complete a CAIR permit
application and any other submission under the CAIR NOX
Ozone Season Trading Program or to demonstrate compliance with the
requirements of the CAIR NOX Ozone Season Trading Program.
(2) The CAIR designated representative of a CAIR NOX
Ozone Season source and each CAIR NOX Ozone Season unit at
the source shall submit the reports required under the CAIR
NOX Ozone Season Trading Program, including those under
subpart HHHH of this part.
(f) Liability. (1) Each CAIR NOX Ozone Season source and
each CAIR NOX Ozone Season unit shall meet the requirements
of the CAIR NOX Ozone Season Trading Program.
(2) Any provision of the CAIR NOX Ozone Season Trading
Program that applies to a CAIR NOX Ozone Season source or
the CAIR designated representative of a CAIR NOX Ozone
Season source shall also apply to the owners and operators of such
source and of the CAIR NOX Ozone Season units at the source.
(3) Any provision of the CAIR NOX Ozone Season Trading
Program that applies to a CAIR NOX Ozone Season unit or the
CAIR designated representative of a CAIR NOX Ozone Season
unit shall also apply to the owners and operators of such unit.
(g) Effect on other authorities. No provision of the CAIR
NOX Ozone Season Trading Program, a CAIR permit application,
a CAIR permit, or an exemption under Sec. 97.305 shall be construed as
exempting or excluding the owners and operators, and the CAIR
designated representative, of a CAIR NOX Ozone Season source
or CAIR NOX Ozone Season unit from compliance with any other
provision of the applicable, approved State implementation plan, a
federally enforceable permit, or the Clean Air Act.
Sec. 97.307 Computation of time.
(a) Unless otherwise stated, any time period scheduled, under the
CAIR NOX Ozone Season 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 NOX Ozone Season 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 NOX Ozone Season Trading Program, falls on a
weekend or a State or Federal holiday, the time period shall be
extended to the next business day.
Sec. 97.308 Appeal procedures.
The appeal procedures for decisions of the Administrator under the
CAIR NOX Ozone Season Trading Program are set forth in part
78 of this chapter.
Appendix A to Subpart AAAA of Part 97--States With Approved State
Implementation Plan Revisions Concerning Applicability
The following States have State Implementation Plan revisions
under Sec. 51.123(ee)(1) of this chapter approved by the
Administrator and providing for expansion of the applicability
provisions to include all non-EGUs subject to the respective State's
emission trading program approved under Sec. 51.121(p) of this chapter:
[Reserved]
[[Page 25452]]
Subpart BBBB--CAIR Designated Representative for CAIR
NOX Ozone Season Sources
Sec. 97.310 Authorization and responsibilities of CAIR designated
representative.
(a) Except as provided under Sec. 97.311, each CAIR NOX
Ozone Season source, including all CAIR NOX Ozone Season
units at the source, shall have one and only one CAIR designated
representative, with regard to all matters under the CAIR
NOX Ozone Season Trading Program concerning the source or
any CAIR NOX Ozone Season unit at the source.
(b) The CAIR designated representative of the CAIR NOX
Ozone Season source shall be selected by an agreement binding on the
owners and operators of the source and all CAIR NOX Ozone
Season units at the source and shall act in accordance with the
certification statement in Sec. 97.313(a)(4)(iv).
(c) Upon receipt by the Administrator of a complete certificate of
representation under Sec. 97.313, 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 NOX Ozone Season source represented and
each CAIR NOX Ozone Season unit at the source in all matters
pertaining to the CAIR NOX Ozone Season 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 NOX Ozone Season Allowance Tracking
System account will be established for a CAIR NOX Ozone
Season unit at a source, until the Administrator has received a
complete certificate of representation under Sec. 97.313 for a CAIR
designated representative of the source and the CAIR NOX
Ozone Season units at the source.
(e)(1) Each submission under the CAIR NOX Ozone Season
Trading Program shall be submitted, signed, and certified by the CAIR
designated representative for each CAIR NOX Ozone Season
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 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
NOX Ozone Season source or a CAIR NOX Ozone
Season unit only if the submission has been made, signed, and certified
in accordance with paragraph (e)(1) of this section.
Sec. 97.311 Alternate CAIR designated representative.
(a) A certificate of representation under Sec. 97.313 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. 97.313, 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. 97.302, 97.310(a) and
(d), 97.312, 97.313, 97.315, 97.351, and 97.382, whenever the term
``CAIR designated representative'' is used in subparts AAAA through
IIII of this part, the term shall be construed to include the CAIR
designated representative or any alternate CAIR designated representative.
Sec. 97.312 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. 97.313. 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 NOX Ozone Season source and
the CAIR NOX Ozone Season 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. 97.313. 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 NOX
Ozone Season source and the CAIR NOX Ozone Season units at
the source.
(c) Changes in owners and operators. (1) In the event an owner or
operator of a CAIR NOX Ozone Season source or a CAIR
NOX Ozone Season unit is not included in the list of owners
and operators in the certificate of representation under Sec. 97.313,
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 NOX Ozone Season source or a CAIR NOX
Ozone Season 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. 97.313 amending the list of owners and
operators to include the change.
Sec. 97.313 Certificate of representation.
(a) A complete certificate of representation for a CAIR designated
representative or an alternate CAIR designated representative shall include
[[Page 25453]]
the following elements in a format prescribed by the Administrator:
(1) Identification of the CAIR NOX Ozone Season source,
and each CAIR NOX Ozone Season 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 NOX
Ozone Season source and of each CAIR NOX Ozone Season 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 NOX Ozone Season unit at the source.''
(ii) ``I certify that I have all the necessary authority to carry
out my duties and responsibilities under the CAIR NOX Ozone
Season Trading Program on behalf of the owners and operators of the
source and of each CAIR NOX Ozone Season 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 NOX Ozone Season 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 NOX Ozone
Season unit, or where a utility or industrial customer purchases power
from a CAIR NOX Ozone Season 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 NOX Ozone Season unit at the source;
and CAIR NOX Ozone Season allowances and proceeds of
transactions involving CAIR NOX Ozone Season 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 NOX Ozone Season allowances
by contract, CAIR NOX Ozone Season allowances and proceeds
of transactions involving CAIR NOX Ozone Season 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
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. 97.314 Objections concerning CAIR designated representative.
(a) Once a complete certificate of representation under Sec.
97.313 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. 97.313 is received by the Administrator.
(b) Except as provided in Sec. 97.312(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
NOX Ozone Season 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 NOX Ozone Season allowance transfers.
Sec. 97.315 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
97.315(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 97.315(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 97.315 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
[[Page 25454]]
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 CCCC--Permits
Sec. 97.320 General CAIR NOX Ozone Season Trading Program
permit requirements.
(a) For each CAIR NOX Ozone Season source required to
have a title V operating permit or required, under subpart IIII 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. 97.305, this subpart, and subpart IIII of this part.
(b) Each CAIR permit shall contain, with regard to the CAIR
NOX Ozone Season source and the CAIR NOX Ozone
Season units at the source covered by the CAIR permit, all applicable
CAIR NOX Ozone Season Trading Program, CAIR NOX
Annual 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. 97.321 Submission of CAIR permit applications.
