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For the reasons set forth in the preamble, parts 51, 52, 72, 78, 

and 97 of chapter I of title 40 of the Code of Federal 

Regulations are amended as follows:

PART 51—[AMENDED]

1. The authority citation for Part 51 continues to read as 

follows:

Authority: 23 U.S.C. 101; 42 U.S.C. 7401-7671q.

§ 51.121 [Amended]

2. Section 51.121 is amended by revising paragraph (r)(2) by 

removing the words “§51.123(bb)” and adding, in their place, the 

words “§51.123(bb) with regard to an ozone season that occurs 

before January 1, 2012”. 

3. Section 51.123 is amended by adding a new paragraph (ff) to 

read as follows: 

§ 51.123 Findings and requirements for submission of State 

implementation plan revisions relating to emissions of oxides of 

nitrogen pursuant to the Clean Air Interstate Rule.

* * * * *
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(ff) Notwithstanding any provisions of paragraphs (a) through 

(ee) of this section, subparts AA through II and AAAA through 

IIII of part 96 of this chapter, subparts AA through II and AAAA 

through IIII of part 97 of this chapter, and any State’s SIP to 

the contrary:

(1) With regard to any control period that begins after December 

31, 2011, the Administrator:

(i) Rescinds the determination in paragraph (a) of this section 

that the States identified in paragraph (c) of this section must 

submit a SIP revision with respect to the fine particles (PM2.5) 

NAAQS and the 8-hour ozone NAAQS meeting the requirements of 

paragraphs (b) through (ee) of this section; and 

(ii) Will not carry out any of the functions set forth for the 

Administrator in subparts AA through II and AAAA through IIII of 

part 96 of this chapter, subparts AA through II and AAAA through 

IIII of part 97 of this chapter, or in any emissions trading 

program provisions in a State’s SIP approved under this section; 

(2) The Administrator will not deduct for excess emissions any 

CAIR NOX allowances or CAIR NOX Ozone Season allowances allocated 

for 2012 or any year thereafter; 

(3) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX
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Allowance Tracking System accounts all CAIR NOX allowances 

allocated for a control period in 2012 and any subsequent year, 

and, thereafter, no holding or surrender of CAIR NOX allowances 

will be required with regard to emissions or excess emissions 

for such control periods; and 

(4) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX Ozone 

Season Allowance Tracking System accounts all CAIR NOX Ozone 

Season allowances allocated for a control period in 2012 and any 

subsequent year, and, thereafter, no holding or surrender of 

CAIR NOX Ozone Season allowances will be required with regard to 

emissions or excess emissions for such control periods.

4. Section 51.124 is amended by adding a new paragraph (s) to 

read as follows: 

§ 51.124 Findings and requirements for submission of State 

implementation plan revisions relating to emissions of sulfur 

dioxide pursuant to the Clean Air Interstate Rule. 

* * * * *

(s) Notwithstanding any provisions of paragraphs (a) through (r) 

of this section, subparts AAA through III of part 96 of this 

chapter, subparts AAA through III of part 97 of this chapter, 

and any State’s SIP to the contrary: 
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(1) With regard to any control period that begins after December 

31, 2011, the Administrator:

(i) Rescinds the determination in paragraph (a) of this section 

that the States identified in paragraph (c) of this section must 

submit a SIP revision with respect to the fine particles (PM2.5) 

NAAQS meeting the requirements of paragraphs (b) through (r) of 

this section; and 

(ii) Will not carry out any of the functions set forth for the 

Administrator in subparts AAA through III of part 96 of this 

chapter, subparts AAA through III of part 97 of this chapter, or 

in any emissions trading program in a State’s SIP approved under 

this section; and

(2) The Administrator will not deduct for excess emissions any 

CAIR SO2 allowances allocated for 2012 or any year thereafter.

§ 51.125 [Reserved]

5. Section 51.125 is removed and reserved. 

PART 52—[AMENDED]

6. The authority citation for Part 52 continues to read as 

follows:

Authority: 42 U.S.C. 7401, et seq.
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Subpart A—General Provisions

7. Section 52.35 is amended by adding a new paragraph (f) to 

read as follows: 

§ 52.35 What are the requirements of the Federal Implementation 

Plans (FIPs) for the Clean Air Interstate Rule (CAIR) relating 

to emissions of nitrogen oxides?

* * * * * 

(f) Notwithstanding any provisions of paragraphs (a) through (d) 

of this section, subparts AA through II and AAAA through IIII of 

part 97 of this chapter, and any State’s SIP to the contrary: 

(1) With regard to any control period that begins after December 

31, 2011,

(i) The provisions in paragraphs (a) through (d) of this section 

relating to NOX annual or ozone season emissions shall not be 

applicable; and

(ii) The Administrator will not carry out any of the functions 

set forth for the Administrator in subparts AA through II and 

AAAA through IIII of part 97 of this chapter; 
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(2) The Administrator will not deduct for excess emissions any 

CAIR NOX allowances or CAIR NOX Ozone Season allowances allocated 

for 2012 or any year thereafter;

(3) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX

Allowance Tracking System accounts all CAIR NOX allowances 

allocated for a control period in 2012 and any subsequent year, 

and, thereafter, no holding or surrender of CAIR NOX allowances 

will be required with regard to emissions or excess emissions 

for such control periods; and 

(4) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX Ozone 

Season Allowance Tracking System accounts all CAIR NOX Ozone 

Season allowances allocated for a control period in 2012 and any 

subsequent year, and, thereafter, no holding or surrender of 

CAIR NOX allowances will be required with regard to emissions or 

excess emissions for such control periods.

8. Section 52.36 is amended by adding a new paragraph (e) to 

read as follows: 
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§ 52.36 What are the requirements of the Federal Implementation 

Plans (FIPs) for the Clean Air Interstate Rule (CAIR) relating 

to emissions of sulfur dioxide?

* * * * *

(e) Notwithstanding any provisions of paragraphs (a) through (c) 

of this section, subparts AAA through III of part 97 of this 

chapter and any State’s SIP to the contrary: 

(1) With regard to any control period that begins after December 

31, 2011,

(i) The provisions of paragraphs (a) through (e) of this section 

relating to SO2 emissions shall not be applicable; and

(ii) The Administrator will not carry out any of the functions 

set forth for the Administrator in subparts AAA through III of 

part 97 of this chapter; and

(2) The Administrator will not deduct for excess emissions any 

CAIR SO2 allowances allocated for 2012 or any year thereafter.

9. Subpart A is amended by adding §§52.38 and 52.39 to read as 

follows: 

§ 52.38 What are the requirements of the Federal Implementation 

Plans (FIPs) under the Transport Rule (TR) relating to emissions 
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of nitrogen oxides? 

(a)(1) The TR NOX Annual Trading Program provisions set forth in 

subpart AAAAA of part 97 of this chapter constitute the TR 

Federal Implementation Plan provisions that relate to annual 

emissions of nitrogen oxides (NOX). 

(2) The provisions of subpart AAAAA of part 97 of this chapter

apply to the sources in the following States and Indian country 

located within the borders of such States: Alabama, Georgia, 

Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, 

Minnesota, Missouri, Nebraska, New Jersey, New York, North 

Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, 

Virginia, West Virginia, and Wisconsin.

(3) Notwithstanding the provisions of paragraph (a)(1) of this 

section, a State listed in paragraph (a)(2) of this section may 

adopt and include in a SIP revision, and the Administrator will 

approve, as TR NOX Annual allowance allocation provisions 

replacing the provisions in §97.411(a) of this chapter with 

regard to the State and the control period in 2013, a list of TR 

NOX Annual units and the amount of TR NOX Annual allowances 

allocated to each unit on such list, provided that the list of 

units and allocations meets the following requirements:
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(i) All of the units on the list must be units that are in the 

State and commenced commercial operation before January 1, 2010;

(ii) The total amount of TR NOX Annual allowance allocations on 

the list must not exceed the amount, under §97.410(a) of this 

chapter for the State and the control period in 2013, of TR NOX

Annual trading budget minus the sum of the new unit set-aside 

and Indian country new unit set-aside; 

(iii) The list must be submitted electronically in a format 

specified by the Administrator; and

(iv) The SIP revision must not provide for any change in the 

units and allocations on the list after approval of the SIP 

revision by the Administrator and must not provide for any 

change in any allocation determined and recorded by the 

Administrator under subpart AAAAA of part 97 of this chapter; 

(v) Provided that:

(A) By [INSERT DATE 70 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the State must notify the Administrator 

electronically in a format specified by the Administrator of the 
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State’s intent to submit to the Administrator a complete SIP 

revision meeting the requirements of paragraph (a)(3)(i) through 

(iv) of this section by April 1, 2012; and

(B) The State must submit to the Administrator a complete SIP 

revision described in paragraph (a)(3)(v)(A) of this section by 

April 1, 2012.

(4) Notwithstanding the provisions of paragraph (a)(1) of this 

section, a State listed in paragraph (a)(2) of this section may 

adopt and include in a SIP revision, and the Administrator will 

approve, regulations revising subpart AAAAA of part 97 of this 

chapter as follows and not making any other substantive 

revisions of that subpart:

(i) The State may adopt, as TR NOX Annual allowance allocation or 

auction provisions replacing the provisions in §§97.411(a) and 

(b)(1) and 97.412(a) of this chapter with regard to the State 

and the control period in 2014 or any subsequent year, any 

methodology under which the State or the permitting authority 

allocates or auctions TR NOX Annual allowances, and may adopt, in 

addition to the definitions in §97.402 of this chapter, one or 

more definitions that shall apply only to terms as used in the 
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adopted TR NOX Annual allowance allocation or auction provisions, 

if such methodology--

(A) Requires the State or the permitting authority to allocate 

and, if applicable, auction a total amount of TR NOX Annual 

allowances for any such control period not exceeding the amount, 

under §§97.410(a) and 97.421 of this chapter for the State and 

such control period, of the TR NOX Annual trading budget minus 

the sum of the Indian country new unit set-aside and the amount 

of any TR NOX Annual allowances already allocated and recorded by 

the Administrator. 

(B) Requires, to the extent the State adopts provisions for 

allocations or auctions of TR NOX Annual allowances for any such 

control period to any TR NOX Annual units covered by §97.411(a) 

of this chapter, that the State or the permitting authority 

submit such allocations or the results of such auctions for such 

control period (except allocations or results of auctions to 

such units of TR NOX Annual allowances remaining in a set-aside 

after completion of the allocations or auctions for which the 

set-aside was created) to the Administrator no later than the 

following dates:

Year of the Deadline for
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control 

period for 

which TR NOX

Annual 

allowances 

are allocated 

or

auctioned

submission of 

allocations 

or auction 

results to 

Administrator

2014 June 1, 2013

2015 June 1, 2013

2016 June 1, 2014

2017 June 1, 2014

2018 June 1, 2015

2019 June 1, 2015

2020 and any 

year 

thereafter

June 1 of the 

fourth year 

before the 

year of the 

control 

period

(C) Requires, to the extent the State adopts provisions for 

allocations or auctions of TR NOX Annual allowances for any such 

control period to any TR NOX Annual units covered by 

§§97.411(b)(1) and 97.412(a) of this chapter, that the State or 

the permitting authority submit such allocations or the results 

of such auctions (except allocations or results of auctions to 

such units of TR NOX Annual allowances remaining in a set-aside 

after completion of the allocations or auctions for which the 
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set-aside was created) to the Administrator by July 1 of the 

year of such control period.

(D) Does not provide for any change, after the submission 

deadlines in paragraphs (a)(4)(i)(B) and (C) of this section, in 

the allocations submitted to the Administrator by such deadlines 

and does not provide for any change in any allocation determined 

and recorded by the Administrator under subpart AAAAA of part 97 

of this chapter;

(ii) Provided that the State must submit a complete SIP revision 

meeting the requirements of paragraph (a)(4)(i) of this section 

by December 1 of the year before the year of the deadlines for 

submission of allocations or auction results under paragraphs 

(a)(4)(i)(B) and (C) of this section for the first control 

period for which the State wants to make allocations or hold an 

auction under paragraph (a)(4)(i) of this section.

(5) Notwithstanding the provisions of paragraph (a)(1) of this 

section, a State listed in paragraph (a)(2) of this section may 

adopt and include in a SIP revision, and the Administrator will 

approve, as correcting in whole or in part, as appropriate, the 

deficiency in the SIP that is the basis for the TR Federal 

Implementation Plan set forth in paragraphs (a)(1) through (4) 
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of this section, regulations that are substantively identical to 

the provisions of the TR NOX Annual Trading Program set forth in 

§§97.402 through 97.435 of this chapter, except that the SIP 

revision:

(i) May adopt, as TR NOX Annual allowance allocation or auction 

provisions replacing the provisions in §§97.411(a) and (b)(1) 

and 97.412(a) of this chapter with regard to the State and the 

control period in 2014 or any subsequent year, any methodology 

under which the State or the permitting authority allocates or 

auctions TR NOX Annual allowances and that--

(A) Requires the State or the permitting authority to allocate 

and, if applicable, auction a total amount of TR NOX Annual 

allowances for any such control period not exceeding the amount, 

under §§97.410(a) and 97.421 of this chapter for the State and 

such control period, of the TR NOX Annual trading budget minus 

the sum of the Indian country new unit set-aside and the amount 

of any TR NOX Annual allowances already allocated and recorded by 

the Administrator. 

(B) Requires, to the extent the State adopts provisions for 

allocations or auctions of TR NOX Annual allowances for any such 

control period to any TR NOX Annual units covered by §97.411(a) 
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of this chapter, that the State or the permitting authority 

submit such allocations or the results of such auctions for such 

control period (except allocations or results of auctions to 

such units of TR NOX Annual allowances remaining in a set-aside 

after completion of the allocations or auctions for which the 

set-aside was created) to the Administrator no later than the 

following dates:

Year of the 

control 

period for 

which TR NOX

Annual 

allowances 

are allocated 

or

auctioned

Deadline for 

submission of 

allocations 

or auction 

results to 

Administrator

2014 June 1, 2013

2015 June 1, 2013

2016 June 1, 2014

2017 June 1, 2014

2018 June 1, 2015

2019 June 1, 2015

2020 and any 

year 

thereafter

June 1 of the 

fourth year 

before the 

year of the 

control 

period
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(C) Requires, to the extent the State adopts provisions for 

allocations or auctions of TR NOX Annual allowances for any such 

control period to any TR NOX Annual units covered by 

§§97.411(b)(1) and 97.412(a) of this chapter, that the State or 

the permitting authority submit such allocations or the results 

of such auctions (except allocations or results of auctions to 

such units of TR NOX Annual allowances remaining in a set-aside 

after completion of the allocations or auctions for which the 

set-aside was created) to the Administrator by July 1 of the 

year of such control period.

(D) Does not provide for any change, after the submission 

deadlines in paragraphs (a)(5)(i)(B) and (C) of this section, in 

the allocations submitted to the Administrator by such deadlines

and does not provide for any change in any allocation determined 

and recorded by the Administrator under subpart AAAAA of part 97 

of this chapter; 

(ii) May adopt, in addition to the definitions in §97.402 of 

this chapter, one or more definitions that shall apply only to 

terms as used in the TR NOX Annual allowance allocation or 

auction provisions adopted under paragraph (a)(5)(i) of this 

section; 
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(iii) May substitute the name of the State for the term “State” 

as used in subpart AAAAA of part 97 of this chapter, to the 

extent the Administrator determines that such substitutions do 

not make substantive changes in the provisions in §§97.402 

through 97.435 of this chapter; and

(iv) Must not include any of the references to, or requirements 

imposed on, any unit in Indian country within the borders of the 

State in the provisions in §§97.402 through 97.435 of this 

chapter and must not include the provisions in §§97.411(b)(2) 

and 97.412(b), all of which provisions will continue to apply 

under the portion of the TR Federal Implementation Plan that is 

not replaced by the SIP revision;

(v) Provided that, if and when any covered unit is located in 

Indian country within the borders of the State, the 

Administrator may modify his or her approval of the SIP revision 

to exclude the provisions in §§97.402 (definitions of “common 

designated representative”, “common designated representative’s 

assurance level”, and “common designated representative’s 

share”), 97.406(c)(2), 97.425, and the portions of other 

provisions referencing these sections and may modify the portion 

of the TR Federal Implementation Plan that is not replaced by 

the SIP revision to include these provisions;
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(vi) Provided that the State must submit a complete SIP revision 

meeting the requirements of paragraphs (a)(5)(i) through (iv) of 

this section by December 1 of the year before the year of the 

deadlines for submission of allocations or auction results under 

paragraphs (a)(5)(i)(B) and (C) of this section applicable to 

the first control period for which the State wants to make 

allocations or hold an auction under paragraphs (a)(5)(i) and 

(ii) of this section. 

(6) Following promulgation of an approval by the Administrator 

of a State's SIP revision as correcting in whole or in part, as 

appropriate, the SIP’s deficiency that is the basis for the TR 

Federal Implementation Plan described in paragraphs (a)(1) 

through (5) of this section, the provisions of paragraph (a)(2) 

of this section will no longer apply to the sources in the

State, unless the Administrator's approval of the SIP revision 

is partial or conditional, and will continue to apply to sources 

in any Indian country within the borders of the State.

(7) Notwithstanding the provisions of paragraph (a)(6) of this 

section, if, at the time of such approval of the State's SIP

revision, the Administrator has already started recording any 

allocations of TR NOX Annual allowances under subpart AAAAA of 
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part 97 of this chapter to units in a State for a control period 

in any year, the provisions of subpart AAAAA of part 97 of this 

chapter authorizing the Administrator to complete the allocation 

and recordation of TR NOX Annual allowances to units in the State 

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

(b)(1) The TR NOX Ozone Season Trading Program provisions set 

forth in part 97 of this chapter constitute the TR Federal 

Implementation Plan provisions that relate to emissions of NOX

during the ozone season, defined as May 1 through September 30 

of a calendar year. 

(2) The provisions of subpart BBBBB of part 97 of this chapter

apply to sources in each of the following States and Indian 

country located within the borders of such States: Alabama, 

Arkansas, Florida, Georgia, Illinois, Indiana, Kentucky, 

Louisiana, Maryland, Mississippi, New Jersey, New York, North 

Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, 

Virginia, and West Virginia. 

(3) Notwithstanding the provisions of paragraph (b)(1) of this 

section, a State listed in paragraph (b)(2) of this section may 

adopt and include in a SIP revision, and the Administrator will 
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approve, as TR NOX Ozone Season allowance allocation provisions 

replacing the provisions in §97.511(a) of this chapter with 

regard to the State and the control period in 2013, a list of TR 

NOX Ozone Season units and the amount of TR NOX Ozone Season

allowances allocated to each unit on such list, provided that 

the list of units and allocations meets the following 

requirements:

(i) All of the units on the list must be units that are in the 

State and commenced commercial operation before January 1, 2010;

(ii) The total amount of TR NOX Ozone Season allowance 

allocations on the list must not exceed the amount, under 

§97.510(a) of this chapter for the State and the control period 

in 2013, of TR NOX Ozone Season trading budget minus the sum of 

the new unit set-aside and Indian country new unit set-aside; 

(iii) The list must be submitted electronically in a format 

specified by the Administrator; and

(iv) The SIP revision must not provide for any change in the 

units and allocations on the list after approval of the SIP 

revision by the Administrator and must not provide for any 
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change in any allocation determined and recorded by the 

Administrator under subpart BBBBB of part 97 of this chapter; 

(v) Provided that:

(A) By [INSERT DATE 70 DAYS AFTER PUBLICATION IN THE FEDRAL 

REGISTER], the State must notify the Administrator 

electronically in a format specified by the Administrator of the 

State’s intent to submit to the Administrator a complete SIP 

revision meeting the requirements of paragraph (b)(3)(i) through 

(iv) of this section by April 1, 2012; and

(B) The State must submit to the Administrator a complete SIP 

revision described in paragraph (b)(3)(v)(A) of this section by 

April 1, 2012. 

(4) Notwithstanding the provisions of paragraph (b)(1) of this 

section, a State listed in paragraph (b)(2) of this section may 

adopt and include in a SIP revision, and the Administrator will 

approve, regulations revising subpart BBBBB of part 97 of this 

chapter as follows and not making any other substantive 

revisions of that subpart:
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(i) The State may adopt, as applicability provisions replacing 

the provisions in §§97.504(a)(1) and (2) of this chapter, 

provisions substantively identical to those provisions, except 

that the words “more than 25 MWe” are replaced, whenever such 

words appear, by words specifying a uniform lower limit on the 

amount of megawatts that is not greater than the amount 

specified by the words “more than 25 MWe” and is not less than 

the amount specified by the words “15 MWe or more”; or 

(ii) The State may adopt, as TR NOX Ozone Season allowance 

allocation or auction provisions replacing the provisions in 

§§97.511(a) and (b)(1) and 97.512(a) of this chapter with regard 

to the control period in 2014 or any subsequent year, any 

methodology under which the State or the permitting authority 

allocates or auctions TR NOX Ozone Season allowances, and may 

adopt, in addition to the definitions in §97.502 of this 

chapter, one or more definitions that shall apply only to terms 

as used in the adopted TR NOX Ozone Season allowance allocation 

or auction provisions, if such methodology--

(A) Requires the State or the permitting authority to allocate 

and, if applicable, auction a total amount of TR NOX Ozone Season 

allowances for any such control period not exceeding the amount, 

under §§97.510(a) and 97.521 of this chapter for the State and 
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such control period, of the TR NOX Ozone Season trading budget

minus the sum of the Indian country new unit set-aside and the 

amount of any TR NOX Ozone Season allowances already allocated 

and recorded by the Administrator. 

(B) Requires, to the extent the State adopts provisions for 

allocations or auctions of TR NOX Ozone Season allowances for any 

such control period to any TR NOX Ozone Season units covered by 

§97.511(a) of this chapter, that the State or the permitting 

authority submit such allocations or the results of such 

auctions for such control period (except allocations or results 

of auctions to such units of TR NOX Ozone Season allowances 

remaining in a set-aside after completion of the allocations or 

auctions for which the set-aside was created) to the 

Administrator no later than the following dates:

Year of the 

control 

period for 

which TR NOX

Ozone Season 

allowances 

are allocated 

or

auctioned

Deadline for 

submission of 

allocations 

or auction 

results to 

Administrator

2014 June 1, 2013

2015 June 1, 2013

2016 June 1, 2014
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2017 June 1, 2014

2018 June 1, 2015

2019 June 1, 2015

2020 and any 

year 

thereafter

June 1 of the 

fourth year 

before the 

year of the 

control 

period

(C) Requires, to the extent the State adopts provisions for 

allocations or auctions of TR NOX Ozone Season allowances for any 

such control period to any TR NOX Ozone Season units covered by 

§§97.511(b)(1) and 97.512(a) of this chapter, that the State or 

the permitting authority submit such allocations or the results 

of such auctions (except allocations or results of auctions to 

such units of TR NOX Ozone Season allowances remaining in a setaside after completion of the allocations or auctions for which 

the set-aside was created) to the Administrator by July 1 of the 

year of such control period. 

(D) Does not provide for any change, after the submission 

deadlines in paragraphs (b)(4)(ii)(B) and (C) of this section, 

in the allocations submitted to the Administrator by such 

deadlines and does not provide for any change in any allocation 

determined and recorded by the Administrator under subpart BBBBB 

of part 97 of this chapter; 
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(iii) Provided that the State must submit a complete SIP 

revision meeting the requirements of paragraph (b)(4)(i) or (ii) 

of this section by December 1 of the year before the year of the 

deadlines for submission of allocations or auction results under 

paragraphs (b)(4)(ii)(B) and (C) of this section applicable to 

the first control period for which the State wants to replace 

the applicability provisions, make allocations, or hold an 

auction under paragraph (b)(4)(i) or (ii) of this section.

(5) Notwithstanding the provisions of paragraph (b)(1) of this 

section, a State listed in paragraph (b)(2) of this section may 

adopt and include in a SIP revision, and the Administrator will 

approve, as correcting in whole or in part, as appropriate, the 

deficiency in the SIP that is the basis for the TR Federal 

Implementation Plan set forth in paragraphs (b)(1) through (4) 

of this section, regulations that are substantively identical to 

the provisions of the TR NOX Ozone Season Trading Program set 

forth in §§97.502 through 97.535 of this chapter, except that 

the SIP revision:

(i) May adopt, as applicability provisions replacing the 

provisions in §§97.504(a)(1) and (2) of this chapter, provisions 

substantively identical to those provisions, except that the 
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words “more than 25 MWe” are replaced, whenever such words 

appear, by words specifying a uniform lower limit on the amount 

of megawatts that is not greater than the amount specified by 

the words “more than 25 MWe” and is not less than the amount 

specified by the words “15 MWe or more”; or

(ii) May adopt, as TR NOX Ozone Season allowance allocation 

provisions replacing the provisions in §§97.511(a) and (b)(1) 

and 97.512(a) of this chapter with regard to the control period 

in 2014 and any subsequent year, any methodology under which the 

State or the permitting authority allocates auctions TR NOX Ozone 

Season allowances and that--

(A) Requires the State or the permitting authority to allocate 

and, if applicable, auction a total amount of TR NOX Ozone Season 

allowances for any such control period not exceeding the amount, 

under §§97.510(a) and 97.521 of this chapter for the State and 

such control period, of the TR NOX Ozone Season trading budget

minus the sum of the Indian country new unit set-aside and the 

amount of any TR NOX Ozone Season allowances already allocated 

and recorded by the Administrator. 

(B) Requires, to the extent the State adopts provisions for 

allocations or auction of TR NOX Ozone Season allowances for any 
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such control period to any TR NOX Ozone Season units covered by 

§97.511(a) of this chapter, that the State or the permitting 

authority submit such allocations or the results of such 

auctions for such control period (except allocations or results 

of auctions to such units of TR NOX Ozone Season allowances 

remaining in a set-aside after completion of the allocations or 

auctions for which the set-aside was created) to the 

Administrator no later than the following dates:

Year of the 

control 

period for 

which TR NOX

Ozone Season 

allowances 

are allocated 

or

auctioned

Deadline for

submission of 

allocations 

or auction 

results to 

Administrator

2014 June 1, 2013

2015 June 1, 2013

2016 June 1, 2014

2017 June 1, 2014

2018 June 1, 2015

2019 June 1, 2015

2020 and any 

year 

thereafter

June 1 of the 

fourth year 

before the 

year of the 

control 

period
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(C) Requires, to the extent the State adopts provisions for 

allocations or auctions of TR NOX Ozone Season allowances for any 

control period to any TR NOX Ozone Season units covered by 

§§97.511(b)(1) and 97.512(a) of this chapter, that the State or 

the permitting authority submit such allocations or the results 

of such auctions (except allocations or results of auctions to 

such units of TR NOX Ozone Season allowances remaining in a setaside after completion of the allocations or auctions for which 

the set-aside was created) to the Administrator by July 1 of the 

year of such control period. 

