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Federal Register/Vol. 70, No. 91/Thursday, May 12; 2005/Rules and Regulations

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) of this

section.

(2) By December 1 of the control

period in which a CAIR opt-in unit

enters the CAIR NOx Annual Trading

Program under § 96.184(g) and

December 1 of each year thereafter, the

Administrator will record, in the

compliance account of the 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) of this

section.

* 3. Part 96 is amended by adding

.subparts AAA through CCC, adding and

reserving subparts DDD and EEE and

adding subparts FFF through III to read

as follows:

Subpart AAA-CAIR SO2 Trading Program

General Provisions

Sec.

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 of time.

96.208 Appeal procedures.

.Subpart BBB-CAIR Designated

Representative for CAIR SO2 Sources

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 of representation.

96.214 Objections- concerning CAIR

designated representative.

* Subpart CCC-Permlts.

96.220 General CAIR gO2 Trading Program

permit requirements.

96.221 Submission of CAIR permit

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 S02 Allowance

Tracking System

96.250 [Reserved]

96.251 Establishment of accounts.

96.252 Responsibilities of CAIR'authorized

account representative.

96.253 Recordation of CAIR SO 2

allowances.

96.254 Compliance with CAIR SO 2

emissions limitation.

96.255 Banking.

96.256 Account error.

96.257 Closing of general accounts.

Subpart GGG-CAIR SO2 Allowance

Transfers

96.260 Submission of CAIR 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 of control periods.

96.273 Notifications.

96.274 Recordkeeping and reporting.

96.275 Petitions.

96.276 Additional requirements to provide

heat input data.

Subpart IIi-CAIR SO2 Opt-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 2 Trading

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 of the Clean

Air Act and § 51.124 of this chapter, as

a means of mitigating interstate

transport of fine particulates and sulfur

dioxide. The owner or operator of a unit

or a source shall comply with the

requirements of this 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) of this chapter, the

State submits-to the Administrator one

or more revisions of the State

implementation plan that include such

.adoption, and the Administrator

approves such revisions. If the State

adopts the requirements of such

subparts in accordance with

§ 51.124(o)(1) or (2) of this chapter, then

the State authorizes the Administrator

to assist the State in implementing the

CAIR SO 2 Trading Program by carrying

out the functions set forth 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 in this section as

follows:

Account number means the

identification number given bythe

Administrator to each CAIR S02

Allowance Tracking System account.

Acid Rain emissions limitation means

a limitation on emissions of sulfur

dioxide or nitrogen oxides under the

Acid Rain Program.

Acid Rain Program means a multistate sulfur dioxide and nitrogen oxides

air pollution control and emission

reduction program established by the

Administrator under title IV of the CAA

and parts 72 through 78 of this chapter.

Administrator means the

Administrator of the United States

Environmental Protection Agency or the

Administrator's duly authorized

representative. . Allocate or allocation means, with

regard to CA1R SO2 allowances issued

under the Acid Rain Program, the

determination by the Administrator of.

the amount of such CAIR SO2

allowances to be initially credited to a

CAIR SO 2 unit and, with regard to CAIR

SO 2 allowances issued under § 96.288,

the determination by the permitting

authority of the amount of such CAIR

SO 2 allowances to be initially credited

to a CAIR SO 2 unit.

Allowance transfer deadline means,

for a control period, midnight of March

1, if it is a business day, or, if March 1

is not a business day, midnight of the

first business day thereafter

immediately following the control

period and is the deadline by which a

CAIR SO 2 allowance transfer must be

submitted for recordation 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

of the source and all such units at the

source in accordance with subparts BBB

and III of this part, to act on behalf of

the CAIR designated representative in

matters pertaining to the CAIR SO 2

Trading Program. If the CAIR SO2

source is also a CAIR NOx source, then

this natural person shall be the same

person as the alternate CAIR designated

representative under the CAIR NOx

Annual Trading Program. If the CAIR

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. If the CAIR SO 2 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.

Automated data acquisition and

handling system or DAHS means that

component of the 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

of the measured parameters in the

measurement units required by subpart

HHH of this part.

Boiler means an enclosed fossil- or

other-fuel-fired combustion device used

to produce heat and to transfer heat to

recirculating water, steam, or other

medium.

Bottoming-cycle cogeneration unit

means a cogeneration unit in which the

energy input to the unit is first used to

produce useful thermal energy and at

least some of the reject heat from the

useful thermal energy application or process is then used for electricity

production.

CAIR authorized account

representative means, with regard to a

general account, a responsible natural

person who is authorized, in accordance

with subparts BBB and III of this part,

to transfer and otherwise dispose of

CAIR SO 2 allowances held in the

general account and, with regard to a

compliance account, the CAIR

designated representative of the source.

CAIR designated representative

means, for a CAIR SO 2 source and each

CAIR SO 2 unit at the source, the natural

person who is authorized by the owners

and operators of the source and all such

units at the source, in accordance with

subparts BBB and III of this part, to

represent and legally bind each owner

and operator in matters pertaining to the

CAIR SO 2 Trading Program. If the CAIR

S02 source is also a CAIR NOx source,

then this natural person shall be the

same person as the CAIR designated

representative under the CAIR NOx

Annual Trading Program. If the CAIR

SO 2 source is also a CAIR NOx Ozone

Season source, then this natural person

shall be the same person as the CAIR

designated representative under the

CAIR NOx Ozone Season Trading

Program. If the CAIR SO 2 source is also

subject to the Acid Rain Program, then

this natural person shall be the same

person as the designated representative

under the Acid Rain Program.

CAIR NO x Annual Trading Program

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

of this part and § 51.123 of this chapter,

as a means of mitigating interstate

transport of fine particulates and

nitrogen oxides.

CAIR NOx Ozone Season source

means a source that includes one or

more CAIR NOx Ozone Season units.

CAIR NOx Ozone Season Trading

Program means a multi-state nitrogen

oxides air pollution control and

emission reduction program approved

and administered by the Administrator

in accordance with subparts AAAA

through IIII of this part and § 51.123 of

this chapter, as a means of mitigating

interstate transport of ozone and

nitrogen oxides.

CAIR NOx Ozone Season unit means

a unit that is subject to the CAIR NOx

Ozone Season Trading Program under

§ 96.304 and a CAIR NOx Ozone Season

opt-in unit under subpart 1111 of this

part.

CAIR NOx source means a source that

includes one or more CAIR NOx units.

CAIR NOx unit means a unit that is

subject to the CAIR NOx Annual

Trading Program under § 96.104 and a

CAIR NOx opt-in unit under subpart I1

of this part.

CAIR permit means the legally

binding and federally enforceable.

written document, -or portion of such

document, issued by the permitting

authority under subpart CCC of this

part, including any permit revisions,

specifying the CAIR SO 2 Trading

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 of the source and each

such unit.

CAIR SO2 allowance means 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 of the

specified calendar year for which the

authorization is allocated or of any

calendar year thereafter under the CAIR

SO 2 Trading Program as follows:

(1) For one CAIR SO2 allowance

allocated for a control period in'a year

before 2010, one ton of sulfur dioxide,

except as provided in § 96.254(b);

(2) For one CAIR SO 2 allowance

allocated for a control 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 of sulfur 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 of a State implementation

plan that is approved under

§ 51.124(o)(1) or (2) of this chapter shall

not be a CAIR SO 2 allowance.

CAIR S0 2 allowance deduction or

deduct CAIR S0 2 allowances means the

permanent withdrawal of CAIR SO2

allowances by the Administrator from a

compliance account in order to account

for a specified number of tons of total

sulfur dioxide emissions from all CAIR

SO 2 units at a CAIR SO 2 source for a

control period, determined in

accordance with subpart HHI of this'

part, or to account for excess emissions.

CAIR S02 Allowance Tracking System

means the system by which the

Administrator records allocations,

deductions, and transfers of CAIR SO 2

allowances under the.CAIR SO 2 Trading

Program. This is the same system as the

Allowance Tracking System under

§ 72.2 of this chapter by which the

Administrator records allocations,

deduction, and transfers of Acid Rain

SO 2 allowances under the Acid Rain

Program.

CAIR S02 Allowance Tracking System

account means an account in the CAIR

SO2 Allowance Tracking System

established by the Administrator for

purposes of recording the allocation,

holding, transferring, or deducting of

CAIR SO2 allowances. Such allowances

will be allocated, held, deducted, or

transferred only as whole allowances.

CAIR S02 allowances held or hold

CAIR S02 allowances means the CAIR

SO 2 allowances recorded by the

Administrator, or submitted to the

Administrator for recordation, in

accordance with subparts FFF, GGG,

and III of this part or part 73 of this

chapter, in a CAIR SO 2 Allowance

Tracking System account.

CAIR S02 emissions limitation means,

for a CAIR SO 2 source, the tonnage

equivalent of the CAIR SO 2 allowances

available for deduction for the source

under § 96.254(a) and (b) for a control

period.

CAIR S02 source means a source that

includes one or more CAIR SO2 units.

CAIR SO2 Trading Program means a

multi-state sulfur dioxide air pollution

control and emission reduction program

approved and administered by the

Administrator in accordance with

subparts AAA through III of this part

and § 51.124 of this chapter, as a means

of mitigating interstate transport of fine

particulates and sulfur dioxide.

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* CAIR S0 2 unit means 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 of this part.

Clean Air Act or CAA means the

Clean Air Act, 42 U.S.C. 7401, et seq.

Coal means any solid fuel classified as anthracite, bituminous, subbituminous,

or lignite.

Coal-derived fuel means any fuel

(whether in a solid, liquid, or gaseous

state) produced by the mechanical,

thermal, or chemical processing of coal.

Coal-fired means combusting any

amount of coal or coaL-derived fuel,

alone, or in combination with any

amount of any other fuel.

Cogeneration unit means a stationary,,

fossil-fuel-fired boiler or stationary,

fossil-fuel-fired combustion turbine:

(1) Having equipment used to produce

electricity and useful thermal energy for

industrial, commercial, heating, or

cooling purposes through the sequential

use of energy; and

(2) Producing during the 12-month

period starting on the date the unit first

produces electricity and during any

calendar year after which the unit first

produces electricity-

(i) For a topping-cycle cogeneration

unit,

(A) Useful thermal energy not less

than 5 percent of total energy output;

and

(B) Useful power that, when added to

one-half of useful thermal energy

produced, is not less then 42.5 percent

of total energy input, if useful thermal

energy produced is 15 percent or more

of total energy output, o'r not less than

45 percent of total energy input, if

useful thermal energy produced is less

than 15 percent of total energy output.

(ii) For a bottoming-cycle

cogeneration unit, useful power not less

than 45 percent of total energy input.

Combustion turbine means: (1) An enclosed device comprising a

compressor, a combustor, and a turbine

and in which the flue gas resulting from

the combustion of fuel in the combustor,

passes through the turbine, rotating the.

turbine; and

(2) If the enclosed device under

paragraph (1) of this definition is'

combined cycle, any associated heat

recovery steam generator and steam

turbine.

Commence commercial operation

means, with regard 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 § 96.205.

(i) For a unit that is a CAIR SO 2 unit

under § 96.204 on the date the unit

commences commercial operation- as

defined in paragraph (1) of this

definition and that subsequently

undergoes a physical change (other than

replacement of the unit by a unit at the

same source), such date shall remain the

unit's date of commencement of

commercial operation.

(ii) For a unit that is a CAIR S02 unit

under § 96.204 on the date the unit

commences commercial operation as

defined in paragraph (1) of this

definition and that is subsequently

replaced-by a unit at the same source

(e.g., repowered), the replacement unit

shall be treated as a separate unit with

a separate date for commencement of

commercial operation as defined in

paragraph (1), (2), or (3) of this

definition as appropriate.

(2) Notwithstanding paragraph (1) of

this definition and except as provided

in § 96.205, for a unit that is not a CAIR

SO 2 unit under § 96.204 on the date the

unit commences commercial operation

as defined in paragraph (1) of this

definition and is not a unit under

paragraph (3) of this definition, the

unit's date for commencement of

commercial operation shall be the date

on which the unit becomes a CAIR SO 2

unit under § 96.204.

(i) For a unit with a date for

commencement of commercial

operation as defined in paragraph (2) of

this definition and'that subsequently

undergoes a physical change (other than

replacement of the unit by a unit at the

same source), such date shall remain the

unit's date of commencement of

commercial operation. : (ii) For a unit with a date for

commencement of commercial

operation as defined in paragraph (2) of

this definition and that is subsequently

replaced by a unit at the same source

(e.g., repowered), the replacement unit

shall be treated as a separate unit with

a separate date for commencement of

commercial operation as defined in

paragraph (1), (2), or (3) of this

definition as appropriate.

(3) Notwithstanding 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 a unit for which

a CAIR opt-in permit application is

submitted and not withdrawn and a

CAIR opt-in permit is not yet issued or

denied under subpart III of this part, the

unit's date for commencement of

commercial operation shall be the date

on which the owner or operator is

required to start monitoring and

reporting the S02 emissions rate and the

heat input of the unit under

§ 96.284(b)(1)(i).

(i) For a unit with a date for

commencement of commercial

operation as defined in paragraph (3) of

this definition and that subsequently

undergoes a physical change (other than

replacement of the unit by a unit at the

same source), such date shall remain the

unit's date of commencement of

commercial operation.

(ii) For a unit with a date foi

commencement of commercial

operation as defined in paragraph (3) of

this definition and that is subsequently

replaced by a unit at tbe same source

.(e.g., repowered), the replacement unit

shall be treated as a separate unit With

a separate date for commencement of

commercial operation as defined in

paragraph (1), (2), or (3) of this

definition as appropriate.

(4) Notwithstanding paragraphs (1)

through (3) of this definition, for a unit

not serving a genetator producing

electricity for sale, the unit's date of

commencement of operation shall also

be the unit's date of commencement of

commercial operation.

Commence operation means:

(1) To have:begun any mechanical,

chemical, or electronic process,

including, with regard to a unit, start-up

of a 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) of this definition and that

subsequently undergoes a physical

change (other than replacement of the

unit by a unit at the same source), such

date shall remain the unit's date of

commencement of operation.

(ii) For a unit that is a CAIR SO2 unit

under § 96.204 on the date the unit

commences operation as defined in

paragraph (1) of this 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 of operation as defined

in paragraph (1), (2), or (3) of this

definition as appropriate.

(2) Notwithstanding paragraph (1) of

this definition and except as provided

in § 96.205, for a unit that i s not a CAIR

S02 unit under § 96.204 on the date the

unit commences operation as defined in

paragraph (1) of this definition and is

not a unit under paragraph (3) of this

definition, the unit's date for

commencement of operation 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 of operation as defined

in paragraph (2) of this definition and

that subsequently undergoes a physical

change (other than replacement of the

unit by a unit at the same source), such

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date shall remain the unit's date of

commencement of operation.

(ii) For a unit with a date for

commencement of operation as defined

in paragraph (2) of this definition and

that is subsequently replaced by a unit

at the same.source (e.g., repowered), the

replacement unit shall be'treated as a

separate unit with a separate date for

commencement of operation as defined

in paragraph (1),(2), or (3) of this

definition as appropriate.

(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-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 not yet issued or

denied under subpart III of this part, the

unit's date for commencement of

operation shall be the date on which the

owner or operator is required to start

monitoring and reporting the S02

emissions rate and the heat input of the

unit under § 96.284(b)(1)(i).

(i) For a unit with a date for

commencement of operation as defined

in paragraph (3) of this definition and

that subsequently undergoes a physical

change (other than replacement of the

unit by a unit at the same source), such

date shall remain the unit's date of

commencement of operation.

(ii) For a unit with a date for

commencement of operation as defined

in paragraph (3) of this 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 of operation as defined

in paragraph (1), (2), or (3) of this

definition as appropriate.

Common stack means a single flue

through which emissions from 2 or

more units are exhausted.

Compliance account means a CAIR

S02 Allowance Tracking System

account, established by the

Administrator for a CAIR S02 source

subject to an Acid Rain emissions

limitations under § 73.31(a) or (b) of this

chapter or for any other CAIR S02

source under subpart FFF or III of this

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.

Continuous emission monitoring

system or CEMS means the equipment

required under subpart HHH of this part

to sample, analyze, measure, ahd

provide, by means of readings recorded

at least once every 15 minutes (using an

automated data acquisition and

handling system (DAHS)), a permanent

record of sulfur dioxide emissions, stack

gas volumetric flow rate, stack gas

moisture content, and oxygen or carbon

dioxide concentration (as applicable), in

a manner consistent with part 75 of this

chapter. The following systems are the

principal types of continuous emission

monitoring systems required under

subpart HHH of this part:

(1) A flow monitoring system,

consisting of a stack flow rate monitor

and- an automated data acquisitiofil and

handling system and providing a

permanent, continuous record of stack

gas volumetric flow rate, in standard

cubic feet per hour (scfh); • (2) A sulfur dioxide monitoring

system, consisting of a S02 pollutant

concentration monitor and an

automated data acquisition handling

system and providing a permanent,

continuous record of S02 emissions, in

parts per million (ppm);

(3) A moisture monitoring system, as

defined in § 75.11(b)(2) of this chapter

and providing a permanent, continuous

record of the slack gas moisture content,

in percent H20;

(4) A carbon dioxide monitoring

system, consisting of a 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 of CO 2

emissions, in percent C0 2; and

(5) An oxygen monitoring system,

consisting of an 02 concentration

monitor and an automated data

acquisition and handling system and

providing a permanent, continuous

record of 02 in percent 02.

Control period means the period

beginning January 1 of a calendar year

and ending on December 31 of the same

year, inclusive.

Emissions means air pollutants

exhausted from a unit or source into the

atmosphere, as measured, recorded, and

reported to the Administrator by the

CAIR designated representative and as

determined by the Administrator in

accordance with subpart HHH of this

part.

Excess emissions means any ton, or

portion of a ton, of sulfur dioxide

emitted by the CAIR S02 units at a CAIR

S02 source during a control period that

* exceeds the CAIR S02 emissions

limitation for-the source, provided that

any portion of a ton of excess emissions

shall be treated as one ton of excess

emissions.

Fossil fuel means natural gas,

petroleum, coal, or any form of solid,

liquid, or gaseous fuel derived from

such material.

Fossil-fuel-fired means, with regard to

a unit, combusting any amount of fossil

fuel in any calendar year.

Generalaccount means a CAIR S02

Allowance Tracking System account,

established under subpart FFF of this

part, that is not a compliance account.

Generator means a device that

produces electricity.

Heat input means, with regard to a

specified period of time, the product (in

mmBtu/time) of the gross calorific value

of the fuel (in Btu/lb) divided by

1,000,000 Btu/mmBtu and multiplied by

the fuel feed rate into a combustion

device (in lb of fuel/time), as measured,

recorded, and reported to the

Administrator by the CAIR designated

representative and determined by the

Administrator in accordance with

subpart HHH of this part and excluding

the heat derived from preheated

combustion air, recirculated flue gases,

or exhaust from other sources.

Heat input rate means the amount of

heat input (in mmBtu) divided by unit

* operating time (in hr) or, with regard. to

a specific fuel, the amount of heat input

attributed to the fuel {in mmBtu)

divided by the unit operating time (in

-hr) during which the unit combusts the

fuel.

Life-of-the-unit, firm power

contractual arrangement means a unit

participation power sales agreement

under which a utility or industrial

customer reserves, or is entitled to

receive, a specified amount or

percentage of nameplate capacity and

associated energy generated by any

specified unit and pays its proportional

amount of such unit's total costs,

pursuant to a contract:

(1) For the life of the unit;

(2) For a cumulative term of no less

than 30 years, including contracts that

permit an election for early termination;

or

(3) For a period no less than 25 years

or 70 percent of the economic useful life

of the unit determined as of the time the

unit is built, with option rights to

purchase or release some portion of the

nameplate capacity and associated

energy generated by the unit at the end

of the period.

Maximum design heat input means,

starting from the initial installation of a

unit, the maximum amount of fuel per

hour (in Btu/hr) that a unit is capable of

combusting on a steady state basis as

specified by the manufacturer of the

unit, or, starting from the completion of

any subsequent physical change in the

unit resulting in a decrease in the

maximum amount of fuel per hour (in

Btu/hr) that a unit 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..

Monitoring system means any

monitoring system that meets the

requirements-of subpart HHH of this

part, including a continuous emissions

monitoring system, an alternative

monitoring system, or an excepted

monitoring system under part 75 of this

chapter.

Most stringent State orFederal S02

emissions limitation means, with regard

to a unit, the lowest S02 emissions

limitation (in terms of lb/mmBtu) that is

applicable to the unit under State or

Federal law, regardless of the averaging

period to which the emissions

limitation applies.

Nameplate capacity means, starting

from the initial installation of a

generator, the maximum electrical

generating output (in MWe) that the

generator is capable of producing on a

steady state basis and during continuous

operation (when not restricted by

seasonal or other deratings) as specified

by the manufacturer of the generator or,

starting from the completion of any

subsequent physical change in the

generator-resulting in an increase in the

maximum electrical generating output

(in MWe) that-the generator is capable

of producing on a steady state basis and

during continuous operation (when not

restricted by seasonal or other

deratings), such increased 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, but not be limited to, any

holding company, utility system, or

plant manager of such a unit or source. Owner means any of the following

persons:

(1) With regard to a CAIR SO 2 source

or a CAIR S02 unit at a source,

respectively:

(i) Any holder of any portion of the

legal or equitable title in a CAIR S02

unit at the source or the CAIR S02 unit;

(ii) Any holder of a leasehold interest

in a CAIR S02 unit at the source or the

CAIR S02 unit; or (iii) Any purchaser of power 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 not include a passive lessor,

or a person who has an equitable

interest through such lessor, whose

rental payments are not based (either

directly or indirectly) on the revenues or

income from such CAIR 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.

Permitting authority means the. State

air pollution control agency, local

agency, other State agency, or other

agency authorized by the Administrator

to issue or revise permits to meet the

requirements of the CAIR S02 Trading

Program in accordance with subpart

CCC of this part or, if no such agency

has been so authorized, thie

Administrator. ' Potential electrical output capacity

means 33 percent of a unit's maximum

design heat input, divided by 3,413

Btu/kWh, divided by 1,000 kWh/MWh,

and multiplied by 8,760 hr/yr.

Receive or receipt of means, when

referring to the permitting authority or

the Administrator, to come into

- possession of a document, information,

or correspondence (whether sent in hard

copy or by authorized electronic

transmission), as indicated in an official

correspondence log, or by a notation

made on the document, information, or

correspondence, by the permitting

authority or the Administrator in the

regular course of business.

Recordation, record, or recorded

means, with regard to CAIR SO 2

allQwances, the movement of CAIR SO 2

allowances by the Administrator into or

between CAIR SO 2 Allowance Tracking

System accounts, for purposes of

allocation, transfer, or deduction.

Reference method means any direct

test method of sampling and analyzing

for an air pollutant as specified in

§ 75.22 of this chapter.

Repowered means, with regard to a

unit, replacement of a coal-fired boiler

with one of the following coal-fired

technologies at the same source as the

coal-fired boiler:

(1) Atmospheric or pressurized

fluidized bed combustion;

(2) Integrated gasification combined

cycle;

(3) Magnetohydrodynamics;

(4) Direct and indirect coal-fired

turbines;

(5) Integrated gasification fuel cells; or (6) As determined by the

Administrator in consultation with the

Secretary of Energy, a derivative of one

or more of the technologies under

paragraphs (1) through (5) of this

definition and any other coal-fired

technology capable of controlling

multiple combustion emissions

simultaneously with improved boiler or

generation efficiency and with

significantly greater waste reduction

relative to the performance of

technology in widespread commercial

use as of January 1, 2005.

Serial number means, for a CAIR SO 2

allowance, the unique identification

number assigned to each CAIR SO 2

allowance by the Administrator.

Sequential use bf energy means:

(1) For a topping-cycle cogeneration

unit, the use of reject heat from

electricity production in a usefulthermal energy application or process;

or

(2) For a bottoming-cycle cogeneration

unit, the use of reject heat from useful

thermal energy application or process in

electricity production.

Source means all buildings,

structures, or installations located in

one or more contiguous or adjacent

properties under common control of the

same person or persons. For purposes of

section 502(c) of the Clean Air Act, a "source," including a "source" with

multiple units, shall be considered a

single "facility."

State means one of the States or the

District of Columbia that adopts the

CAIR SO 2 Trading Program pursuant to

§ 51.124 (o)(1) or (2) of this chapter.

Submit or serve means to send or

transmit a document, information, or

correspondence to the person specified

in accordance with the applicable

regulation:

(1) In person;

(2) By United States Postal Service; or

(3) By other means of dispatch or -

transmission and delivery. Compliance

with any "submission" or "service"

deadline shall be determined by the

date of dispatch, transmission, or

mailing and not the date of receipt. Title V operating permit means a

permit issued under title V of the Clean

Air Act and part 70 or part 71 of this,

chapter.

Title V operating permit regulations

means the regulations that the

Administrator has approved or issued as

meeting the requirements of title V of

the Clean Air Act and part 70 or 71 of

this chapter.

Ton means 2,000 pounds. For the

purpose of determining compliance

"with the CAIR SO 2 emissions limitation,

total tons of sulfur dioxide emissions for

a control period shall be calculated as

the sum of all recorded hourly

emissions (or the mass equivalent of the

recorded hourly emission rates) in

accordance with subpart HHH of this

part, but with any remaining fraction of

a ton equal to or greater than 0.50 tons

deemed to equal one ton and any

I

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remaining fraction of a ton less than

0.50 tons deemed to equal zero tons.

Topping-cycle cogeneration unit

means a cogeneration unit in which the

energy input to the unit is first used to

produce useful power, including

electricity, and at least some of the

reject heat from the electricity

production is then used to provide

useful thermal energy.

Total energy input means, with regard

to a cogeneration unit, total energy of all

forms supplied to the cogeneration unit,

excluding energy produced by the

cogeneration unit itself.