(a) Duty to apply. The CAIR designated representative of any CAIR
NOX Ozone Season source required to have a title V operating
permit shall submit to the permitting authority a complete CAIR permit
application under Sec. 97.322 for the source covering each CAIR
NOX Ozone Season 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 NOX Ozone
Season unit commences commercial operation, except as provided in Sec.
97.383(a).
(b) Duty to reapply. For a CAIR NOX Ozone Season source
required to have a title V operating permit, the CAIR designated
representative shall submit a complete CAIR permit application under
Sec. 97.322 for the source covering each CAIR NOX Ozone
Season 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. 97.383(b).
Sec. 97.322 Information requirements for CAIR permit applications.
A complete CAIR permit application shall include the following
elements concerning the CAIR NOX Ozone Season source for
which the application is submitted, in a format prescribed by the
permitting authority:
(a) Identification of the CAIR NOX Ozone Season source;
(b) Identification of each CAIR NOX Ozone Season unit at
the CAIR NOX Ozone Season source; and
(c) The standard requirements under Sec. 97.306.
Sec. 97.323 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. 97.322.
(b) Each CAIR permit is deemed to incorporate automatically the
definitions of terms under Sec. 97.302 and, upon recordation by the
Administrator under subpart EEEE, FFFF, GGGG, or IIII of this part,
every allocation, transfer, or deduction of a CAIR NOX Ozone
Season allowance to or from the compliance account of the CAIR
NOX Ozone Season 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
NOX Ozone Season source's title V operating permit or other
federally enforceable permit as applicable.
Sec. 97.324 CAIR permit revisions.
Except as provided in Sec. 97.323(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 DDDD--[Reserved]
Subpart EEEE--CAIR NOX Ozone Season Allowance Allocations
Sec. 97.340 State trading budgets.
(a) Except as provided in paragraph (b) of this section, the State
trading budgets for annual allocations of CAIR NOX Ozone
Season 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................................. 32,182 26,818
Arkansas................................ 11,515 9,597
Connecticut............................. 2,559 2,559
Delaware................................ 2,226 1,855
District of Columbia.................... 112 94
Florida................................. 47,912 39,926
Illinois................................ 30,701 28,981
Indiana................................. 45,952 39,273
Iowa.................................... 14,263 11,886
Kentucky................................ 36,045 30,587
Louisiana............................... 17,085 14,238
Maryland................................ 12,834 10,695
[[Page 25455]]
Massachusetts........................... 7,551 6,293
Michigan................................ 28,971 24,142
Mississippi............................. 8,714 7,262
Missouri................................ 26,678 22,231
New Jersey.............................. 6,654 5,545
New York................................ 20,632 17,193
North Carolina.......................... 28,392 23,660
Ohio.................................... 45,664 39,945
Pennsylvania............................ 42,171 35,143
South Carolina.......................... 15,249 12,707
Tennessee............................... 22,842 19,035
Virginia................................ 15,994 13,328
West Virginia........................... 26,859 26,525
Wisconsin............................... 17,987 14,989
------------------------------------------------------------------------
(b) Upon approval by the Administrator of a State's State
implementation plan revision under Sec. 51.123(ee)(1) of this chapter
providing for the inclusion in the CAIR NOX Ozone Season
Trading Program of all units that are not otherwise CAIR NOX
Ozone Season units under Sec. 97.304(a) and (b) and that are
NOX Budget units covered by the State's emissions trading
program approved under Sec. 51.121(p), the amount in the State trading
budget for a control period in a calendar year will be the sum of the
amount set forth for the State and for the year in paragraph (a) of
this section and the amount of additional CAIR NOX Ozone
Season allowance allocations issued under Sec. 51.123(ee)(1)(ii)(A) of
this chapter for the year.
Sec. 97.341 Timing requirements for CAIR NOX Ozone Season
allowance allocations.
(a) The Administrator will determine by order the CAIR
NOX Ozone Season allowance allocations, in accordance with
Sec. 97.342(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 NOX Ozone
Season allowance allocations, in accordance with Sec. 97.342(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 April 30, 2009 and April 30 of each year thereafter, the
Administrator will determine by order the CAIR NOX Ozone
Season allowance allocations, in accordance with Sec. 97.342(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 NOX Ozone Season 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. 97.342. Based on any such objections, the
Administrator will adjust each determination to the extent necessary to
ensure that it is in accordance with Sec. 97.342.
Sec. 97.342 CAIR NOX Ozone Season allowance allocations.
(a)(1) The baseline heat input (in mmBtu) used with respect to CAIR
NOX Ozone Season allowance allocations under paragraph (b)
of this section for each CAIR NOX Ozone Season 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 NOX emissions
during a control period in 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,
[[Page 25456]]
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 NOX Ozone Season
units in a State that have a baseline heat input (as determined under
paragraph (a) of this section) a total amount of CAIR NOX
Ozone Season 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 NOX emissions in the applicable
State trading budget under Sec. 97.340 (except as provided in
paragraphs (d) and (e) of this section).
(2) The Administrator will allocate CAIR NOX Ozone
Season allowances to each CAIR NOX Ozone Season unit under
paragraph (b)(1) of this section in an amount determined by multiplying
the total amount of CAIR NOX Ozone Season allowances
allocated under paragraph (b)(1) of this section by the ratio of the
baseline heat input of such CAIR NOX Ozone Season unit to
the total amount of baseline heat input of all such CAIR NOX
Ozone Season 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 NOX Ozone Season allowances
to CAIR NOX Ozone Season units in a State that are not
allocated CAIR NOX 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 NOX Ozone Season 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
NOX Ozone Season 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 NOX emissions in
the applicable State trading budget under Sec. 97.340.
(2) The CAIR designated representative of such a CAIR
NOX Ozone Season unit may submit to the Administrator a
request, in a format specified by the Administrator, to be allocated
CAIR NOX Ozone Season allowances, starting with the later of
the control period in 2009 or the first control period after the
control period in which the CAIR NOX Ozone Season unit
commences commercial operation and until the first control period for
which the unit is allocated CAIR NOX Ozone Season allowances
under paragraph (b) of this section. A separate CAIR NOX
Ozone Season allowance allocation request for each control period for
which CAIR NOX Ozone Season allowances are sought must be
submitted on or before February 1 before such control period and after
the date on which the CAIR NOX Ozone Season unit commences
commercial operation.
(3) In a CAIR NOX Ozone Season allowance allocation
request under paragraph (c)(2) of this section, the CAIR designated
representative may request for a control period CAIR NOX
Ozone Season allowances in an amount not exceeding the CAIR
NOX Ozone Season unit(s total tons of NOX emissions
during the control period immediately before such control period.