(D) Does not provide for any change, after the submission 

deadlines in paragraphs (b)(5)(ii)(B) and (C) of this section, 

in the allocations submitted to the Administrator by such 

deadlines and does not provide for any change in any allocation 

determined and recorded by the Administrator under subpart BBBBB 

of part 97 of this chapter;

(iii) May adopt in addition to the definitions in §97.502 of 

this chapter, one or more definitions that shall apply only to 

terms as used in the TR NOX Ozone Season allowance allocation or 

auction provisions adopted under paragraph (b)(5)(ii) of this 

section; 
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(iv) May substitute the name of the State for the term “State” 

as used in subpart BBBBB of part 97 of this chapter, to the 

extent the Administrator determines that such substitutions do 

not make substantive changes in the provisions in §§97.502 

through 97.535 of this chapter; and

(v) Must not include any of the references to, or requirements 

imposed on, any unit in Indian country within the borders of the 

State in the provisions in §§97.502 through 97.535 of this 

chapter and must not include the provisions in §§97.511(b)(2) 

and 97.512(b), all of which provisions will continue to apply 

under the portion of the TR Federal Implementation Plan that is 

not replaced by the SIP revision;

(vi) Provided that, if and when any covered unit is located in 

Indian country within the borders of the State, the 

Administrator may modify his or her approval of the SIP revision 

to exclude the provisions in §§97.502 (definitions of “common 

designated representative”, “common designated representative’s 

assurance level”, and “common designated representative’s 

share”), 97.506(c)(2), 97.525, and the portions of other 

provisions referencing these sections and may modify the portion 

of the TR Federal Implementation Plan that is not replaced by 

the SIP revision to include these provisions;
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(vii) Provided that the State must submit a complete SIP 

revision meeting the requirements of paragraph (b)(5)(i) through 

(v) of this section by December 1 of the year before the year of 

the deadlines for submission of allocations or auction results 

under paragraphs (5)(ii)(B) and (C) of this section applicable 

to the first control period for which the State wants to replace 

the applicability provisions, make allocations, or hold an 

auction under paragraphs (b)(5)(ii) and (iii) of this section. 

(6) Following promulgation of an approval by the Administrator 

of a State's SIP revision as correcting in whole or in part, as 

appropriate, the SIP’s deficiency that is the basis for the TR 

Federal Implementation Plan set forth in paragraphs (b)(1) 

through (5) of this section, the provisions of paragraph (b)(2) 

of this section will no longer apply to sources in the State, 

unless the Administrator's approval of the SIP revision is 

partial or conditional, and will continue to apply to sources in 

any Indian country within the borders of the State. 

(7) Notwithstanding the provisions of paragraph (b)(6) of this 

section, if, at the time of such approval of the State's SIP

revision, the Administrator has already started recording any 

allocations of TR NOX Ozone Season allowances under subpart BBBBB 
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of part 97 of this chapter to units in a State for a control 

period in any year, the provisions of subpart BBBBB of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of TR NOX Ozone Season allowances to 

units in the State for each such control period shall continue 

to apply, unless provided otherwise by such approval of the 

State’s SIP revision. 

§ 52.39 What are the requirements of the Federal Implementation 

Plans (FIPs) for the Transport Rule (TR) relating to emissions 

of sulfur dioxide?

(a) The TR SO2 Group 1 Trading Program provisions and the TR SO2

Group 2 Trading Program provisions set forth respectively in 

subparts CCCCC and DDDDD of part 97 of this chapter constitute 

the TR Federal Implementation Plan provisions that relate to 

emissions of sulfur dioxide (SO2). 

(b) The provisions of subpart CCCCC of part 97 of this chapter 

apply to sources in each of the following States and Indian 

country located within the borders of such States: Illinois, 

Indiana, Iowa, Kentucky, Maryland, Michigan, Missouri, New 

Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, 

Virginia, West Virginia, and Wisconsin. 
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(c) The provisions of subpart DDDDD of part 97 of this chapter 

apply to sources in each of the following States and Indian 

country located within the borders of such States: Alabama, 

Georgia, Kansas, Minnesota, Nebraska, South Carolina, and Texas. 

(d) Notwithstanding the provisions of paragraph (a) of this 

section, a State listed in paragraph (b) of this section may 

adopt and include in a SIP revision, and the Administrator will 

approve, as TR SO2 Group 1 allowance allocation provisions 

replacing the provisions in §97.611(a) of this chapter with 

regard to the State and the control period in 2013, a list of TR 

SO2 Group 1 units and the amount of TR SO2 Group 1 allowances 

allocated to each unit on such list, provided that the list of 

units and allocations meets the following requirements:

(1) All of the units on the list must be units that are in the 

State and commenced commercial operation before January 1, 2010;

(2) The total amount of TR SO2 Group 1 allowance allocations on 

the list must not exceed the amount, under §97.610(a) of this 

chapter for the State and the control period in 2013, of TR SO2

Group 1 trading budget minus the sum of the new unit set-aside 

and Indian country new unit set-aside; 
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(3) The list must be submitted electronically in a format 

specified by the Administrator; and

(4) The SIP revision must not provide for any change in the 

units and allocations on the list after approval of the SIP 

revision by the Administrator and must not provide for any 

change in any allocation determined and recorded by the 

Administrator under subpart CCCCC of part 97 of this chapter; 

(5) Provided that:

(i) By [INSERT DATE 70 DAYS AFTER PUBLICATION IN THE FEDRAL 

REGISTER], the State must notify the Administrator 

electronically in a format specified by the Administrator of the 

State’s intent to submit to the Administrator a complete SIP 

revision meeting the requirements of paragraph (d)(1) through 

(4) of this section by April 1, 2012; and

(ii) The State must submit to the Administrator a complete SIP 

revision described in paragraph (d)(5)(i) of this section by 

April 1, 2012.
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(e) Notwithstanding the provisions of paragraph (a) of this 

section, a State listed in paragraph (b) of this section may 

adopt and include in a SIP revision, and the Administrator will 

approve, regulations revising subpart CCCCC of part 97 of this 

chapter as follows and not making any other substantive 

revisions of that subpart:

(1) The State may adopt, as TR SO2 Group 1 allowance allocation 

or auction provisions replacing the provisions in §§97.611(a) 

and (b)(1) and 97.612(a) of this chapter with regard to the 

control period in 2014 or any subsequent year, any methodology 

under which the State or the permitting authority allocates or 

auctions TR SO2 Group 1 allowances and may adopt, in addition to 

the definitions in §97.602 of this chapter, one or more

definitions that shall apply only to terms as used in the 

adopted TR SO2 Group 1 allowance allocation or auction 

provisions, if such methodology--

(i) Requires the State or the permitting authority to allocate 

and, if applicable, auction a total amount of TR SO2 Group 1 

allowances for any such control period not exceeding the amount, 

under §§97.610(a) and 97.621 of this chapter for the State and 

such control period, of the TR SO2 Group 1 trading budget minus 

the sum of the Indian country new unit set-aside and the amount 
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of any TR SO2 Group 1 allowances already allocated and recorded 

by the Administrator. 

(ii) Requires, to the extent the State adopts provisions for 

allocations or auction of TR SO2 Group 1 allowances for any such 

control period to any TR SO2 Group 1 units covered by §97.611(a) 

of this chapter, that the State or the permitting authority 

submit such allocations or the results of such auctions for such 

control period (except allocations or results of auctions to 

such units of TR SO2 Group 1 allowances remaining in a set-aside 

after completion of the allocations or auctions for which the 

set-aside was created) to the Administrator no later than the 

following dates:

Year of the 

control 

period for 

which TR SO2

Group 1 

allowances 

are allocated 

or

auctioned

Deadline for 

submission of 

allocations 

or auction 

results to 

Administrator

2014 June 1, 2013

2015 June 1, 2013

2016 June 1, 2014

2017 June 1, 2014

2018 June 1, 2015
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2019 June 1, 2015

2020 and any 

year 

thereafter

June 1 of the 

fourth year 

before the 

year of the 

control 

period

(iii) Requires, to the extent the State adopts provisions for 

allocations or auctions of TR SO2 Group 1 allowances for any such 

control period to any TR SO2 Group 1 units covered by 

§§97.611(b)(1) and 97.612(a) of this chapter, that the State or 

the permitting authority submit such allocations or the results 

of such auctions (except allocations or results of auctions to 

such units of TR SO2 Group 1 allowances remaining in a set-aside 

after completion of the allocations or auctions for which the 

set-aside was created) to the Administrator by July 1 of the 

year of such control period. 

(iv) Does not provide for any change, after the submission 

deadlines in paragraphs (e)(1)(ii) and (iii) of this section, in 

the allocations submitted to the Administrator by such deadlines

and does not provide for any change in any allocation determined 

and recorded by the Administrator under subpart CCCCC of part 97 

of this chapter; 
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(2) Provided that the State must submit a complete SIP revision 

meeting the requirements of paragraph (e)(1) of this section by 

December 1 of the year before the year of the deadlines for

submission of allocations or auction results under paragraphs 

(e)(1)(ii) and (iii) of this section applicable to the first 

control period for which the State wants to make allocations or 

hold an auction under paragraph (e)(1) of this section.

(f) Notwithstanding the provisions of paragraph (a) of this 

section, a State listed in paragraph (b) of this section may 

adopt and include in a SIP revision, and the Administrator will 

approve, as correcting in whole or in part, as appropriate, the 

deficiency in the SIP that is the basis for the TR Federal 

Implementation Plan set forth in paragraphs (a), (b), (d), and 

(e) of this section, regulations that are substantively 

identical to the provisions of the TR SO2 Group 1 Trading Program 

set forth in §§97.602 through 97.635 of this chapter, except 

that the SIP revision:

(1) May adopt, as TR SO2 Group 1 allowance allocation or auction 

provisions replacing the provisions in §§97.611(a) and (b)(1) 

and 97.612(a) of this chapter with regard to the control period 

in 2014 and any subsequent year, any methodology under which the 
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State or the permitting authority allocates or auctions TR SO2

Group 1 allowances and that--

(i) Requires the State or the permitting authority to allocate

and, if applicable, auction a total amount of TR SO2 Group 1 

allowances for such control period not exceeding the amount, 

under §§97.610(a) and 97.621 of this chapter for the State and 

such control period, of the TR SO2 Group 1 trading budget minus 

the sum of the Indian country new unit set-aside and the amount 

of any TR SO2 Group 1 allowances already allocated and recorded 

by the Administrator. 

(ii) Requires, to the extent the State adopts provisions for 

allocations or auction of TR SO2 Group 1 allowances for any such 

control period to any TR SO2 Group 1 units covered by §97.611(a) 

of this chapter, that the State or the permitting authority 

submit such allocations or the results of such auctions for such 

control period (except allocations or results of auctions to 

such units of TR SO2 Group 1 allowances remaining in a set-aside 

after completion of the allocations or auctions for which the 

set-aside was created) to the Administrator no later than the 

following dates:

Year of the Deadline for
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control 

period for 

which TR SO2

Group 1 

allowances 

are allocated 

or

auctioned

submission of 

allocations 

or auction 

results to 

Administrator

2014 June 1, 2013

2015 June 1, 2013

2016 June 1, 2014

2017 June 1, 2014

2018 June 1, 2015

2019 June 1, 2015

2020 and any 

year 

thereafter

June 1 of the 

fourth year 

before the 

year of the 

control 

period

(iii) Requires, to the extent the State adopts provisions for 

allocations or auctions of TR SO2 Group 1 allowances for any such 

control period to any TR SO2 Group 1 units covered by 

§§97.611(b)(1) and 97.612(a) of this chapter, that the State or 

the permitting authority submit such allocations or the results 

of such auctions (except allocations or results of auctions to 

such units of TR SO2 Group 1 allowances remaining in a set-aside 

after completion of the allocations or auctions for which the 

set-aside was created) to the Administrator by July 1 of the 

year of such control period.
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(iv) Does not provide for any change, after the submission 

deadlines in paragraphs (f)(2)(ii) and (iii) of this section, in 

the allocations submitted to the Administrator by such deadlines

and does not provide for any change in any allocation determined 

and recorded by the Administrator under subpart CCCCC of part 97 

of this chapter;

(2) May adopt, in addition to the definitions in §97.602 of this 

chapter, one or more definitions that shall apply only to terms 

as used in the TR SO2 Group 1 allowance allocation or auction 

provisions adopted under paragraph (f)(1) of this section; 

(3) May substitute the name of the State for the term “State” as 

used in subpart CCCCC of part 97 of this chapter, to the extent 

the Administrator determines that such substitutions do not make 

substantive changes in the provisions in §§97.602 through 97.635 

of this chapter; and

(4) Must not include any of the references to, or requirements 

imposed on, any unit in Indian country within the borders of the 

State in the provisions in §§97.602 through 97.635 of this 

chapter and must not include the provisions in §§97.611(b)(2) 

and 97.612(b), all of which provisions will continue to apply 
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under the portion of the TR Federal Implementation Plan that is 

not replaced by the SIP revision;

(5) Provided that, if and when any covered unit is located in 

Indian country within the borders of the State, the 

Administrator may modify his or her approval of the SIP revision 

to exclude the provisions in §§97.602 (definitions of “common 

designated representative”, “common designated representative’s 

assurance level”, and “common designated representative’s 

share”), 97.606(c)(2), 97.625, and the portions of other 

provisions referencing these sections and may modify the portion 

of the TR Federal Implementation Plan that is not replaced by 

the SIP revision to include these provisions;

(6) Provided that the State must submit a complete SIP revision 

meeting the requirements of paragraphs (f)(1) through (4) of 

this section by December 1 of the year before the year of the 

deadlines for submission of allocations or auction results under 

paragraphs (f)(1)(ii) and (iii) of this section applicable to 

the first control period for which the State wants to make 

allocations or hold an auction under paragraph (f)(1)(ii) and 

(iii) of this section. 
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(g) Notwithstanding the provisions of paragraph (a) of this 

section, a State listed in paragraph (c) of this section may 

adopt and include in a SIP revision, and the Administrator will 

approve, as TR SO2 Group 2 allowance allocation provisions 

replacing the provisions in §97.711(a) of this chapter with 

regard to the control period in 2013, a list of TR SO2 Group 2

units and the amount of TR SO2 Group 2 allowances allocated to 

each unit on such list, provided that the list of units and 

allocations meets the following requirements:

(1) All of the units on the list must be units that are in the 

State and commenced commercial operation before January 1, 2010;

(2) The total amount of TR SO2 Group 2 allowance allocations on 

the list must not exceed the amount, under §97.710(a) of this 

chapter for the State and the control period in 2013, of TR SO2

Group 2 trading budget minus the sum of the new unit set-aside 

and Indian country new unit set-aside; 

(3) The list must be submitted electronically in a format 

specified by the Administrator; and

(4) The SIP revision must not provide for any change in the 

units and allocations on the list after approval of the SIP 
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revision by the Administrator and must not provide for any 

change in any allocation determined and recorded by the 

Administrator under subpart DDDDD of part 97 of this chapter; 

(5) Provided that:

(i) By [INSERT DATE 70 DAYS AFTER PUBLICATION IN THE FEDRAL 

REGISTER], the State must notify the Administrator 

electronically in a format specified by the Administrator of the 

State’s intent to submit to the Administrator a complete SIP 

revision meeting the requirements of paragraph (g)(1) through 

(4) of this section by April 1, 2012; and 

(ii) The State must submit to the Administrator a complete SIP 

revision described in paragraph (g)(5)(i) of this section by 

April 1, 2012. 

(h) Notwithstanding the provisions of paragraph (a) of this 

section, a State listed in paragraph (c) of this section may 

adopt and include in a SIP revision, and the Administrator will 

approve, regulations revising subpart DDDDD of part 97 of this 

chapter as follows and not making any other substantive 

revisions of that subpart:
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(1) The State may adopt, as TR SO2 Group 2 allowance allocation 

or auction provisions replacing the provisions in §§97.711(a) 

and (b)(1) and 97.712(a) of this chapter with regard to the 

control period in 2014 and any subsequent year, any methodology 

under which the State or the permitting authority allocates or 

auctions TR SO2 Group 2 allowances and may adopt, in addition to 

the definitions in §97.702 of this chapter, one or more 

definitions that shall apply only to terms as used in the 

adopted TR SO2 Group 2 allowance allocation or auction 

provisions, if such methodology—

(i) Requires the State or the permitting authority to allocate 

and, if applicable, auction a total amount of TR SO2 Group 2 

allowances for any such control period not exceeding the amount, 

under §§97.710(a) and 97.721 of this chapter for the State and 

such control period, of the TR SO2 Group 2 trading budget minus 

the sum of the Indian country new unit set-aside and the amount 

of any TR SO2 Group 2 allowances already allocated and recorded 

by the Administrator. 

(ii) Requires, to the extent the State adopts provisions for 

allocations or auction of TR SO2 Group 2 allowances for any such 

control period to any TR SO2 Group 2 units covered by §97.711(a) 

of this chapter, that the State or the permitting authority 
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submit such allocations or the results of such auctions for such 

control period (except allocations or results of auctions to 

such units of TR SO2 Group 2 allowances remaining in a set-aside 

after completion of the allocations or auctions for which the 

set-aside was created) to the Administrator no later than the 

following dates:

Year of the 

control 

period for 

which TR SO2

Group 2 

allowances 

are allocated 

or

auctioned

Deadline for

submission of 

allocations 

or auction 

results to 

Administrator

2014 June 1, 2013

2015 June 1, 2013

2016 June 1, 2014

2017 June 1, 2014

2018 June 1, 2015

2019 June 1, 2015

2020 and any 

year 

thereafter

June 1 of the 

fourth year 

before the 

year of the 

control 

period

(iii) Requires, to the extent the State adopts provisions for 

allocations or auctions of TR SO2 Group 2 allowances for any such 
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control period to any TR SO2 Group 2 units covered by 

§§97.711(b)(1) and 97.712(a) of this chapter, that the State or 

the permitting authority submit such allocations or the results 

of such auctions (except allocations or results of auctions to 

such units of TR SO2 Group 2 allowances remaining in a set-aside 

after completion of the allocations or auctions for which the 

set-aside was created) to the Administrator by July 1 of the 

year of such control period.

(iv) Does not provide for any change, after the submission

deadlines in paragraphs (h)(1)(ii) and (iii) of this section, in 

the allocations submitted to the Administrator by such deadlines

and does not provide for any change in any allocation determined 

and recorded by the Administrator under subpart DDDDD of part 97 

of this chapter;

(2) Provided that the State must submit a complete SIP revision 

meeting the requirements of paragraph (h)(1) of this section by 

December 1 of the year before the year of the deadlines for 

submission of allocations or auction results under paragraphs 

(h)(1)(ii) and (iii) of this section applicable to the first 

control period for which the State wants to make allocations or 

hold an auction under paragraph (h)(1)(ii) and (iii) of this 

section. 
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(i) Notwithstanding the provisions of paragraph (a) of this 

section, a State listed in paragraph (c) of this section may 

adopt and include in a SIP revision, and the Administrator will 

approve, as correcting in whole or in part, as appropriate, the 

deficiency in the SIP that is the basis for the TR Federal 

Implementation Plan set forth in paragraphs (a), (c), (g), and 

(h) of this section, regulations that are substantively 

identical to the provisions of the TR SO2 Group 2 Trading Program 

set forth in §§97.702 through 97.735 of this chapter, except

that the SIP revision:

(1) May adopt, as TR SO2 Group 2 allowance allocation or auction 

provisions replacing the provisions in §§97.711(a) and (b)(1) 

and 97.712(a) of this chapter with regard to the control period 

in 2014 and any subsequent year, any methodology under which the 

State or the permitting authority allocates or auctions TR SO2

Group 2 allowances and that--

(i) Requires the State or the permitting authority to allocate 

and, if applicable, auction a total amount of TR SO2 Group 2 

allowances for any such control period not exceeding the amount, 

under §§97.710(a) and 97.721 of this chapter for the State and 

such control period, of the TR SO2 Group 2 trading budget minus 
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the sum of the Indian country new unit set-aside and the amount 

of any TR SO2 Group 2 allowances already allocated and recorded 

by the Administrator. 

(ii) Requires, to the extent the State adopts provisions for 

allocations or auction of TR SO2 Group 2 allowances for any such 

control period to any TR SO2 Group 2 units covered by §97.711(a) 

of this chapter, that the State or the permitting authority 

submit such allocations or the results of such auctions for such 

control period (except allocations or results of auctions to 

such units of TR SO2 Group 1 allowances remaining in a set-aside 

after completion of the allocations or auctions for which the 

set-aside was created) to the Administrator no later than the 

following dates:

Year of the 

control 

period for 

which TR SO2

Group 2 

allowances 

are allocated 

or

auctioned

Deadline for 

submission of 

allocations 

or auction 

results to 

Administrator

2014 June 1, 2013

2015 June 1, 2013

2016 June 1, 2014

2017 June 1, 2014
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2018 June 1, 2015

2019 June 1, 2015

2020 and any 

year 

thereafter

June 1 of the 

fourth year 

before the 

year of the 

control 

period

(iii) Requires, to the extent the State adopts provisions for 

allocations or auctions of TR SO2 Group 2 allowances for any such 

control period to any TR SO2 Group 2 units covered by 

§§97.711(b)(1) and 97.712(a) of this chapter, that the State or 

the permitting authority submit such allocations or the results 

of such auctions (except allocations or results of auctions to 

such units of TR SO2 Group 2 allowances remaining in a set-aside 

after completion of the allocations or auctions for which the 

set-aside was created) to the Administrator by July 1 of the 

year of such control period. 

(iv) Does not provide for any change, after the submission 

deadlines in paragraphs (i)(1)(ii) and (iii) of this section, in 

the allocations submitted to the Administrator by such deadlines

and does not provide for any change in any allocation determined 

and recorded by the Administrator under subpart DDDDD of part 97 

of this chapter;
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(2) May adopt, in addition to the definitions in §97.702 of this 

chapter, one or more definitions that shall apply only to terms 

as used in the TR SO2 Group 2 allowance allocation or auction 

provisions adopted under paragraph (i)(1) of this section; 

(3) May substitute the name of the State for the term “State” as 

used in subpart DDDDD of part 97 of this chapter, to the extent 

the Administrator determines that such substitutions do not make 

substantive changes in the provisions in §§97.702 through 97.735 

of this chapter; and

(4) Must not include any of the references to, or requirements 

imposed on, any unit in Indian country within the borders of the 

State in the provisions in §§97.702 through 97.735 of this 

chapter and must not include the provisions in §§97.711(b)(2) 

and 97.712(b), all of which provisions will continue to apply 

under the portion of the TR Federal Implementation Plan that is 

not replaced by the SIP revision; 

(5) Provided that, if and when any covered unit is located in 

Indian country within the borders of the State, the 

Administrator may modify his or her approval of the SIP revision 

to exclude the provisions in §§97.702 (definitions of “common 

designated representative”, “common designated representative’s 
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assurance level”, and “common designated representative’s 

share”), 97.706(c)(2), 97.725, and the portions of other 

provisions referencing these sections and may modify the portion 

of the TR Federal Implementation Plan that is not replaced by 

the SIP revision to include these provisions;

(6) Provided that the State must submit a complete SIP revision 

meeting the requirements of paragraphs (i)(1) through (4) of 

this section by December 1 of the year before the year of the 

deadlines for submission of allocations or auction results under 

paragraphs (i)(1)(ii) and (iii) of this section applicable to 

the first control period for which the State wants to make 

allocations or hold an auction under paragraphs (i)(1)(ii) and 

(iii) of this section. 

(j) Following promulgation of an approval by the Administrator 

of a State's SIP revision as correcting in whole or in part, as 

appropriate, the SIP’s deficiency that is the basis for the TR 

Federal Implementation Plan, the provisions of paragraph (b) and 

(c) of this section, as applicable, will no longer apply to 

sources in the State, unless the Administrator's approval of the 

SIP revision is partial or conditional, and will continue to 

apply to sources in any Indian country within the borders of the 

State.
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(k) Notwithstanding the provisions of paragraph (j) of this 

section, if, at the time of such approval of the State's SIP

revision, the Administrator has already started recording any 

allocations of TR SO2 Group 1 allowances under subpart CCCCC of 

part 97 of this chapter, or allocations of TR SO2 Group 2 

allowances under subpart DDDDD of part 97 of this chapter, to 

units in a State for a control period in any year, the 

provisions of subpart CCCCC of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 1 allowances, or of subpart DDDDD of 

part 97 of this chapter authorizing the Administrator to 

complete the allocation and recordation of TR SO2 Group 2 

allowances, as applicable, to units in the State for each such 

control period shall continue to apply, unless provided 

otherwise by such approval of the State’s SIP revision.

Subpart B—Alabama 

10. Section 52.54 is added to read as follows:

§ 52.54 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?
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(a)(1) The owner and operator of each source and each unit 

located in the State of Alabama and for which requirements are 

set forth under the TR NOX Annual Trading Program in subpart 

AAAAA of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Alabama’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(a), except 

to the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (a)(1) of this 

section, if, at the time of the approval of Alabama’s SIP

revision described in paragraph (a)(1) of this section, the 

Administrator has already started recording any allocations of

TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 
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provided otherwise by such approval of the State’s SIP revision.

(b)(1) The owner and operator of each source and each unit 

located in the State of Alabama and for which requirements are 

set forth under the TR NOX Ozone Season Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Alabama’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(b), except 

to the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (b)(1) of this 

section, if, at the time of the approval of the Alabama’s SIP

revision described in paragraph (b)(1) of this section, the 

Administrator has already started recording any allocations of 

TR NOX Ozone Season allowances under subpart BBBBB of part 97 of 

this chapter to units in the State for a control period in any 

year, the provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 
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unless provided otherwise by such approval of the State’s SIP 

revision.