Total energy output means, with

regard to a cogeneration unit, the sum

of useful power and useful thermal.

energy produced by the cogeneration

unit.

Unit means a stationary, fossil-fuelfired boiler or combustion turbine or

other stationary, fossil-fuel-fired

combustion device.

Unit operating day means a calendar

day in which a unit combusts any fuel.

Unit operating hour or hour of unit

operation means an hour in which a

unit combusts any fuel.

Useful power means, with regard to a

cogeneration unit, electricity or

mechanical energy made available for

use, excluding any such energy used in

the power production process (which

process includes, but is not limited to,

any on-site processing or treatment of

fuel combusted at the unit and any onsite emission controls).

Useful thermal energy means, with

regard to a cogeneration unit, thermal

energy that is:

(1) Made available to an industrial or

commercial process (not a power

production process), excluding any heat

contained in condensate return or

makeup water;

(2) Used in a heat 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 power distribution system,

means the portion of an electricity grid

owned or operated by a utility and

dedicated to delivering electricity to

customers.

j96.203 Measurements, abbreviations,

and acronyms.

Measurements, abbreviations, and

acronyms used in this 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.

H2 0-water.

yr-year.

§96.204 Applicability.

The following units in a State shall be

CAIR SO 2 units, and any source that

includes one or more such units shall be"

a CAIR SO 2 source, subject to the

requirements of this subpart and

subparts BBB through HHH of this part:

(a) Except as provided in paragraph

(b) of this section, a stationary, fossilfuel-fired boiler or stationary, fossilfuel-fired combustion turbine serving at

any time, since the start-up of the unit's

combustion chamber, a generator with

nameplate capacity of more than 25

MWe producing electricity for sale.

(b) For a unit 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

of the unit's potential electric output

capacity or 219,000 MWh, whichever is

greater, to any utility power distribution

system for sale. If a unit 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.

§96.205 Retired unit exemption.

(a)(1) Any CAIR S02 unit that is

permanently retired and is not a CAIR

SO 2 opt-in unit under subpart III of this

part shall be exempt from the CAIR SO2

Trading Program, except for the

provisions of this section, § 96.202,

§ 96.203, § 96.204, § 96.206(c)(4)

through (8), § 96.207, and subparts FFF

and GGG of this part.

(2) The exemption under paragraph

(a)(1) of this section shall become

effective the day on which the CAIR SO 2

unit is permanently retired. Within 30

days of the unit's permanent retirement,

the CAIR designated representative shall

submit a statement to the permitting

authority otherwise responsible for

administering any CAIR permit for the

unit and shall submit a copy of the

statement to the Administrator. The

statement shall state, in a format

prescribed by the permitting authority,

that the unit was permanently retired on

a specifid date and will comply with the

requirements of paragraph (b) of this

section.

(3) Aft6r receipt of the statement

under paragraph (a)(2) of this section,

the permitting authority will amend any

permit under subpart CCC of this part

covering the source at which the unit is

located to add the provisions and

requirements of the exemption under

paragraphs (a)(1) and (b) of this section.

(b) Special.provisions. (1) A unit

exempt under paragraph (a) of this

section shall not emit any sulfur

dioxide, starting on the date that the

exemption takes effect.

(2) For a period of 5 years from the

date the records are created, the owners

and operators of a unit exempt under

paragraph (a) of this section shall retain

at the source that includes the unit,

records demonstrating that the unit is

permanently retired. The 5-year period

for keeping records may be extended for

cause,,at any time before the end of the

period, in writing by the permitting

authority or the Administrator. The

owners and operators bear the burden of

proof that the unit is permanently

retired.

(3) The owners and operators and, to

the extent applicable, the CAIR

designated representative of a unit

exempt under paragraph (a) of this

section shall comply with the

requirements of the CAIR SO 2 Trading

Program concerning all periods for •

which the exemption is not in effect,

even if such requirements arise, or must

be complied with, after the exemption

takes effect.

(4) A unit exempt under paragraph (a)

of this section and located at a source

that is required, or but for this

exemption would be required, to have.a

title V operating permit shall not resume

operation unless the CAIR designated.

representative of the source submits a

complete CAIR permit application

under § 96.222 for the unit not less than

18 months (or such lesser time provided

by the permitting authority) before the

later of January 1, 2010 or the date on

which the unit resumes operation..

(5) On the earlier of the following

dates, a unit exempt under paragraph (a)

of this section shall lose its exemption:

(i) The date on which the CAIR

designated representative submits a •

CAIR permit application for the unit

under paragraph (b)(4) of this section;

(ii) The date on which the CAIR

designated representative is required

under paragraph (b)(4) of this section to

submit a CAIR permit application for

the unit; or

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(iii) The date on which the unit

resumes operation, if the CAIR

.designated representative is not

required to submit a CAIR permit

application for the unit.

(6) For the purpose of applying

monitoring, reporting, and

recordkeeping requirements under

subpart HHH of this part, a unit that

loses its exemption under paragraph (a)

of this'section shall be treated as a unit

that commences operation and

commercial operation on the first date

on which the unit resumes operation.

§96.206 Standard requirements.

(a) Permit requirements. (1) The CAIR

designated representative of each CAIR

SO 2 source required to have a title V

operating permit and each CAIR S02

unit required to have a title V operating

permit at the source shall:

(i) Submit to the permitting authority

a complete CAIR permit application

under § 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 of each

CAIR S02 source required to have a title

V operating permit and each CAIR S02

unit required to have a title V operating

permit at the source shall have a CAIR

permit issued by the permitting

authority under subpart CCC of this part

for the source and operate the source

and the unit in compliance with such

CAIR permit.

(3) Except as provided in subpart III

of this part, the owners and operators of

a CAIR SO2 source that is not otherwise

'required to have a title V operating

permit and each CAIR S02 unit that is

not otherwise required to have a title V

operating permit are not required to

submit a CAIR permit application, and

to have a CAIR permit, under subpart

CCC of this part for such CAIR SO 2

source and such CAIR S02 unit.

(b) Monitoring, reporting, and

recordkeeping requirements. (1) The

owners and operators, and the CAIR

designated representative, of each CAIR

S02 source and each CAIR S02 unit at

the source shall, comply with the

monitoring, reporting, and

recordkeeping requirements of subpart

HHH of this part.

(2) The emissions measurements

recorded and reported in accordance

with subpart HHH of this part shall be

used to determine compliance by each

CAIR SO 2 source with the CAIR SO 2

emissions limitation under paragraph

(c) of this section.

(c) Sulfur dioxide emission

rdquirements. (1) As of the allowance

transfer deadline for a control period,

the owners and operators of each CAIR

SO 2 source and each CAIR SO2 unit 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 of total sulfur dioxide

emissions for the control period from all

CAIR SO 2 units at the source, as

determined in accordance with subpart

HHH of this part.

(2) A CAIR SO 2 unit shall be subject

to the requirements under paragraph

(c)(1) of this section starting on the later

of January 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 a control period in a

calendar year before the- year for which

the CAIR SO 2 allowance was allocated.

(4) CAIR SO 2 allowances shall be held

in, deducted from, or transferred into or

among CAIR S02 Allowance Tracking

System accounts in accordance with

subparts FFF and GGG of this 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 of the CAIR SO 2

Trading Program, the CAIR permit

,application, the CAIR permit, or an

exemption under § 96.205 and no

provision of law shall be construed to

limit the authority of the State or the

United States to terminate or limit such

authorization.

(6) A CAIR SO 2 allowance does not

constitute a property right.

(7) Upon recordation by the

Administrator under subpart FFF, GGG,

or III of this part, every allocation,

transfer, or deduction of a CAIR SO2

allowance to or from a CAIR SO 2 unit's

compliance account is incorporated

automatically in any CAIR permit of the

source that includes the CAIR SO 2 unit.

(d) Excess emissions requirements-

(1) If a CAIR SO2 source emits sulfur

dioxide during any control period in

excess of the CAIR SO 2 emissions

limitation, then:

(i) The owners and operators of the

source and each CAIR SO 2 unit at the

source shall surrender the CAIR SO 2

allowances required for deduction

under § 96.254(d)(1) and pay any fine,

penalty, or assessment or comply with

any other remedy imposed, for the same

violations, under the Clean Air Act or

applicable State law; and

(ii) Each ton of such excess emissions

and each day of such control period

shall constitute a separate violation of

this subpart, the Clean Air Act, and

applicable State law.

(2) [Reserved]

(e) Recordkeeping and reporting

requirements. (1) Unless otherwise

provided, the owners and operators of

the CAIR SO 2 source and each CAIR SO 2

unit at the source. shall keep on site at

the source each of the following

documents for a period of 5 years from

the date the document is created. This

period may be extended for cause, at

any time before the end of 5 years, in

writing by the permitting authority or

the Administrator.

(i) The certificate of representation

under § 96.213 for the CAIR designated

representative for the 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 -that the

certificate and documents shall be

retained on site at the source beyond

such 5-year period until such

documents are superseded because of

the submission of a new certificate of

representation under § 96.213 changing

the CAIR designated representative.

(ii) All emissions monitoring

information, in accordance with subpart

HHH of this part, provided that to the

extent that subpart HHH of this part

provides for a 3-year period for

recordkeeping, the 3-year period shall

apply.

(iii) Copies of all reports, compliance

certifications, and other submissions

and all records made or required under

the CAIR SO2 Trading Program.

(iv) Copies of all documents used to

complete a CAIR permit application and

any other submission under the CAIR

SO 2 Trading Program or to demonstrate

compliance with the requirements of the

CAIR S02 Trading Program.

(2) The CAIR designated

representative of a CAIR SO 2 source and

each CAIR SO 2 unit at the source shall

submit the reports required under the

CAIR SO 2 Trading Program, including

those under subpart HHH of this 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 of the CAIR SO 2

Trading Program that applies to a CAIR

SO 2 source or the CAIR designated

representative of a CAIR SO 2 source

shall also apply to the owners and

operators of such source and of the

CAIR SO 2 units at the source.

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(3) Any provision of the CAIR S02

Trading Program that applies to a CAIR

S02 unit or the CAIR designated

representative of a CAIR S02.unit shall

also apply to the owners and operators

of such unit.

(g) Effect on other authorities. No

provision of the 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, of a CAIR S02 source or

CAIR S02 unit from compliance with

any other provision of the applicable,

approved State implementation plan, a

federally enforceable permit, or the

Clean Air Act.

§96.207 Computation of time.

(a) Unless otherwise stated, any time

period scheduled, under the CAIR" SO 2

Trading Program, to begin on the

occurrence of an act or event shall begin

on the day the act or event occurs.

(b) Unless otherwise stated, any time

period scheduled, under the CAIR S02

Trading Program, to begin before the

occurrence of an act or event shall be

computed so that the period ends the

day before the act or event occurs. (c) Unless otherwise stated, if the final

day of any time period, under the CAIR

SO 2 Trading Program, falls on a

weekend or a State or Federal holiday,

the time period shall be extended to the

next business day.

§96.208 Appeal procedures.

The appeal procedures for decisions

of the Administrator under the CAIR

SO 2 Trading Program are set forth in

part 78 of this chapter.

Subpart BBB-CAIR Designated

Representative for CAIR S02 Sources

§ 96.210 Authorization and responsibilities

of CAIR designated representative.

(a) Except as provided under § 96.211,

each CAIR SO2 source, including all

CAIR SO 2 units at the source, shall have

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 at the source.

(b) The CAIR designated

representative of the CAIR SO 2 source

shall be selected by an agreement

binding on the owners and operators of

the source and all CAIR SO 2 units at the

source and shall act in accordance with

the certification statement in

§ 96.213(a)(4)(iv).

(c) Upon receipt by the Administrator

of a complete certificate of

representation under § 96.213, the CAIR

designated representative of the source

shall represent and, by his or her,

representations, actions, inactions, or

submissions, legally bind each owner

and operator of the CAIR 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 or unit.

(d) No CAIR permit will.be issued, no

emissions data reports will be accepted,

and no CAIR SO 2 Allowance Tracking

System account will be established for

a CAIR SO 2 unit at a source, until the

Administrator has received a complete

certificate of representation under

§ 96.213 for a CAIR designated

representative of the 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 on behalf of which the

submission is made. Each such

submission shall include the following,

certification statement by the CAIR

designated representative: "I am

authorized to make this submission on

behalf of the owners and operators of

the source or units for which the

submission is made. I certify under

penalty of law that I have personally

examined, and am familiar with, the

statements and information submitted

in this document and all its

attachments. Based on my.inquiry of

those individuals with primary

responsibility for obtaining the

information, I certify that the statements

and information are to the best of my

knowledge and belief true, accurate, and

complete. I am aware that there are

significant penalties for submitting false

statements and information or omitting

required statements and information,

including the possibility of fine or

imprisonment." .

(2) The permitting authority and the

Administratorwill accept or act on a

submission made on behalf of owner or

operators of a CAIR SO 2 source or a

CAIR SO 2 unit only if the submission

has been made, signed, and certified in

'accordance with paragraph (e)(1) of this

section.

§ 96.211 Alternate CAIR designated

representative.

(a) A certificate of representation

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

of the CAIR designated representative.

(b) Upon receipt by the Administrator

of a complete certificate of

representation under § 96.213, any

representation, action, inaction, or

submission by the alternate CAIR

designated representative shall be

deemed to be a representation, action,

inaction, or submission by the CAIR

designated representative.

(c) Except in this section and

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 of this 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

of a 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 shall be binding on the

new CAIR designated representative and

the owners and operators of the CAIR

SO 2 source and the CAIR SO 2 units at

the source.

(b) Changing alternate CAIR

designated representative. The alternate

CAIR designated representative may be

changed at any time upon receipt by the

Administrator of a superseding

complete certificate of representation

under § 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 of representation

shall be binding on the new alternate

CAIR designated representative and the

owners and operators of the CAIR'SO 2

source and the CAIR SO 2 units at the

source.

(c) Changes in owners and operators.

(1) In the event a new owner or operator

of a CAIR SO 2 source or a CAIR SO 2 unit

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is not included in the list of owners and

operators in the certificate of

representation under § 96.213, such new

owner or operator shall be deemed to be

subject to and bound by the certificate

of representation, the representations,

actions, inactions, and submissions of

the CAIR designated representative and

any alternate CAIR designated

representative of the source or unit, and

the decisions and orders of the

permitting authority, the Administrator,

or a court, as if the 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 2 unit,

including the addition of a new owner

or operator, the CAIR designated

representative or any alternate CAIR

designated representative shall submit a

revision to the certificate of

representation under § 96.213 amending

the list of owners and operators t6

include the change.

§96.213 Certificate of representation.

(a) A complete certificate of

representation for a CAIR designated

repcesentative or an alternate CAIR

* designated representative shall include

the following elements in a format

prescribed by the Administrator:

(1) Identification of the CAIR SO 2

source, and each CAIR S02 unit at the

source, for which the certificate of

representation is submitted:

(2) The name, address, e-mail address

(if any), telephone number, and

facsimile transmission number (if any)

of the CAIR designated representative

and any alternate CAIR designated

representative.

(3) A list of the owners and operators

of the CAIR S02 source and of each

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 of the 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 S02 Trading Program on behalf 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 of the source and of each

CAIR S02 unit at the source shall be'

bound by any order issued to me by the

Administrator, the permitting authority,

or a court regarding the source or unit."

(iv) "Where there are multiple holders

of a legal or equitable title to, or a

leasehold interest in, a CAIR 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 of the

agreement by which I was selected to

each owner and operator of the source

and of each CAIR S02 unit at the source;

and CAIR S02 allowances and proceeds

of transactions involving CAIR S02

allowances will be deemed to be held or

distributed in proportion to each

holder's legal, equitable, leasehold, or

contractual reservation or entitlement,

except that, if such multiple holders

have expressly provided for a different

distribution of CAIR S02 allowances by

contract, CAIR S02 allowances and

proceeds of transactions involving CAIR

S02 allowances will be deemed to be

held or distributed in accordance with

the contract."

(5) The signature of the CAIR

designated representative and any

alternate CAIR' designated

representative and the dates signed.

(b) Unless otherwise required by the

permitting authority or the

Administrator, documents of agreement

referred to in the certificate of

representation shall not be submitted to

the permitting authority or the

Administrator. Neither the permitting

authority nor the Administrator shall be

under any obligation to review or

evaluate the sufficiency of such

documents, if submitted.

§96.214 Objections concerning CAIR

designated representative.

(a) Once a complete certificate of

representation under § 96.213 has been

submitted and received, the permitting

authority and the Administrator will

rely on the certificate of representation

unless and until a superseding complete

certificate of representation under

§ 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 or the

Administrator concerning the

authorization, or any representation,

action, inaction, or submission, of the

CAIR designated representative shall

affect any representation, action,

inaction, or submission of the CAIR

designated representative or the finality

of any decision or order by the

permitting authority or the

Administrator under the CAIR 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 of any

CAIR designated representative,

including private legal disputes

conherning the proceeds of CAIR 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 of this part,

to have a title V operating permit or

other federally enforceable .permit, such

permit shall include a CAIR permit

administered by the permitting

.authority for the title V operating permit

or the federally enforceable permit as

applicable. The CAIR portion of the title

* V permit or other federally enforceable

permit as applicable shall be

administered in accordance with the

permitting authority's title V operating

permits regulations promulgated under

part 70 or 71 of this chapter or the

-permitting authority's regulations for

other federally enforceable permits as

applicable, except as provided

otherwise by this subpart and subpart III

of this 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 NOx Annual Trading Program,

and CAIR NOx Ozone Season Trading

Program requirements and shall .be a

complete and separable portion of the

title V operating permit or other

federally enforceable permit under

paragraph (a) of this section.

§96.221 Submission of CAIR permit

applications. . (a) Duty to'apply. The CAIR

designated representative of any CAIR

S02 source required to have a title V

operating permit shall submit to the

permitting authority a complete CAIR

permit application under § 96.222 for

the source covering each CAIR S02 unit.

at the source at least 18 months (or such

lesser time provided by the permitting

authority) before the later of January 1,

2010 or the date on which the CAIR S02

unit -commences operation.

(b) Duty to Reapply. For a CAIR SO 2

source required to have a title V

operating permit, the CAIR designated

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representative shall iubmit a 'complete

CAIR permit application under § 96.222

for the source covering each CAIR S02

unit at the source to renew -the CAIR

permit in accordance with the

permitting authority's title V operating

permits regulations addressing permit

renewal.

§ 96.222 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 of the CAIR SO 2

source;

(b) Identification of each CAIR SO 2

unit at the CAIR 802 source; and

(c) The standard requirements under

§ 96.206.

§96.223 CAIR permit contents and term.

(a) Each CAIR permit will contain, in

a format prescribed by the permitting

authority, all elements required for a

complete CAIR permit application

under § 96.222.

(b) Each CAIR permit is deemed to

incorporate automatically the

definitions of terms under § 96.202 and,

upon recordation by the Administrator

under subpart FFF, GGG, or III of this

part, every allocation, transfer, or

deduction of a CAIR SO 2 allowance to

or from the compliance account of the

CAIR SO 2 source covered by the permit.

(c) The term of the CAIR permit will

be set by the permitting authority, as

necessary to facilitate coordination of

the renewal of the CAIR permit with

issuance, revision, dr renewal of the

CAIR SO 2 source's title V operating

permit or other federally enforceable

permit as applicable.

§96.224 CAIR permit revisions.

Except as provided in § 96.223(b), the

permitting authority will revise the

CAIR permit, as necessary, in

accordance with the permitting.

authority's title V operating permits

regulations or the permitting authority's

regulations for other federally

.enforceable permits as applicable

addressing permit revisions.

Subpart DDD-[Reserved]

Subpart EEE--[Reserved]

Subpart FFF-CAIR SO 2 Allowance

Tracking System

§96.250 [Reserved] -

§ 96.251 Establishment of accounts.

(a) Compliance accounts. Except as

provided in § 96.284(e), upon receipt of

a complete certificate of representation

under § 96.213, the Administrator will

establish a compliance account for-the

CAIR SO 2 .source for which the

certificate of representation was

submitted, unless the source already has

a compliance account.

(b) General accounts-(1) Applicatidn

for general account.

(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 behalf of the CAIR

authorized account representative. The

agreement by which the alternate CAIR

authorized account representative is

selected shall include a procedure for

authorizing the alternate CAIR

authorized account representative to act

in lieu of the CAIR authorized account

representative.

(ii) A complete application for a

general account shall be submitted to

the Administrator and shall include the

following elements in a format

prescribed by the Administrator:

(A) Name, mailing address, e-mail

address (if any), telephone number, and

facsimile transmission number (if any)

of the CAIR authorized account.

-representative and any alternate CAIR

authorized account representative;

(B) Organization name and type of

organization, if applicable;

(C) A list of all persons subject to a

binding agreement for the CAIR

authorized account representative and

any alternate CAIR authorized account

representative to represent their

ownership interest with 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 2 Trading Program on behalf of

such persons and that each such person

shall be fully bound by my

representations, actions, inactions, or

submissions and by any order or

decision issued to me by the

Administrator or a court regarding the

general account."

(E) The signature of the CAIR

authorized account representative and

any alternate CAIR authorized account

representative and the dates. signed.

(iii) Unless otherwise.required by the

permitting authority or the

Administrator, documents of agreement

referred to in the application' for a

general account shall not be submitted

to the permitting authority or the

Administrator. Neither the permitting

authority nor the Administrator shall be

under any obligation to review or

evaluate the sufficiency of such

documents, if submitted.

(2) Authorization of CAIR authorized

account representative.

(i) Upon receipt by the Administrator

of a complete application for a general

account under paragraph (b)(1) of this

section:

(A) The Administrator will establish a

general account for the person or

persons for whom the application issubmitted.

(B) The CAIR authorized account

representative and. any alternate CAIR

authorized account representative for

the general account shall represent and,

by his or her representations, actions,

inactions, or submissions, legally bind

each person who has an ownership

interest with respect to CAIR SO 2

allowances hield in the general account

in all matters pertaining to the CAIR

SO 2 Trading Program, notwithstanding

any agreement between the CAIR

authorized account representative or

any alternate CAIR authorized account

representative and such person. Any

such person shall be bound by any order

or decision issued to the CAIR

authorized account representative or

any alternate CAIR authorized account

representative by the Administrator or a

court regarding the general account.

(C) Any representation, action,

inaction, or submission by any alternate

CAIR authbrized account representative

shall be deemed to be a representation,

action, inaction, or submission by the

CAIR authorized account representative.

(ii) Each submission concerning the

general account shall be submitted,

signed, and certified by the CAIR

authorized account representative or

any alternate CAIR authorized account

representative for the persons having an

ownership interest with respect to CAIR

S02 allowances held in the general

account. Each such submission shall

include the following certification

statement by the CAIR authorized

account representative or any alternate

CAIR authorized account representative:

"I am authorized to make this

submission on behalf of the persons

having an ownership interest with

respect to the CAIR S02 allowances held

r .... t .. . .. .. . .

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in the general account. I certify under

penalty of law that. I have personally

examined, and am familiar with, the

statements and information submitted

in this document and all its

attachments. Based on my inquiry of

those individuals with primary

responsibility for obtaining the

information, I certify-that the statements

and information are to the best of my

knowledge and belief true, accurate, and

complete. I am aware that there are

significant penalties for submitting false

statements and information or omitting

required statements and information,

including the possibility of fine or

imprisonment."

(iii) The Administrator will accept or

act on a submission concerning the

general account only if the submission

has been made, signed, and certified in

accordance with paragraph (b)(2)(ii) of

this section.

(3) Changing CAIR authorized

account representative and alternate

CAIR authorized account

representative; changes in persons with

ownership interest.

(i) The CAIR authorized account

representative for a general account may

be changed at any time upon receipt by

the Administrator of a superseding

complete application for a general

account under paragraph (b)(1) of this

section. Notwithstanding any such

change, all representations, actions,

inactions, and submissions by the

previous CAIR authorized account ,

representative before the time and date

when the Administrator receives the

superseding application for a general

account shall be binding on the new

CAIR authorized account representative

and the persons with an ownership

interest with respect to the CAIR S02

allowances in thegeneral account.

(ii) The alternate CAIR authorized

account representative for a general

account may be changed at any time

upon receipt by the Administrator of a superseding complete application for a

general account under paragraph (b)(1)

of this section. Notwithstanding any

such change, all representations,

actions, inactions, and submissions by

the previous alternate CAIR authorized

account representative before the time

and date when the Administrator

receives the superseding application for

a general account shall be binding on

the new alternate CAIR authorized •

account representative and the persons

with an ownership interest with respect

to the CAIR S02 allowances in the

general account.

(iii)(A) In the event a new person

having an ownership interest with.

respect to CAIR S02 allowances in the

general account is not included in the

list of suchrpersons in the application

for a general 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 of the CAIR

authorized account representative and

any alternate CAIR authorized account

representative of the account, and the

decisions and orders of the "

Administrator or a court, as if the 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

SO 2 allowances in the general account,

including the addition of persons, 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 SO 2 allowances in

the general account to include the

change.

(4) Objections concerning CAIR

authorized account representative.

(i) Once a complete application for a

general account under paragraph (b)(1)

of this section has been submitted and

received, the Administrator will rely on

the application unless and until a

superseding complete application for a

general account under paragraph (b)(1)

of this section is received by the

Administrator.

(ii) Except as provided in paragraph

(b)(3)(i) or (ii) of this section, no

objection or other communication

submitted to the Administrator

concerning the authorization, or any

representation, action, inaction, or

submissiorf of the CAIR authorized

account representative or: any

alternative CAIR authorized account

representative for a geneial account

shall affect any representation, action,

inaction, or submission of the CAIR

authorized account representative or

any alternative CAIR authorized account

representative or the finality of any

decision or order by the Administrator

under the CAIR SO 2 Trading Program.

(iii) The Administrator will not

adjudicate any private legal dispute

concerning the authorization or any

representation, action, inaction, or

submission of the CAIR authorized

account representative or any

alternative CAIRauthorized account

representative for a general account,

including private legal disputes

-concerning the proceeds of CAIR 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 Responsibilities of CAIR

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, but not limited to,

submissions concerning the deduction

or transfer of CAIR SO 2 allowances in

the account, shall be made only by the

CAIR authorized account representative

for the account.