(4) The Administrator will review each CAIR NOX Ozone
Season allowance allocation request under paragraph (c)(2) of this
section and will allocate CAIR NOX Ozone Season 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 February 1 before the control period, the
Administrator will determine the sum of the CAIR NOX Ozone
Season allowances requested (as adjusted under 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 NOX Ozone Season 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 NOX Ozone
Season allowances requested (as adjusted under paragraph (c)(4)(i) of
this section) to each CAIR NOX Ozone Season unit covered by
an allowance allocation request accepted under paragraph (c)(4)(i) of
this section.
(iv) If the amount of CAIR NOX Ozone Season 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 NOX Ozone Season unit covered by an
allowance allocation request accepted under paragraph (c)(4)(i) of this
section the amount of the CAIR NOX Ozone Season allowances
requested (as adjusted under paragraph (c)(4)(i) of this section),
multiplied by the amount of CAIR NOX Ozone Season 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 NOX Ozone Season allowances (if any)
allocated for the control period to the CAIR NOX Ozone
Season 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
NOX Ozone Season 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 NOX Ozone
Season unit that was allocated CAIR NOX Ozone Season
allowances under paragraph (b) of this section in the State an amount
of CAIR NOX Ozone Season allowances equal to the total
amount of such remaining unallocated CAIR NOX Ozone Season
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 NOX emissions in the
applicable State trading budget under Sec. 97.340, and rounded to the
nearest whole allowance as appropriate.
(e) If the Administrator determines that CAIR NOX Ozone
Season allowances were allocated under paragraphs (a) and (b) of this
section,
[[Page 25457]]
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 NOX Ozone Season unit under Sec.
97.304 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 NOX Ozone Season
allowances under Sec. 97.353.
(2) If the Administrator already recorded such CAIR NOX
Ozone Season allowances under Sec. 97.353 and if the Administrator
makes such determinations before making deductions for the source that
includes such recipient under Sec. 97.354(b) for the control period,
then the Administrator will deduct from the account in which such CAIR
NOX Ozone Season allowances were recorded under Sec. 97.353
an amount of CAIR NOX Ozone Season allowances allocated for
the same or a prior control period equal to the amount of such already
recorded CAIR NOX Ozone Season allowances. The CAIR
designated representative shall ensure that there are sufficient CAIR
NOX Ozone Season allowances in such account for completion
of the deduction.
(3) If the Administrator already recorded such CAIR NOX
Ozone Season allowances under Sec. 97.353 and if the Administrator
makes such determinations after making deductions for the source that
includes such recipient under Sec. 97.354(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 NOX Ozone Season allowances were allocated to such recipient.
(4) The Administrator will transfer the CAIR NOX Ozone
Season 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. 97.343 Alternative of allocation of CAIR NOX Ozone
Season allowances by permitting authority.
(a) Notwithstanding Sec. Sec. 97.341, 97.342, and 97.353 if a
State submits, and the Administrator approves, a State implementation
plan revision in accordance with Sec. 51.123(ee)(2) of this chapter
providing for allocation of CAIR NOX Ozone Season 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. 97.341 and 97.342 for the CAIR NOX Ozone Season
units in the State, and under Sec. 97.353, the Administrator will
record allocations made under such approved State implementation plan
revision instead of allocations under Sec. Sec. 97.341 and 97.342.
(b) In implementing paragraph(a) of this section and Sec. Sec.
97.341, 97.342, and 97.353, the Administrator will ensure that the
total amount of CAIR NOX Ozone Season allowances allocated,
under such provisions and under a State's State implementation plan
revision approved in accordance with Sec. 51.123(ee)(2) of this
chapter, for a control period for CAIR NOX Ozone Season
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.
Appendix A to Subpart EEEE of Part 97--States With Approved State
Implementation Plan Revisions Concerning Allocations
The following States have State Implementation Plan revisions
under Sec. 51.123(ee)(2) of this chapter approved by the
Administrator and providing for allocation of CAIR NOX
Ozone Season allowances by the permitting authority under Sec. 97.344(a):
[Reserved]
Subpart FFFF--CAIR NOX Ozone Season Allowance Tracking System
Sec. 97.350 [Reserved]
Sec. 97.351 Establishment of accounts.
(a) Compliance accounts. Except as provided in Sec. 97.384(e),
upon receipt of a complete certificate of representation under Sec.
97.313, the Administrator will establish a compliance account for the
CAIR NOX Ozone Season 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 NOX Ozone Season 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 NOX Ozone Season 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
NOX Ozone Season 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 NOX Ozone Season 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
[[Page 25458]]
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 NOX Ozone Season allowances held in the
general account in all matters pertaining to the CAIR NOX
Ozone Season 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
NOX Ozone Season 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 NOX Ozone Season
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 and the persons with an ownership interest with
respect to the CAIR NOX Ozone Season 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 NOX Ozone Season
allowances in the general account.
(iii)(A) In the event a person having an ownership interest with
respect to CAIR NOX Ozone Season 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 NOX Ozone Season
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 NOX Ozone
Season 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
NOX Ozone Season 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 NOX Ozone Season 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 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.
[[Page 25459]]
(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 97.351(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 97.351(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 97.351(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.
(c) Account identification. The Administrator will assign a unique
identifying number to each account established under paragraph (a) or
(b) of this section.
Sec. 97.352 Responsibilities of CAIR authorized account representative.
Following the establishment of a CAIR NOX Ozone Season
Allowance Tracking System account, all submissions to the Administrator
pertaining to the account, including, but not limited to, submissions
concerning the deduction or transfer of CAIR NOX Ozone
Season allowances in the account, shall be made only by the CAIR
authorized account representative for the account.
Sec. 97.353 Recordation of CAIR NOX Ozone Season allowance
allocations.
(a) By September 30, 2007, the Administrator will record in the
CAIR NOX Ozone Season sources compliance account the CAIR
NOX Ozone Season allowances allocated for the CAIR
NOX Ozone Season units at the source in accordance with
Sec. 97.342(a) and (b) for the control period in 2009.
(b) By September 30, 2008, the Administrator will record in the
CAIR NOX Ozone Season source's compliance account the CAIR
NOX Ozone Season allowances allocated for the CAIR
NOX Ozone Season units at the source in accordance with
Sec. 97.342(a) and (b) for the control period in 2010.
(c) By September 30, 2009, the Administrator will record in the
CAIR NOX Ozone Season source's compliance account the CAIR
Ozone Season NOX allowances allocated for the CAIR
NOX Ozone Season units at the source in accordance with
Sec. 97.342(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 NOX Ozone Season
source's compliance account the CAIR NOX Ozone Season
allowances allocated for the CAIR NOX Ozone Season units at
the source in accordance with Sec. 97.342(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 September 1, 2009 and September 1 of each year thereafter,
the Administrator will record in the CAIR NOX Ozone Season
source's compliance account the CAIR NOX Ozone Season
allowances allocated for the CAIR NOX Ozone Season units at
the source in accordance with Sec. 97.342(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 Ozone Season allowances.
When recording the allocation of CAIR NOX Ozone Season
allowances for a CAIR NOX Ozone Season unit in a compliance
account, the Administrator will assign each CAIR NOX Ozone
Season allowance a unique identification number that will include
digits identifying the year of the control period for which the CAIR
NOX Ozone Season allowance is allocated.