11. Section 52.55 is added to read as follows:

§ 52.55 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

(a) The owner and operator of each source and each unit located 

in the State of Alabama and for which requirements are set forth 

under the TR SO2 Group 2 Trading Program in subpart DDDDD of part 

97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements will be eliminated 

by the promulgation of an approval by the Administrator of a 

revision to Alabama’s State Implementation Plan (SIP) as 

correcting the SIP’s deficiency that is the basis for the TR 

Federal Implementation Plan under §52.39, except to the extent 

the Administrator’s approval is partial or conditional.

(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of Alabama’s SIP

revision described in paragraph (a) of this section, the 

Administrator has already started recording any allocations of
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TR SO2 Group 2 allowances under subpart DDDDD of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart DDDDD of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 2 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 

Subpart E—Arkansas

12. Section 52.184 is added to read as follows:

§ 52.184 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

(a) The owner and operator of each source and each unit located 

in the State of Arkansas and for which requirements are set 

forth under the TR NOX Ozone Season Trading Program in subpart 

BBBBB of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Arkansas’ State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 
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for the TR Federal Implementation Plan under §52.38(b), except 

to the extent the Administrator’s approval is partial or 

conditional.

(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of Arkansas’ SIP

revision described in paragraph (a) of this section, the 

Administrator has already started recording any allocations of 

TR NOX Ozone Season allowances under subpart BBBBB of part 97 of 

this chapter to units in the State for a control period in any 

year, the provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.

Subpart I—Delaware 

13. Section 52.440 is amended by adding a new paragraph (c) to 

read as follows:
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§ 52.440 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(c) Notwithstanding any provisions of paragraphs (a) and (b) of 

this section and subparts AA through II and AAAA through IIII of 

part 97 of this chapter to the contrary: 

(1) With regard to any control period that begins after December 

31, 2011,

(i) The provisions in paragraphs (a) and (b) of this section 

relating to NOX annual or ozone season emissions shall not be 

applicable; and

(ii) The Administrator will not carry out any of the functions 

set forth for the Administrator in subparts AA through II and 

AAAA through IIII of part 97 of this chapter; and

(2) The Administrator will not deduct for excess emissions any 

CAIR NOX allowances or CAIR NOX Ozone Season allowances allocated 

for 2012 or any year thereafter;

(3) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX

Allowance Tracking System accounts all CAIR NOX allowances 
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allocated for a control period in 2012 and any subsequent year, 

and, thereafter, no holding or surrender of CAIR NOX allowances 

will be required with regard to emissions or excess emissions 

for such control periods; and 

(4) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX Ozone 

Season Allowance Tracking System accounts all CAIR NOX Ozone 

Season allowances allocated for a control period in 2012 and any 

subsequent year, and, thereafter, no holding or surrender of 

CAIR NOX Ozone Season allowances will be required with regard to 

emissions or excess emissions for such control periods.

14. Section 52.441 is amended by designating the introductory 

text as paragraph (a) and adding a new paragraph (b) to read as 

follows:

§ 52.441 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

* * * * * 

(b) Notwithstanding any provisions of paragraph (a) of this 

section and subparts AAA through III of part 97 of this chapter 

and any State’s SIP to the contrary: 
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(1) With regard to any control period that begins after December 

31, 2011,

(i) The provisions of paragraph (a) of this section relating to 

SO2 emissions shall not be applicable; and

(ii) The Administrator will not carry out any of the functions 

set forth for the Administrator in subparts AAA through III of 

part 97 of this chapter; and

(2) The Administrator will not deduct for excess emissions any 

CAIR SO2 allowances allocated for 2012 or any year thereafter.

Subpart J—District of Columbia

15. Section 52.484 is amended by adding a new paragraph (c) to 

read as follows:

§ 52.484 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(c) Notwithstanding any provisions of paragraphs (a) and (b) of 

this section and subparts AA through II and AAAA through IIII of 

part 97 of this chapter to the contrary: 
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(1) With regard to any control period that begins after December 

31, 2011,

(i) The provisions in paragraphs (a) and (b) of this section 

relating to NOX annual or ozone season emissions shall not be 

applicable; and

(ii) The Administrator will not carry out any of the functions 

set forth for the Administrator in subparts AA through II and 

AAAA through IIII of part 97 of this chapter; and

(2) The Administrator will not deduct for excess emissions any 

CAIR NOX allowances or CAIR NOX Ozone Season allowances allocated 

for 2012 or any year thereafter; 

(3) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX

Allowance Tracking System accounts all CAIR NOX allowances 

allocated for a control period in 2012 and any subsequent year, 

and, thereafter, no holding or surrender of CAIR NOX allowances 

will be required with regard to emissions or excess emissions 

for such control periods; and 

(4) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX Ozone 

Season Allowance Tracking System accounts all CAIR NOX Ozone 

Season allowances allocated for a control period in 2012 and any 
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subsequent year, and, thereafter, no holding or surrender of 

CAIR NOX Ozone Season allowances will be required with regard to 

emissions or excess emissions for such control periods.

16. Section 52.485 is amended by designating the introductory 

text as paragraph (a) and adding a new paragraph (b) to read as 

follows:

§ 52.485 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

* * * * * 

(b) Notwithstanding any provisions of paragraph (a) of this 

section and subparts AAA through III of part 97 of this chapter 

and any State’s SIP to the contrary: 

(1) With regard to any control period that begins after December 

31, 2011,

(i) The provisions of paragraph (a) of this section relating to 

SO2 emissions shall not be applicable; and
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(ii) The Administrator will not carry out any of the functions 

set forth for the Administrator in subparts AAA through III of 

part 97 of this chapter; and

(2) The Administrator will not deduct for excess emissions any 

CAIR SO2 allowances allocated for 2012 or any year thereafter.

Subpart K—Florida

17. Section 52.540 is added to read as follows:

§ 52.540 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

(a) The owner and operator of each source and each unit located 

in the State of Florida and Indian country within the borders of 

the State and for which requirements are set forth under the TR 

NOX Ozone Season Trading Program in subpart BBBBB of part 97 of 

this chapter must comply with such requirements. The obligation 

to comply with such requirements with regard to sources and 

units located in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Florida’s State Implementation Plan (SIP) as correcting in 

part the SIP’s deficiency that is the basis for the TR Federal 
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Implementation Plan under §52.38(b), except to the extent the 

Administrator’s approval is partial or conditional. The 

obligation to comply with such requirements with regard to 

sources and units located in Indian country within the borders 

of the State will not be eliminated by the promulgation of an 

approval by the Administrator of a revision to Florida’s SIP.

(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of Florida’s SIP

revision described in paragraph (a) of this section, the

Administrator has already started recording any allocations of

TR NOX Ozone Season allowances under subpart BBBBB of part 97 of 

this chapter to units in the State for a control period in any 

year, the provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.

Subpart L--Georgia

18. Section 52.584 is added to read as follows:
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§ 52.584 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

(a)(1) The owner and operator of each source and each unit 

located in the State of Georgia and for which requirements are 

set forth under the TR NOX Annual Trading Program in subpart 

AAAAA of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Georgia’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(a), except 

to the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (a)(1) of this 

section, if, at the time of the approval of Georgia’s SIP

revision described in paragraph (a)(1) of this section, the 

Administrator has already started recording any allocations of 

TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 
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recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 

(b)(1) The owner and operator of each source and each unit 

located in the State of Georgia and for which requirements are 

set forth under the TR NOX Ozone Season Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Georgia’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(b), except 

to the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (b)(1) of this 

section, if, at the time of the approval of Georgia’s SIP

revision described in paragraph (b)(1) of this section, the 

Administrator has already started recording any allocations of 

TR NOX Ozone Season allowances under subpart BBBBB of part 97 of 

this chapter to units in the State for a control period in any 

year, the provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 
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recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.

19. Section 52.585 is added to read as follows:

§ 52.585 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

(a) The owner and operator of each source and each unit located 

in the State of Georgia and for which requirements are set forth 

under the TR SO2 Group 2 Trading Program in subpart DDDDD of part 

97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements will be eliminated 

by the promulgation of an approval by the Administrator of a 

revision to Georgia’s State Implementation Plan (SIP) as 

correcting the SIP’s deficiency that is the basis for the TR 

Federal Implementation Plan under §52.39, except to the extent 

the Administrator’s approval is partial or conditional.

(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of Georgia’s SIP

revision described in paragraph (a) of this section, the 
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Administrator has already started recording any allocations of 

TR SO2 Group 2 allowances under subpart DDDDD of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart DDDDD of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 2 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 

Subpart O--Illinois

20. Section 52.745 is added to read as follows:

§ 52.745 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

(a)(1) The owner and operator of each source and each unit 

located in the State of Illinois and for which requirements are 

set forth under the TR NOX Annual Trading Program in subpart 

AAAAA of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Illinois’ State Implementation 
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Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(a), except 

to the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (a)(1) of this 

section, if, at the time of the approval of Illinois’ SIP

revision described in paragraph (a)(1) of this section, the 

Administrator has already started recording any allocations of

TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

(b)(1) The owner and operator of each source and each unit 

located in the State of Illinois and for which requirements are 

set forth under the TR NOX Ozone Season Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Illinois’ State Implementation 
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Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(b), except 

to the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (b)(1) of this 

section, if, at the time of the approval of Illinois’ SIP

revision described in paragraph (b)(1) of this section, the 

Administrator has already started recording any allocations of

TR NOX Ozone Season allowances under subpart BBBBB of part 97 of 

this chapter to units in the State for a control period in any 

year, the provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.

21. Section 52.746 is added to read as follows:

§ 52.746 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?
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(a) The owner and operator of each source and each unit located 

in the State of Illinois and for which requirements are set 

forth under the TR SO2 Group 1 Trading Program in subpart CCCCC 

of part 97 of this chapter must comply with such requirements. 

The obligation to comply with such requirements will be 

eliminated by the promulgation of an approval by the 

Administrator of a revision to Illinois’ State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.39, except to 

the extent the Administrator’s approval is partial or 

conditional.

(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of Illinois’ SIP

revision described in paragraph (a) of this section, the 

Administrator has already started recording any allocations of

TR SO2 Group 1 allowances under subpart CCCCC of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart CCCCC of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 1 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 
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Subpart P—Indiana 

22. Section 52.789 is added to read as follows:

§ 52.789 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

(a)(1) The owner and operator of each source and each unit 

located in the State of Indiana and for which requirements are 

set forth under the TR NOX Annual Trading Program in subpart 

AAAAA of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Indiana’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(a), except 

to the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (a)(1) of this 

section, if, at the time of the approval of Indiana’s SIP

revision described in paragraph (a)(1) of this section, the 

Administrator has already started recording any allocations of 
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TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

(b)(1) The owner and operator of each source and each unit 

located in the State of Indiana and for which requirements are 

set forth under the TR NOX Ozone Season Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Indiana’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(b), except 

to the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (b)(1) of this 

section, if, at the time of the approval of Indiana’s SIP

revision described in paragraph (b)(1) of this section, the 

Administrator has already started recording any allocations of 
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TR NOX Ozone Season allowances under subpart BBBBB of part 97 of 

this chapter to units in the State for a control period in any 

year, the provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.

23. Section 52.790 is added to read as follows:

§ 52.790 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

(a) The owner and operator of each source and each unit located 

in the State of Indiana and for which requirements are set forth 

under the TR SO2 Group 1 Trading Program in subpart CCCCC of part 

97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements will be eliminated 

by the promulgation of an approval by the Administrator of a 

revision to Indiana’s State Implementation Plan (SIP) as 

correcting the SIP’s deficiency that is the basis for the TR 
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Federal Implementation Plan under §52.39 except to the extent 

the Administrator’s approval is partial or conditional.

(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of Indiana’s SIP

revision described in paragraph (a) of this section, the 

Administrator has already started recording any allocations of 

TR SO2 Group 1 allowances under subpart CCCCC of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart CCCCC of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 1 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 

Subpart Q—Iowa

24. Section 52.840 is added to read as follows:

§ 52.840 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?
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(a)(1) The owner and operator of each source and each unit 

located in the State of Iowa and Indian country within the 

borders of the State and for which requirements are set forth 

under the TR NOX Annual Trading Program in subpart AAAAA of part 

97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Iowa’s State Implementation Plan (SIP) as correcting in part 

the SIP’s deficiency that is the basis for the TR Federal 

Implementation Plan under §52.38(a), except to the extent the 

Administrator’s approval is partial or conditional. The 

obligation to comply with such requirements with regard to 

sources and units located in Indian country within the borders 

of the State will not be eliminated by the promulgation of an 

approval by the Administrator of a revision to Iowa’s SIP. 

(2) Notwithstanding the provisions of paragraph (a)(1) of this 

section, if, at the time of the approval of Iowa’s SIP revision 

described in paragraph (a)(1) of this section, the Administrator 

has already started recording any allocations of TR NOX Annual

allowances under subpart AAAAA of part 97 of this chapter to 

units in the State for a control period in any year, the 

provisions of subpart AAAAA of part 97 of this chapter 
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authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

(b) [Reserved] 

25. Section 52.841 is added to read as follows:

§ 52.841 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

(a) The owner and operator of each source and each unit located 

in the State of Iowa and Indian country within the borders of 

the State and for which requirements are set forth under the TR 

SO2 Group 1 Trading Program in subpart CCCCC of part 97 of this 

chapter must comply with such requirements. The obligation to 

comply with such requirements with regard to sources and units 

in the State will be eliminated by the promulgation of an 

approval by the Administrator of a revision to Iowa’s State 

Implementation Plan (SIP) as correcting in part the SIP’s 

deficiency that is the basis for the TR Federal Implementation 

Plan under §52.39, except to the extent the Administrator’s 
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approval is partial or conditional. The obligation to comply 

with such requirements with regard to sources and units located 

in Indian country within the borders of the State will not be 

eliminated by the promulgation of an approval by the 

Administrator of a revision to Iowa’s SIP.

(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of Iowa’s SIP revision 

described in paragraph (a) of this section, the Administrator 

has already started recording any allocations of TR SO2 Group 1 

allowances under subpart CCCCC of part 97 of this chapter to 

units in the State for a control period in any year, the 

provisions of subpart CCCCC of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 1 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 

Subpart R—Kansas

26. Section 52.882 is added to read as follows:
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§ 52.882 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

(a)(1) The owner and operator of each source and each unit 

located in the State of Kansas and Indian country within the 

borders of the State and for which requirements are set forth 

under the TR NOX Annual Trading Program in subpart AAAAA of part 

97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Kansas’ State Implementation Plan (SIP) as correcting in part 

the SIP’s deficiency that is the basis for the TR Federal 

Implementation Plan under §52.38(a), except to the extent the 

Administrator’s approval is partial or conditional. The 

obligation to comply with such requirements with regard to 

sources and units located in Indian country within the borders 

of the State will not be eliminated by the promulgation of an 

approval by the Administrator of a revision to Kansas’ SIP.

(2) Notwithstanding the provisions of paragraph (a)(1) of this 

section, if, at the time of the approval of Kansas’ SIP revision 

described in paragraph (a)(1) of this section, the Administrator 
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has already started recording any allocations of TR NOX Annual

allowances under subpart AAAAA of part 97 of this chapter to 

units in the State for a control period in any year, the 

provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

(b)[Reserved] 

27. Section 52.883 is added to read as follows:

§ 52.883 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

(a) The owner and operator of each source and each unit located 

in the State of Kansas and Indian country within the borders of 

the State and for which requirements are set forth under the TR 

SO2 Group 2 Trading Program in subpart DDDDD of part 97 of this 

chapter must comply with such requirements. The obligation to 

comply with such requirements will be eliminated with regard to 

sources and units in the State by the promulgation of an 
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approval by the Administrator of a revision to Kansas’ State 

Implementation Plan (SIP) as correcting in part the SIP’s 

deficiency that is the basis for the TR Federal Implementation 

Plan under §52.39, except to the extent the Administrator’s 

approval is partial or conditional. The obligation to comply 

with such requirements with regard to sources and units located 

in Indian country within the borders of the State will not be 

eliminated by the promulgation of an approval by the 

Administrator of a revision to Kansas’ SIP.

(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of Kansas’ SIP revision 

described in paragraph (a) of this section, the Administrator 

has already started recording any allocations of TR SO2 Group 2 

allowances under subpart DDDDD of part 97 of this chapter to 

units in the State for a control period in any year, the 

provisions of subpart DDDDD of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 2 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 

Subpart S--Kentucky

28. Section 52.940 is added to read as follows:
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§ 52.940 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

(a)(1) The owner and operator of each source and each unit 

located in the State of Kentucky and for which requirements are 

set forth under the TR NOX Annual Trading Program in subpart 

AAAAA of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Kentucky’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(a), except 

to the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (a)(1) of this 

section, if, at the time of the approval of Kentucky’s SIP

revision described in paragraph (a)(1) of this section, the 

Administrator has already started recording any allocations of

TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 
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the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

(b)(1) The owner and operator of each source and each unit 

located in the State of Kentucky and for which requirements are 

set forth under the TR NOX Ozone Season Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Kentucky’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(b), except 

to the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (b)(1) of this 

section, if, at the time of the approval of Kentucky’s SIP

revision described in paragraph (b)(1) of this section, the 

Administrator has already started recording any allocations of

TR NOX Ozone Season allowances under subpart BBBBB of part 97 of 

this chapter to units in the State for a control period in any 
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year, the provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.

29. Section 52.941 is added to read as follows:

§ 52.941 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

(a) The owner and operator of each source and each unit located 

in the State of Kentucky and for which requirements are set 

forth under the TR SO2 Group 1 Trading Program in subpart CCCCC 

of part 97 of this chapter must comply with such requirements. 

The obligation to comply with such requirements will be 

eliminated by the promulgation of an approval by the 

Administrator of a revision to Kentucky’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.39, except to 

the extent the Administrator’s approval is partial or 

conditional.
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(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of Kentucky’s SIP

revision described in paragraph (a) of this section, the 

Administrator has already started recording any allocations of 

TR SO2 Group 1 allowances under subpart CCCCC of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart CCCCC of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 1 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 

Subpart T—Louisiana 

30. Section 52.984 is amended by adding new paragraphs (c) and 

(d) to read as follows:

§ 52.984 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *
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(c) Notwithstanding any provisions of paragraphs (a) and (b) of 

this section and subparts AA through II and AAAA through IIII of 

part 97 of this chapter to the contrary: 

(1) With regard to any control period that begins after December 

31, 2011,

(i) The provisions in paragraphs (a) and (b) of this section 

relating to NOX annual or ozone season emissions shall not be 

applicable; and

(ii) The Administrator will not carry out any of the functions 

set forth for the Administrator in subparts AA through II and 

AAAA through IIII of part 97 of this chapter; 

(2) The Administrator will not deduct for excess emissions any 

CAIR NOX allowances or CAIR NOX Ozone Season allowances allocated 

for 2012 or any year thereafter;

(3) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX

Allowance Tracking System accounts all CAIR NOX allowances 

allocated for a control period in 2012 and any subsequent year, 

and, thereafter, no holding or surrender of CAIR NOX allowances 

will be required with regard to emissions or excess emissions 

for such control periods; and 
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(4) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX Ozone 

Season Allowance Tracking System accounts all CAIR NOX Ozone 

Season allowances allocated for a control period in 2012 and any 

subsequent year, and, thereafter, no holding or surrender of 

CAIR NOX Ozone Season allowances will be required with regard to 

emissions or excess emissions for such control periods.

(d)(1) The owner and operator of each source and each unit 

located in the State of Louisiana and Indian country within the 

borders of the State and for which requirements are set forth 

under the TR NOX Ozone Season Trading Program in subpart BBBBB of 

part 97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Louisiana’s State Implementation Plan (SIP) as correcting in 

part the SIP’s deficiency that is the basis for the TR Federal 

Implementation Plan under §52.38(b), except to the extent the 

Administrator’s approval is partial or conditional. The 

obligation to comply with such requirements with regard to 

sources and units located in Indian country within the borders 

of the State will not be eliminated by the promulgation of an 

approval by the Administrator of a revision to Louisiana’s SIP.
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(2) Notwithstanding the provisions of paragraph (d)(1) of this 

section, if, at the time of the approval of Louisiana’s SIP

revision described in paragraph (d)(1) of this section, the 

Administrator has already started recording any allocations of 

TR NOX Ozone Season allowances under subpart BBBBB of part 97 of 

this chapter to units in the State for a control period in any 

year, the provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.

Subpart V—Maryland

31. Section 52.1084 is added to read as follows:

§ 52.1084 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen

oxides?

(a)(1) The owner and operator of each source and each unit 

located in the State of Maryland and for which requirements are 
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set forth under the TR NOX Annual Trading Program in subpart 

AAAAA of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Maryland’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(a), except 

to the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (a)(1) of this 

section, if, at the time of the approval of Maryland’s SIP

revision described in paragraph (a)(1) of this section, the 

Administrator has already started recording any allocations of 

TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

(b)(1) The owner and operator of each source and each unit 

located in the State of Maryland and for which requirements are 
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set forth under the TR NOX Ozone Season Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Maryland’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(b), except 

to the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (b)(1) of this 

section, if, at the time of the approval of Maryland’s SIP

revision described in paragraph (b)(1) of this section, the 

Administrator has already started recording any allocations of

TR NOX Ozone Season allowances under subpart BBBBB of part 97 of 

this chapter to units in the State for a control period in any 

year, the provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.

32. Section 52.1085 is added to read as follows:
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§ 52.1085 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

(a) The owner and operator of each source and each unit located 

in the State of Maryland and for which requirements are set 

forth under the TR SO2 Group 1 Trading Program in subpart CCCCC 

of part 97 of this chapter must comply with such requirements. 

The obligation to comply with such requirements will be 

eliminated by the promulgation of an approval by the 

Administrator of a revision to Maryland’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.39, except to 

the extent the Administrator’s approval is partial or 

conditional.

(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of Maryland’s SIP

revision described in paragraph (a) of this section, the 

Administrator has already started recording any allocations of

TR SO2 Group 1 allowances under subpart CCCCC of part 97 of this 

chapter to units in the State for a control period in any year, 
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the provisions of subpart CCCCC of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 1 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 

Subpart X—Michigan 

33. Section 52.1186 is amended by adding new paragraphs (c) and 

(d) to read as follows:

§ 52.1186 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(c) Notwithstanding any provisions of paragraphs (a) and (b) of 

this section and subparts AA through II and AAAA through IIII of 

part 97 of this chapter to the contrary: 

(1) With regard to any control period that begins after December 

31, 2011,

(i) The provisions in paragraphs (a) and (b) of this section 

relating to NOX annual or ozone season emissions shall not be 

applicable; and
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(ii) The Administrator will not carry out any of the functions 

set forth for the Administrator in subparts AA through II and 

AAAA through IIII of part 97 of this chapter; 

(2) The Administrator will not deduct for excess emissions any 

CAIR NOX allowances or CAIR NOX Ozone Season allowances allocated 

for 2012 or any year thereafter;

(3) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX

Allowance Tracking System accounts all CAIR NOX allowances 

allocated for a control period in 2012 and any subsequent year, 

and, thereafter, no holding or surrender of CAIR NOX allowances 

will be required with regard to emissions or excess emissions 

for such control periods; and 

(4) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX Ozone 

Season Allowance Tracking System accounts all CAIR NOX Ozone 

Season allowances allocated for a control period in 2012 and any 

subsequent year, and, thereafter, no holding or surrender of 

CAIR NOX Ozone Season allowances will be required with regard to 

emissions or excess emissions for such control periods.

(d)(1) The owner and operator of each source and each unit 

located in the State of Michigan and Indian country within the 
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borders of the State and for which requirements are set forth 

under the TR NOX Annual Trading Program in subpart AAAAA of part 

97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Michigan’s State Implementation Plan (SIP) as correcting in 

part the SIP’s deficiency that is the basis for the TR Federal 

Implementation Plan under §52.38(a), except to the extent the 

Administrator’s approval is partial or conditional. The 

obligation to comply with such requirements with regard to 

sources and units located in Indian country within the borders 

of the State will not be eliminated by the promulgation of an 

approval by the Administrator of a revision to Michigan’s SIP.

(2) Notwithstanding the provisions of paragraph (d)(1) of this 

section, if, at the time of the approval of Michigan’s SIP

revision described in paragraph (d)(1) of this section, the 

Administrator has already started recording any allocations of 

TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 
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each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

(e) [Reserved]

34. Section 52.1187 is amended by designating the existing text 

as paragraph (a) and adding new paragraphs (b) and (c) to read 

as follows:

§ 52.1187 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

* * * * * 

(b) Notwithstanding any provisions of paragraph (a) of this 

section and subparts AAA through III of part 97 of this chapter 

and any State’s SIP to the contrary: 

(1) With regard to any control period that begins after December 

31, 2011,

(i) The provisions of paragraph (a) of this section relating to 

SO2 emissions shall not be applicable; and
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(ii) The Administrator will not carry out any of the functions 

set forth for the Administrator in subparts AAA through III of 

part 97 of this chapter; and

(2) The Administrator will not deduct for excess emissions any 

CAIR SO2 allowances allocated for 2012 or any year thereafter.

(c)(1) The owner and operator of each source and each unit 

located in the State of Michigan and Indian country within the 

borders of the State and for which requirements are set forth 

under the TR SO2 Group 1 Trading Program in subpart CCCCC of part 

97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Michigan’s State Implementation Plan (SIP) as correcting in 

part the SIP’s deficiency that is the basis for the TR Federal 

Implementation Plan under §52.39, except to the extent the 

Administrator’s approval is partial or conditional. The 

obligation to comply with such requirements with regard to 

sources and units located in Indian country within the borders 

of the State will not be eliminated by the promulgation of an 

approval by the Administrator of a revision to Michigan’s SIP.
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(2) Notwithstanding the provisions of paragraph (c)(1) of this 

section, if, at the time of the approval of Maryland’s SIP

revision described in paragraph (c)(1) of this section, the 

Administrator has already started recording any allocations of 

TR SO2 Group 1 allowances under subpart CCCCC of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart CCCCC of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 1 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 

Subpart Y—Minnesota

35. Section 52.1240 is amended by adding paragraph (c) to read 

as follows:

§ 52.1240 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(c)(1) The owner and operator of each source and each unit 

located in the State of Minnesota and Indian country within the 

borders of the State and for which requirements are set forth 
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under the TR NOX Annual Trading Program in subpart AAAAA of part 

97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Minnesota’s State Implementation Plan (SIP) as correcting in 

part the SIP’s deficiency that is the basis for the TR Federal 

Implementation Plan under §52.38(a), except to the extent the 

Administrator’s approval is partial or conditional. The 

obligation to comply with such requirements with regard to 

sources and units located in Indian country within the borders 

of the State will not be eliminated by the promulgation of an 

approval by the Administrator of a revision to Minnesota’s SIP.