§96.253 Recordation of CAIR SO2

allowances.

(a)(1) After a compliance account is

established under § 96.251(a) or

§ 73.31(a) or (b) of this chapter, the

Administrator will record in the

compliance account any CAIR S02

allowance allocated to any CAIR SO 2

unit at the source for each of the 30

years starting the later of 2010 or the

year in which the compliance account is

established and any CAIR SO 2

allowance allocated for each of the 30

years starting the later of 2010 or the

year in which the compliance account is

established and transferred to the source

in accordancewith subpart GGG of this

part or subpart D of part 73 of this

chapter.

(2) In 2011 and each year thereafter,

after Administrator has completed all

deductions under § 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 30 years 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

of this part or subpart D of part 73 of

this chapter.

(b)(1) After a general account is

established ufider § 96.251(b) or

§ 73.31(c) of this chapter, the

Administrator will record in thle general

account any CAIR SO 2 allowance

allocated for each of the 30 years

starting the later of 2010 or the year in

which the general account is established

and transferred to the general account in

accordance with subpart GGG of this

part or subpart D of part 73 of this

chapter.

(2) In 2011 and each year thereafter,

after Administrator has completed all

deductions under § 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

year that is 30 years after the calendar .

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year for which such deductions are or

could be made) and transferred to the

general account in accordance with

subpart GGG of this part or subpart D of

part 73 of this chapter.

(c) Serial numbers for allocated CAIR

S02 allowances. When recording the

allocation of CAIR 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 of the control

period for which the CAIR S02

allowance is allocated.

§96.254 Compliance with CAIR SO2

emissions limitation.

(a) Allowance transfer deadline. 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 if the CAIR SO 2 allowances:

(1) Were allocated for the control

period in the year or a prior year;

(2) Are held in the compliance

account as of the allowance transfer

deadline for the control period or are

transferred into the compliance account

by a CAIR S02 allowance transfer

correctly submitted for recordation

under § 96.260 by the allowance transfer

deadline for the control period; and

(3) Are not necessary for deduction

for excess emissions for a prior control

period under paragraph (d) of this

section or for deduction under part 77

of this chapter.

(b) Deductions for compliance.

Following the recordation, in

accordance with § 96,261, of CAIR 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) of this section in order to determine

whether the source meets the CAIR SO 2

emissions limitation for the control

period as follows:

(1) For a CAIR SO 2 source subject to

an Acid Rain emissions limitation, the

Administrator will, in the following

order:

(i) Deduct the amount of CAIR SO 2

allowances, available under paragraph

(a) of this section and not issued 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 will be treated

as satisfying the requirements of

§§ 73.35(b) and (c) of this chapter.

(ii) Deduct the amount of CAIR SO 2

allowances, available under paragraph

(a) of this section and not issued by a

permitting authority under § 96.288,

that is required under §§ 73.35(d) and

77.5 of this 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 of this 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) of this 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:

(A) Until the tonnage equivalent of

the CAIR SO 2 allowances deducted

equals, or exceeds in accordance with

paragraphs (c)(1) and (2) of this section,

the number of tons of total sulfur

dioxide emissions, determined in

accordance with subpart HHH of this

part, from all CAIR SO 2 units at the

source for the control period; or

(B) If there are insufficient CAIR S02

allowances to complete the deductions

in paragraph (b)(1)(iii)(A) of this section,

until no moretCAIR SO 2 allowances

available under paragraph (a), of this

section (including any issued by a

permitting authority under § 96.288)

remain in the compliance account. * (2) For a CAIR S02 source not subject

to an Acid Rain emissions limitation,

the Administrator will deduct CAIR SO 2

allowances available under paragraph

(a) of this 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 of the

CAIR SO 2 allowances deducted equals,

or exceeds in accordance with

paragraphs (c)(1) and (2) of this section,

the number of tons of total sulfur

dioxide emissions, determined in

accordance with subpart HHH of this

part, from all CAIR -SO2 units at the

source for the control period; or (ii) If there are insufficient CAIR SOY

allowances to complete the deductions

in paragraph (b)(2)(i) of this section,

until no more CAIR SO 2 allowances

available under paragraph (a) of this

section (including any issued by a

permitting authority under § 96.288)

remain in the compliance account.

(c)(1) Identification of CAIR S02

allowances by 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) of this section. Such

request shall be submitted to the '

Administrator by the allowance transfer

deadline for the control period and

include, in a format prescribed by the

Admihistrator, the identification of the

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 or in the case of a

partial identification of CAIR SO 2

allowances by serial number under

paragraph (c)(1) of this section, on a

first-in, first-out (FIFO) accounting basis

in the following order:

• (i) Any CAIR SO 2 allowances that

were allocated to the units at the source -

for a control period before 2010, in the

order of recordation;

(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 of this part or

subpart D of part 73 of this chapter, in

the order of recordation;

(iii) Any CAIR SO 2 allowances that

were allocated to the units at the source

for a control period during 2010 through

2014, in the order of recordation;

(iv) Any CAIR SO 2 allowances that

were allocated to any unit for a control

period during 2010 through 2014 and

transferred and recorded in the

compliance account pursuant to subpart

GGG of this part or subpart D of part 73

of this chapter, in the order of

recordation;

(v) Any CAIR SO 2 allowances that

were allocated to the units at the source

for a control period in 2015 or later, in

the order of recordation; and

(vi) Any CAIR SO 2 allowances that

were allocated to any unit for a control

period in 2015 or later and transferred

and recorded in the compliance account

pursuant to subpart GGG of this part or

subpart D of part 73 of this chapter, in

the order of recordation.

(d) Deductions for excess emissions.

(1) After making the deductions for

compliance under paragraph (b) of this

section for a control period in a calendar

year in which the CAIR S0 2 source has

excess emissions, the Administrator 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

of tons of the source's excess emissions.

(2) Any allowance deduction required

under paragraph (d)(1) of this section

shall not affect the liability of the

owners and operators of the CAIR SO 2

source or the CAIR SO 2 units at the

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) Recordation of deductions. The

Administrator will record in the

appropriate compliance account all

deductions from such an account under

paragraph (b) or (d) of this section.

(f) Administrator's action on

submissions. (1) The Administrator may

review and conduct independent audits

concerning any submission under the

CAIR SO 2 Trading Program and make

appropriate adjustments of the -

information in the submissions.

(2) The Administrator may deduct

CAIR S02 allowances from or transfer

CAIR S02 allowances to a source's

compliance account based on the

information in the submissions, as

adjusted under paragraph (f)(1) of this

section.

§96.255 Banking.

(a) CAIR SO 2 allowances may be

banked for future use or transfer in a

compliance account or a general

account in accordance with paragraph

(b) of this section.

(b) Any CAIR SO2 allowance that'is

held in a compliance account or a

general account will remain in such

account unless and until the CAIR SO 2

allowance is deducted or transferred

under § 96.254, § 96.256, or subpart

GGG of this part.

§96.256 Account error.

The Administrator may, at his or her

sole discretion and on his or her own

motion, correct any error in any CAIR

SO 2 Allowance Tracking System

account. Within 10 business 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 in the account to one or

more other CAIR SO 2 Allowance.

Tracking System accounts.

(b) If a general account has no

allowance transfers in or out of the

account for a 12-month period or longer

and does not contain any CAIR 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 will be closed after the 20-

day period unless, before the end of the

20-day period, the Administrator

receives a correctly submitted transfer of

CAIR SO 2 allowances into the account

under § 96.260 or a statement submitted

by the CAIR authorized account

representative demonstrating. to the

satisfaction of the Administrator good

cause as to why the account should not

be closed.

Subpart GGG--CAIR SO2 Allowance

Transfers

§96.260 Submission of CAIR S02

allowance transfers.

(a) A CAIR authorized account

representative seeking recordation of a

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 of both the

transferor and transferee accounts;

(2) The serial number of each CAIR

SO 2 allowance that is in the transferor

account and is to be transferred; and

(3) The name and signature of the

CAIR authorized account

representatives of the transferor and

transferee accounts and the dates

signed.

(b)(1) The CAIR authorized account

representative for the transferee account

can meet the requirements in paragraph

(a)(3) of this section by submitting, in a

format prescribed by the Administrator,

a statement signed by the CAIR

authorized account representative and

identifying each account into which any

transfer of allowances, submitted on or

after the date on which the

Administrator receives such statement,

is authorized. Such authorization shall

be binding on any CAIR authorized

afount representative for such account.

and shall apply to all transfers into the

account that are submitted on or after

such date of receipt, unless and until

the Administrator receives a statement

signed by the CAIR authorized account

representative retracting the

authorization for the account.

(2) The statement under paragraph

(b)(1) of this section shall include the

following: "By this signature I authorize

any transfer of allowances into each

account listed herein, except that I do

not waive any remedies under State or

Federal law to obtain correction of any

erroneous transfers into such accounts.

This authorization shall be binding on

any CAIR authorized account

representative for such account unless

and until a statement signed by the

CAIR authorized account representative

retracting this authorization for the

account is received by the

Administrator."

§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) of this

section) of receiving 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 in the 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 not be 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 S02 allowance

transfer submitted for recordation fails

to meet the requirements of paragraph

(a) of this section-, the Administrator

will not record such transfer.

§96.262 Notification.

(a) Notification of recordation. Within

5 business days of recordation of a 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 10 business days of receipt 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 of a 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, the CAIR designated

representative, of a CAIR S02 unit, shall

comply with the monitoring,

recordkeepihg, and reporting

requirements as provided in this subpart

and in subparts F and G of part 75 of

this chapter. For purposes of complying

.with such requirements, the definitions

in § 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 of this

chapter shall be 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 of a unit that is not a CAIR S02

unit but that is monitored under

5 75.16(b)(2) of this chapter shall

comply with the same monitoring,

recordkeeping, and reporting

requirements as a CAIR SO 2 unit.

(a) Requirements for installation,

certification, and data accounting. The

owner or operator of each CAIR SO 2

unit shall:

(1) Install all monitoring systems

required under this subpart for

monitoring S02 mass emissions and

individual unit heat input (including all

systems required to monitor S02

concentration, stack gas moisture

content, stack gas flow rate, C0 2 or 02

concentration, and fuel flow rate, as

applicable, in accordance with §§ 75.11

and 75.16 of this chapter);

(2) Successfully complete all

certification tests required under

§ 96.271 and meet all other

requirements of this subpart and part 75

of this chapter applicable to the

monitoring systems under paragraph

(a)(1) of this section; and

(3) Record, report, and quality-assure

the data from the monitoring systems

under paragraph (a)(1) of this section.

(b) Compliance deadlines. The owner

or operator shall meet the monitoring

system certification and other

requirements of paragraphs (a)(1) and

(2) of this section on or before the

following dates. The owner or operator

shall record, report, and quality-assure

the data from the monitoring systems

under paragraph (a)(1) of this section on

-and after the following dates.

(1) For the owner or operator of a

CAIR SO 2 unit that commences

commercial operation before July 1,

2008, by January 1, 2009.

(2) For the owner or operator of a

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) For the owner or operator of a

CAIR S02 unit for which construction of

a new stack or flue or installation of

add-on SO 2 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) of this section,

for the owner or operator of a unit for

which a CAIR opt-in permit application

is submitted and not withdrawn and a

CAIR opt-in permit is not yet issued or

denied under subpart III of this part, by

the date specified in 96.284(b).

(5) Notwithstanding the dates in

paragraphs (b)(1) and (2) of this section

and solely for purposes of § 96.206(c)(2),

for the owner or operator of a CAIR S02

opt-in unit under subpart III of this.part,

by the date on which the CAIR SO 2 optin unit enters the CAIR S02 Trading

Program as.provided in § 96.284(g).

(c) Reporting data. (1) Except as

provided in paragraph (c)(2) of this

section, the owner or operator of a CAIR

S02 unit that does not meet the

applicable compliance date set forth in

paragraph (b) of this section for any

monitoring system under paragraph

(a)(1) of this section shall, for each such

monitoring system, determine, record,

and report maximum potential (or, as

appropriate, minimum potential) values

for 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 of appendix

*D to part 75 of this chapter, as

applicable.

(2) The owner or operator of a CAIR

S02 unit that does not meet the

applicable compliance date set forth in

paragraph (b)(3) of this section for any

monitoring system under paragraph

(a)(1) of this section shall, for each such

monitoring system, determine, record,

and report substitute data using the

applicable missing data procedures in

subpart D of or appendix D to part 75

of this chapter, in lieu of the maximum

potential (or, as appropriate, minimum

potential) values, for a parameter if the

owner or operator demonstrates that

there is continuity between the data

streams for that parameter before and

after the construction or installation

under paragraph (b)(3) of this section.

(d) Prohibitions. (1) No owner or

operator of a 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 of a 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 of this subpart

and part 75 of this chapter.

(3) No owner or operator of a 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 of this

subpart and part 75 of this chapter.

(4) No owner or operator of a CAIR

S02 unit shall retire or permanently

discontinue use of the continuous

emission monitoring system, any

component thereof, or any other

approved monitoring system under this

subpart, except under any one of the

following circumstances:

(i) During the period that the unit is

covered by an exemption under § 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 of this subpart

and part 75 of this 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 of certification testing of a

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 certification and

recertification procedures.

(a) The owner or operator of a CAIR "

S02 unit shall. be exempt from the initial

certification requirements of this section

for a monitoring system under

§ 96.2 70(a)(1) if the following conditions

are met:

(1) The monitoring system has been

previously certified in accordance with

part 75 of this chapter; and

.(2) The applicable quality-assurance

and quality-control requirements of

§ 75.21 of this chapter and appendix B

and appendix D to part 75 of this

chapter are fully met for the certified

monitoring system described in

paragraph (a)(1) of this section.

(b) The recertification provisions of

this section shall apply to a monitoring

system under § 96.270(a)(1) exempt

from initial certification requirements

under paragraph (a) of this section.

(c) If the Administrator has previously

approved a petition 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 of this chapter for

an alternative to a requirement in

§ 75.11 or § 75.16 of this 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) of this section, the owner or operator

of a 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 of this

chapter) under § 96.270(a)(1). The

owner or operator of a 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 of part 75 of this chapter shall

comply with the procedures in

-paragraph (e) or (f) of this section

respectively. -

(1) Requirements for initial

certification. The owner or operator

shall ensure that each continuous

monitoring system under §.96.270(a)(1)

(including the automated data

acquisition and handling system)

successfully completes all of the initial

certification testing required under

§ 75.20 of this chapter by the applicable

deadline in § 96.270(b). In addition,

whenever the owner or operator installs

a monitoring system to meet the

requirements of this subpart in a

location where no such monitoring

system was previously installed, initial

certification in accordance with § 75.20

of this chapter is required.

(2) Requirements for recertification.

Whenever the owner or operator makes

a replacement, modification, or change

in any certified continuous emission

monitoring system under § 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 meet the quality-assurance and

quality-control requirements of § 75.21

of this chapter or appendix B to part 75

of this chapter, the owner or operator

shall recertify the monitoring system in

accordance with § 75.20(b) of this

chapter. Furthermore, whenever the

owner or operator makes a replacement,

modification, or change to the flue gas

handling system or the unit's operation

that may significantly change the stack

flow or concentration profile, the owner

or operator shall recertify each

continuous emission monitoring system

whose accuracy is potentially affected

by the change, in accordance with

§ 75.20(b) of this chapter. Examples of

changes to a continuous emission

monitoring system that require

recertification include: Replacement of

the analyzer, complete replacement of

an existing continuous emission

monitoring system, or change in

location or orientation of the sampling

probe or site. Any fuel flowmeter system

under § 96.2 70(a)(1) is subject to the

recertification requirements in

§ 75.20(g)(6) of this chapter.

(3) Approval process for initial

certification and recertification.

Paragraphs (d)(3)(i) through (iv) of this

section apply to both initial certification

and recertification of a continuous

monitoring system under § 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 of the procedures in

paragraph (d)(3)(v) of this section.

(i) Notification of certification. The

CAIR designated representative shall

submit to the permitting authority, the

appropriate EPA Regional Office, and

the Administrator written notice of the

dates of certification testing, in

accordance with § 96.273.

(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 informationspecified in § 75.63 of

this chapter.

(iii) Provisional certification date. The

provisional certification date for a

monitoring system shall be determined

in accordance with § 75.20(a)(3) of this

chapter. A provisionally certified

monitoring system may be used under

the CAIR SO 2 Trading Program for a

period not to 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 of part 75 of this chapter,

will be considered valid quality-assured

data (retroactive to the date and time of

provisional certification), provided that

the permitting authority does not

invalidate the provisional certification

by issuing_a notice of disapproval

within 120 days of the date of receipt of

the complete certification application by

the permitting authority.

(iv) Certification application approval

process. The permitting authority will

issue a written notice of approval or

disapproval of the certification

application to the owner or operator

within 120 days of receipt of the

complete certification -application under

paragraph (d)(3)(ii) of this section. In the

event the 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 of this chapter

and is included in the certification

application will be deemed certified for

use under the CAIR S02 Trading

Program.

(A) Approval notice. If the

certification application is complete and

shows that each monitoring system

meets the applicable performance

requirements of part 75 of this chapter,

then the permitting authority will issue

a written notice of approval of the

certification application within 120

days of receipt.)

(B) Incomplete application notice If

the certification application is not

complete, then the 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) of this section. The 120-day

review period shall not begin before

receipt of a complete certification

application.

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(C) Disapproval notice. If the

certification application shows that any

monitoring system does not meet the

performance requirement& of part 75 of

this chapter or if the certification

application is incomplete and the

requirement for disapproval under

paragraph (d)(3)(iv)(B) of this section is

met, then the permitting authority will

issue a written notice of disapproval of

the certification application. Upon .

issuance of such notice of disapproval,

the provisional certification is

invalidated by the 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 of provisional certification (as

defined under § 75:20(a)(3) of this

chapter). The owner or operator shall

follow the procedures for loss of

certification in paragraph (d)(3)(v) of

this section for each monitoring system

-that is disapproved for initial

certification.

(D) Audit decertification. The

permitting authority or, for a CAIR S02

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 not yet issued or denied under

subpart III of this part, the

Administrator may issue a notice of

disapproval of the certification status of

a monitor in accordance with

§ 96.272(b).

(v) Procedures for loss of certification.

If the permitting authority or the

Administrator issues a notice of

disapproval of a certification

application under paragraph

(d)(3)(iv)(C) of this section or a notice of

disapproval of certification status under

paragraph (d)(3)(iv)(D) of this section,

then:

(A) The owner or operator shall

substitute the following values, for each

disapproved monitoring system, for

each hour of unit operation during the

period of invalid data specified under

§ 75.20(a)(4)(iii), § 75.20(g)(7), or

§ 75.21(e) of this chapter and continuing

until the applicable date and hour

specified under § 75.20(a)(5)(i) or (g)(7)

of this 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 of this

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 of this chapter.

(3) For a disapproved fuel flowmeter

system, the maximum potential fuel

flow rate, as defined in section 2.4.2.1

of appendix D to part 75 of this chapter.

(B) The CAIR designated

representative shall submit a

notification of certification retest dates

and a new certification application in

accordance with paragraphs (d)(3)(i) and

(ii) of-this section.

(C) The owner or operator shall repeat

all certification tests or other

requirements that were failed by the

monitoring system, as indicated in the

permitting authority's or the

Administrator's notice of disapproval,

no later than 30 unit operating days

after the date of issuance of the notice

of disapproval:.

(e) Initial certification and

recertification procedures for units

using the low mass emission excepted

methodology under § 75.19 of this

chapter. The owner or operator of a unit

qualified to use the low mass emissions

(LME) excepted methodology under

§ 75.19 of this chapter shall meet the

applicable certification and

recertification requirements in

§§ 75.19(a)(2) and 75.20(h) of this

chapter. If the owner or operator of such

a unit elects to certify a fuel flowmeter

system for heat input determination, the

owner or operator shall also meet thecertification and recertification

requirements in § 75.20(g) of this

chapter.

(f) Certification/recertification.

procedures for alternative monitoring

systems. The CAIR designated

representative of each unit for which the

owner or operator intends to use an

alternative monitoring system approved

by the Administrator and, if applicable,

the permitting authority under subpart E

of part 75 of this chapter shall comply

with the applicable notification and

application procedures of §75.20(f) of

this chapter.

§ 96.272 Out of control periods.

(a) Whenever any monitoring system

fails to meet the quality-assurance and

quality-control requirements or data

validation requirements of part 75 of

this chapter, data shall be substituted

using the applicable missing data

procedures in subpart D of or appendix

D to part 75 of this chapter.

(b) Audit decertification. Whenever

both an audit of a monitoring system

and a review of the initial certification

or recertification application reveal that

any monitoring system should not have

been certified o r'recertified because it

did not meet a particular performance

specification or other requirement under

§ 96.271 or the applicable provisions of

part 75 of this chapter, both at the time

of the initial certification or

recertification application submission

and at the time of the audit, the

permitting authority or, for a CAIR S02

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 not yet issued or denied under

subpart III of this part, the

Administrator will issue a notice of

disapproval of the certification status of

such monitoring system. For the

purposes of this paragraph, an audit

shall be either a field audit or an audit

of any information submitted to the

permitting authority or the

Administrator. By issuing the notice of

disapproval, the permitting authority-or

the Administrator revokes prospectively

the certification status of the monitoring

system. The data measured and

recorded by the monitoring system shall

not be considered valid quality-assured

data from the date of issuance of the

,notification of the revoked certification

status until the date and time that the

owner or operator completes

subsequently approved initial

certification or recertification tests for

the monitoring system. The owner or

operator shall follow the applicable

initial certification or recertification

procedures in § 96.271 for each

disapproved monitoring system.

§ 96.273 Notifications.

The CAIR designated representative

for a CAIR S02 unit shall submit written

notice to the permitting authority and

the Administrator in accordance with

§ 75.61 of this chapter, except that if the

unit is not subject to an Acid Rain

emissions limitation, the notification is

only required to be sent to the

permitting authority.

§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 of part

75 of this chapter, and the requirements

of § 96.210(e)(1).

(b) Monitoring plans. The owner or

operator of a CAIR S02 unit 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 of this part,

§§ 96.283 and 96.284(a).

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(c) Certification applications. 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

§ 96.2 71, including the information

required under § 75.63 of this chapter.

(d) Quarterly reports. The CAIR

designated representative shall submit

quarterly reports, as follows:

(1) The CAIR designated

representative shall report the 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 unit that commences

commercial operation on or after July 1,

2008, the calendar quarter

corresponding to the earlier of the date

of provisional certification or the.

applicable deadline for initial

certification under § 96.270(b), unless

that quarter is the third or fourth quarter

of 2008, 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 report to the Administrator

within 30 days following the end of'the

calendar quarter covered by the report.

Quarterly reports shall be submitted in

the manner specified in § 75.64 of this

chapter.

(3) For CAIR S02 units that are also

subject to an Acid Rain emissions

limitation or the CAIR NOx Annual

Trading Program or CAIR NOx. Ozone

SeasoI! Trading Program, quarterly

reports shall include the applicable data

and information required by subparts F

through H of part 75 of this chapter as

applicable, in addition to the SO 2 mass

emission data, heat input data, and

other information required by this

subp art.

(e) Compliance certification. The

CAIR designated representative shall

submit to the Administrator a

compliance certification (in a format

prescribed by the Administrator) in

support of each quarterly report based

on reasonable inquiry of those persons

with primary responsibility for ensuring

that all of the unit's emissions are

correctly and fully monitored. The

certification shall state that:.

(1) The monitoring data submitted

were recorded in accordance with the

applicable requirements of this subpart

and part 75 of this chapter, including

the quality assurance procedures and

specifications; and

(2) For a unit with add-on SO 2

emission controls and for all hours

where SO 2 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 B to part 75 of this

chapter and the substitute data values

do not systematically underestimate SO 2

emissions.

§ 96.275 Petitions.

(a) The CAIR designated

representative of a CAIR SO 2 unit that

is subject to an Acid Rain emissions

limitation may submit a petition under

§ 75.66 of this chapter to the

Administrator requesting approval to

apply an alternative to any requirement

of this subpart. Application of an

alternative to any requirement of this

subpart is in accordance with this

subpart only to the extent that the

petition is approved in writing by the

Administrator, in consultation with the

permitting authority.

(b) The CAIR designated

representative of a CAIR S02 unit that

is not subject to an Acid Rain emissions

limitation may submit a petition under

§ 75.66 of this chapter to the permitting

authority and the Administrator

requesting approval to apply an

alternative to any requirement of this

subpart. Application of an alternative to

any requirement of this subpart is in

accordance with this subpart only to the

extent that the petition is approved in

writing by both the permitting authority

and the Administrator.

§96.276 Additional requirements to

provide heat Input data.

The owner or operator of a CAIR SO 2

unit that monitors and reports SO 2 mass

emissions using a SO 2 concentration

system and a flow system shall also

monitor and report heat input rate at the

unit level using'the procedures set forth

in part 75 of this 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 a retired

unit exemption under § 96.205 that is in

effect;

(c) Is not covered by a retired unit

exemption under § 72.8 of this chapter

that is in effect and is not an opt-in

source under part 74 of this chapter;

(d) Has or is required or qualified to

have a title V operating permit or other

federally enforceable permit; and

(e) Vents all of its emissions to a stack

and can meet the monitoring,

recordkeeping, and reporting

requirements of subpart HHH of this

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 S02 unit for

purposes of applying such sections and

subparts of this part.

(b) Solely for purposes of applying, as

provided in this subpart, the

requirements of subpart HHH of this

part to a unit for which a CAIR opt-in

permit application is submitted and not

withdrawn and a CAIR opt-in permit is

not yet issued or denied under this

subpart, such unit shall be treated as a

CAIR SO 2 unit before issuance of a CAIR

opt-in permit for such unit.

§96.282 CAIR designated representative.