Sec. 97.354 Compliance with CAIR NOX emissions limitation.
(a) Allowance transfer deadline. The CAIR NOX Ozone
Season allowances are available to be deducted for compliance with a
source's CAIR NOX Ozone Season emissions limitation for a
control period in a given calendar year only if the CAIR NOX
Ozone Season 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 NOX Ozone Season allowance transfer
correctly submitted for recordation under 97.360 and 97.361 by the
allowance transfer deadline for the control period.
(b) Deductions for compliance. Following the recordation, in
accordance with Sec. 97.361, of CAIR NOX Ozone Season
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
NOX Ozone Season allowances available under paragraph (a) of
this section in order to determine whether the source meets the CAIR
NOX Ozone Season emissions limitation for the control
period, as follows:
(1) Until the amount of CAIR NOX Ozone Season allowances
deducted equals the number of tons of total nitrogen oxides emissions,
determined
[[Page 25460]]
in accordance with subpart HHHH of this part, from all CAIR
NOX Ozone Season units at the source for the control period;
or
(2) If there are insufficient CAIR NOX Ozone Season
allowances to complete the deductions in paragraph (b)(1) of this
section, until no more CAIR NOX Ozone Season allowances
available under paragraph (a) of this section remain in the compliance
account.
(c)(1) Identification of CAIR NOX Ozone Season allowances by serial
number. The CAIR authorized account representative for a source's
compliance account may request that specific CAIR NOX Ozone
Season 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
NOX Ozone Season source and the appropriate serial numbers.
(2) First-in, first-out. The Administrator will deduct CAIR
NOX Ozone Season 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
NOX Ozone Season 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 NOX Ozone Season allowances that were
allocated to the units at the source, in the order of recordation; and then
(ii) Any CAIR NOX Ozone Season allowances that were
allocated to any entity and transferred and recorded in the compliance
account pursuant to subpart GGGG 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 NOX
Ozone Season source has excess emissions, the Administrator will deduct
from the source's compliance account an amount of CAIR NOX
Ozone Season 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 NOX Ozone Season source or the CAIR NOX
Ozone Season 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 IIII.
(f) Administrator(s action on submissions. (1) The Administrator
may review and conduct independent audits concerning any submission
under the CAIR NOX Ozone Season Trading Program and make
appropriate adjustments of the information in the submissions.
(2) The Administrator may deduct CAIR NOX Ozone Season
allowances from or transfer CAIR NOX Ozone Season 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. 97.355 Banking.
(a) CAIR NOX Ozone Season 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 NOX Ozone Season allowance that is held in
a compliance account or a general account will remain in such account
unless and until the CAIR NOX Ozone Season allowance is
deducted or transferred under Sec. 97.342, Sec. 97.354, Sec. 97.356,
or subpart GGGG or IIII of this part.
Sec. 97.356 Account error.
The Administrator may, at his or her sole discretion and on his or
her own motion, correct any error in any CAIR NOX Ozone
Season 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. 97.357 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. 97.360 and 97.361 for any CAIR NOX Ozone Season
allowances in the account to one or more other CAIR NOX
Ozone Season 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 NOX Ozone Season 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 NOX Ozone Season
allowances into the account under Sec. Sec. 97.360 and 97.361 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 GGGG--CAIR NOX Ozone Season Allowance Transfers
Sec. 97.360 Submission of CAIR NOX Ozone Season allowance
transfers.
A CAIR authorized account representative seeking recordation of a
CAIR NOX Ozone Season allowance transfer shall submit the
transfer to the Administrator. To be considered correctly submitted,
the CAIR NOX Ozone Season 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 NOX Ozone Season
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. 97.361 EPA recordation.
(a) Within 5 business days (except as provided in paragraph (b) of
this section) of receiving a CAIR NOX Ozone Season allowance
transfer, the Administrator will record a CAIR NOX Ozone
Season allowance transfer by moving each CAIR NOX Ozone
Season allowance from the transferor account to the transferee account
as specified by the request, provided that:
(1) The transfer is correctly submitted under Sec. 97.360; and
(2) The transferor account includes each CAIR NOX Ozone
Season allowance identified by serial number in the transfer.
(b) A CAIR NOX Ozone Season allowance transfer that is
submitted for recordation after the allowance transfer deadline for a
control period and that includes any CAIR NOX Ozone Season
allowances allocated for any control period before such allowance
transfer deadline will not be recorded until after
[[Page 25461]]
the Administrator completes the deductions under Sec. 97.354 for the
control period immediately before such allowance transfer deadline.
(c) Where a CAIR NOX Ozone Season allowance transfer
submitted for recordation fails to meet the requirements of paragraph
(a) of this section, the Administrator will not record such transfer.
Sec. 97.362 Notification.
(a) Notification of recordation. Within 5 business days of
recordation of a CAIR NOX Ozone Season allowance transfer
under Sec. 97.361, 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 NOX Ozone Season allowance transfer that
fails to meet the requirements of Sec. 97.361(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
NOX Ozone Season allowance transfer for recordation
following notification of non-recordation.
Subpart HHHH--Monitoring and Reporting
Sec. 97.370 General requirements.
The owners and operators, and to the extent applicable, the CAIR
designated representative, of a CAIR NOX Ozone Season 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. 97.302 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
NOX Ozone Season unit,'' ``CAIR designated representative,''
and ``continuous emission monitoring system'' (or ``CEMS'')
respectively, as defined in Sec. 97.302. The owner or operator of a
unit that is not a CAIR NOX Ozone Season 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 NOX Ozone Season unit.
(a) Requirements for installation, certification, and data
accounting. The owner or operator of each CAIR NOX Ozone
Season unit shall:
(1) Install all monitoring systems required under this subpart for
monitoring NOX mass emissions and individual unit heat input
(including all systems required to monitor NOX emission
rate, NOX 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. 97.371 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 NOX Ozone Season
unit that commences commercial operation before July 1, 2007, by May 1,
2008.
(2) For the owner or operator of a CAIR NOX Ozone Season
unit that commences commercial operation on or after July 1, 2007 and
that reports on an annual basis under Sec. 97.374(d), by the later of
the following dates:
(i) 90 unit operating days or 180 calendar days, whichever occurs
first, after the date on which the unit commences commercial operation;
or
(ii) May 1, 2008.
(3) For the owner or operator of a CAIR NOX Ozone Season
unit that commences commercial operation on or after July 1, 2007 and
that reports on a control period basis under Sec. 97.374(d)(2)(ii), by
the later of the following dates:
(i) 90 unit operating days or 180 calendar days, whichever occurs
first, after the date on which the unit commences commercial operation;
or
(ii) If the compliance date under paragraph (b)(3)(i) of this
section is not during a control period, May 1 immediately following the
compliance date under paragraph (b)(3)(i) of this section.
(4) For the owner or operator of a CAIR NOX Ozone Season
unit for which construction of a new stack or flue or installation of
add-on NOX emission controls is completed after the
applicable deadline under paragraph (b)(1), (2), (6), or (7) of this
section and that reports on an annual basis under Sec. 97.374(d), 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 NOX emissions controls.