(2) Notwithstanding the provisions of paragraph (c)(1) of this 

section, if, at the time of the approval of Minnesota’s SIP

revision described in paragraph (c)(1) of this section, the 

Administrator has already started recording any allocations of 

TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 
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provided otherwise by such approval of the State’s SIP revision.

36. Section 52.1241 is amended by adding paragraph (c) to read 

as follows:

§ 52.1241 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

* * * * * 

(c)(1) The owner and operator of each source and each unit 

located in the State of Minnesota and Indian country within the 

borders of the State and for which requirements are set forth 

under the TR SO2 Group 2 Trading Program in subpart DDDDD of part 

97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Minnesota’s State Implementation Plan (SIP) as correcting in 

part the SIP’s deficiency that is the basis for the TR Federal 

Implementation Plan under §52.39, except to the extent the 

Administrator’s approval is partial or conditional. The 

obligation to comply with such requirements with regard to 

sources and units located in Indian country within the borders 
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of the State will not be eliminated by the promulgation of an 

approval by the Administrator of a revision to Minnesota’s SIP.

(2) Notwithstanding the provisions of paragraph (c)(1) of this 

section, if, at the time of the approval of Minnesota’s SIP

revision described in paragraph (c)(1) of this section, the 

Administrator has already started recording any allocations of 

TR SO2 Group 2 allowances under subpart DDDDD of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart DDDDD of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 2 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 

Subpart Z—Mississippi

37. Section 52.1284 is added to read as follows:

§ 52.1284 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?
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(a) The owner and operator of each source and each unit located 

in the State of Mississippi and Indian country within the 

borders of the State and for which requirements are set forth 

under the TR NOX Ozone Season Trading Program in subpart BBBBB of 

part 97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Mississippi’s State Implementation Plan (SIP) as correcting 

in part the SIP’s deficiency that is the basis for the TR 

Federal Implementation Plan under §52.38(b), except to the 

extent the Administrator’s approval is partial or conditional. 

The obligation to comply with such requirements with regard to 

sources and units located in Indian country within the borders 

of the State will not be eliminated by the promulgation of an

approval by the Administrator of a revision to Mississippi’s 

SIP.

(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of Mississippi’s SIP

revision described in paragraph (a) of this section, the 

Administrator has already started recording any allocations of 

TR NOX Ozone Season allowances under subpart BBBBB of part 97 of 

this chapter to units in the State for a control period in any 
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year, the provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.

Subpart AA—Missouri

38. Section 52.1341 is added to read as follows:

§ 52.1341 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

(a)(1) The owner and operator of each source and each unit 

located in the State of Missouri and for which requirements are 

set forth under the TR NOX Annual Trading Program in subpart 

AAAAA of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Missouri’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(a), except 
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to the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (a)(1) of this 

section, if, at the time of the approval of Missouri’s SIP

revision described in paragraph (a)(1) of this section, the 

Administrator has already started recording any allocations of 

TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

(b) [Reserved]

39. Section 52.1342 is added to read as follows:

§ 52.1342 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?
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(a) The owner and operator of each source and each unit located 

in the State of Missouri and for which requirements are set 

forth under the TR SO2 Group 1 Trading Program in subpart CCCCC 

of part 97 of this chapter must comply with such requirements. 

The obligation to comply with such requirements will be 

eliminated by the promulgation of an approval by the 

Administrator of a revision to Missouri’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.39, except to 

the extent the Administrator’s approval is partial or 

conditional.

(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of Missouri’s SIP

revision described in paragraph (a) of this section, the 

Administrator has already started recording any allocations of

TR SO2 Group 1 allowances under subpart CCCCC of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart CCCCC of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 1 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 
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Subpart CC—Nebraska

40. Section 52.1428 is added to read as follows:

§ 52.1428 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

(a) The owner and operator of each source and each unit located 

in the State of Nebraska and Indian country within the borders 

of the State and for which requirements are set forth under the 

TR NOX Annual Trading Program in subpart AAAAA of part 97 of this 

chapter must comply with such requirements. The obligation to 

comply with such requirements with regard to sources and units 

in the State will be eliminated by the promulgation of an 

approval by the Administrator of a revision to Nebraska’s State 

Implementation Plan (SIP) as correcting in part the SIP’s 

deficiency that is the basis for the TR Federal Implementation 

Plan under §52.38(a), except to the extent the Administrator’s 

approval is partial or conditional. The obligation to comply 

with such requirements with regard to sources and units located 

in Indian country within the borders of the State will not be 

eliminated by the promulgation of an approval by the 

Administrator of a revision to Nebraska’s SIP.
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(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of Nebraska’s SIP

revision described in paragraph (a) of this section, the 

Administrator has already started recording any allocations of 

TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

41. Section 52.1429 is added to read as follows:

§ 52.1429 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

(a) The owner and operator of each source and each unit located 

in the State of Nebraska and Indian country within the borders 

of the State and for which requirements are set forth under the 

TR SO2 Group 2 Trading Program in subpart DDDDD of part 97 of 
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this chapter must comply with such requirements. The obligation 

to comply with such requirements with regard to sources and 

units in the State will be eliminated by the promulgation of an 

approval by the Administrator of a revision to Nebraska’s State 

Implementation Plan (SIP) as correcting in part the SIP’s 

deficiency that is the basis for the TR Federal Implementation 

Plan under §52.39, except to the extent the Administrator’s 

approval is partial or conditional. The obligation to comply 

with such requirements with regard to sources and units located 

in Indian country within the borders of the State will not be 

eliminated by the promulgation of an approval by the 

Administrator of a revision to Nebraska’s SIP.

(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of Nebraska’s SIP

revision described in paragraph (a) of this section, the 

Administrator has already started recording any allocations of

TR SO2 Group 2 allowances under subpart DDDDD of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart DDDDD of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 2 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.
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Subpart FF—New Jersey 

42. Section 52.1584 is amended by adding new paragraphs (c), 

(d), and (e) to read as follows:

§ 52.1584 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(c) Notwithstanding any provisions of paragraphs (a) and (b) of 

this section and subparts AA through II and AAAA through IIII of 

part 97 of this chapter to the contrary: 

(1) With regard to any control period that begins after December 

31, 2011,

(i) The provisions in paragraphs (a) and (b) of this section 

relating to NOX annual or ozone season emissions shall not be 

applicable; and

(ii) The Administrator will not carry out any of the functions 

set forth for the Administrator in subparts AA through II and 

AAAA through IIII of part 97 of this chapter; 
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(2) The Administrator will not deduct for excess emissions any 

CAIR NOX allowances or CAIR NOX Ozone Season allowances allocated 

for 2012 or any year thereafter;

(3) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX

Allowance Tracking System accounts all CAIR NOX allowances 

allocated for a control period in 2012 and any subsequent year, 

and, thereafter, no holding or surrender of CAIR NOX allowances 

will be required with regard to emissions or excess emissions 

for such control periods; and 

(4) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX Ozone 

Season Allowance Tracking System accounts all CAIR NOX Ozone 

Season allowances allocated for a control period in 2012 and any 

subsequent year, and, thereafter, no holding or surrender of 

CAIR NOX Ozone Season allowances will be required with regard to 

emissions or excess emissions for such control periods.

(d)(1) The owner and operator of each source and each unit 

located in the State of New Jersey and for which requirements 

are set forth under the TR NOX Annual Trading Program in subpart 

AAAAA of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 
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will be eliminated by the promulgation of an approval by the 

Administrator of a revision to New Jersey’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(a), except 

to the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (d)(1) of this 

section, if, at the time of the approval of New Jersey’s SIP

revision described in paragraph (d)(1) of this section, the 

Administrator has already started recording any allocations of 

TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

(e)(1) The owner and operator of each source and each unit 

located in the State of New Jersey and for which requirements 

are set forth under the TR NOX Ozone Season Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 
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will be eliminated by the promulgation of an approval by the 

Administrator of a revision to New Jersey’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(b), except 

to the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (e)(1) of this 

section, if, at the time of the approval of New Jersey’s SIP

revision described in paragraph (e)(1) of this section, the 

Administrator has already started recording any allocations of

TR NOX Ozone Season allowances under subpart BBBBB of part 97 of 

this chapter to units in the State for a control period in any 

year, the provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.

43. Section 52.1585 is amended by designating the existing text 

as paragraph (a) and adding new paragraphs (b) and (c) to read 

as follows:
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§ 52.1585 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

* * * * * 

(b) Notwithstanding any provisions of paragraph (a) of this 

section and subparts AAA through III of part 97 of this chapter 

and any State’s SIP to the contrary: 

(1) With regard to any control period that begins after December 

31, 2011,

(i) The provisions of paragraph (a) of this section relating to 

SO2 emissions shall not be applicable; and

(ii) The Administrator will not carry out any of the functions 

set forth for the Administrator in subparts AAA through III of 

part 97 of this chapter; and

(2) The Administrator will not deduct for excess emissions any 

CAIR SO2 allowances allocated for 2012 or any year thereafter.

(c)(1) The owner and operator of each source and each unit 

located in the State of New Jersey and for which requirements 

are set forth under the TR SO2 Group 1 Trading Program in subpart 

CCCCC of part 97 of this chapter must comply with such 
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requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to New Jersey’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.39, except to 

the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (c)(1) of this 

section, if, at the time of the approval of New Jersey’s SIP

revision described in paragraph (c)(1) of this section, the 

Administrator has already started recording any allocations of 

TR SO2 Group 1 allowances under subpart CCCCC of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart CCCCC of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 1 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 

Subpart HH—New York

44. Section 52.1684 is revised to read as follows:
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§ 52.1684 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

(a)(1) The owner and operator of each source and each unit 

located in the State of New York and Indian country within the 

borders of the State and for which requirements are set forth 

under the TR NOX Annual Trading Program in subpart AAAAA of part 

97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to New York’s State Implementation Plan (SIP) as correcting in 

part the SIP’s deficiency that is the basis for the TR Federal 

Implementation Plan under §52.38(a), except to the extent the 

Administrator’s approval is partial or conditional. The 

obligation to comply with such requirements with regard to 

sources and units located in Indian country within the borders 

of the State will not be eliminated by the promulgation of an 

approval by the Administrator of a revision to New York’s SIP.

(2) Notwithstanding the provisions of paragraph (a)(1) of this 

section, if, at the time of the approval of New York’s SIP

revision described in paragraph (a)(1) of this section, the 
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Administrator has already started recording any allocations of 

TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

(b)(1) The owner and operator of each source and each unit 

located in the State of New York and Indian country within the 

borders of the State and for which requirements are set forth 

under the TR NOX Ozone Season Trading Program in subpart BBBBB of 

part 97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to New York’s State Implementation Plan (SIP) as correcting in 

part the SIP’s deficiency that is the basis for the TR Federal 

Implementation Plan under §52.38(b), except to the extent the 

Administrator’s approval is partial or conditional. The 

obligation to comply with such requirements with regard to 

sources and units located in Indian country within the borders 
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of the State will not be eliminated by the promulgation of an 

approval by the Administrator of a revision to New York’s SIP.

(2) Notwithstanding the provisions of paragraph (b)(1) of this 

section, if, at the time of the approval of New York’s SIP

revision described in paragraph (b)(1) of this section, the 

Administrator has already started recording any allocations of 

TR NOX Ozone Season allowances under subpart BBBBB of part 97 of 

this chapter to units in the State for a control period in any 

year, the provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.

45. Section 52.1685 is added to read as follows:

§ 52.1685 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

(a) The owner and operator of each source and each unit located 

in the State of New York and Indian country within the borders 
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of the State and for which requirements are set forth under the 

TR SO2 Group 1 Trading Program in subpart CCCCC of part 97 of 

this chapter must comply with such requirements. The obligation 

to comply with such requirements with regard to sources and 

units in the State will be eliminated by the promulgation of an 

approval by the Administrator of a revision to New York’s State 

Implementation Plan (SIP) as correcting in part the SIP’s 

deficiency that is the basis for the TR Federal Implementation 

Plan under §52.39, except to the extent the Administrator’s 

approval is partial or conditional. The obligation to comply 

with such requirements with regard to sources and units located 

in Indian country within the borders of the State will not be 

eliminated by the promulgation of an approval by the 

Administrator of a revision to New York’s SIP.

(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of New York’s SIP

revision described in paragraph (a) of this section, the 

Administrator has already started recording any allocations of 

TR SO2 Group 1 allowances under subpart CCCCC of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart CCCCC of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 1 allowances to units in the State
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for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 

Subpart II—North Carolina

46. Section 52.1784 is revised to read as follows:

§ 52.1784 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

(a)(1) The owner and operator of each source and each unit 

located in the State of North Carolina and Indian country within 

the borders of the State and for which requirements are set 

forth under the TR NOX Annual Trading Program in subpart AAAAA of 

part 97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to North Carolina’s State Implementation Plan (SIP) as 

correcting in part the SIP’s deficiency that is the basis for 

the TR Federal Implementation Plan under §52.38(a), except to 

the extent the Administrator’s approval is partial or 

conditional. The obligation to comply with such requirements 
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with regard to sources and units located in Indian country 

within the borders of the State will not be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to North Carolina’s SIP.

(2) Notwithstanding the provisions of paragraph (a)(1) of this 

section, if, at the time of the approval of North Carolina’s SIP

revision described in paragraph (a)(1) of this section, the 

Administrator has already started recording any allocations of 

TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

(b)(1) The owner and operator of each source and each unit 

located in the State of North Carolina and Indian country within 

the borders of the State and for which requirements are set 

forth under the TR NOX Ozone Season Trading Program in subpart 

BBBBB of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements

with regard to sources and units in the State will be eliminated 
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by the promulgation of an approval by the Administrator of a 

revision to North Carolina’s State Implementation Plan (SIP) as 

correcting in part the SIP’s deficiency that is the basis for 

the TR Federal Implementation Plan under §52.38(b), except to 

the extent the Administrator’s approval is partial or 

conditional. The obligation to comply with such requirements 

with regard to sources and units located in Indian country 

within the borders of the State will not be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to North Carolina’s SIP.

(2) Notwithstanding the provisions of paragraph (b)(1) of this 

section, if, at the time of the approval of North Carolina’s SIP

revision described in paragraph (b)(1) of this section, the 

Administrator has already started recording any allocations of 

TR NOX Ozone Season allowances under subpart BBBBB of part 97 of 

this chapter to units in the State for a control period in any 

year, the provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.
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47. Section 52.1785 is revised to read as follows:

§ 52.1785 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

(a) The owner and operator of each source and each unit located 

in the State of North Carolina and Indian country within the 

borders of the State and for which requirements are set forth 

under the TR SO2 Group 1 Trading Program in subpart CCCCC of part 

97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to North Carolina’s State Implementation Plan (SIP) as 

correcting in part the SIP’s deficiency that is the basis for 

the TR Federal Implementation Plan under §52.39, except to the 

extent the Administrator’s approval is partial or conditional. 

The obligation to comply with such requirements with regard to 

sources and units located in Indian country within the borders 

of the State will not be eliminated by the promulgation of an 

approval by the Administrator of a revision to North Carolina’s 

SIP.
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(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of North Carolina’s SIP

revision described in paragraph (a) of this section, the 

Administrator has already started recording any allocations of 

TR SO2 Group 1 allowances under subpart CCCCC of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart CCCCC of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 1 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 

Subpart KK—Ohio

48. Section 52.1891 is added to read as follows:

§ 52.1891 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

(a)(1) The owner and operator of each source and each unit 

located in the State of Ohio and for which requirements are set 

forth under the TR NOX Annual Trading Program in subpart AAAAA of 

part 97 of this chapter must comply with such requirements. The 
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obligation to comply with such requirements will be eliminated 

by the promulgation of an approval by the Administrator of a 

revision to Ohio’s State Implementation Plan (SIP) as correcting 

the SIP’s deficiency that is the basis for the TR Federal 

Implementation Plan under §52.38(a), except to the extent the 

Administrator’s approval is partial or conditional.

(2) Notwithstanding the provisions of paragraph (a)(1) of this 

section, if, at the time of the approval of Ohio’s SIP revision 

described in paragraph (a)(1) of this section, the Administrator 

has already started recording any allocations of TR NOX Annual

allowances under subpart AAAAA of part 97 of this chapter to 

units in the State for a control period in any year, the 

provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

(b)(1) The owner and operator of each source and each unit 

located in the State of Ohio and for which requirements are set 

forth under the TR NOX Ozone Season Trading Program in subpart 

BBBBB of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 
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will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Ohio’s State Implementation Plan 

(SIP) as correcting the SIP’s deficiency that is the basis for 

the TR Federal Implementation Plan under §52.38(b), except to 

the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (b)(1) of this 

section, if, at the time of the approval of Ohio’s SIP revision 

described in paragraph (b)(1) of this section, the Administrator 

has already started recording any allocations of TR NOX Ozone 

Season allowances under subpart BBBBB of part 97 of this chapter 

to units in the State for a control period in any year, the 

provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.

49. Section 52.1892 is added to read as follows:

§ 52.1892 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?
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(a) The owner and operator of each source and each unit located 

in the State of Ohio and for which requirements are set forth 

under the TR SO2 Group 1 Trading Program in subpart CCCCC of part 

97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements will be eliminated 

by the promulgation of an approval by the Administrator of a 

revision to Ohio’s State Implementation Plan (SIP) as correcting 

the SIP’s deficiency that is the basis for the TR Federal 

Implementation Plan under §52.39, except to the extent the 

Administrator’s approval is partial or conditional.

(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of Ohio’s SIP revision 

described in paragraph (a) of this section, the Administrator 

has already started recording any allocations of TR SO2 Group 1 

allowances under subpart CCCCC of part 97 of this chapter to 

units in the State for a control period in any year, the 

provisions of subpart CCCCC of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 1 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 
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Subpart NN—Pennsylvania

50. Section 52.2040 is added to read as follows:

§ 52.2040 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen

oxides?

(a)(1) The owner and operator of each source and each unit 

located in the State of Pennsylvania and for which requirements 

are set forth under the TR NOX Annual Trading Program in subpart 

AAAAA of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Pennsylvania’s State 

Implementation Plan (SIP) as correcting the SIP’s deficiency 

that is the basis for the TR Federal Implementation Plan under 

§52.38(a), except to the extent the Administrator’s approval is 

partial or conditional.

(2) Notwithstanding the provisions of paragraph (a)(1) of this 

section, if, at the time of the approval of Pennsylvania’s SIP

revision described in paragraph (a)(1) of this section, the 

Administrator has already started recording any allocations of 
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TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

(b)(1) The owner and operator of each source and each unit 

located in the State of Pennsylvania and for which requirements 

are set forth under the TR NOX Ozone Season Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Pennsylvania’s State 

Implementation Plan (SIP) as correcting the SIP’s deficiency 

that is the basis for the TR Federal Implementation Plan under 

§52.38(b), except to the extent the Administrator’s approval is 

partial or conditional.

(2) Notwithstanding the provisions of paragraph (b)(1) of this 

section, if, at the time of the approval of Pennsylvania’s SIP

revision described in paragraph (b)(1) of this section, the 

Administrator has already started recording any allocations of
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TR NOX Ozone Season allowances under subpart BBBBB of part 97 of 

this chapter to units in the State for a control period in any 

year, the provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.

51. Section 52.2041 is added to read as follows:

§ 52.2041 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

(a) The owner and operator of each source and each unit located 

in the State of Pennsylvania and for which requirements are set 

forth under the TR SO2 Group 1 Trading Program in subpart CCCCC 

of part 97 of this chapter must comply with such requirements. 

The obligation to comply with such requirements will be

eliminated by the promulgation of an approval by the 

Administrator of a revision to Pennsylvania’s State 

Implementation Plan (SIP) as correcting the SIP’s deficiency 

that is the basis for the TR Federal Implementation Plan under 
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§52.39, except to the extent the Administrator’s approval is 

partial or conditional.

(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of Pennsylvania’s SIP

revision described in paragraph (a) of this section, the 

Administrator has already started recording any allocations of 

TR SO2 Group 1 allowances under subpart CCCCC of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart CCCCC of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 1 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

Subpart PP—South Carolina

52. Section 52.2140 is revised to read as follows:

§ 52.2140 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?
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(a)(1) The owner and operator of each source and each unit 

located in the State of South Carolina and Indian country within 

the borders of the State and for which requirements are set 

forth under the TR NOX Annual Trading Program in subpart AAAAA of 

part 97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to South Carolina’s State Implementation Plan (SIP) as 

correcting in part the SIP’s deficiency that is the basis for 

the TR Federal Implementation Plan under §52.38(a), except to 

the extent the Administrator’s approval is partial or 

conditional. The obligation to comply with such requirements 

with regard to sources and units located in Indian country 

within the borders of the State will not be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to South Carolina’s SIP.

(2) Notwithstanding the provisions of paragraph (a)(1) of this 

section, if, at the time of the approval of South Carolina’s SIP

revision described in paragraph (a)(1) of this section, the 

Administrator has already started recording any allocations of 

TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 
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the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

(b)(1) The owner and operator of each source and each unit 

located in the State of South Carolina and Indian country within 

the borders of the State and for which requirements are set 

forth under the TR NOX Ozone Season Trading Program in subpart 

BBBBB of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements

with regard to sources and units in the State will be eliminated 

by the promulgation of an approval by the Administrator of a 

revision to South Carolina’s State Implementation Plan (SIP) as 

correcting in part the SIP’s deficiency that is the basis for 

the TR Federal Implementation Plan under §52.38(b), except to 

the extent the Administrator’s approval is partial or 

conditional. The obligation to comply with such requirements 

with regard to sources and units located in Indian country 

within the borders of the State will not be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to South Carolina’s SIP.
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(2) Notwithstanding the provisions of paragraph (b)(1) of this 

section, if, at the time of the approval of South Carolina’s SIP

revision described in paragraph (b)(1) of this section, the 

Administrator has already started recording any allocations of

TR NOX Ozone Season allowances under subpart BBBBB of part 97 of 

this chapter to units in the State for a control period in any 

year, the provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.

53. Section 52.2141 is revised to read as follows:

§ 52.2141 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

(a) The owner and operator of each source and each unit located 

in the State of South Carolina and Indian country within the 

borders of the State and for which requirements are set forth 

under the TR SO2 Group 2 Trading Program in subpart DDDDD of part 

97 of this chapter must comply with such requirements. The 
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obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to South Carolina’s State Implementation Plan (SIP) as 

correcting in part the SIP’s deficiency that is the basis for 

the TR Federal Implementation Plan under §52.39, except to the 

extent the Administrator’s approval is partial or conditional. 

The obligation to comply with such requirements with regard to 

sources and units located in Indian country within the borders 

of the State will not be eliminated by the promulgation of an 

approval by the Administrator of a revision to South Carolina’s 

SIP.

(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of South Carolina’s SIP

revision described in paragraph (a) of this section, the 

Administrator has already started recording any allocations of 

TR SO2 Group 1 allowances under subpart CCCCC of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart CCCCC of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 1 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 
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Subpart RR—Tennessee 

54. Section 52.2240 is amended by adding new paragraphs (c), 

(d), and (e) to read as follows:

§ 52.2240 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(c) Notwithstanding any provisions of paragraphs (a) and (b) of 

this section and subparts AA through II and AAAA through IIII of 

part 97 of this chapter to the contrary: 

(1) With regard to any control period that begins after December 

31, 2011,

(i) The provisions in paragraphs (a) and (b) of this section 

relating to NOX annual or ozone season emissions shall not be 

applicable; and

(ii) The Administrator will not carry out any of the functions 

set forth for the Administrator in subparts AA through II and 

AAAA through IIII of part 97 of this chapter; and
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(2) The Administrator will not deduct for excess emissions any 

CAIR NOX allowances or CAIR NOX Ozone Season allowances allocated 

for 2012 or any year thereafter;

(3) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX

Allowance Tracking System accounts all CAIR NOX allowances 

allocated for a control period in 2012 and any subsequent year, 

and, thereafter, no holding or surrender of CAIR NOX allowances 

will be required with regard to emissions or excess emissions 

for such control periods; and 

(4) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX Ozone 

Season Allowance Tracking System accounts all CAIR NOX Ozone 

Season allowances allocated for a control period in 2012 and any 

subsequent year, and, thereafter, no holding or surrender of 

CAIR NOX Ozone Season allowances will be required with regard to 

emissions or excess emissions for such control periods.

(d)(1) The owner and operator of each source and each unit 

located in the State of Tennessee and for which requirements are 

set forth under the TR NOX Annual Trading Program in subpart 

AAAAA of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 
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will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Tennessee’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(a), except 

to the extent the Administrator’s approval is partial or 

conditional. The obligation to comply with such requirements 

with regard to sources and units located in Indian country 

within the borders of the State will not be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Tennessee’s SIP.

(2) Notwithstanding the provisions of paragraph (d)(1) of this 

section, if, at the time of the approval of Tennessee’s SIP

revision described in paragraph (d)(1) of this section, the 

Administrator has already started recording any allocations of 

TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.
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(e)(1) The owner and operator of each source and each unit 

located in the State of Tennessee and for which requirements are 

set forth under the TR NOX Ozone Season Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Tennessee’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(b), except 

to the extent the Administrator’s approval is partial or 

conditional. The obligation to comply with such requirements 

with regard to sources and units located in Indian country 

within the borders of the State will not be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Tennessee’s SIP.

(2) Notwithstanding the provisions of paragraph (e)(1) of this 

section, if, at the time of the approval of Tennessee’s SIP

revision described in paragraph (e)(1) of this section, the 

Administrator has already started recording any allocations of

TR NOX Ozone Season allowances under subpart BBBBB of part 97 of 

this chapter to units in the State for a control period in any 

year, the provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 
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recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.

55. Section 52.2241 is amended by designating the existing text 

as paragraph (a) and adding new paragraphs (b) and (c) to read 

as follows:

§ 52.2241 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

* * * * * 

(b) Notwithstanding any provisions of paragraph (a) of this 

section and subparts AAA through III of part 97 of this chapter 

and any State’s SIP to the contrary: 

(1) With regard to any control period that begins after December 

31, 2011,

(i) The provisions of paragraph (a) of this section relating to 

SO2 emissions shall not be applicable; and
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(ii) The Administrator will not carry out any of the functions 

set forth for the Administrator in subparts AAA through III of 

part 97 of this chapter; and

(2) The Administrator will not deduct for excess emissions any 

CAIR SO2 allowances allocated for 2012 or any year thereafter.

