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Citation: 70 Fed. Reg. 25362 2005

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includes the CAIR NOx opt-in unit, the CAIR NOx allowances allocated by the permitting authority to the CAIR NOx opt-in unit under paragraph (a)(1) ofthis section.

(2) By December 1 ofthe control period in which aCAIR opt-in unit
enters the CAIR NOx Annual Trading Program under §96.184(g) and December 1 ofeach year thereafter, the Administrator will record, in the compliance account ofthe source that includes the CAIR NOx opt-in unit, the CAIR NOx allowances allocated by the permitting authority to the CAIR NOx opt-in unit under paragraph (a)(2) ofthis section. * 3. Part 96 isamended by adding .subparts AAA through CCC, adding and reserving subparts DDD and EEE and adding subparts FFFthrough III to read

as follows: Subpart AAA-CAIR SO2Trading Program General Provisions
Sec. 96.201 Purpose. 96.202 Definitions. 96.203 Measurements, abbreviations, and acronyms. 96.204 Applicability. 96.205 Retired unit exemption. 96.206 Standard requirements. 96.207 Computation oftime. 96.208 Appeal procedures. .Subpart BBB-CAIR Designated Representative forCAIR SO2Sources
96.210 Authorization and responsibilities of CAIR designated representative. 96.211 Alternate CAIR designated representative. 96.212 Changing CAIR designated representative and alternate CAIR designated representative; changes in

owners and operators. 96.213 Certificate ofrepresentation. 96.214 Objections-concerning CAIR designated representative.
*Subpart CCC-Permlts.

96.220 General CAIR 

### gO 2Trading Program permit requirements. 96.221 Submission ofCAIRpermit applications. 96.222 Information requirements for CAIR permit applications. 96.223 CAIR permit contents and term. 96.224 CAIR permit revisions. Subpart DDD--[Reserved] Subpart EEE-[Reserved] Subpart FFF-CAIR S02Allowance Tracking System

96.250 [Reserved] 96.251 Establishment ofaccounts. 96.252 Responsibilities of CAIR'authorized

account representative. 96.253 Recordation ofCAIR SO 2 allowances. 96.254 Compliance with CAIR SO 2 emissions limitation. 96.255 Banking. 96.256 Account error. 96.257 Closing ofgeneral accounts. Subpart GGG-CAIR SO2Allowance Transfers

96.260 Submission ofCAIR SO 2 allowance transfers. 96.261 EPA recordation. 96.262 Notification. Subpart HHH-Monitoring and Reporting

96.270 General requirements. 96.271 Initial certification and recertification procedures. 96.272 Out ofcontrol periods.
96.273 Notifications. 96.274 Recordkeeping and reporting. 96.275 Petitions. 96.276 Additional requirements to provide heat input data. SubpartIIi-CAIR SO 2Opt-in Units

96.280 Applicability. 96.281 General. 96.282 CAIR designated representative. 96.283 Applying for CAIR opt-in permit.
96.284 Opt-in process. 96.285 CAIR opt-in permit contents. 96.286 Withdrawal-from CAIR SO 2Trading Program. 96.287 • Change in regulatory status. 96.288 SO 2 allowance allocations to CAIR SO 2 opt-in units. Subpart AAA-CAIR SO2 Trading
Program General Provisions


### §96.201 Purpose.

This subpart and subparts BBB through III establish the model rule comprising general provisions and the designated representative, permitting, allowance, monitoring, and opt-in provisions for the State Clean Air Interstate Rule (CAIR) SO2 Trading Program, under section 110 ofthe Clean AirAct and §51.124 ofthis chapter, as

a means ofmitigating interstate transport offine particulates and sulfur dioxide. The owner or operator ofa unit

or a source shall comply with the requirements ofthis subpart and subparts BBB through III as a matter of federal law only if the State with jurisdiction over the unit and the source incorporates by reference such subparts

or otherwise adopts the requirements of such subparts in accordance with , § 51.124(o)(1) or (2) ofthis chapter, the State submits-to the Administrator one

or more revisions ofthe State implementation plan that include such .adoption, and the Administrator
approves such revisions. Ifthe State adopts therequirements ofsuch subparts in accordance with § 51.124(o)(1) or (2) ofthis chapter, then the State authorizes the Administrator
to assist the State in implementing the CAIR SO 2 Trading Program by carrying
out the functions setforth for the
Administrator in such subparts. §96.202 Definitions. -The terms used in this subpart and subparts BBB through III shall have the meanings set forth inthis section as follows:

Accountnumbermeans the identification number given bythe Administrator to each CAIR S02 Allowance Tracking System account.

AcidRain emissionslimitationmeans

a limitation on emissions ofsulfur dioxide ornitrogen oxides under the Acid Rain Program.

AcidRainProgrammeans a multistate sulfur dioxide and nitrogen oxides air pollution control and emission reduction program established by the Administrator under title IV ofthe CAA and parts 72 through 78 ofthis chapter.

Administrator means the Administrator ofthe United States Environmental Protection Agency or the Administrator's duly authorized representative.

.

Allocate orallocationmeans, with regard to CA1R SO2 allowances issued under the Acid Rain Program, the determination by the Administrator of. the amount ofsuch CAIR SO2 allowances to be initially credited to a CAIR SO 2 unit and, withregard to CAIR SO 2 allowances issued under §96.288, the determination by the permitting authority ofthe amount ofsuch CAIR SO 2 allowances to be initially credited
to aCAIR SO 2unit.

Allowance transfer deadlinemeans, fora control period, midnight ofMarch 1,if it is a business day, or, ifMarch 1 is not abusiness day, midnight ofthe firstbusiness day thereafter immediately following the control period and is the deadline by which a CAIR SO 2 allowance transfer must be submitted forrecordation in a CAIR SO 2 source's compliance account in order to be used to meet the source's CAIR SO 2 emissions limitation for such control period in accordance with § 96.254.

Alternate CAIR designated representative means, for a CAIR SO 2

source and each CAIR SO 2 unit at the
source, the natural person who is authorized by the owners and operators ofthe source and all such units at the

source in accordance with subparts BBB and III ofthis part,to act on behalf of the CAIR designated representative in
matters pertaining to the CAIR SO 2 Trading Program. Ifthe CAIR SO2
source is also aCAIR NOx source, then this natural person shallbe the same person as the alternate CAIR designated representative under the CAIR NOx Annual Trading Program. If the CAIR

S02 source is also a CAIR NOx Ozone Season source, then this natural person shall be the same person as the alternate CAIR designated representative under 

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the CAIR NOx Ozone Season Tiading Program. Ifthe CAIR SO 2 source is also subject to the Acid Rain Program, then this natural person shallbe the same person as the alternate designated representative under the Acid Rain Program.

Automateddataacquisitionand handlingsystem orDAHS means that component ofthe continuous emissiQn monitoring system, or other emissions monitoring system approved for use under subpart HHH of this part, designed to interpret'and convert individual output signals from pollutant concentration monitors, flow monitors, diluent gas monitors, and other component parts of the monitoring system to produce a continuous record ofthe measured parameters inthe
measurement units required by subpart HHH ofthis part.

Boilermeans 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-cyclecogenerationunit

means a cogeneration unit in which the energy input to the unit is first used to produce useful thermal energy and at least some ofthe reject heat from the useful thermal energy application or process is then used for electricity production.

CAIR authorized account representative means, with regard to a general account, a responsible natural person who is authorized, in accordance with subparts BBB and III ofthis part, to transfer and otherwise dispose of CAIR SO 2 allowances held inthe general account and, withregard to a compliance account, the CAIR designated representative ofthe source.

CAIR designatedrepresentative
means, for a CAIR SO 2 source and each CAIR SO 2 unit at the source, the natural
person who is authorized by the owners and operators ofthe source and all such units at the source, in accordance with subparts BBB and III ofthis part, to represent and legallybind each owner and operator inmatters pertaining to the CAIR SO 2 Trading Program. Ifthe CAIR
S02 source is also aCAIR NOx source, then this natural person shall bethe

same person as the CAIR designated representative under the CAIR NOx Annual Trading Program. Ifthe CAIR SO 2 source is also aCAIR NOx Ozone Season source, then this natural person shallbe the same person as the CAIR designated representative under the CAIR NOx Ozone Season Trading Program. Ifthe CAIR SO 2 source is also subject to the Acid Rain Program, then this natural person shallbe the same person as the designated representative under the Acid Rain Program.

CAIR NOx Annual TradingProgram

means a multi-state nitrogen oxides air pollution control and emission reduction program approved and administered by the Administrator in accordance with subparts AA through II ofthis part and § 51.123 ofthis chapter,

as ameans ofmitigating interstate transport offine particulates and nitrogen oxides.

CAIR NOx Ozone Seasonsource

means a source that includes one or

more CAIR NOx Ozone Season units.

CAIR NOx Ozone Season Trading Programmeans a multi-state nitrogen oxides air pollution control and emission reduction program approved and administered by the Administrator in accordance with subparts AAAA through IIII ofthis part and § 51.123 of this chapter, as a means ofmitigating interstate transport ofozone and nitrogen oxides.

CAIR NOx Ozone Season unitmeans

aunit that is subject to the CAIR NOx Ozone Season Trading Program under § 96.304 and a CAIR NOx Ozone Season opt-in unit under subpart 1111 ofthis part.

CAIR NOx sourcemeans a source that includes one ormore CAIR NOx units.

CAIR NOx unitmeans aunit that is subject to the CAIR NOx Annual Trading Program under § 96.104 and a CAIRNOx opt-inunit under subpart I1 ofthis part.

CAIRpermitmeans the legally binding and federally enforceable. written document, -orportion ofsuch document, issued by the permitting authority under subpart CCC ofthis part, including any permit revisions, specifying the CAIR SO 2Trading Program requirements applicable to a CAIR SO 2 source, to each CAIR SO 2 unit
at the source, and to the owners and operators and the CAIR designated representative ofthe source and each such unit.

CAIR SO2 allowancemeans a limited authorization issued by the Administrator under the Acid Rain Program, or by a permitting authority under §96.288, to emit sulfur dioxide during the control period ofthe specified calendar year for which the authorization is allocated or ofany calendar yearthereafter under the CAIR SO 2 Trading Program as follows:

(1) For one CAIR SO2 allowance allocated fora control period in'a year before 2010, oneton ofsulfur dioxide, except as provided in § 96.254(b);

(2) For one CAIR SO 2 allowance allocated for acontrol period in 2010 through 2014, 0.50 ton of sulfur dioxide, except as provided in §96.254(b); and (3) For one CAIR SO 2 allowarice' allocated.for a control period in 2015 or later, 0.35 ton ofsulfur dioxide, except

as provided in §96.254(b).

An authorization to emit sulfur dioxide that is not issued under the Acid Rain Program or under the provisions ofa State implementation plan that is approved under §51.124(o)(1) or (2) ofthis chapter shall
not be a CAIR SO 2 allowance. CAIR S0 2 allowancedeductionor deductCAIR S0 2 allowancesmeans the permanent withdrawal ofCAIR SO2 allowances by the Administrator from a compliance account in orderto account for a specified number oftons oftotal sulfur dioxide emissions from all CAIR SO 2units at a CAIR SO 2 source for a control period, determined in accordance with subpart HHI ofthis' part, or to account for excess emissions.

CAIR S02Allowance TrackingSystem

means the system by which the Administrator records allocations, deductions, and transfers ofCAIR SO 2 allowances under the.CAIR SO 2 Trading Program. This is the same system as the Allowance Tracking System under §72.2 ofthis chapter by which the Administrator records allocations, deduction, and transfers ofAcid Rain SO 2 allowances under the Acid Rain Program. CAIR S0 2Allowance TrackingSystem
accountmeans an account in the CAIR SO2 Allowance Tracking System established by the Administrator for purposes ofrecording the allocation, holding, transferring, or deducting of CAIR SO2 allowances. Such allowances willbe allocated, held, deducted, or transferred only as whole allowances. CAIR S0 2allowancesheldorhold CAIR S0 2allowancesmeans the CAIR SO 2allowances recordedby the Administrator, or submitted to the Administrator for recordation, in accordance with subparts FFF, GGG, and III ofthis part or part 73 ofthis chapter, in a CAIR SO 2 Allowance Tracking System account. CAIR S0 2emissionslimitationmeans, for a CAIR SO 2 source, the tonnage equivalent ofthe CAIR SO 2 allowances available for deduction for the source under §96.254(a) and (b)for a control period. CAIR S0 2sourcemeans a source that includes one or more CAIR SO2 units.

CAIR SO2 Trading Programmeans a multi-state sulfur dioxide air pollution control and emission reduction program approved and administered by the Administrator in accordance with subparts AAA through III ofthis part and §51.124 ofthis chapter, as a means ofmitigating interstate transport offine particulates and sulfur dioxide. 

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* CAIR S0 2 unitmeans a unit that.is subject to the CAIR S0 2 Trading .Program under §96.204 and, except for
purposes of 

### §96.205, a CAIR SO 2 opt-in unit under subpart III ofthis part.

CleanAirActor CAA means the Clean Air Act, 42 U.S.C. 7401, etseq.

Coalmeans any solid fuel classified as anthracite, bituminous, subbituminous,

or lignite.

Coal-derived fuelmeans any fuel (whether in a solid, liquid, or gaseous state) produced by the mechanical, thermal, or chemical processing ofcoal.

Coal-firedmeans combusting any amount ofcoal or coaL-derived fuel, alone, orin combination with any amount ofany other fuel.

Cogenerationunitmeans 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 ofenergy; and

(2)Producing during the 12-month period starting on the date the unit first produces electricity and during any calendar year after which the unit first produces electricity-

(i) For a topping-cycle cogeneration unit,

(A) Useful thermal energy not less than 5 percent oftotal energy output; and

(B) Useful power that, when added to one-half ofuseful thermal energy produced, is notless then 42.5 percent oftotal energy input, ifuseful thermal energy produced is 15 percent or more oftotal energy output, o'rnot less than 45 percent oftotal energy input, if useful thermal energy produced is less than 15 percent oftotal energy output.

(ii)For abottoming-cycle cogeneration unit, useful power not less than 45 percent oftotal energy input.

Combustionturbinemeans: (1) An enclosed device comprising a compressor, a combustor, and aturbine and in which the flue gas resulting from the combustion offuel inthe combustor,
passes through the turbine, rotating the. turbine; and

(2) Ifthe enclosed device under paragraph (1) ofthis definition is' combined cycle, any associated heat recovery steam generator and steam turbine.

Commencecommercialoperation
means, with regard to a unit serving a generator:

(1) To have begun to produce steam, gas, orother heated medium used to generate electricity for sale or use, including test generation, except as provided in § 96.205.

(i)For aunit that is aCAIR SO2 unit under §96.204 on the date the unit commences commercial operation-as defined in paragraph (1) ofthis definition and that subsequently undergoes a physical change (other than replacement ofthe unit by aunit at the

same source), such date shall remain the unit's date ofcommencement of commercial operation.

(ii) For aunit that is aCAIR S02 unit under §96.204 on the date the unit

commences commercial operation as defined in paragraph (1) ofthis definition and that is subsequently replaced-by aunit atthe same source (e.g., repowered), the replacement unit shallbe treated as a separate unit with

a separate date for commencement of commercial operation as defined in paragraph (1), (2), or (3) ofthis definition as appropriate.

(2) Notwithstanding paragraph (1) of this definition and except as provided in § 96.205, for aunit that is not a CAIR SO 2 unit under §96.204 on the date the unit commences commercial operation

as defined in paragraph (1) ofthis definition and is not a unitunder paragraph (3) ofthis definition, the unit's date for commencement of commercial operation shallbe the date

on which the unitbecomes aCAIR SO 2 unit under § 96.204.

(i) For a unit with a date for
commencement ofcommercial operation as defined in paragraph (2) of this definition and'that subsequently undergoes aphysical change (other than replacement ofthe unit by aunit at the

same source), such date shallremain the unit's date ofcommencement of commercial operation.:

(ii) For aunit with a date for
commencement ofcommercial operation as defined in paragraph (2) of this definition and that is subsequently replaced by a unit at the same source (e.g., repowered), the replacement unit shallbe treated as a separate unit with

a separate date for commencement of commercial operation as defined in paragraph (1), (2), or (3) ofthis definition as appropriate.

(3)Notwithstanding paragraph (1) of this definition and except as provided in § 96.284(h) or § 96.287(b)(3), for a CAIR SO2 opt-in unit or aunit for which

a CAIR opt-in permit application is submitted and not withdrawn and a CAIR opt-in permit is not yetissued or denied under subpart III ofthis part, the unit's date for commencement of commercial operation shallbe the date

on which the owner or operator is required to start monitoring and reporting the S02 emissions rate and the heat input ofthe unit under §96.284(b)(1)(i).

(i) For a unit with a date for
commencement ofcommercial operation as defined in paragraph (3) of this definition and that subsequently undergoes a physical change (other than replacement ofthe unit by a unit at the

same source), such date shall remain the unit's date ofcommencement of commercial operation.

(ii) For aunit with adate foi
commencement ofcommercial operation as defined inparagraph (3) of this definition and that is subsequently replaced by a unit at tbe same source

.(e.g., repowered), the replacement unit shallbe treated as a separate unit With

a separate date for commencement of commercial operation as defined in paragraph (1), (2), or (3) ofthis definition as appropriate.

(4) Notwithstanding paragraphs (1) through (3) ofthis definition, for a unit
not serving a genetator producing electricity for sale, the unit's date of
commencement ofoperation shall also be the unit's date ofcommencement of commercial operation.

Commence operationmeans: (1) To have:begun any mechanical, chemical, orelectronic process, including, with regard to a unit, start-up ofa tinit's combustion chamber, except

as provided in §96.205. (i)

For a unit that is a CAIR S02 unit under §96.2.04 on the date the unit

commences operation as defined in paragraph (1) ofthis definition and that subsequently undergoes a physical change (other than replacement ofthe unit by a unit at the same source), such date shall remain the unit's date of
commencement ofoperation.

(ii)For aunit that is a CAIR SO2 unit under § 96.204 on the date the unit

commences operation as defined in paragraph (1) ofthis definition and that is subsequently replaced by aunit atthe

same source (e.g., repowered), the replacement unit shall be treated as a separate unit with a separate datefor
commencement ofoperation as defined in paragraph (1), (2), or (3) ofthis definition as appropriate. (2)Notwithstanding paragraph (1) of this definition and except as provided in § 96.205, for a unitthat is not a CAIR
S02 unit under §96.204 on the date the unit commences operation as defined in paragraph (1) ofthis definition and is
not aunit under paragraph (3) ofthis definition, the unit's date for
commencement ofoperation shall be the date on which the unit becomes a CAIR
S02 unit under § 96.204.

(i) For a unit with a date for
commencement ofoperation as defined in paragraph (2) ofthis definition and that subsequently undergoes aphysical change (other than replacement ofthe unitby a unit atthe same source), such 

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date shallremain the unit's date of
commencement ofoperation.

(ii) For a unit with a date for
commencement ofoperation as defined in paragraph (2) ofthis definition and that is subsequently replaced by a unit
at the same.source (e.g., repowered), the replacement unit shallbe'treated as a separate unit with a separate date for
commencement ofoperation as defined in paragraph (1),(2), or (3) ofthis definition as appropriate.

(3) Notwithstanding paragraph (1) of this definition and except as provided in §96.284(h) or § 96.287(b)(3), for a CAIR S02 opt-inunit or a unit for which

a CAIRopt-in permit application is submitted and not withdrawn and a CAIR opt-inpermit is notyet issued or denied under subpart III ofthis part, the unit's date forcommencement of operation shallbe the date on which the

owner or operator is required to start monitoring and reporting the S02 emissions rate and the heat input ofthe unit under § 96.284(b)(1)(i). (i) For a unit with a date for
commencement of operation as defined inparagraph (3) ofthis definition and that subsequently undergoes aphysical change (other than replacement ofthe unitby a unit at the same source), such date shall remain the unit's date of
commencement of operation.

(ii) For a unit with a date for
commencement ofoperation as defined inparagraph (3) ofthis definition and that is subsequently replaced by a unit
at the same source (e.g., repowered), the replacement unit shall be treated as a separate unit with a separate date for
commencement ofoperation as defined in paragraph (1), (2), or (3) ofthis definition as appropriate.

Common stackmeans a single flue through which emissions from 2 or

more units are exhausted.

Complianceaccountmeans a CAIR S02 Allowance Tracking System account, established by the Administrator for aCAIR S02 source subject to an Acid Rain emissions limitations under § 73.31(a) or (b) ofthis chapter or for any other CAIR S02

source under subpart FFF or III ofthis part, in which any CAIR S02 allowance allocations for the CAIR S02 units at the

source are initially recorded and in which are held any CAIR S02 allowances available for use for a control period in order to meet the source's CAIR S02 emissions limitation in accordance with § 96.254.

Continuousemissionmonitoring system or CEMSmeans the equipment required under subpart HHH ofthis part
to sample, analyze, measure, ahd provide, by means ofreadings recorded
at least once every 15 minutes (using an automated data acquisition and handling system (DAHS)), apermanent record ofsulfur dioxide emissions, stack
gas volumetric flow rate, stack gas moisture content, and oxygen or carbon dioxide concentration (as applicable), in

a manner consistent with part 75 ofthis chapter. The following systems are the principal types ofcontinuous emission monitoring systems required under subpart HHH ofthis part:

(1) A flow monitoring system, consisting ofa stack flow rate monitor and-an automated data acquisitiofil and handling system and providing a permanent, continuous record ofstack
gas volumetric flow rate, in standard cubic feet perhour (scfh); • (2) A sulfur dioxide monitoring system, consisting ofa S02 pollutant concentration monitor and an automated data acquisition handling system and providing a permanent, continuous record ofS02 emissions, in parts per million (ppm);

(3) A moisture monitoring system, as defined in §75.11(b)(2) ofthis chapter and providing a permanent, continuous record ofthe slack gas moisture content, inpercent H20;

(4) A carbon dioxide monitoring system, consisting ofa CO 2pollutant concentration monitor (or an oxygen monitor plus suitable mathematical equations from whichthe CO2 concentration is derived) and an automated data acquisition and handling system and providing a permanent, continuous record of CO 2 emissions, in percent C0 2;and

(5) An oxygen monitoring system, consisting ofan 02 concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record of 02 in percent 02.

Control periodmeans the period beginning January 1 ofa calendar year and ending on December 31 ofthe same year, inclusive.

Emissionsmeans air pollutants exhausted from a unit or source into the atmosphere, as measured, recorded, and reported to the Administrator by the CAIR designated representative and as determined by the Administrator in accordance with subpart HHH ofthis part.

Excess emissionsmeans anyton, or portion ofaton, ofsulfur dioxide emitted by the CAIR S02units at a CAIR S02 source during acontrol period that * exceeds the CAIR S02 emissions limitation for-the source, provided that
any portion ofaton ofexcess emissions shall be treated as one ton ofexcess emissions.

Fossil fuel means natural gas, petroleum, coal, or any form of solid, liquid, or gaseous fuel derived from such material.

Fossil-fuel-fired means, with regard to

a unit, combusting any amount of fossil fuel in any calendar year.

Generalaccount means aCAIR S02 Allowance Tracking System account, established under subpart FFF ofthis part, that is not a compliance account.

Generator means a device that produces electricity.

Heatinputmeans, with regard to a specified period oftime, the product (in mmBtu/time) ofthe gross calorific value ofthe fuel (inBtu/lb) divided by 1,000,000 Btu/mmBtu and multiplied by the fuel feed rate into a combustion device (in lb offuel/time), as measured, recorded, and reported to the Administrator by the CAIR designated representative and determined by the Administrator in accordance with subpart HHH ofthis part and excluding the heat derived from preheated combustion air, recirculated flue gases,

or exhaust from other sources.

Heatinputratemeans the amount of heat input (inmmBtu) divided by unit *operating time (inhr) or, with regard.to

a specific fuel, the amount ofheat input attributed to the fuel {in mmBtu) divided by the unit operating time (in -hr)during which the unit combusts the fuel.

Life-of-the-unit, firmpower contractual arrangement means a unit participation power sales agreement under which autility orindustrial
customer reserves, oris entitled to receive, a specified amount or percentage ofnameplate capacity and associated energy generated by any specified unit andpays its proportional
amount ofsuch unit's total costs, pursuant to a contract:

(1) For the life ofthe unit; (2) For a cumulative term ofno less than 30years, including contracts that permit an election for early termination;

or (3) For a period no less than 25 years

or 70 percent ofthe economic useful life ofthe unit determined as of the time the unit is built, with option rights to purchase orrelease some portion ofthe nameplate capacity and associated
energy generated by theunit atthe end ofthe period.

Maximum designheatinputmeans, starting from the initial installation ofa unit, the maximum amount offuel per hour (inBtu/hr) that aunit is capable of combusting on a steady statebasis as specified by the manufacturer ofthe unit, or, starting from the completion of
any subsequent physical change in the unit resulting in a decrease in the maximum amount offuel per hour (in Btu/hr) that aunit is capable of 

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combusting on a steady state basis, such decreased maximum amount as specified by,the person conducting the physical change..

Monitoringsystem means any monitoring system that meets the requirements-of subpart HHH ofthis part, including a continuous emissions monitoring system, an alternative monitoring system, or an excepted monitoring system under part 75 ofthis chapter.

Most stringent State orFederal S02 emissionslimitationmeans, withregard
to a unit, the lowest S02 emissions limitation (interms of lb/mmBtu) that is applicable to the unit under State or Federal law, regardless ofthe averaging period to which the emissions limitation applies.

Nameplatecapacity means, starting from the initial installation ofa generator, the maximum electrical generating output (inMWe) that the generator is capable ofproducing on a steady state basis and during continuous operation (whennot restricted by seasonal or other deratings) as specified by themanufacturer ofthe generator or, starting from the completion ofany subsequent physical change in the generator-resulting in an increase inthe maximum electrical generating output (inMWe) that-the generator is capable ofproducing on a steady state basis and during continuous operation (whennot restricted by seasonal or other deratings), such increased inaximum
amount as specified by the person conducting the physical change.

Operator'means any person who operates, controls, or supervises a CAIR S02 unit or a CAIR S02 source and shall include, butnot be limited to, any holding company, utility system, or plant manager ofsuch aunit or source.

Ownermeans any ofthe following
persons:

(1) With regard to aCAIR SO 2 source

or a CAIR S02 unit at a source, respectively:

(i) Any holder of any portion ofthe legal or equitable title in a CAIR S02 unit at the source or the CAIR S02 unit;

(ii)Any holder ofaleasehold interest in a CAIR S02unit atthe source or the CAIR S02 unit; or

(iii) Any purchaser ofpower from a CAIR S02 unit at the source or the CAIR S02 unit under a life-of-the-unit, firm power contractual arrangement; provided that, unless expressly provided for in a leasehold agreement,

owner shall notinclude apassive lessor,

or a person who has an equitable interest through such lessor, whose rental payments are notbased (either directly or indirectly) on the revenues or income from such CAIR S02 unit; or (2) With regard to any general account, any person who has an ownership interest with respect to the CAIR S02 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 S02 allowances.

Permittingauthoritymeans the.State air pollution control agency, local
agency, other State agency, or other agency authorized by the Administrator
to issue orrevise permits to meetthe requirements ofthe CAIR S02 Trading Program in accordance with subpart CCC ofthis part or, ifno such agency has been so authorized, thie Administrator. '

Potentialelectrical output capacity

means 33 percent ofaunit'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 orreceiptofmeans, when referring to the permitting authority or the Administrator, to come into

- possession ofa document, information,

or correspondence (whether sent inhard
copy or by authorized electronic transmission), as indicated in an official correspondence log, orby a notation made on the document, information, or correspondence, by the permitting authority orthe Administrator in the regular course ofbusiness.

Recordation,record,or recorded
means, withregard to CAIR SO 2 allQwances, the movement ofCAIR SO 2 allowances by the Administrator into or between CAIR SO 2 Allowance Tracking System accounts, for purposes of allocation, transfer, or deduction.

Referencemethodmeans any direct
testmethod ofsampling and analyzing for an air pollutant as specified in 

### § 75.22 ofthis chapter.

Repoweredmeans, withregard to a unit,replacement ofa coal-fired boiler with one ofthe 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 ofEnergy, a derivative of one

ormore ofthetechnologies under paragraphs (1)through (5) ofthis definition and any other coal-fired technology capable ofcontrolling 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 ofJanuary 1, 2005.