Any CAIR S0 2 opt-in unit, and any

unit for which a CAIR opt-in permit

application is submitted and not

withdrawn and a CAIR opt-in permit is

not yet issued or denied under this

subpart, located at the same source as

one or more CAIR S02 units shall have

the same CAIR designated

representative 'and alternate CAIR

designated representative as such CAIR

S02 units.

§96.283 Applying for CAIR opt-in permit.

(a) Applying for initial CAIR opt-in

permit. The CAIR designated

representative of a unit meeting the

requirements for a CAIR 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 order to 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 a retired unit

exemption under § 72.8 of this chapter

that is in effect;

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

a CAIR opt-in unit, will not become, an

opt-in source under part 74 of this

chapter;

(iv) Vents all of its emissions to a

stack; and

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(v) Has documented heat input for

more than 876 hours during the 6

months immediately preceding

submission of the CAIR permit

application under § 96.222;

(3) A monitoring plan in accordance

with subpart HHH of this part;

(4) A complete certificate of

representation under § 96.213 consistent

with § 96.282, if no CAIR designated

representative has been previously

designated for the source that includes

the unit; and

(5) A statement, in a format specified

by the permitting authority, whether the

CAIR designated representative requests

that the unit be allocated CAIR SO 2

allowances under § 96.288(p) (subject to

the conditions in §§ 96.284(h) and

96.286(g)).

(b) Duty to reapply. (1) The CAIR

designated representative of a CAIR SO 2

opt-in unit shall submit a complete

CAIR permit application under § 96.222

to renew the CAIR opt-in unit 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 a notification of acceptance of

withdrawal of the CAIR opt-in unit from

the CAIR SO 2 Trading Program in

accordance with § 96.286 or the unit

becomes a CAIR SO 2 unit under

§ 96.204, the CAIR S02 opt-in unit shall

remain subject to the requirements for a

CAIR SO 2 opt-in unit, even if the CAIR

designated representative for the CAIR

SO 2 opt-in unit fails to submit a CAIR

permit application that is required for

renewal of the CAIR opt-in permit under

paragraph (b)(1) of this section.

§ 96.284 Opt-In process.

The permitting authority will issue or

deny a CAIR opt-in permit for a unit for

which an initial application for a CAIR

opt-in permit under § 96.283 is

submitted in accordance with the

following:

(a) Interim review of monitoring plan.

The permitting authority and the

Administrator will determine, on an

interim basis, the sufficiency of the.

monitoring plan accompanying the

initial application for a CAIR opt-in

permit under § 96.283. A monitoring

plan is sufficient, for purposes of

interim review, if the plan appears to

contain information demonstrating that

the SO 2 emissions rate and heat input of

the unit are monitored and reported in

accordance with subpart HHH of this

part. A determination of sufficiency

shall not be construed as acceptance or

approval of the monitoring plan.

(b) Monitoring and reporting. (1)(i) If

the permitting authority and the

Administrator determine that the

monitoring plan is sufficient under

paragraph (a) of this section, the owner

or operator shall monitor and report the

SO 2 emissions rate and the heat input of

the unit and all other applicable

parameters, in accordance with subpart

HHH of this part, starting on the date of

certification of the appropriate

monitoring systems under subpart HHH

of this part and continuing until a CAIR

opt-in permit is denied under § 96.284(f)

or, if a 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) of this section

shall include the entire control period

immediately before the date on which

the unit enters the CAIR SO 2 Trading

Program under § 96.284(g), during

which period monitoring system

availability must not -be less than 90

percent under subpart HHH of this part

and the unit must be in full compliancewith any applicable State or Federal

emissions or emissions-related

requirements.

(2) To the extent the SO 2 emissions

rate and the heat input of the unit are

monitored and reported in accordance

with subpart HHH of this part for one

or more control periods, in addition to

the control period under paragraph

(b)(1)(ii) of this section, during which

control periods monitoring system

availability is not less than 90 percent

under subpart HHH of this part and the

unit is in full compliance with any

applicable State or Federal emissions or

emissions-related requirements and

which control periods begin not more

than 3 years before the unit enters the

CAIR S02 Trading Program under

§ 96.284(g), such information shall be

used as provided in paragraphs (c) and

(d) of this section.

(c) Baseline heat input. The unit's

baseline heat rate shall equal:

(1) If the unit's S02 emissions rate and

heat input are monitored and reported

for only one control period, in

accordance with paragraph (b)(1) of this

section, the unit's total heat input (in

mmBtu) for the control period; or

(2) If the unit's 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) of this section, the average of the

amounts of the unit's total heat input (in

mmBtu) for the control period under

paragraph (b)(1)(ii) of this section and

the control periods under paragraph

(b)(2) of this section.

(d) Baseline S0 2 emission 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) of this

section, the unit's SO 2 emissions rate (in

lb/mmBtu) for the control period;

(2) If the 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) of this section, and the unit does not

hav)e add-on S02 emission controls

during any such control periods, the

average of the amounts of the unit's SO 2

emissions rate (in lb/mmBtu) for the

control period under paragraph (b)(1)(ii)

of this section and the control periods

under paragraph (b)(2) of this section; or

(3) If the 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) of this section, arid the unit has addon S02 emission controls during any

such control periods, the average of the

amounts of the unit's SO 2 emissions rate

(in lb/mmBtu) for such control period

during which the unit has add-on S02

emission controls.

(e) Issuance of CAIR opt-in permit.

After calculating the baseline heat input

and the baseline S02 emissions rate for

the unit under paragraphs (c) and (d) of

this section and if the permitting

authority determines that the CAIR

designated representative shows that.the

unit meets the requirements for a CAIR

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 a copy of the

CAIR opt-in permit to the

Administrator, who will then establish

a compliance account for the source that

includes the CAIR S02 opt-in unit

unless the source already has a

compliance account.

(f) Issuance of denial of CAIR opt-in

permit. Notwithstanding paragraphs (a)

through (e) of this section, if at any time

before issuance of a CAIR opt-in permit

for the unit, the permitting authority

determines that the CAIR designated

representative fails to show that the unit

meets.the requirements for a CAIR S02

opt-in unit in § 96.280 or meets the

elements certified in § 96.283(a)(2), the

permitting authority will issue a denial

of a CAIR S02 opt-in permit for the unit.

(g) Date of entry into 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 of the later of January 1, 2010

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or January 1 of the first control period

during which such CAIR opt-in permit

is issued.

(h) Repowered CAIR S02 opt-in unit.

(1) If CAIR designated representative

requests, and the permitting authority

issues a CAIR opt-in permit providing

for, allocation to a CAIR SO 2 opt-in unit

of CAIR SO 2 allowances under

§ 96.288(c) and such unit is repowered

after its date of entry into the CAIR S02

Trading Program under paragraph (g) of

this section, the repowered unit shall be

treated as a CAIR S02 opt-in unit

replacing the original CAIR S02 opt-in

unit, as of the date of start-up of the

repowered unit's combustion chamber.

(2) Notwithstanding paragraphs (c)

and (d) of this section, as of the date of

start-up under paragraph (h)(1) of this

section, the repowered unit shall be

deemed to have the same date of

coimmencement of operation, date of

commencement of commercial

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 of the

unit must comply with, the

requirements of § 96.287.

(b) Each CAIR opt-in permit is

deemed to incorporate automatically the

definitions of terms under § 96.202 and,

upon recordation by the Administrator

under subpart FFF or GGG of this part

or this subpart, every allocation,

transfer, or deduction of CAIR SO 2

allowances to or from the compliance

account of the source that includes a

CAIR S02 opt-in unit covered by the

CAIR opt-in permit.

§96.286 Withdrawal from CAIR SO2 Trading Program.

Except as provided under paragraph

(g) of this 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 of the CAIR S02 opt-in

unit of the acceptance of the withdrawal

of the CAIR SO 2 opt-in unit in

accordance with paragraph (d) of this

section.

(a) Requesting withdrawal. In order to

withdraw a CAIR opt-in unit from the

CAIR S02 Trading Program, the CAIR

designated representative of the CAIR

S02 opt-in unit shall submit to the

permitting authority a request to

withdraw effective as of midnight of

December 31 of a specified calendar

year, which date must be at least 4 years

after December 31 of the year of entry

into the CAIR 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 for withdrawal. Before

a CAIR S02 opt-in unit covered by a

request under paragraph (a) of this

section may withdraw from the CAIR

S02 Trading Program and the CAIR optin permit may be terminated under

paragraph (e) of this section, the

following conditions must be met:

(1) For the control period ending on

the date on which the withdrawal is to

be effective, the source that includes the

CAIR 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 of the 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.

If there 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 a CAIR S02

allowance transfer for any remaining

•CAIR S02 allowances to another CAIR

S02 Allowance Tracking System in

accordance with subpart GGG of this

part.

(c) Notification. (1) After the

requirements for withdrawal under

paragraphs (a) and (b) of this section are

met (iicluding deduction of the full

amount of CAIR SO 2 allowances

required), the permittifig authority will

issue a notification to the-CAIR

designated representative of the CAIR

S02 opt-in unit of the acceptance of the

withdrawal of the CAIR S02 opt-in unit

as of midnight on December 31 of the

calendar year for which the withdrawal

was requested.

(2) If the requirements for withdrawal

under paragraphs (a) and (b) of this

section are not met, the permitting

authority will issue a notification to the

CAIR designated representative of the

CAIR 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) Permit amendment. After the

permitting authority issues a

notification under paragraph (c)(1) of

this section that the requirements for

withdrawal have been met, the

permitting authority will revise the

CAIR permit covering the CAIR S02 optin unit to terminate the CAIR opt-in

permit for such unit as of the effective

date specified under paragraph (c)(1) of

this section. The unit shall continue to

be a CAIR SO 2 opt-in unit until the

effective date of the 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 if such requirements arise or

must be complied with after the

withdrawal takes effect.

(e) Reapplication upon failure to meet'

conditions of withdrawal. If the

permitting authority denies the CAIR

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)

of this section.

(f) Ability to reapply to the CAIR

S02 Trading Program. 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 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 fora CAIR optin permit under § 96.284.

(g) Inability to withdraw.

Notwithstanding paragraphs (a) through

(f) of this 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 of CAIR S02

allowances under § 96.288(c).

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§ 96.287 Change In regulatory status. (a) Notification. If a 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 of such change in the

CAIR.SO 2 opt-in unit's regulatory'status,

within 30 days of such change.

(b) Permitting authority's and

Administrator's actions. (1) If a CAIR

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 of a CAIR permit under

§ 96.223 as of the 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 of the

source that includes a CAIR S02 opt-in

unit that becomes a CAIR SO 2 unit

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-in unit becomes a CAIR S02 unit

under § 96.204; and

(B) -If the date on which the CAIR S02

opt-in unit becomes a CAIR SO 2 unit

under § 96.204 is not December 31, the

CAIR S02 allowances allocated to the

CAIR S02 opt-in unit under § 96.288 for

the control period that includes the date

on which the CAIR S02 opt-in unit

becomes a CAIR S02 unit under

§ 96.204, multiplied by the ratio of the

number of days, in the control period,

starting with the date on which the

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 of the 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)

of this 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 of CAIR

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) of this section, if the date on

which the CAIR S02 opt-in unit

becomes a CAIR S02 unit under

§ 96.204 is not January 1, the following

number of CAIR 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 of CAIR 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 of the number of days,

in the control period, starting with the

date on which the CAIR S02 opt-in unit

becomes a CAIR 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 allocations to

CAIR SO2 opt-In units.

(a) Timing requirements. (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 submit to the

Administrator the allocation for the

control period in which a CAIR S02 optin unit enters the CAIR S02 Trading

Program under § 96.284(g), in

accordance with paragraph (b) or (c) of

this section.

(2) By no later than October 31 of the

control period in which a CAIR opt-in

.unit enters the CAIR S02 Trading

Program under § 96.284(g) and October

31 of each 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) of this section.

.(b) Calculation of allocation. 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 of this part, for the

immediately prior control period,

except when the allocation is being

calculated for the control period in

which the CAIR S02 opt-inunit enters

the CAIR S02 Trading Program under

§ 96.284(g).

(2) The S02 emission rate (in lb/

mmBtu) used for calculating CAIR S02

allowance allocations will be 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 S02 opt-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) of this section,

multiplied by the S02 emission rate

under paragraph (b)(2) of this section,

and divided by 2,000 lb/ton.

(c) Notwithstanding paragraph (b) of

this section and if the CAIR designated

representative requests, and the

permitting authority issues a CAIR optin permit providing for, allocation to a

CAIR S02 opt-in unit of CAIR 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 (in mmBtu) usedfor

calculating CAIR S02 allowance

allocations will be determined as

described in paragraph (b)(1) of this

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 (in lb/

mmBtu) determined under § 96.284(d);

or

(B) The most stringent State or

Federal S02 emissions 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) of this section,

multiplied by the S02 emission rate

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under paragraph (c)(1)(ii) of this section,

and divided by 2,000 lb/ton.

(2) For each control period in 2015

and thereafter for which the CAIR S02

opt-in unit is to be allocated CAIR SO 2

allowances,

(i) The heat input (in mmBtu) used for

calculating the CAIR S02 allowance

allocations will be determined as

described in paragraph (b)(1) of this

section.

(ii) The SO 2 emission rate (in lb/

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 (in lb/

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 2 allowances to the

CAIR SO 2 opt-in unit with a tonnage

equivalent equal to, or less than by the

smallest possible amount, the heat input

under paragraph (c)(2)(i) of this section,

multiplied by the SO2 emission rate

under paragraph (c)(2)(ii) of this section,

and divided by 2,000 lb/ton.

(d) Recordation. (1) The

Administrator will'record, in the

compliance account of the 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 unit under paragraph (a)(1) of this

section.

(2) By December 1 of the control.

period in which a CAIR opt-in unit

enters the CAIR SO 2 Trading Program

under § 96.284(g), and December 1 of

each year thereafter, the Administrator

will record, in the compliance account

of the 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 unit under

paragraph (a)(2) of this section.

N 4. Part 96 is 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 of time.

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 of representation.

96.314 Objections concerning CAIR

designated representative.

Subpart CCCC--Permits

96.320 General CAIR NOx Ozone Season

Trading Program permit requirements.

96.321 Submission of CAIR 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 CAIR NOx

Ozone Season allowance allocations.

96.342 CAIR NOx Ozone Season allowance

allocations.

Subpart FFFF-CAIR NOx Ozone

Season Allowance Tracking System

96.350 [Reserved]

96.351 Establishment of accounts.

96.352 Responsibilities of CAIR authorized

account representative.

96.353 Recordation of CAIR NOx Ozone

Season allowance allocations.

96.354 Compliance with CAIR NOx

emissions limitation.

96.355 Banking.

96.356 Account error. 96.357 Closing of general accounts.

Subpart GGGG-CAIR NOx Ozone

Season Allowance Transfers

96.360 Submissiqn of CAIR NOx Ozone

Season allowance transfers.

96.361 EPA recordation.

96.362 Notification.

Subpart HHHH-Monitoring and

Reporting

96.370 General requirements.

96.371' Initial certification and

recertification procedures.

96.372 Out of control periods.

96.373 Notifications.

96.374 Recordkeeping and reporting.

96.375 Petitions.

96.376 Additional reqpirements to provide

heat input data.

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-in units.

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 of the Clean Air Act and § 51.123

of this chapter, as a means of mitigating

interstate transport of ozone and

nitrogen oxides. The owner or operator

of a unit or a source shall comply with

the requirements of this subpart and

subparts BBBB through IIII 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

§ 51.123(aa)(1) or (2), of this chapter, the

State submits to the Administrator one

or more revisions of the State

implementation plan that include such

adoption, and the Administrator

approves such revisions. If the State

adopts the requirements of such

subparts in accordance with

§ 51.123(aa)(1.) or (2), (bb), or (dd) of this

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 for the

Administrator in such subparts.

§96.302 Definitions.

The terms used in this subpart and

subparts BBBB through 1111 shall have

the meanings set forth in this section as

follows:

Account number means the

identification number given by the

Administrator to each CAIR NOx Ozone

Season Allowance Tracking System

account.

Acid Rain emissions limitation means

a limitation on emissions of sulfur

dioxide or nitrogen oxides under the

Acid Rain Program.

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Acid Rain Program means a multistate sulfui dioxide and nitrogen oxides

air pollution control and emission

reduction program established by the

Administrator under title IV of the CAA

and parts 72 through 78 of this chapter.

Administrator means the

Administrator of the United States

Environmental Protection Agency or the

Administrator's duly authorized

representative.

Allocate or allocation means, with

regard to CAIR NOx Ozone Season

allowances issued under subpart EEEE,

the determination by the permitting

authority or the Administrator of the

amount of such CAIR NOx Ozone

Season allowances to be initially

credited to a CAIR NOx Ozone Season

unit 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) of this chapter, the

determination by the permitting

authority of the amount of such CAIR

NOx Ozone Season allowances to be

initially credited to a CAIR NOx Ozone

Season unit.

Allowance transfer deadline means,

for a control period, midnight of

November 30, if it is a business day, or,

if November 30 is not a business day,

midnight of the first business day

thereafter immediately following the

control period and is the deadline by

which a CAIR NOx Ozone Season

allowance transfer must be submitted

for recordation in a CAIR NOx Ozone

Season source's compliance account in

order to be used to meet the source's

CAIR NOx Ozone Season emissions

limitation for such control period in

accordance with § 96.354.

Alternate CAIR designated

representative means, for a CAIR NOx

Ozone Season source and each CAIR

NOx Ozone Season unit at the source,

the natural person who is authorized by

the owners and operators of the source

and all such units at the source in

accordance with subparts BBBB and IIII

of this part, to act on behalf of the CAIR

designated representative in matters

pertaining to the CAIR NOx Ozone

Season Trading Program. If the CAIR

NOx Ozone Season source is-also a

CAIR NOx source, then this natural

person shall be the same person as the

alternate CAIR designated

representative under the CAIR NOx

Annual Trading Program. If the CAIR

NOx Ozone Season source is also a

CAIR SO 2 source, then this natural

person shall be the sam~e person as the

alternate 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

person shall be the same person as the

alternate designated representative

under the Acid Rain Program.

Automated data acquisition and

handling system or DAHS means that

component of the continuous emission

monitoring system, or other emissions

monitoring system approved for use

under subpart HHHH of this part,

designed to interpret and convert

individual output signals from pollutant

concentration monitors, flow monitors,

diluent gas monitors, and other

component parts of the monitoring

system to produce a continuous record

of the measured parameters in the

measurement units required by subpart

HHHH of this part.

Boiler means an enclosed fossil- or

other-fuel-fired combustion device used

to produce heat and to transfer heat to

recirculating water, steam, or other

medium.

Bottoming-cycle cogeneration unit

means a cogeneration unit in which the

energy input to the unit is first used to

produce useful thermal energy and at

least some of the reject heat from the

useful thermal energy application or

process is then used for electricity

production.

CAIR authorized account

representative means, with regard to a

general account, a responsible natural

person who is authorized, in accordance

with subparts BBBB and 111 of this part,

to transfer and otherwise dispose of

CAIR NOx Ozone Season allowances

held in the general account and, with

regard to a compliance account, the

CAIR designated representative of the

source.

CAIR designated representative

means, for a CAIR NOx Ozone Season

source and each CAIR NOx Ozone

Season unit at the source, the natural

person who is authorized by the owners

and operators of the source and all such

units at the source, in accordance with

subparts BBBB and IIII of this part, to.

represent and legally bind each owner

and operator in matters pertaining to the

CAIR NOx Ozone Season Trading

Program. If the CAIR NOx Ozone Season

source is also a CAIR NOx source, then

this natural person shall be the same

person as the CAIR designated

representative under the CAIR NOx

Annual Trading Program. If the CAIR

NOx Ozone Season source is also a

CAIR SO 2 source, then this natural

person shall be 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 NOx Annual Trading Program

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

of this part and § 51.123 of this chapter,

as a means of mitigating interstate

transport of fine particulates and

nitrogen oxides.

CAIR NOx Ozone Season allowance

means a limited authorization issued by

the permitting authority under subpart

EEEE of this part, § 96.388, or

§ 51.123(aa)(2)(iii)(A), (bb)(2)(iii) or (iv),

or (dd)(3) or (4) of this chapter to emit

one ton of nitrogen oxides during a

control period of the specified calendar

year for which the authorization is

allocated or of any calendar year

thereafter under the CAIR NOx Ozone

Season Trading Program or a limited

authorization issued by the permitting

authority. for a control period during

2003 through 2008 under the NOx

Budget Trading Program to emit one ton

of nitrogen oxides during a control

period, provided that the provision in

§ 51.121(b)(2)(i)(E) of this chapter shall

not be used in applying this definition.

An authorization to emit nitrogen

oxides that is not issued under

provisions of a State implementation

plan that meet the requirements of

§ 51.121(p) of this chapter or

§ 51.123(aa)(1) or (2), (and (bb)(1)),

(bb)(2), or (dd) of this chapter shall not

be a CAIR NOx Ozone Season

allowance.

CAIR NOx Ozone Season allowance

deduction or deduct.CAIR NOx Ozone

Season allowances means the

permanent withdrawal of CAIR NOx

Ozone Season allowances by the

Administrator from a complianceaccount in order to account for a

specified number of tons of total

nitrogen oxides emissions from all CAIR

NOx Ozone Season units at a CAIR NOx

Ozone Season source for a control "

period, determined in accordance with

subpart HHHH of this part, or to account

for excess emissions.

CAIR NOx Ozone Season Allowance

Tracking System means the system by

which the Administrator records

allocations, deductions, and transfers of

CAIR NOx Ozone Season allowances

under the CAIR NOx Ozone Season

Trading Program. Such allowances will

be allocated, held, deducted, or

transferred only as whole allowances.

CAIR NOx Ozone Season Allowance

Tracking System account means an

account in the CAIR NOx Ozone Season

Allowance Tracking System established

by the Administrator for purposes of

recording the allocation, holding,

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transferring, or deducting of CAIR NOx

Ozone Season allowances..

CAIR NOx Ozone Season allowances

held or hold CAIR NOx Ozone Season

allowances means the CAIR NOx Ozone

Season allowances recorded by the

Administrator, or submitted to the

Administrator for recordation, in

accordance with subparts FFFF, GGGG,

and IIII of this part, in a CAIR NOx

Ozone Season Allowance Tracking

System account.

CAIR NOx Ozone Season emissions

limitation means, for a CAIR NOx

Ozone Season source, the tonnage

equivalent of the CAIR NOx Ozone.

Season allowances available for

deduction for the source under

§ 96.354(a) and (b) for a control period.

CAIR NOx Ozone Season Trading

Program means 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 of this part and § 51.123 of

this chapter, as a means of mitigating

interstate transport of ozone and

nitrogen oxides.

CAIR NOx Ozone Season sourte

means a source that includes one or

more CAIR NOx Ozone Season units.

CAIR NOx Ozone Season unit means

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 of this part,

a CAIR NOx Ozone Season opt-in unit

under subpart IIII of this part.

CAIR NOx source means a source that

includes one or more CAIR NOx units.

0AIR NOx unit means 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

of this part.

CAIR permit means the legally

binding and federally enforceable

written document, or portion of such

document, issued by the permitting

authority under subpart CCCC of this

part, including any permit revisions,

specifying the CAIR NOx Ozone Season

Trading Program requirements

applicable to a CAIR NOx Ozone Season

source, to each CAIR NOx Ozone Season

unit at the source, and to the owners

and operators and the CAIR designated

representative of the source and each

such unit.

CAIR S0 2 source means a source that

includes one or more CAIR SO 2 units.

CAIR S0 2 Trading Program 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 of this part

and § 51.124 of this chapter, as a means

of mitigating interstate transport of fine

particulates and sulfur dioxide.

CAIR S0 2 unit means a unit that is

subject to the CAIR SO 2 Trading

Program under § 96.204 and a CAIR SO 2

opt-in unit under subpart III of this part.

Clean Air.Act or CAA means the

Clean Air Act, 42 U.S.C. 7401, et seq.

Coal means any solid fuel classified as

anthracite, bituminous, subbituminous,

or lignite.

Coal-derived fuel means any fuel

(whether in a solid, liquid, or gaseous

state) produced by the mechanical,

thermal, or chemical processing of coal.

Coal-fired means:

(1) Except for purposes of subpart

EEEE of this part, combusting any

amount of coal or coal-derived fuel,

alone or in combination with any

amount of any other fuel, during any

year; or (2) For purposes of subpart EEEE of

this part, combusting any amount of

coal or coal-derived fuel, alone or in

combination with any amount of any

other fuel, during a specified year.

Cogeneration unit means a stationary,

fossil-fuel-fired boiler or stationary,

fossil-fuel-fired combustion turbine:

(1) Having equipment used to produce

electricity and useful thermal energy for

industrial, commercial, heating, or

cooling purposes through the sequential

use of energy; and

(2) Producing during the 12-month

period starting on the date the unit first

produces electricity and during any

calendar year after which the unit first

produces electicity-

(i) For a topping-cycle cogeneration

unit,

(A) Useful thermal energy not less

than 5 percent of total energy output;

and

(B) Useful power that, when added to

one-half of useful thermal energy

produced, is not less then 42.5*percent

of total energy input, if useful thermal

energy produced is 15 percent or more

of total energy output, or not less than

45 percent of total energy input, if

useful thermal energy produced is less

than 15 percent of total energy output.

(ii) For a bottoming-cycle

cogeneration unit, useful power not less

than 45 percent of total energy input.

Combustion turbine means:

(1) An enclosed device comprising a

compressor, a combustor, and a turbine

and in which the flue gas resulting from

the combustion of fuel in the combustor

passes through the turbine, rotating the

turbine; and

(2) If the enclosed device under

paragraph (1) of this definition is

combined cycle, any assbciated heat

recovery steam generator and steam

turbine.