(c)(1) The owner and operator of each source and each unit 

located in the State of Tennessee and for which requirements are 

set forth under the TR SO2 Group 1 Trading Program in subpart 

CCCCC of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Tennessee’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.39, except to 

the extent the Administrator’s approval is partial or 

conditional. The obligation to comply with such requirements 

with regard to sources and units located in Indian country 

within the borders of the State will not be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Tennessee’s SIP.

(2) Notwithstanding the provisions of paragraph (c)(1) of this 

section, if, at the time of the approval of Tennessee’s SIP
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revision described in paragraph (c)(1) of this section, the 

Administrator has already started recording any allocations of 

TR SO2 Group 1 allowances under subpart CCCCC of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart CCCCC of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 1 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 

Subpart SS—Texas 

56. Section 52.2283 is amended by revising paragraph (b) and 

adding new paragraphs (c) and (d) to read as follows:

§ 52.2283 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(b) Notwithstanding any provisions of paragraph (a) of this 

section and subparts AA through II of part 97 of this chapter to 

the contrary: 
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(1) With regard to any control period that begins after December 

31, 2011,

(i) The provisions in paragraph (a) of this section relating to 

NOX annual emissions shall not be applicable; and

(ii) The Administrator will not carry out any of the functions 

set forth for the Administrator in subparts AA through II of 

part 97 of this chapter; 

(2) The Administrator will not deduct for excess emissions any 

CAIR NOX allowances allocated for 2012 or any year thereafter;

(3) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX

Allowance Tracking System accounts all CAIR NOX allowances 

allocated for a control period in 2012 and any subsequent year, 

and, thereafter, no holding or surrender of CAIR NOX allowances 

will be required with regard to emissions or excess emissions 

for such control periods. 

(c)(1) The owner and operator of each source and each unit 

located in the State of Texas and Indian country within the 

borders of the State and for which requirements are set forth 

under the TR NOX Annual Trading Program in subpart AAAAA of part 

97 of this chapter must comply with such requirements. The 
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obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Texas’ State Implementation Plan (SIP) as correcting in part 

the SIP’s deficiency that is the basis for the TR Federal 

Implementation Plan under §52.38(a), except to the extent the 

Administrator’s approval is partial or conditional. The 

obligation to comply with such requirements with regard to 

sources and units located in Indian country within the borders 

of the State will not be eliminated by the promulgation of an 

approval by the Administrator of a revision to Texas’ SIP.

(2) Notwithstanding the provisions of paragraph (c)(1) of this 

section, if, at the time of the approval of Texas’ SIP revision 

described in paragraph (c)(1) of this section, the Administrator 

has already started recording any allocations of TR NOX Annual

allowances under subpart AAAAA of part 97 of this chapter to 

units in the State for a control period in any year, the 

provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.
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(d)(1) The owner and operator of each source and each unit 

located in the State of Texas and Indian country within the 

borders of the State and for which requirements are set forth 

under the TR NOX Ozone Season Trading Program in subpart BBBBB of 

part 97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Texas’ State Implementation Plan (SIP) as correcting in part 

the SIP’s deficiency that is the basis for the TR Federal 

Implementation Plan under §52.38(b), except to the extent the 

Administrator’s approval is partial or conditional. The 

obligation to comply with such requirements with regard to 

sources and units located in Indian country within the borders 

of the State will not be eliminated by the promulgation of an 

approval by the Administrator of a revision to Texas’ SIP.

(2) Notwithstanding the provisions of paragraph (d)(1) of this 

section, if, at the time of the approval of Texas’ SIP revision 

described in paragraph (d)(1) of this section, the Administrator 

has already started recording any allocations of TR NOX Ozone 

Season allowances under subpart BBBBB of part 97 of this chapter 

to units in the State for a control period in any year, the 

provisions of subpart BBBBB of part 97 of this chapter 
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authorizing the Administrator to complete the allocation and 

recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.

57. Section 52.2284 is amended by designating the existing text 

as paragraph (a) and adding new paragraphs (b) and (c) to read 

as follows:

§ 52.2284 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

* * * * * 

(b) Notwithstanding any provisions of paragraph (a) of this 

section and subparts AAA through III of part 97 of this chapter 

and any State’s SIP to the contrary: 

(1) With regard to any control period that begins after December 

31, 2011,

(i) The provisions of paragraph (a) of this section relating to 

SO2 emissions shall not be applicable; and
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(ii) The Administrator will not carry out any of the functions 

set forth for the Administrator in subparts AAA through III of 

part 97 of this chapter; and

(2) The Administrator will not deduct for excess emissions any 

CAIR SO2 allowances allocated for 2012 or any year thereafter.

(c)(1) The owner and operator of each source and each unit 

located in the State of Texas and Indian country within the 

borders of the State and for which requirements are set forth 

under the TR SO2 Group 2 Trading Program in subpart DDDDD of part 

97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Texas’ State Implementation Plan (SIP) as correcting in part 

the SIP’s deficiency that is the basis for the TR Federal 

Implementation Plan under §52.39, except to the extent the 

Administrator’s approval is partial or conditional. The 

obligation to comply with such requirements with regard to 

sources and units located in Indian country within the borders 

of the State will not be eliminated by the promulgation of an 

approval by the Administrator of a revision to Texas’ SIP.
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(2) Notwithstanding the provisions of paragraph (c)(1) of this 

section, if, at the time of the approval of Texas’ SIP revision 

described in paragraph (c)(1) of this section, the Administrator 

has already started recording any allocations of TR SO2 Group 2 

allowances under subpart DDDDD of part 97 of this chapter to 

units in the State for a control period in any year, the 

provisions of subpart DDDDD of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 2 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 

Subpart VV—Virginia

58. Section 52.2440 is added to read as follows:

§ 52.2440 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

(a)(1) The owner and operator of each source and each unit 

located in the State of Virginia and for which requirements are 

set forth under the TR NOX Annual Trading Program in subpart 

AAAAA of part 97 of this chapter must comply with such 
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requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Virginia’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(a), except 

to the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (a)(1) of this 

section, if, at the time of the approval of Virginia’s SIP

revision described in paragraph (a)(1) of this section, the 

Administrator has already started recording any allocations of

TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

(b)(1) The owner and operator of each source and each unit 

located in the State of Virginia and for which requirements are 

set forth under the TR NOX Ozone Season Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 
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requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Virginia’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.38(b), except 

to the extent the Administrator’s approval is partial or 

conditional.

(2) Notwithstanding the provisions of paragraph (b)(1) of this 

section, if, at the time of the approval of Virginia’s SIP

revision described in paragraph (b)(1) of this section, the 

Administrator has already started recording any allocations of

TR NOX Ozone Season allowances under subpart BBBBB of part 97 of 

this chapter to units in the State for a control period in any 

year, the provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.

59. Section 52.2241 is added to read as follows:
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§ 52.2241 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

(a) The owner and operator of each source and each unit located 

in the State of Virginia and for which requirements are set 

forth under the TR SO2 Group 1 Trading Program in subpart CCCCC 

of part 97 of this chapter must comply with such requirements. 

The obligation to comply with such requirements will be 

eliminated by the promulgation of an approval by the 

Administrator of a revision to Virginia’s State Implementation 

Plan (SIP) as correcting the SIP’s deficiency that is the basis 

for the TR Federal Implementation Plan under §52.39, except to 

the extent the Administrator’s approval is partial or 

conditional.

(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of Virginia’s SIP

revision described in paragraph (a) of this section, the 

Administrator has already started recording any allocations of

TR SO2 Group 1 allowances under subpart CCCCC of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart CCCCC of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 
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recordation of TR SO2 Group 1 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 

Subpart XX—West Virginia

60. Section 52.2540 is added to read as follows:

§ 52.2540 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

(a)(1) The owner and operator of each source and each unit 

located in the State of West Virginia and for which requirements 

are set forth under the TR NOX Annual Trading Program in subpart 

AAAAA of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to West Virginia’s State 

Implementation Plan (SIP) as correcting the SIP’s deficiency 

that is the basis for the TR Federal Implementation Plan under 

§52.38(a), except to the extent the Administrator’s approval is 

partial or conditional.
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(2) Notwithstanding the provisions of paragraph (a)(1) of this 

section, if, at the time of the approval of West Virginia’s SIP

revision described in paragraph (a)(1) of this section, the 

Administrator has already started recording any allocations of 

TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

(b)(1) The owner and operator of each source and each unit 

located in the State of West Virginia and for which requirements 

are set forth under the TR NOX Ozone Season Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to West Virginia’s State 

Implementation Plan (SIP) as correcting the SIP’s deficiency 

that is the basis for the TR Federal Implementation Plan under 

§52.38(b), except to the extent the Administrator’s approval is 

partial or conditional.
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(2) Notwithstanding the provisions of paragraph (b)(1) of this 

section, if, at the time of the approval of West Virginia’s SIP

revision described in paragraph (b)(1) of this section, the 

Administrator has already started recording any allocations of

TR NOX Ozone Season allowances under subpart BBBBB of part 97 of 

this chapter to units in the State for a control period in any 

year, the provisions of subpart BBBBB of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Ozone Season allowances to units in the 

State for each such control period shall continue to apply, 

unless provided otherwise by such approval of the State’s SIP 

revision.

61. Section 52.2541 is added to read as follows:

§ 52.2541 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

(a) The owner and operator of each source and each unit located 

in the State of West Virginia and for which requirements are set 

forth under the TR SO2 Group 1 Trading Program in subpart CCCCC 

of part 97 of this chapter must comply with such requirements. 

The obligation to comply with such requirements will be 
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eliminated by the promulgation of an approval by the 

Administrator of a revision to West Virginia’s State 

Implementation Plan (SIP) as correcting the SIP’s deficiency 

that is the basis for the TR Federal Implementation Plan under 

§52.39, except to the extent the Administrator’s approval is 

partial or conditional.

(b) Notwithstanding the provisions of paragraph (a) of this 

section, if, at the time of the approval of West Virginia’s SIP

revision described in paragraph (a) of this section, the 

Administrator has already started recording any allocations of

TR SO2 Group 1 allowances under subpart CCCCC of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart CCCCC of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 1 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 

Subpart YY—Wisconsin 

62. Section 52.2587 is amended by adding new paragraphs (c) and 

(d) to read as follows:
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§ 52.2587 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(c) Notwithstanding any provisions of paragraphs (a) and (b) of 

this section and subparts AA through II and AAAA through IIII of 

part 97 of this chapter to the contrary: 

(1) With regard to any control period that begins after December 

31, 2011,

(i) The provisions in paragraphs (a) and (b) of this section 

relating to NOX annual or ozone season emissions shall not be 

applicable; and

(ii) The Administrator will not carry out any of the functions 

set forth for the Administrator in subparts AA through II and 

AAAA through IIII of part 97 of this chapter; and

(2) The Administrator will not deduct for excess emissions any 

CAIR NOX allowances or CAIR NOX Ozone Season allowances allocated 

for 2012 or any year thereafter;

(3) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX

Allowance Tracking System accounts all CAIR NOX allowances 
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allocated for a control period in 2012 and any subsequent year, 

and, thereafter, no holding or surrender of CAIR NOX allowances 

will be required with regard to emissions or excess emissions 

for such control periods; and 

(4) By [INSERT DATE 90 DAYS AFTER PUBLICATION IN THE FEDERAL 

REGISTER], the Administrator will remove from the CAIR NOX Ozone 

Season Allowance Tracking System accounts all CAIR NOX Ozone 

Season allowances allocated for a control period in 2012 and any 

subsequent year, and, thereafter, no holding or surrender of 

CAIR NOX Ozone Season allowances will be required with regard to 

emissions or excess emissions for such control periods.

(d)(1) The owner and operator of each source and each unit 

located in the State of Wisconsin and Indian country within the 

borders of the State and for which requirements are set forth 

under the TR NOX Annual Trading Program in subpart AAAAA of part 

97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Wisconsin’s State Implementation Plan (SIP) as correcting in 

part the SIP’s deficiency that is the basis for the TR Federal 

Implementation Plan under §52.38(a), except to the extent the 

Administrator’s approval is partial or conditional. The 
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obligation to comply with such requirements with regard to 

sources and units located in Indian country within the borders 

of the State will not be eliminated by the promulgation of an 

approval by the Administrator of a revision to Wisconsin’s SIP.

(2) Notwithstanding the provisions of paragraph (d)(1) of this 

section, if, at the time of the approval of Wisconsin’s SIP

revision described in paragraph (d)(1) of this section, the 

Administrator has already started recording any allocations of

TR NOX Annual allowances under subpart AAAAA of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart AAAAA of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR NOX Annual allowances to units in the State for 

each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision.

(e) [Reserved] 

63. Section 52.2588 is amended by designating the existing text 

as paragraph (a) and adding new paragraphs (b) and (c) to read 

as follows:
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§ 52.2588 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of sulfur 

dioxide?

* * * * * 

(b) Notwithstanding any provisions of paragraph (a) of this 

section and subparts AAA through III of part 97 of this chapter 

and any State’s SIP to the contrary: 

(1) With regard to any control period that begins after December 

31, 2011,

(i) The provisions of paragraph (a) of this section relating to 

SO2 emissions shall not be applicable; and

(ii) The Administrator will not carry out any of the functions 

set forth for the Administrator in subparts AAA through III of 

part 97 of this chapter; and

(2) The Administrator will not deduct for excess emissions any 

CAIR SO2 allowances allocated for 2012 or any year thereafter.

(c)(1) The owner and operator of each source and each unit 

located in the State of Wisconsin and Indian country within the 

borders of the State and for which requirements are set forth 

under the TR SO2 Group 1 Trading Program in subpart CCCCC of part 
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97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Wisconsin’s State Implementation Plan (SIP) as correcting in 

part the SIP’s deficiency that is the basis for the TR Federal 

Implementation Plan under §52.39, except to the extent the 

Administrator’s approval is partial or conditional. The 

obligation to comply with such requirements with regard to 

sources and units located in Indian country within the borders 

of the State will not be eliminated by the promulgation of an 

approval by the Administrator of a revision to Wisconsin’s SIP.

(2) Notwithstanding the provisions of paragraph (c)(1) of this 

section, if, at the time of the approval of Wisconsin’s SIP

revision described in paragraph (c)(1) of this section, the 

Administrator has already started recording any allocations of

TR SO2 Group 1 allowances under subpart CCCCC of part 97 of this 

chapter to units in the State for a control period in any year, 

the provisions of subpart CCCCC of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of TR SO2 Group 1 allowances to units in the State

for each such control period shall continue to apply, unless 

provided otherwise by such approval of the State’s SIP revision. 
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PART 72—[AMENDED]

64. The authority citation for Part 72 is revised to read as 

follows:

Authority: 42 U.S.C. 7401, 7403, 7410, 7411, 7426, 7601, et

seq.

§ 72.2 [Amended]

65. Section 72.2 is amended by removing the definition of 

“Interested person”. 

PART 78—[AMENDED]

66. The authority citation for Part 78 continues to read as 

follows:

Authority: 42 U.S.C. 7401, 7403, 7410, 7411, 7426, 7601, et

seq.

67. Section 78.1 is amended by adding paragraphs (b)(13) through 

(b)(16) to read as follows: 

§ 78.1 Purpose and scope.

* * * * * 

(b) * * *

(13) Under subpart AAAAA of part 97 of this chapter,
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(i) The decision on allocation of TR NOX Annual allowances under 

§97.411(a)(2) and (b) of this chapter.

(ii) The decision on the transfer of TR NOX Annual allowances 

under §97.423 of this chapter.

(iii) The decision on the deduction of TR NOX Annual allowances 

under §§97.424 and 97.425 of this chapter. 

(iv) The correction of an error in an Allowance Management 

System account under §97.427 of this chapter. 

(iv) The adjustment of information in a submission and the 

decision on the deduction and transfer of TR NOX Annual 

allowances based on the information as adjusted under §97.428 of 

this chapter. 

(vi) The finalization of control period emissions data, 

including retroactive adjustment based on audit.

(vii) The approval or disapproval of a petition under §97.435 

of this chapter. 

(14) Under subpart BBBBB of part 97 of this chapter,

(i) The decision on allocation of TR NOX Ozone Season allowances 

under §97.511(a)(2) and (b) of this chapter.
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(ii) The decision on the transfer of TR NOX Ozone Season 

allowances under §97.523 of this chapter.

(iii) The decision on the deduction of TR NOX Ozone Season 

allowances under §§97.524 and 97.525 of this chapter. 

(iv) The correction of an error in an Allowance Management 

System account under §97.527 of this chapter. 

(iv) The adjustment of information in a submission and the 

decision on the deduction and transfer of TR NOX Ozone Season 

allowances based on the information as adjusted under §97.528 of 

this chapter. 

(vi) The finalization of control period emissions data, 

including retroactive adjustment based on audit.

(vii) The approval or disapproval of a petition under §97.535 

of this chapter. 

(15) Under subpart CCCCC of part 97 of this chapter,

(i) The decision on allocation of TR SO2 Group 1 allowances 

under §97.611(a)(2) and (b) of this chapter.

(ii) The decision on the transfer of TR SO2 Group 1 allowances 

under §97.623 of this chapter.
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(iii) The decision on the deduction of TR SO2 Group 1 allowances 

under §§97.624 and 97.625 of this chapter. 

(iv) The correction of an error in an Allowance Management 

System account under §97.627 of this chapter. 

(iv) The adjustment of information in a submission and the 

decision on the deduction and transfer of TR SO2 Group 1 

allowances based on the information as adjusted under §97.628 of 

this chapter. 

(vi) The finalization of control period emissions data, 

including retroactive adjustment based on audit.

(vii) The approval or disapproval of a petition under §97.635 

of this chapter. 

(16) Under subpart DDDDD of part 97 of this chapter,

(i) The decision on allocation of TR SO2 Group 2 allowances 

under §97.711(a)(2) and (b) of this chapter.

(ii) The decision on the transfer of TR SO2 Group 1 allowances 

under §97.723 of this chapter.

(iii) The decision on the deduction of TR SO2 Group 1 allowances 

under §§97.724 and 97.725 of this chapter. 
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(iv) The correction of an error in an Allowance Management 

System account under §97.727 of this chapter. 

(iv) The adjustment of information in a submission and the 

decision on the deduction and transfer of TR SO2 Group 1 

allowances based on the information as adjusted under §97.728 of 

this chapter. 

(vi) The finalization of control period emissions data, 

including retroactive adjustment based on audit.

(vii) The approval or disapproval of a petition under §97.735 

of this chapter. 

* * * * * 

68. Section 78.2 is revised to read as follows: 

§ 78.2 General.

(a) Definitions. (1) The terms used in this subpart with regard 

to a decision of the Administrator that is appealed under this 

section shall have the meaning as set forth in the regulations 

under which the Administrator made such decision and as set 

forth in paragraph (a)(2) of this section.

(2) Interested person means, with regard to a decision of the 

Administrator:
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(i) Any person who submitted comments, or testified at a public 

hearing, pursuant to an opportunity for comment provided by the 

Administrator as part of the process of making such decision;

(ii) Who submitted objections pursuant to an opportunity for 

objections provided by the Administrator as part of the process 

of making such decision; or

(iii) Who submitted, to the Administrator and in a format 

prescribed by the Administrator, his or her name, service 

address, telephone number, and facsimile number and identified 

such decision in order to be placed on a list of persons 

interested in such decision;

(iv) Provided that the Administrator may update the list of 

interested persons from time to time by requesting additional 

written indication of continued interest from the persons listed 

and may delete from the list the name of any person failing to 

respond as requested. 

(b) Availability of information. The availability to the public 

of information provided to, or otherwise obtained by, the 

Administrator under this subpart shall be governed by part 2 of 

this chapter. 
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(c) Computation of time. (1) In computing any period of time 

prescribed or allowed under this part, except as otherwise 

provided, the day of the event from which the period begins to 

run shall not be included, and Saturdays, Sundays, and federal 

holidays shall be included. When the period ends on a Saturday, 

Sunday, or federal holiday, the stated period shall be extended 

to include the next business day. 

(2) Where a document is served by first class mail or commercial 

delivery service, but not by overnight or same-day delivery, 5 

days shall be added to the time prescribed or allowed under this 

part for the filing of a responsive document or for otherwise 

responding.

69. Section 78.3 is amended by:

a. In paragraphs (a)(1)(iii), (a)(3)(ii), (a)(4)(ii), 

(a)(5)(ii), (a)(6)(ii), (a)(7)(ii), (a)(8)(ii), and (a)(9)(ii), 

adding, after the word “person”, the words “with regard to the 

decision”.

b. Adding paragraph (a)(10); 

c. In paragraph (b)(3)(i), removing the words “paragraph (a)(1) 

and (2)” and adding, in their place, the words “paragraph 

(a)(1), (2), and (10)”; and
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d. Adding paragraph (d)(11) to read as follows:

§ 78.3 Petition for administrative review and request or 

evidentiary hearing.

(a) * * * 

(10) The following persons may petition for administrative 

review of a decision of the Administrator that is made under 

subparts AAAAA, BBBBB, CCCCC, and DDDDD of part 97 of this 

chapter: 

(i) The designated representative for a unit or source, or the 

authorized account representative for any Allowance Management 

System account, covered by the decision; or

(ii) Any interested person with regard to the decision.

* * * * *

(d) * * *

(11) Any provision or requirement of subparts AAAAA, BBBBB, 

CCCCC, or DDDDD of part 97 of this chapter, including the 

standard requirements under §97.406, §97.506, §97.606, or 

§97.706 of this chapter and any emission monitoring or reporting 

requirements.

* * * * * 
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70. Section 78.4 is amended by:

a. Revising paragraph (a) by:

i. Removing the first, second, third, fourth, fifth, and last 

sentences; 

ii. In the sixth and seventh sentences, removing the words 

“interest in” and adding, in their place, the words “ownership 

interest with respect to”; 

iii. Redesignating the paragraph as paragraph (a)(1)(iii); and

b. Adding paragraphs (a)(1) introductory text, (a)(1)(i), and 

(a)(1)(ii); and 

c. Revising paragraph (a)(2) to read as follows: 

§ 78.4 Filings.

(a)(1) All original filings made under this part shall be signed 

by the person making the filing or by an attorney or authorized 

representative, in accordance with the following requirements:

(i) Any filings on behalf of owners and operators of a affected 

unit or affected source, TR NOX Annual unit or TR NOX Annual 

source, TR NOX Ozone Season unit or TR NOX Ozone Season source, 

TR SO2 Group 1 unit or TR SO2 Group 1 source, TR SO2 Group 2 unit 

or TR SO2 Group 2 source, or a unit for which a TR opt-in 
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application is submitted and not withdrawn shall be signed by 

the designated representative. Any filing on behalf of persons 

with an ownership interest with respect to allowances, TR NOX

Annual allowances, TR NOX Ozone Season allowances, TR SO2 Group 1 

allowances, or TR SO2 Group 2 allowances in a general account

shall be signed by the authorized account representative. 

(ii) Any filings on behalf of owners and operators of a NOX

Budget unit or NOX Budget source shall be signed by the NOX

authorized account representative. Any filing on behalf of 

persons with an ownership interest with respect to NOX allowances 

in a general account shall be signed by the NOX authorized 

account representative. 

* * * * *

(2) The name, address, e-mail address (if any), telephone 

number, and facsimile number (if any) of the person making the 

filing shall be provided with the filing. 

* * * * * 

§ 78.5 [Amended]

71. Section 78.5 is amended by, in paragraph (a):
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a. Removing the words “public comment prior to” and adding, in 

their place, the words “submission of public comments or 

objections prior to”;

b. Removing the words “public comment period” whenever they 

appear and adding, in their place, the words “period for 

submission of public comments or objections”. 

§ 78.12 [Amended]

72. Section 78.12 is amended by, in paragraph (a), removing the 

words “public comment” and adding, in their place, the words 

“submission of public comments or objections”. 

PART 97-[Amended]

73. The authority citation for Part 97 continues to read as 

follows:

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

7651, et seq.

74. Part 97 is amended by adding subpart AAAAA to read as 

follows:

Subpart AAAAA—TR NOX Annual Trading Program 
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97.401 Purpose.

97.402 Definitions.

97.403 Measurements, abbreviations, and acronyms.

97.404 Applicability.

97.405 Retired unit exemption.

97.406 Standard requirements.

97.407 Computation of time.

97.408 Administrative appeal procedures.

97.409 [Reserved]

97.410 State NOX Annual trading budgets, new unit setasides, Indian country new unit set-asides and variability 

limits.

97.411 Timing requirements for TR NOX Annual allowance 

allocations.

97.412 TR NOX Annual allowance allocations to new units.

97.413 Authorization of designated representative and alternate 

designated representative.
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97.414 Responsibilities of designated representative and 

alternate designated representative.

97.415 Changing designated representative and alternate 

designated representative; changes in owners and operators.

97.416 Certificate of representation.

97.417 Objections concerning designated representative and 

alternate designated representative.

97.418 Delegation by designated representative and alternate 

designated representative.

97.419 [Reserved]

97.420 Establishment of compliance accounts and general 

accounts.

97.421 Recordation of TR NOX Annual allowance allocations.

97.422 Submission of TR NOX Annual allowance transfers.

97.423 Recordation of TR NOX Annual allowance transfers.

97.424 Compliance with TR NOX Annual emissions limitation.

97.425 Compliance with TR NOX Annual assurance provisions.

97.426 Banking.
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97.427 Account error.

97.428 Administrator’s action on submissions.

97.429 [RESERVED]

97.430 General monitoring, recordkeeping, and reporting 

requirements.

97.431 Initial monitoring system certification and 

recertification procedures.

97.432 Monitoring system out-of-control periods.

97.433 Notifications concerning monitoring.

97.434 Recordkeeping and reporting.

97.435 Petitions for alternatives to monitoring, recordkeeping, 

or reporting requirements.

Subpart AAAAA—TR NOX Annual Trading Program 

§ 97.401 Purpose.

This subpart sets forth the general, designated representative, 

allowance, and monitoring provisions for the Transport Rule (TR) 

NOX Annual Trading Program, under section 110 of the Clean Air 

Act and §52.38 of this chapter, as a means of mitigating 

interstate transport of fine particulates and nitrogen oxides.
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§ 97.402 Definitions.