Serialnumbermeans, for a CAIR SO 2 allowance, the unique identification number assigned to each CAIR SO 2 allowance by the Administrator.

Sequentialusebfenergymeans: (1) For a topping-cycle cogeneration unit, the use ofreject heat from electricity production in a usefulthermal energy application orprocess;

or(2) For abottoming-cycle cogeneration unit, the use ofreject heat from useful thermal energy application orprocess in electricity production.

Sourcemeans all buildings, structures, or installations located in

one or more contiguous or adjacent properties under common control ofthe

same person or persons. For purposes of section 502(c) ofthe Clean Air Act, a "source," including a "source" with multiple units, shall be considered a single "facility."

Statemeans one ofthe States or the District ofColumbia that adopts the CAIR SO 2 Trading Program pursuant to § 51.124 (o)(1) or (2) ofthis chapter.

Submit orservemeans 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 ofdispatch or
- transmission and delivery. Compliance with any "submission" or "service" deadline shallbe determined by the date ofdispatch, transmission, or mailing and notthe date ofreceipt. Title Voperating permitmeans a permit issued under title V ofthe Clean AirAct and part 70 or part 71 ofthis, chapter.

Title Voperating permitregulations

means the regulations that the Administrator has approved or issued as meeting the requirements oftitle V of the Clean Air Act and part 70 or 71 of this chapter.

Ton means 2,000 pounds. For the purpose ofdetermining compliance "withthe CAIR SO 2 emissions limitation, total tons ofsulfur dioxide emissions for

a control period shallbe calculated as the sum of all recorded hourly emissions (or the mass equivalent ofthe recorded hourly emission rates) in accordance with subpart HHH ofthis part, but with any remaining fraction of

a ton equal to or greater than 0.50 tons deemed to equal oneton and any 

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remaining fraction ofa ton less than 0.50 tons deemed to equal zero tons.

Topping-cycle cogenerationunit

means a cogeneration unit in whichthe
energy input to the unit is first used to produce useful power, including electricity, and at least some ofthe reject heat from the electricity production is then used to provide useful thermal energy.

Total energyinputmeans, with regard
to a cogeneration unit, total energy ofall forms supplied to the cogeneration unit, excluding energy produced by the cogeneration unit itself. Totalenergyoutputmeans, with regard to a cogeneration unit, the sum ofuseful power and useful thermal.
energy produced by the cogeneration unit. Unitmeans a stationary, fossil-fuelfired boiler or combustion turbine or other stationary, fossil-fuel-fired combustion device. Unitoperatingdaymeans a calendar day in which a unit combusts any fuel. Unitoperating houror hourofunit operationmeans an hour inwhich a unit combusts any fuel. Usefulpowermeans, 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 onsite emission controls). Useful thermalenergymeans, with regard to acogeneration unit,thermal
energy that is:

(1) Made available to an industrial or commercial process (nota power production process), excluding any heat contained incondensate return or makeup water;

(2) Used in aheat application (e.g.,
space heating or domestic hpt water heating); or

(3) Used in a space cooling application (i.e., thermal energy used by

an absorption chiller). Utility powerdistribution system,

means the portion ofan electricity grid owned or operated by autility and dedicated to delivering electricity to customers.
j96.203 Measurements, abbreviations, and acronyms.

Measurements, abbreviations, and
acronyms used inthis part are defined

as follows: Btu-British thermal unit. C0 2-carbon dioxide. NOx-nitrogen oxides. hr-hour. kW-kilowatt electrical. kWh-kilowatt.hour. mmBtu-million Btu. MWe-megawatt electrical. MWh-megawatt hour. 0 2-xygen. ppm-1arts per million. lb-pound. scfh-standard cubic feet per hour. S0 2-sulfur dioxide. H20-water.
yr-year. §96.204 Applicability.

The following units in a State shall be CAIR SO 2 units, and any source that includes one ormore such units shall be"

a CAIR SO 2 source, subject to the requirements ofthis subpart and subparts BBB through HHH ofthis part:

(a) Except as provided in paragraph (b) ofthis section, a stationary, fossilfuel-fired boiler or stationary, fossilfuel-fired combustion turbine serving at any time, since the start-up ofthe unit's combustion chamber, a generator with nameplate capacity ofmore than 25 MWe producing electricity for sale.

(b) For aunit that qualifies as a cogeneration unit during the 12-month period starting on the date the unit first produces electricity and continues to qualify as a cogeneration unit, a cogeneration unit serving at any time a generator with nameplate capacity of

more than 25 MWe and supplying inany calendar year more than one-third ofthe unit's potential electric output capacity or 219,000 MWh, whichever is greater, to any utility power distribution system for sale. If aunit qualifies as a cogeneration unit during the 12-month period starting on the-date the unit first produces electricity but subsequently no longer qualifies as a cogeneration unit, the unit shall be subject to paragraph (a) ofthis section starting on the day on which the unit first no longer qualifies

as a cogeneration unit.
§96.205 Retired unitexemption.

(a)(1) Any CAIR S02 unit that is permanently retired and is not a CAIR SO 2 opt-inunit under subpart III of this part shall be exempt from the CAIR SO2 Trading Program, except for the provisions of this section, § 96.202, §96.203, §96.204, § 96.206(c)(4) through (8), § 96.207, and subparts FFF and GGG ofthis part.

(2) The exemption under paragraph (a)(1) ofthis section shall become effective the day on which the CAIR SO 2 unit is permanently retired.Within 30 days ofthe unit's permanent retirement, the CAIR designated representative shall submit a statement to thepermitting authority otherwise responsible for administering any CAIR permit for the unit and shall submit a copy ofthe
statement to the Administrator. The statement shall state, in a format prescribed by the permitting authority, that the unit was permanently retired on

a specifid date and will comply with the requirements ofparagraph (b) ofthis section.

(3) Aft6r receipt ofthe statement under paragraph (a)(2) ofthis section, the permitting authority will amend any permit under subpart CCC ofthis part covering the source atwhich the unit is located to add the provisions and requirements ofthe exemption under paragraphs (a)(1) and (b) ofthis section.

(b) Special.provisions.(1) A unit exempt under paragraph (a) ofthis section shall not emit any sulfur dioxide, starting on the date that the exemption takes effect.

(2) For a period of5 years from the date the records are created, the owners and operators ofaunit exemptunder paragraph (a) ofthis section shallretain
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 ofthe period, in writing by the permitting authority orthe Administrator. The

owners and operators bear the burden of proofthat the unitis permanently retired. (3)The owners and operators and,to the extent applicable, the CAIR designated representative ofa unit exempt under paragraph (a) ofthis section shall comply with the requirements ofthe CAIR SO 2Trading 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) ofthis section and located at a source that is required, orbut for this exemption would be required, to have.a title V operating permit shallnot resume operation unless the CAIR designated. representative ofthe source submits a complete CAIR permit application under §96.222 for the unit not less than 18 months (or such lesser time provided by the permitting authority) before the later ofJanuary 1, 2010 orthe date on which the unit resumes operation..

(5) On the earlier ofthe following dates, a unit exempt under paragraph (a) ofthis 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) ofthis section;

(ii) The date on which the CAIR designated representative is required under paragraph (b)(4) ofthis section to submit a CAIR permit application for the unit; or 

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(iii) The date on which the unit

resumes operation, ifthe CAIR .designatedrepresentative is not required to submit a CAIR permit application forthe unit.

(6)For the purpose ofapplying monitoring, reporting, and recordkeeping requirements under subpart HHH ofthis part, a unit that loses its exemption under paragraph (a) ofthis'section shall be treated as a unit that commences operation and commercial operation on the first date

on which the unit resumes operation.
§96.206 Standard requirements.

(a)Permitrequirements.(1) The CAIR designated representative ofeach CAIR SO 2source required to have a title V operating permit and each CAIR S02 unit required to have atitle V operating permit at the source shall:

(i) Submit to the permitting authority

a complete CAIR permit application under §96.222 in accordance with the deadlines specified in § 96.221(a) and (b); 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 ofeach CAIR S02 source required to have atitle V operating permit and each CAIR S02 unit required to have a title V operating permit at the source shallhave a CAIR permit issued by the permitting authority under subpart CCC ofthis part forthe source and operate the source and the unit in compliance with such CAIR permit. (3)Except as provided in subpart III ofthis part, the owners and operators of

a CAIR SO2 source that is not otherwise 'required to have atitle V operating permit and each CAIR S02 unit that is
not otherwise required to have a title V operating permit are notrequired to submit a CAIR permit application, and
to have a CAIR permit, under subpart CCC ofthis part for such CAIR SO2 source and such CAIR S02 unit.

(b)Monitoring,reporting, and recordkeepingrequirements.(1) The

owners and operators, and the CAIR designated representative, ofeach CAIR

S02 source and each CAIR S02unit at the source shall,comply with the monitoring, reporting, and recordkeeping requirements ofsubpart HHH ofthis part.

(2) The emissions measurements recorded and reported in accordance with subpart HHH ofthis part shall be used to determine compliance by each CAIR SO 2 source with the CAIR SO 2 emissions limitation under paragraph (c) ofthis section.

(c) Sulfurdioxide emission rdquirements.(1)As ofthe allowance transfer deadline for a control period, the owners and operators ofeach CAIR SO 2 source and each CAIR SO2unit at the source shall hold, in the source's compliance account, a tonnage equivalent in CAIR SO 2 allowances available for compliance deductions for the control period, as determined in accordance with §96.254(a) and (b), not less than the tons oftotal sulfur dioxide emissions for the control period from all CAIR SO 2 units at the source, as determined in accordance with subpart HHH ofthis part.

(2) A CAIR SO 2 unit shall be subject
to the requirements under paragraph (c)(1) of this section starting on the later ofJanuary 1, 2010 or the deadline for meeting the unit's monitor certification requirements under §96.270(b)(1),(2), or (5). b (3) A CAIR SO 2 allowance shall not be deducted, for compliance with the requirements under paragraph (c)(1) of this section, for acontrol period in a calendar year before the-year for which the CAIR SO 2 allowance was allocated.

(4) CAIR SO 2 allowances shallbe held in, deducted from, ortransferred into or among CAIR S02 Allowance Tracking System accounts in accordance with subparts FFF and GGG ofthis part.

(5) A CAIR SO 2 allowance is a limited authorization to emit sulfur dioxide in accordance with the CAIR SO 2 Trading Program. No provision ofthe CAIR SO 2 Trading Program, the CAIR permit ,application, the CAIR permit, or an exemption under § 96.205 and no provision oflaw shallbe construed to limit the authority ofthe State orthe United States to terminate or limit such authorization.

(6) A CAIR SO 2 allowance does not constitute aproperty right.

(7) Upon recordation by the Administrator under subpart FFF,GGG,

or III ofthis part, every allocation, transfer, or deduction ofa CAIR SO2 allowance to orfrom a CAIR SO 2unit's compliance account is incorporated automatically in any CAIR permit of the

source that includes the CAIR SO 2 unit.

(d)Excess emissionsrequirements- (1) Ifa CAIR SO2 source emits sulfur dioxide during any control period in

excess ofthe CAIR SO 2 emissions limitation, then:

(i) The owners and operators ofthe

source and each CAIR SO 2 unit at the

source shall surrender the CAIR SO 2 allowances required fordeduction under §96.254(d)(1) and pay any fine, penalty, or assessment orcomply with
any other remedy imposed, for the same violations, under the Clean Air Act or applicable State law; and

(ii) Each ton ofsuch excess emissions and each day ofsuch control period shall constitute a separate violation of this subpart, the Clean AirAct, and applicable State law.

(2) [Reserved] (e) Recordkeepingandreporting requirements.(1) Unless otherwise provided, the owners and operators of the CAIR SO2 source and each CAIR SO 2 unit at the source.shall keep on site at the source each ofthe following documents for aperiod of 5 years from the date the document is created. This period may be extended for cause, at any time before the end of5 years, in writingby the permitting authority or the Administrator.

(i) The certificate ofrepresentation under §96.213 for the CAIR designated representative forthe source and each CAIR SO 2 unit at the source and all documents that demonstrate the truth of the statements in the certificate of representation; provided -thatthe certificate and documents shallbe retained on site atthe source beyond such 5-year period until such documents are superseded because of the submission ofa new certificate of representation under §96.213 changing the CAIR designated representative. (ii)All emissions monitoring information, in accordance with subpart HHH ofthis part, provided that to the
extent that subpart HHH ofthis part provides for a 3-year period for recordkeeping, the 3-year period shall apply.

(iii)Copies ofall reports, compliance certifications, and other submissions and all records made or required under the CAIR SO2 Trading Program.

(iv) Copies ofall documents used to complete a CAIR permit application and
any other submission under the CAIR SO 2 Trading Program orto demonstrate compliance with the requirements ofthe CAIR S02 Trading Program.

(2) The CAIR designated representative ofa CAIR SO 2 source and each CAIR SO 2 unit atthe source shall submit the reports required under the CAIR SO 2 Trading Program, including those under subpart HHH ofthis part.

(f)Liability.(1) Each CAIR SO 2 source and each CAIR SO2 unit shall meet the requirements of the CAIR SO 2 Trading Program.

(2) Any provision ofthe CAIR SO 2 Trading Program that applies to a CAIR SO 2 source orthe CAIR designated representative of a CAIR SO 2source shall also apply to the owners and operators ofsuch source and ofthe
CAIR SO 2 units atthe source. 

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(3) Any provision ofthe CAIR S02 Trading Program that applies to a CAIR S02 unit orthe CAIR designated representative ofa CAIR S02.unit shall also apply to the owners and operators of such unit.

(g) Effectonotherauthorities. No provision ofthe CAIR SO 2 Trading Program, a CAIR permit application, a CAIR permit, or an.exemption under 

### §96.205 shall be construed as exempting or excluding the owners and operators, and the CAIR designated representative, ofa CAIR S02 source or CAIR S02 unit from compliance with
any other provision of the applicable, approved State implementation plan, a federally enforceable permit, orthe Clean Air Act. 

### §96.207 Computation oftime.

(a)Unless otherwise stated, any time period scheduled, under the CAIR"SO 2 Trading Program, to begin on the

occurrence ofan act or event shallbegin

on the day the act or event occurs.

(b) Unless otherwise stated, any time period scheduled, under the CAIR S02 Trading Program, to beginbefore the

occurrence ofan act or event shallbe computed so that the period ends the day before the act or event occurs.

(c)Unless otherwise stated, ifthe final day ofany time period, under the CAIR SO 2 Trading Program, falls on a weekend or aState or Federal holiday, the time period shallbe extended to the
next business day.
§96.208 Appeal procedures.

The appeal procedures for decisions ofthe Administrator under the CAIR SO 2 Trading Program are set forth in part 78 ofthis chapter.
Subpart BBB-CAIR Designated Representative forCAIR S02 Sources

§96.210 Authorization and responsibilities ofCAIR designated representative.

(a)Except as provided under §96.211, eachCAIR SO2 source, including all CAIR SO 2units atthe source, shallhave

one and only one CAIR designated .representative, with regard to all matters under the CAIR SO 2 Trading Program concerning the source or any CAIR SO 2 unit atthe source.

(b) The CAIR designated representative ofthe CAIR SO 2 source shallbe selected by an agreement binding on the owners and operators of the source and all CAIR SO 2 units atthe

source and shall act in accordance with the certification statement in § 96.213(a)(4)(iv).

(c) Upon receipt by theAdministrator ofa complete certificate of representation under 

### §96.213, the CAIR designated representative ofthe source shall represent and, by his or her, representations, actions, inactions, or submissions, legally bind each owner and operator ofthe CAIR SO 2 source represented and each CAIR SO 2 unit at the source in all matters pertaining to the CAIR SO 2 Trading Program, notwithstanding any agreement between the CAIR designated representative and such owners and operatbrs. 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 orunit.

(d)No CAIR permit will.be issued, no emissions data reports will be accepted, and no CAIR SO 2 Allowance Tracking System account willbe established for

a CAIR SO 2 unit at a source, until the Administrator has received a complete certificate ofrepresentation under § 96.213 for a CAIR designated representative ofthe source and the CAIR S0 2.units at the source.

(e)(1) Each submission under the CAIR SO 2 Trading Program shall be submitted, signed, and certified by the CAIR designated representative for each CAIR SO 2 source onbehalf ofwhich the submission is made. Each such submission shallinclude the following, certification statement by the CAIR designated representative: "I am authorized to make this submission on behalf ofthe owners and operators of the source or units forwhich the submission is made. I certify under penalty oflaw 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, Icertify that the statements and information are to the best ofmy knowledge and belieftrue, 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 offine or imprisonment."

.

(2) The permitting authority and the Administratorwill accept or act on a submission made on behalfofowner or operators ofaCAIR SO 2source or a CAIR SO 2unit only ifthe submission hasbeen made, signed, and certified in 'accordance with paragraph (e)(1) ofthis section.
§96.211 Alternate CAIR designated representative.

(a)A certificate ofrepresentation under § 96.213 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 designated representative to act in lieu ofthe CAIR designated representative.

(b) Upon receipt by the Administrator of acomplete certificate of representation under 

### § 96.213, any representation, action, inaction, or submission by the alternate CAIR designated representative shallbe deemed to be arepresentation, action, inaction, or submission by the CAIR designated representative.

(c) Except inthis section and 99 96.202, 96.210(a) and (d), 96.212, 96.213, 96.251, and 96.282, whenever the term "CAIR designated representative" is used in subparts AAA through III ofthis part, the term shall be construed to include the CAIR designated representative or any alternate CAIR designated representative. 

### §96.212 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 ofa superseding complete certificate of representation under §96.213. 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 shallbe binding on the

new CAIR designated representative and the owners and operators ofthe CAIR SO 2 source and the CAIR SO 2 units at the source.

(b) ChangingalternateCAIR designatedrepresentative. The alternate CAIR designated representative may be changed at any time upon receipt by the Administrator ofa superseding complete certificate ofrepresentation under § 96.213. 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 ofrepresentation shall be binding on the new alternate CAIR designated representative and the

owners and operators ofthe CAIR'SO 2
source and the CAIR SO 2 units at the

source.

(c) Changesin ownersandoperators. (1) In the event anew owner or operator ofa CAIR SO 2 source or

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is notincluded in the list ofowners and operators in the certificate of representation under § 96.213, such new

owner or operator shallbe deemed to be subject to and bound by the certificate ofrepresentation, the representations, actions, inactions, and submissions of the CAIR designated representative and
any alternate CAIR designated representative ofthe source orunit, and the decisions and orders ofthe permitting authority, the Administrator,

or a court, as ifthe new owner or operator were included in such list.

(2) Within 30 days following any change in the owners and operators of

a CAIR S02 source or a CAIR SO 2unit, including the addition ofa new owner

or operator, the CAIR designated representative or any alternate CAIR designated representative shall submit a revision to the certificate of representation under § 96.213 amending the list ofowners and operators t6 include the change.
§96.213 Certificate of representation.

(a)A complete certificate of representation for aCAIR designated repcesentative or an alternate CAIR * designated representative shall include the following elements in a format prescribed by the Administrator:

(1) Identification ofthe CAIR SO 2 source, and each CAIR S02 unit atthe
source, for which the certificate of representation is submitted:

(2) The name, address, e-mail address (ifany), telephone number, and facsimile transmission number (ifany) ofthe CAIR designated representative and any alternate CAIR designated representative.

(3) A list ofthe owners and operators ofthe CAIR S02 source and ofeach CAIR SO 2 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 ofthe source and each CAIR
S02 unit at the source."

. (ii) "I certify that I have all the necessary authority to carry out my duties and responsibilities under the CAIR S02Trading Program onbehalf of the owners and operators of.the source and of each CAIR S02 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 ofthe source and ofeach CAIR S02 unit at the source shall be' bound by any orderissued to me by the Administrator, the permitting authority,

or a court regarding the source or unit."

(iv) "Where there are multiple holders ofa legal or equitable title to, or a leasehold interest in, a CAIR S02 unit,

or where a customer purchases power from a CAIR S02 unit under a life-ofthe-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 ofthe agreement by which I was selected to each owner and operator ofthe source and ofeach CAIR S02 unit at the source; and CAIR S02 allowances and proceeds oftransactions involving CAIR S02 allowances willbe 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 ofCAIR S02 allowances by contract, CAIR S02 allowances and proceeds oftransactions involving CAIR S02 allowances will be deemed to be held or distributed in accordance with the contract."

(5) The signature ofthe 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 ofagreement 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 ofsuch documents, ifsubmitted.
§96.214 Objectionsconcerning CAIR designated representative.

(a)Once acomplete certificate of representation under § 96.213 has been submitted and received, the permitting authority and the Administrator will rely on the certificate ofrepresentation unless and until a superseding complete certificate ofrepresentation under § 96.213 is received by the Administrator. (b)Except as provided in § 96.212(a)

or (b), no objection or other communication submitted to the permitting authority orthe Administrator concerning the authorization, or any representation, action, inaction, or submission, ofthe CAIR designated representative shall affect any representation, action, inaction, or submission of the CAIR designated representative orthe finality ofany decision or orderby the permitting authority or the Administrator under the CAIR S02 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 ofany CAIR designated representative, including private legal disputes conherning the proceeds ofCAIR S02 allowance transfers.
Subpart CCC-Permits


### §96.220 General CAIR S02 Trading Program permit requirements.

. (a) For each CAIR SO2 source required
to have a title V operating permit or required, under subpart III ofthis part, to have a title V operating permit or other federally enforceable .permit, such permit shallinclude aCAIR permit administered by the permitting .authority for the title V operating permit

or the federally enforceable permit as applicable. The CAIR portion ofthe title * V permit or other federally enforceable permit as applicable shallbe administered in accordance with the permitting authority's title V operating permits regulations promulgated under part 70 or 71 ofthis chapter or the -permitting authority's regulations for other federally enforceable permits as applicable, except as provided otherwise by this subpart and subpart III ofthis part.

(b)Each CAIR permit shall contain, with regard to the CAIR SO 2 source and the CAIR SO 2 units at the source, all applicable CAIR S02 Trading Program, CAIR NOxAnnual Trading Program, and CAIR NOx Ozone Season Trading Program requirements and shall .bea complete and separable portion ofthe title V operating permit or other federally enforceable permit under paragraph (a) ofthis section.
§96.221 Submission of CAIR permit applications.

. (a) Duty to'apply. The CAIR designated representative ofany CAIR S02 source required to have atitle V operating permit shall submit to the permitting authority a complete CAIR permit application under § 96.222 for the source covering each CAIR S02unit.
at the source at least 18 months (or such lesser time provided by the permitting authority) before the later ofJanuary 1, 2010 or the date on which the CAIR S02 unit -commencesoperation.

(b) Dutyto Reapply.For a CAIR SO 2 source required to have atitle V operating permit, the CAIR designated 

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### 27

representative shall iubmit a 'complete CAIR permit application under § 96.222 for the source covering each CAIR S02 unit at the source to renew -theCAIR permit in accordance with the permitting authority's title V operating permits regulations addressing permit renewal. 

### §96.222 Information requirements for CAIR permit applications.

A complete CAIR permit application shall include the following elements concerning the CAIR S0 2 source for which the application is submitted, in a format prescribed by the permitting authority:

(a) Identification ofthe CAIR SO2 source;

(b)Identification ofeach CAIR SO 2 unit atthe CAIR 802 source; and (c)The standard requirements under §96.206.
§96.223 CAIR permit contentsand term.

(a)Each CAIR permit will contain, in

a formatprescribed by the permitting authority, all elements required fora complete CAIR permit application under § 96.222. (b) Each CAIR permit is deemed to incorporate automatically the definitions ofterms under § 96.202 and,
upon recordation by the Administrator under subpart FFF, GGG, or III ofthis part, every allocation, transfer, or deduction of a CAIR SO 2 allowance to

or from the compliance account ofthe CAIR SO 2 source covered by the permit.

(c)The term ofthe CAIR permit will be setby the permitting authority, as necessary to facilitate coordination of the renewal ofthe CAIR permit with issuance, revision, drrenewal of the CAIR SO 2 source's title Voperating permit or other federally enforceable permit as applicable.
§96.224 CAIR permit revisions.

Except asprovided in § 96.223(b), the permitting authority will revise the CAIR permit, as necessary, in accordance with the permitting. authority's title Voperating permits regulations orthe permitting authority's regulations for other federally .enforceable permits as applicable addressing permit revisions.
Subpart DDD-[Reserved]

Subpart EEE--[Reserved]

Subpart FFF-CAIR SO 2Allowance Tracking System
§96.250 [Reserved]

- 

### §96.251 Establishment ofaccounts.

(a) Complianceaccounts.Except as provided in §96.284(e), upon receipt of a complete certificate ofrepresentation under § 96.213, the Administrator will establish a compliance account for-the CAIR SO2.sourcefor whichthe certificate ofrepresentation was submitted, unless the source already has

a compliance account.

(b) Generalaccounts-(1) Applicatidn forgeneralaccount. (i) Any person may apply to open a general account for the purpose of holding and transferring CAIR SO 2 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 behalfofthe CAIR authorized account representative. The agreement by whichthe alternate CAIR authorized account representative is selected shall include a procedure for authorizing the alternate CAIR authorized account representative to act inlieu ofthe CAIR authorized account representative.

(ii) A complete application for a general account shallbe submitted to the Administrator and shall include the following elements in a format prescribed by the Administrator:

(A) Name, mailing address, e-mail address (ifany), telephone number, and facsimile transmission number (ifany) ofthe CAIR authorized account. -representative and any alternate CAIR authorized account representative;

(B) Organization name and type of organization, ifapplicable;

(C) A list ofall persons subject to a binding agreement forthe CAIR authorized account representative and
any alternate CAIR authorized account representative to represent their ownership interest with respdct to the CAIR SO 2 allowances held in the general account;

(D) The following certification
statement by the CAIR authorized
account representative and any alternate CA1R 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 SO 2 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 SO 2Trading Program on behalf of such persons and that each such person shallbe fully bound by my representations, actions,inactions, or submissions and by any order or decision issued to meby the Administrator or a court regarding the general account." (E) The signature ofthe CAIR authorized account representative and
any alternate CAIR authorized account representative and the dates.signed.

(iii) Unless otherwise.required by the permitting authority orthe Administrator, documents ofagreement referred to inthe application'for a general account shall notbe submitted
to the permitting authority orthe Administrator. Neither the permitting authority nor the Administrator shall be under any obligation to review or evaluate the sufficiency of such documents, ifsubmitted.

(2) Authorization ofCAIR authorized
accountrepresentative. (i)Upon receipt by the Administrator ofacomplete application for a general
account under paragraph (b)(1) ofthis section:

(A) The Administrator will establish a general account for the person or persons for whom the application issubmitted.

(B) The CAIR authorized account representative and.any alternate CAIR authorized account representative for the general account shallrepresent and, by his or herrepresentations, actions, inactions, or submissions, legallybind each person who has an ownership interest with respect to CAIR SO 2 allowances hield in the general account inall matters pertaining to the CAIR SO 2 TradingProgram, notwithstanding
any agreement between the CAIR authorized account representative or any alternate CAIR authorized account representative and such person. Any such person shallbe 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 submissionby any alternate CAIR authbrized account representative shall be deemed to be arepresentation, action, inaction, or submissionby the CAIR authorized account representative.

(ii)Each submission concerning the general account shallbe submitted, signed, and certified by the CAIR authorized account representative or any alternate CAIR authorized account representative forthe persons having an ownership interest with respect to CAIR S02 allowances held inthe 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 onbehalf ofthe persons having an ownership interest with respect to the CAIR S0 2 allowances held r

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in the general account. I certify under penalty oflaw 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, Icertify-that the statements and information are to thebest ofmy knowledge and belieftrue, 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 offine or imprisonment."

(iii) The Administrator will accept or act on a submission concerning the general account only ifthe submission has been made, signed, and certified in accordance with paragraph (b)(2)(ii) of this section.

(3) ChangingCAIR authorized
accountrepresentative andalternate CAIR authorizedaccount representative; changesinpersons with ownership interest.

(i) The CAIR authorized account representative for a general account may be changed at any time upon receipt by the Administrator ofa superseding complete application for a general
account under paragraph (b)(1) ofthis 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 bebinding on the new CAIR authorized account representative and the persons with an ownership interest with respect to the CAIR S02 allowances in thegeneral account.