Commence commercial operation -

means, with regard 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 (other than replacement of the

unit by a unit at the same source), such

date shall remain the unit's date of

commencement of commercial

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 unit at the

same source (e.g., repowered), the

replacement unit shall be treated as a

separate unit with a separate date for

commencement of commercial

operation as defined in paragraph (1),

(2), or (3) of this definition as

appropriate.

(2) Notwithstanding paragraph (1) of

this definition and except as provided

in § 96.305, for a unit 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 a unit under paragraph (3) of this

definition, the unit's date for

commencement of commercial

operation shall be the date on which the

unit becomes a CAIR NOx Ozone

Season unit under § 96.304.

(i) For a unit with a date for

commencement of commercial

operation as defined in paragraph (2) of

this definition and that subsequently

undergoes a physical change (other than

replacement of the unit by a unit-at the

same source), such date shall remain the

unit's date of commencement of

commercial operation.

(ii) For a unit with a date for

commencement of commercial

operation as defined in paragraph (2) of

this definition and that is subsequently

replaced by a unit at the same source

(e.g., repowered), the replacement unit

shall be treated as a separate unit with

a separate date for commencement of

commercial operation as defined in

paragraph (1), (2), or (3) of this

definition as appropriate.

(3) Notwithstanding 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-in unit or

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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

1111 of this part, the unit's date for

commencement of commercial

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 of the

unit under § 96.384(bJ(1)(i).

(i) For a unit with a date for

commencement of commercial.

operation as defined in paragraph (3) of"

this definition and that subsequently

undergoes a physical change (other than

replacement of the unit by a unit at the

same source), such date shall remain the

unit's date of commencement of'

dommercial operation.

(ii) For a unit with a date for

commencement of commercial

operation as defined in paragraph (3) of

this 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'commericement of

commercial operation as defined-in

paragraph (1), (2), or (3) of this

definition as appropriate.

(4) Notwithstanding paragraphs (1)

through (3) of this definition, for a unit

not serving a generator producing

electricity for sale, the unit's date of

commencement of operation shall also

be the unit's date of commencement of

commercial operation.

Commence operation means:

(1) To have begun any mechanical,

chemical, or electronic process,

including, with regard to a unit, start-up

of a unit's combustion chamber, except

as provided in § 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) of this

definition and that subsequently

undergoes a physical change (other than

replacement of the unit by a unit at the

same source), such date shall remain the

unit's date of commencement 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) of this

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 of

operation as defined in paragraph (1),

(2), or (3) of this definition as

appropriate.

(2) Notwithstanding paragraph (1) of

this definition and except as provided

in § 96.305, for a unit that is not a CAIR

NOx Ozone Season unit under § 96.304

on the date the unit commences

operation as defined inparagraph (1) of

this definition and is not a unit under

paragraph (3) of this definition, the

unit's date for commencement of

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 of operation as defined

in paragraph (2) of this definition and

that subsequently undergoes a physical

change (other than replacement of the

unit by a unit at the same source), such

date shall remain the unit's date of

commencement of operation.

(ii) For a unit with a date for

commencement of operation as defined

in paragraph (2) of this definition and

that is subsequently replaced by a unit

at the same source (e.g., repowered), the

replacement unit shall be treated as a

separate unit with a separate date for

commencement of operation as defined

in paragraph (1),(2), or (3) of this

definition as appropriate.

(3) Notwiihstanding 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-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

not yet issued or denied under subpart

II of this part, the unit's date for

commencement of 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 of the unit under,

§ 96.384(b)(1)(i);

(i) For a unit with a date for

commencement of operation as defined

in paragraph (3) of this definition and

that subsequently undergoes a physical

change (other than replacement of the

unit by a unit at the same source), such

date shall remain the unit's date of

commencement of operation.

(ii) For a unit with a date for

commencement of operation as defined

in paragraph (3) of this definition and

that is subsequently replaced by a unit

at the 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) of this

definition as appropriate.

Common stack means a single flue

through which emissions from 2 or

more units are exhausted.

Compliance account means a CAIR

NOx Ozone Season Allowance Tracking

System account, established by the

Administrator for a CAIR NOx Ozone

Season source under subpart FFFF or

IIII of this part, in which any CAIR NOx

Ozone Season allowance allocations for

the CAIR NOx Ozone Season units at

the source are initially recorded and in

which are held any CAIR NOx Ozone

Season allowances available for use for

a control period in order to meet the'

source's CAIR NOx Ozone Season

emissions limitation in accordance with

§96.354.

Continuous emission monitoring

system or CEMS means the equipment

required under subpart HHHH of this

part to sample, analyze, measure, and

provide, by means of readings recorded

at least once every 15 minutes (using an

automated data acquisition and

handling system (DAHS)), a permanent

record of nitrogen oxides emissions,

stack gas volumetric flow rate, stack gas

moisture content, and oxygen or carbon

dioxide concentration (as applicable), in

a manner consistent with part 75 of this

chapter. The following systems are the

principal types of continuous emission

monitoring systems required under

subpart HHHH of this part:

(1) A flow-monitoring system,

consisting of a stack flow rate monitor

and an automated data acquisition and

handling system and providing a

permanent, continuous record of stack

gas volumetric flow rate, in standard

cubic feet per hour (scfh);

(2) A nitrogen oxides concentration

monitoring system, consisting of a NOx

pollutant concentration monitor and an

automated data acquisition and

handling system and providing a

permanent, continuous record of NOx

emissions, in parts per million (ppm);

(3) A nitrogen oxides emission rate (or

NOx-diluent) monitoring system,

consisting of a NOx pollutant

concentration monitor, a diluent gas

(CO 2 or 02) monitor, and an automated

data acquisition and handling system

and providing a permanent, continuous

record of NOx concentration, in parts

per million (ppm), diluent gas

concentration, in percent 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) of this chapter

and providing a permanent, continuous

record of the stack gas moisture content,

in percent H 2 0;

(5) A carbon dioxide mbnitoring

system, consisting of a 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 of CO 2

emissions, in percent C0 2; and

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(6) An oxygen monitoring system,

consisting of an 02 concentration

monitor and an automated data

acquisition and handling system and

providing a permanent, continuous

record of.0 2 in percent 02.

Control period or ozone season means

the period beginning May 1 of a

calendar year and ending on September

30 of the same year, inclusive.

Emissions means air pollutants

exhausted from a unit or source into the

atmosphere, as measured, recorded, and

reported to the Administrator by the

CAIR designated representative and as

'determined by the Administrator in

accordance with subpart HHHH of this

part.

. Excess emissions means any ton of

nitrogen oxides emitted by the CAIR

NOx Ozone Season units at a CAIR NOx

Ozone Season source during a control

period that exceeds the CAIR NOx

Ozone Season emissions limitation for

the source.

Fossil fuel means natural gas,

petroleum, coal, or any form of solid,

liquid, or gaseous fuel derived from

such material.

Fossil-fuel-fired means, with regard to

a unit, combusting any amount of fossil

fuel in any calendar-year.

Fuel oil means any petroleum-based

fuel (including diesel fuel or petroleum

derivatives such as oil tar) and any

recycled or blended petroleum products

or petroleum by-products used as a fuel

whether in a liquid, solid, or gaseous

state.

General account means a CAIR NOx

Ozone Season Allowance Tracking

System account, established under

subpart FFFF of this part, that is not a

compliance account.

Generator means a device that

produces electricity.

Gross electrical output means, with

regard to a cogeneration unit, electricity

made available for use, including any

such electricity used in the power

production process (which process

includes, but is not limited to, any onsite processing or treatment of fuel

combusted at the unit and any on-site

emission controls).

Heat input means, with regard to a

specified period of time, the product (in

mmBtu/time) of the gross calorific value

of the fuel (in Btu/lb) divided by

1,000,000 Btu/mmBtu and multiplied by

the fuel feed rate into a combustion

device (in lb of fuel/time), as measured,

recorded, and reported to the

Administrator by the CAIR designated

representative and determined by the

Administrator in accordance with

subpart HHHH of this part and

excluding the heat derived from

preheated combustion air, recirculated

flue gases, or exhaust from other

sources.

Heat input rate means the amount of

heat input (in mmBtu) divided by unit

operating time (in hr) or, with regard to

a specific fuel, the amount of heat input

attributed to the fuel (in mmBtu)

divided by the unit operating time (in

hr) during which the unit combusts the

fuel. "

Life-of-the-unit, firm power

contractual arrangement means a unit

participation power sales agreement

under which a utility or industrial

customer reserves, or is entitled to

receive, a specified amount or

percentage of nameplate capacity and

associated energy generated by any

specified unit and pays its proportional

amount of such unit's total costs,

pursuant to a contract:

(1) For the life of the unit;

(2) For a cumulative term of no less

than 30 years, including contracts that

permit an election for early termination;

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

or 70 percent of the economic useful life

of the unit determined as of the time the

unit is built, with option rights to

purchase or release some portion of the

nameplate capacity and associated

energy generated by the unit at the end.

of the period.

Maximum design heat input means,

starting from the initial installation of a

unit, the maximum amount of fuel per

hour (in Btu/hr) that a unit is capable of

combusting on a steady state basis as

specified by the manufacturer of the

unit, or, starting from the completion of

any subsequent physical change in the

unit resulting in a decrease in the

maximum amount of fuel per hour (in

Btu/hr) that a unit is capable of

combusting on a steady state basis, such

decreased maximum amount as

specified by the person conducting the

physical change.

Monitoring system means any

monitoring system that meets the

requirements of subpart HHHH of this

part, including a continuous emissions

monitoring system, an alternative'

monitoring system, or an excepted

monitoring system under part 75 of this

chapter.

Most stringent State or Federal NOx

emissions limitation means, with regard

to a unit, the lowest NOx emissions

limitation (in terms of lb/mmBtu) that is

applicable to the unit under State or

Federal law,. regardless of the averaging

period to which the emissions

limitation applies.

Nameplate capacity means, starting

from the initial installation of a

generator, the maximum electrical

generating output (in MWe) that the

generator is capable of producing on a

steady state basis and during continuous

operation (when not restricted by

seasonal or other deratings) as specified

by the manufacturer of the generator or,

starting from the completion of any

subsequent physical change in the

generator resulting in an increase in the

maximum electrical generating output

(in MWe) that the generator is capable

of producing on a steady state basis and

during continuous operation (when not

restricted by seasonal or other

deratings), such increased maximum

amount as specified by the person

conducting the physical change.

Oil-firedmeans, for purposes of

subpart EEEE of this part, combusting

fuel oil for more than 15.0 percent of the

annual heat input in a specified year.

Operator means any person who

operates, controls, or supervises a CAIR.

NOx Ozone Season unit or a CAIR NOx

Ozone Season source and shall include,

but not be limited to, any holding

company, utility system, or plant

manager of such a unit or source. Owner means any of the following

persons:

(1) With regard to a CAIR NOx Ozone

Season source or a CAIR NOx Ozone

Season unit at a source, respectively:

(i). Any holder of any portion of the

legal or equitable title in a CAIR NOx

Ozone Season unit at the source or the

CAIR NOx Ozone Season unit;

(ii) Any holder of a leasehold interest

in a CAIR NOX Ozone Season unit at the

source or the CAIR NOx Ozone Season

unit; or (iii) Any purchaser of power from a

CAIR NOx Ozone Season unit at the

source or the CAIR NOx Ozone Season

unit under a life-of-the-unit, firm power

contractual arrangement; provided that,

unless expressly provided for in a

leasehold agreement, owner shall not

include a passive lessor, or a person

who has an equitable interest through

such lessor, whose rental payments are

not based (either directly or indirectly)

on the revenues or income from such

CAIR NOx Ozone Season unit; or

,(2) With regard to any general

account, any person who has an

ownership interest with respect to the

CAIR NOx Ozone Season allowances

held in the general account and who is

subject to the binding agreement for the

CAIR authorized account representative

to represent the person's ownership

interest with respect to CAIR NOx

Ozone Season allowances.

Permitting authority means the State

air pollution control agency, local

agency, other State agency, or other

agency authorized by the Administrator

to issue or revise permits to meet the

requirements of the CAIR NOx Ozone

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Season Trading Program in accordance

with subpart CCCC of this part or, if no

such agency has been so authorized, the

Administrator.

Potential electrical output capacity

means 33 percent of a unit's maximum

design heat input, divided by 3,413 Btu/

kWh, divided by 1,000 kWh/MWh, and

multiplied by 8,760 hr/yr.

Receive or receipt of means, when

referring to the permitting authority or

the Administrator, to come into

possession of a document, information,

or correspondence (whether sent in hard

cop -or by 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 in the

regular course of business.

Recordation, record, or recorded

means, with regard to CAIR NOx Ozone

Season allowances, the movement of

CAIR NOx Ozone Season allowances by

the Administrator into or between CAIR

NOx Ozone Season Allowance Tracking

System accounts, for purposes of

allocation, transfer, or deduction.

Reference method means any direct

test method of sampling and analyzing

for an air pollutant as specified in

§ 75.22 of this chapter.

Repowered means, with regard to a

unit, replacement of a coal-fired boiler

with one of the following coal-fired

technologies at the same source as the

coal-fired boiler:

(1) Atmospheric or pressurized

fluidized bed combustion;

(2) Integrated gasification combined

cycle;

(3) Magnetohydrodynamics;

(4) Direct and indirect coal-fired

turbines;

(5) Integrated gasification fuel cells; or

(6) As determined by the

Administrator in consultation with the

Secretary of Energy, a derivative of one

or more of the technologies under

paragraphs (1) through (5) of this

definition and any other coal-fired

technology capable of controlling

multiple combustion emissions

simultaneously with improved boiler or

generation efficiency and with

significantly greater waste reduction

relative to the performance of

technology in widespread commercial

use as of January 1, 2005.

Serial number means, for a CAIR NOx

Ozone Season allowance, the unique

identification number assigned to each

CAIR NOx Ozone Season allowance by

the Administrator.

Sequential use of energy means:

(1) For a topping-cycle cogeneration

unit, the use of reject heat from

electricity production in a useful

thermal energy application or process;

or (2) For a bottoming-cycle cogeneration

unit, the use of reject heat from useful

thermal energy application or process in

electricity production.

Source means all buildings,

structures, or installations located in

one or more contiguous or adjacent

properties under common control of the

same person or persons. For purposes of

section 502(c) of the Clean Air Act, a "source," including a "source" with

multiple units, shall be considered a

single "facility."

State means one of the States or the

District of Columbia that adopts the

CAIR NOx Ozone Season Trading

Program pursuant to § 51.123(aa)(1) or

(2), (bb), or (dd) of this chapter.

Submit or serve means to send or

transmit a document, information, or

correspondence to the person specified.

in accordance with the applicable

regulation:

(1) In person;

(2) By United States Postal Service; or (3) By other means of dispatch'or

transmission and delivery. Compliance

with any "submission" or "service"

deadline shall be determined by the

date of dispatch, transmission, or

mailing and not the date of receipt.

Title V operating permit means a

permit issued under title V of the Clean

Air Act and part 70 or part 71 of this

chapter.

Title V operating permit regulations

means the regulations that the

Administrator has approved or issued as

meeting the requirements of title V of

the Clean Air Act and part 70 or 71 of

this chapter.

Ton means 2,000 pounds. For the

purpose of determining compliance

with the CAIR NOx Ozone Season

emissions limitation, total tons of

nitrogen oxides emissions for a control

period shall be calculated as the sum of

all recorded hourly emissions (or the

mass equivalent of the recorded hourly

emission rates) in accordance with.

subpart HHHH of this part, but with any

remaining fraction of a ton equal to or

greater than 0.50 tons deemed to equal

one ton and any remaining fraction of a

ton less than 0.50 tons deemed to-equal

zero tons.

Topping-cycle cogeneration unit

means a cogeneration unit in which the

energy input to the unit is first used to

produce useful power, including

electricity, and at least some of the

reject heat from the electricity

production is then used to provide

useful thermal energy.

Total energy input means, with regard

to a cogeneration unit, total energy of all

forms supplied to the cogeneration unit,

excluding energy produced by the

cogenerhtion unit itself.

Total energy output means, with

regard to a cogeneration unit, the sum

of useful power and useful thermal

energy produced by the cogeneration

unit.

Unit means a stationary, fossil-fuelfired boiler or combustion turbine or

other stationary, fossil-fuel-fired

combustion device.

Unit operating day means a calendar

day in which a unit combusts any fuel.

Unit operating hour or hour of unit

operation means an hour in which a

unit combusts any fuel.

Useful power means, with regard to a

cogeneration unit, electricity or

mechanical energy made available for

use, excluding any such energy used in

the power production process (which

process includes, but is not limited to,

any on-site processing or treatment of

fuel combusted at the unit and any onsite emission controls).

Useful thermal energy means, with

regard to a cogeneration unit, thermal

energy that is:

(1) Made available to an industrial or

commercial process (not a power

production process), excluding any heat

contained in condensate return or

makeup water;

(2) Used in a heat application (e.g.,

space heating or domestic hot water

heating); or

(3) Used in a space cooling

application (i.e., thermal energy used by

an absorption chiller).

Utility power distribution system

means the portion of an electricity grid

owned or operated by a utility and

dedicated to delivering electricity to

customers.

§96.303 Measurements, abbreviations,

and acronyms.

Measurements, abbreviations, and

acronyms used in this 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 of this subpart and

subparts BBBB through HHHH of this

part:

(a) Except as provided in paragraph

(b) of this section, a stationary, fossilfuel-fired boiler or stationary, fossilfuel-fired combustion turbine serving at

any time, since the start-up of a unit's

combustion chamber, a generator with

nameplate capacity of more than 25

MWe producing electricity for sale.

(b) For a unit 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

of the unit's potential electric output

capacity or 219,000 MWh, whichever is

greater, to any utility power distribution

system for sale. If a unit 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 shall be exempt from the CAIR NOx

Ozone Season Trading Program, except

for the provisions of this section,

§ 96.302, § 96.303, § 96.304,

§ 96.306(c)(4) through (8), § 96.307, and

subparts EEEE through GGGG of this

part.

(2) The exemption under paragraph

(a)(1) of this section shall become

effective the day on which the CAIR

NOx Ozone Season unit is permanently

retired. Within 30 days of the unit's

permanent retirement, the CAIR

designated representative shall submit a

statement to the permitting authority

otherwise responsible for administering

any CAIR.permit for the unit and shall

submit a copy of the statement to the

Administrator. The statement shall

state, in a format prescribed by the

permitting authority, that the unit was

permanently retired on a specific date

and will comply with the requirements

of paragraph (b) of this section.

A3fter receipt of the statement

under paragraph (a)(2) of this section,

the permitting authority will amend any

permit under subpart CCCC of this part

covering the source at which the unit is

located to add the provisions and

requirements of the exemption under

paragraphs (a)(1) and (b) of this section.

(b) Special provisions. (1) A unit

exempt under paragraph (a) of this

section shall-not emit any nitrogen

oxides, starting on the date that the

exemption takes effect.

(2) The permitting authority will

allocate CAIR NOx. Ozone Season

allowances under subpart EEEE of this

part to a unit exempt under paragraph

(a) of this section.

(3) For a period of 5 years from the

date the records are created, the owners

and operators of a unit exempt under

paragraph (a) of this section shall retain

at the source that includes the unit,'

records demonstrating that the unit is

permanently retired. The 5-year period

for keeping records may be extended for

cause, at any time before the end of the

period, in writing by the permitting

authority or the Administrator. The

owners and op6rators bear the burden of

proof that the unit is permanently

retired.

(4) The owners and operators and, to

the extent applicable, the CAIR

designated representative of a unit

exempt under paragraph (a) of this

section shall comply with the

requirements of the CAIR NOx Ozone

Season Trading Program concerning all

periods for which the exemption is not

in effect, even if such requirements

arise, or must be complied with, after

the exemption takes effect.

(5) A unit exempt under paragraph (a)

of this section and located at a source

that is required, or but f6r this

exemption would be required, to have a

title V operating permit shall not resume

operation unless the CAIR designated

representative of the source submits a

complete CAIR permit application

under § 96.322 for the unit not less than

18 months (or such lesser time provided

by the permitting authority) before the

later of January 1, 2009 or the date on

which the unit resumes operation.

(6) On the earlier of the following

dates, a unit exempt under paragraph (a)

- of this section shall lose its exemption:

(i) The date on which the CAIR

designated representative submits a

CAIR permit application for the unit

under paragraph (b)(5) of this section;

(ii) The date on which the CAIR

designated representative is required

under paragraph (b)(5) of this section to

submit a CAIR permit application for

the unit; or

(iii) The date on which the unit

resumes operation, if the CAIR

designated representative is not

required to submit a CAIR permit

application for the'unit.

(7) For the purpose of applying

monitoring, reporting, and

recordkeeping requirements ufider

subpart HHHH of this part, a unit that

loses its exemption under paragraph (a)

of this section shall be treated as a unit

that commences operation and

commercial operation on the first date

on which the unit resumes operation.

§96.306 Standard requirements.

(a) Permit requirements. (1) The CAIR

designated representative of each CAIR

NOx Ozone Season source required to

have a title V operating permit and each

CAIR NOx Ozone Season unit required

to have a title V operating permit at the

source shall:

(i) Submit to the permitting authority

a complete CAIR permit application

under § 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 of each

CAIR NOx Ozone Season source

required to have a title V operating

permit and each CAIR NOx Ozone

Season unit required to have a title V

operating permit at the source shall

have a CAIR permit issued by the

permitting authority under subpart

CCCC of this part for the source and

operate the source and the unit in

compliance with such CAIR permit.

(3) Except as provided in subpart IIII

of this part, the owners and operators of

a CAIR NOx Ozone Season source that

is not otherwise required to have a title

V operating permit and each CAIR NOx

Ozone Season unit that is not otherwise

required to have a title V operating

permit are not required to submit a

CAIR permit application, and to have a

CAIR permit, under subpart CCCC of

this part for such CAIR NOx Ozone

Season source and such CAIR NOx

Ozone Season unit.

(b) Monitoring, reporting, and

recordkeeping requirements. (1) The.

owners and operators, and the CAIR

designated representative, of each CAIR

NOx Ozone Season source and each

CAIR NOx Ozone Season unit at the

source shall comply with the

monitoring, reporting, and

recordkeeping requirements of subpart

HHHH of this part.

(2) The emissions measurements

recorded and reported in accordance

with subpart HHHH of this part shall be

used to determine compliance by each

CAIR NOx Ozone Season source with

the CAIR NOx Ozone Season emissions

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limitation under paragraph (c) of this

section.

(c) Nitrogen oxides ozone season

emission requirements. (1) As of the

allowance transfer deadline for a control

period, the owners and operators of

each CAIR NOx Ozone Season source

and each CAIR NOx Ozone Season unit

at the source shall hold, in the source's

compliance account, CAIR NOx Ozone

Seasbn allowances available for

compliance deductions for the control

period under § 96.354(a) in an amount

not less than the tons of total nitrogen

oxides emissions for the control period

from all CAIR NOx Ozone Season units

at the source, as determined in

accordance with subpart HHHH of this

part.

(2) A CAIR NOx Ozone Season unit

shall be subject to the requirements

under paragraph (c)(1) of this section

starting on the later of May 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 not be deducted, for

compliance with the requirements

under paragraph (c)(1) of this section,

for a control period in a calendar year

before the year for which the CAIR NOx

Ozone Season allowance was allocated.

(4) CAIR NOx Ozone Season

allowances shall be held in, deducted

from, or transferred into or among CAIR

NOx Ozone Season Allowance Tracking

System accounts in accordance with

subpart EEEE of this part.

(5) A CAR NOx Ozone Season

allowance is a limited authorization to

emit one ton of nitrogen oxides in

accordance with the CAIR NOx Ozone

Season Trading Program. No provision

of the CAIR NOx Ozone Season Trading

Program, the CAIR permit application,

the CAIR permit, or an exemption under

§ 96.305 and no provision of law shall

be construed to limit the authority of the

State or the United States to terminate

or limit such authorization.

(6) A CAIR NOx Ozone Season

allowance does not constitute a property

right.

(7) Upon recordation by the

Administrator under subpart FFFF,

GGGG, or 1111 of this part, every

allocation, transfer, or deduction of a

CA1R NOx Ozone Season allowance to

or from a CAIR NOx Ozone Season

unit's compliance account is

incorporated automatically in any CAIR

permit of the source that includes the

CAIR NOx Ozone Season unit.

(d) Excess emissions requirements. (1)

If a CAIR NOx Ozone Season source

emits nitrogen oxides during any

control period in excess of the CAIR

NOx Ozone Season emissions

limitation, then:

(i) The owners and operators of the

source and each CAIR NOx Ozone

Season unit at the source shall

surrender the CAIR NOx Ozone Season

allowances required for deduction

under § 96.354(d)(1) and pay any fine,

penalty, or assessment or comply with

.any other remedy imposed, for the same

violations, under the Clean Air Act or

applicable State law; and

(ii) Each ton of such excess emissions

and each day of such control period

shall constitute a separate violation of

this subpart, the Clean Air Act, and

applicable State law.

(2) [Reserved]

(e) Recordkeeping and reporting

requirements. (1) Unless otherwise

provided, the owners and operators of

the CAIR NOx Ozone Season source and

each CAIR NOx Ozone Season unit at

the source shall keep on site at the

source each of the following documents

for a period-of 5 years from the date the

document is created. This period may.

be extended for cause, at any time

before the end of 5 years, in writing by

the permitting authority or the

Administrator.

(i) The certificate of representation

under § 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 of the statements

in the certificate of representation;

provided that the certificate and

documents shall be retained on site at

the source beyond such 5-year period

until such documents are superseded

because of the submission of a new

certificate of representation under

§ 96.313 changing the CAIR designated

representative.

(ii) All emissions.monitoring

information, in accordance with subpart

HHHH of this part, provided that to the

extent that subpflrt HHHH of this part

provides for a 3-year period for

recordkeeping, the 3-year period shall

apply.

(iii) Copies of all reports, compliance

certifications, and other submissions

and all records made or required under

the CAIR NOx Ozone Season Trading

Program.