The terms used in this subpart shall have the meanings set forth 

in this section as follows:

Acid Rain Program means a multi-state SO2 and NOX air pollution 

control and emission reduction program established by the 

Administrator under title IV of the Clean Air Act and parts 72 

through 78 of this chapter.

Administrator means the Administrator of the United States 

Environmental Protection Agency or the Director of the Clean Air 

Markets Division (or its successor determined by the 

Administrator) of the United States Environmental Protection 

Agency, the Administrator's duly authorized representative under 

this subpart.

Allocate or allocation means, with regard to TR NOX Annual 

allowances, the determination by the Administrator, State, or 

permitting authority, in accordance with this subpart and any 

SIP revision submitted by the State and approved by the 

Administrator under §52.38(a)(3), (4), or (5) of this chapter,

of the amount of such TR NOX Annual allowances to be initially 

credited, at no cost to the recipient, to:

(1) A TR NOX Annual unit;
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(2) A new unit set-aside;

(3) An Indian country new unit set-aside; or

(4) An entity not listed in paragraphs (1) through (3) of this 

definition;

(5) Provided that, if the Administrator, State, or permitting 

authority initially credits, to a TR NOX Annual unit qualifying 

for an initial credit, a credit in the amount of zero TR NOX

Annual allowances, the TR NOX Annual unit will be treated as 

being allocated an amount (i.e., zero) of TR NOX Annual 

allowances. 

Allowable NOX emission rate means, for a unit, the most stringent 

State or federal NOX emission rate limit (in lb/MWhr or, if in 

lb/mmBtu, converted to lb/MWhr by multiplying it by the unit’s 

heat rate in mmBtu/MWhr) that is applicable to the unit and 

covers the longest averaging period not exceeding one year. 

Allowance Management System means the system by which the 

Administrator records allocations, deductions, and transfers of 

TR NOX Annual allowances under the TR NOX Annual Trading Program. 

Such allowances are allocated, recorded, held, deducted, or 

transferred only as whole allowances. 
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Allowance Management System account means an account in the 

Allowance Management System established by the Administrator for 

purposes of recording the allocation, holding, transfer, or 

deduction of TR NOX Annual allowances.

Allowance transfer deadline means, for a control period in a 

given year, midnight of March 1 (if it is a business day), or 

midnight of the first business day thereafter (if March 1 is not 

a business day), immediately after such control period and is 

the deadline by which a TR NOX Annual allowance transfer must be 

submitted for recordation in a TR NOX Annual source's compliance 

account in order to be available for use in complying with the 

source's TR NOX Annual emissions limitation for such control 

period in accordance with §§97.406 and 97.424.

Alternate designated representative means, for a TR NOX Annual 

source and each TR NOX Annual 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 this 

subpart, to act on behalf of the designated representative in 

matters pertaining to the TR NOX Annual Trading Program. If the 

TR NOX Annual source is also subject to the Acid Rain Program, TR 

NOX Ozone Season Trading Program, TR SO2 Group 1 Trading Program, 

or TR SO2 Group 2 Trading Program, then this natural person shall 
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be the same natural person as the alternate designated 

representative, as defined in the respective program. 

Assurance account means an Allowance Management System account, 

established by the Administrator under §97.425(b)(3) for certain 

owners and operators of a group of one or more TR NOX Annual 

sources and units in a given State (and Indian country within 

the borders of such State), in which are held TR NOX Annual 

allowances available for use for a control period in a given 

year in complying with the TR NOX Annual assurance provisions in 

accordance with §§97.406 and 97.425. 

Authorized account representative means, for a general account, 

the natural person who is authorized, in accordance with this 

subpart, to transfer and otherwise dispose of TR NOX Annual 

allowances held in the general account and, for a TR NOX Annual 

source’s compliance account, the designated representative of 

the source.

Automated data acquisition and handling system or DAHS means the 

component of the continuous emission monitoring system, or other 

emissions monitoring system approved for use under this subpart, 

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 
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produce a continuous record of the measured parameters in the 

measurement units required by this subpart. 

Biomass means—

(1) Any organic material grown for the purpose of being 

converted to energy;

(2) Any organic byproduct of agriculture that can be converted 

into energy; or

(3) Any material that can be converted into energy and is 

nonmerchantable for other purposes, that is segregated from 

other material that is nonmerchantable for other purposes, and 

that is;

(i) A forest-related organic resource, including mill residues, 

precommercial thinnings, slash, brush, or byproduct from 

conversion of trees to merchantable material; or

(ii) A wood material, including pallets, crates, dunnage, 

manufacturing and construction materials (other than pressuretreated, chemically-treated, or painted wood products), and 

landscape or right-of-way tree trimmings.
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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 unit means a unit in which the energy input to 

the unit is first used to produce useful thermal energy, where 

at least some of the reject heat from the useful thermal energy 

application or process is then used for electricity production.

Business day means a day that does not fall on a weekend or a 

federal holiday.

Certifying official means a natural person who is:

(1) For a corporation, a president, secretary, treasurer, or 

vice-president of the corporation in charge of a principal 

business function or any other person who performs similar 

policy- or decision-making functions for the corporation;

(2) For a partnership or sole proprietorship, a general partner 

or the proprietor respectively; or

(3) For a local government entity or State, federal, or other 

public agency, a principal executive officer or ranking elected 

official.

Clean Air Act means the Clean Air Act, 42 U.S.C. 7401, et seq.
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Coal means “coal” as defined in §72.2 of this chapter.

Coal-derived fuel means any fuel (whether in a solid, liquid, or 

gaseous state) produced by the mechanical, thermal, or chemical 

processing of coal.

Cogeneration system means an integrated group, at a source, of 

equipment (including a boiler, or combustion turbine, and a 

steam turbine generator) designed to produce useful thermal 

energy for industrial, commercial, heating, or cooling purposes 

and electricity through the sequential use of energy. 

Cogeneration unit means a stationary, fossil-fuel-fired boiler 

or stationary, fossil-fuel-fired combustion turbine that is a 

topping-cycle unit or a bottoming-cycle unit:

(1) Operating as part of a cogeneration system; and

(2) Producing on an annual average basis—

(i) For a topping-cycle 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 than 42.5 percent of total energy 

input, if useful thermal energy produced is 15 percent or more 
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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 unit, useful power not less than 45 

percent of total energy input;

(3) Provided that the requirements in paragraph (2) of this 

definition shall not apply to a calendar year referenced in 

paragraph (2) of this definition during which the unit did not

operate at all;

(4) Provided that the total energy input under paragraphs 

(2)(i)(B) and (2)(ii) of this definition shall equal the unit's 

total energy input from all fuel, except biomass if the unit is 

a boiler; and

(5) Provided that, if, throughout its operation during the 12-

month period or a calendar year referenced in paragraph (2) of 

this definition, a unit is operated as part of a cogeneration 

system and the cogeneration system meets on a system-wide basis 

the requirement in paragraph (2)(i)(B) or (2)(ii) of this 

definition, the unit shall be deemed to meet such requirement 

during that 12-month period or calendar year. 

Combustion turbine means an enclosed device comprising:
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(1) If the device is simple cycle, 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 device is combined cycle, the equipment described in 

paragraph (1) of this definition and any associated duct burner, 

heat recovery steam generator, and steam turbine.

Commence commercial operation means, with regard to a unit:

(1) To have begun to produce steam, gas, or other heated medium 

used to generate electricity for sale or use, including test 

generation, except as provided in §97.405.

(i) For a unit that is a TR NOX Annual unit under §97.404 on the 

later of January 1, 2005 or the date the unit commences 

commercial operation as defined in the introductory text of 

paragraph (1) of this definition and that subsequently undergoes 

a physical change or is moved to a new location or source, such 

date shall remain the date of commencement of commercial 

operation of the unit, which shall continue to be treated as the 

same unit.

(ii) For a unit that is a TR NOX Annual unit under §97.404 on the 

later of January 1, 2005 or the date the unit commences 
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commercial operation as defined in the introductory text of 

paragraph (1) of this definition and that is subsequently 

replaced by a unit at the same or a different source, such date 

shall remain the replaced unit's date of commencement of 

commercial operation, and the replacement unit shall be treated 

as a separate unit with a separate date for commencement of 

commercial operation as defined in paragraph (1) or (2) of this 

definition as appropriate.

(2) Notwithstanding paragraph (1) of this definition and except 

as provided in §97.405, for a unit that is not a TR NOX Annual 

unit under §97.404 on the later of January 1, 2005 or the date 

the unit commences commercial operation as defined in 

introductory text of paragraph (1) of this definition, the 

unit's date for commencement of commercial operation shall be 

the date on which the unit becomes a TR NOX Annual unit under 

§97.404.

(i) For a unit with a date for commencement of commercial 

operation as defined in the introductory text of paragraph (2) 

of this definition and that subsequently undergoes a physical 

change or is moved to a different location or source, such date 

shall remain the date of commencement of commercial operation of 

the unit, which shall continue to be treated as the same unit.
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(ii) For a unit with a date for commencement of commercial 

operation as defined in the introductory text of paragraph (2) 

of this definition and that is subsequently replaced by a unit 

at the same or a different source, such date shall remain the 

replaced unit's date of commencement of commercial operation, 

and the replacement unit shall be treated as a separate unit 

with a separate date for commencement of commercial operation as 

defined in paragraph (1) or (2) of this definition as 

appropriate.

Common designated representative means, with regard to a control 

period in a given year, a designated representative where, as of 

April 1 immediately after the allowance transfer deadline for 

such control period, the same natural person is authorized under 

§§97.413(a) and 97.415(a) as the designated representative for a 

group of one or more TR NOX Annual sources and units located in a 

State (and Indian country within the borders of such State).

Common designated representative’s assurance level means, with

regard to a specific common designated representative and a 

State (and Indian country within the borders of such State) and 

control period in a given year for which the State assurance 

level is exceeded as described in §97.406(c)(2)(iii), the common 

designated representative’s share of the State NOX Annual trading 
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budget with the variability limit for the State for such control 

period. 

Common designated representative’s share means, with regard to a 

specific common designated representative for a control period 

in a given year:

(1) With regard to a total amount of NOX emissions from all TR 

NOX Annual units in a State (and Indian country within the 

borders of such State) during such control period, the total 

tonnage of NOX emissions during such control period from a group 

of one or more TR NOX Annual units located in such State (and 

such Indian country) and having the common designated 

representative for such control period; 

(2) With regard to a State NOX Annual trading budget for such

control period, the amount (rounded to the nearest allowance) 

equal to the sum of the total amount of TR NOX Annual allowances 

allocated for such control period to a group of one or more TR 

NOX Annual units located in the State (and Indian country within 

the borders of such State) and having the common designated 

representative for such control period and of the total amount 

of TR NOX Annual allowances purchased by an owner or operator of 

such TR NOX Annual units in an auction for such control period 

and submitted by the State or the permitting authority to the 
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Administrator for recordation in the compliance accounts for 

such TR NOX Annual units in accordance with the TR NOX Annual 

allowance auction provisions in a SIP revision approved by the 

Administrator under §52.38(a)(4) or (5) of this chapter,

multiplied by the sum of the State NOX Annual trading budget 

under §97.410(a) and the State’s variability limit under 

§97.410(b) for such control period and divided by such State NOX

Annual trading budget; 

(3) Provided that, in the case of a unit that operates during, 

but has no amount of TR NOX Annual allowances allocated under 

§§97.411 and 97.412 for, such control period, the unit shall be 

treated, solely for purposes of this definition, as being 

allocated an amount (rounded to the nearest allowance) of TR NOX

Annual allowances for such control period equal to the unit’s 

allowable NOX emission rate applicable to such control period, 

multiplied by a capacity factor of 0.85 (if the unit is a boiler

combusting any amount of coal or coal-derived fuel during such 

control period), 0.24 (if the unit is a simple combustion 

turbine during such control period), 0.67 (if the unit is a 

combined cycle turbine during such control period), 0.74 (if the 

unit is an integrated coal gasification combined cycle unit 

during such control period), or 0.36 (for any other unit), 

multiplied by the unit’s maximum hourly load as reported in 
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accordance with this subpart and by 8,760 hours/control period, 

and divided by 2,000 lb/ton. 

Common stack means a single flue through which emissions from 2 

or more units are exhausted.

Compliance account means an Allowance Management System account, 

established by the Administrator for a TR NOX Annual source under 

this subpart, in which any TR NOX Annual allowance allocations to

the TR NOX Annual units at the source are recorded and in which 

are held any TR NOX Annual allowances available for use for a 

control period in a given year in complying with the source's TR 

NOX Annual emissions limitation in accordance with §§97.406 and 

97.424. 

Continuous emission monitoring system or CEMS means the 

equipment required under this subpart to sample, analyze, 

measure, and provide, by means of readings recorded at least 

once every 15 minutes and using an automated data acquisition 

and handling system (DAHS), a permanent record of NOX emissions, 

stack gas volumetric flow rate, stack gas moisture content, and 

O2 or CO2 concentration (as applicable), in a manner consistent 

with part 75 of this chapter and §§97.430 through 97.435. The 

following systems are the principal types of continuous emission 

monitoring systems:
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(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 NOX 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 NOX emission rate (or NOX-diluent) monitoring system, 

consisting of a NOX pollutant concentration monitor, a diluent 

gas (CO2 or O2) monitor, and an automated data acquisition and 

handling system and providing a permanent, continuous record of 

NOX concentration, in parts per million (ppm), diluent gas 

concentration, in percent CO2 or O2, and NOX emission rate, in 

pounds per million British thermal units (lb/mmBtu);

(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 H2O;

(5) A CO2 monitoring system, consisting of a CO2 pollutant 

concentration monitor (or an O2 monitor plus suitable 

mathematical equations from which the CO2 concentration is 

derived) and an automated data acquisition and handling system 
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and providing a permanent, continuous record of CO2 emissions, in 

percent CO2; and

(6) An O2 monitoring system, consisting of an O2 concentration 

monitor and an automated data acquisition and handling system 

and providing a permanent, continuous record of O2, in percent 

O2.

Control period means the period starting January 1 of a calendar 

year, except as provided in §97.406(c)(3), and ending on 

December 31 of the same year, inclusive.

Designated representative means, for a TR NOX Annual source and 

each TR NOX Annual 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 this subpart, to 

represent and legally bind each owner and operator in matters 

pertaining to the TR NOX Annual Trading Program. If the TR NOX

Annual source is also subject to the Acid Rain Program, TR NOX 

Ozone Season Trading Program, TR SO2 Group 1 Trading Program, or 

TR SO2 Group 2 Trading Program, then this natural person shall be 

the same natural person as the designated representative, as 

defined in the respective program. 

Emissions means air pollutants exhausted from a unit or source 

into the atmosphere, as measured, recorded, and reported to the 
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Administrator by the designated representative, and as modified 

by the Administrator:

(1) In accordance with this subpart; and

(2) With regard to a period before the unit or source is 

required to measure, record, and report such air pollutants in 

accordance with this subpart, in accordance with part 75 of this 

chapter.

Excess emissions means any ton of emissions from the TR NOX

Annual units at a TR NOX Annual source during a control period in 

a given year that exceeds the TR NOX Annual emissions limitation 

for the source for such control period.

Fossil fuel means—

(1) Natural gas, petroleum, coal, or any form of solid, liquid, 

or gaseous fuel derived from such material; or

(2) For purposes of applying the limitation on “average annual 

fuel consumption of fossil fuel” in §§97.404(b)(2)(i)(B) and

(ii), natural gas, petroleum, coal, or any form of solid, 

liquid, or gaseous fuel derived from such material for the 

purpose of creating useful heat.
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Fossil-fuel-fired means, with regard to a unit, combusting any 

amount of fossil fuel in 2005 or any calendar year thereafter.

General account means an Allowance Management System account, 

established under this subpart, that is not a compliance account

or an assurance account.

Generator means a device that produces electricity.

Gross electrical output means, for a unit, electricity made 

available for use, including any such electricity used in the 

power production process (which process includes, but is not 

limited to, any on-site processing or treatment of fuel 

combusted at the unit and any on-site emission controls).

Heat input means, for a unit for a specified period of time, the 

product (in mmBtu/time) of the gross calorific value of the fuel 

(in mmBtu/lb) fed into the unit multiplied by the fuel feed rate 

(in lb of fuel/time), as measured, recorded, and reported to the 

Administrator by the designated representative and as modified 

by the Administrator in accordance with this subpart and 

excluding the heat derived from preheated combustion air, 

recirculated flue gases, or exhaust.

Heat input rate means, for a unit, the amount of heat input (in 

mmBtu) divided by unit operating time (in hr) or, for a unit and 
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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.

Heat rate means, for a unit, the unit’s maximum design heat 

input (in Btu/hr), divided by the product of 1,000,000 Btu/mmBtu 

and the unit’s maximum hourly load.

Indian country means “Indian country” as defined in 18 U.S.C. 

1151.

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 
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portion of the nameplate capacity and associated energy 

generated by the unit at the end of the period.

Maximum design heat input means, for a unit, the maximum amount 

of fuel per hour (in Btu/hr) that the unit is capable of 

combusting on a steady state basis as of the initial 

installation of the unit as specified by the manufacturer of the 

unit.

Monitoring system means any monitoring system that meets the 

requirements of this subpart, including a continuous emission 

monitoring system, an alternative monitoring system, or an 

excepted monitoring system under part 75 of this chapter.

Nameplate capacity means, starting from the initial installation 

of a generator, the maximum electrical generating output (in 

MWe, rounded to the nearest tenth) that the generator is capable 

of producing on a steady state basis and during continuous 

operation (when not restricted by seasonal or other deratings) 

as of such installation as specified by the manufacturer of the 

generator or, starting from the completion of any subsequent 

physical change in the generator resulting in an increase in the 

maximum electrical generating output that the generator is 

capable of producing on a steady state basis and during 

continuous operation (when not restricted by seasonal or other 
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deratings), such increased maximum amount (in MWe, rounded to 

the nearest tenth) as of such completion as specified by the 

person conducting the physical change.

Natural gas means “natural gas” as defined in §72.2 of this 

chapter.

Newly affected TR NOX Annual unit means a unit that was not a TR 

NOX Annual unit when it began operating but that thereafter 

becomes a TR NOX Annual unit. 

Operate or operation means, with regard to a unit, to combust 

fuel.

Operator means, for a TR NOX Annual source or a TR NOX Annual 

unit at a source respectively, any person who operates, 

controls, or supervises a TR NOX Annual unit at the source or the

TR NOX Annual unit and shall include, but not be limited to, any 

holding company, utility system, or plant manager of such source 

or unit.

Owner means, for a TR NOX Annual source or a TR NOX Annual unit 

at a source respectively, any of the following persons:

(1) Any holder of any portion of the legal or equitable title in 

a TR NOX Annual unit at the source or the TR NOX Annual unit;
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(2) Any holder of a leasehold interest in a TR NOX Annual unit at 

the source or the TR NOX Annual unit, 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 TR NOX Annual unit; and(3) Any purchaser of power from 

a TR NOX Annual unit at the source or the TR NOX Annual unit 

under a life-of-the-unit, firm power contractual arrangement. 

Permanently retired means, with regard to a unit, a unit that is 

unavailable for service and that the unit’s owners and operators 

do not expect to return to service in the future. 

Permitting authority means “permitting authority” as defined in 

§§70.2 and 71.2 of this chapter.

Potential electrical output capacity means, for a unit, 33 

percent of the 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 

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 
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log, or by a notation made on the document, information, or 

correspondence, by the Administrator in the regular course of 

business.

Recordation, record, or recorded means, with regard to TR NOX

Annual allowances, the moving of TR NOX Annual allowances by the 

Administrator into, out of, or between Allowance Management 

System accounts, for purposes of allocation, auction, transfer, 

or deduction.

Reference method means any direct test method of sampling and 

analyzing for an air pollutant as specified in §75.22 of this 

chapter.

Replacement, replace, or replaced means, with regard to a unit, 

the demolishing of a unit, or the permanent retirement and 

permanent disabling of a unit, and the construction of another 

unit (the replacement unit) to be used instead of the demolished 

or retired unit (the replaced unit).

Sequential use of energy means:

(1) The use of reject heat from electricity production in a 

useful thermal energy application or process; or

(2) The use of reject heat from useful thermal energy 

application or process in electricity production.
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Serial number means, for a TR NOX Annual allowance, the unique 

identification number assigned to each TR NOX Annual allowance by 

the Administrator.

Solid waste incineration unit means a stationary, fossil-fuelfired boiler or stationary, fossil-fuel-fired combustion turbine 

that is a “solid waste incineration unit” as defined in section 

129(g)(1) of the Clean Air Act.

Source means all buildings, structures, or installations located 

in one or more contiguous or adjacent properties under common 

control of the same person or persons. This definition does not 

change or otherwise affect the definition of “major source”, 

“stationary source”, or “source” as set forth and implemented in 

a title V operating permit program or any other program under 

the Clean Air Act. 

State means one of the States that is subject to the TR NOX

Annual Trading Program pursuant to §52.38(a) 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
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(3) By other means of dispatch or transmission and delivery;

(4) Provided that compliance with any “submission” or “service” 

deadline shall be determined by the date of dispatch, 

transmission, or mailing and not the date of receipt.

Topping-cycle unit means a unit in which the energy input to the 

unit is first used to produce useful power, including 

electricity, where at least some of the reject heat from the 

electricity production is then used to provide useful thermal 

energy.

Total energy input means, for a unit, total energy of all forms 

supplied to the unit, excluding energy produced by the unit. 

Each form of energy supplied shall be measured by the lower 

heating value of that form of energy calculated as follows:

LHV = HHV − 10.55(W + 9H)

Where:

LHV = lower heating value of the form of energy in Btu/lb,

HHV = higher heating value of the form of energy in Btu/lb,

W = weight % of moisture in the form of energy, and

H = weight % of hydrogen in the form of energy.
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Total energy output means, for a unit, the sum of useful power 

and useful thermal energy produced by the unit.

TR NOX Annual allowance means a limited authorization issued and 

allocated or auctioned by the Administrator under this subpart, 

or by a State or permitting authority under a SIP revision 

approved by the Administrator under §52.38(a)(3), (4), or (5) of 

this chapter, to emit one ton of NOX during a control period of 

the specified calendar year for which the authorization is 

allocated or auctioned or of any calendar year thereafter under 

the TR NOX Annual Trading Program. 

TR NOX Annual allowance deduction or deduct TR NOX Annual 

allowances means the permanent withdrawal of TR NOX Annual 

allowances by the Administrator from a compliance account (e.g., 

in order to account for compliance with the TR NOX Annual 

emissions limitation) or from an assurance account (e.g., in 

order to account for compliance with the assurance provisions

under §§97.406 and 97.425). 

TR NOX Annual allowances held or hold TR NOX Annual allowances

means the TR NOX Annual allowances treated as included in an 

Allowance Management System account as of a specified point in 

time because at that time they:
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(1) Have been recorded by the Administrator in the account or 

transferred into the account by a correctly submitted, but not 

yet recorded, TR NOX Annual allowance transfer in accordance with 

this subpart; and

(2) Have not been transferred out of the account by a correctly 

submitted, but not yet recorded, TR NOX Annual allowance transfer 

in accordance with this subpart.

TR NOX Annual emissions limitation means, for a TR NOX Annual 

source, the tonnage of NOX emissions authorized in a control 

period in a given year by the TR NOX Annual allowances available 

for deduction for the source under §97.424(a) for such control 

period.

TR NOX Annual source means a source that includes one or more TR 

NOX Annual units.

TR NOX Annual Trading Program means a multi-state NOX air 

pollution control and emission reduction program established in 

accordance with this subpart and §52.38(a) of this chapter

(including such a program that is revised in a SIP revision 

approved by the Administrator under §52.38(a)(3) or (4) of this 

chapter or that is established in a SIP revision approved by the 

Administrator under §52.38(a)(5) of this chapter), as a means of 

mitigating interstate transport of fine particulates and NOX.
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TR NOX Annual unit means a unit that is subject to the TR NOX

Annual Trading Program.

TR NOX Ozone Season Trading Program means a multi-state NOX air 

pollution control and emission reduction program established in 

accordance with subpart BBBBB of this part and §52.38(b) of this 

chapter (including such a program that is revised in a SIP 

revision approved by the Administrator under §52.38(b)(3) or (4) 

of this chapter or that is established in a SIP revision 

approved by the Administrator under §52.38(b)(5) of this 

chapter), as a means of mitigating interstate transport of ozone 

and NOX.

TR SO2 Group 1 Trading Program means a multi-state SO2 air 

pollution control and emission reduction program established in 

accordance with subpart CCCCC of this part and §52.39(a), (b), 

(d) through (f), (j), and (k) of this chapter (including such a 

program that is revised in a SIP revision approved by the 

Administrator under §52.39(d) or (e) of this chapter or that is 

established in a SIP revision approved by the Administrator 

under §52.39(f) of this chapter), as a means of mitigating 

interstate transport of fine particulates and SO2.

TR SO2 Group 2 Trading Program means a multi-state SO2 air 

pollution control and emission reduction program established in 
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accordance with subpart DDDDD of this part and 52.39(a), (c), 

and (g) through (k) of this chapter (including such a program 

that is revised in a SIP revision approved by the Administrator 

under §52.39(g) or (h) of this chapter or that is established in

a SIP revision approved by the Administrator under §52.39(i) of 

this chapter), as a means of mitigating interstate transport of 

fine particulates and SO2.

Unit means a stationary, fossil-fuel-fired boiler, stationary, 

fossil-fuel-fired combustion turbine, or other stationary, 

fossil-fuel-fired combustion device. A unit that undergoes a 

physical change or is moved to a different location or source 

shall continue to be treated as the same unit. A unit (the 

replaced unit) that is replaced by another unit (the replacement 

unit) at the same or a different source shall continue to be 

treated as the same unit, and the replacement unit shall be 

treated as a separate unit.

Unit operating day means, with regard to a unit, a calendar day 

in which the unit combusts any fuel.

Unit operating hour or hour of unit operation means, with regard 

to a unit, an hour in which the unit combusts any fuel.

Useful power means, with regard to a unit, electricity or 

mechanical energy that the unit makes available for use, 
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excluding any such energy used in the power production process 

(which process includes, but is not limited to, any on-site 

processing or treatment of fuel combusted at the unit and any 

on-site emission controls).