(ii) The alternate CAIR authorized
account representative for a general
account may be changed at any time
upon receipt bythe Administrator ofa superseding complete application fora general account under paragraph (b)(1) ofthis 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 withrespect
to the CAIR S02 allowances inthe general account. (iii)(A) Inthe event a new person having an ownership interest with. respect to CAIR S02 allowances in the general account is not included inthe list ofsuchrpersons in the application for ageneral account, such new person shall be-deemed to be subject to and bound by the application for a general account, the representation, actions, inactions, and submissions ofthe CAIR authorized account representative and
any alternate CAIR authorized account representative of the account, and the decisions and orders ofthe " Administrator or a court, as if the new person were included in such list.

(B) Within 30 days following any change inthe persons having an ownership interest with respect to CAIR SO 2 allowances in the general account, including the addition ofpersons, 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 ofpersons having an ownership interest with respect to the CAIR SO 2 allowances in the general account to include the change.

(4) ObjectionsconcerningCAIR authorizedaccountrepresentative.

(i) Once a complete application fora general account under paragraph (b)(1) ofthis section hasbeen submitted and received, the Administrator will rely on the application unless and until a superseding complete application fora general account under paragraph (b)(1) ofthis section is received by the Administrator. (ii)Except as provided in paragraph (b)(3)(i) or (ii) ofthis section, no objection or other communication submitted to the Administrator concerning the authorization, or any representation, action, inaction, or submissiorf ofthe CAIR authorized
account representative or: any alternative CAIR authorized account representative for a geneial account shall affect any representation, action, inaction, or submission ofthe CAIR authorized account representative or any alternative CAIR authorized account representative orthe finality of any decision or orderby the Administrator under the CAIR SO 2 Trading Program.

(iii) The Administrator will not adjudicate anyprivate legal dispute concerning the authorization or any representation, action, inaction, or submission ofthe CAIR authorized
account representative or any alternative CAIRauthorized account representative for a general account, including private legal disputes -concerningthe proceeds ofCAIR S02 allowance transfers.

(c)Account identification. The Administrator will assign a unique identifying number to each account established under paragraph (a)or (b).of this section;
§96.252 ResponsibilitiesofCAIR authorized account representative.

Following the establishnent of a CAIR SO 2 Allowance Trackiig System account, all submissions to the Administrator pertaining to the account, including, butnot limited to, submissions concerning the deduction

or transfer ofCAIR SO 2 allowances in the account, shall be made only by the CAIR authorized account representative for the account.
§96.253 Recordation of CAIR SO 2 allowances.

(a)(1) After a compliance account is established under §96.251(a) or § 73.31(a) or (b)ofthis chapter, the Administrator will record in the compliance account any CAIR S02 allowance allocated to any CAIR SO 2 unit atthe source for each ofthe 30
years starting the later of2010 orthe
year in which the compliance account is established and any CAIR SO 2 allowance allocated for each ofthe 30 years starting the later of 2010 orthe
year in which the compliance account is established and transferred to the source in accordancewith subpart GGG of this part or subpart D ofpart 73 ofthis chapter.

(2) In 2011 and each year thereafter, after Administrator has completed all deductions under § 96.254(b), the Administrator will record in the compliance account any CAIR SO 2 allowance allocated to any CAIR SO 2 unit at the source for the new 30th year (i.e.,the year that is 30years after the calendar year for which such deductions are or could be made) and
any CAIR SO 2 allowance allocated for the new 30th year and transferred to the

source.in accordance with subpart GGG ofthis part or subpart D ofpart 73 of this chapter.

(b)(1) After a general account is established ufider § 96.251(b) or §73.31(c) ofthis chapter, the Administrator will record in thle general
account any CAIR SO 2allowance allocated for each ofthe 30years starting the later of2010 orthe year in which the general account is established and transferred to the general account in accordance with subpart GGG ofthis part or subpart D ofpart 73 ofthis chapter.

(2) In 2011 and each year thereafter, after Administrator has completed all deductions under § 96.254(b), the Administrator will record in the g6neral
account any CAIR SO 2 allowance allocated for the new-30th year (i.e., the
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year for which such deductions are or could bemade) and transferred to the general account in accordance with subpart GGG ofthis part or subpart D of part 73 ofthis chapter.

(c) Serialnumbers forallocatedCAIR S02 allowances.When recording the allocation ofCAIR S02 allowances issued by a permitting authority under § 96.288, the Administrator will assign each such CAIR S02 allowance a unique identification number that will include digits identifying the year ofthe control period for which the CAIR S02 allowance is allocated. §96.254 Compliance with CAIR SO 2 emissions limitation.

(a) Allowancetransferdeadline.The CAIR S02 allowances are available to be deducted for compliance with a source's CAIR SO 2 emissions limitation for a control period in a given calendar year only ifthe CAIR SO 2 allowances:

(1) Were allocated forthe control period in the year ora prior year;

(2) Are held in the compliance
account as ofthe allowance transfer deadline for the control period or are transferred into the compliance account by a CAIR S02 allowance transfer correctly submitted forrecordation under §96.260 by the allowance transfer deadline for the control period; and

(3) Are not necessary for deduction for excess emissions for aprior control period under paragraph (d)ofthis section or for deduction under part 77 ofthis chapter.

(b) Deductions forcompliance. Following the recordation, in accordance with §96,261, ofCAIR S02 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 SO 2 allowances available under paragraph (a)ofthis section in order to determine whether the source meets the CAIR SO 2 emissions limitation forthe control period as follows:

(1) For aCAIR SO 2 source subject to

an Acid Rain emissions limitation, the Administrator will, in the following order: (i)Deduct the amount ofCAIR SO 2 allowances, available under paragraph (a)ofthis section and notissued by a permitting authority under § 96.288, that is required under §§ 73.35(b) and (c)of this part. If there are sufficient CAIR SO 2 allowances to'complete this deduction, the deduction willbe treated

as satisfyingthe requirements of §§73.35(b) and (c) ofthis chapter.

(ii) Deduct the amount of CAIR SO 2 allowances, available under paragraph (a) ofthis section and notissued by a permitting authority under § 96.288, that is required under §§ 73.35(d) and 77.5 ofthis part.If there are sufficient CAIR SO 2 allowances to complete-this deduction, the deduction will be treated

as satisfying the requirements of 

### §§ 73.35(d) and 77.5 ofthis chapter.

(iii) Treating the CAIR SO 2 allowances deducted under paragraph (b)(1)(i) of this section as also being deducted under this paragraph (b)(1)(iii), deduct CAIR S02 allowances available under paragraph (a)ofthis section (including
any issuedby a permitting authority under §96.288) in order to determine whether the source meets the CAIR SO 2 emissions limitation for the control period, as follows:

(A) Until the tonnage equivalent of the CAIR SO 2 allowances deducted equals, or exceeds in accordance with paragraphs (c)(1) and (2) ofthis section, the number oftons oftotal sulfur dioxide emissions, determined in accordance with subpart HHH ofthis part, from all CAIR SO 2units atthe

source for the controlperiod; or

(B) Ifthere are insufficient CAIR S02 allowances to complete the deductions inparagraph (b)(1)(iii)(A) ofthis section, until no moretCAIR SO 2 allowances available under paragraph (a),ofthis section (including any issued by a permitting authority under § 96.288) remain in the compliance account. * (2) For aCAIR S02 source not subject
to an Acid Rain emissions limitation, the Administrator will deduct CAIR SO 2 allowances available under paragraph (a)ofthis section (including any issued by a permitting authority under § 96.288) in order to determine whether the source meets the CAIR SO 2 emissions limitation for the control period, as follows:

(i)Until the tonnage equivalent ofthe CAIR SO 2 allowances deducted equals,

orexceeds in accordance with paragraphs (c)(1) and (2) ofthis section, the number of tons oftotal sulfur dioxide emissions, determined in accordance with subpart HHH ofthis part, from all CAIR -SO2units atthe

source for the control period; or

(ii) Ifthere are insufficient CAIR SOY allowances to complete the deductions inparagraph (b)(2)(i) ofthis section, until no more CAIR SO 2 allowances available under paragraph (a)ofthis section (including any issued by a permitting authority under § 96.288) remain in the compliance account. (c)(1) IdentificationofCAIR S02 allowancesby serial number.The CAIR authorized account representative for a source's compliance account may request that specific CAIR SO 2 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) ofthis section. Such request shall be submitted to the ' Administrator by the allowance transfer deadline forthe control period and include, in aformat prescribed by the Admihistrator, the identification ofthe CAIR SO 2 source and the appropriate serial numbers.

(2) First-in, first-out.The Administrator will deduct CAIR SO 2 allowances under paragraph (b) or (d)of this section from the source's compliance account, in the absence of

an identification orin the case ofa partial identification ofCAIR SO 2 allowances by serial number under paragraph (c)(1) ofthis section, on a first-in, first-out (FIFO) accounting basis in the following order:

•(i) Any CAIR SO 2 allowances that

were allocated to the units at the source

- for a control period before 2010, in the order ofrecordation;

(ii)Any CAIR SO 2 allowances that

were allocated to any unit for a control period before 2010 and transferred and recorded in the compliance account pursuant to subpart GGG ofthis part or subpart D ofpart 73 ofthis chapter, in the order of recordation;

(iii) Any CAIR SO 2allowances that

were allocated to the units at the source for a control period during 2010 through 2014, inthe order of recordation;

(iv) Any CAIR SO 2allowances that

were allocated to anyunit for a control period during 2010 through 2014 and transferred and recorded in the compliance account pursuant to subpart GGG ofthis part or subpart D ofpart 73 ofthis chapter, in the order of recordation;

(v) Any CAIR SO 2 allowances that

were allocated to the units at the source for a control period in 2015 or later, in the order ofrecordation; and

(vi) Any CAIR SO 2allowances that

were allocated to anyunit for a control period in 2015 or later and transferred and recorded in the compliance account pursuant to subpart GGG ofthis part or subpart D ofpart 73 ofthis chapter, in the order of recordation.

(d) Deductions forexcess emissions. (1)After making the deductions for compliance under paragraph (b) ofthis section for a control period in a calendar
year inwhich the CAIR S0 2 source has

excess emissions, theAdministrator will deduct from the source's compliance
account the tonnage equivalent in CAIR SO 2 allowances, allocated for the control period in the immediately following calendar year (including any issued by a permitting authority under § 96.288), equal to, or exceeding in 

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accordance with paragraphs (c)(1) and (2) of this section, 3 times the number oftons ofthe source's excess emissions.

(2) Any allowance deduction required under paragraph (d)(1) ofthis section shall not affect the liability ofthe

owners and operators ofthe CAIR SO 2 source or the CAIR SO 2 units atthe

source for any fine, penalty, or assessment, or their obligation tocomply with any other remedy, for the

same violations, as ordered under the Clean Air Act or applicable State law. • (e) Recordationofdeductions.The Administrator will record in the appropriate compliance account all deductions from such an account under paragraph (b) or (d) ofthis section.

(f)Administrator's actionon submissions.(1)The Administrator may review and conduct independent audits concerning any submission under the CAIR SO 2 Trading Program and make appropriate adjustments ofthe

- information in the submissions.

(2) The Administrator may deduct CAIR S02 allowances from ortransfer CAIR S02 allowances to a source's compliance account based on the information in the submissions, as adjusted under paragraph (f)(1) ofthis section.
§96.255 Banking.

(a) CAIR SO 2allowances may be banked for future use or transfer in a compliance account or a general
account in accordance with paragraph (b) ofthis 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 SO 2 allowance is deducted ortransferred under § 96.254, § 96.256, or subpart GGG ofthis part.
§96.256 Account error.

The Administrator may, at his orher sole discretion and on his or her own motion, correct any error in any CAIR SO 2 Allowance Tracking System
account. Within 10business days of making such correction, the Administrator will notify the CAIR authorized account representative for the account.
,§96.257 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 §96.260 for any CAIR SO 2 allowances inthe account to one or

more other CAIR SO 2Allowance. Tracking System accounts.

(b) Ifa general account has no allowance transfers in or out ofthe account for a 12-month period orlonger and does not contain any CAIR SO 2 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 willbe closed after the 20- day period unless, before the end ofthe 20-day period, the Administrator receives a correctly submitted transfer of CAIR SO 2 allowances into the account under § 96.260 or a statement submitted by the CAIR authorized account representative demonstrating.to the satisfaction ofthe Administrator good

cause as to whythe account should not be closed.
Subpart GGG--CAIR SO2Allowance Transfers
§96.260 Submission ofCAIR S02 allowance transfers.

(a)A CAIR authorized account representative seeking recordation ofa CAIR SO 2 allowance transfer shall submit the transfer to the Administrator. To be considered correctly submitted, the CAIR SO 2 allowance transfer shall include the following elements, in a format specified by the Administrator:

(1) The account numbers ofboth the transferor and transferee accounts;

(2) The serial number ofeach CAIR SO 2 allowance that is in the transferor
account and is to be transferred; and

(3) The name and signature ofthe CAIR authorized account representatives ofthe transferor and transferee accounts andthe dates signed.

(b)(1) The CAIR authorized account representative for the transferee account

can meet the requirements in paragraph (a)(3) ofthis 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 ofallowances, submitted on or after the date on which the Administrator receives such statement, is authorized. Such authorization shall bebinding on any CAIR authorized afount representative for such account. and shall apply to all transfers into the
account that are submitted on or after such date ofreceipt, 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) ofthis section shall include the following: "By this signature I authorize any transfer ofallowances into each
account listedherein, except that Ido
notwaive anyremedies under State or Federal law to obtain correction ofany

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."
§96.261 EPA recordation.

(a)Within 5 business days (except as necessary to perform a transfer in perpetuity of CAIR SO 2 allowances allocated to a CAIR SO 2 unit or as provided in paragraph (b) ofthis section) ofreceiving a CAIR SO 2 allowance transfer, the Administrator will record a CAIR SO 2 allowance transfer by moving each CAIR SO 2 allowance from the transferor account to the transferee account as specified by the request, provided that:

(1) The transfer is correctly submitted under § 96.260; and

(2) The transferor account includes each CAIR SO 2 allowance-identified by serial number inthe transfer.

(b)A CAIR S02 allowance transfer that is submitted for recordation after the allowance transfer deadline for a control period and that includes any CAIR SO 2 allowances allocated for any control period before such allowance transfer deadline will notbe recorded until after the Administrator completes the deductions under §96.254 for the control period immediately before such allowance transfer deadline.

(c) Where a 

### CAIR S0 2allowance transfer submitted forrecordation fails
to meet the requirements ofparagraph (a) ofthis section-, the Administrator will not record such transfer.
§96.262 Notification.

(a)Notificationofrecordation. Within 5 business days ofrecordation ofa CAIR SO 2 allowance transfer under § 96.261, the Administrator will notify the CAIR authorized account representatives of both the transferor and transferee
accounts.

(b)Notification of non-recordation. Within 10business days ofreceipt of a CAIR SO 2 allowance transfer that fails to meet the requirements of § 96.261(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 1

(2) The reasons for such nonrecordation. (c) Nothing in this section shall preclude the submission ofa CAIR SO 2 allowance transfer for recordation 

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following notification of nonrecordation. 

### Subpart HHH-Monitoring and Reporting

§96.270 General requirements.

The owners and operators, and to the
extent applicable, theCAIR designated representative, ofa CAIR S02unit, shall comply with the monitoring, recordkeepihg, and reporting requirements as provided in this subpart and in subparts F and G ofpart 75 of this chapter. For purposes ofcomplying .with such requirements, the definitions in 

### §96.202 and in §72.2 of this chapter shall apply, and the terms "affected unit," "designated representative," and "continuous emission *nonitoring system" (or "CEMS") in part 75 ofthis chapter shallbe deemed to refer to the
terms "CAIR S02 unit," 

### "CAIR" designated representative," and "continuous emission monitoring ' system" (or "CEMS") respectively, as defined in § 96.202. The owner or operator ofa unit that is not a CAIR S02 unit but that is monitored under 575.16(b)(2) of this chapter shall comply with the same monitoring, recordkeeping, and reporting requirements as a CAIR SO 2unit. (a)Requirements forinstallation, certification, anddataaccounting. The

owner or operator ofeach CAIR SO 2 unit shall: (1) Install all monitoring systems required under this subpart for monitoring S02 mass emissions and individual unitheat input (including all systems required to monitor S02 concentration, stack gas moisture content, stack gas flow rate, C0 2or 02 concentration, and fuel flow rate, as applicable, in accordance with §§ 75.11 and 75.16 ofthis chapter);

(2) Successfully complete all certification tests required under §96.271 and meet all other requirements ofthis subpart and part 75 ofthis 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) ofthis section.

(b) Compliancedeadlines.The owner

or operator shall meet the monitoring system certification and other requirements ofparagraphs (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 -andafter the following dates. (1) For the owner or operator ofa CAIR SO 2 unit that commences commercial operation before July 1, 2008, by January 1, 2009.

(2) For the owner or operator ofa CAIR SO 2 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) Forthe owner or operator ofa CAIR S02unit for which construction of

anew stack or flue orinstallation 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 S02 emissions controls.

(4) Notwithstanding the dates in paragraphs (b)(1) and (2) ofthis section, for the owner or operator ofaunit for which a CAIR opt-in permit application is submitted and notwithdrawn and a CAIR opt-in permit is not yet issued or denied under subpart III ofthis part, by the date specified in 96.284(b). (5) Notwithstanding the dates in paragraphs (b)(1) and (2) ofthis section and solely for purposes of §96.206(c)(2), for the owner or operator ofa CAIR S02 opt-in unit under subpart III ofthis.part, by the date on which the CAIR SO 2 optinunit enters the CAIR S02 Trading Program as.provided in §96.284(g). (c) Reportingdata.(1) Except as provided in paragraph (c)(2) ofthis section, the owner or operator ofa CAIR S02 unit that does notmeet the applicable compliance date set forthin paragraph (b) ofthis section for any monitoring system under paragraph (a)(1) ofthis section shall, for each such monitoring system, determine, record, and report maximum potential (or,as appropriate, minimum potential) values for S02 concentration, SO 2 emission rate, stack gas flow rate, stack gas moisture content, fuel flow rate, and any other parameters required to determine
S02 mass emissions and heat input in accordance with § 75.31(b)(2) or (c)(3) of this chapter or section 2.4 ofappendix *Dto part 75 ofthis chapter, as applicable.

(2) The owner or operator ofa CAIR

S02unit that does not meet the applicable compliance date set forth in paragraph (b)(3) ofthis section for any monitoring system under paragraph (a)(1) ofthis section shall, for each such monitoring system, determine, record, and report substitute data using the applicable missing data procedures in subpart D ofor appendix D to part 75 ofthis chapter, inlieu of themaximum potential (or, as appropriate, minimum potential) values, for aparameter ifthe

owner or operator demonstrates that there is continuity between the data
streams for that parameter before and after the construction orinstallation under paragraph (b)(3) ofthis section.

(d)Prohibitions. (1) No owner or operator ofa CAIR S02 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 §96.275. (2)No owner or operator ofa CAIR S02 unit shall operate the unit so as to discharge, or allow.to be discharged, S02 emissions to the atmosphere without accounting for all such emissions in accordance with the applicable provisions ofthis subpart and part 75 ofthis chapter.

(3) No owner or operator ofa CAIR S02 unit shall disrupt the continuous emission monitoring system, any portion thereof, or any other approved emission monitoring method, and thereby avoid monitoring and recording
S02 mass emissions discharged into the atmosphere, except for periods of recertification or periods when calibration, quality assurance testing, or maintenance is performed in accordance with the applicable provisions ofthis subpart and part 75 ofthis chapter.

(4) No owner or operator ofa CAIR
S02 unit shall retire or permanently discontinue use ofthe continuous emission monitoring system, any component thereof, or any other approved monitoring system under this subpart, except under any one ofthe following circumstances:

(i) During the period that the unit is covered by an exemption under §96.205 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 ofthis subpart and part 75 ofthis chapter, by the permitting authority 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 ofcertification testing ofa replacement monitoring system for the retired or discontinued monitoring system in accordance with § 96.271(d)(3)(i). 

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§96.271 Initial certificationand recertification procedures.

(a)The owner or operator ofa CAIR "
S02 unit shall.be exempt from the initial certification requirements ofthis section for amonitoring system under §96.2 70(a)(1) ifthe following conditions

are met:

(1)The monitoring system has been previously certified in accordance with part 75 ofthis chapter; and

.(2) The applicable quality-assurance and quality-control requirements of §75.21 of this chapter and appendix B and appendix D to part 75 ofthis chapter are fully met for the certified monitoring system described in paragraph (a)(1) ofthis section. (b)The recertification provisions of this section shall apply to a monitoring systemunder § 96.270(a)(1) exempt from initial certification requirements under paragraph (a)ofthis section. (c) Ifthe Administrator has previously approved apetition under

. § §75.16(b)(2)(ii) of this chapter for apportioning the S02 mass emissions measured in a common stack or a petition under §75.66 ofthis chapter for

an alternative to arequirement in § 75.11 or § 75.16 ofthis chapter, the CAIR designated representative shall resubmit the petition to the Administrator under §96.275(a) to determine whether the approval applies under the CAIR S02 Trading Program.

(d)Except as provided in paragraph (a) ofthis section, the owner or operator ofa CAIR SO 2 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 ofthis chapter) under § 96.270(a)(1). The

owner or operator ofa unit that qualifies
to use the low mass emissions excepted monitoring methodology under § 75.19 of this chapter or that qualifies to use an alternative monitoring system under stibpart E ofpart 75 ofthis chapter shall comply with the procedures in -paragraph (e) or (f) ofthis section respectively.

-

(1)Requirements forinitial certification.The owner or operator shall ensure that each continuous monitoring system under §.96.270(a)(1) (including the automated data acquisition and handling system) successfully completes all ofthe initial certification testing required under § 75.20 ofthis chapter by the applicable deadline in § 96.270(b). In addition, whenever the owner or operator installs

a monitoring system to meet the requirements ofthis subpart in a location where no such monitoring system was previously installed, initial certification in accordance with §75.20 ofthis chapter is required.

(2) Requirements forrecertification. Whenever the owner or operator makes

a replacement, modification, or change in any certified continuous emission monitoring system under § 96.270(a)(1) that may significantly affect the ability of the system to accurately measure or record S02 mass emissions or. heat input
rate or to meetthe quality-assurance and quality-control requirements of§ 75.21 ofthis chapter or appendix B to part 75 ofthis chapter, the owner or operator shall recertify the monitoring system in accordance with § 75.20(b) ofthis chapter. Furthermore, whenever the

owner or operator makes a replacement, modification, orchange to the flue gas handling system orthe unit's operation that may significantly change the stack flow or concentration profile, the owner

or operator shallrecertify each continuous emission monitoring system whose accuracy is potentially affected by the change, in accordance with §75.20(b) ofthis 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 ofthe sampling probe or site. Any fuel flowmeter system under §96.2 70(a)(1) is subject to the recertification requirements in § 75.20(g)(6) ofthis chapter.

(3)Approvalprocess forinitial certificationandrecertification. Paragraphs (d)(3)(i) through (iv) ofthis section apply to both initial certification and recertification ofa continuous monitoring system under § 96.270(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 §§ 75.20(b)(5) and (g)(7) of this chapter in lieu ofthe procedures in paragraph (d)(3)(v) ofthis section. (i)

Notificationofcertification. The CAIR designated representative shall submit to the permitting authority, the appropriate EPA Regional Office, and the Administrator written notice ofthe dates ofcertification testing, in accordance with § 96.273.

(ii) Certificationapplication. The CAIR designated representative shall submit to the permitting authority a certification application for each monitoring system. A complete certification application shall include the informationspecified in § 75.63 of this chapter. (iii)Provisionalcertificationdate.The provisional certification date for a monitoring system shall be determined in accordance with § 75.20(a)(3) ofthis chapter. A provisionally certified monitoring system may be used under the CAIR SO 2Trading Program for a period notto exceed 120 days after receipt by the permitting authority 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 ofpart 75 ofthis chapter, willbe considered valid quality-assured data (retroactive to the date and time of provisional certification), provided that the permitting authority does not invalidate the provisional certification by issuing_a notice ofdisapproval within 120 days ofthe date ofreceipt of the complete certification application by the permitting authority.

(iv) Certificationapplication approval
process.The permitting authority will issue a written notice ofapproval or disapproval ofthe certification application to the owner or operator within 120 days ofreceipt ofthe complete certification -applicationunder paragraph (d)(3)(ii) ofthis section. In the
event the permitting authority does not issue such anotice within such 120-day period, each monitoring system that
meets the applicable performance requirements ofpart 75 ofthis chapter and is included inthe certification application will be deemed certified for

use under the CAIR S02 Trading Program.

(A)Approvalnotice.Ifthe certification application is complete and shows that each monitoring system meets the applicable performance requirements ofpart 75 ofthis chapter, then the permitting authority will issue

a written notice ofapproval ofthe certification application within 120 days ofreceipt.)

(B)Incompleteapplication notice If the certification application is not complete, then the permitting authority 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 permitting authority may issue

a notice of disapproval under paragraph (d)(3)(iv)(C) ofthis section. The 120-day review period shall notbegin before receipt of acomplete certification application. 

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(C)Disapprovalnotice.Ifthe certification application shows that any monitoring system does notmeet the performance requirement&ofpart 75 of this chapter orif the certification application is incomplete and the requirement for disapproval under paragraph (d)(3)(iv)(B) ofthis section is met,then the permitting authority will issue a written notice of disapproval of the certification application. Upon

. issuance ofsuch notice ofdisapproval, the provisional certification is invalidated by the permitting authority and the data measured and recorded by each uncertified monitoring system shallnot be considered valid qualityassured data beginning with the date and hour ofprovisional certification (as defined under §75:20(a)(3) ofthis 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 -thatis disapproved for initial certification.

(D)Auditdecertification.The permitting authority or, for a CAIR S02 opt-in unit or aunit for which a CAIR opt-in permit application is submitted and notwithdrawn and aCAIR opt-in permit is notyet issued or denied under subpart III of this part, the Administrator may issue a notice of disapproval ofthe certification status of

a monitor in accordance with §96.272(b).

(v) Procedures forloss ofcertification. Ifthe permitting authority or the Administrator issues a notice of disapproval ofa certification application under paragraph (d)(3)(iv)(C) of this section or a notice of disapproval ofcertification status under paragraph (d)(3)(iv)(D) ofthis section, then: (A)The owner or operator shall substitute the following values, for each disapproved monitoring system, for eachhour ofunit operation during the period ofinvalid data specifiedunder § 75.20(a)(4)(iii), § 75.20(g)(7), or § 75.21(e) ofthis chapter and continuing until the applicable date and hour specified under 

### §75.20(a)(5)(i) or (g)(7) ofthis chapter:

(1)For a disapproved S02 pollutant concentration monitor and disapproved flow monitor, respectively, the maximum potential concentration of
S02 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 ofthis chapter.

(2) For a disapproved moisture monitoring system and disapproved diluent gas monitoring system, respectively, the minimum potential moisture percentage anid either'the maximum potential CO 2 concentration

or the minimum potential 02 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 ofthis chapter.

(3) For a disapproved fuel flowmeter system, the maximum potential fuel flow rate, as defined in section 2.4.2.1 ofappendix D to part 75 ofthis chapter.

(B) The CAIR designated representative shall submit a notification ofcertification 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 inthe permitting authority's or the Administrator's notice ofdisapproval,

no later than 30 unit operating days after the date ofissuance ofthe notice ofdisapproval:. (e) Initialcertificationand recertification procedures for units usingthelow massemissionexcepted methodologyunder§ 75.19 ofthis chapter.The owner or operator ofaunit qualified to use the low mass emissions (LME) excepted methodology under 

### §75.19 ofthis chapter shall meet the applicable certification and recertification requirements in §§ 75.19(a)(2) and 75.20(h) ofthis chapter. If the owner or operator ofsuch

a unit elects to certify a fuel flowmeter system forheat input determination, the

owner or operator shall also meet thecertification and recertification requirements in § 75.20(g) ofthis chapter.