(iv) Copies of all documents used to

complete a CAIR permit application and

any other submission under the CAIR

NOx Ozone Season Trading Program or

to demonstrate compliance with the

requirements of the CAIR NOx Ozone

Season Trading Program.

(2) The CAIR designated

representative of a CAIR NOx Ozone

Season source and each CAIR NOx

Ozone Season unit at the source shall

submit the reports required under the

CAIR NOx Ozone Season Trading

Program, including those under subpart

HHHH of this part.

(f) Liability. (1) Each CAIR NOx Ozone

Season source and each CAIR NOx

Ozone Season unit shall meet the

requirements of the CAIR NOx Ozone

Season Trading Program.

(2) Any provision of the CAIR NOx

Ozone Season Trading Program that

applies to a CAIR NOx Ozone Season

source or the CAIR designated

representative of a CAIR NOx Ozone

Season source shall also apply to the

owners and operators of such source

and of the CAIR NOx Ozone Season

units at the source.

(3) Any provision of the CAIR NOx

Ozone Season Trading Program that

applies to a CAIR NOx Ozone Season

unit or the CAIR designated

representative of a CAIR NOx Ozone

Season unit shall also apply to the

owners and operators of such unit.

(g) Effect on other authorities. No

provision of the CAIR NOx Ozone

Season Trading Program, a CAIR permit.

application, a CAIR permit, or an

exemption under § 96.305 shall be

construed as exempting or excluding the

owners and operators, and the CAIR

designated representative, of a CAIR

NOx Ozone Season source or CAIR NOx

Ozone Season unit from compliance

with any other provision of the

applicable, approved State

implementation plan, a federally

enforceable permit, or the Clean Air Act.

§96.307 Computation of time.

(a) Unless otherwise stated, any time

period scheduled, under the CAIR NOx

Ozone Season Trading Program, to begin

on the occurrence of an act or event

shall begin on the day the act or event

occurs.

(b) Unless otherwise stated, any time

period scheduled, under the CAIR NOx

Ozone Season Trading Program, to begin

before the occurrence of an act or event

shall be computed so that the period

ends the day before the act or event

occurs.

(c) Unless otherwise stated, if the final

day of any time period, under the CAIR

NOx Ozone Season Trading Program,

falls on a weekend or a State or Federal

holiday, the time period shall be

extended to the next business day.

§96.308 Appeal procedures.

The appeal procedures for decisions

of the Administrdtor under the CAIR

NOx Ozone Season Trading Program are

set forth in part 78 of this chapter.

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Subpart BBBB-CAIR Designated

Representative for CAIR NOx Ozone

Season Sources

§96.310 Authorization and responsibilities

of CAIR designated representative. -

(a) Except as provided under § 96.311,

each CAIR NOx Ozone Season source,

including all CAIR NOx Ozone Season

units at the source, shall have one and

only one CAIR designated

representative, with regard to all matters

under'the CAIR NOx Ozone Season

Trading Program concerning the source

or any CAIR NOx Ozone Season unit at

the source.

(b) The CAIR designated

representative of the CAIR NOx Ozone

Season source shall be selected by an

agreement binding on the owners and

operators of the source and all CAIR

NOx Ozone Season units at the source

and shall act in accordance with the

certification statement in

§ 96.313(a)(4)(iv).

(c) Upon receipt by the Administrator

of a complete certificate of

representation under § 96.313, the CAIR

designated representative of the source

shall represent and, by'his or her

representations, actions, inactions, or submissions, legally bind each owner

and operator of the CAIR NOx Ozone

Season source represented and each

CAIR NOx Ozone Season unit at the

source in all matters pertaining to the

CAIR NOx Ozone Season Trading

Program, notwithstanding any

agreement between the CAIR designated

representative and such owners and

operators. The owners and operators

shall be bound by any decision or order

issued to the CAIR designated

representative by the permitting

authority, the Administrator, or a court

regarding the source or unit.

(d) No CAIR permit'will be issued, no emissions data reports will be accepted,

and no CAIR NOx Ozone Season

Allowance Tracking System account

will be established for a CAIR NOx

Ozone Season unit at a source, until the

Administrator has received a complete

certificate of representation under

§ 96.313 for a CAIR designated

representative of the source and the

CAIR NOx Ozone Season units at the

source.

(e)(1) Each submission under the

CAIR NOx Ozone Season Trading

Program shall be submitted, signed, and

certified by the CAIR designated

representative for each CAIR NOx

Ozone Season source on behalf of which

the submission is made. Each such -

submission shall include the following

certification statement by the CAIR

designated representative: "I am authorized to make this submission on

behalf of the owners and operators of

the source or units for which the

submission is made. I certify under

penalty of law that I have personally

examined, and am familiar with, the

statements and information submitted

in this document and all its

attachments. Based on my inquiry of

those individuals with primary

responsibility for obtaining the

information, I certify that the statements

and information are to the best of my

knowledge and belief true, accurate, and

complete. I am aware that there are

significant penalties for. submitting false

statements and information or omitting

required statements and information,

including the piossibility of fine or

imprisonment."

(2) The permitting authority and the

Administrator will accept or act on a

submission made on behalf of owner or

operators of a CAIR NOx Ozone Season

source or a CAIR NOx Ozone Season

unit only if the submission has been

made, signed, and certified in

accordance with paragraph (e)(1) of this

section.

§96.311 Alternate CAIR designated

representative.

(a) A certificate of representation

under § 96.313 may designate one and

only one alternate CAIR designated

representative, who may act on behalf of

the CAIR designated representative. Thp

agreement by which the alternate CAIR

designated representative is selected

shall include a procedure for

authorizing the alternate CAIR

designated representative to act in lieu

of the CAIR designated representative.

(b) Upon receipt by the Administrator

of a complete certificate of

representationunder § 96.313, any

representation, action, inaction, or

submission by the alternate CAIR

designated representative shall be

deemed to be.a representation, action,

inaction, or submission by the CAIR

designated representative.

(c) Except in this section and

§§ 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 of this 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) Changing CAIR designated

representative. The CAIR designated

representative may be changed at any

time upon receipt by the Administrator

of a superseding complete certificate of

representation under § 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 be binding on the

new CAIR designated representative and

the owners and operators of the CAIR

NOx Ozone Season source and the CAIR

NOx Ozone Season units at the source.

(b) Changing alternate CAIR

designated representative. The alternate

CAIR designated representative may be

changed at any time upon receipt by the

Administrator of a superseding

complete certificate of representation

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 of representation

shall be binding on the new alternate

CAIR designated representative and the

owners and operators of the CAIR NOx

Ozone Season source and the CAIR NOx

Ozone Season units at the source.

(c) Changes in owners and operators.

(1) In the event a new owner or operator

of a CAIR NOx Ozone Season source or

.a CAIR 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

of representation, the representations,

actions, inactions, and submissions of

the CAIR designated representative and

any alternate CAIR designated

representative of the source or unit, and

the decisions and orders of the

permitting authority, the Administrator,

or a court, as if the new owner or

operator were included in such list.

(2) Within 30 days following any

change in the owners and operators of

a CAIR NOx Ozone Season source or a

CAIR NOx Ozone Season unit,

including the addition of a new owner

or operator, the CAIR designated

representative or any alternate CAIR

designated representative shall submit a

revision to the certificate of

representation under § 96.313 amending

the list of owners and operators to

include the change.

§96.313 Certificate of representation.

(a) A complete certificate of

representation for a CAIR designated

representative or an alternate CAIR

designated representative shall include

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the following elements in a format

prescribed by the Administrator:

(1) Identification of the CAIR NOx

Ozone Season source, and each CAIR

NOx Ozone Season unit at the source,

for which the certificate of

representation is submitted.

(2) The name, address, e-mail address

(if any), telephone number, and

facsimile transmission number (if any)

of the CAIR designated representative

and any alternate CAIR designated

representative.

(3) A list of the owners and operators

of the CAIR NOx Ozone Season source

and bf each CAIR NOx Ozone Season

unit at the source. (4) The following certification

statements by the CAIR designated

representative and any alternate CAIR

designated representative-

(i) "I certify that I was selected as the

CAIR designated representative or

alternate CAIR designated

representative, as applicable, by an

agreement binding on the owners and

operators of the source and each CAIR

NOx Ozone Season unit at the source."

(ii) "I certify that I have all the

necessary authority to carry out my

duties and responsibilities under the

CAIR NOx Ozone Season Trading

Program on behalf of the owners and

operators of the source and of each

CAIR NOx Ozone Season unit at the

source and that each such owner and

operator shall be fully bound by my

representations, actions, inactions, or

submissions."

(iii) "I certify that the owners and

operators of the source and of each

CAIR NOx Ozone Season unit at the

source shall be bound by any order

issued to me by the Administrator, the

permitting authority, or a court

regarding the source or unit."

(iv) "Where there are multiple holders

of a legal or equitable title to, or a

leasehold interest in, a CAIR NOx

Ozone Season unit, or where a customer

purchases power from a CAIR NOx

Ozone Season unit under a life-of-theunit, firm power contractual

arrangement, I certify that: I have given

a written notice of my selection as the

'CAIR designated representative' or

'alternate CAIR designated

representative', as applicable, and of the

agreement by which I was selected to

each owner and operator of the source

and of each CAIR NOx Ozone Season

unit at the source; and CAIR NOx Ozone

Season allowances and proceeds of

transactions involving CAIR NOx Ozone

Season allowances will be deemed to be

held or distributed in proportion to each

holder's legal, equitable, leasehold, or

contractual reservation or entitlement,

except that, if such multiple holders

have expressly provided for a different

distribution of CAIR NOx Ozone Season

allowances by contract, CAIR NOx

Ozone Season allowances and proceeds

of transactions involving CAIR NOx

Ozone Season allowances will be

deemed to be held or distributed in

accordance with the contract."

(5) The signature of the CAIR

designated representative and any

alternate CAIR designated

representative and the dates signed.

(b) Unless otherwise required by the

permitting authority or the

Administrator, documents of agreement

referred to in the certificate of

representation shall not be submitted to

the permitting authority or the

Administrator. Neither the permitting

authority nor the Administrator shall be

under any obligation to review or

evaluate the sufficiency of such

documents, if submitted.

§96.314 Objections concerning CAIR

designated representative.

(a) Once a complete certificate of

representation under § 96.313 has been

submitted and received, the permitting

authority and the Administrator will

rely on the certificate of representation

unless and until a superseding complete

certificate of representation under

§ 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, of the

CAIR designated representative shall

affect any representation, action,

inaction, or submission of the CAIR

designated representative or the finality

of any decision or order by the

permitting authority or the

Administrator under the CAIR NOx

Ozone Season Trading Program.

(c) Neither the permitting authority

nor the Adminigtrator will adjudicate

any private legal dispute concerning the

authorization or any representation,

action, inaction, or submission of any

CAIR designated representative,

including private legal disputes

concerning the proceeds of CAIR NOx

Ozone Season allowance transfers.

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 or required, under

subpart IIII of this part, to have a title

V operating permit or other federally

enforceable permit, such permit shall

include a CAIR perfnit administered by

the permitting authority for the title V

operating permit or the federally

enforceable permit as applicable. The

CAIR portion of the title V permit or

other federally enforceable permit as

applicable shall be administered in

accordance with the permitting

authority's title V operating permits

regulations promulgated under part 70

or 71 of this chapter or the permitting

authority's regulations for other

federally enforceable permits as

applicable, except as provided

otherwise by this subpart and subpart

IIII of this part.

(b) Each CAIR permit shall contain,

with regard to the CAIR NOx. Ozone

Season source and the CAIR NOx'Ozone

Season units at the source covered by

the CAIR permit, all applicable CAIR

NOx Ozone Season Trading Program,

CAIR NOx Annual Trading Program,

and CAIR S02 Trading Program .

requirements and shall be a complete

and separable portion of the title V

operating permit or other federally

enforceable permit under paragraph (a)

of this section.

§96.321 Submission of CAIR permit

applications.

(a) Duty to apply. The CAIR

designated representative of any CAIR

NOx Ozone Season source required to

have a title V operating permit shall

submit to the permitting authority a

complete CAIR permit application

under § 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 of January 1,

2009 or the date on which the CAIR

NOx Ozone Season unit commences

operation.

(b) Duty to Reapply. For a CAIR NOx

Ozone Season source required to have a

title V operating permit, the CAIR

designated representative shall submit a

complete CAIR permit application

under § 96.322 for the source covering

each CAIR NOx Ozone Season unit at

the source to renew the CAIR permit in

accordance with the permitting

authority's title V operating permits

regulations addressing permit renewal.

§ 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 a format prescribed by the

permitting authority:

(a) Identification of the CAIR NOx

Ozone Season source;

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(b) Identification of each 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 the permitting

authority, all elements required for a

complete CAIR permit application

under §.96.322.

(b) Each CAIR permit is deemed to

incorporate automatically the

definitions of terms under § 96.302 and,

upon recordation by the Administrator

under subpart FFFF, GGGG, or 1111 of

this part, every allocation, transfer, or

deduction of a CAIR NOx Ozone Season

allowance to or from the compliance

account of the CAIR NOx Ozone Season

source covered by the permit.

(c) The term of the CAIR permit will

be set by the permitting authority, as

necessary to facilitate coordination of

the renewal of the CAIR permit with

issuance, revision, or renewal of the

CAIR NOx Ozone Season source's title

V operating permit or other federally

.,enforceable permit as applicable.

§ 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 V operating permits

regulations or the permitting authority's

regulations for other federally

enforceable permits as applicable

addressing permit revisions.

Subpart DDDD-[Reserved]

Subpart EEEE-CAIR NOx Ozone

Season Allowance Allocations

§96.340 State trading budgets.

(a) Except as provided in paragraph

(b) of this section, the State trading

budgets for annual allocations of CAIR

NOx Ozone Season allowances for the

control periods in 2009 through 2014

-and in 2015 and thereafter are

respectively as follows:

State 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) of this chapter, the

amount in the State trading budget for

a control period in a calendar year will

be the sum of the amount set forth for

the State and for the year in paragraph

(a) of this section and the amount of

additional CAIR NOx Ozone Season

allowance allocations issued under

§ 51.123(aa)(2)(iii)(A) of this 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 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(a) and

(b), for the control period in the sixth

year after the year of the applicable

deadline* for submission under this

paragraph.

(2) If the 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 of CAIR

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 that the -

allocations equal 83 percent of the

allocations for the control period that

immediately precedes the applicable

control period.

(c)(1) By July 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) If the permitting authority fails to

submit to the Administrator the CAIR

NOx Ozone Season allowance

allocations in accordance with

paragraph (c)(1) of this section, the

Administrator will assume that the

allocations of CAIR 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 that the

allocations equal 83 percent of the

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) of this section for -

each CAIR NOx Ozone Season unit will

be:

(i) For units commencing operation

before January 1, 2001 the average of the

3 highest amounts of the unit's adjusted

control period heat input for 2000

through 2004, with the adjusted control

period heat input for each year

calculated as follows:

(A) If the unit is coal-fired during the

year, the unit's control period heat input

for such year is 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) of this -

section, the unit's control period heat

input for such year is multiplied by 40

percent.

(ii) For units commencing operation

on or after January 1,2001 and

operating each calendar year during a

period of 5 or more consecutive

calendar years, the average of the 3

highest amounts of the unit's total

converted control period heat input over

the first such 5 years. .

(2)(i) A unit's control period heat

input, and a unit's status as. coal-fired or

oil-fired, for a calendar year under

paragraph (a)(1)(i) of this section, and a

unit's total tons of NOx emissions

during a calendar year under paragraph

(c)(3) of this section, will be determined

in accordance with part 75 of this

chapter, to the extent the unit was

otherwise subject to'the requirements of

part 75 of this chapter for the year, or

will be based on the best available data

reported to the permitting authority for.

the unit, to the extent the unit was not

otherwise subject to the requirements of

part 75 of this chapter for the year.

(ii) A unit's converted control period

heat input for a calendar year specified

under paragraph (a)(1)(ii) of this section

equals:

(A) Except as provided in paragraph

(a)(2)(ii)(B) or (C) of this section, the

control period gross electrical output of

the generator or generators served by the

unit multiplied by 7,900 Btu/kWh, if the

unit is coal-fired for the year, or 6,675

Btu/kWh, if the unit is not coal-fired for

the year, and divided by 1,000,000 Btu/

mmBtu, provided that if a generator is

served by 2 or more units, then the gross

electrical output of the generator will be

attributed to each unit in proportion to

the unit's share of the total control

period heat input of such units for the

year;

(B) For a unit that is a boiler and has

equipment used to produce electricity

and useful thermal energy for industrial,

commercial, heating, or cooling

purposes through the sequential use of

energy, the total heat energy (in Btu) of

the steam produced by the boiler during•

the control period, divided by 0.8 and

by 1,000,000 Btu/mmBtu; or

(C) For a unit that is a combustion

turbine and has equipment used to

produce electricity and useful thermal

energy fbr industrial, commercial,

heating, or cooling purposes through the

sequential use of energy, the control

period gross electrical output of the

enclosed device comprising the

compressor, combustor, and turbine

multiplied by 3,414 Btu/kWh, plus the

total heat energy (in Btu) of the steam

produced by any associated heat

recovery steam generator during the

control period divided by 0.8, and with

the sum divided by 1,000,000 Btu/

mmBtu.

(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) of this section) a

total amount of CAIR NOx Ozone

Season allowances equal to 95 percent

for a control period during 2009 through

2014, and 97 percent for a control

period during 2015 and thereafter, of the

tons of NOx emissions in the State

trading budget under § 96.340 (except as

provided in paragraph (d) of this

section).

(2) The permitting authority will

allocate CAIR NOx Ozone Season

allowances to each CAIR NOx Ozone

Season unit under paragraph (b)(1) of

this section in an amount determined by

multiplying the total amount of CAIR

NOx Ozone Season allowances allocated

under paragraph (b)(1) of this section by

the ratio of the baseline heat input of

such CAIR NOx Ozone Season unit to

the total amount of baseline heat input

of all such CAIR NOx Ozone Season

units in the State and rounding to the

nearest whole allowance as appropriate.

(c) For each control period in 2009

and thereafter, the 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 not yet have a baseline heat

input (as determined under paragraph

(a) of this section), in accordance with

the following procedures:

(1) The permitting authority will

establish a separate new unit set-aside

for each control period. Each new unit

set-aside will be allocated CAIR NOx

Ozone Season allowances equal to 5

percent for a control period in 2009

through 2013, and 3 percent for a

control period in 2014 and thereafter, of

the amount of tons of NOx 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 of the control period in 2009

or the first control period after the

control period in which the CAIR NOx

Ozone Season unit commences

commercial operation and until the first

control period for which the unit is

allocated CAIR NOx Ozone Season

allowances under paragraph (b) of this

section. The CAIR NOx Ozone Season

allowance allocation request must be

submitted on or before April 1 before

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 a CAIR NOx Ozone Season

allowance allocation request under

paragraph (c)(2) of this 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 of NOx

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) of this 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 if the request meets, or is adjusted

by the permitting authority as necessary

to meet, the requirements of paragraphs

(c)(2) and (3) of this section.

(ii) On or after April 1 before the

control period, the permitting authority

will determine the sum of the CAIR

NOx Ozone Season allowances

requested (as adjusted under paragraph

(c)(4)(i) of this section) in all allowance

allocation requests accepted under

paragraph (c)(4)(i) of this section for the

controlperiod.

(iii) If the amount of CAIR 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) of this section, then

the permitting authority will allocate

the amount of CAIR NOx Ozone Season

allowances requested (as adjusted under

paragraph (c)(4)(i) of this section) to

each CAIR NOx Ozone Season unit

covered by an allowance allocation

request accepted under paragraph

(c)(4)(i) of this section.

(iv) If the amount of CAIR NOx Ozone

Season allowances in the new unit 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) of this section

the amount of the CAIR NOx Ozone

Season allowances requested (as

adjusted under paragraph (c)(4)(i) of this

section), multiplied by the amount of

CAIR NOx Ozone Season allowances in

the new unit set-aside for the control

period, divided by the sum determined

under paragraph (c)(4)(ii) of this section,

and rounded to the nearest whole

allowance as appropriate.

(v) The permitting authority will

notify each CAIR designated

representative that submitted an

allowance allocation request of the

amount of CAIR NOx Ozone Season

allowances (if any) allocated for the

control period to the CAIR NOx Ozone

Season unit covered by the request.

(d) If, after completion of the

procedures under paragraph (c)(4) of

this section for a control period, any

unallocated CAIR NOx Ozone Season

allowances remain in the new unit 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) of this

section an amount of CAIR NOx Ozone

Season allowances equal to the total

amount of such remaining unallocated

CAIR NOx Ozone Season allowances,

multiplied by the unit's allocation

under paragraph (b) of this section,

divided by 95 percent for a control

period during 2009 through 2014, and

97 percent for a control period during

2015 and thereafter, of the amount of

tons of NOx emissions in the 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 of accounts.

(a) Compliance accounts. Except as

provided in § 96.384(e), upon receipt of

a complete certificate of representation

under § 96.313, the Administrator will

establish a compliance account for the

CAIR NOx Ozone Season source for

which the certificate of representation

was submitted, unless the source

already has a compliance account.

(b) General accounts-(1) Application

for general account.

(i) Any person may apply to open a

general account for the purpose of

holding and transferring CAIR NOx

Ozone Season allowances. An

application for a' general account may

designate one and only one CAIR

authorized account representative and

one and only one alternate CAIR

authorized account representative who

may act on behalf of the CAIR

authorized account representative. The

agreement-by which the alternate CAIR

authorized account representative is

selected shall include a procedure for

authorizing the alternate CAIR

authorized account representative to act

in lieu of the CAIR authorized account

representative.

(ii) A complete application for a

general account shall be submitted to

the Administrator and shall include the

following elements in a format

prescribed by the Administrator:

(A) Name, mailing address, e-mail

address (if any), telephone number, and

facsimile transmission number (if any).

of the CAIR authorized account

representative and any alternate CAIR

authorized account representative;

(B) Organization name and type of

organization, if applicable;

(C) A list of all persons subject to a

binding agreement for. the CAIR

authorized account representative and

any alternate CAIR authorized account

representative to represent their

ownership interest with respect to the

CAIR NOx Ozone Season allowances

held in the general account;

(D) The following certification

statement by the CAIR authorized

account representative and any alternate

CAIR authorized account representative:

"I certify that I Was selected as the CAIR

authorized account representative or the

alternate CAIR authorized account

representative, as applicable, by an

agreement that is binding on all persons

who have an ownership interest with

respect to CAIR NOx Ozone Season

allowances held in the general account.

I certify that I have all the necessary

authority to carry out my duties and

responsibilities under the CAIR NOx

Ozone Season Trading Program on

behalf of such persons and that each

such person shall be fully bound by my

representations, actions, inactions, or

submissions and by any order or

decision issued to me by the

Administrator or a court regarding the

general account."

(E) The signature of the CAIR

authorized account representative and

any alternate CAIR authorized account

representative and the dates signed.

(iii) Unless otherwise required by the

permitting authority or the

Administrator, documents of agreement

referred to in the application for a

general account shall not be submitted

to the permitting authority or the

Administrator. Neither the permitting

authority nor the Administrator shall be

under any obligation to review or

evaluate the sufficiency of such

documents, if submitted.

(2) Authorization of CAIR authorized

account representative.

(i) Upon receipt by the Administrator

of a complete application for a general

account under paragraph (b)(1) of this

section:

(A) The Administrator will establish a

general account for the person or

persons for whom the application is

submitted.

(B) The CAIR authorized account

representative and any alternate CAIR

authorized account representative for

the general account shall represent and,

by his or her representations, actions,

inactions, or submissions, legally bind

each person who has an ownership

interest with respect to CAIR NOx

Ozone Season allowances held in the

general account in all matters pertaining

to the CAIR NOx Ozone Season Trading

Program, notwithstanding any

agreement between the CAIR authorized

account representative or any alternate

CAIR authorized account representative

and such person. Any such person shall

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be bound by any order or decision

issued to the CAIR authorized account

representative or any alternate CAIR

authorized account representative by

the Administrator or a court regarding

the general account,

(C) Any representation, action,

inaction, or submission by any alternate

CAIR authorized account representative

shall be deemed to be a representation,

action, inaction, or submission by the

CAIR authorized account representative.

(ii) Each submission concerning the

general account shall be submitted,

signed, and certified by the CAIR

authorized account representative or

any alternate CAIR authorized account

representative for the persons having an

ownership interest with respect to CAIR

NOx Ozone Season allowances held in

the general account. Each such

submission shall include the following

certification statement by the CAIR

authorized account representative or

any alternhte CAIR authorized account

representative! "I am authorized to

make this submission on behalf of the

persons having an ownership interest

with respect to the CAIR NOx Ozone

Season allowances held in the general

account. I certify under penalty of law

that I have personally examined, and am

familiar with, the statements and

information submitted in this document

and all. its attachments. Based on my

inquiry of those individuals with

primary responsibility for obtaining the

information, I certify that the statements

and information are to the best of my

knowledge and belief true, accurate, and

complete. I am aware that there are

significant penalties for submitting false

statements and information or omitting

required statements and information,

including the possibility of fine or

imprisonment."

(iii) The Administrator will accept or

act on a submission concerning the

general account only if the submission

has been made, signed, and certified in

accordance with paragraph (b)(2)(ii) of

this section.

(3) Changing CAIR authorized

account representative and alternate

CAIR authorized account

representative; changes in persons with

ownership interest.

(i) The CAIR authorized account

representative for a general account may

be changed at any time upon receipt by

the Administrator of a superseding

complete application for a general

account under paragraph (b)(1) of this -

section. Notwithstanding any such

change, all representations, actions,

inactions, and submissions by the

previous CAIR authorized account

representative before the time and date

when the Administrator receives the

superseding application for a general

account shall be binding on the new

CAIR authorized account representative

and the persons with an ownership

interest with respect to the CAIR NOx

Ozone Season allowances in the general

account.