Useful thermal energy means thermal energy that is:

(1) Made available to an industrial or commercial process (not a 

power production process), excluding any heat contained in 

condensate return or makeup water;

(2) Used in a heating application (e.g., space heating or 

domestic hot water heating); or

(3) Used in a space cooling application (i.e., in 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.

§ 97.403 Measurements, abbreviations, and acronyms.

Measurements, abbreviations, and acronyms used in this subpart 

are defined as follows:

Btu—British thermal unit
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CO2—carbon dioxide

H2O—water

hr—hour

kW—kilowatt electrical

kWh—kilowatt hour

lb—pound

mmBtu—million Btu

MWe—megawatt electrical

MWh—megawatt hour

NOX—nitrogen oxides

O2—oxygen

ppm—parts per million

scfh—standard cubic feet per hour

SO2—sulfur dioxide

yr—year

§ 97.404 Applicability.
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(a) Except as provided in paragraph (b) of this section:

(1) The following units in a State (and Indian country within 

the borders of such State) shall be TR NOX Annual units, and any 

source that includes one or more such units shall be a TR NOX

Annual source, subject to the requirements of this subpart: any 

stationary, fossil-fuel-fired boiler or stationary, fossil-fuelfired combustion turbine serving at any time, on or after 

January 1, 2005, a generator with nameplate capacity of more 

than 25 MWe producing electricity for sale.

(2) If a stationary boiler or stationary combustion turbine 

that, under paragraph (a)(1) of this section, is not a TR NOX

Annual unit begins to combust fossil fuel or to serve a 

generator with nameplate capacity of more than 25 MWe producing 

electricity for sale, the unit shall become a TR NOX Annual unit 

as provided in paragraph (a)(1) of this section on the first 

date on which it both combusts fossil fuel and serves such 

generator.

(b) Any unit in a State (and Indian country within the borders 

of such State) that otherwise is a TR NOX Annual unit under 

paragraph (a) of this section and that meets the requirements 

set forth in paragraph (b)(1)(i) or (2)(i) of this section shall 

not be a TR NOX Annual unit:
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(1)(i) Any unit:

(A) Qualifying as a cogeneration unit throughout the later of 

2005 or the 12-month period starting on the date the unit first 

produces electricity and continuing to qualify as a cogeneration 

unit throughout each calendar year ending after the later of 

2005 or such 12-month period; and

(B) Not supplying in 2005 or any calendar year thereafter more 

than one-third of the unit's potential electric output capacity 

or 219,000 MWh, whichever is greater, to any utility power 

distribution system for sale.

(ii) If, after qualifying under paragraph (b)(1)(i) of this 

section as not being a TR NOX Annual unit, a unit subsequently no 

longer meets all the requirements of paragraph (b)(1)(i) of this 

section, the unit shall become a TR NOX Annual unit starting on

the earlier of January 1 after the first calendar year during 

which the unit first no longer qualifies as a cogeneration unit 

or January 1 after the first calendar year during which the unit 

no longer meets the requirements of paragraph (b)(1)(i)(B) of 

this section. The unit shall thereafter continue to be a TR NOX

Annual unit.

(2)(i) Any unit:
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(A) Qualifying as a solid waste incineration unit throughout the 

later of 2005 or the 12-month period starting on the date the 

unit first produces electricity and continuing to qualify as a 

solid waste incineration unit throughout each calendar year 

ending after the later of 2005 or such 12-month period; and

(B) With an average annual fuel consumption of fossil fuel for 

the first 3 consecutive calendar years of operation starting no 

earlier than 2005 of less than 20 percent (on a Btu basis) and 

an average annual fuel consumption of fossil fuel for any 3 

consecutive calendar years thereafter of less than 20 percent 

(on a Btu basis).

(ii) If, after qualifying under paragraph (b)(2)(i) of this 

section as not being a TR NOX Annual unit, a unit subsequently no 

longer meets all the requirements of paragraph (b)(1)(i) of this 

section, the unit shall become a TR NOX Annual unit starting on 

the earlier of January 1 after the first calendar year during 

which the unit first no longer qualifies as a solid waste 

incineration unit or January 1 after the first 3 consecutive 

calendar years after 2005 for which the unit has an average 

annual fuel consumption of fossil fuel of 20 percent or more. 

The unit shall thereafter continue to be a TR NOX Annual unit.
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(c) A certifying official of an owner or operator of any unit or 

other equipment may submit a petition (including any supporting 

documents) to the Administrator at any time for a determination 

concerning the applicability, under paragraphs (a) and (b) of 

this section or a SIP revision approved under §52.38(a)(4) or 

(5) of this chapter, of the TR NOX Annual Trading Program to the 

unit or other equipment.

(1) Petition content. The petition shall be in writing and 

include the identification of the unit or other equipment and 

the relevant facts about the unit or other equipment. The 

petition and any other documents provided to the Administrator 

in connection with the petition shall include the following 

certification statement, signed by the certifying official: “I 

am authorized to make this submission on behalf of the owners 

and operators of the unit or other equipment 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 
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information or omitting required statements and information, 

including the possibility of fine or imprisonment.”

(2) Response. The Administrator will issue a written response to 

the petition and may request supplemental information determined 

by the Administrator to be relevant to such petition. The 

Administrator's determination concerning the applicability, 

under paragraphs (a) and (b) of this section, of the TR NOX

Annual Trading Program to the unit or other equipment shall be 

binding on any State or permitting authority unless the 

Administrator determines that the petition or other documents or 

information provided in connection with the petition contained 

significant, relevant errors or omissions.

§ 97.405 Retired unit exemption.

(a)(1) Any TR NOX Annual unit that is permanently retired shall 

be exempt from §97.406(b) and (c)(1), §97.424, and §§97.430 

through 97.435. 

(2) The exemption under paragraph (a)(1) of this section shall 

become effective the day on which the TR NOX Annual unit is 

permanently retired. Within 30 days of the unit's permanent 

retirement, the designated representative shall submit a 

statement to the Administrator. The statement shall state, in a 

format prescribed by the Administrator, that the unit was 
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permanently retired on a specified date and will comply with the 

requirements of paragraph (b) of this section.

(b) Special provisions. (1) A unit exempt under paragraph (a) of 

this section shall not emit any NOX, 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 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 

designated representative of a unit exempt under paragraph (a) 

of this section shall comply with the requirements of the TR NOX

Annual Trading Program concerning all periods for which the 

exemption is not in effect, even if such requirements arise, or 

must be complied with, after the exemption takes effect.

(4) A unit exempt under paragraph (a) of this section shall lose 

its exemption on the first date on which the unit resumes 

operation. Such unit shall be treated, for purposes of applying 
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allocation, monitoring, reporting, and recordkeeping 

requirements under this subpart, as a unit that commences 

commercial operation on the first date on which the unit resumes 

operation.

§ 97.406 Standard requirements.

(a) Designated representative requirements. The owners and 

operators shall comply with the requirement to have a designated 

representative, and may have an alternate designated 

representative, in accordance with §§97.413 through 97.418.

(b) Emissions monitoring, reporting, and recordkeeping 

requirements. (1) The owners and operators, and the designated 

representative, of each TR NOX Annual source and each TR NOX

Annual unit at the source shall comply with the monitoring, 

reporting, and recordkeeping requirements of §§97.430 through 

97.435.

(2) The emissions data determined in accordance with §§97.430 

through 97.435 shall be used to calculate allocations of TR NOX

Annual allowances under §§97.411(a)(2) and (b) and 97.412 and to 

determine compliance with the TR NOX Annual emissions limitation 

and assurance provisions under paragraph (c) of this section, 

provided that, for each monitoring location from which mass 

emissions are reported, the mass emissions amount used in 
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calculating such allocations and determining such compliance 

shall be the mass emissions amount for the monitoring location 

determined in accordance with §§97.430 through 97.435 and 

rounded to the nearest ton, with any fraction of a ton less than 

0.50 being deemed to be zero.

(c) NOX emissions requirements. (1) TR NOX Annual emissions 

limitation. (i) As of the allowance transfer deadline for a 

control period in a given year, the owners and operators of each 

TR NOX Annual source and each TR NOX Annual unit at the source 

shall hold, in the source's compliance account, TR NOX Annual 

allowances available for deduction for such control period under 

§97.424(a) in an amount not less than the tons of total NOX

emissions for such control period from all TR NOX Annual units at 

the source.

(ii) If total NOX emissions during a control period in a given 

year from the TR NOX Annual units at a TR NOX Annual source are 

in excess of the TR NOX Annual emissions limitation set forth in 

paragraph (c)(1)(i) of this section, then:

(A) The owners and operators of the source and each TR NOX

Annual unit at the source shall hold the TR NOX Annual allowances 

required for deduction under §97.424(d); and
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(B) The owners and operators of the source and each TR NOX Annual 

unit at the source shall pay any fine, penalty, or assessment or 

comply with any other remedy imposed, for the same violations, 

under the Clean Air Act, and each ton of such excess emissions 

and each day of such control period shall constitute a separate 

violation of this subpart and the Clean Air Act.

(2) TR NOX Annual assurance provisions. (i) If total NOX

emissions during a control period in a given year from all TR NOX

Annual units at TR NOX Annual sources in a State (and Indian 

country within the borders of such State) exceed the State 

assurance level, then the owners and operators of such sources 

and units in each group of one or more sources and units having 

a common designated representative for such control period, 

where the common designated representative’s share of such NOX

emissions during such control period exceeds the common 

designated representative’s assurance level for the State and 

such control period, shall hold (in the assurance account 

established for the owners and operators of such group) TR NOX

Annual allowances available for deduction for such control 

period under §97.425(a) in an amount equal to two times the 

product (rounded to the nearest whole number), as determined by 

the Administrator in accordance with §97.425(b), of multiplying—
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(A) The quotient of the amount by which the common designated 

representative’s share of such NOX emissions exceeds the common 

designated representative’s assurance level divided by the sum 

of the amounts, determined for all common designated 

representatives for such sources and units in the State (and 

Indian country within the borders of such State) for such 

control period, by which each common designated representative’s 

share of such NOX emissions exceeds the respective common 

designated representative’s assurance level; and

(B) The amount by which total NOX emissions from all TR NOX

Annual units at TR NOX Annual sources in the State (and Indian 

country within the borders of such State) for such control 

period exceed the State assurance level. 

(ii) The owners and operators shall hold the TR NOX Annual 

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

as of midnight of November 1 (if it is a business day), or 

midnight of the first business day thereafter (if November 1 is 

not a business day), immediately after such control period. 

(iii) Total NOX emissions from all TR NOX Annual units at TR NOX

Annual sources in a State (and Indian country within the borders 

of such State) during a control period in a given year exceed 

the State assurance level if such total NOX emissions exceed the 
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sum, for such control period, of the State NOX Annual trading 

budget under §97.410(a) and the State’s variability limit under 

§97.410(b).

(iv) It shall not be a violation of this subpart or of the Clean 

Air Act if total NOX emissions from all TR NOX Annual units at TR 

NOX Annual sources in a State (and Indian country within the 

borders of such State) during a control period exceed the State 

assurance level or if a common designated representative’s share 

of total NOX emissions from the TR NOX Annual units at TR NOX

Annual sources in a State (and Indian country within the borders 

of such State) during a control period exceeds the common 

designated representative’s assurance level. 

(v) To the extent the owners and operators fail to hold TR NOX

Annual allowances for a control period in a given year in 

accordance with paragraphs (c)(2)(i) through (iii) of this 

section, 

(A) The owners and operators shall pay any fine, penalty, or 

assessment or comply with any other remedy imposed under the

Clean Air Act; and

(B) Each TR NOX Annual allowance that the owners and operators 

fail to hold for such control period in accordance with 

paragraphs (c)(2)(i) through (iii) of this section and each day 
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of such control period shall constitute a separate violation of 

this subpart and the Clean Air Act.

(3) Compliance periods. A TR NOX Annual unit shall be subject to 

the requirements under paragraphs (c)(1) and (c)(2) of this 

section for the control period starting on the later of January 

1, 2012 or the deadline for meeting the unit's monitor 

certification requirements under §97.430(b) and for each control 

period thereafter.

(4) Vintage of allowances held for compliance. (i) A TR NOX

Annual allowance held for compliance with the requirements under 

paragraph (c)(1)(i) of this section for a control period in a 

given year must be a TR NOX Annual allowance that was allocated

for such control period or a control period in a prior year.

(ii) A TR NOX Annual allowance held for compliance with the 

requirements under paragraphs (c)(1)(ii)(A) and (2)(i) through 

(iii) of this section for a control period in a given year must 

be a TR NOX Annual allowance that was allocated for a control 

period in a prior year or the control period in the given year 

or in the immediately following year.

(5) Allowance Management System requirements. Each TR NOX Annual 

allowance shall be held in, deducted from, or transferred into, 
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out of, or between Allowance Management System accounts in 

accordance with this subpart.

(6) Limited authorization. A TR NOX Annual allowance is a limited 

authorization to emit one ton of NOX during the control period in 

one year. Such authorization is limited in its use and duration 

as follows:

(i) Such authorization shall only be used in accordance with the 

TR NOX Annual Trading Program; and

(ii) Notwithstanding any other provision of this subpart, the 

Administrator has the authority to terminate or limit the use 

and duration of such authorization to the extent the 

Administrator determines is necessary or appropriate to 

implement any provision of the Clean Air Act. 

(7) Property right. A TR NOX Annual allowance does not constitute 

a property right.

(d) Title V permit requirements. (1) No title V permit revision 

shall be required for any allocation, holding, deduction, or 

transfer of TR NOX Annual allowances in accordance with this 

subpart.

(2) A description of whether a unit is required to monitor and 

report NOX emissions using a continuous emission monitoring 
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system (under subpart H of part 75 of this chapter), an excepted 

monitoring system (under appendices D and E to part 75 of this 

chapter), a low mass emissions excepted monitoring methodology 

(under §75.19 of this chapter), or an alternative monitoring 

system (under subpart E of part 75 of this chapter) in 

accordance with §§97.430 through 97.435 may be added to, or 

changed in, a title V permit using minor permit modification 

procedures in accordance with §§70.7(e)(2) and 71.7(e)(1) of 

this chapter, provided that the requirements applicable to the 

described monitoring and reporting (as added or changed, 

respectively) are already incorporated in such permit. This 

paragraph explicitly provides that the addition of, or change 

to, a unit’s description as described in the prior sentence is 

eligible for minor permit modification procedures in accordance 

with §§70.7(e)(2)(i)(B) and 71.7(e)(1)(i)(B) of this chapter. 

(e) Additional recordkeeping and reporting requirements. (1) 

Unless otherwise provided, the owners and operators of each TR 

NOX Annual source and each TR NOX Annual unit at the source shall 

keep on site at the source each of the following documents (in 

hardcopy or electronic format) 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 

Administrator.
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(i) The certificate of representation under §97.416 for the 

designated representative for the source and each TR NOX Annual 

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 certificate of 

representation and documents are superseded because of the 

submission of a new certificate of representation under §97.416 

changing the designated representative.

(ii) All emissions monitoring information, in accordance with 

this subpart.

(iii) Copies of all reports, compliance certifications, and 

other submissions and all records made or required under, or to 

demonstrate compliance with the requirements of, the TR NOX

Annual Trading Program.

(2) The designated representative of a TR NOX Annual source and 

each TR NOX Annual unit at the source shall make all submissions 

required under the TR NOX Annual Trading Program, except as 

provided in §97.418. This requirement does not change, create 

an exemption from, or or otherwise affect the responsible 

official submission requirements under a title V operating 

permit program in parts 70 and 71 of this chapter. 
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(f) Liability. (1) Any provision of the TR NOX Annual Trading 

Program that applies to a TR NOX Annual source or the designated 

representative of a TR NOX Annual source shall also apply to the 

owners and operators of such source and of the TR NOX Annual 

units at the source.

(2) Any provision of the TR NOX Annual Trading Program that 

applies to a TR NOX Annual unit or the designated representative 

of a TR NOX Annual unit shall also apply to the owners and 

operators of such unit.

(g) Effect on other authorities. No provision of the TR NOX

Annual Trading Program or exemption under §97.405 shall be 

construed as exempting or excluding the owners and operators, 

and the designated representative, of a TR NOX Annual source or 

TR NOX Annual unit from compliance with any other provision of 

the applicable, approved State implementation plan, a federally 

enforceable permit, or the Clean Air Act.

§ 97.407 Computation of time.

(a) Unless otherwise stated, any time period scheduled, under 

the TR NOX Annual Trading Program, to begin on the occurrence of 

an act or event shall begin on the day the act or event occurs. 
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(b) Unless otherwise stated, any time period scheduled, under 

the TR NOX Annual Trading Program, to begin before the occurrence 

of an act or event shall be computed so that the period ends the 

day before the act or event occurs.

(c) Unless otherwise stated, if the final day of any time 

period, under the TR NOX Annual Trading Program, is not a 

business day, the time period shall be extended to the next 

business day.

§ 97.408 Administrative appeal procedures.

The administrative appeal procedures for decisions of the 

Administrator under the TR NOX Annual Trading Program are set 

forth in part 78 of this chapter.

§ 97.409 [Reserved]

§ 97.410 State NOX Annual trading budgets, new unit set-asides, 

Indian country new unit set-aside, and variability limits.

(a) The State NOX Annual trading budgets, new unit set-asides, 

and Indian country new unit set-asides for allocations of TR NOX

Annual allowances for the control periods in 2012 and thereafter 

are as follows:

State NOX Annual trading New unit set- Indian country 
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budget (tons)*

for 2012 and 2013

aside (tons)

for 2012 and 

2013

new unit setaside (tons)

for 2012 and 2013

Alabama 72,691 1,454 ---

Georgia 62,010 1,240 ---

Illinois 47,872 3,830 ---

Indiana 109,726 3,292 ---

Iowa 38,335 729 38

Kansas 30,714 583 31

Kentucky 85,086 3,403 ---

Maryland 16,633 333 ---

Michigan 60,193 1,144 60

Minnesota 29,572 561 30

Missouri 52,374 1,571 ---

Nebraska 26,440 1,825 26

New Jersey 7,266 145 ---

New York 17,543 508 18

North 

Carolina 50,587 2,984 51

Ohio 92,703 1,854 ---

Pennsylvania 119,986 2,400 ---

South 

Carolina 32,498 617 33

Tennessee 35,703 714 ---

Texas 133,595 3,874 134

Virginia 33,242 1,662 ---

West 

Virginia 59,472 2,974 ---

Wisconsin 31,628 1,866 32

State

NOX Annual trading 

budget (tons)*

for 2014 and 

thereafter

New unit setaside (tons)

for 2014 and 

thereafter

Indian country 

new unit setaside (tons)

for 2014 and 

thereafter

Alabama 71,962 1,439 ---
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Georgia 40,540 811 ---

Illinois 47,872 3,830 ---

Indiana 108,424 3,253 ---

Iowa 37,498 712 38

Kansas 25,560 485 26

Kentucky 77,238 3,090 ---

Maryland 16,574 331 ---

Michigan 57,812 1,098 58

Minnesota 29,572 561 30

Missouri 48,717 1,462 ---

Nebraska 26,440 1,825 26

New Jersey 7,266 145 ---

New York 17,543 508 18

North 

Carolina 41,553 2,451 42

Ohio 87,493 1,750 ---

Pennsylvania 119,194 2,384 ---

South 

Carolina 32,498 617 33

Tennessee 19,337 387 ---

Texas 133,595 3,874 134

Virginia 33,242 1,662 ---

West 

Virginia 54,582 2,729 ---

Wisconsin 30,398 1,794 30

* Each trading budget includes the new unit set-aside and, where 

applicable, the Indian country new unit set-aside and does not 

include the variability limit.

(b) The States’ variability limits for the State NOX Annual 

trading budgets for the control periods in 2012 and thereafter 

are as follows:

State

Variability limits

for 2012 and 2013 Variability limits
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for 2014 and thereafter

Alabama 13,084 12,953

Georgia 11,162 7,297

Illinois 8,617 8,617

Indiana 19,751 19,516

Iowa 6,900 6,750

Kansas 5,529 4,601

Kentucky 15,315 13,903

Maryland 2,994 2,983

Michigan 10,835 10,406

Minnesota 5,323 5,323

Missouri 9,427 8,769

Nebraska 4,759 4,759

New Jersey 1,308 1,308

New York 3,158 3,158

North 

Carolina 9,106 7,480

Ohio 16,687 15,749

Pennsylvania 21,597 21,455

South 

Carolina 5,850 5,850

Tennessee 6,427 3,481

Texas 24,047 24,047

Virginia 5,984 5,984

West 

Virginia 10,705 9,825

Wisconsin 5,693 5,472

§ 97.411 Timing requirements for TR NOX Annual allowance 

allocations.

(a) Existing units. (1) TR NOX Annual allowances are allocated, 

for the control periods in 2012 and each year thereafter, as 

provided in a notice of data availability issued by the 

Administrator. Providing an allocation to a unit in such notice 
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does not constitute a determination that the unit is a TR NOX

Annual unit, and not providing an allocation to a unit in such 

notice does not constitute a determination that the unit is not 

a TR NOX Annual unit. 

(2) Notwithstanding paragraph (a)(1) of this section, if a unit 

provided an allocation in the notice of data availability issued 

under paragraph (a)(1) of this section does not operate, 

starting after 2011, during the control period in two

consecutive years, such unit will not be allocated the TR NOX

Annual allowances provided in such notice for the unit for the 

control periods in the fifth year after the first such year and 

in each year after that fifth year. All TR NOX Annual allowances 

that would otherwise have been allocated to such unit will be 

allocated to the new unit set-aside for the State where such 

unit is located and for the respective years involved. If such 

unit resumes operation, the Administrator will allocate TR NOX

Annual allowances to the unit in accordance with paragraph (b) 

of this section. 

(b) New units. (1) New unit set-asides. (i) By June 1, 2012 

and June 1 of each year thereafter, the Administrator will 

calculate the TR NOX Annual allowance allocation to each TR NOX

Annual unit in a State, in accordance with §97.412(a)(2) through 

(7) and (12), for the control period in the year of the 
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applicable calculation deadline under this paragraph and will 

promulgate a notice of data availability of the results of the 

calculations.

(ii) For each notice of data availability required in paragraph 

(b)(1)(i) of this section, the Administrator will provide an 

opportunity for submission of objections to the calculations 

referenced in such notice. 

(A) Objections shall be submitted by the deadline specified in 

each notice of data availability required in paragraph (b)(1)(i)

of this section and shall be limited to addressing whether the 

calculations (including the identification of the TR NOX Annual 

units) are in accordance with §97.412(a)(2) through (7) and (12)

and §§97.406(b)(2) and 97.430 through 97.435. 

(B) The Administrator will adjust the calculations to the extent 

necessary to ensure that they are in accordance with the 

provisions referenced in paragraph (b)(1)(ii)(A) of this 

section. By August 1 immediately after the promulgation of each 

notice of data availability required in paragraph (b)(1)(i) of 

this section, the Administrator will promulgate a notice of data 

availability of any adjustments that the Administrator 

determines to be necessary with regard to allocations under 

§97.412(a)(2) through (7) and (12) and the reasons for accepting 
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or rejecting any objections submitted in accordance with 

paragraph (b)(1)(ii)(A) of this section. 

(iii) If the new unit set-aside for such control period contains 

any TR NOX Annual allowances that have not been allocated in the 

applicable notice of data availability required in paragraph 

(b)(1)(ii) of this section, the Administrator will promulgate, 

by December 15 immediately after such notice, a notice of data 

availability that identifies any TR NOX Annual units that 

commenced commercial operation during the period starting 

January 1 of the year before the year of such control period and 

ending November 30 of year of such control period.

(iv) For each notice of data availability required in paragraph 

(b)(1)(iii) of this section, the Administrator will provide an 

opportunity for submission of objections to the identification 

of TR NOX annual units in such notice. 

(A) Objections shall be submitted by the deadline specified in 

each notice of data availability required in paragraph 

(b)(1)(iii) of this section and shall be limited to addressing 

whether the identification of TR NOX annual units in such notice 

is in accordance with paragraph (b)(1)(iii) of this section. 

(B) The Administrator will adjust the identification of TR NOX

Annual units in the each notice of data availability required in 
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paragraph (b)(1)(iii) of this section to the extent necessary to 

ensure that it is in accordance with paragraph (b)(1)(iii) of 

this section and will calculate the TR NOX Annual allowance 

allocation to each TR NOX Annual unit in accordance with 

§97.412(a)(9), (10), and (12) and §§97.406(b)(2) and 97.430 

through 97.435. By February 15 immediately after the 

promulgation of each notice of data availability required in 

paragraph (b)(1)(iii) of this section, the Administrator will 

promulgate a notice of data availability of any adjustments of 

the identification of TR NOX Annual units that the Administrator 

determines to be necessary, the reasons for accepting or 

rejecting any objections submitted in accordance with paragraph 

(b)(1)(iv)(A) of this section, and the results of such 

calculations.

(v) To the extent any TR NOX Annual allowances are added to the 

new unit set-aside after promulgation of each notice of data 

availability required in paragraph (b)(1)(iv) of this section, 

the Administrator will promulgate additional notices of data 

availability, as deemed appropriate, of the allocation of such 

TR NOX Annual allowances in accordance with §97.412(a)(10). 

(2) Indian country new unit set-asides. (i) By June 1, 2012 and 

June 1 of each year thereafter, the Administrator will calculate 

the TR NOX Annual allowance allocation to each TR NOX Annual unit
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in Indian country within the borders of a State, in accordance 

with §97.412(b)(2) through (7) and (12), for the control period 

in the year of the applicable calculation deadline under this 

paragraph and will promulgate a notice of data availability of 

the results of the calculations.

(ii) For each notice of data availability required in paragraph 

(b)(2)(i) of this section, the Administrator will provide an 

opportunity for submission of objections to the calculations 

referenced in such notice. 

(A) Objections shall be submitted by the deadline specified in 

each notice of data availability required in paragraph (b)(2)(i)

of this section and shall be limited to addressing whether the 

calculations (including the identification of the TR NOX Annual 

units) are in accordance with §97.412(b)(2) through (7) and (12)

and §§97.406(b)(2) and 97.430 through 97.435. 