(f) Certification/recertification. procedures foralternative monitoring systems. The CAIR designated representative ofeach unit for which the

owner or operator intends to use an alternative monitoring system approved by the Administrator and, ifapplicable, the permitting authority under subpart E ofpart 75 ofthis chapter shall comply with the applicable notification and application procedures of§75.20(f) of this chapter. 

### §96.272 Out ofcontrol periods.

(a) Whenever any monitoring system fails to meetthe quality-assurance and quality-control requirements or data validation requirements ofpart 75 of this chapter, data shall be substituted using the applicable missing data procedures in subpart D ofor appendix

D to part 75 ofthis chapter.

(b)Audit decertification. Whenever both an audit of amonitoring system and areview ofthe initial certification

or recertification application reveal that
any monitoring system should nothave been certified or'recertified because it did not meet aparticular performance specification or other requirement under 

### § 96.271 orthe applicable provisions of part 75 ofthis chapter,both at the time ofthe initial certification or recertification application submission and atthe time ofthe audit, the permitting authority or, fora CAIR S02 opt-in unit or aunit for which a CAIR opt-in permit application is submitted and not withdrawn and a CAIR opt-in permit is notyet issued or denied under subpart III ofthis part, the Administrator will issue a notice of disapproval ofthe certification status of such monitoring system. For the
purposes ofthis paragraph, an audit shall be either a field audit or an audit ofany information submitted to the permitting authority or the Administrator. By issuing the notice of disapproval, the permitting authority-or the Administrator revokes prospectively the certification status ofthe monitoring system. The data measured and recorded by the monitoring system shall
not be considered valid quality-assured data from the date ofissuance ofthe ,notification ofthe revoked certification
status untilthe 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 

### §96.271 for each disapproved monitoring system. 

### §96.273 Notifications.

The CAIR designated representative for a CAIR S02unit shall submit written notice to the permitting authority and the Administrator in accordance with §75.61 ofthis chapter, except that ifthe unit is not subject to an Acid Rain emissions limitation, the notification is only required to be sent to the permitting authority.

§96.274 Recordkeeplng and reporting.

(a) General provisions.The CAIR designated representative shall comply with all recordkeeping and reporting requirements in this section, the applfcable recordkeeping and reporting requirements in subparts F and G ofpart 75 ofthis chapter, and the requirements of§96.210(e)(1).

(b) Monitoring plans.The owner or operator ofa CAIR S02unit shall comply with requirements of

### § 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 ofthis part, §§ 96.283 and 96.284(a). 

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(c) Certificationapplications. The CAIR designated representative shall submit an application to the permitting authority within 45 days after " completing all initial certification or recertification tests required under § 96.271, including the information required under §75.63 ofthis chapter. (d) Quarterlyreports.The CAIR designated representative shall submit quarterly reports, as follows:

(1) The CAIR designated representative shall report the SO 2 mass emissions data and heat input data for the CAIR S0 2 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;

or (ii) For a unitthat commences commercial operation on or after July 1, 2008, the calendar quarter corresponding to the earlier ofthe date ofprovisional certification or the. applicable deadline forinitial certification under § 96.270(b), unless that quarter is the third orfourth quarter of2008, in which case reporting shall

commence if the quarter covering. January 1, 2009 through March 31, 2009. (2) The CAIR designated representative shall submit each quarterly reportto 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 §75.64 ofthis chapter. (3)For CAIR S02 units that are also subject to an Acid Rain emissions limitation orthe CAIR NOx Annual Trading Program orCAIR NOx.Ozone SeasoI! Trading Program, quarterly reports shall include the applicable data and information required by subparts F through H ofpart 75 of this chapter as applicable, in addition to the SO 2 mass emission data, heat input data, and other information required by this subpart.

(e) Compliancecertification.The CAIR designated representative shall submit to the Administrator a compliance certification (in a format prescribed by the Administrator) in support ofeach quarterly report based

on reasonable inquiry of those persons with primary responsibility for ensuring that all ofthe 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 ofthis subpart and part 75 ofthis chapter, including the quality assurance procedures and specifications; and

(2) For a unit with add-on SO 2 emission controls and for all hours where SO2 data are substituted in accordance with § 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 Bto part 75 ofthis chapter and the substitute data values do not systematically underestimate SO 2 emissions.


### §96.275 Petitions.

(a) The CAIR designated representative ofa CAIR SO 2 unit that is subject to an Acid Rain emissions limitation may submit apetition under §75.66 ofthis chapter to the Administrator requesting approval to apply an alternative to anyrequirement of this subpart. Application ofan alternative to any requirement ofthis subpart is in accordance with this subpart only to the extent that the petition is approved in writing by the Administrator, in consultation withthe permitting authority.

(b) The CAIR designated representative ofa CAIR S02 unit that is not subject to an Acid Rain emissions limitation may submit a petition under § 75.66 ofthis chapter to the permitting authority and the Administrator requesting approval to apply an alternative to anyrequirement ofthis subpart. Application ofan alternative to any requirement ofthis subpart is in accordance with this subpart only to the
extent that the petition is approved in writingbyboth the permitting authority and the Administrator.
§96.276 Additional requirements to provide heat Input data.

The owner or operator ofa CAIR SO 2 unitthat monitors and reports SO 2 mass emissions using a SO 2 concentration system and aflow system shall also monitor and report heat input rate at the unit level using'the procedures set forth inpart 75 ofthis chapter.
Subpart III-CAIR SO 2 Opt-in Units
§96.280 Applicability. N

A CAIR S02 opt-in unit must be a unit that:

(a)Is located in the State; (b)Is not a CAIR S02 unit under 

### §96.204 and is not covered by aretired unitexemption under § 96.205 that is in effect;

(c) Is not covered by a retired unit exemption under § 72.8 ofthis chapter that is ineffect and is not an opt-in

source under part 74 ofthis chapter; (d) Has or is required or qualified to have a title V operating permit or other federally enforceable permit; and

(e) Vents all ofits emissions to a stack and can meet the monitoring, recordkeeping, and reporting requirements ofsubpart HHH ofthis part. 

### §96.281 General.

(a)Except as otherwise provided in 

### §§ 96.201 through 96.204, 

### §§ 96.206 through 96.208, and subparts BBB and CCC and subparts FFF through HHH of this part, a CAIR S02 optzin unit shall be treated as a CAIR S02unit for purposes ofapplying such sections and subparts ofthis part.

(b) Solely for purposes of applying, as provided inthis subpart, the requirements of subpart HHH of this part to a unit for which aCAIR 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 SO 2 unit before issuance ofa CAIR opt-in permit for such unit.
§96.282 CAIR designated representative.

Any CAIR S0 2 opt-inunit, and any unit for which a CAIR opt-in permit application is submitted and not withdrawn and a CAIR opt-in permit is
notyet issued or denied under this subpart, located at the same source as

one or more CAIR S02 units shall have the same CAIR designated representative 'andalternate CAIR designated representative as such CAIR
S02 units.
§96.283 Applying forCAIR opt-in permit.

(a)Applying forinitialCAIR opt-in permit.The CAIR designated representative ofa unit meeting the requirements for a CAIR S02 opt-in unit in § 96.280 may apply for an initial CAIR opt-in permit at aty time, except

as provided under § 96.286(f) and (g), and, in orderto apply, must submit the following:

(1) A complete CAIR permit application under § 96.222;

(2) A certification, in a format specified by the permitting authority, that the unit:

(i) Is not a CAIR SO 2 unit under § 96.204 and is not covered by a retired unit exemption under § 96.205 that is in effect;

(ii) Is not covered by aretired unit exemption under § 72.8 ofthis chapter that is in effect;

(iii) Is not and, so long as the unit is

a CAIR opt-in unit,will notbecome, an opt-in source under part 74 ofthis chapter;

(iv) Vents all of its emissions to a stack; and 

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(v) Has documented heat input for

more than 876 hours during the 6 months immediately preceding submission ofthe CAIR permit application under 

### §96.222;

(3) A monitoring plan in accordance with subpart HHH ofthispart;

(4) A complete certificate of representation under § 96.213 consistent with 

### §96.282, ifno 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 SO 2 allowances under 

### §96.288(p) (subject to the conditions in §§ 96.284(h) and 96.286(g)).

(b) Dutyto reapply.(1) The CAIR designated representative ofa CAIR SO 2 opt-inunit shall submit a complete CAIR permit application under §96.222
to renew the CAIR opt-inunit permit in accordance with the permitting authority's regulations for title V operating permits, or permitting authority's regulations for other federally enforceable permits if applicable, addressing permit renewal.

(2) Unless the permitting authority issues anotification ofacceptance of withdrawal ofthe CAIR opt-in unit from the CAIR SO 2 Trading Program in accordance with §96.286 orthe unit becomes a CAIR SO 2 unit under 

### §96.204, the CAIR S02 opt-inunit shall remain subject to the requirements for a CAIR SO 2 opt-in unit, even ifthe CAIR designated representative for the CAIR SO 2 opt-in unit fails to submit a CAIR permit application that is required for renewal ofthe CAIR opt-in permit under paragraph (b)(1) ofthis section. 

### §96.284 Opt-In process.

The permitting authority will issue or deny a CAIR opt-in permit for aunit for which an initial application for aCAIR opt-in permit under 

### §96.283 is submitted in accordance with the following:

(a)Interimreviewofmonitoring plan. The permitting authority and the Administrator will determine, on an interim basis, the sufficiency ofthe. monitoring plan accompanying the initial application for a CAIR opt-in permit under §96.283. A monitoring plan is sufficient, for purposes of interim review, ifthe plan appears to contain information demonstrating that the SO 2emissions rate and heat input of the unit are monitored and reported in accordance with subpart HHH ofthis part. A determination of sufficiency shall notbe construed as acceptance or approval ofthe monitoring plan. (b)Monitoringandreporting.(1)(i) If the permitting authority and the Administrator determine that the monitoring plan is sufficient under paragraph (a) ofthis section, the owner

or operator shall monitor and report the SO 2 emissions rate and theheat input of the unit and all other applicable parameters, in accordance with subpart HHH ofthis part, starting on the date of certification ofthe appropriate monitoring systems under subpart HHH ofthis part and continuing until a CAIR opt-in permit is denied under §96.284(f)

or, ifa CAIR opt-in permit is issued; the date and time when the unit is 'withdrawn from the CAIR SO 2 Trading Program in accordance with §96.286.

(ii)The monitoring and reporting under paragraph (b)(1)(i) ofthis section shall include the entire control period immediately before the date on which the unit enters the CAIR SO 2Trading Program under §96.284(g), during which period monitoring system availability must not-beless than 90 percent under subpart HHH ofthis part and the unit must be in full compliancewith any applicable State orFederal emissions oremissions-related requirements.

(2) To the extent the SO 2 emissions
rate and the heat input ofthe unit are monitored and reported in accordance with subpart HHH ofthis part for one

ormore control periods, in addition to the control period under paragraph (b)(1)(ii) ofthis section, during which control periods monitoring system availability is not less than 90 percent under subpart HHH ofthis part and the unitis 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 S02 Trading Program under §96.284(g), such information shallbe used as provided in paragraphs (c) and (d) ofthis section.

(c) Baselineheatinput.The unit's baseline heat rate shall equal: (1) Ifthe unit's S02 emissions rate and heat input are monitored and reported for only one control period, in accordance with paragraph (b)(1) ofthis section, the unit's total heat input (in mmBtu) for the control period; or

(2) Ifthe unit's SO 2 emissions rate and heat input are monitored and reported for more than one control period, in accordance with paragraphs (b)(1) and (2) ofthis section, the average ofthe
amounts ofthe unit's total heat input (in mmBtu) forthe control period under paragraph (b)(1)(ii) ofthis section and the control periods under paragraph (b)(2) ofthis section. (d)BaselineS0 2emission rate. The unit's baseline SO2 emission rate shall equal:

(1)If the unit's SO 2 emissions rate and heat input are monitored and reported for only one control period, in accordance with paragraph (b)(1) ofthis section, the unit's SO 2 emissions rate (in lb/mmBtu) forthe control period;

(2) Ifthe unit's SO 2 emissions rate and heat input are monitored and reported for more than one control period, in accordance with paragraphs (b)(1) and (2) ofthis section, and the unit does not hav)e add-on S02 emission controls during any such control periods, the
average ofthe amounts ofthe unit's SO 2 emissions rate (in lb/mmBtu) forthe control period under paragraph (b)(1)(ii) ofthis section and the control periods under paragraph (b)(2) ofthis section; or

(3) Ifthe unit's SO 2 emissions rate and heat input are monitored and reported for more than one control period, in accordance with paragraphs (b)(1) and (2) ofthis section, arid the unit has addon S02 emission controls during any such control periods, the average ofthe
amounts ofthe unit's SO 2 emissions rate (inlb/mmBtu) for such control period during which the unit has add-on S02 emission controls.

(e)IssuanceofCAIR opt-inpermit. After calculating the baseline heat input and the baseline S02 emissions rate for the unit under paragraphs (c) and (d) of this section and ifthe permitting authority determines that the CAIR designated representative shows that.the unit meets the requirements for aCAIR SO 2 opt-in unit in § 96.280 and meets the elements certified in.§ 96.283(a)(2), the permitting authority will issue a CAIR opt-in permit. The permitting authority will provide acopy ofthe CAIR opt-in permit to the Administrator, who will then establish

a compliance account for the source that includes the CAIR S02 opt-in unit unless the source already has a compliance account.

(f) IssuanceofdenialofCAIR opt-in permit.Notwithstanding paragraphs (a) through (e) ofthis section, ifat any time before issuance ofa CAIR opt-in permit forthe unit, the permitting authority determines that the CAIR designated representative fails to show that the unit meets.the requirements for a CAIR S02 opt-in unit in §96.280 or meets the elements certified in §96.283(a)(2), the permitting authority will issue a denial ofa CAIR S02 opt-in permit for the unit.

(g) Dateofentryinto CAIR S02 Trading Program. A unit for which an initial CAIR opt-in permit is issued by the permitting authority shall become a CAIR S02 opt-in unit, and a CAIR S02 unit,-as ofthe later ofJanuary 1, 2010 

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orJanuary 1 ofthe first control period during which such CAIR opt-in permit is issued.

(h)RepoweredCAIR S0 2opt-in unit. (1) IfCAIR designated representative requests, and the permitting authority issues a CAIR opt-in permit providing for, allocation to a CAIR SO 2 opt-in unit ofCAIR SO 2 allowances under § 96.288(c) and such unit is repowered after its date ofentry into the CAIR S02 Trading Program under paragraph (g) of this section, the repowered unit shallbe treated as a CAIR S02 opt-in unit replacing the original CAIR S02 opt-in unit, as ofthe date ofstart-up ofthe repowered unit's combustion chamber.

(2) Notwithstanding paragraphs (c) and (d) ofthis section, as ofthe date of start-up under paragraph (h)(1) ofthis section, the repowered unit shall be deemed to have the same date of coimmencement ofoperation, date of
commencement ofcommercial operation, baseline heat input, and baseline S02 emission rate as the original CAIR S02 opt-in hnit, and the original CAIR SO 2 opt-in unit shall no longer be treated as a CAIR opt-in unit

or a CAIR SO 2

### unit.

§96.285 CAIR opt-in permit contents.

(a) Each CAIR opt-in permit will contain:

(1) All elements required for a complete CAIR permit application under § 96.222;

(2) The certification in §96.283(a)(2); (3) The unit's baseline heat input under §96.284(c);

(4) The unit's baseline S02 emission
rate under §96.284(d);

(5) A statement whether the unit is to be allocated CAIR S02 allowances under §96.288(c) (subject to the conditions in §§ 96.284(h) and 96.286(g));

(6) A statement that the unit may withdraw from the CAIR SO 2 Trading Program only in accordance with §96.286; and

(7) A statement that the unit is subject to, and the owners and operators ofthe unitmust comply with, the requirements of § 96.287.

(b)Each CAIR opt-in permit is deemed to incorporate automatically the definitions ofterms under §96.202 and,
upon recordation by the Administrator under subpart FFF or GGG ofthis part

orthis subpart, every allocation, transfer, or deduction ofCAIR SO2 allowances to or from the compliance
account ofthe source that includes a CAIR S02 opt-in unit covered by the CAIR opt-in permit.
§96.286 Withdrawal from CAIR SO 2 Trading Program.

Except as provided under paragraph (g) ofthis section, a CAIR SO 2 opt-in finit may withdraw from the CAIR SO 2 Trading Program, but only if the permitting authority issues a notification to the CAIR designated representative ofthe CAIR S02 opt-in unit ofthe acceptance ofthe withdrawal ofthe CAIR SO 2 opt-in unit in accordance withparagraph (d)ofthis section.

(a)Requestingwithdrawal.In order to withdraw a CAIR opt-in unit from the CAIR S02 Trading Program, the CAIR designated representative ofthe CAIR S02 opt-in unit shall submit to the permitting authority arequest to withdraw effective as ofmidnight of December 31 ofa specified calendar
year, which date must be at least 4 years after December 31 ofthe year ofentry into the CAIR S02 Trading Program under §96.284(g). The request must be submitted no later than 90 days before the requested effective date of withdrawal.

(b) Conditions forwithdrawal.Before

a CAIR S02 opt-in unit covered by a request under paragraph (a) ofthis section may withdraw from the CAIR S02 Trading Program and the CAIR optin permit may be terminated under paragraph (e) ofthis 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 S02 opt-in unit must meet the requirement to hold CAIR S02 allowances under § 96.206(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 ofthe source that includes the CAIR SO 2 opt-in unit CAIR S02 allowances equal in number to and allocated for the same or a prior control period as any CAIR S02 allowances allocated to the CAIR S02 opt-in unit under §96.188 for any control-period for which the withdrawal is to be effective. Ifthere are no remaining CAIR S02 units at the source, the Administrator will close-the compliance account, and the owners and operators of the CAIR S02 opt-in unit may submit aCAIR S02 allowance transfer for any remaining •CAIR S02 allowances to another CAIR S02 Allowance Tracking System in accordance with subpart GGG ofthis part.

(c) Notification.(1) After the requirements for withdrawal under paragraphs (a) and (b) ofthis section are met (iicluding deduction ofthe full
amount ofCAIR SO 2 allowances required), the permittifig authority will issue a notification to the-CAIR designated representative ofthe CAIR S02 opt-in unit ofthe acceptance ofthe withdrawal ofthe CAIR S02 opt-in unit

as ofmidnight on December 31 ofthe calendar year for which the withdrawal

was requested.

(2) If the requirements for withdrawal under paragraphs (a) and (b) ofthis section are not met, the permitting authority will issue a notification to the CAIR designated representative ofthe 

### CAIR S02 opt-in unit that the CAIR S02 opt-in unit's request to withdraw is denied. Such CAIR S02 opt-in unit shall continue to be a CAIR S02 opt-in unit.

(d)Permitamendment.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 S02 optin unit to terminate the CAIR opt-in permit for such unit as ofthe effective date specified under paragraph (c)(1) of this section. The unit shall continue to be a CAIR SO 2opt-in unit until the effective date ofthe termination and shall comply with all requirements under the CAIR S02 Trading Program concerning any control periods for which the unit is a CAIR S02 opt-in unit, even ifsuch requirements arise or must be complied with after the withdrawal takes effect.

(e)Reapplicationupon failureto meet' conditionsofwithdrawal. If the permitting authority denies the CAIR S02 opt-in unit's request to withdraw, the CAIR designated representative may submit another request to withdraw in accordance with paragraphs (a) and (b) ofthis section.

(f)Ability toreapplyto the CAIR S02 TradingProgram. 

### Once a CAIR S02 opt-in unit withdraws from the CAIR
S02 Trading Program and its CAIR optin permit is terminated under this section, the CAIR designated representative may not submit another application for a CAIR opt-in permit under § 96.283 for such CAIR S02 optin unitbefore 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 betreated

as an initial application fora CAIR optinpermit under § 96.284.

(g) Inabilityto withdraw. Notwithstanding paragraphs (a)through (f) ofthis section, a CAIR S02 opt-in unit shall not be eligible to withdraw from the CAIR S02 Trading Program if the CAIR designated representative of the CAIR S02 opt-in unit requests, and the permitting authority issues a CAIR opt-in permit providing for, allocation
to the CAIR S02 opt-in unit ofCAIR S02 allowances under § 96.288(c). 

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§96.287 Change Inregulatory status.

(a)Notification.Ifa CAIR S02 opt-in unit becomes a CAIR SO 2 unit under § 96.204, then the CAIR designated representative shall notify in writing the permitting authority and the Administrator ofsuch change in the CAIR.SO 2 opt-in unit's regulatory'status, within 30 days ofsuch change. (b) Permitting authority'sand Administrator's actions.(1)If aCAIR

S02 opt-in unit becomes a CAIR S02 unit under §96.204, the permitting authority will revise the CAIR S02 optin unit's CAIR opt-in permit to meet the requirements ofa CAIR permit under § 96.223 as ofthe date on which the CAIR S02 opt-in unit becomes a CAIR
S02 unit under §96.204..

(2)(i) The Administrator will deduct from the 'compliance account ofthe

source that includes a CAIR S02 opt-in unit that becomes aCAIR SO 2unit under § 96.204, CAIR SO 2 allowances equal in number to and allocated for the

same or a prior control period as:

(A) Any CAIR S02 allowances allocated to-the CAIR S02 opt-in unit under § 96.288 for any control period after the date on which the CAIR S02 opt-inunit becomes aCAIR S02unit under §96.204; and

(B) -Ifthe date on which the CAIR S02 opt-inunit becomes a CAIR SO 2unit under § 96.204 is notDecember 31, the CAIR S02 allowances allocated to the CAIR S02 opt-inunit under § 96.288 for the controlperiod that includes the date

on which the CAIR S02 opt-in unit becomes aCAIR S02 unit under §96.204, multiplied by theratio ofthe number of days, in the control period, starting with the date on whichthe CAIR SO 2 opt-in unit becomes a CAIR
S02 unit under § 96.204 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 ofthe source that includes the CAIR S02 unit that becomes a CAIR S02 unit under § 96.204 contains the CAIR S02 allowances necessary for completion of the deduction under paragraph (b)(2)(i) ofthis section.

(3)(i) For every control period after the date on which a CAIR S02 opt-in unit becomes a CAIR S02 unit under § 96.204, the CAIR S02 opt-in unit will be treated, solely for purposes ofCAIR
S02 allowance allocations under § 96.242, as a unit that commences operation on the date on which the CAIR S02 opt-in unit becomes a CAIR

S02 unit under § 96.204 and will be allocated CAIR S02 allowances under § 96.242.. (ii) Notwithstanding paragraph (b)(3)(i) ofthis section, ifthe date on which the CAIR S02 opt-in unit becomes a CAIR S02 unit under § 96.204 is not January 1,the following number ofCAIR S02 allowances will be allocated to the CAIR S02 opt-in unit (as

a CAIR S02 unit) under § 96.242 for the control period that includes the date on which the CAIR S02 opt-in unit becomes a CAIR S02 unit under §96.204:

(A) The number ofCAIR S02 allowances otherwise allocated to the CAIR S02 opt-in unit (as a CAIR S02 unit) under § 96.242 for the control period multiplied by;

(B)The ratio ofthe number of days, inthe control period, starting with the date on which the CAIR S02 opt-in unit becomes aCAIR S02 unit under § 96.204, divided by the total number of days in the control period; and

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


### §96.288 S02 allowance allocationsto CAIR SO 2opt-In units. (a) Timingrequirements.(1) When the CAIR opt-in permit is issued under § 96.284(e), the permitting authority will allocate CAIR S02 allowances to the CAIR S02 opt-in unit, and submitto the Administrator the allocation for the control period in which a CAIR S02 optinunit enters the CAIR S02 Trading Program under § 96.284(g), in accordance withparagraph (b) or (c) of this section.

(2) By no later than October 31 ofthe control period in which a CAIR opt-in .unit enters the CAIR S02 Trading Program under § 96.284(g) and October 31 ofeach year thereafter, the permitting authority will allocate CAIR S02 allowances to the CAIR S02 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 S02 opt-in unit, in accordance with paragraph (b)

or (c) ofthis section.

.(b) Calculationofallocation.For each control period for which a CAIR S02 opt-in unit is to be allocated CAIR S02 allowances, the permitting authority will allocate in accordance with the following procedures:

(1) The heat input (in mmBtu) used for calculating the CAIR S02 allowance allocation will be the lesser of:

(i) The CAIR S02 opt-in unit's baseline heat input determined under § 96.284(c); or

(ii) The CAIR S02 opt-in unit's heat input, as determined in accordance with subpart HHH ofthis part, for the immediately prior control period, except when the allocation is being calculated forthe control period in which the CAIR S02opt-inunit enters the CAIR S02 Trading Program under §96.284(g).

(2) The S02 emission rate (inlb/ mmBtu) used for calculating CAIR S02 allowance allocations willbe the lesser of:

(i) The CAIR S02 opt-in unit's baseline S02 emissions rate (in lb/ mmBtu) determined under §96.284(d) and multiplied by 70 percent; or

(ii) The most stringent State or Federal S02 emissions limitation applicable to the CAIR S02opt-in unit
at any time during the control period for which CAIR S02 allowances are to be allocated.

(3) The permitting authority will allocate CAIR S02 allowances to the CAIR S02 opt-in unit with a tonnage equivalent equal to, or'less than by the smallest possible amount, the heat input under paragraph (b)(1) ofthis section, multiplied by the S02emission rate under paragraph (b)(2) ofthis section, and divided by 2,000 lb/ton.

(c) Notwithstanding paragraph (b) of this section and ifthe CAIR designated representative requests, and the permitting authority issues a CAIR optin permit providing for, allocation to a CAIR S02 opt-in unit ofCAIR S02 allowances under this paragraph (subject to the conditions in 

### §§ 96.284(h) and 96.286(g)), the permitting authority will allocate to the CAIR S02 opt-in unit as follows: (1)For each control period in 2010 through 2014 for which the CAIR S02 opt-in unit is to be allocated CAIR S02 allowances,

(i)The heat input (inmmBtu) usedfor calculating CAIR S02 allowance allocations will be determined as described in paragraph (b)(1) ofthis section.

(ii)The S02 emission rate (in lb/ mmBtu)used for calculating CAIR S02 allowance allocations will be the lesser of:(A)The CAIR S02 9pt-in unit's baseline S02 emissions rate (inlb/ mmBtu) determined under § 96.284(d);

or (B) The most stringent State or Federal S02emissions limitation applicable to the CAIR S02 opt-in unit
at any time during the control period in which the CAIR S02 opt-in unit enters the CAIR S02 Trading Program under §96.284(g).

(iii)The permitting authority will allocate CAIR S02 allowances to the CAIR S02 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) ofthis section, multiplied by the S02emission rate 

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under paragraph (c)(1)(ii) ofthis section, and divided by 2,000 lb/ton.

(2) For each control period in 2015 and thereafter for which the CAIR S02 opt-in unit is tobe allocated CAIR SO 2 allowances,

(i) The heat input (inmmBtu) used for calculating the CAIR S02 allowance allocations will be determined as described inparagraph (b)(1) ofthis section.

(ii) The SO 2 emission rate (inlb/ mmBtu) used for calculating the CAIR S02 allowance allocation will be the lesser of:

(A) The CAIR SO 2 opt-in unit's baseline SO 2 emissions rate (inlb/ mmBtu) determined under § 96.284(d) multiplied by 10 percent; or

(B) The most stringent State or Federal SO 2 emissions limitation applicable to the CAIR SO 2 opt-in unit
at any time during the control period for which CAIR SO 2 allowances are to be allocated.

(iii) The permitting authority will allocate CAIR SO 2allowances to the CAIR SO 2 opt-in unitwith atonnage equivalent equal to, or less than by the smallest possible amount, the heat input under paragraph (c)(2)(i) ofthis section, multiplied by the SO2 emission rate under paragraph (c)(2)(ii) ofthis section, and divided by 2,000 lb/ton.

(d)Recordation.(1) The Administrator will'record, in the compliance account ofthe source that includes the CAIR SO 2 opt-in unit, the CAIR SO 2 allowances allocated by the permitting authority to the CAIR SO 2 opt-in unitunder paragraph (a)(1) ofthis section.