(ii) The alternate CAIR authorized

account representative for a general

account may be changed at any time

upon receipt by the Administrator of a

superseding complete application for a

general account under paragraph (b)(1)

of this section. Notwithstanding any

such change, all representations,

actions, inactions, and submissions by

the previous alternate CAIR authorized

account representative before the time

and date when the Administrator

receives the superseding application for

a general account shall be binding on

the new alternate CAIR authorized

account representative and the persons

with an ownership interest with respect

to the CAIR NOx Ozone Season

allowances in the general account.

(iii)(A) In the event a new person

having an ownership interest with

respect to CAIR NOx Ozone Season

allowances in the general account is not

included in the list of such persons in

the application for a general account,

such new person shall be deemed to be

subject to and bound by the application

for a general account, the

representation, actions, inactions, and

submissions of the CAIR authorized

account representative and any alternate

CAIR authorized account representative

of the account, and the decisions and

orders of the Administrator or a court,

as if the 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

of persons, the CAIR authorized account

representative or any alternate CAIR

authorized account representative shall

submit a revision to the application for

a general account amending the list of

persons having an ownership interest

with respect to the CAIR NOx Ozone

Season allowances in the general

account to include the change.

(4) Objections concerning CAIR

authorized account representative.

(i) Once a complete application for a

general account under paragraph (b)(1)

of this section has been submitted and

received, the Administrator will rely on

the application unless and until a

superseding complete application for a

general account under paragraph (b)(1)

of this section is received by the

Administrator.

(ii) Except as provided in paragraph

(b)(3)(i) or (ii) of this section, no

objection or other communication

submitted to the Administrator

concerning the authorization, or any

rdpresentation, action, inaction, or

submission of the CAIR authorized

account representative or any

alternative CAIR authorized account

representative for a general account

shall affect any representation, action,

inaction, or submission of the CAIR

authorized account representative or

any alternative CAIR aithorized account

representative or the finality of any

decision or order by the Administrator

under the CAIR NOx Ozone Season

Trading Program.

(iii) The Administrator will not

adjudicate any private legal dispute

concerning the authorization or any

representation, action, inaction, or

submission of the CAIR authorized

account representative or any

alternative CAIR authorized account

representative for a general account,

including private legal disputes

concerning the proceeds of CAIR NO x

Ozone Season 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.

§96.352 Responsibilities of CAIR

authorized account representative.

Following the establishment of a

CAIR NOx Ozone Season Allowance

Tracking System account, all

submissions to the Administrator

pertaining to the account, including, but

not limited to, submissions concerning

the deduction or transfer of CAIR NOx

Ozone Season allowances in the

account, shall be made only by the CAIR

authorized account representative for

the account.

§96.353 Recordation of CAIR NOx Ozone

Season allowance allocations.

(a) By December 1, 2006, 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 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 NOx Ozone 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), for the

control period in 2015.

(c) In 2011 and each year thereafter,

after the Administrator has made all

deductions (if any) 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 in the sixth year after the

year of the control period for which

such deductions were or could have

been made.

(d) By September 1, 2009 and

September 1 of each year thereafter, the

Administrator will record in the CAIR •

NOx Ozone Season source's compliance

account the CAIR NOx Ozone Season

allowances allocated for the CAIR NOx

Ozone Season units at the source, as

submitted by the permitting authority or

determined by the-Administrator in*

accordance with § 96.341(c), for the

control period in the year of the

applicable deadline for recordation

under this paragraph.

(e) Serial numbers foi allocated CAIR

NOx Ozone Season allowances. When

recording the allocation of CAIR 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 a unique identification

number that will include digits

identifying the year of the control

period for which the CAIR NOx Ozone

Season allowance is allocated.

§ 96.354 Compliance with CAIR NOx

emissions limitation.

(a) Allowance transfer deadline. The

CAIR NOx Ozone Season allowances are

available to be deducted for compliance

with a source's CAIR NOx Ozone

Season emissions limitation for a

control period in a given calendar year

only if the CAIR NOx Ozone Season

allowances:

(1) Were allocated for the control

period in the year or a prior-year;

(2) Are held in the compliance

account as of the 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) of this

section.

(b) Deductions for compliance.

Following the recordation, in

accordance with § 96.361, of CAIR NOx

Ozone Season allowance transfers

submitted for recordation in a source's

compliance account by the allowance

transfer deadline for a control period,

the Administrator will deduct from the

compliance account CAIR NOx Ozone

Season allowances available under

paragraph (a) of this section in order to

determine whether the source meets the

CAIR NOx Ozone Season emissions

limitation for the control period, as

follows:

(1) Until the amount of CAIR NOx

Ozone Season allowances deducted

equals the number of tons of total

nitrogen oxides emissions, determined

in accordance with subpart HHHH of

this part, from all CAIR NOx Ozone

Season units at the source for the

control period; or

(2) If there are insufficient CAIR NOx

Ozone .Season allowances to complete

the deductions in paragraph (b)(1) of

this section, until no more CAIR NOx

Ozone Season allowances available'

under paragraph (a) of this section

remain in the compliance account.

(c)(1) Identification of CAIR NO x

Ozone Season allowances by. serial

number. The CAIR authorized account

representative. for a source's compliance

account may request that specific CAIR

NOx Ozone Season allowances,

identified by serial number, in the

compliance account be deducted for

emissions or excess emissions for a

control period in accordance with

paragraph (b) or (d) of this section. Such

request shall be submitted to the

Administrator by the allowance transfer

deadline for the control period and

include, in a format prescribed by the

Administrator, the identification of the

CAIR NOx Ozone Season source and the

appropriate serial numbers.

(2) First-in, first-out. The

Administrator will deduct CAIR NOx

Ozone Season allowances under

paragraph (b) or (d) of this section from

the source's compliance account, in the

absence of an identification or in the

case of a partial identification 'of CAIR

NOx Ozone Season allowances by serial

number under paragraph (c)(1) of this

section, on a first-in, first-out (FIFO) .accounting basis in the following order:

(i) Any CAIR NOx Ozone Season

allowances that were allocated to the

units at the source, in the order of

recordation; and then

(ii) Any CAIR NOx Ozone Season

allowances that were allocated to any

unit and transferred and recorded in the

compliance account pursuant to subpart

GGGG of this part, in the order of

recordation.

(d) Deductions for excess emissions.

(1) After making the deductions for

compliance under paragraph (b) of this

section for a control period in a calendar

year in which the CAIR NOx Ozone

Season source has excess emissions, the

Administrator will deduct from the

source's compliance account an amount

of CAIR NOx Ozone Season allowances,

allocated for the control period in the

immediately following calendar year,

equal to 3 times the number of tons of

the source's excess emissions.

(2) Any allowance deduction required

under paragraph (d)(1) of this section

shall not affect the liability of the

owners and operators of the CAIR NOx

Ozone Season source or the CAIR NOx

Ozone Season units at the source for any

fine, penalty, or assessment, or their

obligation to comply with any other

remedy, for the same violations, as

ordered under the Clean Air Act or

applicable State law.

(e) Recordation of deductions. The

Administrator will record in the

appropriate compliance account all

deductions from such an account under

paragraph (b) or (d) of this section.

(f) Administrator's action on

submissions. (1) The Administrator may

review and conduct independent audits

concerning any submission under the

CAIR NOx Ozone Season Trading

Program and make appropriate

adjustments of the information in the

submissions.

(2) The Administrator may deduct

CAIR NOx Ozone Season allowances

from or transfer CAIR NOx Ozone

Season allowances to a source's

compliance account based on the

information in the submissions, as

adjusted under paragraph (f)(1) of this

section.

§96.355 Banking.

(a) CAIR NOx Ozone Season

allowances may be banked for future

use or transfer in a compliance account

or a general account in accordance with

paragraph (b) of this section.

(b) Any CAIR NOx Ozone Season

allowance that is held in a compliance

account or a general account will

remain in such account unless and until

the CAIR NOx Ozone Season allowance

is deducted or transferred under

§ 96.354, § 96.356, or subpart GG of this

part.

§96.356 Account error.

The Administrator may, at his or her

sole discretion and on his or her own

.motion correct any error in any CAIR

NOx Ozone Season Allowance Tracking

System account. Within 10 business

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days of making 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 of a general account may

submit to the Administrator a request to

close the account, which shall include

a correctly submitted allowance transfer

under § 96.360 for any CAIR NOx Ozone

Season allowances in the account to one

or more other CAIR NOx Ozone Season

Allowance Tracking System accounts.

(b) If a general account has no

allowance transfers in or out of the

account for a 12-month period or longer

and does not contain any CAIR NOx

Ozone Season allowances, the

Administrator may notify the CAIR

authorized account representative for

the account that the account will be

closed following 20 business days after

the notice is sent. The account will be

closed after the 20-day period unless,

before the end of the 20-day period, the

Administrator receives a correctly

submitted transfer of CAIR NOx Ozone

Season allowances into the account

under § 96.360 or a statement submitted

by the CAIR authorized account

representative demonstrating to the

satisfaction of the Administrator good

cause as to why the aceount should not

be closed.

Subpart GGGG-CAIR NOx Ozone

Season Allowance Transfers

§96.360 Submission of CAIR NOx Ozone

Season allowance transfers.

A CAIR authorized account

representative seeking recordation of a

CAIR NOx Ozone Season allowance

transfer shall submit the transfer to the

Administrator. To be considered

correctly submitted, the CAIR NOx

Ozone Season allowance transfer shall

include the following elements, in a

format specified by the Administrator:

(a) The account numbers for both the

transferor and transferee accounts;

(b) The serial number of each CAIR

NOx Ozone Season allowance that is in

the transferor account and is to be

transferred; and . (c) The name and signature of the

CAIR authorized account representative

of the transferor account and the date

signed.

§ 96.361 EPA recordation.

(a) Within 5 business days (except as

provided in paragraph (b) of this

section) of receiving a CAIR NOx Ozone

Season allowance transfer, the

Administrator will record a CAIR NOx

Ozone Season allowance transfer by

moving each CAIR NOx Ozone Season

allowance from the transferor account to

the transferee account as specified by

the request, provided that:

(1) The transfer is correctly submitted

under § 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 not be recorded until after

the Administrator completes the

deductions under § 96.354 for the

control period immediately before such

allowance transfer deadline.

(c) Where a CAIR NOx Ozone Season

allowance transfer submitted for

recordation fails to meet the

requirements of paragraph (a) of this

section, the Administrator will not

record such transfer.

§ 96.362 Notification.

(a) Notification of recordation. Within

5 business days of recordation of a CAIR

NOx Ozone Season allowance transfer

under § 96.361, the Administrator will

notify the CAIR authorized account

representatives of both the transferor

and transferee accounts.

(b) Notification of non-recordation.

Within 10 business days of receipt of a

CAIR NOx Ozone'Season allowance

transfer that fails to meet the

requirements of § 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 of a 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 a CAIR NOx Ozone

Season unit, shall comply with the

monitoring, recordkeeping, and

reporting requirements as provided in

this subpart and in subpart H of part 75

of this chapter. For purposes of

complying with such requirements, the

definitions in § 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 of this chapter shall

be deemed to refer to the terms "CAIR

NOx Ozone Season unit," "CAIR

designated representative," and "continuous emission monitoring

system" (or "CEMS") respectively, as

defined in § 96.302. The owner or

operator of a unit that is not a CAIR

NOx Ozone Season unit but that is

monitored under § 75.72(b)(2)(ii) of this

chapter shall comply with the same

monitoring, recordkeeping, and

reporting requirements as a CAIR NOx

Ozone Season unit.

(a) Requirements for installation,

certification, and data accounting. The owner or operator of each CAIR NOx

Ozone Season unit shall:

(1) Install all monitoring systems

required under this subpart for

monitoring NOx mass emissions and

individual unit heat input (including all

systems required to monitor NOx

emission rate, NOx concentration, stack

gas moisture content, stack gas flow

rate, CO 2 or 02 concentration, and fuel

flow rate, as applicable, in accordance

with §§ 75.71 and 75.72 of this chapter);

(2) Successfully complete all

certification tests required under

§ 96.371 and meet all other

requirements of this subpart and part 75

of this chapter applicable to the

monitoking systems under paragraph

(a)(1) of this section; and

(3) Record, report, and quality-assure

the data from the monitoring systems

under paragraph (a)(1) of this section.

(b) Compliance deadlines. The owner or operator shall meet the monitoring

system certification and other

requirements of paragraphs (a)(1) and

(2) of this section on or before the

following dates. The owner or operator

shall record, report, and quality-assure

the data from the monitoring systems

under paragraph (,a)(1) of this section on

and after the following dates.

(1) For the owner or operator of a

CAIR NOx Ozone Season unit that

commences commercial operation

before July 1, 2007, by May 1, 2008.

(2) For the owner or operator of a

CAIR NOx Ozone Season unit that

commences commercial operation on or

after July 1, 2007 and that reports on an

annual basis under.§ 96.374(d), by the

later of the following dates:

(i) 90 unit operating days or 180

calendar days, whichever occurs first,

after the date on which the unit

commences commercial operation; or

(ii) May 1, 2008, if the compliance

date under paragraph (b)(2)(i) is before

May 1, 2008.

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(3) For the owner or operator of a

CAIR NOx Ozone Season unit that

commences operation on or after July 1,

2007 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 the unit

commences commercial operation; or

(ii) If the compliance date under

paragraph (b)(3)(i) of this section is not

during a control period, May 1

immediately following the compliance

date under paragraph (b)(3)(i) of this

section.

(4) For the owner or operator of a

CAIR NOx Ozone Season unit for Which

construction of a new stack or flue or

installation of add-on NOx emission

controls is completed after the

applicable deadline under paragraph

(b)(1), (2), (6), or (7) of this section and

that reports on an 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 of a

CAIR NOx Ozone Season unit for which

construction of a new stack or flue or

installation of add-on NOx'emission

controls is completed after the

applicable deadline under paragraph

(b)(1), (3), (6), or (7) of this section and

that reports on a control period basis

under § 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 or flue or add-on NOx emissions

controls; or

(ii) If the compliance date under

paragraph (b)(5)(i) of this section is not

-during a control period, May .1

immediately following the compliance

date under paragraph (b)(5)(i) of this

section.

(6) Notwithstanding the dates in

paragraphs (b)(1), (2), and (3) of this

section, for the owner or operator of a

unit for which a CAIR NOx Ozone

Season opt-in permit application is

submitted and not withdrawn and a

CAIR opt-in permit is not yet issued or

denied under subpart IIII of this part, by

the date specified in § 96.384(b).

(7) Notwithstanding the dates in

paragraphs (b)(1), (2), and (3) of this

section and solely for purposes of

§ 96.306(c)(2), for the owner or operator

of a 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) Reporting data. (1) Except as

provided in paragraph (c)(2) of this

section, the owner or operator of a CAIR

NOx Ozone Season unit that does not

meet the applicable compliance date set

forth in paragraph (b) of this section for

any monitoring system under paragraph

(a)(1) of this section'shall,_for each such

monitoring system, determine, 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 of this chapter, or section 2.5

of appendix E to part 75 of this chapter,

as applicable.

(2) The owner or operator of a CAIR

NOx unit that does not meet the

applicable compliance date set forth in

paragraph (b)(4) of this section for any

monitoring system inder paragraph

(a)(1) of this section shall, for-each such

monitoring system', determine, record,

and report substitute data using the

applicable missing data procedures in

§ 75.74(c)(7) of this chapter or subpart D

or subpart H of, or appendix D or

appendix E to,-part 75 of this chapter,

in lieu of the maximum potential (or, as

appropriate,.minimum potential) values,

for a parameter if the owner or operator

demonstrates that there is continuity

between the data streams for that

parameter before and after the

construction or installation under

paragraph (b)(4) of this section.

(d) Prohibitions. (1) No owner or

operator of a CAIR NOx Ozone Season

unit shall use any alternative

monitoring system, alternative reference

method, or any other alternative to any

requirement of this subpart without

having obtained prior written approval

in accordance with § 96.375.

(2) No owner or operator of a CAIR

NOx Ozone Season unit shall operate

the unit so as to discharge, or allow to

be discharged, NOx emissions to the

atmosphere without accounting for all

such emissions in accordance with the

applicable provisions of this subpart

and part 75 of this chapter.

(3) No owner or operator of a CAIR

NOx Ozone Season unit shall disrupt

the continuous emission monitoring

system, any portion thereof, or any other

approved emission monitoring method,

and thereby avoid monitoring and

recording NOx mass emissions

discharged into the atmosphere, except

for periods of recertification or periods

when calibration, quality assurance

testing, or maintenance is performed in

accordance with the applicable

provisions of this subpart and part 75 of

this chapter. (4) No owner or operator of a CAIR

NOx Ozone Season unit shall retire or

permanently discontinue use of-the

continuous emission monitoring system,

any component thereof, or any other

approved monitoring system under this

subpart, except under any one of the

following circumstances:

(i) During the period that the unit is

covered by an exemption under § 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 of this subpart

and part 75 of this 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 of certification testing of a

replacement monitoring system for the

retired or discontinued monitoring

system in accordance with

§ 96.371(d)(3)(i).

§96.371 Initial certification and

recertification procedures.

(a) The owner or operator of a CAIR

NOx Ozone Season unit shall be exempt

from the initial certification

requirements of this section for a

monitoring system under § 96.370(a)(1)

if the following conditions are met:

(1) The monitoring system has been

previously certified in accordance with

part 75 of this chapter; and

(2) The applicable quality-assurance

and quality-control requirements of

§ 75.21 of this chapter and appendix B,

appendix D, and appendix E to part 75

of this chapter are fully met fof the

certified monitoring system described in

paragraph (a)(1) of this section..

(b) The recertification provisions of

this section shall apply to a monitoring

system under § 96.370(a)(1) exempt

from initial certification requirements

under paragraph (a) of this section.

(c) If the Administrator has previously

approved a petition under § 75.17(a) or

(b) of this chapter for apportioning the

NOx emission rate measured in a

common stack or a petition under

§ 75.66 of this chapter for an alternative

to a requirement in § 75.12, § 75.17, or.

subpart H of part 75 of this 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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under the CAIR NOx Ozone Season

Trading Program.

(d) Except as provided in paragraph

(a) of this section, the owner- or operator

of a CAIR NOx Ozone Season unit shall

comply with the following initial

certification and recertification

procedures for a continuous monitoring

system (i.e., a continuous emission

monitoring system and an excepted

monitoring system under appendices D

and E to part 75 of this chapter) under

§ 96.370(a)(1). The owner or operator of

a 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

subpart E of part 75 of this chapter shall

comply with the procedures in

paragraph (e) or (f) of this section

respectively.

(1) Requirements for initial

certification. The owner or operator

shall ensure that each continuous

monitoring system under

§ 96.370(a)(1)(including the automated

data acquisition and handling system)

successfully completes all of the initial

certification testing required under

§ 75.20 of this chapter by the applicable

deadline in § 96.370(b). In addition,

whenever the owner or operator installs

a monitoring system to meet the

requirements of this subpart in a

location where no such monitoring

system was previously installed, initial

certification in accordance with § 75.20

of this chapter is required.

(2) Requirements for recertification.

Whenever the owner or operator makes

a replacement, modification, or change

in any certified continuous emission

monitoring system under §.96.370(a)(1)

that may significantly affect the ability

of the system to accurately measure or

rec6rd NOx mass emissions or heat

input rate or to meet the qualityassurance and quality-control

requirements of § 75.21 of this chapter

or appendix B to part 75 of this chapter,

the owner or operator shall recertify the

monitoring system in accordance with

§ 75.20(b) of this chapter. Furthermore,

whenever the owner or operator makes

a replacement, modification, or change

to the flue gas handling system or the

unit's operation that may significantly

change the 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) of this

chapter. Examples of changes to a

continuous emission monitoring system

that require recertification include:

Replacement of the analyzer, complete

replacement of an existing continuous

emission monitoring system, or change

in location or orientation of the

sampling probe or site. Any fuel

flowmeter systems, and any excepted

NOx monitoring system under appendix

E to part 75 of this chapter, under'

§ 96.370(a)(1) are subject to the

recertification requirements in

§ 75.20(g)(6) of this chapter.

(3) Approval process for initial

certification and recertification.

Paragraphs (d)(3)(i) through (iv) of this

section apply to both initial certification

and recertification of a continuous

monitoring system under § 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) of this

chapter in lieu of the procedures in

paragraph (d)(3)(v) of this section.

(i) Notification of certification. The

CAIR designated representative shall

submit to the permitting authority, the

appropriate EPA Regional Office, and

the Administrator written notice of the

dates of certification 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) Provisional certification date. The

provisional certification date for a

monitoring system shall be determined

in accordance with §*75.20(a)(3) of this

chapter. A provisionally certified .

monitoring system may be used under

the CAIR NOx Ozone Season Trading

Program for a period not to exceed 120

days after receipt by the permitting

authority of the coiplete certification

application for the monitoring system

under paragraph (d)(3)(ii) of this

section. Data measured and recorded by

the provisionally certified monitoring

system, in accordance with the

requirements of part 75 of this chapter,

will be considered valid quality-assured

data (retroactive to the date and time of

provisional certification), provided that

the permitting authority does not

invalidate the provisional certification

by issuing a notice of disapproval

within 120 days of the date of receipt of

the complete certification application by

the permitting authority..

(iv) Certification application approval

process. The permitting authority will

issue a written notice of approval or

disapproval of the certification

application to the owner or operator

within 120 days of receipt of the

complete certification application under

paragraph (d)(3)(ii) of this section. In the

event the 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 of this chapter

and is included in the certification

application will be deemed certified for

use under the CAIR NOx Ozone Season

Trading Program.

(A) Approval notice. If the

certification application is complete and

shows that each monitoring system

meets the applicable performance

requirements of part 75 of this chapter,

then the permitting authority will issue

a written notice of approval of the

certification application within 120

days of receipt.

(B) Incomplete application notice. If

the certification application is not

complete, then the 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) of this section. The 120-day

review period shall not begin before

receipt of a complete certification

application.

(C) Disapproval notice. If the

certification application shows that any

monitoring system does not meet the

performance requirements of part 75 of

this chapter or if the certification

application is incomplete and the

requirement for disapproval under

paragraph (d)(3)(iv)(B) of this section is

met, then the permitting authority will

issue a written notice of disapproval of

the certification application. Upon

issuance of such notice of disapproval,

the provisional certification is

invalidated by the 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 of provisional certification (as

defined under § 75.20(a)(3) of this

chapter). The owner or operator shall

follow the procedures for loss of

certification in paragraph (d)(3)(v) of

this section for each monitoring system

that is disapproved for initial

certification.

(D) Audit decertification. The

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

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CAIR opt-in permit is not yet issued or

denied under subpart 1111 of this part,

the Administrator may issue a notice of

disapproval of the certification status of

a monitor in accordance with

§ 96.372(b).

(v) Procedures for loss of certification.

If the permitting authority or the

Administrator issues a notice of

disapproval of a certification

application under paragraph

(d)(3)(iv)(C) of this section or a notice of

disapproval of certification status under

paragraph (d)(3)(iv)(D) of this section,

then:

(A) The owner or operator shall

substitute the following values, for each

disapproved monitoring system, for

each hour of unit operation during the

period of invalid data specified under

§ 75.20(a)(4)(iii), § 75.20(g)(7), or

§.75.2-1(e) of this dhapter and continuing

until the applicable date and hour

specified under § 75.20(a)(5)(i) or (g)(7)

of this chapter:

(1) For a disapproved NOx emission

rate (i.e., NOx-diluent) system,the

maximum potential NOx emission rate,

as defined in § 72.2 of this chapter.

(2) For a disapproved NOx pollutant

concentration monitor and disapproved

flow monitor, respectively, the

maximum potential concentration of

NOx and the maximum potential flow

rate, as defined in sections 2.1.2.1 and

2.1.4.1 of appendix A to part 75 of this

chapter.

(3) For a disapproved moisture

monitoring system and disapproved

diluent gas monitoring system,

respectively, the minimum potential

moisture percentage and either the

maximum potential 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 of this chapter.

(4) For a disapproved fuel flowmeter

system, the maximum potential fuel

flow rate, as defiried in section 2.4.2.1

of appendix D to part 75 of this chapter.

(5) For a disapproved excepted NOx

monitoring system under appendix E to

part 75 of this chapter, the fuel-specific

maximum potential NOx emission rate,

as defined in § 72.2 of this chapter.

(B) The CAIR designated

representative shall submit a

notification of certification retest dates

and a new certification application in

accordance with paragraphs (d)(3)(i) and

(ii) of this section.

(C) The owner or operator shall repeat

all certification tests or other

requirements that were failed by the

monitoring system, as indicated in the

permitting authority's or the

Administrator's notice of disapproval,

no later than 30 unit operating days

after the date of issuance of the notice

of disapproval.

(e) Initial certification and

recertification procedures for units

using the low mass emission excepted

methodology under § 75.19 of this

chapter. The owner or operator of a unit

qualified to use the low mass emissions

-(LME) excepted methodology under

§ 75.19 of this chapter shall meet the

applicable certification and

recertification requirements in

§§ 75.19(a)(2) and 75.20(h) of this

chapter. If the owner or operator of such

a unit elects to certify a fuel flowmeter

system for heat input determination, the

owner .or operator shall also meet the

certification and recertification

requirements in § 75.20(g) of this

chapter. (If) Certificationlrecertification

procedures for alternative monitoring

systems. The CAIR designated

representative of each unit for which the

owner or operator intends to use an

alternative monitoring system approved

by the Administrator and, if applicable,

the permitting authority under subpart E

of part 75 of this chapter shall comply

with the applicable notification and

application procedures of § 75.20(f) of

.this chapter.

§96.372 Out of control periods.

(a) Whenever any monitoring system

fails to meet the quality-assurance and

quality-control requirements or data

validation requirements of part 75 of

this chapter, data shall be substituted

using the applicable missing data

procedures in subpart D or subpart H of,

br appendix D or appendix E to, part 75

of this chapter.