(5) For the owner or operator of a CAIR NOX Ozone Season
unit for which construction of a new stack or flue or installation of
add-on NOX emission controls is completed after the
applicable deadline under paragraph (b)(1), (3), (6), or (7) of this
section and that reports on a control period basis under Sec.
97.374(d)(2)(ii), by the later of the following dates:
(i) 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 NOX emissions
controls; or
(ii) If the compliance date under paragraph (b)(5)(i) of this
section is not during a control period, May 1 immediately following the
compliance date under paragraph (b)(5)(i) of this section.
(6) Notwithstanding the dates in paragraphs (b)(1), (2), and (3) of
this section, for the owner or operator of a unit for which a CAIR
NOX Ozone Season 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, by the date specified in Sec. 97.384(b).
(7) Notwithstanding the dates in paragraphs (b)(1), (2), and (3) of
this section, for the owner or operator of a CAIR NOX Ozone
Season opt-in unit under subpart IIII of this part, by the date on
which the CAIR NOX Ozone Season opt-in unit enters the CAIR
NOX Ozone Season Trading Program as provided in Sec. 97.384(g).
(c) Reporting data. The owner or operator of a CAIR NOX
Ozone Season 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 NOX
concentration, NOX emission rate, stack gas flow rate, stack
gas moisture content, fuel flow rate, and any other parameters required
to determine NOX mass emissions and heat input in
[[Page 25462]]
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 NOX
Ozone Season 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. 97.375.
(2) No owner or operator of a CAIR NOX Ozone Season unit
shall operate the unit so as to discharge, or allow to be discharged,
NOX 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 NOX Ozone Season unit
shall disrupt the continuous emission monitoring system, any portion
thereof, or any other approved emission monitoring method, and thereby
avoid monitoring and recording NOX 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 NOX Ozone Season 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. 97.305 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. 97.371(d)(3)(i).
(e) Long-term cold storage. The owner or operator of a CAIR
NOX Ozone Season unit is subject to the applicable provisions of
part 75 of this chapter concerning units in long-term cold storage.
Sec. 97.371 Initial certification and recertification procedures.
(a) The owner or operator of a CAIR NOX Ozone Season
unit shall be exempt from the initial certification requirements of
this section for a monitoring system under Sec. 97.370(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. 97.370(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
NOX 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. 97.375 to determine whether the approval applies under the CAIR
NOX Ozone Season Trading Program.
(d) Except as provided in paragraph (a) of this section, the owner
or operator of a CAIR NOX Ozone Season 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. 97.370(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.
97.370(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. 97.370(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. 97.370(a)(1) that may
significantly affect the ability of the system to accurately measure or
record NOX 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: 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 systems, and any excepted
NOX monitoring system under appendix E to part 75 of this
chapter, under Sec. 97.370(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. 97.370(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. 97.373.
(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
[[Page 25463]]
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 NOX Ozone Season 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 NOX Ozone Season 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. 97.372(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 NOX emission rate (i.e.,
NOX-diluent) system, the maximum potential NOX
emission rate, as defined in ( 72.2 of this chapter.
(2) For a disapproved NOX pollutant concentration
monitor and disapproved flow monitor, respectively, the maximum
potential concentration of NOX 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 NOX monitoring system
under appendix E to part 75 of this chapter, the fuel-specific maximum
potential NOX emission rate, as defined in ( 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 (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. 97.372 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
[[Page 25464]]
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.
97.371 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.
97.371 for each disapproved monitoring system.
Sec. 97.373 Notifications.
The CAIR designated representative for a CAIR NOX Ozone
Season unit shall submit written notice to the Administrator in
accordance with Sec. 75.61 of this chapter.
Sec. 97.374 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. 97.310(e)(1).
(b) Monitoring Plans. The owner or operator of a CAIR
NOX Ozone Season 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 IIII of
this part, Sec. Sec. 97.383 and 97.384(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. 97.371, 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) If the CAIR NOX Ozone Season unit is subject to an
Acid Rain emissions limitation or a CAIR NOX emissions
limitation or if the owner or operator of such unit chooses to report
on an annual basis under this subpart, the CAIR designated
representative shall meet the requirements of subpart H of part 75 of
this chapter (concerning monitoring of NOX mass emissions)
for such unit for the entire year and shall report the NOX
mass emissions data and heat input data for such 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 May 1, 2008 through June 30, 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. 97.370(b), unless that quarter is the
third or fourth quarter of 2007 or the first quarter of 2008, in which
case reporting shall commence in the quarter covering May 1, 2008
through June 30, 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 IIII of this part, the calendar quarter
corresponding to the date specified in Sec. 97.384(b); and
(iv) Notwithstanding paragraphs (d)(1) (i) and (ii) of this
section, for a CAIR NOX Ozone Season opt-in unit under
subpart IIII of this part, the calendar quarter corresponding to the
date on which the CAIR NOX Ozone Season opt-in unit enters
the CAIR NOX Ozone Season Trading Program as provided in
Sec. 97.384(g).
(2) If the CAIR NOX Ozone Season unit is not subject to
an Acid Rain emissions limitation or a CAIR NOX emissions
limitation, then the CAIR designated representative shall either:
(i) Meet the requirements of subpart H of part 75 (concerning
monitoring of NOX mass emissions) for such unit for the
entire year and report the NOX mass emissions data and heat
input data for such unit in accordance with paragraph (d)(1) of this
section; or
(ii) Meet the requirements of subpart H of part 75 for the control
period (including the requirements in Sec. 75.74(c) of this chapter)
and report NOX mass emissions data and heat input data
(including the data described in Sec. 75.74(c)(6) of this chapter) for
such unit only for the control period of each year and report, in an
electronic quarterly report in a format prescribed by the
Administrator, for each calendar quarter beginning with:
(A) For a unit that commences commercial operation before July 1,
2007, the calendar quarter covering May 1, 2008 through June 30, 2008;
(B) 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. 97.370(b), unless that date is not during a
control period, in which case reporting shall commence in the quarter
that includes May 1 through June 30 of the first control period after
such date;
(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. 97.384(b); and
(D) Notwithstanding paragraphs (d)(2)(ii)(A) and (2)(ii)(B) of this
section, for a CAIR NOX Ozone Season opt-in unit under
subpart IIII of this part, the calendar quarter corresponding to the
date on which the CAIR NOX Ozone Season opt-in unit enters
the CAIR NOX Ozone Season Trading Program as provided in
Sec. 97.384(g).
(3) 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.
(4) For CAIR NOX Ozone Season units that are also
subject to an Acid Rain emissions limitation or the CAIR NOX
Annual 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 NOX 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
[[Page 25465]]
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;
(2) For a unit with add-on NOX emission controls and for
all hours where NOX 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 NOX emissions; and
(3) For a unit that is reporting on a control period basis under
paragraph (d)(2)(ii) of this section, the NOX emission rate
and NOX concentration values substituted for missing data
under subpart D of part 75 of this chapter are calculated using only
values from a control period and do not systematically underestimate
NOX emissions.