(2)By December 1 ofthe control. period in which a CAIR opt-in unit
enters the CAIR SO 2 Trading Program under §96.284(g), and December 1of each year thereafter, the Administrator will record, inthe compliance account ofthe source that includes the CAIR SO 2 opt-in unit, the CAIR SO2 allowances allocated by the permitting authority to the CAIR SO 2 opt-in unit under paragraph (a)(2) ofthis section. N 4. Part 96is amended by adding subparts AAAA through CCCC, adding and reserving subpart DDDD and adding subparts EEEE through IIII to read as follows:
Subpart AAAA--CAIR NOx Ozone Season Trading Program General Provisions

Sec. 96.301 Purpose. 96.302 Definitions. 96.303 Measurements, abbreviations, and acronyms. 96.304 Applicability. 96.305 Retired unit exemption. .96.306 Standard requirements. 96.307 Computation oftime. 96.308 Appeal procedures.
Subpart BBBB-CAIR Designated Representative for CAIR NOx Ozone Season Sources

96.310 Authorization and responsibilities of CAIR designated representative. 96.311 Alternate CAIR designated representative. 96.312 Changing CAIR designated representative and alternate CAIR designated representative'; changes in

owners and operators. 96.313 Certificate ofrepresentation. 96.314 Objections concerning CAIR designated representative.
Subpart CCCC--Permits

96.320 General CAIR NOx Ozone Season Trading Program permit requirements. 96.321 Submission ofCAIR permit applications. 96.322 Information requirements for CAIR permit applications. 96.323 CAIR permit contents and term. 96.324 CAIR permit revisions.
Subpart DDDD-[Reserved]

Subpart EEEE-CAIR NOx Ozone Season Allowance Allocations

96.340 State trading budgets. 96.341 Timing requirements for CAIRNOx Ozone Season allowance allocations. 96.342 CAIRNOx Ozone Season allowance allocations.
Subpart FFFF-CAIR NOx Ozone Season Allowance Tracking System

96.350 [Reserved] 96.351 Establishment ofaccounts. 96.352 Responsibilities ofCAIR authorized account representative. 96.353 Recordation ofCAIRNOx Ozone Season allowance allocations. 96.354 Compliance with CAIR NOx emissions limitation. 96.355 Banking. 96.356 Account error. 96.357 Closing ofgeneral accounts. Subpart GGGG-CAIR NOx Ozone Season Allowance Transfers

96.360 Submissiqn ofCAIR NOx Ozone Season allowance transfers. 96.361 EPArecordation. 96.362 Notification.
Subpart HHHH-Monitoring and Reporting

96.370 General requirements. 96.371' Initial certification and recertification procedures. 96.372 Out ofcontrol periods. 96.373 Notifications. 96.374 Recordkeeping andreporting. 96.375 Petitions. 96.376 Additional reqpirements to provide heat inputdata. Subpart III-CAIR NOx Ozone Season Opt-in Units

96.380 Applicability. 96.381 General. 96.382 CAIR designated representative. 96.383 Applying for CAIR opt-in permit. 96.384 Opt-in process. 96.385 CAIR opt-in permit contents., 96.386 Withdrawal from CAIR NOx Ozone Season Trading Program. 96.387 Change in regulatory status. 96.388 NOx allowance allocations to CAIR NOx Ozone Season opt-inunits.
Subpart AAAA-CAIR NOx Ozone Season Trading Program General Provisions 

### §96.301 Purpose.

This subpart and subparts BBBB through IIII establish the model rule comprising general provisions and the designated representative, permitting, allowance, monitoring, and opt-in provisions for the State Clean Air Interstate Rule (CAIR) NOx Ozone Season Trading Program, under section 110 ofthe Clean Air Act and § 51.123 ofthis chapter, as a means ofmitigating interstate transport of ozone and nitrogen oxides. The owner or operator of aunit or a source shall comply with the requirements ofthis subpart and subparts BBBB through IIII as amatter offederal law only ifthe State with jurisdiction over.the unit and the source incorporates by reference such subparts

or otherwise adopts the requirements of such subparts in accordance with §51.123(aa)(1) or (2), ofthis chapter, the State submits to the Administrator one

or more revisions ofthe State implementation plan that include such adoption, and the Administrator
approves such revisions. Ifthe State adopts the requirements ofsuch subparts in accordance with § 51.123(aa)(1.) or (2), (bb), or (dd) ofthis chapter, then the State authorizes the Administrator toassist the State in

- implementing the CAIR NOx Ozone Season Trading Program by carrying out the functions set forth forthe Administrator in such subparts.

§96.302 Definitions.

The terms used in this subpart and subparts BBBB through 1111 shallhave 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.

AcidRainemissionslimitationmeans
alimitation on emissions ofsulfur dioxide ornitrogen oxides under the Acid Rain Program. 

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Acid RainProgrammeans a multistate sulfui dioxide and nitrogen oxides air pollution control and emission reduction program established by the Administrator under title IV ofthe CAA and parts 72 through 78 of this chapter.

Administrator means the Administrator ofthe United States Environmental Protection Agency or the Administrator's duly authorized representative.

Allocate or allocationmeans, with regard to CAIR NOx Ozone Season allowances issued under subpart EEEE, the determination by the permitting authority orthe Administrator ofthe
amount ofsuch CAIR NOx Ozone Season allowances to be initially credited to a CAIR NOx Ozone Season unit or a new unit set-aside and, with regard to CAIR NOx Ozone Season allowances issued under §96.388 or § 51.123(aa)(2)(iii)(A) ofthis chapter, the determination by the permitting authority ofthe amount ofsuch CAIR NOx Ozone Season allowances to be initially credited to a CAIR NOx Ozone Season unit.

Allowance transferdeadlinemeans, fora control period, midnight of November 30, ifit is abusiness day, or, ifNovember 30 is not a business day, midnight ofthe firstbusiness day thereafter immediately following the control period and isthe deadline by which aCAIR NOx Ozone Season allowance transfer must be submitted forrecordation 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 § 96.354.

AlternateCAIR designated representativemeans, for a CAIR NOx Ozone Season source and eachCAIR NOx Ozone Season unit at the source, the natural person who is authorized by the owners and operators ofthe source and all such units atthe source in accordance with subparts BBBB and IIII of this part, to act on behalf ofthe CAIR designated representative inmatters pertaining to the CAIRNOx Ozone Season Trading Program. Ifthe 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. Ifthe CAIR NOx Ozone Season source is also a CAIR SO 2 source, then this natural
person shallbe the sam~e person as the alternate CAIR designated representative under the CAIR SO 2 Trading Program. Ifthe 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.

Automateddataacquisitionand handlingsystem or DAHS means that component ofthe continuous emission monitoring system, or other emissions monitoring system approved for use under subpart HHHH ofthis part, designed to interpret and convert individual output signals from pollutant concentration monitors, flow monitors, diluent gas monitors, and other component parts ofthe monitoring system to produce a continuous record ofthe measured parameters inthe
measurement units required by subpart HHHH ofthis part.

Boilermeans 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 cogenerationunit

means a cogeneration unit inwhich the
energy input to the unit is firstused to produce useful thermal energy and at least some ofthe reject heat from the useful thermal energy application or process is then used forelectricity production.

CAIR authorizedaccount representative means, with regard to a general account, a responsible natural
person whois authorized, in accordance with subparts BBBB and 111 ofthis 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 ofthe

source.

CAIR designatedrepresentative

means, fora 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 ofthe source and all such units at the source, in accordance with subparts BBBB and IIII ofthis part, to. represent and legally bind each owner and operator in matters pertaining to the CAIR NOx Ozone Season Trading Program. Ifthe 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. Ifthe CAIR NOx Ozone Season source is also a CAIR SO 2 source, then this natural
person shallbe the same person as the CAIR designated representative under the-CAIR SO 2 Trading Program. If the CAIR NOx Ozone Season source is also subject to the Acid Rain Program, then this natural pers6n shall be the same person as the designated representative under the Acid Rain Program. CAIR NOxAnnual TradingProgram

means a multi-state nitrogen oxides air pollution control and emission reduction program approved and administered by the Administrator in accordance with subparts AA through II ofthis part and § 51.123 ofthis chapter,

as a means ofmitigating interstate transport offine particulates and nitrogen oxides.

CAIR NOx Ozone Seasonallowance

means a limited authorization issued by the permitting authority under subpart EEEE ofthis part, § 96.388, or § 51.123(aa)(2)(iii)(A), (bb)(2)(iii) or (iv),

or (dd)(3) or (4) ofthis chapter to emit

one ton ofnitrogen oxides during a control period ofthe specified calendar
year forwhich the authorization is allocated or ofany calendar year thereafter under the CAIR NOx Ozone Season Trading Program or a limited authorization issued by the permitting authority.for a control period during 2003 through 2008 under the NOx Budget Trading Program to emit one ton ofnitrogen oxides during acontrol period, provided that the provision in § 51.121(b)(2)(i)(E) ofthis chapter shall
notbe used in applying this definition. An authorization to emit nitrogen oxides that is notissued under provisions ofa State implementation plan that meet the requirements of §51.121(p) ofthis chapter or § 51.123(aa)(1) or (2), (and (bb)(1)), (bb)(2), or (dd) ofthis chapter shall not be aCAIR NOx Ozone Season allowance.

CAIR NOx OzoneSeasonallowance deductionor deduct.CAIRNOx Ozone Seasonallowancesmeans the permanent withdrawal ofCAIR NOx Ozone Season allowances by the Administrator from a complianceaccount in order to account for a specified number oftons oftotal nitrogen oxides emissions from all CAIR NOx Ozone Season units at a CAIR NOx Ozone Season source for acontrol " period, determined in accordance with subpart HHHH ofthis part, or to account for excess emissions.

CAIR NOx Ozone SeasonAllowance TrackingSystem 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 SeasonAllowance TrackingSystem accountmeans an account in the CAIR NOx Ozone Season Allowance Tracking System established by the Administrator forpurposes of recording the allocation, holding,

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transferring, or deducting ofCAIR NOx Ozone Season allowances..

CAIR NOx Ozone Season allowances heldor holdCAIR NOx Ozone Season allowancesmeans 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 ofthis part, in a CAIR NOx Ozone Season Allowance Tracking System account.

CAIR NOx Ozone Seasonemissions limitationmeans, for a CAIRNOx Ozone Season source, the tonnage equivalent ofthe CAIR NOx Ozone. Season allowances available for deduction forthe source under § 96.354(a) and (b) for a control period.

CAIR NOx Ozone Season Trading Programmeans a multi-state nitrogen oxides air pollution control and emission reduction program approved and administered by the Administrator in accordance with subparts AAAA through IIII ofthis part and § 51.123 of this chapter, as a means ofmitigating interstate transport of ozone and nitrogen oxides.

CAIR NOx Ozone Seasonsourte

means a source that includes one or

more CAIR NOx Ozone Season units. CAIR NOx Ozone Season unitmeans

a unit that is subject to the CAIR NOx Ozone Season Trading Program under § 96.304 afid, except for purposes of § 96.305 and subpart EEEE ofthis part,

a CAIR NOx Ozone Season opt-in unit under subpart IIII ofthis part. CAIR NOxsourcemeans a source that includes one or more CAIR NOx units. 0AIR NOx unitmeans a unit that is subject to the CAIR NOx Annual Trading Program under § 96.104 and a CAIR NOx opt-in unit under subpart II ofthis part. CAIRpermitmeans the legally binding and federally enforceable written document, orportion of such document, issued by the permitting authority under subpart CCCC ofthis 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 ofthe source and each such unit.

CAIR S0 2 sourcemeans a source that includes one or more CAIR SO 2units.

CAIR S0 2 TradingProgram means a multi-state sulfur dioxide air pollution control and emission reduction program approved and administered by the Administrator in accordance with subparts AAA through III ofthis part and § 51.124 ofthis chapter, as a means ofmitigating interstate transport offine particulates and sulfur dioxide.

CAIR S0 2 unitmeans a unit that is subject to the CAIR SO 2Trading Program under §96.204 and a CAIR SO 2 opt-in unit under subpart III ofthis part.

CleanAir.Act or CAA means the Clean Air Act, 42 U.S.C. 7401, et seq.

Coalmeans any solid fuel classified as anthracite, bituminous, subbituminous,

or lignite.

Coal-derived fuelmeans any fuel (whether in a solid, liquid, or gaseous state) produced by the mechanical, thermal, or chemical processing ofcoal.

Coal-firedmeans: (1) Except for purposes of subpart EEEE ofthis part, combusting any amount ofcoal or coal-derived fuel, alone orin combination with any amount ofany other fuel, during any year; or

(2) For purposes ofsubpart 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.

Cogenerationunitmeans 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 ofenergy; and

(2) Producing during the 12-month period starting on the date the unit first produces electricity and during any calendar year after which the unit first produces electicity-

(i) For a topping-cycle cogeneration unit,

(A) Useful thermal energy not less than 5 percent oftotal energy output; and

(B) Useful power that, when added to one-halfofuseful thermal energy produced, is notless then 42.5*percent oftotal energy input, ifuseful thermal
energy produced is 15 percent ormore oftotal energy output, or not less than 45 percent oftotal energy input, if useful thermal energy produced is less than 15 percent oftotal energy output.

(ii) For a bottoming-cycle cogeneration unit, useful power not less than 45 percent oftotal energy input. Combustionturbinemeans: (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) Ifthe enclosed device under paragraph (1) ofthis definition is combined cycle, any assbciated heat
recovery steam generator and steam turbine. Commencecommercialoperation

- means, withregard to a unit serving a generator: (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 §96.305.

(i) For a unit that is a CAIR NOx Ozone Season unit under §96.304 on the date the unit commences commercial operation as defined in paragraph (1) of this definition and that subsequently undergoes a physical change (otherthan replacement ofthe unit by a unit at the same source), such date shallremain the unit's date of
commencement ofcommercial operation. "

(ii) For a unit that is a CAIR NOx Ozone Season unit under § 96.304 on the date the unit commences commercial operation as defined in paragraph (1)of this definition and that is subsequently replaced by a unitat the

same source (e.g., repowered), the replacement unit shallbe treated as a separate unit with a separate date for
commencement ofcommercial operation as defined in paragraph (1), (2), or (3) ofthis definition as appropriate.

(2) Notwithstanding paragraph (1) of this definition and except as provided in §96.305, for aunit that is not a CAIR NOx Ozone Season unit under,§ 96.304

on the date the unit commences commercial operation as defined in paragraph (1)of this definition and is
not aunit under paragraph (3) ofthis definition, the unit's date for
commencement ofcommercial operation shall be the date on which the unit becomes a CAIR NOx Ozone Season unit under § 96.304.

(i) For a unit with a date for
commencement ofcommercial operation as defined in paragraph (2) of this definition and that subsequently undergoes a physical change (other than replacement ofthe unit by aunit-at the

same source), such date shall remain the unit's date of commencement of commercial operation.

(ii) For a unit with a date for
commencement ofcommercial operation as defined inparagraph (2) of this definition and that is subsequently replaced by aunit atthe same source (e.g., repowered), the replacement unit shallbe treated as a separate unit with

a separate date for commencement of commercial operation as defined in paragraph (1), (2), or (3) ofthis definition as appropriate.

(3) Notwithstanding paragraph (1) of this definition and except as provided in § 96.384(h) or §96.387(b)(3), for a CAIR NOx Ozone Season opt-inunit or 

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a unit for which a CAIR opt-in permit application is submitted and not withdrawn and a CAIR opt-inpermit is
not yet issued or denied under subpart 1111 ofthis part, the unit's date for
commencement ofcommercial operation shall be the date on which the

owner or operator is required to start monitoring and reporting the NOx emissions rate and the heat input ofthe unit under § 96.384(bJ(1)(i).

(i) For a unit with adate for
commencement ofcommercial. operation as defined in paragraph (3) of" this definition and that subsequently undergoes a physical change (other than replacement ofthe unit by a unit at the

same source), such date shallremain the unit's date ofcommencement of' dommercial operation.

(ii)For aunit with a date for
commencement ofcommercial operation as defined inparagraph (3) of this definition and that is subsequently replaced by a unit atthe same source (e.g., repowered), the replacement unit shallbe treated as a separate unit with

a separate date for'commericement of commercial operation as defined-in paragraph (1), (2), or (3) ofthis definition as appropriate.

(4) Notwithstanding paragraphs (1) through (3) ofthis definition, for aunit
not serving a generator producing electricity for sale, the unit's date of
commencement ofoperation shall also be the unit's date ofcommencement of commercial operation.

Commence operationmeans: (1) To have begun any mechanical, chemical, or electronic process, including, with regard to a unit, start-up ofa unit's combustion chamber, except

as provided in § 96.305. i) For a unit that is a CAIR NOx Ozone Season unit under §,96.304 on the date the unit commences operation

as defined in paragraph (1) ofthis definition and that subsequently undergoes a physical change (otherthan replacement ofthe unit by a unit atthe

same source), such date shall remain the unit's date ofcommencement of operation.

(ii)For a unit that is a CAIR NOx Ozone Season unit under § 96.304 on the date the unit commences operation

as defined in paragraph (1) ofthis definition and that is subsequently replaced by aunit atthe same source (e.g., repowered), the replacement unit shall be treated as a separate unit with

a separate date for commencement of operation as defined in paragraph (1), (2), or (3) ofthis definition as appropriate.

(2) Notwithstanding paragraph (1) of this definition and except as provided in § 96.305, for a unit that is not a CAIR NOx Ozone Season unit under § 96.304

on the date theunit commences operation as defined inparagraph (1) of this definition and is not aunit under paragraph (3) ofthis definition, the unit's date for commencement of operation shallbe the date on which the unit becomes a CAIR NOx Ozone Season unit under § 96.304.

(i) For aunit with a date for
commencement ofoperation as defined in paragraph (2)ofthis definition and that subsequently undergoes a physical change (other than replacement ofthe unit by aunit atthe same source), such date shall remain the unit's date of
commencement ofoperation.

(ii) For aunit with a date for
commencement of operation as defined in paragraph (2) ofthis definition and that is subsequently replaced by a unit
atthe same source (e.g., repowered), the replacement unit shall betreated as a separate unit with a separate date for
commencement of operation as defined in paragraph (1),(2), or (3) ofthis definition as appropriate.

(3) Notwiihstanding paragraph (1) of this definition and except as provided in § 96.384(h) or § 96.387(b)(3), fora CAIR NOx Ozone Season opt-in unit or a-unit for which a CAIR opt-in permit application is submitted and not withdrawn and a CAIR opt-in permit is
notyet issued or denied under subpart

II ofthis part, the unit's date for
commencement of operation shallbe the date on which the owner or operator is required to start monitoring and reporting the NOx emissions rate and the heat input ofthe unit under, § 96.384(b)(1)(i);

(i) For a unit with a date for
commencement of operation as defined in paragraph (3) ofthis definition and that subsequently undergoes a physical change (other than replacement ofthe unit by a unit at the same source), such date shall remain the unit's date of
commencement ofoperation.

(ii) For a unit with a date for
commencement ofoperation as defined in paragraph (3) ofthis definition and that is subsequently replaced by a unit
at the source (e.g., repowered), the replacement unit shallbe treated as a separate unit with a separate date for
commencement ofoperation as defined in paragraph (1), (2), or (3) ofthis definition as appropriate.

Common stack means a single flue through which emissions from 2 or

more units are exhausted. Complianceaccountmeans a CAIR NOx Ozone Season Allowance Tracking System account, established by the Administrator fora CAIR NOx Ozone Season source under subpart FFFF or IIII ofthis 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 

### §96.354.

Continuousemissionmonitoring system or CEMSmeans the equipment required under subpart HHHH ofthis part to sample, analyze, measure, and provide, by means ofreadings recorded
at least once every 15 minutes (using an automated data acquisition and handling system (DAHS)), a permanent record ofnitrogen oxides emissions, stackgas volumetric flow rate, stack gas moisture content, and oxygen orcarbon dioxide concentration (as applicable), in

amanner consistent with part 75 ofthis chapter. The following systems are the principal types ofcontinuous emission monitoring systems required under subpart HHHH ofthis part:

(1) A flow-monitoring system, consisting ofa stack flow rate monitor and an automated data acquisition and handling system and providing a permanent, continuous record ofstack
gas volumetric flow rate, in standard cubic feet per hour (scfh);

(2) A nitrogen oxides concentration monitoring system, consisting ofa NOx pollutant concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record ofNOx emissions, inparts per million (ppm);

(3) A nitrogen oxides emission rate (or NOx-diluent) monitoring system, consisting of aNOx pollutant concentration monitor, a diluent gas (CO 2 or 02) monitor, and an automated data acquisition and handling system and providing apermanent, continuous record ofNOx concentration, in parts per million (ppm), diluent gas concentration, inpercent C0 2 or 02, and NOx emission rate, in pounds per million British thermal units (lb/ mmBtu);

(4) A moisture monitoring system, as defined in § 75.11(b)(2) ofthis chapter and providing a permanent, continuous record ofthe stack gas moisture content, in percent H 20;

(5) A carbon dioxide mbnitoring system, consisting ofa CO 2 pollutant concentration monitor (or an oxygen monitor plus suitable mathematical equations from which the CO 2 concentration is derived) and an automated data acquisition and handling system and providing a permanent, continuous record ofCO2 emissions, inpercent C0 2;and 

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(6) An oxygen monitoring system, consisting ofan 02 concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record of.0 2 in percent 02.

Control periodor ozone seasonmeans the period beginning May 1 ofa calendar year and ending on September 30 ofthe same year,inclusive.

Emissionsmeans 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 ofthis part.

. Excess emissionsmeans 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 offossil fuel in any calendar-year.

Fueloil means any petroleum-based fuel (including diesel fuel or petroleum derivatives such as oil tar) and any recycled orblended petroleum products

or petroleum by-products used as afuel whether in a liquid, solid, or gaseous state.

Generalaccountmeans a CAIR NOx Ozone Season Allowance Tracking System account, established under subpart FFFF ofthis part, that is not a compliance account.

Generator means a device that produces electricity.

Grosselectricaloutputmeans, with regard to a cogeneration unit, electricity made available for use, including any such electricity used inthe power production process (which process includes, but is not limited to, any onsite processing or treatment offuel combusted at the unit and any on-site emission controls).

Heatinputmeans, with regard to a specified period oftime, the product (in mmBtu/time) ofthe gross calorific value ofthe fuel (inBtu/lb) divided by 1,000,000 Btu/mmBtu and multiplied by the fuel feed rate into a combustion device (inlb offuel/time), as measured, recorded, and reported to the Administrator by the CAIR designated representative and determined by the Administrator in accordance with subpart HHHH ofthis part and excluding the heat derived from preheated combustion air, recirculated flue gases, or exhaust from other

sources.

Heatinputratemeans the amount of heat input (inmmBtu) divided by unit operating time (inhr) or, with regard to

a specific fuel, the amount ofheat input attributed to the fuel (inmmBtu) divided by the unit operating time (in hr) during which the unit combusts the fuel. "

Life-of-the-unit, firmpower contractual arrangement means a unit participation power sales agreement under which autility orindustrial
customer reserves, oris 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 ofthe unit; (2) For a cumulative term ofno 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 ofthe economic useful life ofthe unit determined as ofthe time the unit is built, with option rights to purchase or release some portion ofthe nameplate capacity and associated
energy generated by the unit at the end. ofthe period.

Maximum designheatinputmeans, starting from the initial installation of a unit, the maximum amount offuel per hour (inBtu/hr) that a unit is capable of combusting on a steady state basis as specified by the manufacturer ofthe unit, or, starting from the completion of
any subsequent physical change in the unit resulting in a decrease in the maximum amount offuel per hour (in Btu/hr) that aunit is capable of combusting on a steady statebasis, such decreased maximum amount as specified by the person conducting the physical change.

Monitoringsystem means any monitoring system that meets the requirements of subpart HHHH ofthis part, including a continuous emissions monitoring system, an alternative' monitoring system, or an excepted monitoring system under part 75 ofthis chapter.

MoststringentStateorFederal NOx emissionslimitationmeans, withregard to aunit, the lowest NOx emissions limitation (in terms oflb/mmBtu) that is applicable to the unit under State or Federal law,.regardless ofthe averaging period to which the emissions limitation applies.

Nameplatecapacitymeans, starting from the initial installation ofa 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 notrestricted by seasonal or other deratings) as specified by the manufacturer ofthe generator or, starting from the completion ofany subsequent physical change in the generator resulting in an increase inthe maximum electrical generating output (inMWe) 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 specified by the person conducting the physical change.

Oil-firedmeans,for purposes of subpart EEEE ofthis part, combusting fuel oil for more than 15.0 percent ofthe annual heat input in a specified year.

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 notbe limited to, any holding
company, utility system, orplant
manager ofsuch a unit or source.

Ownermeans any ofthe 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 ofany portion ofthe 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 aleasehold interest in a CAIR NOX Ozone Season unit at the

source orthe CAIR NOx Ozone Season unit; or

(iii)Any purchaser ofpower from a CAIR NOx Ozone Season unit at the

source orthe 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 who has an equitable interest through such lessor, whose rental payments are not based (either directly orindirectly)

on the revenues or income from such CAIR NOx Ozone Season unit; or

,(2) With regard to any general account, anyperson 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.

Permittingauthority means the State air pollution control agency, local agency, other State agency, or other
agency authorized by the Administrator
to issue orrevise permits to meet the requirements ofthe CAIR NOx Ozone 

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Season Trading Program in accordance with subpart CCCC ofthis part or, ifno such agency has been so authorized, the Administrator.

Potential electricaloutputcapacity

means 33 percent ofaunit'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 orreceiptof means, when referring to the permitting authority or the Administrator, to come into possession of a document, information,

or correspondence (whether sentin hard
cop -orby authorized electronic transmission), as indicated in an official correspondence log, or by a notation made on the document, information, or correspondence, by the permitting authority or the Administrator inthe regular course ofbusiness.

Recordation,record,or recorded
means, withregard 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.

Referencemethodmeans any direct
test method ofsampling and analyzing for an air pollutant as specified in §75.22 ofthis chapter.

Repoweredmeans, with regard to a unit, replacement ofa coal-fired boiler with one ofthe following coal-fired technologies atthe 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 ofEnergy, a derivative ofone

or more ofthe technologies under paragraphs (1) through (5) ofthis definition and any other coal-fired technology capable ofcontrolling 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 ofJanuary 1,2005. Serialnumbermeans, fora CAIR NOx Ozone Season allowance, the unique identification number assigned to each CAIRNOx Ozone Season allowance by the Administrator.

Sequentialuseofenergymeans: (1) For a topping-cycle cogeneration unit, the use ofreject heat from electricity production in a useful thermal energy application or process;

or (2) For a bottoming-cycle cogeneration unit, the use ofreject heat from useful thermal energy application orprocess in electricity production.

Sourcemeans allbuildings, structures, or installations located in

one or more contiguous or adjacent properties under common control ofthe

same person or persons. For purposes of section 502(c) ofthe Clean AirAct, a "source," including a "source" with multiple units, shall be considered a single "facility."

Statemeans one ofthe States or the District ofColumbia that adopts the CAIR NOx Ozone Season Trading Program pursuant to § 51.123(aa)(1) or (2), (bb), or (dd) ofthis chapter.

Submitorservemeans 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 ofdispatch'or transmission and delivery. Compliance with any "submission" or "service" deadline shall be determined by the date ofdispatch, transmission, or mailing and not the date ofreceipt. Title V operating permitmeans a permit issued under title V ofthe Clean Air Act and part 70 or part 71 ofthis chapter.

Title V operating permitregulations

means the regulations that the Administrator has approved orissued as meeting the requirements oftitle Vof the Clean Air Act and part 70 or 71 of this chapter.