(b) Audit decertification. Whenever

both an audit of a monitoring system

and a review of the initial certification

or recertification application reveal that

any monitoring system should not have

been certified or recertified because it

did not meet a particular performance

specification or other requirement under

§ 96.371 or the applicable provisions of

part 75 of this chapter, both at the time

of the initial certification or

recertification application submission

and at the time of the audit, the

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 not yet 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 of this paragraph, an audit

shall be either a field audit or an audit

of any information submitted to the

permitting authority or the

Administrator. By issuing the notice of

disapproval, the permitting authority or

the Administrator revokes prospectively

the certification status of-the monitoring

system. The data measured and

recorded by the monitoring system shall

not be considered valid quality-assured

data from the date of issuance of the

notification of the revoked certification

status until the date and time that the

owner or operator completes

subsequently approved initial

certification or recertification tests for

the monitoring system. The owner or

operator shall follow the applicable

initial certification or recertification

procedures in § 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 of this chapter,

except that if the unit is not subject to

an Acid Rain emissions limitation, the

notification is only required to be sent

to the permitting authority.

§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 of this

chapter, and the requirements of

§ 96.310(e)(1).

• (b) Monitoring plans. The owner or

operator of a CAIR NOx Ozone Season

unit shall comply with requirements of

§ 75.73(c) and (e) of this chapter. and, for

a unit for which a CAIR opt-in permit

application is submitted and not

withdrawn and a CAIR opt-in permit is

not yet issued or denied under subpart

IIII of this part, §§ 96.383 and 96.384(a).

(c) Certification applications. 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 of this chapter. (d) Quarterly reports. The CAIR

designated representative shall submit

quarterly reports, as follows:

(1.) If the CAIR NOx Ozone Season

unit is subject to an Acid Rain

emissions limitation or a CAIR NOx

emissions limitation or if the owner or

operator of such unit chooses to report

on an annual basis under this subpart,

the CAIR designated representative shall

meet the requirements of subpart H of

part 75 of this chapter (concerning

monitoring of NOx mass emissions) for

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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

prescribed by the Administrator, for

each calendar quarter beginning with:

(i) For a unit that commences

commercial operation before July 1,

2007, the calendar quarter covering May

1, 2008 through June 30, 2008; or

(ii) For a unit that commences

commercial operation on or after July 1,

2007, the calendar quartet

corresponding to the earlier of the date

of provisional certification or the

applicable deadline for initial

certification under § 96.370(b), unless

that quarter is the third or fourth quarter

of 2007, in which case reporting shall

commence in the quarter covering May

1, 2008 through June'30, 2008.

(2) If the CAIR NOx Ozone Season

unit is not subject to an Acid Rain

emissions limitation or a CAIR NOx

emissions limitation, then the CAIR

designated representative shall either:

(i) Meet the requirements of subpart H

of part 75 (concerning monitoring of

NOx mass emissions) for such unit for

the entire year and report the NOx mass

emissions data and heat input data for

such unit in accordance with paragraph

(d)(1) of this section; or

(ii) Meet the requirements of subpart

H of part 75 for the control period

(including the requirements in

§ 75.74(c) of this chapter) and report

NOx mass emissions data and heat

input data (including the data described

in § 75.74(c)(6) of this chapter) for such

unit only for the control period of each

year and report, in an electronic

quarterly report in a format prescribed

by the Administrator, for each calendar

quarter beginning with:

(A) For a unit that commences

commercial operation before July 1,

2007, the calendar quarter covering May

1, 2008 through June 30, 2008;

(B) For a unit that commences

commercial operation on or after July 1,

2007, the calendar quarter

corresponding to the earlier of the date

of provisional certification or the

applicable deadline for initial

certification under § 96.3 70(b), unless

that date is not during a control period,

in which case reporting shall commence

in the quarter that includes May 1

through June 30 of the first control

period after such date.

(2) The CAIR designated

representative shall submit each

quarterly report to the Administrator

within 30 days following the end of the

calendar quarter covered by the report.

Quarterly reports shall be submitted in'

the manner specified in § 75.73(f) of this

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 or CAIR SO 2

Trading Program, quarterly reports shall

include the applicable data and

information required by subparts F

through H of part 75 of this chapter as

applicable, in addition to the NOx mass

emission data, heat input data, and

other information required by this

subpart.

(e) Compliance certification. The

CAIR designated representative shall

submit to the Administrator a

compliance certification (in a format

prescribed by the Administrator) in

support of each quarterly report based

on reasonable inquiry of those persons

with primary responsibility for ensuring

that all of the unit's emissions are

correctly and fully monitored. The

certification shall state that:

(1) The monitoring data submitted

were recorded in accordance with the

applicable requirements of this subpart

and part 75 of this chapter, including

the quality assurance procedures and

specifications;

(2) For a utnit with add-on NOx

emission controls and for all hours

where NOx 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 B to part 75 of this

chapter and the substitute data values

do not systematically underestimate

NOx.emissions; and

(3) For a unit that is reporting on a

control period basis under paragraph

(d)(2)(ii) of this section, the NOx

emission rate and NOx concentration

values substituted for missing data

under subpart D of part 75 of this

chapter are calculated using only values

from a control period and do not

systematically underestimate NOx.

emissions.

§ 96.375 Petitions.

(a) Except as providedin paragraph

(b)(2) of this section, the CAIR

designated representative of a CAIR

NOx Ozone Season unit that is subject

to an Acid Rain emissions limitation

may submit a petition under § 75.66 of

this chapter to the Administrator

requesting approval to apply an

alternative to any requirement of this

subpart. Application of an alternative to

any requirement of this subpart is in

accordance with this subpart only to the

extent that the petition is approved in

writing by the Administrator, in

consultation with the permitting

authority.

(b)(1) The CAIR designated

representative of a CAIR NOx Ozone

Season unit that is not subject to an

Acid Rain emissions limitation may

submit a petition under § 75.66 of this

chapter to the permitting authority and

the Administrator requesting approval

to apply an alternative to any

requirement of this subpart. Application

of an alternative to any requirement of

this subpart is in accordance with this

subpart only to the extent that the

petition is approved in writing by both

the permitting authority and the

Administrator.

(2) The CAIR designated

representative of a CAIR NOx Ozone

Season unit that is subject to an Acid

Rain emissions limitation may submit a

petition under § 75.66 of this chapter to

the permitting authority and the

Administrator requesting approval to

apply an alternative to a requirement

concerning any additional continuous

emission monitoring system required

under § 75.72 of this chapter.

Application of an 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 Additional requirements to

provide heat input data.

The owner or operator of a 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 at the unit level using the

procedures set forth in part 75 of this

chapter.

Subpart III-CAIR NOx Ozone Season

Opt-in Units

§96.380 Applicability.

A CAIR NOx Ozone Season opt-in

unit must be a unit that:

(a) Is located in the State;

(b) 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;

(c) Is not covered by a retired unit

exemption under § 72.8 of this chapter

that is in effect;

(d) Has or is required or qualified to

have a title V operating permit or other

federally enforceable permit; and

(e) Vents all of its emissions to a stack

and can meet the monitoring,

recordkeeping, and reporting

requirements of subpart HHHH of this

part.

§ 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 of this part, a CAIR NOx Ozone

Season opt-in unit shall be treated as a

CAIR NOx Ozone Season unit for

purposes of applying such sections and

subparts of this part.

(b) Solely for purposes of applying, as

provided in this subpart, the

requirements of subpart HHHH of this

part to a unit for which a CAIR opt-in

permit application is submitted and not

withdrawn and a CAIR opt-in permit is

not yet issued or denied under this

subpart, such unit shall be treated as a

CAIR NOx Ozone Season unit before

issuance of a CAIR opt-in permit for

such unit.

§ 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 or more CAIR NOx Ozone Season

units shall have the same CAIR

designated representative and alternate'

CAIR designated representative as such

CAIR NOx Ozone Season units.

§96.383 Applying for CAIR opt-in permit.

(a) Applying for initial CAIR opt-in

permit. The CAIR designated

repr6sentative of a unit meeting the

requirements for a 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) A certification, in a format

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 a retired unit

exemption under § 72.8 of this chapter

that is in effect;

(iii) Vents all of its emissions to a

stack; and

(iv) Has documented heat input for

more than 876 hours during the 6

months immediately preceding

submission of the CAIR permit

application under § 96.322;

(3) A monitoring plan in accordance

with subpart HHHH of this 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 unit be allocated CAIR NOx

Ozone Season allowances Under

§ 96.388(c) (subject to the conditions in

§§ 96.384(h) and 96.386(g)).

(b) Duty to reapply. (1) The CAIR

designated representative of a CAIR

NOx Ozone Season opt-in unit shall

submit a complete CAIR permit

application under § 96.3,22 to renew the

CAIR opt-in unit permit in accordance

with the permitting authority's

regulations for title V operating permits,

or the permitting authority's regulations

for other federally. enforceable permits if

applicable, addressing permit renewal.

(2) Unless the permitting authority

issues a notification of acceptance of

withdrawal of the CAIR 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 is required for

renewal of the CAIR opt-in permit under

paragraph (b)(1) of this section.

§96.384 Opt-in process.

The permitting authority will issue or

deny a CAIR opt-in permit for a unit for

which an initial application for a CAIR

opt-in permit under § 96.383 is

submitted in accordance with the

following:

(a) Interim review of monitoring plan.

The permitting authority and the

Administrator will determine, on an

interim basis, the sufficiency of the

monitoring plan accompanying the

initial application for a CAIR opt-in

permit under § 96.383. A monitoring

plan is sufficient, for purposes of

interim review, if the plan appears to

contain information demonstrating that

the NOx emissions rate and heat input

of the unit and all other applicable

parameters are monitored and reported

in accordance with subpart HHHH of

this part. A determination of sufficiency

shall not be construed as acceptance or

approval of the monitoring plan.

(b) Monitoring and reporting. (1)(i) If

the permitting authority, and the

Administrator determine that the

monitoring plan is sufficient under

paragraph (a) of this section, the owner

or operator shall monitor and report the

NOx emissions rate and the heat input

of the unit emissions rate and- the heat

input of the unit and all other

applicable parameters, in accordance

with subpart HHHH of this part, starting

on the date of certification of the

appropriate monitoring systems under

subpart HHHH of this.part and.

continuing until a CAIR opt-in permit is

denied under §-96.384(f) or, if a CAIR

opt-in permit is issued, the date and

time when the unit is withdrawn from

the CAIR NOx Ozone Season Trading

Program in accordance with § 96.386.

(ii) The monitoring and reporting

under paragraph (b)(1)(i) of this section

shall include the entire control period

immediately before the date on which

the unit enters the CAIR NOx Ozone

Season Trading Program under

§ 96.384(g), during which period

monitoring system availability must not

be less than 90 percent under subpart

HHHH of this part and the unit must be

in full compliance with any applicable

State or Federal emissions or emissionsrelated requirements.

(2) To the extent the NOx emissions

rate and the heat input of the unit are

monitored and reported in accordance

with subpart HHHfI of this part for one

or more control periods, in addition to

the control period under paragraph

(b)(1)(ii) of this section; during which

control periods monitoring system

availability is not less than 90 percent

under subpart HHHH of this part and

the unit is in full compliance with any

applicable State or Federal emissions or

emissions-related requirements and

which control periods begin not more

than 3 years before the unit enters the

CAIR NOx Ozone Season Trading

Program under § 96.384(g), such

information shall be used as provided in

paragraphs (c) and (d) of this section.

(c) Baseline heat input. The unit's

baseline heat rate shall equal:

(1) If the unit's NOx emissions rate

and heat input are monitored and

reported for only one control period, in,

accordance with paragraph (b)(1) of this

section, the unit's total heat input (in

mmBtu) for the control period; or

(2) If the unit's NOx emissions rate

and heat input are monitored and

reported for more than one control

period, in accordance with paragraphs

(b)(1) and (2) of this section, the average

of the amounts of the unit's total heat

input (in nunBtu) for the control period

under paragraph (b)(1)(ii) of this section

and the control periods under paragraph

(b)(2) of this section.

(d) Baseline NOx emission rate. The

unit's baseline NOx emission rate shall

equal:

(1) If the unit's NOx emissions rate

and heat input are monitored and

reported for only one control period, in

accordance with paragraph (b)(1) of this

section, the unit's NOx emissions rate

' (in lb/mmBtu) for the control period;

(2) If the unit's NOx emissions rate

and heat input are monitored and

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reported for more than one control

period, in accordance with paragraphs

(b)(1) and (2) of this section, and the

unit do~s not have add-on NOx

emission controls during any such

control periods, the average of the

amounts of the unit's NOx emissions

rate (in lb/mmBtu) for the control period

under paragraph (b)(1)(ii) of this section

and the control periods under paragraph

(b)(2) of this 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) of this section, and the

unit has add-on NOx emission controls

during any such control periods, the

average of the amounts of the unit's

NOx emissions rate (in lb/mmBtu) for

such control period during which the

unit has add-on NOx emission controls.

(e) Issuance of CAIR opt-in permit.

After calculating the baseline heat input

and the baseline NOx emissions rate for

the unit under paragraphs (c) and (d) of

this section and if the permitting

authority determines that the CAIR

designated representative shows that the

unit meets the requirements for a CAIR

NOx Ozone Season opt-in unit in

§ 96.380 and meets the elements

certified in § 96.383(a)(2), the permitting

authority will issue a CAIR opt-in

permit. The permitting authority will

provide a copy of the CAIR opt-in

permit to the Administrator, who will

then establish a compliance account for

the source that includes the CAIR NOx

Ozone Season opt-in unit unless the

source already has a compliance

account.

(f) Issuance of denial of CAIR opt-in

permit. Notwithstanding paragraphs (a)

through (e) of this section, if at any time

before issuance of a CAIR opt-in permit

for the unit, the permitting authority

determines that the CAIR designated

representative fails to show that the unit

meets the requirements for a CAIR NOx

Ozone Season opt-in unit in § 96.380 or

meets the elements certified in

§ 96.383(a)(2), the permitting authority

will issue a denial of a CAIR opt-in

permit for the unit.

(g) Date of entry into CAIR NOx

Ozone Season Trading Program. A unit

for which an initial CAIR opt-in permit

is issued by the permitting authority

shall become a CAIR NOx Ozone Season

opt-in unit, and a CAIR NOx Ozone

Season unit, as of the later of May 1,

2009 or May 1 of the first control period

during which'such CAIR opt-in permit

is issued, (h) Repowered CAIR NOx Ozone

Season opt-in unit. (1) If CAIR

designated representative requests, and

the permitting authority issues a CAIR

opt-in permit providing for, allocation

to a CAIR NOx Ozone Season opt-in

unit of CAIR NOx Ozone Season

allowances under § 96.388(c) and such

unit is repowered after its date of entry

into the CAIR NOx Ozone Season

Trading Program under paragraph (g) of

this section, the repowered unit shall be

treated as a CAIR NOx Ozone Season

opt-in unit replacing the original CAIR

NOx Ozone Season opt-in unit, as of the

date of start-up of the repowered unit's

combustion chamber.

(2) Notwithstanding paragraphs (c)

and (d) of this section, as of the date of

start-up under paragraph (h)(1) of this

section, the repowered unit shall be

deemed to have the same date of

commencement of operation, date of

commencement of commercial

operation, baseline heat input, and

baseline NOx emission rate as the

original CAIR NOx Ozone Season opt-in

unit, and the original CAIR NOx Ozone

Season opt-in unit shall no longer be

treated as a CAIR 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 of the

unit must comply with, the

requirements of § 96.387.

(b) Each CAIR opt-in permit is

deemed to incorporate automatically the

definitions of terms under § 96.302 and,

upon recordation by the Administratorunder subpart FFFF or GGGG of this

part or this subpart, every allocation,

transfer, or deduction of CAIR NOx -

Ozone Season allowances to or from the

compliance account of the source that

includes a CAIR NOx Ozone Season 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) of this section, a CAIR NOx Ozone

Season opt-in unit may withdraw from

'the CAIR NOx Ozone Season Trading

Program, but only if the permitting

authority issues a notification to the

CAIR designated representative of the

CAIR NOx Ozone Season opt-in unit of

the acceptance of the withdrawal of the

CAIR NOx Ozone Season opt-in unit in

accordance with paragraph (d) of this

section.

(a) Requesting withdrawal. In order to

withdraw a CAIR opt-in unit from the

CAIR NOx Ozone Season Trading

Program, the CAIR designated

representative of the CAIR NOx Ozone

Season opt-in unit shall submit to the

permitting authority a request to

withdraw effective as of midnight of

September 30 of a specified calendar

year, which date must be at least 4 years

after September 30 of the year of entry

into the CAIR NOx Ozone Season

Trading Program under § 96.384(g). The

request must be submitted no later than

90 days before the requested effective

date of withdrawal.

(b) Conditions for withdrawal. Before

a CAIR NOx Ozone Season opt-in unit

covered by a request under paragraph

(a) of this section may withdraw from

the CAIR NOx Ozone Season Trading

Program and the CAIR opt-in permit

may be terminated under paragraph (e)

of this section, the following conditions

must be met:

(1) For the control period ending on

the date on which the withdrawal is to

be effective, the source that includes the

CAIR NOx Ozone Season opt-in unit

must meet the requirement to hold CAIR

NOx Ozone Season allowances under

§ 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 of the 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. If there are

no remaining CAIR NOx .Ozone Season

units at the source, the Administrator

will close-the compliance account, and

the owners and operators of the CAIR

NOx Ozone Season opt-in unit may

submit a CAIR NOx Ozone Season

allowance transfer for any remaining

CAIR NOx Ozone Season allowances to

another CAIR NOx Ozone Season

Allowance Tracking System in

accordance with subpart GGGG of this

part.

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(c) Notification. (1) After the

requirements for withdrawal under

paragraphs (a) and (b) of this section are

met (including deduction of the full

amount of CAIR NOx Ozone Season

allowances required), the permitting

authority will issue a notification to the

CAIR designated representative of the

CAIR NOx Ozone Season opt-in unit of

the acceptance of the withdrawal of the

CAIR NOx Ozone Season opt-in unit as

of midnight on September 30 of the

calendar year for which the withdrawal

was requested.

(2) If the requirements for withdrawal

under paragraphs (a) and (b) of this

section are not met, the permitting

authority will issue a notification to the

CAIR designated representative of the

CAIR NOx Ozone Season opt-in unit

that the CAIR NOx Ozone Season optin unit's request to withdraw is denied.

Such CAIR NOx opt-in unit shall

continue to be a CAIR NOx Ozone

Season opt-in unit.

(d) Permit amendment. After the

permitting authority issues a

notification under paragraph (c)(1) of

this section that the requirements for

withdrawal have been met, the

permitting authority will revise the

CAIR permit covering the CAIR NOx

Ozone Season opt-in unit to terminate

the CAIR opt-in permit for such unit as

of the effective date specified under

paragraph (c)(1) of this section. The unit

shall continue to be a CAIR NOx Ozone

Season opt-in unit until the effective

date of the termination and shall

comply with all requirements under the

CAIRNOx Ozone Season Trading

Program concerning any control periods

for which the unit is a CAIR NOx Ozone

Season opt-in unit, even if such

requirements arise or must be complied

with aftei the withdrawal takes effect.

(e) Reapplication upon failure to meet

conditions of withdrawal. 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) of this section.

(f) Ability to reapply to the CAIR NOx

Ozone Season Trading Program. Once a

CAIR NOx Ozone Season opt-in unit

withdraws from the CAIR NOx Ozone

Season Trading 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) Inability to withdraw.

Notwithstanding paragraphs (a) through

(f) of this section, a CAIR NOx Ozone

Season opt-in unit shall not be eligible

to withdraw from the CAIR NOx Ozone

Season Trading Program if the CAIR

designated representative of the CAIR

NOx opt-in unit requests, 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 in regulatory status.

(a) Notification. If a CAIR NOx Ozone

Season opt-in unit becomes a CAIR NOx

Ozone Season unit under § 96.304, then

the CAIR designated representative shall

notify in writing the permitting

authority and the Administrator of such

change in the CAIR NOx Ozone Season

opt-in unit's regulatory status, within 30

days of such change.

(b) Permitting authority's and

Administrator's actions. (i) If a 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 optin unit's CAIR opt-in permit to meet the

requirements of a CAIR permit under

§ 96.323 as of the 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 of the

source that includes the CAIR NOx

Ozone Season opt-in unit that becomes

a CAIR NOx Ozone Season unit under

§ 96.304, CAIR NO x 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) If the 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 of the 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 unit under § 96.304 divided by

the total number of days in the control

period and rounded to the nearest

whole allowance as appropriate.

(ii) The CAIR designated

representative shall ensure that the

compliance account of the source that

includes the CAIR NOx Ozone Season

unit that becomes a CAIR NOx Ozone

Season unit under § 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 NOx Ozone 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) of this section, if the 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 of CAIR NOx

Ozone Season allowances will be

allocated to the CAIR NOx Ozone

Season opt-in unit (as a CAIR NOx

Ozone Season unit) under § 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 of CAIR NOx Ozone

Season allowances otherwise allocated

to the CAIR NOx Ozone Season opt-in

unit (as a CAIR NOx Ozone Season unit)

under § 96.342 for the control period

multiplied by;

(B) The ratio of the number of days,

in the control period, starting with the

date on which the CAIR NOx Ozone

Season opt-in unit becomes a CAIR NOx

Ozone Season unit under § 96.304,

divided by the total number of days in

the control period; and

(C) Rounded to the nearest whole

allowance as appropriate.

§96.388 NOx allowance allocations to

CAIR NOx Ozone Season opt-in units.

(a) Timing requirements. (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 for the

control period in which a CAIR NOx

Ozone Season opt-in unit enters the

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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 of the

control period in which a CAIR opt-in

unit enters the CAIR NOx Ozone Season

Trading Program under § 96.384(g) and.

July 31 of each year thereafter, the

permitting authority will allocate CAIR

NOx Ozone Season allowances to the

CAIR NOx Ozone Season opt-in unit,

and submit to the Administrator the

allocation fgr the control period that

includes such submission deadline and

in which the unit is a CAIR NOx optin unit, in accordance with paragraph

(b)or (c) of this section.

(b) Calculation of allocation. For each

control period for which a CAIR NOx

Ozone Season opt-in unit is to be

allocated CAIR NOx Ozone Season

allowances, the permitting authority

will allocate in accordance with the

following procedures:

(1) The heat input (in mmBtu) used

for calculating the CAIR NOx Ozone

Season allowance allocation will be the

lesser of:

(i) The CAIR NOx Ozone Season optin unit's baseline heat input determined

under § 96.384(c); or (ii) The CAIR NOx Ozone Season optin unit's heat input, as determined in

accordance with subpart HHHH of this

part, for the immediately prior control

period, except when the allocation is

being calculated for the control period

in which the CAIR NOx Ozone Season

opt-in unit enters the CAIR NOx Ozone

Season Trading Program under

§ 96.384(g).

(2) The NOx emission rate (in lb/

mmBtu) used for calculating CAIR NOx

Ozone Season allowance allocations

will be the lesser of:

(i) The CAIR NOx Ozone Season 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 for which CAIR NOx

Ozone Season allowances are to be

allocated.

(3) The permitting authority will

allocate CAIR NOx Ozone Season

allowances to the CAIR NOx Ozone

Season opt-in unit in an amount

equaling the heat input under paragraph

(b)(1) of this section, multiplied by the

NOx emission rate under. paragraph

(b)(2) of this section, divided by 2,000

lb/ton, and rounded to the nearest

whole allowance as appropriate.

(c) Notwithstanding paragraph (b) of

this section and if the CAIR designated

representative requests, and the

permitting authority issues a CAIR 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 (in mmBtu) used for

calculating CAIR NOx Ozone Season

allowance allocations will be

determined as described in paragraph

(b)(1) of this section.

(ii) The NOx emission rate (in lb/

mmBtu) used for calculating CAIR NOx

Ozone Season allowance allocations

will be the lesser of:

* (A) The CAIR NOx Ozone Season optin unit'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 in which the CAIR

NOx Ozone Season opt-in unit 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) of this section, multiplied by the

NOx emission rate.under paragraph

(c)(1)(ii) of this section, divided by

2,000 lb/ton, and rounded to the nearest

whole allowance as appropriate.

(2) For each control period in 2015

and thereafter for which the CAIR NOx

Ozone Season opt-in unit is to be

allocated CAIR NOx Ozone Season

allowances,

(i) The heat input (in mmBtu) used for

calculating the CAIR NOx Ozone Season

allowance allocations will be

determined as described in paragraph

(b)(1) of this section.

(ii) The NOx emission rate (in lb/

mmBtu) used for calculating the CAIR

NOx Ozone Season allowance allocation

will be. the lesser of:

(A) 0.15 lb/mmBtu;

(B) The CAIR NOx Ozone Season 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 for which CAIR NOx

Ozone Season allowances are to be

allocated.

(iii) The permitting authority will

allocate CAIR NOx Ozone Season

allowances to the CAIR NOx Ozone

Season opt-in unit in an amount

equaling the heat input under paragraph

(c)(2)(i) of this section, multiplied by the

NOx emission rate under paragraph

(c)(2)(ii) of this section, divided by

2,000 lb/ton, and rounded to the nearest

whole allowance as appropriate.

(d) Recordation. (1) The

Administrator will record, in the

compliance account of the source that

includes the CAIR NOx Ozone Season

opt-in unit, the CAIR NOx Ozone

Season allowances allocated by the

permitting authority to the CAIR NOx

Ozone Season opt-in unit under

paragraph (a)(1) of this section.

(2) By September 1, of the control

period in which a CAIR opt-in unit

enters the CAIR NOx Ozone Season

Trading Program under § 96.384(g), and

September 1 of each year thereafter, the

Administrator will record, in the

compliance account of the source that

includes the CAIR NOx Ozone Season,

opt-in unit, the CAIR NOx Ozone

Season allowances allocated by the

permitting authority to the CAIR NOx

Ozone Season opt-in unit under

paragraph- (a)(2) of this section.

[FR Doc. 05-5723 Filed 5-11-05; 8:45 am]

BILLING CODE 6560-50-P

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