Sec. 97.375 Petitions.
The CAIR designated representative of a CAIR NOX Ozone
Season 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 subpart only to
the extent that the petition is approved in writing by the
Administrator, in consultation with the permitting authority.
Subpart IIII--CAIR NOX Ozone Season Opt-in Units
Sec. 97.380 Applicability.
A CAIR NOX Ozone Season 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(ee)(3) (i), (ii), or (iii) of this chapter
establishing procedures concerning CAIR Ozone Season opt-in units;
(b) Is not a CAIR NOX Ozone Season unit under Sec.
97.304 and is not covered by a retired unit exemption under Sec.
97.305 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 HHHH
of this part.
Sec. 97.381 General.
(a) Except as otherwise provided in Sec. Sec. 97.301 through
97.304, Sec. Sec. 97.306 through 97.308, and subparts BBBB and CCCC
and subparts FFFF through HHHH of this part, a CAIR NOX
Ozone Season opt-in unit shall be treated as a CAIR NOX
Ozone Season 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 HHHH 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 NOX Ozone Season unit before
issuance of a CAIR opt-in permit for such unit.
Sec. 97.382 CAIR designated representative.
Any CAIR NOX Ozone Season 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 NOX
Ozone Season units shall have the same CAIR designated representative
and alternate CAIR designated representative as such CAIR
NOX Ozone Season units.
Sec. 97.383 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
NOX Ozone Season opt-in unit in Sec. 97.380 may apply for
an initial CAIR opt-in permit at any time, except as provided under
Sec. 97.386 (f) and (g), and, in order to apply, must submit the following:
(1) A complete CAIR permit application under Sec. 97.322;
(2) A certification, in a format specified by the permitting
authority, that the unit:
(i) Is not a CAIR NOX Ozone Season unit under Sec.
97.304 and is not covered by a retired unit exemption under Sec.
97.305 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. 97.322;
(3) A monitoring plan in accordance with subpart HHHH of this part;
(4) A complete certificate of representation under Sec. 97.313
consistent with Sec. 97.382, 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 NOX Ozone Season allowances under Sec.
97.380(b) or Sec. 97.388(c) (subject to the conditions in Sec. Sec.
97.384(h) and 97.386(g)), to the extent such allocation is provided in
a State implementation plan revision submitted in accordance with Sec.
51.123(ee)(3)(i), (ii), or (iii) of this chapter and approved by the
Administrator. If allocation under Sec. 97.388(c) is requested, this
statement shall include a statement that the owners and operators
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 NOX Ozone Season opt-in unit shall submit a complete
CAIR permit application under Sec. 97.322 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 NOX Ozone Season opt-in
unit from the CAIR NOX Ozone Season Trading Program in
accordance with Sec. 97.386 or the unit becomes a CAIR NOX
Ozone Season unit under Sec. 97.304, the CAIR NOX Ozone
Season opt-in unit shall remain subject to the requirements for a CAIR
NOX Ozone Season opt-in unit, even if the CAIR designated
representative for the CAIR NOX Ozone Season 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. 97.384 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. 97.383 is submitted in accordance with the following, to
the extent provided in a State implementation plan revision submitted
in accordance with
[[Page 25466]]
Sec. 51.123(ee)(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. 97.383. A monitoring plan is sufficient, for
purposes of interim review, if the plan appears to contain information
demonstrating that the NOX emissions rate and heat input of
the unit and all other applicable parameters are monitored and reported
in accordance with subpart HHHH 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 NOX emissions rate and the heat input
of the unit and all other applicable parameters, in accordance with
subpart HHHH of this part, starting on the date of certification of the
appropriate monitoring systems under subpart HHHH of this part and
continuing until a CAIR opt-in permit is denied under Sec. 97.384(f)
or, if a CAIR opt-in permit is issued, the date and time when the unit
is withdrawn from the CAIR NOX Ozone Season Trading Program
in accordance with Sec. 97.386.
(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 NOX Ozone Season
Trading Program under Sec. 97.384(g), during which period monitoring
system availability must not be less than 90 percent under subpart HHHH
of this part and the unit must be in full compliance with any
applicable State or Federal emissions or emissions-related requirements.
(2) To the extent the NOX emissions rate and the heat
input of the unit are monitored and reported in accordance with subpart
HHHH 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 HHHH 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 NOX Ozone Season
Trading Program under Sec. 97.384(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 NOX 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 NOX 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 NOX
emission rate shall equal:
(1) If the unit's NOX 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 NOX emissions
rate (in lb/mmBtu) for the control period;
(2) If the unit's NOX 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 NOX emission controls during any such control
periods, the average of the amounts of the unit's NOX
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 NOX 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
NOX emission controls during any such control periods, the
average of the amounts of the unit's NOX emissions rate (in
lb/mmBtu) for such control periods during which the unit has add-on
NOX emission controls.
(e) Issuance of CAIR opt-in permit. After calculating the baseline
heat input and the baseline NOX 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 NOX Ozone Season
opt-in unit in Sec. 97.380 and meets the elements certified in Sec.
97.383(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 NOX Ozone Season 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 NOX Ozone Season
opt-in unit in Sec. 97.380 or meets the elements certified in Sec.
97.383(a)(2), the permitting authority will issue a denial of a CAIR
opt-in permit for the unit.
(g) Date of entry into CAIR NOX Ozone Season Trading
Program. A unit for which an initial CAIR opt-in permit is issued by
the permitting authority shall become a CAIR NOX Ozone
Season opt-in unit, and a CAIR NOX Ozone Season unit, as of
the later of May 1, 2009 or May 1 of the first control period during
which such CAIR opt-in permit is issued.
(h) Repowered CAIR NOX Ozone Season 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
NOX Ozone Season opt-in unit of CAIR NOX Ozone
Season allowances under Sec. 97.388(c) and such unit is repowered
after its date of entry into the CAIR NOX Ozone Season
Trading Program under paragraph (g) of this section, the repowered unit
shall be treated as a CAIR NOX Ozone Season opt-in unit
replacing the original CAIR NOX Ozone Season 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 NOX emission rate as the original CAIR
NOX Ozone Season opt-in unit, and the original CAIR
NOX Ozone Season opt-in unit shall no longer be treated as a
CAIR NOX Ozone Season opt-in unit or a CAIR NOX
Ozone Season unit.
Sec. 97.385 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. 97.322;
(2) The certification in Sec. 97.383(a)(2);
(3) The unit's baseline heat input under Sec. 97.384(c);
(4) The unit's baseline NOX emission rate under Sec.
97.384(d);
[[Page 25467]]
(5) A statement whether the unit is to be allocated CAIR
NOX Ozone Season allowances under Sec. 97.388(b) or Sec.
97.388(c) (subject to the conditions in Sec. Sec. 97.384(h) and
97.386(g));
(6) A statement that the unit may withdraw from the CAIR
NOX Ozone Season Trading Program only in accordance with
Sec. 97.386; 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. 97.387.