Ton means 2,000 pounds. For the
purpose ofdetermining compliance with the CAIR NOx Ozone Season emissions limitation, total tons of nitrogen oxides emissions for a control period shallbe calculated as the sum of allrecorded hourly emissions (orthe

mass equivalent ofthe recorded hourly emission rates) in accordance with. subpart HHHH ofthis part, but with any remaining fraction ofa ton equal to or greater than 0.50 tons deemed to equal

one ton and anyremaining fraction ofa ton less than 0.50 tons deemed to-equal

zero tons. Topping-cyclecogenerationunit

means acogeneration unit inwhich the
energy input to the unit is firstused to produce useful power, including electricity, and at least some ofthe reject heat from the electricity production is then used to provide useful thermal energy. Totalenergyinputmeans, with regard
to a cogeneration unit, total energy ofall forms supplied to the cogeneration unit, excluding energy produced by the cogenerhtion unit itself. Totalenergyoutputmeans, with regard to a cogeneration unit, the sum ofuseful power and useful thermal
energy produced by the cogeneration unit. Unitmeans a stationary, fossil-fuelfired boiler or combustion turbine or other stationary, fossil-fuel-fired combustion device. Unitoperating daymeans a calendar day in which aunit combusts any fuel. Unitoperating houror hourofunit operationmeans an hour in which a unit combusts any fuel. Usefulpowermeans, 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 ortreatment of fuel combusted at the unit and any onsite emission controls). Usefulthermalenergymeans, with regard to a cogeneration unit, thermal
energy that is:

(1) Made available to an industrial or commercial process (notapower production process), excluding anyheat contained in condensate return or makeup water;

(2) Used in aheat application (e.g.,
space heating or domestic hotwater heating); or

(3)Used in a space cooling application (i.e., thermal energy used by

an absorption chiller). Utilitypowerdistribution system

means the portion ofan electricity grid owned or operated by a utility and dedicated to delivering electricity to customers.
§96.303 Measurements, abbreviations, and acronyms.

Measurements, abbreviations, and
acronyms used inthis part are defined

as follows: Btu-:-British thermal unit. CO2-carbon dioxide. 1NOx-nitrogen oxides. hr-hour. kW-kilowatt electrical. kWh-kilowatt hour. mmBtu-million Btu. MWe-megawatt electrical. MWh-megawatt hour. 02--oxygen. ppm-parts per million. lb-pound. scfh-standard cubic feet per hour. SO 2-sulfur dioxide. H20-water. yr-year. §96.304 Apllicability.

The following units in a State shall be CAIR NOx Ozone Season units, and any 

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source that includes one or more such units shall be a CAIR NOx Ozone Season source, subject to the requirements ofthis subpart and subparts BBBB through HHHH ofthis part:

(a)Except as provided in paragraph (b) ofthis section, a stationary, fossilfuel-fired boiler or stationary, fossilfuel-fired combustion turbine serving at any time, since the start-up ofa unit's combustion chamber, agenerator with nameplate capacity ofmore than 25 MWe producing electricity for sale.

(b) For aunit that qualifies as a cogeneration unit during the 12-month period starting on the date the unit first produces electricity and continues to qualify as a cogeneration unit, a cogeneration unit serving at any time a generator with nameplate capacity of

more than 25 MWe and supplying in any calendar year more than one-third ofthe unit's potential electric output capacity or 219,000 MWh, whichever is greater, to any utility power distribution system for sale. If aunit qualifies as a cogeneration unit during the 12-month period starting on the date the unit first produces electricity but subsequently no longer qualifies as a cogeneration unit, the unit shall be subject to paragraph (a) of this section starting on the day on which the unit first no longer qualifies

as a cogeneration unit.
§96.305 Retired unit exemption.

(a)(1) Any CAIR NOx Ozone Season unit that is permanently retired and is
not a CAIR NOx Ozone Seas'on opt-in unit shallbe exempt from the CAIR NOx Ozone Season Trading Program, except forthe provisions ofthis section, § 96.302, § 96.303, § 96.304, § 96.306(c)(4) through (8), § 96.307, and subparts EEEE through GGGG ofthis part.

(2) The exemption under paragraph (a)(1) ofthis section shallbecome effective the day on which the CAIR NOx Ozone Season unit is permanently retired. Within 30 days ofthe 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 ofthe 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 ofparagraph (b) ofthis section. A3 fter receipt ofthe statement under paragraph (a)(2) ofthis section, the permitting authority will amend any permit under subpart CCCC ofthis part covering the source atwhich the unit is located to add the provisions and requirements ofthe exemption under paragraphs (a)(1) and (b) ofthis section.

(b) Specialprovisions.(1) A unit exempt under paragraph (a) ofthis section shall-not emit any nitrogen oxides, starting on the date that the exemption takes effect.

(2) The permitting authority will allocate CAIR NOx.Ozone Season allowances under subpart EEEE of this part to a unit exempt under paragraph (a) ofthis section.

(3)For a period of5 years from the date the records are created, the owners and operators ofa unit exempt under paragraph (a) ofthis section shallretain
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 ofthe period, in writingby the permitting authority orthe Administrator. The

owners and op6rators bear the burden of proofthat the unit is permanently retired.

(4) The owners and operators and, to the extent applicable, the CAIR designated representative ofa unit exempt under paragraph (a) ofthis section shall comply with the requirements ofthe 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, orbut f6r this exemption would berequired, to have a title V operating permit shall not resume operation unless the CAIR designated representative ofthe source submits a complete CAIR permit application under § 96.322 for the unit notless than 18 months (or such lesser time provided by the permitting authority) before the later ofJanuary 1, 2009 orthe date on which the unit resumes operation.

(6) On the earlier ofthe following dates, a unit exempt under paragraph (a)

- ofthis 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) ofthis section;

(ii) The date on which the CAIR designated representative is required under paragraph (b)(5) ofthis section to submit a CAIR permit application for the unit; or

(iii)The date on which the unit

resumes operation, ifthe CAIR designated representative is not required to submit aCAIR permit application forthe'unit. (7)For the purpose ofapplying monitoring, reporting, and recordkeeping requirements ufider subpart HHHH ofthis part, a unit that loses its exemption under paragraph (a) of this section shallbe treated as aunit that commences operation and commercial operation on the first date

on which the unit resumes operation.
§96.306 Standard requirements.

(a)Permitrequirements.(1) The CAIR designated representative ofeach CAIR NOx Ozone Season source required to have atitle V operating permit and each CAIR NOx Ozone Season unit required
to have atitle V operating permit atthe

source shall:

(i) Submit to the permitting authority

a complete CAIR permit application under § 96.322 in accordance with the deadlines specified in § 96.321(a) and (b); 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 ofeach 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 ofthis part for the source and operate the source and the unit in compliance with such CAIR permit.

(3) Except as provided in subpart IIII ofthis part, the owners and operators of

a CAIR NOx Ozone Season source that is not otherwise required to have atitle 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 recordkeepingrequirements.(1) The.

owners and operators, and the CAIR designated representative, ofeach CAIR NOx Ozone Season source and each CAIR NOx Ozone Season unit atthe

source shall comply with the monitoring, reporting, and recordkeeping requirements of subpart HHHH ofthis part.

(2) The emissions measurements recorded and reported in accordance with subpart HHHH ofthis part shallbe used to determine compliance by each CAIR NOx Ozone Season source with the CAIR NOx Ozone Season emissions 

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limitation under paragraph (c) ofthis section.

(c)Nitrogenoxides ozone season emissionrequirements.(1) As ofthe 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 Seasbn allowances available for compliance deductions for the control period under § 96.354(a) in an amount
not less than the tons oftotal nitrogen oxides emissions for the control period from all CAIR NOx Ozone Season units
at the source, as determined in accordance with subpart HHHH ofthis part.

(2) A CAIR NOx Ozone Season unit shall be subject to the requirements under paragraph (c)(1) ofthis section starting on the later ofMay 1, 2009 or the deadline for meeting the unit's monitor certification requirements under § 96.370(b)(1), (2), (3), or (7). (3) A CAIR NOx Ozone Season allowance shall notbe deducted, for compliance with the requirements under paragraph (c)(1) of this section, for a control period in a calendar year before the year forwhich the CAIR NOx Ozone Season allowance was allocated.

(4) CAIR NOx Ozone Season allowances shall be held in, deducted from, ortransferred into or among CAIR NOx Ozone Season Allowance Tracking System accounts in accordance with subpart EEEE ofthis part.

(5) A CAR NOx Ozone Season allowance is alimited authorization to emit oneton ofnitrogen oxides in accordance with the CAIR NOx Ozone Season Trading Program. No provision ofthe CAIR NOx Ozone Season Trading Program, the CAIR permit application, the CAIR permit, or an exemption under § 96.305 and no provision oflaw shall be construed to limit the authority ofthe State or theUnited 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 FFFF, GGGG, or 1111 ofthis part, every allocation, transfer, or deduction ofa CA1R NOx Ozone Season allowance to

orfrom a CAIR NOx Ozone Season unit's compliance account is incorporated automatically in any CAIR permit ofthe source that includes the CAIR NOx Ozone Season unit.

(d) Excess emissionsrequirements.(1) Ifa CAIR NOx Ozone Season source emits nitrogen oxides during any control period inexcess ofthe CAIR NOx Ozone Season emissions limitation, then:

(i) The owners and operators ofthe

source and each CAIR NOx Ozone Season unit atthe source shall surrender the CAIR NOx Ozone Season allowances required for deduction under § 96.354(d)(1) and pay any fine, penalty, or assessment or comply with
.anyother remedy imposed, forthe same violations, under the Clean AirAct or applicable State law; and

(ii) Each ton ofsuch excess emissions and each day ofsuch control period shall constitute a separate violation of this subpart, the Clean Air Act, and applicable State law.

(2) [Reserved] (e)Recordkeepingandreporting requirements.(1) Unless otherwise provided, the owners and operators of the CAIRNOx Ozone Season source and each CAIR NOx Ozone Season unit at the source shall keep on site at the

source each ofthe 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 of5 years, in writing by the permitting authority or the Administrator. (i) The certificate ofrepresentation under § 96.313 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 ofthe statements in the certificate ofrepresentation; 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 ofthe submission ofa new certificate ofrepresentation under § 96.313 changing the CAIR designated representative.

(ii) All emissions.monitoring information, in accordance with subpart HHHH ofthis part, provided that to the
extent that subpflrt HHHH ofthis part provides for a 3-year period for recordkeeping, the 3-year period shall apply.

(iii) Copies ofall reports, compliance certifications, and other submissions and all records made or required under the CAIR NOx Ozone Season Trading Program. (iv)Copies ofall 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 ofthe CAIR NOx Ozone Season Trading Program.

(2)The CAIR designated representative ofa CAIR NOx Ozone Season source and each CAIR NOx Ozone Season unit atthe source shall submit the reports required under the CAIR NOx Ozone Season Trading Program, including those under subpart HHHH ofthis part.

(f)Liability.(1) Each CAIR NOx Ozone Season source and each CAIR NOx Ozone Season unit shallmeet the requirements ofthe CAIR NOx Ozone Season Trading Program.

(2)Any provision ofthe CAIR NOx Ozone Season Trading Program that applies to a CAIR NOx Ozone Season

source orthe CAIR designated representative of a CAIR NOx Ozone Season source shall also apply to the

owners and operators ofsuch source and ofthe CAIR NOx Ozone Season units atthe source.

(3) Any provision ofthe CAIR NOx Ozone Season Trading Program that applies to a CAIR NOx Ozone Season unit or the CAIR designated representative ofa CAIR NOx Ozone Season unit shall also apply to the

owners and operators of such unit.

(g)Effect on otherauthorities. No provision ofthe CAIR NOx Ozone Season Trading Program, a CAIR permit. application, a CAIR permit, or an exemption under § 96.305 shall be construed as exempting or excluding the

owners and operators, and the CAIR designated representative, ofa CAIR NOx Ozone Season source or CAIR NOx Ozone Season unit from compliance with any other provision ofthe applicable, approved State implementation plan, a federally enforceable permit, or the Clean AirAct.

§96.307 Computation oftime.

(a)Unless otherwise stated, any time period scheduled, under the CAIR NOx Ozone Season Trading Program, to begin

on the occurrence ofan act orevent 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 ofan act or event shall be computed sothat the period ends the daybefore the act orevent

occurs.

(c) Unless otherwise stated, ifthe final day ofany 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 nextbusiness day.
§96.308 Appeal procedures.

The appeal procedures for decisions ofthe Administrdtor under the CAIR NOx Ozone Season Trading Program are set forth in part 78 ofthis chapter. 

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Subpart BBBB-CAIR Designated Representative for CAIR NOx Ozone Season Sources
§96.310 Authorization and responsibilities ofCAIR designated representative.

-

(a) Except as provided under § 96.311, each CAIR NOx Ozone Season source, including all CAIR NOx Ozone Season units atthe 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 ofthe CAIR NOx Ozone Season source shall be selected by an agreement binding on the owners and operators ofthe source and all CAIR NOx Ozone Season units at the source and shall act in accordance with the certification statement in §96.313(a)(4)(iv).

(c) Upon receipt by the Administrator ofa complete certificate of representation under § 96.313, the CAIR designated representative ofthe source shall represent and, by'his orher representations, actions, inactions, or submissions, legally bind each owner and operator ofthe 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 shallbebound 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 fora CAIR NOx Ozone Season unit at a source, until the Administrator has received a complete certificate ofrepresentation under §96.313 for aCAIR designated representative ofthe source and the CAIR NOx Ozone Season units at the

source.

(e)(1) Each submission under the CAIR NOx Ozone Season Trading Program shallbe submitted, signed, and certified by the CAIR designated representative for eachCAIR NOx Ozone Season source onbehalf ofwhich the submission is made. Each such

- submission shallinclude the following certification statement by the CAIR designated representative: "I am authorized to make this submission on behalfofthe owners and operators of the source orunits for which the submission is made. Icertify under penalty of lawthat Ihave 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, Icertify that the statements and information are to the best ofmy knowledge and belieftrue, 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 piossibility offine or imprisonment."

(2) The permitting authority and the Administrator will accept or act on a submission made onbehalf ofowner or operators ofa 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) ofthis section.
§96.311 Alternate CAIR designated representative.
(a) A certificate ofrepresentation under § 96.313 may designate one and only one alternate CAIR designated representative, whomay act on behalfof the CAIR designated representative. Thp agreement by whichthe alternate CAIR designated representative is selected shall include a procedure for authorizing the alternate CAIR designated representative to act in lieu ofthe CAIR designated representative.

(b)Upon receipt by the Administrator ofa complete certificate of representationunder § 96.313, any representation, action, inaction, or submissionby the alternate CAIR designated representative shallbe deemed to be.a representation, action, inaction, or submission by the CAIR designated representative.

(c) Except in this section and §§ 96.302, 96.310(a) and (d), 96.312; 96.313, 96.351, and 96.382 whenever the term "CAIR designated representative" is used in subparts AAAA through IIII ofthis part, the term shall be construed to include the CAIR designated iepresentative or any alternate CAIR designated representative.

§96.312 Changing CAIR designated representative and alternate CAIR designated representative; changes In
owners and operators.

(a) ChangingCAIR designated representative. The CAIR designated representative may be changed at any time upon receipt by the Administrator ofa superseding complete certificate of representation under § 96.313. 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 bebinding on the

new CAIR designated representative and the owners and operators ofthe CAIR NOx Ozone Season source and the CAIR NOx Ozone Season units at the source.

(b) ChangingalternateCAIR designatedrepresentative. The alternate CAIR designated representative may be changed at any time upon receipt by the Administrator ofa superseding complete certificate ofrepresentation tinder §96.313. 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 ofrepresentation shallbe binding on the new alternate CAIR designated representative and the

owners and operators ofthe CAIR NOx Ozone Season source and the CAIR NOx Ozone Season units atthe source.

(c) Changesin ownersandoperators. (1) Inthe event a new owner or operator ofa CAIR NOx Ozone Season source or

.aCAIR NOx Ozone Season unit is not includbd in the list of owners and operators in the certificate of representation under §96.313, such new

owner or operator shall be deemed to be' subject to and bound by the certificate ofrepresentation, the representations, actions, inactions, and submissions of the CAIR designated representative and any alternate CAIR designated representative ofthe source or unit, and the decisions and orders ofthe permitting authority, the Administrator,

or a court, as if the new owner or operator were included in such list. (2) Within 30 days following any change inthe owners and operators of

a CAIR NOx Ozone Season source or a CAIR NOx Ozone Season unit, including the addition ofanew owner

or operator, the CAIR designated representative or any alternate CAIR designated representative shall submit a revision to the certificate of representation under §96.313 amending the list ofowners and operators to include the change.
§96.313 Certificate ofrepresentation.

(a)A complete certificate of representation for a CAIR designated representative or an alternate CAIR designated representative shallinclude 

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the following elements in a format prescribed by the Administrator:

(1) Identification ofthe CAIR NOx Ozone Season source, and each CAIR NOx Ozone Season unit at the source, for which the certificate of representation is submitted.

(2) The name, address, e-mail address (ifany), telephone number, and facsimile transmission number (ifany) of the CAIR designated representative and any alternate CAIR designated representative.

(3) A list ofthe owners and operators ofthe CAIR NOx Ozone Season source and bfeach 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 Iwas selected as the CAIR designated representative or alternate CAIR designated representative, as applicable, by an agreement binding on the owners and operators ofthe source and each CAIR NOx Ozone Season unit atthe 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 ofthe owners and operators ofthe source and of each CAIRNOx Ozone Season unit atthe

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 ofthe source and ofeach CAIR NOx Ozone Season unit at the

source shallbe bound by any order issued to me by the Administrator, the permitting authority, or acourt regarding the source or unit."

(iv) "Where there are multiple holders ofa legal or equitable title to, or a leasehold interest in, aCAIR NOx Ozone Season unit,or where a customer purchases power from a CAIR NOx Ozone Season unit under a life-of-theunit, firm power contractual arrangement, I certify that: Ihave given

awritten notice ofmy selection as the 'CAIR designated representative' or 'alternate CAIR designated representative', as applicable, and ofthe agreement by which Iwas selected to each owner and operator ofthe source and ofeach CAIR NOx Ozone Season unit at the source; and CAIRNOx Ozone Season allowances and proceeds of transactions involving CAIR NOx Ozone Season allowances willbe deemed to be held or distributed in proportion to each holder's legal, equitable, leasehold, or contractual reservation or entitlement, except that, ifsuch multiple holders have expressly provided for a different distribution ofCAIR NOx Ozone Season allowances by contract, CAIR NOx Ozone Season allowances and proceeds oftransactions involving CAIR NOx Ozone Season allowances will be deemed to be held or distributed in accordance with the contract."

(5) The signature ofthe CAIR designated representative and any alternate CAIR designated representative and the dates signed.

(b)Unless otherwise required by the permitting authority orthe Administrator, documents ofagreement referred to inthe 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 ofsuch documents, ifsubmitted.
§96.314 Objectionsconcerning CAIR designated representative. (a) Once acomplete certificate of representation under § 96.313 has been submitted and received, the permitting authority and the Administrator will rely on the certificate ofrepresentation unless and until a superseding complete certificate ofrepresentation under 

### §96.313 is received by the Administrator. (b)Except s provided in § 96.312(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, ofthe CAIR designated representative shall affect any representation, action, inaction, or submission ofthe CAIR designated representative or the finality ofany 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 Adminigtrator will adjudicate
any private legal dispute concerning the authorization or any representation, action, inaction, or submission ofany CAIR designated representative, including private legal disputes concerning the proceeds ofCAIR NOx Ozone Season allowance transfers.
Subpart CCCC-Permits 

### §96.320 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 orrequired, under subpart IIII ofthis part,to have atitle V operating permit or other federally enforceable permit, such permit shall include a CAIR perfnit administered by the permitting authority for the title V operating permit orthe federally enforceable permit as applicable. The CAIR portion ofthe title Vpermit 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 ofthis chapter or the permitting authority's regulations for other federally enforceable permits as applicable, except as provided otherwise by this subpart and subpart IIII ofthis 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 S02 Trading Program

. requirements and shall be acomplete and separable portion of thetitle V operating permit or other federally enforceable permit under paragraph (a) ofthis section.
§96.321 Submission ofCAIR permit applications.

(a) Dutyto apply.The CAIR designated representative ofany 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 § 96.322 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 ofJanuary 1, 2009 orthe date on which the CAIR NOx Ozone Season unit commences operation.

(b)DutytoReapply.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 § 96.322 forthe 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.
§96.322 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 aformat prescribed by the permitting authority:

(a) Identification ofthe CAIR NOx Ozone Season source; 

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(b) Identification ofeach CAIR NOx Ozone Season unit at the CAIR NOx Ozone Season source; and

(c) The standard requirements under 596.306..
§96.323 CAIR permit contents and term.

.(a) Each CAIR permit will contain, in

a format prescribed by thepermitting authority, all elements required for a complete CAIR permit application under §.96.322.

(b)Each CAIR permit is deemed to incorporate automatically the definitions ofterms under § 96.302 and,
upon recordation by the Administrator under subpart FFFF, GGGG, or 1111 of this part, every allocation, transfer, or deduction ofa CAIR NOx Ozone Season allowance to or from the compliance
account ofthe CAIR NOx Ozone Season

source covered by the permit.

(c) The term ofthe CAIR permit will be set by the permitting authority, as necessary to facilitate coordination of the renewal ofthe CAIR permit with issuance, revision, or renewal ofthe CAIR NOx Ozone Season source's title V operating permit or other federally .,enforceable permit as applicable.

§96.324 CAIR permit revisions.

Except as provided in § 96.323(b), the permitting authority will revise the CAIR permit, as necessary, in accordance with the permitting authority's title Voperating permits regulations or the permitting authority's regulations forother federally enforceable permits as applicable addressing permit revisions.
Subpart DDDD-[Reserved]

Subpart EEEE-CAIR NOx Ozone Season Allowance Allocations

§96.340 State trading budgets.

(a) Except as provided inparagraph (b)of this section, the State trading budgets for annual allocations ofCAIR NOx Ozone Season allowances for the control periods in 2009 through 2014 -and in 2015 and thereafter are respectively as follows:

State State trading budget State trading budget Stt for 2015 and there- for 2009-2014 (tons) after (tons)

Alabama

........................................................................................................................................... 32,182 26,818 Arkansas

...................................................................... : .......... ................................................. 11,515 9,596 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 lowa

...................................... ....... ............................................... 14,263 11,886 Kentucky

............. ......... ................................................ .36,045 30,587 Louisiana

........................................................................................................................................... 17,085 14,238 Maryland

............................................................................................................... ....................... 12,834 10,695 Massachusetts

................................................................................................... I

............................. 7,551 6,293 SMichigan

........................................................................................................................................... 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 W

est Virginia

..................................................................................................................................... 26,859 26,525 W

isconsin

......................................................................................................................................... 17,987 14,989

(b)If a permitting authority issues additional CAIR NOx Ozone Season. allowance allocations under §51.123(aa)(2)(iii)(A) ofthis chapter, the
amount in the State trading budget for

a control period in a calendar year will be the sum ofthe amount set forth for the State and for the year in paragraph (a) ofthis section and the amount of additional CAIR NOx Ozone Season allowance allocations issuedunder § 51.123(aa)(2)(iii)(A) ofthis chapter for the year.
§96.341 Timing requirements for CAIR NOx Ozone Season allowance allocations.

(a)By October 31, 2006, the permitting authority will submit to the Administrator the CAIR NOx Ozone Season allowance allocations, in a format prescribed by the Administrator and in accordance with § 96.342(a) and (b), for the control periods in 2009, 2010, 2011, 2012, 2013, and 2014.

(b)(1)By October 31, 2009 and October 31 ofeach year thereafter, the permitting authority will submit to the Administrator the CAIR NOx Ozone Season allowance allocations, in a format prescribed by the Administrator and in accordance with § 96.342(a) and (b), for the control period inthe sixth
year after theyear ofthe applicable deadline* for submission under this paragraph. (2) Ifthe permitting authority fails to .submit to the Administrator the CAIR NOx Ozone Season allowance allocations in accordance with paragraph (b)(1), the Administrator will assume that the allocations ofCAIR NOx Ozone Season allowances for the applicable control period are the same

as for the control period that immediately precedes the applicable control period, except that, ifthe applicable control period is in 2015, the Administrator will assume that the

- allocations equal 83 percent ofthe allocations forthe control period that immediately precedes the applicable control period. (c)(1) ByJuly 31, 2009 and July 31 of each year thereafter, the permitting authority will submit to the Administrator the CAIR NOx Ozone Season allowance allocations, in a format prescribed by the Administrator and in accordance with §96.342(c), (a), and (d); for the control period in the 

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year of the applicable deadline for submission under this paragraph.

(2) Ifthe permitting authority fails to submit to the Administrator the CAIR NOx Ozone Season allowance allocations in accordance with paragraph (c)(1) ofthis section, the Administrator will assume that the allocations ofCAIR NOx Ozone Season allowances for the applicable control period are the same as for the control period that immediately precedes the applicable control period, except that, if the applicable control period is in 2015, the Administrator will assume thatthe allocations equal 83 percent ofthe allocations for the control period that immediately precedes the applicable control period and except that any CAIR NOx Ozone Season unit that would otherwise be allocated CAIR NOx Ozone Season allowances under § 96.342(a) and (b),as well as under § 96.342(a), (c), and (d), for the applicable control period will be assumed to be allocated

no CAIR NOx Ozone Season allowances under §96.342(a), (c), and (d) for the applicable control period. 

### §96.342 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) ofthis section for

- each CAIR NOx Ozone Season unit will be:

(i) For units commencing operation before January 1, 2001 the average ofthe 3 highest amounts ofthe unit's adjusted control period heat input for 2000 through 2004, withthe adjusted control period heat input for each year calculated as follows:

(A) Ifthe unit is coal-fired during the
year, the unit's control period heat input for such year is rhultiplied 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) ofthis

- 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 of5 or more consecutive calendar years, the average ofthe 3 highest amounts ofthe unit's total converted control period heat input over the first such 5 years. .

(2)(i) A unit's control period heat input, and aunit's status as. coal-fired or oil-fired, for a calendar year under paragraph (a)(1)(i) ofthis section, and a unit's total tons ofNOx emissions during a calendar year under paragraph (c)(3) ofthis section, will be determined in accordance with part 75 ofthis chapter, to the extent the unit was otherwise subject to'the requirements of part 75 ofthis chapter for the year, or will be based on the best available data reported to the permitting authority for. the unit,to the extent the unit was not otherwise subject to the requirements of part 75 ofthis chapter for the year.

(ii) A unit's converted control period heat input fora calendar year specified under paragraph (a)(1)(ii) ofthis section equals:

(A) Except as provided in paragraph (a)(2)(ii)(B) or (C) ofthis section, the control period gross electrical output of the generator or generators served by the unit multiplied by 7,900 Btu/kWh, ifthe 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 ifa generator is served by 2 or more units, then the gross electrical output ofthe generator will be attributed to each unit in proportion to the unit's share ofthe 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 fbrindustrial, commercial, heating, or cooling purposes through the sequential use ofenergy, the control period gross electrical output ofthe enclosed device comprising the
compressor, combustor, and turbine multiplied by 3,414 Btu/kWh, plus the total heat energy (inBtu) ofthe 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.

(b)(1)For each control period in 2009 and thereafter, the permitting authority will allocate to all CAIR NOx Ozone Season units in the State that have a baseline heat input (as determined under paragraph (a)ofthis section) a total amount ofCAIR NOx Ozone Season allowances equal to 95 percent fora control period during 2009 through 2014, and 97 percent for a control period during 2015 and thereafter, ofthe
tons of NOx emissions inthe State trading budgetunder §96.340 (except as provided inparagraph (d) ofthis section).

(2) The permitting authority will allocate CAIR NOx Ozone Season allowances to eachCAIR NOx Ozone Season unit under paragraph (b)(1) of this section in an amount determined by multiplying thetotal amount ofCAIR NOx Ozone Season allowances allocated under paragraph (b)(1) ofthis section by the ratio ofthe baseline heat input of such CAIR NOx Ozone Season unit to the total amount ofbaseline heat input ofall 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 permitting authority will allocate CAIR NOx Ozone Season allowances to CAIR NOx Ozone Season units in the State that commenced operation on or after January 1, 2001 and do notyet have a baseline heat input (as determined under paragraph (a) ofthis section), in accordance with the following procedures: (1)The permitting authority will establish a separate new unit set-aside for each control period. Eachnew unit set-aside will be allocated CAIR NOx Ozone Season allowances equal to 5 percent for a control period in 2009 through 2013, and 3 percent for a control period in 2014 and thereafter, of the amount oftons ofNOx emissions in the State trading budget under § 96.340.

(2) The CAIR designated representative of-such a CAIR NOx Ozone Season unit may submit to the permitting authority a request, in a format specified by the permitting authority, to be allocated CAIR NOx Ozone Season allowances, starting with the later ofthe control period in 2009

or the firstcontrol 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) ofthis section. The CAIR NOx Ozone Season allowance allocation request must be submitted on orbefore April 1before the first control period for which the CAIR NOx Ozone Season allowances are requested and after the date on which the CAIR NOx Ozone Season unif

commences commercial operation.

(3) In aCAIR NOx Ozone Season allowance allocation request under paragraph (c)(2) ofthis section, the CAIR desighated 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 ofNOx emissions during the control period immediately before such control period. 

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(4) The permitting authority will review each CAIR NOx Ozone Season allowance allocation request under paragraph (c)(2) ofthis section and will allocate CAIR NOx Ozone Season allowances for each control period pursuant to such request as follows:

(i)'The permitting authority will accept an allowance allocation request only ifthe request meets, or is adjusted by the permitting authority as necessary to meet, the requirements ofparagraphs (c)(2) and (3) ofthis section.

(ii) On or after April 1before the control period, the permitting authority will determine the sum ofthe CAIR NOx Ozone Season allowances requested (as adjusted under paragraph (c)(4)(i) ofthis section) in all allowance allocation requests accepted under paragraph (c)(4)(i) ofthis section for the controlperiod.

(iii)If the amount ofCAIR NOx Ozone Season allowances in the new unit setaside for the control periodis greater than or equal to the sum under paragraph (c)(4)(ii) ofthis section, then the permitting authority will allocate the amount ofCAIR NOx Ozone Season allowances requested (as adjusted under paragraph (c)(4)(i) ofthis section) to each CAIR NOx Ozone Season unit covered by an allowance allocation request accepted under paragraph (c)(4)(i) ofthis section.

(iv) Ifthe amount ofCAIR NOx Ozone Season allowances in the new unit setaside for the control period is less than the sum under paragraph (c)(4)(ii) of this section, then the permitting authority will allocate to each CAIR NOx Ozone Season unit covered by an allowance allocationrequest accepted under paragraph (c)(4)(i) ofthis section the amount ofthe 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) ofthis section, and rounded to the nearest whole allowance as appropriate. (v)The permitting authority will notify each CAIR designated representative that submitted an allowance allocation request ofthe
amount ofCAIR NOx Ozone Season allowances (ifany) 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 setaside for the control period, the permitting authority will allocate to each CAIR NOx Ozone Season unit that

was allocated CAIR NOx Ozone Season allowances under paragraph (b) ofthis section an amount ofCAIR NOx Ozone Season allowances equal to the total
amount ofsuch remaining unallocated CAIR NOx Ozone Season allowances, multiplied by the unit's allocation under paragraph (b) ofthis section, divided by 95 percent fora control period during 2009 through 2014, and 97 percent for a control period during 2015 and thereafter, ofthe amount of
tons of NOx emissions in the State. trading budget under § 96.340, and rounded to the nearest whole allowance

as appropriate. Subpart FFFF-CAIR NOx Ozone Season Allowance Tracking System
§96.350 [Reserved]
§96.351 Establishment ofaccounts.

(a) Complianceaccounts.Except as provided in § 96.384(e), upon receipt of

a complete certificate ofrepresentation under § 96.313, the Administrator will establish a compliance account for the CAIR NOx Ozone Season source for which the certificate ofrepresentation

was submitted, unless the source already has a compliance account.

(b) Generalaccounts-(1)Application forgeneralaccount. (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 ofthe 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 ofthe 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 aformat prescribed by the Administrator:

(A) Name, mailing address, e-mail address (ifany), telephone number, and facsimile transmission number (ifany). ofthe CAIR authorized account representative and any alternate CAIR authorized account representative;

(B) Organization name and type of organization, if applicable;

(C) A list ofall 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 thegeneral account. Icertify that Ihave all the necessary authority to carry out my duties and responsibilities under the CAIR NOx Ozone Season Trading Program on behalfof 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 ofthe CAIR authorized account representative and
any alternate CAIR authorized account representative and the dates signed.

(iii) Unless otherwise required by the permitting authority orthe Administrator, documents ofagreement 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, ifsubmitted.

(2) AuthorizationofCAIR authorized

accountrepresentative.

(i) Upon receipt by the Administrator ofa complete application for a general
account under paragraph (b)(1) ofthis 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 herrepresentations, 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
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bebound 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 arepresentation, 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 alternhte CAIR authorized account representative! "I am authorized to make this submission onbehalf ofthe
persons having an ownership interest with respect to the CAIR NOx Ozone Season allowances held in the general
account. I certify under penalty oflaw that I have personally examined, and am familiar with, the statements and information submitted inthis document and all.its attachments. Based on my inquiry ofthose individuals with primary responsibility for obtaining the information, I certify that the statements and information are to the best ofmy knowledge and belieftrue, accurate, and complete. Iam 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 ifthe submission has been made, signed, and certified in accordance with paragraph (b)(2)(ii) of this section. (3) ChangingCAIR authorized
accountrepresentativeandalternate CAIR authorizedaccount representative; changesinpersons with ownershipinterest.

(i) The CAIR authorized account representative for a general account may be changed at any time upon receipt by the Administrator ofa superseding complete application for ageneral
account under paragraph (b)(1) ofthis

- 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 bebinding 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 ageneral
account may be changed at any time
upon receipt by the Administrator ofa superseding complete application for a general account under paragraph (b)(1) ofthis 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 bebinding 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) Inthe event 

### a new person having an ownership interest with respect to CAIR NOx Ozone Season allowances inthe general account is not included in the list ofsuch persons in the application for ageneral account, such new person shall be deemed to be subject to and bound by the application for a general account, the representation, actions, inactions, and submissions ofthe CAIR authorized
account representative and any alternate CAIR authorized account representative ofthe account, and the decisions and orders ofthe Administrator or a court,

as ifthe new 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 ofpersons, 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) ObjectionsconcerningCAIR authorizedaccountrepresentative.

(i) Once a complete application for a general account under paragraph (b)(1) ofthis 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) ofthis 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 rdpresentation, action, inaction, or submission ofthe CAIR authorized
account representative or any alternative CAIR authorized account representative for a general account shall affect any representation, action, inaction, or submission ofthe CAIR authorized account representative or any alternative CAIR aithorized account representative orthe 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 ofthe CAIR authorized
account representative or any alternative CAIR authorized account representative fora general account, including private legal disputes concerning the proceeds ofCAIR NO x Ozone Season allowance transfers.

(c)Account identification. The Administrator will assign aunique identifying number to each account established under paragraph (a) or (b) of this section.
§96.352 ResponsibilitiesofCAIR authorized account representative.

Following the establishment ofa 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 ofCAIR NOx Ozone Season allowances inthe account, shall be made only by the CAIR authorized account representative for the account.
§96.353 Recordation ofCAIR NOx Ozone Season allowance allocations.

(a)By December 1,2006, the Administrator will record inthe CAIR NOx Ozone Season source's compliance
account the CAIR NOx Ozone Season allowances allocated for the CAIR NOx * Ozone Season units at a source, as submitted by the permitting authority in accordance with § 96.341(a), for the control periods in 2009, 2010, 2011, 2012, 2013, and 2014.

(b) By December 1, 2009, the Administrator will record in the CAIR NOX Ozone Season source's compliance
account the CAIR NOxOzone Season allowances allocated for the CAIR NOx Ozone Season units at the source, as submitted by the permitting authority or

as determined by the Administrator in 

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accordance with §96.341(b), forthe control period in 2015.

(c) In 2011 and eachyear thereafter, after the Administrator has made all deductions (ifany)from a CAIR NOx Ozone Season source's compliance
account under §96.354, 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, as submitted by the permitting authority or determined by the Administrator in accordance with §96.341(b), for the control period inthe sixth year after the
year ofthe control period for which such deductions were or could have been made. (d) By September 1, 2009 and September 1 ofeach year thereafter, the Administrator will record inthe 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, as submitted by the permitting authority or determined by the-Administrator in* accordance with § 96.341(c), for the control period in the year ofthe applicable deadline for recordation under this paragraph.

(e) Serialnumbers foiallocatedCAIR NOx Ozone Seasonallowances.When recording the allocation ofCAIR NOx Ozone Season allowances for a CAIR NOx Ozone Seasoh unit in a compliance account, the Administrator will assign each CAIR NOx Ozone Season allowance aunique identification number that will include digits identifying the year ofthe control period for which the CAIR NOx Ozone Season allowance is allocated. 

### §96.354 Compliance with CAIR NOx emissions limitation.

(a)Allowance transferdeadline.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 ifthe CAIR NOx Ozone Season allowances:

(1) Were allocated for the control period in the year or a prior-year;

(2) Are held inthe compliance
account as ofthe allowance transfer deadline for the control period oK are transferred into the compliance account by a CAIR NOx Ozone Season allowance transfer correctly submitted for recordation under § 96.360 by the allowance transfer deadline for the control period; and

(3) Are not necessary for deductions for excess emissions for a prior control period under paragraph (d) ofthis section.

(b)Deductions forcompliance. Following the recordation, in accordance with § 96.361, ofCAIR 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) ofthis 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 ofCAIR NOx Ozone Season allowances deducted equals the number oftons oftotal nitrogen oxides emissions, determined in accordance with subpart HHHH of this part, from all CAIR NOx Ozone Season units atthe source for the control period; or

(2) Ifthere 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) ofthis section remain in the compliance account.

(c)(1) IdentificationofCAIR NO x OzoneSeasonallowancesby.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, inthe compliance account be deducted for emissions orexcess emissions for a control period in accordance with paragraph (b)or (d) ofthis section. Such request shallbe submitted to the Administrator by the allowance transfer deadline for the control period and include, in a format prescribed by the Administrator, the identification ofthe 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 ofan identification orin the

case ofa partial identification 'ofCAIR NOx Ozone Season allowances by serial number under paragraph (c)(1) ofthis 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 unit and transferred and recorded in the compliance account pursuant to subpart GGGG of this part, in the order of recordation.

(d) Deductions forexcess emissions. (1) After making the deductions for compliance under paragraph (b) ofthis 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 ofCAIR NOx Ozone Season allowances, allocated forthe control period in the immediately following calendar year, equal to 3 times the number oftons of the source's excess emissions.

(2) Any allowance deduction required under paragraph (d)(1) ofthis section shall not affect the liability ofthe

owners and operators ofthe CAIR NOx Ozone Season source orthe 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) Recordationofdeductions.The Administrator will record in the appropriate compliance account all deductions from such an account under paragraph (b) or (d) ofthis section. (f)

Administrator'sactionon 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 ofthe information in the submissions.

(2) The Administrator may deduct CAIR NOx Ozone Season allowances from ortransfer CAIR NOx Ozone Season allowances to a source's compliance account based on the information in the submissions, as adjusted under paragraph (f)(1) ofthis section.
§96.355 Banking.

(a) CAIR NOx Ozone Season allowances may bebanked forfuture

use or transfer in a compliance account

or a general account in accordance with paragraph (b) ofthis 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 § 96.354, § 96.356, or subpart GG ofthis part.
§96.356 Account error.

The Administrator may, at his or her sole discretion and on his orher own .motion correct any error in any CAIR NOx Ozone Season Allowance Tracking System account. Within 10 business 

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days ofmaking such correction, the Administrator will notify the CAIR authorized account representative for the account.
§96.357 Closing of general accounts.

(a)The CAIR authorized account representative ofageneral account may submit to the Administrator a request to close the account, which shall include

acorrectly submitted allowance transfer under § 96.360 for any CAIR NOx Ozone Season allowances in the account to one
ormore other CAIR NOx Ozone Season Allowance Tracking System accounts.

(b) If ageneral account has no allowance transfers in or out ofthe
account for a 12-month period orlonger 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 ofthe 20-day period, the Administrator receives a correctly submitted transfer ofCAIR NOx Ozone Season allowances into the account under §96.360 or a statement submitted by the CAIR authorized account representative demonstrating to the satisfaction ofthe Administrator good

cause as to why the aceount should not be closed. 

### Subpart GGGG-CAIR NOx Ozone Season Allowance Transfers
§96.360 Submissionof CAIR NOx Ozone Season allowance transfers.

A CAIR authorized account representative seeking recordation ofa 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 ofthe transferor account and the date signed. 

### §96.361 EPA recordation.

(a) Within 5 business days (except as provided in paragraph (b) ofthis section) ofreceiving a CAIR NOx Ozone Season allowance transfer, the Administrator will record aCAIR 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 

### § 96.360; 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 notbe recorded until after the Administrator completes the deductions under §96.354 for the control period immediately before such allowance transfer deadline.

(c)Where a CAIRNOx Ozone Season allowance transfer submitted for recordation fails to meet the requirements of paragraph (a)ofthis section, the Administrator will not record such transfer. 

### §96.362 Notification.

(a) Notificationofrecordation. Within 5 business days ofrecordation ofa CAIR NOx Ozone Season allowance transfer under 

### §96.361, the Administrator will notify the CAIR authorized account representatives ofboth the transferor and transferee accounts.

(b)Notification of non-recordation. Within 10business days ofreceipt ofa CAIR NOx Ozone'Season allowance transfer that fails to meet the requirements of

### § 96.361(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 nonrecordation. (c) Nothing in this section shall preclude the submission ofa CAIR NOx Ozone Season allowance transfer for recordation following notification of non-recordation. Subpart HHHH-Monitoring and Reporting
§96.370 General requirements.

The owners and operators, and to the
extent applicable, the CAIR designated representative, of aCAIR NOx Ozone Season unit, shall comply with the monitoring, recordkeeping, and reporting requirements as provided in this subpart and in subpart H ofpart 75 ofthis chapter. For purposes of complying with such requirements, the definitions in

### § 96.302 and in § 72.2 of this chapter shall apply, and the terms "affected unit," "designated representative,".and "continuous emission monitoring system" (or "CEMS") in part 75 ofthis 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 

### §96.302. The owner or operator ofa unit that is not a CAIR NOx Ozone Season unitbut that is monitored under § 75.72(b)(2)(ii) ofthis chapter shall comply with the same monitoring, recordkeeping, and reporting requirements as a CAIR NOx Ozone Season unit.



### (a) Requirements forinstallation, certification, anddataaccounting. The

owner or operator ofeach 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, CO 2 or 02 concentration, and fuel flow rate, as applicable, in accordance with §§ 75.71 and 75.72 ofthis chapter);

(2) Successfully complete all certification tests required under §96.371 and meet all other requirements ofthis subpart and part 75 ofthis chapter applicable to the monitoking systems under paragraph (a)(1) ofthis section; and

(3) Record, report, and quality-assure the data from the monitoring systems under paragraph (a)(1) ofthis section.



### (b) Compliancedeadlines.The owner

or operator shall meet the monitoring system certification and other requirements ofparagraphs (a)(1) and (2) ofthis section on orbefore the following dates. The owner or operator shall record, report, and quality-assure the data from the monitoring systems under paragraph (,a)(1) ofthis section on and after the following dates.

(1) For the owner or operator ofa CAIR NOx Ozone Season unit that

commences commercial operation before July 1, 2007, by May 1,2008.

(2) For the owner or operator ofa CAIR NOx Ozone Season unit that

commences commercial operation on or after July 1,2007 and that reports on an annual basis under.§ 96.374(d), by the later ofthe 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, ifthe compliance date under paragraph (b)(2)(i)is before May 1,2008. 

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(3) For the owner or operator ofa CAIR NOx Ozone Season unit that

commences operation on or after July 1, 2007 and thatreports on a control period basis under § 96.374(d)(2)(ii), by the later ofthe 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) Ifthe compliance date under paragraph (b)(3)(i) ofthis 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 ofa CAIR NOx Ozone Season unit for Which construction ofanew stack orflue or installation ofadd-on NOx emission controls is completed after the applicable deadline under paragraph (b)(1), (2), (6), or (7) ofthis section and that reports on an annualbasis under § 96.374(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 ofa CAIR NOx Ozone Season unit for which construction ofanew stack or flue or installation ofadd-on NOx'emission controls is completed after the applicable deadline under paragraph (b)(1), (3), (6), or (7) ofthis section and that reports on a control period basis under § 96.374(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 orflue or add-on NOx emissions controls; or

(ii)Ifthe compliance date under paragraph (b)(5)(i) ofthis section is not -during a control period, May .1 immediately following the compliance date under paragraph (b)(5)(i) ofthis section.

(6) Notwithstanding the dates in paragraphs (b)(1), (2), and (3) ofthis section, for the owner or operator ofa unit for which a CAIR NOx Ozone Season opt-in permit application is submitted and notwithdrawn and a CAIR opt-in permit is notyet issued or denied under subpart IIII ofthis part,by the date specified in § 96.384(b).

(7)Notwithstanding the dates in paragraphs (b)(1), (2), and (3) ofthis section and solely for purposes of § 96.306(c)(2), for the owner or operator ofa CAIR NOx Ozone Season opt-in unit,by the date on which the CAIR NOx Ozone Season opt-in unit enters the CAIR NOX Ozone Season Trading Program as provided in § 96.384(g).

(c)Reportingdata.(1) Except as provided in paragraph (c)(2) ofthis section, the owner or operator of aCAIR NOx Ozone Season unit that does not meet the applicable compliance date set forth in paragraph (b)ofthis section for
any monitoring system under paragraph (a)(1) ofthis section'shall,_for each such monitoring system, determine, recoid, 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 accordance with §75.31(b)(2) or (c)(3) of this chapter, section 2.4 of appendix D
to part 75 ofthis chapter, or section 2.5 ofappendix Eto part 75 ofthis chapter,

as applicable.

(2) The owner or operator ofa CAIR NOx unit that does not meetthe applicable compliance date set forth in paragraph (b)(4) ofthis section for any monitoring system inder paragraph (a)(1) ofthis section shall, for-each such monitoring system', determine, record, and report substitute data using the applicable missing data procedures in § 75.74(c)(7) ofthis chapter or subpart D

or subpart H of, or appendix D or appendix E to,-part 75 ofthis chapter, in lieu ofthe maximum potential (or, as appropriate,.minimum potential) values, for aparameter ifthe owner oroperator demonstrates that there is continuity between the data streams for that parameter before and after the construction or installation under paragraph (b)(4) ofthis section.

(d) Prohibitions. (1) No owner or operator ofa CAIR NOx Ozone Season unit shall use any alternative monitoring system, alternative reference method, or any other alternative to any requirement ofthis subpart without having obtained prior written approval in accordance with §96.375.

(2) No owner or operator ofa 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 ofthis subpart and part 75 ofthis 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, except forperiods ofrecertification or periods when calibration, quality assurance testing, ormaintenance is performed in accordance with the applicable provisions ofthis 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 ofthe following circumstances: (i)

During the period that the unit is covered by an exemption under § 96.305 that is in effect;

(ii) The owner or opelator is monitoring emissions from the unit with another certified monitoring system approved, in accor*dance with the applicable provisions ofthis subpart and part 75 ofthis chapter, by the permitting authority foruse atthat 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 ofcertification testing ofa replacement monitoring system for the retired or discontinued monitoring system in accordance with § 96.371(d)(3)(i).

§96.371 Initialcertificationand recertification procedures.

(a)The owner or operator ofa CAIR NOx Ozone Season unit shall be exempt from the initial certification requirements ofthis section for a monitoring system under § 96.370(a)(1) ifthe following conditions are met: (1) The monitoring system has been previously certified in accordance with part 75 ofthis chapter; and

(2) The applicable quality-assurance and quality-control requirements of § 75.21 ofthis chapter and appendix B, appendix D, and appendix Eto part 75 ofthis chapter are fully met fof the certified monitoring system described in paragraph (a)(1) ofthis section..

(b)The recertification provisions of this section shall apply to a monitoring system under § 96.370(a)(1) exempt from initial certification requirements under paragraph (a) ofthis section.

(c) Ifthe Administrator has previously approved a petition under §75.17(a) or (b) ofthis chapter for apportioning the NOx emission rate measured in a

common stack or a petition under §75.66 ofthis chapter for an alternative
to a requirement in § 75.12, §75.17, or. subpart H ofpart 75 ofthis chapter, the CAIR designated representative shall resubmit the petition to the Administrator under § 96.375(a) to determine whether the approval applies 

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### 2

under the CAIR NOx Ozone Season Trading Program. (d)Except as provided in paragraph (a)of this section, the owner-or operator ofa 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 ofthis chapter) under §96.370(a)(1). The owner or operator of

aunit that qualifies to use the low mass emissions excepted monitoring methodology under § 75.19 ofthis chapter or that qualifies to use an alternative monitoring system under subpart E ofpart 75 ofthis chapter shall comply with the procedures in paragraph (e) or (f) ofthis section respectively.

(1)Requirements forinitial certification.The owner or operator shall ensure that each continuous monitoring system under § 96.370(a)(1)(including the automated data acquisition and handling system) successfully completes all ofthe initial certification testing required under § 75.20 ofthis chapter by the applicable deadline in §96.370(b). In addition, whenever the owner or operator installs

a monitoring system to meet the requirements ofthis subpart in a location where no such monitoring system was previously installed, initial certification in accordance with §75.20 ofthis chapter is required.

(2) Requirements forrecertification. Whenever the owner or operator makes

a replacement, modification, or change in any certified continuous emission monitoring system under §.96.370(a)(1) that may significantly affect the ability ofthe system to accurately measure or rec6rd NOx mass emissions or heat input rate orto meet the qualityassurance and quality-control requirements of§ 75.21 ofthis chapter

or appendix B to part 75 ofthis chapter, the owner or operator shall recertify the monitoring system in accordance with § 75.20(b) ofthis chapter. Furthermore, whenever the owner or operator makes

a replacement, modification, or change
to the flue gashandling system orthe unit's operation that may significantly change the stick 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 § 75.20(b) ofthis chapter. Examples ofchanges to a continuous emission monitoring system that require recertification include: Replacement ofthe analyzer, complete replacement ofan existing continuous emission monitoring system, or change in location or orientation ofthe sampling probe or site. Any fuel flowmeter systems, and any excepted NOx monitoring system under appendix Eto part 75 ofthis chapter, under' § 96.370(a)(1) are subject to the recertification requirements in 

### § 75.20(g)(6) ofthis chapter.

(3)Approvalprocess for initial certificationandrecertification. Paragraphs (d)(3)(i) through (iv) ofthis section apply to both initial certification and recertification ofa continuous monitoring system under §96.370(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 §§ 75.20(b)(5) and (g)(7) ofthis chapter in lieu ofthe procedures in paragraph (d)(3)(v) of this section. (i)

Notification ofcertification. The CAIR designated representative shall submit to the permitting authority, the appropriate EPA Regional Office, and the Administrator written notice ofthe dates ofcertification testing, in accordance with § 96.373.

(ii) Certification application. The CAIR designated representative shall submit to the permitting authority a certification application for each monitoring system. A complete .certification application shall include the information specified in §75.63 of this chapter. (iii)Provisionalcertificationdate.The provisional certification date for a monitoring system shall be determined in accordance with §*75.20(a)(3) ofthis chapter. A provisionally certified

. monitoring system may be used under the CAIR NOx Ozone Season Trading Program for aperiod not to exceed 120 days after receipt by the permitting authority ofthe coiplete certification application for the monitoring system under paragraph (d)(3)(ii) ofthis section. Data measured and recorded by the provisionally certified monitoring system, in accordance with the requirements ofpart 75 ofthis chapter, willbe considered valid quality-assured data (retroactive to the date and time of provisional certification), provided that the permitting authority does not invalidate the provisional certification by issuing a notice ofdisapproval within 120 days of the date ofreceipt of the complete certification application by the permitting authority..

(iv) Certificationapplication approval
process.The permitting authority will issue a written notice ofapproval or disapproval ofthe certification application to the owner or operator within 120 days ofreceipt ofthe complete certification application under paragraph (d)(3)(ii) ofthis section. In the
event the permitting authority does not issue such a notice within such 120-day period, each monitoring system that
meets the applicable performance requirements of part 75 ofthis chapter and is included in the certification application willbe deemed certified for

use under the CAIR NOx Ozone Season Trading Program.

(A)Approvalnotice.Ifthe certification application is complete and shows that each monitoring system
meets the applicable performance requirements of part 75 ofthis chapter, then the permitting authority will issue

a written notice ofapproval ofthe certification application within 120 days ofreceipt.

(B) Incompleteapplication notice.If the certification application is not complete, then the permitting authority 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 permitting authority may issue

a notice of disapproval under paragraph (d)(3)(iv)(C) ofthis section. The 120-day review period shall notbegin before receipt ofa complete certification application.

(C) Disapproval notice.Ifthe certification application shows that any monitoring system does notmeet the performance requirements ofpart 75 of this chapter orif the certification application is incomplete and the requirement for disapproval under paragraph (d)(3)(iv)(B) ofthis section is met,then the permitting authority will issue a written notice ofdisapproval of the certification application. Upon issuance ofsuch notice ofdisapproval, the provisional certification is invalidated by the permitting authority and the data measured and recorded by each uncertified monitoring system shall not be considered valid qualityassured data beginning with the date and hour ofprovisional certification (as defined under §75.20(a)(3) ofthis 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)Auditdecertification. The permitting authority or, for a CAIR NOx Ozone Season opt-in unit or aunit for which aCAIR opt-in permit application is submitted and not withdrawn and a 

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CAIR opt-in permit is notyet issued or denied under subpart 1111 ofthis part, the Administrator may issue a notice of disapproval ofthe certification status of

amonitor in accordance with §96.372(b).

(v)Procedures forloss ofcertification. Ifthe permitting authority or the Administrator issues a notice of disapproval ofa certification application under paragraph (d)(3)(iv)(C) ofthis section or a notice of disapproval ofcertification status under paragraph (d)(3)(iv)(D) ofthis section, then: (A)The owner or operator shall substitute the following values, for each disapproved monitoring system, for each hour ofunit operation during the period ofinvalid data specified under §75.20(a)(4)(iii), 

### §75.20(g)(7), or §.75.2-1(e) ofthis dhapter and continuing untilthe applicable date and hour specified under 

### § 75.20(a)(5)(i) or (g)(7) ofthis chapter:

(1)For a disapproved NOx emission
rate (i.e.,NOx-diluent) system,the maximum potential NOx emission rate,

as defined in §72.2 ofthis 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 ofappendix A to part 75 ofthis 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 CO 2concentration

orthe minimum potential 02 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 defiried in section 2.4.2.1 ofappendix D to part 75 ofthis chapter.

(5) For a disapproved excepted NOx monitoring system under appendix E to part 75 ofthis chapter, the fuel-specific maximum potential NOx emission rate,

as defined in §72.2 ofthis chapter.

(B) The CAIR designated representative shall submit a notification ofcertification retest dates and anew 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 permitting authority's or the Administrator's notice ofdisapproval,

no later than 30 unit operating days 

### after the date ofissuance ofthe notice of disapproval.

(e)Initialcertificationand recertification procedures forunits usingthe lowmass emissionexcepted methodology under§ 75.19 ofthis chapter. The owner or operator of aunit qualified to use the low mass emissions -(LME) excepted methodology under §75.19 ofthis chapter shall meet the applicable certification and recertification requirements in §§ 75.19(a)(2) and 75.20(h) ofthis chapter. If the owner or operator of such

a unit elects to certify a fuel flowmeter system forheat input determination, the

owner .oroperator shall also meet the certification and recertification requirements in 

### § 75.20(g) ofthis chapter.

(If) Certificationlrecertification procedures foralternative monitoring systems. The CAIR designated representative ofeach unit for which the

owner or operator intends to use an alternative monitoring system approved by the Administrator and, if applicable, the permitting authority under subpart E ofpart 75 ofthis chapter shall comply with the applicable notification and application procedures of§ 75.20(f) of .this chapter.
§96.372 Out ofcontrol 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, br appendix D or appendix E to, part 75 ofthis chapter.

(b)Audit decertification. Whenever both an audit ofa monitoring system and a review ofthe initial certification

orrecertification application reveal that
any monitoring system should not have been certified or recertified because it did notmeet aparticular performance specification or other requirement under §96.371 or the applicable provisions of part 75 ofthis chapter, both atthe time ofthe initial certification or recertification application submission and at the time ofthe audit, the permitting authority or,for a CAIR NOx Ozone Season opt-in unit or a unit for which a CAIR opt-in permit application is submitted and not withdrawn and a" CAIR opt-in permit is notyet issued or denied under subpart 1111 of this part, the Administrator will issue a notice of disapproval of the certification status of such monitoring system. For the
purposes ofthis paragraph, an audit shall be either afield audit or an audit ofany information submitted to the permitting authority orthe Administrator. By issuing the notice of disapproval, the permitting authority or the Administrator revokes prospectively the certification status of-the monitoring system. The data measured and recorded by the monitoring system shall
notbe considered valid quality-assured data from the date ofissuance of the notification ofthe 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 orrecertification procedures in § 96.371 for each disapproved monitoring system.
§96.373 Notifications.