(b) Each CAIR opt-in permit is deemed to incorporate automatically
the definitions of terms under Sec. 97.302 and, upon recordation by
the Administrator under subpart FFFF or GGGG of this part or this
subpart, every allocation, transfer, or deduction of CAIR
NOX Ozone Season allowances to or from the compliance
account of the source that includes a CAIR NOX Ozone Season
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 NOX Ozone Season opt-in unit is located and in a
title V operating permit or other federally enforceable permit for the
source.
Sec. 97.386 Withdrawal from CAIR NOX Ozone Season Trading
Program.
Except as provided under paragraph (g) of this section, a CAIR
NOX Ozone Season opt-in unit may withdraw from the CAIR
NOX Ozone Season Trading Program, but only if the permitting
authority issues a notification to the CAIR designated representative
of the CAIR NOX Ozone Season opt-in unit of the acceptance
of the withdrawal of the CAIR NOX Ozone Season opt-in unit
in accordance with paragraph (d) of this section.
(a) Requesting withdrawal. In order to withdraw a CAIR
NOX Ozone Season opt-in unit from the CAIR NOX
Ozone Season Trading Program, the CAIR designated representative of the
CAIR NOX Ozone Season opt-in unit shall submit to the
permitting authority a request to withdraw effective as of midnight of
September 30 of a specified calendar year, which date must be at least
4 years after September 30 of the year of entry into the CAIR
NOX Ozone Season Trading Program under Sec. 97.384(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 NOX Ozone
Season opt-in unit covered by a request under paragraph (a) of this
section may withdraw from the CAIR NOX Ozone Season 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
NOX Ozone Season opt-in unit must meet the requirement to
hold CAIR NOX Ozone Season allowances under Sec. 97.306(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 NOX Ozone
Season opt-in unit CAIR NOX Ozone Season allowances equal in
amount to and allocated for the same or a prior control period as any
CAIR NOX Ozone Season allowances allocated to the CAIR
NOX Ozone Season opt-in unit under Sec. 97.388 for any
control period for which the withdrawal is to be effective. If there
are no remaining CAIR NOX Ozone Season units at the source,
the Administrator will close the compliance account, and the owners and
operators of the CAIR NOX Ozone Season opt-in unit may
submit a CAIR NOX Ozone Season allowance transfer for any
remaining CAIR NOX Ozone Season allowances to another CAIR
NOX Ozone Season Allowance Tracking System in accordance
with subpart GGGG 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 NOX Ozone Season allowances
required), the permitting authority will issue a notification to the
CAIR designated representative of the CAIR NOX Ozone Season
opt-in unit of the acceptance of the withdrawal of the CAIR
NOX Ozone Season opt-in unit as of midnight on September 30
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
NOX Ozone Season opt-in unit that the CAIR NOX
Ozone Season opt-in unit's request to withdraw is denied. Such CAIR
NOX Ozone Season opt-in unit shall continue to be a CAIR
NOX Ozone Season 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 NOX Ozone
Season 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 NOX Ozone Season opt-in
unit until the effective date of the termination and shall comply with
all requirements under the CAIR NOX Ozone Season Trading
Program concerning any control periods for which the unit is a CAIR
NOX Ozone Season 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 NOX Ozone Season
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 NOX Ozone Season Trading
Program. Once a CAIR NOX Ozone Season opt-in unit withdraws
from the CAIR NOX Ozone Season 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. 97.383 for such CAIR NOX Ozone Season
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. 97.384.
(g) Inability to withdraw. Notwithstanding paragraphs (a) through
(f) of this section, a CAIR NOX Ozone Season opt-in unit
shall not be eligible to withdraw from the CAIR NOX Ozone
Season Trading Program if the CAIR designated representative of the
CAIR NOX Ozone Season opt-in unit requests, and the
permitting authority issues a CAIR opt-in permit providing for,
allocation to the CAIR NOX Ozone Season opt-in unit of CAIR
NOX Ozone Season allowances under Sec. 97.388(c).
Sec. 97.387 Change in regulatory status.
(a) Notification. If a CAIR NOX Ozone Season opt-in unit
becomes a CAIR NOX Ozone Season unit under Sec. 97.304,
then the CAIR designated representative shall notify in writing the
permitting authority and the Administrator of such change in the CAIR
NOX Ozone Season opt-in unit's regulatory status, within 30
days of such change.
(b) Permitting authority's and Administrator's actions. (1) If a
CAIR NOX Ozone Season opt-in unit becomes a CAIR
NOX Ozone Season unit under
[[Page 25468]]
Sec. 97.304, the permitting authority will revise the CAIR
NOX Ozone Season opt-in unit's CAIR opt-in permit to meet
the requirements of a CAIR permit under Sec. 97.323, and remove the
CAIR opt-in permit provisions, as of the date on which the CAIR
NOX Ozone Season opt-in unit becomes a CAIR NOX
Ozone Season unit under Sec. 97.304.
(2)(i) The Administrator will deduct from the compliance account of
the source that includes the CAIR NOX Ozone Season opt-in
unit that becomes a CAIR NOX Ozone Season unit under Sec.
97.304, CAIR NOX Ozone Season allowances equal in amount to
and allocated for the same or a prior control period as:
(A) Any CAIR NOX Ozone Season allowances allocated to
the CAIR NOX Ozone Season opt-in unit under Sec. 97.388 for
any control period after the date on which the CAIR NOX
Ozone Season opt-in unit becomes a CAIR NOX Ozone Season
unit under Sec. 97.304; and
(B) If the date on which the CAIR NOX Ozone Season opt-
in unit becomes a CAIR NOX Ozone Season unit under Sec.
97.304 is not September 30, the CAIR NOX Ozone Season
allowances allocated to the CAIR NOX Ozone Season opt-in
unit under Sec. 97.388 for the control period that includes the date
on which the CAIR NOX Ozone Season opt-in unit becomes a
CAIR NOX Ozone Season unit under Sec. 97.304, multiplied by
the ratio of the number of days, in the control period, starting with
the date on which the CAIR NOX Ozone Season opt-in unit
becomes a CAIR NOX Ozone Season unit under Sec. 97.304
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 NOX
Ozone Season unit that becomes a CAIR NOX Ozone Season unit
under ( 97.304 contains the CAIR NOX Ozone Season 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
NOX Ozone Season opt-in unit becomes a CAIR NOX
Ozone Season unit under Sec. 97.304, the CAIR NOX Ozone
Season opt-in unit will be allocated CAIR NOX Ozone Season
allowances under Sec. 97.342.
(ii) If the date on which the CAIR NOX Ozone Season opt-
in unit becomes a CAIR NOX Ozone Season unit under Sec.
97.304 is not September 30, the following amount of CAIR NOX
Ozone Season allowances will be allocated to the CAIR NOX
Ozone Season opt-in unit (as a CAIR NOX Ozone Season unit)
under Sec. 97.342 for the control period that includes the date on
which the CAIR NOX Ozone Season opt-in unit becomes a CAIR
NOX Ozone Season unit under Sec. 97.304:
(A) The amount of CAIR NOX Ozone Season allowances
otherwise allocated to the CAIR NOX Ozone Season opt-in unit
(as a CAIR NOX Ozone Season unit) under Sec. 97.342 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 NOX Ozone Season
opt-in unit becomes a CAIR NOX Ozone Season unit under Sec.