The CAIR designated representative for a CAIR NOx Ozone Season unit shall submit written notice to the permitting authority and.the Administrator in accordance with 

### § 75.61 ofthis chapter, except that ifthe unit is not subject to

an Acid Rain emissions limitation, the notification is only required to be sent to the permitting authority.
§96.374 Recordkeeplng 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 §75.73 ofthis chapter, and the requirements of §96.310(e)(1).

•(b)Monitoring plans.The owner or operator ofa CAIR NOx Ozone Season unit shall comply with requirements of § 75.73(c) and (e) ofthis chapter.and, for

aunit forwhich 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 ofthis part, §§ 96.383 and 96.384(a). (c) Certificationapplications. The CAIR designated representative shall submit an application to the permitting authority within 45 days after completing all initial certification or recertification tests required under §96.3 71, including the information required under.§ 75.63 ofthis chapter. (d) Quarterly reports.The CAIR designated representative shall submit quarterly reports, as follows:

(1.) Ifthe CAIR NOx Ozone Season unit is subject to an Acid Rain emissions limitation or a CAIR NOx emissions limitation or ifthe owner or operator ofsuch unit chooses to report

on an annual basis under this subpart, the CAIR designated representative shall
meet the requirements ofsubpart H of part 75 ofthis chapter (concerning monitoring ofNOx mass emissions) for 

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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 prescribedby 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; or

(ii) For a unit that commences commercial operation on or after July 1, 2007, the calendar quartet corresponding to the earlier ofthe date ofprovisional certification orthe applicable deadline for initial certification under 

### §96.370(b), unless that quarter is the third or fourth quarter of2007, in which case reporting shall

commence inthe quarter covering May 1, 2008 through June'30, 2008.

(2) Ifthe CAIR NOx Ozone Season unit is not subject to an Acid Rain emissions limitation or aCAIR NOx emissions limitation, then the CAIR designated representative shall either:

(i) Meet the requirements ofsubpart H ofpart 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) ofthis section; or

(ii) Meet the requirements of subpart H ofpart 75 for the control period (including the requirements in 

### § 75.74(c) ofthis chapter) and report NOx mass emissions data and heat input data (including the data described in § 75.74(c)(6) ofthis chapter) for such unit only for the control period ofeach
year and report, in an electronic quarterly report in aformat 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 aunit that commences commercial operation on or after July 1, 2007, the calendar quarter corresponding to the earlier ofthe date ofprovisional certification orthe applicable deadline for initial certification under §96.370(b), unless that date is not during a control period, inwhich case reporting shall commence in the quarter that includes May 1 through June 30 ofthe first control period after such date.

(2) The CAIR designated representative shall submit each quarterly report to the Administrator within 30 days following the end ofthe calendar quarter covered by the report. Quarterly reports shallbe submitted in' the manner specified in §75.73(f) ofthis chapter. (3) For CAIR NOx Ozone Season units that are also subject to an Acid Rain emissions limitation or the CAIR NOx Annual Trading Program orCAIR SO 2 Trading Program, quarterly reports shall include the applicable data and information required by subparts F through H ofpart 75 ofthis chapter as applicable, in addition to the NOx mass emission data, heat input data, and other information required by this subpart. (e) Compliancecertification.The CAIR designated representative shall submit to the Administrator a compliance certification (ina format prescribed by the Administrator) in support of each quarterly report based

onreasonable inquiry ofthose persons with primary responsibility forensuring that all ofthe 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 ofthis subpart and part 75 ofthis chapter, including the quality assurance procedures and specifications;

(2) For autnit with add-on NOx emission controls and for all hours where NOx data are substituted in accordance with 

### §75.34(a)(1) ofthis chapter, the add-on emission controls

were operating within the range of parameters listed inthe quality assurance/quality control program under appendix B to part 75 ofthis chapter and the substitute data values do not systematically underestimate NOx.emissions; and

(3) For aunit that is reporting on a control period basis under paragraph (d)(2)(ii) ofthis section, the NOx emission rate and NOx concentration values substituted for missing data under subpart D ofpart 75 ofthis chapter are calculated using only values from a control period and do not systematically underestimate NOx. emissions.
§96.375 Petitions.

(a)Except as providedin paragraph (b)(2) ofthis section, the CAIR designated representative of a CAIR NOx Ozone Season unit that is subject
to an Acid Rain emissions limitation
may submit apetition under § 75.66 of this chapter to the Administrator requesting approval to apply an alternative to anyrequirement ofthis subpart. Application ofan alternative to any requirement ofthis subpart is in accordance withthis subpart only to the
extent that the petition is approved in writingby the Administrator, in consultation with the permitting authority. (b)(1) The CAIR designated representative ofa CAIR NOx Ozone Season unit that isnot subject to an Acid Rain emissions limitation may submit a petition under § 75.66 ofthis chapter to the permitting authority and the Administrator requesting approval
to apply an alternative to any requirement ofthis subpart. Application ofan alternative to any requirement of this subpart is in accordance with this subpart only to the extent that the petition is approved in writingby both the permitting authority and the Administrator. (2) The CAIR designated representative ofa CAIR NOx Ozone Season unit that is subject to an Acid Rain emissions limitation may submit a petition under 

### § 75.66 ofthis chapter to the permitting authority and the Administrator requesting approval to apply an alternative to arequirement concerning any additional continuous emission monitoring system required under § 75.72 ofthis chapter. Application ofan alternative to any such requirement is in accordance with this subpart only to the extent that the petition is approved in writing by both the permitting authority and the Administrator.
§96.376 Additionalrequirements to provide heat inputdata.

The owner or operator ofa CAIR fOx Ozone Season unit that monitors and reports NOx mass emissions using a NOx concentration system and a flow system shall also monitor and report heat input rate atthe unit level using the procedures set forth in part 75 ofthis chapter.
Subpart III-CAIR NOx Ozone Season Opt-in Units
§96.380 Applicability.

A CAIR NOx Ozone Season opt-in unit must be aunit that:

(a) Is located in the State; (b)Is not a CAIR NOx Ozone Season unit under §96.304 and is not covered by aretired unit exemption under 

### §96.305 that is in effect;

(c) Is not covered by a retired unit exemption under 

### § 72.8 ofthis chapter thatis in effect;

(d) Has or is required orqualified to have a title V operating permit or other federally enforceable permit; and

(e) Vents all ofits emissions to a stack and can meet the monitoring, recordkeeping, and reporting requirements ofsubpart HHHH ofthis part.
§96.381 General.

(a)Except as otherwise provided in 

### §§ 96.301 through 96.304, §§ 96.306 

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through 96.308, and subparts BBBB and
CCCC and subparts FFFF through HHHH ofthis part, a CAIR NOx Ozone Season opt-in unit shall be treated as a CAIR NOx Ozone Season unit for purposes ofapplying such sections and subparts ofthis part.

(b) Solely for purposes ofapplying, as provided in this subpart, the requirements ofsubpart HHHH ofthis part to aunit for which a CAIR opt-in permit application is submitted and not withdrawn and a CAIR opt-in permit is
not yetissued or denied under this subpart, such unit shallbe treated as a CAIR NOx Ozone Season unitbefore issuance ofa CAIR opt-in permit for such unit.


### §96.382. CAIR designated representative.

Any CAIR NOx Ozone Season opt-in unit, and any unit for which a CAIR optin 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 ormore CAIR NOx Ozone Season units shall have the same CAIR designated representative and alternate' CAIR designated representative as such CAIR NOx Ozone Season units.
§96.383 Applying for CAIR opt-in permit.

(a) Applying forinitialCAIR opt-in permit.The CAIR designated repr6sentative ofa unit meeting the requirements fora CAIR NOx Ozone Season opt-in unit in 

### §96.380 may apply for an initial CAIR opt-in permit
at any timte, except as provided under § 96.386 (f) and (g), and, in order to apply, must submit the following:

(1) A complete CAIR permit application under §96.322;

(2) Acertification, in aformat specified by the permitting authority, that the unit:

(i) Is not a CAIR NOx Ozone Season unit under §96.304 and is not covered by a retired unit exemption under § 96.305 that is in effect;

(ii) Is not covered by aretired unit exemption under § 72.8 ofthis 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 § 96.322; (3)A monitoring plan in accordance with subpart HHHH ofthis part; (4) A complete certificate of representation under § 96.313 consistent with §96.382, 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 unitbe allocated CAIR NOx Ozone Season allowances Under § 96.388(c) (subject to the conditions in §§ 96.384(h) and 96.386(g)).

(b) Dutyto reapply.(1) The CAIR designated representative ofa CAIR NOx Ozone Season opt-inunit shall submit a complete CAIR permit application under 

### § 96.3,22 to renew the CAIR opt-in unit permit in accordance with the permitting authority's regulations fortitle V operating permits,

orthe permitting authority's regulations for other federally.enforceable permits if applicable, addressing permit renewal.

(2) Unless the permitting authority issues a notification ofacceptance of withdrawal ofthe CAIR opt-in unit from the CAIR NOx Annual Trading Program in accordance with § 96.186 or the unit becomes a CAIR NOx unit under 

### §96.304, the CAIR NOx opt-in unit shall remain subject to the requirements for a CAIR NOx opt-in unit, even if the CAIR designated representative for the CAIR NOx opt-in unit fails to submit a CAIR permit application that isrequired for renewal ofthe CAIR opt-in permit under paragraph (b)(1) ofthis section.
§96.384 Opt-in process.

The permitting authority will issue or deny a CAIR opt-in permit for aunit for which an initial application for a CAIR opt-in permit under § 96.383 is submitted in accordance with the following:

(a) Interimreviewofmonitoring plan. The permitting authority and the Administrator will determine, on an interim basis, the sufficiency ofthe monitoring plan accompanying the initial application for a CAIR opt-in permit under § 96.383. A monitoring plan is sufficient, for purposes of interim review, ifthe plan appears to contain information demonstrating that the NOx emissions rate and heat input ofthe unit and all other applicable parameters are monitored and reported in accordance with subpart HHHH of this part. A determination ofsufficiency shall notbe construed as acceptance or approval ofthe monitoring plan.

(b) Monitoring andreporting. (1)(i) If the permitting authority,and the Administrator determine that the monitoring plan is sufficient under paragraph (a) ofthis section, the owner

or operator shall monitor and report the NOx emissions rate and the heat input ofthe unit emissions rate and- the heat input ofthe unit and all other applicable parameters, in accordance with subpart HHHH ofthispart, starting

on the date ofcertification ofthe appropriate monitoring systems under subpart HHHH ofthis.part and. continuing until a CAIR opt-in permit is denied under §-96.384(f) or, ifa CAIR opt-inpermit is issued, the date and time when the unit is withdrawn from the CAIR NOx Ozone Season Trading Program in accordance with § 96.386. (ii)The monitoring and reporting under paragraph (b)(1)(i) ofthis section shall include the entire control period immediately before the date on which the unit enters the CAIR NOx Ozone Season Trading Program under §96.384(g), during which period monitoring system availability must not be less than 90 percent under subpart HHHH ofthis part and the unit must be infull compliance with any applicable State or Federal emissions or emissionsrelated requirements.

(2) To the extent the NOx emissions rate and the heat input ofthe unit are monitored and reported in accordance with subpart HHHfI ofthis part for one

or more control periods, in addition to the control period under paragraph (b)(1)(ii) ofthis section; during which control periods monitoring system availability is not less than 90 percent under subpart HHHH ofthis 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 §96.384(g), such information shall be used as provided in paragraphs (c) and (d) ofthis section.

(c) Baselineheatinput.The unit's baseline heat rate shall equal:

(1) Ifthe unit's NOx emissions rate and heat input are monitored and reported for only one control period, in, accordance with paragraph (b)(1) ofthis section, the unit's total heat input (in mmBtu) for the control period; or

(2) Ifthe unit's NOx emissions rate and heat input are monitored and reported formore than one control period, in accordance with paragraphs (b)(1) and (2) ofthis section, the average ofthe amounts of the unit's total heat input (innunBtu) for the control period under paragraph (b)(1)(ii) ofthis section and the control periods under paragraph (b)(2) ofthis section.

(d)BaselineNOx emission rate.The unit's baseline NOx emission rate shall equal:

(1) Ifthe unit's NOx emissions rate and heat input are monitored and reported for only one control period, in accordance with paragraph (b)(1) ofthis section, the unit's NOx emissions rate ' (inlb/mmBtu) for the control period; (2) Ifthe unit's NOx emissions rate and heat input are monitored and 

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reported for more than one control period, in accordance with paragraphs (b)(1) and (2) ofthis section, and the unit do~s not have add-on NOx emission controls during any such control periods, the average ofthe
amounts ofthe unit's NOx emissions
rate (inlb/mmBtu) for the control period under paragraph (b)(1)(ii) ofthis section and the control periods under paragraph (b)(2) ofthis section; or

(3) If the unit's NOx emissions rate and heat input are monitored and reported for more thai one control period, in accordance with paragraphs (b)(1)and (2) ofthis section, and the unit has add-on NOx emission controls during any such control periods, the
average ofthe amounts ofthe unit's NOx emissions rate (inlb/mmBtu) for such control period during which the unit has add-on NOx emission controls.

(e) IssuanceofCAIR opt-inpermit. After calculating the baseline heat input and the baseline NOx emissions rate for the unit under paragraphs (c) and (d)of this section and ifthe 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 § 96.380 and meets the elements certified in § 96.383(a)(2), the permitting authority will issue aCAIR opt-in permit. The permitting authority will provide a copy ofthe 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) IssuanceofdenialofCAIR opt-in permit.Notwithstanding paragraphs (a) through (e) ofthis section, ifat any time before issuance ofa 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 § 96.380 or meets the elements certified in § 96.383(a)(2), the permitting authority will issue a denial ofa CAIR opt-in permit forthe unit.

(g) Dateofentryinto CAIR NOx OzoneSeason TradingProgram. A unit forwhich an initial CAIR opt-in permit is issued by the permitting authority shallbecome a CAIRNOx Ozone Season opt-in unit, and aCAIR NOx Ozone Season unit, as ofthe later of May 1, 2009 orMay 1 ofthe first control period during which'such CAIR opt-in permit is issued,

(h)Repowered CAIR NOx Ozone Seasonopt-in unit. (1) If CAIR designated representative requests, and the permitting authority issues a CAIR opt-in permit providing for, allocation
to aCAIR NOx Ozone Season opt-in unit ofCAIRNOx Ozone Season allowances under § 96.388(c) and such unit is repowered after its date ofentry 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-inunit replacing the original CAIR NOxOzone Season opt-in unit, as ofthe date of start-up ofthe repowered unit's combustion chamber.

(2)Notwithstanding paragraphs (c) and (d) ofthis section, as ofthe date of start-up under paragraph (h)(1) ofthis section, the repowered unit shallbe deemed to have the same date of
commencement ofoperation, date of
commencement ofcommercial 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 aCAIR opt-in unit or a CAIR
NOx Ozone Season urnit.
§96.385 CAIR opt-in permit contents.

(a) Each CAIR opt-in permit will contain: (1) All elements required for a complete CAIR permit application under § 96.322;

(2)The certification in § 96.383(a)(2); (3) The unit's baseline heat input under § 96.384(c);

(4)The unit's baseline NOx emission
rate under §96.384(d);

(5) A statement whether the unit is to be allocated CAIR NOx Ozone Season allowances under § 96.388(c) (subject to the conditions in §§ 96.384(h) and .96.386(g)); (6) A statement that the unit may withdraw from the CAIR NOx Ozone Season Trading Program only in accordance with §96.386; and

(7) A statement that the unit is subject to, and the owners and operators ofthe unit must comply with, the requirements of §96.387.

(b)Each CAIR opt-in permit is deemed to incorporate automatically the definitions ofterms under §96.302 and, upon recordation by the Administratorunder subpart FFFF or GGGG ofthis part orthis subpart, every allocation, transfer, or deduction ofCAIRNOx

- Ozone Season allowances to or from the compliance account ofthe source that includes aCAIR NOx Ozone Season optin unit covered by the CAIR opt-in permit. 

### §96.386 Withdrawal from CAIR NOx Ozone Season Trading Program.

Except as provided under paragraph (g) ofthis section, a CAIR NOx Ozone Season opt-inunit may withdraw from 'the CAIR NOx Ozone Season Trading Program, but only ifthe permitting authority issues a notification to the CAIR designated representative ofthe CAIR NOx Ozone Season opt-in unit of the acceptance ofthe withdrawal ofthe CAIR NOx Ozone Season opt-in unit in accordance with paragraph (d)ofthis section.

(a)Requestingwithdrawal.In order to withdraw a CAIR opt-in unit from the CAIR NOx Ozone Season Trading Program, the CAIR designated representative ofthe CAIR NOx Ozone Season opt-in unit shall submit to the permitting authority arequest to withdraw effective as ofmidnight of September 30 ofa specified calendar year, which date must be atleast 4 years after September 30 ofthe year of entry into the CAIR NOx Ozone Season Trading Program under § 96.384(g). The request mustbe submitted no later than 90 days before the requested effective date ofwithdrawal.

(b) Conditions forwithdrawal.Before

aCAIR NOx Ozone Season opt-in unit covered by arequest under paragraph (a) ofthis section may withdraw from the CAIR NOx Ozone Season Trading Program and the CAIR opt-in permit may be terminated under paragraph (e) ofthis section, the following conditions
must be met:

(1) For the control period ending on the date on whichthe 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 § 96.306(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 ofthe source that includes the CAIR NOx Ozone Season opt-in unit CAIR NOx Ozone Season allowances equal in number 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 §96.388 for
any control period for which the withdrawal is to be effective. Ifthere are

no remaining CAIR NOx .Ozone Season units at the source, the Administrator will close-the compliance account, and the owners and operators ofthe CAIR NOx Ozone Season opt-inunit may submit a CAIR NOx Ozone Season allowance transfer for any remaining CAIR NOx Ozone Season allowances to another CAIRNOx Ozone Season Allowance Tracking System in accordance with subpart GGGG ofthis part. 

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(c) Notification.(1) After the requirements for withdrawal under paragraphs (a) and (b) of this section are met (including deduction ofthe full
amount ofCAIR NOx Ozone Season allowances required), the permitting authority will issue a notification to the CAIR designated representative ofthe CAIR NOx Ozone Season opt-in unit of the acceptance ofthe withdrawal ofthe CAIR NOx Ozone Season opt-in unitas ofmidnight on September 30 ofthe calendar year for which the withdrawal

was requested.

(2) Ifthe requirements for withdrawal under paragraphs (a) and (b)ofthis section are notmet, the permitting authority will issue a notification to the CAIR designated representative ofthe CAIR NOx Ozone Season opt-in unit that the CAIR NOx Ozone Season optin unit's request to withdraw is denied. Such CAIR NOx opt-in unit shall continue to be aCAIR NOx Ozone Season opt-in unit.

(d)Permitamendment.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 ofthe effective date specified under paragraph (c)(1) ofthis section. The unit shall continue to be a CAIR NOx Ozone Season opt-in unit until the effective date ofthe termination and shall comply with all requirements under the CAIRNOx Ozone Season Trading Program concerning any control periods for which the unit is a CAIR NOx Ozone Season opt-in unit, even ifsuch requirements arise or must be complied with aftei the withdrawal takes effect.

(e)Reapplicationuponfailureto meet conditionsofwithdrawal.If the permitting authority denies-he CAIR NOk 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) ofthis section.

(f)Ability toreapplyto the CAIR NOx Ozone Season TradingProgram. Once a CAIR NOx Ozone Season opt-in unit withdraws from the CAIR NOx Ozone Season Trading Prograni 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 § 96.383 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 § 96.384.

(g)Inabilityto withdraw. Notwithstanding paragraphs (a)through (f) ofthis section, a CAIR NOx Ozone Season opt-in unit shall not be eligible
to withdraw from the CAIR NOx Ozone Season Trading Program ifthe CAIR designated representative ofthe CAIR NOx opt-in unitrequests, and the permitting authority issues a CAIR optin permit providing for, allocation to the CAIR NOx Ozone Season opt-in unit of CAIR NOx Ozone Season allowances under § 96.388(c). 

### §96.387 Change inregulatory status.

(a) Notification.Ifa CAIR NOx Ozone Season opt-in unit becomes a CAIR NOx Ozone Season unit under § 96.304, then the CAIR designated representative shall notify inwriting the permitting authority and the Administrator ofsuch change in the CAIR NOx Ozone Season opt-in unit's regulatory status, within 30 days ofsuch change.



### (b) Permitting authority'sand Administrator'sactions.(i) Ifa CAIR NOx Ozone Season opt-in unit becomes

a CAIR NOx Ozone Season unit under § 96.304, the permitting authority will revise the CAIR NOx Ozone Season optinunit's CAIR opt-in permit to meet the requirements ofa CAIR permit under §96.323 as ofthe date on which the CAIR NOx Ozone Season opt-in unit becomes a CAIR NOx Ozone Season unit under § 96.304. (2)(i) The Administrator will deduct from the compliance account ofthe

source that includes the CAIR NOx Ozone Season opt-in unit that becomes

a CAIR NOx Ozone Season unit under § 96.304, CAIR NOx Ozone Season allowances equal in number to and allocated for the same ora prior control period as:

(A) Any CAIR NOx Ozone Season allowances allocated to the CAIR NOx Ozone Season opt-in unit under " § 96.388 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 § 96.304; and

(B) Ifthe date on which the CAIR NOx Ozone Season opt-in unit becomes a CAIR NOx Ozone Season unit under § 96.304 is not September 30, the CAIR NQx Ozone Season allowances allocated
to the CAIR NOx Ozone Season opt-in unit under § 96.388 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 § 96.304, multiplied by the ratio ofthe number of days, in the control period, starting with the date on which the CAIR NOx Ozone Season optin unit becomes a CAIR NOx Ozone Season unitunder § 96.304 divided by thetotal number ofdays in the control period and rounded to the nearest whole allowance as appropriate.

(ii) The CAIR designated representative shall ensure that the compliance account ofthe source that includes the CAIR NOx Ozone Season unit that becomes a CAIR NOx Ozone Season unit under § 96.304 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 § 96.304, the CAIR NOx Ozone Season opt-in unit will be treated, solely for purposes of CAIR NOx Ozone Season allowance allocations under § 96.342, as a unit that

commences operation on the date on which the CAIR NOxOzone Season optin unit becomes a CAIR NOx Ozone Season unit under § 96.304 and will be allocated CAIR NOx Ozone Season allowances under § 96.342.

(ii) Notwithstanding paragraph (b)(3)(i) ofthis section, ifthe date on which the CAIR NOx Ozohe Season optin unit becomes a CAIR NOx Ozone Season unit under § 96.304 is not May 1,the following number ofCAIR NOx Ozone Season allowances willbe allocated to the CAIR NOx Ozone Season opt-in unit (as a CAIR NOx Ozone Season unit)under § 96.342 for the control period that includes the date

on which the CAIR NOx Ozone Season bpt-in unit becomes a CAIR NOx -Ozone Season unit under §96.304:

(A) The number ofCAIR NOx Ozone Season allowances otherwise allocated
to the CAIR NOx Ozone Season opt-in unit (as a CAIR NOx Ozone Season unit) under §96.342 for the control period multiplied by;

(B) The ratio of the number ofdays, in the control period, starting withthe date on which the CAIR NOx Ozone Season opt-in unit becomes a CAIR NOx Ozone Season unit under § 96.304, divided by the total number ofdays in the control period; and (C)Rounded to the nearest whole allowance as appropriate.

§96.388 NOx allowance allocationsto CAIR NOx Ozone Season opt-in units.

(a) Timingrequirements.(1) When the CAIR opt-in permit is issued under § 96.384(e), the permitting authority will allocate CAIR NOx Ozone Seasofi allowances to the CAIR NOx Ozone Season opt-in unit, and submit to the Administrator the allocation forthe control period in which a CAIR NOx Ozone Season opt-inunit enters the 

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### Federal Register/Vol. 70, No. 91/Thursday, May 12, 2005 /Rules and Regulations

CAIR NOx Ozone Season Trading Program under § 96.384(g), in accordance with paragraph (b) or (c) of this section.

(2) By no later than July 31 ofthe control period inwhich a CAIR opt-in unit enters the CAIR NOx Ozone Season Trading Program under §96.384(g) and. July 31 of eachyear 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 fgr the control period that includes such submission deadline and inwhich the unit is aCAIR NOx optinunit, in accordance withparagraph (b)or (c) ofthis section.

(b) Calculationofallocation.For each control period forwhich a CAIR NOx Ozone Season opt-inunit is to be allocated CAIR NOx Ozone Season allowances, the permitting authority will allocate in accordance with the following procedures:

(1) The heat input (inmmBtu) used forcalculating the CAIR NOx Ozone Season allowance allocation will be the lesser of:

(i) The CAIR NOx Ozone Season optin unit's baseline heat input determined under § 96.384(c); or

(ii) The CAIR NOx Ozone Season optinunit's heat input, as determined in accordance with subpart HHHH ofthis 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 § 96.384(g).

(2) The NOx emission rate (inlb/ mmBtu) used for calculating CAIR NOx Ozone Season allowance allocations will be the lesser of:

(i) The CAIR NOx Ozone Season optin unit's baseline NOx emissions rate (in lb/mjnBtu) determined under §96.384(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 forwhich CAIR NOx Ozone Season allowances are to be allocated.

(3) The permitting authority will allocate CAIR NOx Ozone Season allowances to the CAIRNOx Ozone Season opt-inunit in an amount equaling the heat input under paragraph (b)(1) ofthis section, multiplied by the NOx emission rate under.paragraph (b)(2) ofthis section, divided by 2,000 lb/ton, and rounded to the nearest whole allowance as appropriate.

(c) Notwithstanding paragraph (b) of this section and ifthe CAIR designated representative requests, and the permitting authority issues a CAIR optin permit 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 §§ 96.384(h) and 96.386(g)), the permitting authority will allocate to the CAIR NOx Ozone Season opt-in unit as follows:

(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 (inmmBtu) used for calculating CAIR NOx Ozone Season allowance allocations will be determined as described in paragraph (b)(1) ofthis section.

(ii)The NOx emission rate (inlb/ mmBtu) used for calculating CAIRNOx Ozone Season allowance allocations will be the lesser of: * (A)The CAIR NOx Ozone Season optinunit's baseline NOx emissions rate (in lb/mmBtu) determined under §96.384(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 inwhich the CAIR NOxOzone Season opt-inunit enters the CAIR NOx Ozone Season Trading Program under §96.384(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) ofthis section, multiplied by the NOx emission rate.under paragraph (c)(1)(ii) ofthis 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 CAIRNOx Ozone Season opt-in unit is to be allocated CAIR NOx Ozone Season allowances,

(i) The heat input (inmmBtu) used for calculating the CAIR NOx Ozone Season allowance allocations will be determined as described in paragraph (b)(1) ofthis section.

(ii)The NOx emission rate (inlb/ 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 optin unit's baseline NOx emissions rate (in lb/mmBtu) determined under §96.384(d); or

IC) 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 forwhich 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) ofthis section, multiplied by the
NOx emission rate under paragraph (c)(2)(ii) ofthis section, divided by 2,000 lb/ton, and rounded to the nearest whole allowance as appropriate. (d)Recordation.(1) The Administrator will record, in the compliance account ofthe 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) ofthis section. (2)By September 1, ofthe control period in which a CAIR opt-in unit
enters the CAIR NOx Ozone Season Trading Program under §96.384(g), and September 1 ofeach year thereafter, the Administrator will record, inthe compliance account ofthe source that includes the CAIR NOx Ozone Season, opt-in unit, the CAIRNOx Ozone Season allowances allocated by the permitting authority to the CAIR NOx Ozone Season opt-in unit under paragraph-(a)(2) ofthis section. [FR Doc. 05-5723 Filed 5-11-05; 8:45 am]

BILLING CODE 6560-50-P 

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HeinOnline -- 70 Fed. Reg. 25405 2005