97.304, divided by the total number of days in the control period; and
(C) Rounded to the nearest whole allowance as appropriate.
Sec. 97.388 CAIR NOX Ozone Season allowance allocations to
CAIR NOX Ozone Season opt-in units.
(a) Timing requirements. (1) When the CAIR opt-in permit is issued
under Sec. 97.384(e), the permitting authority will allocate CAIR
NOX Ozone Season allowances to the CAIR NOX Ozone
Season opt-in unit, and submit to the Administrator the allocation for
the control period in which a CAIR NOX Ozone Season opt-in
unit enters the CAIR NOX Ozone Season Trading Program under
Sec. 97.384(g), in accordance with paragraph (b) or (c) of this section.
(2) By no later than July 31 of the control period after the
control period in which a CAIR NOX Ozone Season opt-in unit
enters the CAIR NOX Ozone Season Trading Program under Sec.
97.384(g) and July 31 of each year thereafter, the permitting authority
will allocate CAIR NOX Ozone Season allowances to the CAIR
NOX Ozone Season 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 NOX
Ozone Season 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 NOX Ozone Season opt-in unit is to be allocated CAIR
NOX Ozone Season 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(ee)(3)(i), (ii), or (iii) of this chapter and approved by the
Administrator:
(1) The heat input (in mmBtu) used for calculating the CAIR
NOX Ozone Season allowance allocation will be the lesser of:
(i) The CAIR NOX Ozone Season opt-in unit's baseline
heat input determined under Sec. 97.384(c); or
(ii) The CAIR NOX Ozone Season opt-in unit's heat input,
as determined in accordance with subpart HHHH of this part, for the
immediately prior control period, except when the allocation is being
calculated for the control period in which the CAIR NOX
Ozone Season opt-in unit enters the CAIR NOX Ozone Season
Trading Program under Sec. 97.384(g).
(2) The NOX emission rate (in lb/mmBtu) used for
calculating CAIR NOX Ozone Season allowance allocations will
be the lesser of:
(i) The CAIR NOX Ozone Season opt-in unit's baseline
NOX emissions rate (in lb/mmBtu) determined under Sec.
97.384(d) and multiplied by 70 percent; or
(ii) The most stringent State or Federal NOX emissions
limitation applicable to the CAIR NOX Ozone Season opt-in
unit at any time during the control period for which CAIR
NOX Ozone Season allowances are to be allocated.
(3) The permitting authority will allocate CAIR NOX
Ozone Season allowances to the CAIR NOX Ozone Season opt-in
unit in an amount equaling the heat input under paragraph (b)(1) of
this section, multiplied by the NOX 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. 97.383 (a)(5)) providing for, allocation to a CAIR
NOX Ozone Season opt-in unit of CAIR NOX Ozone
Season allowances under this paragraph (subject to the conditions in
Sec. Sec. 97.384(h) and 97.386(g)), the permitting authority will
allocate to the CAIR NOX Ozone Season opt-in unit as
follows, if provided in a State implementation plan revision submitted
in accordance with Sec. 51.123(ee)(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
NOX Ozone Season opt-in unit is to be allocated CAIR
NOX Ozone Season allowances,
(i) The heat input (in mmBtu) used for calculating CAIR
NOX Ozone Season allowance allocations will be determined as
described in paragraph (b)(1) of this section.
[[Page 25469]]
(ii) The NOX emission rate (in lb/mmBtu) used for
calculating CAIR NOX Ozone Season allowance allocations will
be the lesser of:
(A) The CAIR NOX Ozone Season opt-in unit's baseline
NOX emissions rate (in lb/mmBtu) determined under Sec.
97.384(d); or
(B) The most stringent State or Federal NOX emissions
limitation applicable to the CAIR NOX Ozone Season opt-in
unit at any time during the control period in which the CAIR
NOX Ozone Season opt-in unit enters the CAIR NOX
Ozone Season Trading Program under Sec. 97.384(g).
(iii) The permitting authority will allocate CAIR NOX
Ozone Season allowances to the CAIR NOX Ozone Season opt-in
unit in an amount equaling the heat input under paragraph (c)(1)(i) of
this section, multiplied by the NOX 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 NOX Ozone Season opt-in unit is to be allocated CAIR
NOX Ozone Season allowances,
(i) The heat input (in mmBtu) used for calculating the CAIR
NOX Ozone Season allowance allocations will be determined as
described in paragraph (b)(1) of this section.
(ii) The NOX emission rate (in lb/mmBtu) used for
calculating the CAIR NOX Ozone Season allowance allocation
will be the lesser of:
(A) 0.15 lb/mmBtu;
(B) The CAIR NOX Ozone Season opt-in unit's baseline
NOX emissions rate (in lb/mmBtu) determined under Sec.
97.384(d); or
(C) The most stringent State or Federal NOX emissions
limitation applicable to the CAIR NOX Ozone Season opt-in
unit at any time during the control period for which CAIR
NOX Ozone Season allowances are to be allocated.
(iii) The permitting authority will allocate CAIR NOX
Ozone Season allowances to the CAIR NOX Ozone Season opt-in
unit in an amount equaling the heat input under paragraph (c)(2)(i) of
this section, multiplied by the NOX 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(ee)(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 NOX Ozone Season opt-in unit,
the CAIR NOX Ozone Season allowances allocated by the
permitting authority to the CAIR NOX Ozone Season opt-in
unit under paragraph (a)(1) of this section.
(2) By September 1 of the control period in which a CAIR
NOX Ozone Season opt-in unit enters the CAIR NOX
Ozone Season Trading Program under Sec. 97.384(g) and September 1 of
each year thereafter, the Administrator will record, in the compliance
account of the source that includes the CAIR NOX Ozone
Season opt-in unit, the CAIR NOX Ozone Season allowances
allocated by the permitting authority to the CAIR NOX Ozone
Season opt-in unit under paragraph (a)(2) of this section.
Appendix A to Subpart IIII of Part 97--States With Approved State
Implementation Plan Revisions Concerning CAIR NOX Ozone
Season Opt-in Units
1. The following States have State Implementation Plan revisions
under Sec. 51.123(ee)(3) of this chapter approved by the
Administrator and establishing procedures providing for CAIR
NOX Ozone Season opt-in units under subpart IIII of this
part and allocation of CAIR NOX Ozone Season allowances
to such units under Sec. 97.388(b):
[Reserved]
2. The following States have State Implementation Plan revisions
under Sec. 51.123(ee)(3) of this chapter approved by the
Administrator and establishing procedures providing for CAIR
NOX Ozone Season opt-in units under subpart IIII of this
part and allocation of CAIR NOX Ozone Season allowances
to such units under Sec. 97.388(c):
[Reserved]
[FR Doc. 06-2692 Filed 4-27-06; 8:45 am]
BILLING CODE 6560-50-P