(B) The Administrator will adjust the calculations to the extent 

necessary to ensure that they are in accordance with the 

provisions referenced in paragraph (b)(2)(ii)(A) of this 

section. By August 1 immediately after the promulgation of each 

notice of data availability required in paragraph (b)(2)(i) of 

this section, the Administrator will promulgate a notice of data 

availability of any adjustments that the Administrator 
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determines to be necessary with regard to allocations under 

§97.412(b)(2) through (7) and (12) and the reasons for accepting 

or rejecting any objections submitted in accordance with 

paragraph (b)(2)(ii)(A) of this section. 

(iii) If the Indian country new unit set-aside for such control 

period contains any TR NOX Annual allowances that have not been 

allocated in the applicable notice of data availability required 

in paragraph (b)(2)(ii) of this section, the Administrator will 

promulgate, by December 15 immediately after such notice, a 

notice of data availability that identifies any TR NOX Annual

units that commenced commercial operation during the period 

starting January 1 of the year before the year of such control 

period and ending November 30 of year of such control period.

(iv) For each notice of data availability required in paragraph 

(b)(2)(iii) of this section, the Administrator will provide an 

opportunity for submission of objections to the identification 

of TR NOX annual units in such notice. 

(A) Objections shall be submitted by the deadline specified in 

each notice of data availability required in paragraph 

(b)(2)(iii) of this section and shall be limited to addressing 

whether the identification of TR NOX annual units in such notice 

is in accordance with paragraph (b)(2)(iii) of this section. 
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(B) The Administrator will adjust the identification of TR NOX

Annual units in the each notice of data availability required in 

paragraph (b)(2)(iii) of this section to the extent necessary to 

ensure that it is in accordance with paragraph (b)(2)(iii) of 

this section and will calculate the TR NOX Annual allowance 

allocation to each TR NOX Annual unit in accordance with 

§97.412(b)(9), (10), and (12) and §§97.406(b)(2) and 97.430 

through 97.435. By February 15 immediately after the 

promulgation of each notice of data availability required in 

paragraph (b)(2)(iii) of this section, the Administrator will 

promulgate a notice of data availability of any adjustments of 

the identification of TR NOX Annual units that the Administrator 

determines to be necessary, the reasons for accepting or 

rejecting any objections submitted in accordance with paragraph 

(b)(2)(iv)(A) of this section, and the results of such 

calculations. 

(v) To the extent any TR NOX Annual allowances are added to the 

Indian country new unit set-aside after promulgation of each 

notice of data availability required in paragraph (b)(2)(iv) of 

this section, the Administrator will promulgate additional 

notices of data availability, as deemed appropriate, of the 

allocation of such TR NOX Annual allowances in accordance with 

§97.412(b)(10).
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(c) Units incorrectly allocated TR NOX Annual allowances. (1) 

For each control period in 2012 and thereafter, if the 

Administrator determines that TR NOX Annual allowances were 

allocated under paragraph (a) of this section, or under a 

provision of a SIP revision approved under §52.38(a)(3), (4), or 

(5) of this chapter, where such control period and the recipient 

are covered by the provisions of paragraph (c)(1)(i) of this 

section or were allocated under §97.412(a)(2) through (7), (9), 

and (12) and (b)(2) through (7), (9), and (12), or under a 

provision of a SIP revision approved under §52.38(a)(4) or (5) 

of this chapter, where such control period and the recipient are

covered by the provisions of paragraph (c)(1)(ii) of this 

section, then the Administrator will notify the designated 

representative of the recipient and will act in accordance with 

the procedures set forth in paragraphs (c)(2) through (5) of 

this section:

(i)(A) The recipient is not actually a TR NOX Annual unit under 

§97.404 as of January 1, 2012 and is allocated TR NOX Annual 

allowances for such control period or, in the case of an 

allocation under a provision of a SIP revision approved under 

§52.38(a)(3), (4), or (5) of this chapter, the recipient is not 

actually a TR NOX Annual unit as of January 1, 2012 and is 

allocated TR NOX Annual allowances for such control period that 
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the SIP revision provides should be allocated only to recipients 

that are TR NOX Annual units as of January 1, 2012; or

(B) The recipient is not located as of January 1 of the control 

period in the State from whose NOX Annual trading budget the TR 

NOX Annual allowances allocated under paragraph (a) of this 

section, or under a provision of a SIP revision approved under 

§52.38(a)(3), (4), or (5) of this chapter, were allocated for 

such control period. 

(ii) The recipient is not actually a TR NOX Annual unit under 

§97.404 as of January 1 of such control period and is allocated 

TR NOX Annual allowances for such control period or, in the case 

of an allocation under a provision of a SIP revision approved 

under §52.38(a)(3), (4), or (5) of this chapter, the recipient 

is not actually a TR NOX Annual unit as of January 1 of such

control period and is allocated TR NOX Annual allowances for such 

control period that the SIP revision provides should be 

allocated only to recipients that are TR NOX Annual units as of 

January 1 of such control period. 

(2) Except as provided in paragraph (c)(3) or (4) of this 

section, the Administrator will not record such TR NOX Annual 

allowances under §97.421.
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(3) If the Administrator already recorded such TR NOX Annual 

allowances under §97.421 and if the Administrator makes the

determination under paragraph (c)(1) of this section before 

making deductions for the source that includes such recipient 

under §97.424(b) for such control period, then the Administrator 

will deduct from the account in which such TR NOX Annual 

allowances were recorded an amount of TR NOX Annual allowances 

allocated for the same or a prior control period equal to the 

amount of such already recorded TR NOX Annual allowances. The 

authorized account representative shall ensure that there are 

sufficient TR NOX Annual allowances in such account for 

completion of the deduction.

(4) If the Administrator already recorded such TR NOX Annual 

allowances under §97.421 and if the Administrator makes the

determination under paragraph (c)(1) of this section after 

making deductions for the source that includes such recipient 

under §97.424(b) for such control period, then the Administrator 

will not make any deduction to take account of such already 

recorded TR NOX Annual allowances. 

(5)(i) With regard to the TR NOX Annual allowances that are not 

recorded, or that are deducted as an incorrect allocation, in 

accordance with paragraphs (c)(2) and (3) of this section for a 
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recipient under paragraph (c)(1)(i) of this section, the 

Administrator will:

(A) Transfer such TR NOX Annual allowances to the new unit setaside for such control period for the State from whose NOX Annual 

trading budget the TR NOX Annual allowances were allocated; or

(B) If the State has a SIP revision approved under §52.38(a)(4) 

or (5) covering such control period, include such TR NOX Annual 

allowances in the portion of the State NOX Annual trading budget 

that may be allocated for such control period in accordance with 

such SIP revision. 

(ii) With regard to the TR NOX Annual allowances that were not 

allocated from the Indian country new unit set-aside for such 

control period and that are not recorded, or that are deducted

as an incorrect allocation, in accordance with paragraphs (c)(2) 

and (3) of this section for a recipient under paragraph 

(c)(1)(ii) of this paragraph, the Administrator will:

(A) Transfer such TR NOX Annual allowances to the new unit setaside for such control period; or

(B) If the State has a SIP revision approved under §52.38(a)(4) 

or (5) covering such control period, include such TR NOX Annual 

allowances in the portion of the State NOX Annual trading budget 
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that may be allocated for such control period in accordance with 

such SIP revision. 

(iii) With regard to the TR NOX Annual allowances that were 

allocated from the Indian country new unit set-aside for such 

control period and that are not recorded, or that are deducted

as an incorrect allocation, in accordance with paragraphs (c)(2) 

and (3) of this section for a recipient under paragraph 

(c)(1)(ii) of this paragraph, the Administrator will transfer 

such TR NOX Annual allowances to the Indian country new unit setaside for such control period.

§ 97.412 TR NOX Annual allowance allocations to new units.

(a) For each control period in 2012 and thereafter and for the 

TR NOX Annual units in each State, the Administrator will 

allocate TR NOX Annual allowances to the TR NOX Annual units as 

follows: 

(1) The TR NOX Annual allowances will be allocated to the 

following TR NOX Annual units, except as provided in paragraph 

(a)(10) of this section:

(i) TR NOX Annual units that are not allocated an amount of TR 

NOX Annual allowances in the notice of data availability issued 

under §97.411(a)(1);
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(ii) TR NOX Annual units whose allocation of an amount of TR NOX

Annual allowances for such control period in the notice of data 

availability issued under §97.411(a)(1) is covered by 

§97.411(c)(2) or (3);

(iii) TR NOX Annual units that are allocated an amount of TR NOX

Annual allowances for such control period in the notice of data 

availability issued under §97.411(a)(1), which allocation is 

terminated for such control period pursuant to §97.411(a)(2), 

and that operate during the control period immediately preceding 

such control period; or

(iv) For purposes of paragraph (a)(9) of this section, TR NOX

Annual units under §97.411(c)(1)(ii) whose allocation of an 

amount of TR NOX Annual allowances for such control period in the 

notice of data availability issued under §97.411(b)(1)(ii)(B) is 

covered by §97.411(c)(2) or (3). 

(2) The Administrator will establish a separate new unit setaside for the State for each such control period. Each such new 

unit set-aside will be allocated TR NOX Annual allowances in an 

amount equal to the applicable amount of tons of NOX emissions as 

set forth in §97.410(a) and will be allocated additional TR NOX

Annual allowances (if any) in accordance with §§97.411(a)(2) and 

(c)(5) and paragraph (b)(10) of this section.
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(3) The Administrator will determine, for each TR NOX Annual unit

described in paragraph (a)(1) of this section, an allocation of 

TR NOX Annual allowances for the later of the following control 

periods and for each subsequent control period:

(i) The control period in 2012;

(ii) The first control period after the control period in which 

the TR NOX Annual unit commences commercial operation;

(iii) For a unit described in paragraph (a)(1)(ii) of this 

section, the first control period in which the TR NOX Annual unit 

operates in the State after operating in another jurisdiction 

and for which the unit is not already allocated one or more TR 

NOX Annual allowances; and

(iv) For a unit described in paragraph (a)(1)(iii) of this 

section, the first control period after the control period in 

which the unit resumes operation. 

(4)(i) The allocation to each TR NOX annual unit described in 

paragraph (a)(1)(i) through (iii) of this section and for each 

control period described in paragraph (a)(3) of this section 

will be an amount equal to the unit’s total tons of NOX emissions 

during the immediately preceding control period.
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(ii) The Administrator will adjust the allocation amount in 

paragraph (a)(4)(i) in accordance with paragraphs (a)(5) through 

(7) and (12) of this section.

(5) The Administrator will calculate the sum of the TR NOX Annual 

allowances determined for all such TR NOX Annual units under 

paragraph (a)(4)(i) of this section in the State for such 

control period.

(6) If the amount of TR NOX Annual allowances in the new unit 

set-aside for the State for such control period is greater than 

or equal to the sum under paragraph (a)(5) of this section, then 

the Administrator will allocate the amount of TR NOX Annual 

allowances determined for each such TR NOX Annual unit under 

paragraph (a)(4)(i) of this section.

(7) If the amount of TR NOX Annual allowances in the new unit 

set-aside for the State for such control period is less than the 

sum under paragraph (a)(5) of this section, then the 

Administrator will allocate to each such TR NOX Annual unit the 

amount of the TR NOX Annual allowances determined under paragraph 

(a)(4)(i) of this section for the unit, multiplied by the amount 

of TR NOX Annual allowances in the new unit set-aside for such 

control period, divided by the sum under paragraph (a)(5) of 

this section, and rounded to the nearest allowance.
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(8) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 

§97.411(b)(1)(i) and (ii), of the amount of TR NOX Annual 

allowances allocated under paragraphs (a)(2) through (7) and 

(12) of this section for such control period to each TR NOX

Annual unit eligible for such allocation.

(9) If, after completion of the procedures under paragraphs

(a)(5) through (8) of this section for such control period, any 

unallocated TR NOX Annual allowances remain in the new unit setaside for the State for such control period, the Administrator 

will allocate such TR NOX Annual allowances as follows--

(i) The Administrator will determine, for each unit described in 

paragraph (a)(1) of this section that commenced commercial 

operation during the period starting January 1 of the year 

before the year of such control period and ending November 30 of 

year of such control period, the positive difference (if any) 

between the unit’s emissions during such control period and the 

amount of TR NOX Annual allowances referenced in the notice of 

data availability required under §97.411(b)(1)(ii) for the unit 

for such control period;
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(ii) The Administrator will determine the sum of the positive 

differences determined under paragraph (a)(9)(i) of this 

section;

(iii) If the amount of unallocated TR NOX Annual allowances 

remaining in the new unit set-aside for the State for such 

control period is greater than or equal to the sum determined 

under paragraph (a)(9)(ii) of this section, then the 

Administrator will allocate the amount of TR NOX Annual 

allowances determined for each such TR NOX Annual unit under 

paragraph (a)(9)(i) of this section; and

(iv) If the amount of unallocated TR NOX Annual allowances 

remaining in the new unit set-aside for the State for such 

control period is less than the sum under paragraph (a)(9)(ii)

of this section, then the Administrator will allocate to each 

such TR NOX Annual unit the amount of the TR NOX Annual 

allowances determined under paragraph (a)(9)(i) of this section 

for the unit, multiplied by the amount of unallocated TR NOX

Annual allowances remaining in the new unit set-aside for such 

control period, divided by the sum under paragraph (a)(9)(ii) of 

this section, and rounded to the nearest allowance.

(10) If, after completion of the procedures under paragraphs

(a)(9) and (12) of this section for such control period, any 
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unallocated TR NOX Annual allowances remain in the new unit setaside for the State for such control period, the Administrator 

will allocate to each TR NOX Annual unit that is in the State, is 

allocated an amount of TR NOX Annual allowances in the notice of 

data availability issued under §97.411(a)(1), and continues to 

be allocated TR NOX Annual allowances for such control period in 

accordance with §97.411(a)(2), an amount of TR NOX Annual 

allowances equal to the following: the total amount of such 

remaining unallocated TR NOX Annual allowances in such new unit 

set-aside, multiplied by the unit's allocation under §97.411(a) 

for such control period, divided by the remainder of the amount 

of tons in the applicable State NOX Annual trading budget minus 

the sum of the amounts of tons in such new unit set-aside and 

the Indian country new unit set-aside for the State for such 

control period, and rounded to the nearest allowance.

(11) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 

§97.411(b)(1)(iii), (iv), and (v), of the amount of TR NOX Annual 

allowances allocated under paragraphs (a)(9), (10), and (12) of 

this section for such control period to each TR NOX Annual unit 

eligible for such allocation.

(12)(i) Notwithstanding the requirements of paragraphs (a)(2) 

through (11) of this section, if the calculations of allocations 
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of a new unit set-aside for a control period in a given year 

under paragraph (a)(7) of this section, paragraphs (a)(6) and 

(9)(iv) of this section, or paragraphs (a)(6), (9)(iii), and 

(10) of this section would otherwise result in total allocations 

of such new unit set-aside exceeding the total amount of such 

new unit set-aside, then the Administrator will adjust the 

results of the calculations under paragraph (a)(7), (9)(iv), or 

(10) of this section, as applicable, as follows. The 

Administrator will list the TR NOX Annual units in descending 

order based on the amount of such units’ allocations under 

paragraph (a)(7), (9)(iv), or (10) of this section, as 

applicable, and, in cases of equal allocation amounts, in 

alphabetical order of the relevant source’s name and numerical 

order of the relevant unit’s identification number, and will 

reduce each unit’s allocation under paragraph (a)(7), (9)(iv), 

or (10) of this section, as applicable, by one TR NOX Annual 

allowance (but not below zero) in the order in which the units 

are listed and will repeat this reduction process as necessary, 

until the total allocations of such new unit set-aside equal the 

total amount of such new unit set-aside. 

(ii) Notwithstanding the requirements of paragraphs (a)(10) and 

(11) of this section, if the calculations of allocations of a 

new unit set-aside for a control period in a given year under 
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paragraphs (a)(6), (9)(iii), and (10) of this section would 

otherwise result in a total allocations of such new unit setaside less than the total amount of such new unit set-aside, 

then the Administrator will adjust the results of the 

calculations under paragraph (a)(10) of this section, as 

follows. The Administrator will list the TR NOX Annual units in 

descending order based on the amount of such units’ allocations 

under paragraph (a)(10) of this section and, in cases of equal 

allocation amounts, in alphabetical order of the relevant 

source’s name and numerical order of the relevant unit’s 

identification number, and will increase each unit’s allocation 

under paragraph (a)(10) of this section by one TR NOX Annual 

allowance in the order in which the units are listed and will 

repeat this increase process as necessary, until the total 

allocations of such new unit set-aside equal the total amount of 

such new unit set-aside. 

(b) For each control period in 2012 and thereafter and for the 

TR NOX Annual units located in Indian country within the borders 

of each State, the Administrator will allocate TR NOX Annual 

allowances to the TR NOX Annual units as follows: 

(1) The TR NOX Annual allowances will be allocated to the 

following TR NOX Annual units, except as provided in paragraph 

(b)(10) of this section:
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(i) TR NOX Annual units that are not allocated an amount of TR 

NOX Annual allowances in the notice of data availability issued 

under §97.411(a)(1); or

(ii) For purposes of paragraph (b)(9) of this section, TR NOX

Annual units under §97.411(c)(1)(ii) whose allocation of an 

amount of TR NOX Annual allowances for such control period in the 

notice of data availability issued under §97.411(b)(2)(ii)(B) is 

covered by §97.411(c)(2) or (3). 

(2) The Administrator will establish a separate Indian country 

new unit set-aside for the State for each such control period. 

Each such Indian country new unit set-aside will be allocated TR 

NOX Annual allowances in an amount equal to the applicable amount 

of tons of NOX emissions as set forth in §97.410(a) and will be 

allocated additional TR NOX Annual allowances (if any) in 

accordance with §97.411(c)(5).

(3) The Administrator will determine, for each TR NOX Annual unit

described in paragraph (b)(1) of this section, an allocation of 

TR NOX Annual allowances for the later of the following control 

periods and for each subsequent control period:

(i) The control period in 2012; and
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(ii) The first control period after the control period in which 

the TR NOX Annual unit commences commercial operation.

(4)(i) The allocation to each TR NOX annual unit described in 

paragraph (b)(1)(i) of this section and for each control period 

described in paragraph (b)(3) of this section will be an amount 

equal to the unit’s total tons of NOX emissions during the 

immediately preceding control period.

(ii) The Administrator will adjust the allocation amount in 

paragraph (b)(4)(i) in accordance with paragraphs (b)(5) through 

(7) and (12) of this section.

(5) The Administrator will calculate the sum of the TR NOX Annual 

allowances determined for all such TR NOX Annual units under 

paragraph (b)(4)(i) of this section in Indian country within the 

borders of the State for such control period.

(6) If the amount of TR NOX Annual allowances in the Indian 

country new unit set-aside for the State for such control period 

is greater than or equal to the sum under paragraph (b)(5) of 

this section, then the Administrator will allocate the amount of 

TR NOX Annual allowances determined for each such TR NOX Annual 

unit under paragraph (b)(4)(i) of this section.
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(7) If the amount of TR NOX Annual allowances in the Indian 

country new unit set-aside for the State for such control period 

is less than the sum under paragraph (b)(5) of this section, 

then the Administrator will allocate to each such TR NOX Annual 

unit the amount of the TR NOX Annual allowances determined under 

paragraph (b)(4)(i) of this section for the unit, multiplied by 

the amount of TR NOX Annual allowances in the Indian country new 

unit set-aside for such control period, divided by the sum under 

paragraph (b)(5) of this section, and rounded to the nearest 

allowance.

(8) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 

§97.411(b)(2)(i) and (ii), of the amount of TR NOX Annual 

allowances allocated under paragraphs (b)(2) through (7) and 

(12) of this section for such control period to each TR NOX

Annual unit eligible for such allocation.

(9) If, after completion of the procedures under paragraphs

(b)(5) through (8) of this section for such control period, any 

unallocated TR NOX Annual allowances remain in the Indian country 

new unit set-aside for the State for such control period, the 

Administrator will allocate such TR NOX Annual allowances as 

follows--
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(i) The Administrator will determine, for each unit described in 

paragraph (b)(1) of this section that commenced commercial 

operation during the period starting January 1 of the year 

before the year of such control period and ending November 30 of 

year of such control period, the positive difference (if any) 

between the unit’s emissions during such control period and the 

amount of TR NOX Annual allowances referenced in the notice of 

data availability required under §97.411(b)(2)(ii) for the unit 

for such control period;

(ii) The Administrator will determine the sum of the positive 

differences determined under paragraph (b)(9)(i) of this 

section;

(iii) If the amount of unallocated TR NOX Annual allowances 

remaining in the Indian country new unit set-aside for the State 

for such control period is greater than or equal to the sum 

determined under paragraph (b)(9)(ii) of this section, then the 

Administrator will allocate the amount of TR NOX Annual 

allowances determined for each such TR NOX Annual unit under 

paragraph (b)(9)(i) of this section; and

(iv) If the amount of unallocated TR NOX Annual allowances 

remaining in the Indian country new unit set-aside for the State 

for such control period is less than the sum under paragraph 
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(b)(9)(ii) of this section, then the Administrator will allocate 

to each such TR NOX Annual unit the amount of the TR NOX Annual 

allowances determined under paragraph (b)(9)(i) of this section 

for the unit, multiplied by the amount of unallocated TR NOX

Annual allowances remaining in the Indian country new unit setaside for such control period, divided by the sum under 

paragraph (b)(9)(ii) of this section, and rounded to the nearest 

allowance.

(10) If, after completion of the procedures under paragraphs

(b)(9) and (12) of this section for such control period, any 

unallocated TR NOX Annual allowances remain in the Indian country 

new unit set-aside for the State for such control period, the 

Administrator will:

(i) Transfer such unallocated TR NOX Annual allowances to the new 

unit set-aside for the State for such control period; or 

(ii) If the State has a SIP revision approved under §52.38(a)(4) 

or (5) covering such control period, include such unallocated TR 

NOX Annual allowances in the portion of the State NOX Annual 

trading budget that may be allocated for such control period in 

accordance with such SIP revision. 

(11) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 
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§97.411(b)(2)(iii), (iv), and (v), of the amount of TR NOX Annual 

allowances allocated under paragraphs (b)(9), (10), and (12) of 

this section for such control period to each TR NOX Annual unit 

eligible for such allocation.

(12)(i) Notwithstanding the requirements of paragraphs (b)(2) 

through (11) of this section, if the calculations of allocations 

of an Indian country new unit set-aside for a control period in 

a given year under paragraph (b)(7) of this section, paragraphs 

(b)(6) and (9)(iv) of this section, or paragraphs (b)(6), 

(9)(iii), and (10) of this section would otherwise result in 

total allocations of such Indian country new unit set-aside 

exceeding the total amount of such Indian country new unit setaside, then the Administrator will adjust the results of the 

calculations under paragraph (b)(7), (9)(iv), or (10) of this 

section, as applicable, as follows. The Administrator will list 

the TR NOX Annual units in descending order based on the amount 

of such units’ allocations under paragraph (b)(7), (9)(iv), or 

(10) of this section, as applicable, and, in cases of equal 

allocation amounts, in alphabetical order of the relevant 

source’s name and numerical order of the relevant unit’s 

identification number, and will reduce each unit’s allocation 

under paragraph (b)(7), (9)(iv), or (10) of this section, as 

applicable, by one TR NOX Annual allowance (but not below zero) 
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in the order in which the units are listed and will repeat this 

reduction process as necessary, until the total allocations of 

such Indian country new unit set-aside equal the total amount of 

such Indian country new unit set-aside. 

(ii) Notwithstanding the requirements of paragraphs (b)(10) and 

(11) of this section, if the calculations of allocations of an 

Indian country new unit set-aside for a control period in a 

given year under paragraphs (b)(6), (9)(iii), and (10) of this 

section would otherwise result in a total allocations of such 

Indian country new unit set-aside less than the total amount of 

such Indian country new unit set-aside, then the Administrator 

will adjust the results of the calculations under paragraph 

(b)(10) of this section, as follows. The Administrator will 

list the TR NOX Annual units in descending order based on the 

amount of such units’ allocations under paragraph (b)(10) of 

this section and, in cases of equal allocation amounts, in 

alphabetical order of the relevant source’s name and numerical 

order of the relevant unit’s identification number, and will 

increase each unit’s allocation under paragraph (b)(10) of this 

section by one TR NOX Annual allowance in the order in which the 

units are listed and will repeat this increase process as 

necessary, until the total allocations of such Indian country 
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new unit set-aside equal the total amount of such Indian country

new unit set-aside. 

§ 97.413 Authorization of designated representative and 

alternate designated representative.

(a) Except as provided under §97.415, each TR NOX Annual source, 

including all TR NOX Annual units at the source, shall have one 

and only one designated representative, with regard to all 

matters under the TR NOX Annual Trading Program.

(1) The designated representative shall be selected by an 

agreement binding on the owners and operators of the source and 

all TR NOX Annual units at the source and shall act in accordance 

with the certification statement in §97.416(a)(4)(iii).

(2) Upon and after receipt by the Administrator of a complete 

certificate of representation under §97.416:

(i) The designated representative shall be authorized and shall 

represent and, by his or her representations, actions, 

inactions, or submissions, legally bind each owner and operator 

of the source and each TR NOX Annual unit at the source in all 

matters pertaining to the TR NOX Annual Trading Program, 

notwithstanding any agreement between the designated 

representative and such owners and operators; and
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(ii) The owners and operators of the source and each TR NOX

Annual unit at the source shall be bound by any decision or 

order issued to the designated representative by the 

Administrator regarding the source or any such unit.

(b) Except as provided under §97.415, each TR NOX Annual source 

may have one and only one alternate designated representative, 

who may act on behalf of the designated representative. The 

agreement by which the alternate designated representative is 

selected shall include a procedure for authorizing the alternate 

designated representative to act in lieu of the designated 

representative.

(1) The alternate designated representative shall be selected by 

an agreement binding on the owners and operators of the source 

and all TR NOX Annual units at the source and shall act in 

accordance with the certification statement in 

§97.416(a)(4)(iii).

(2) Upon and after receipt by the Administrator of a complete 

certificate of representation under §97.416, 

(i) The alternate designated representative shall be authorized; 

(ii) Any representation, action, inaction, or submission by the 

alternate designated representative shall be deemed to be a 
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representation, action, inaction, or submission by the 

designated representative; and

(iii) The owners and operators of the source and each TR NOX

Annual unit at the source shall be bound by any decision or 

order issued to the alternate designated representative by the 

Administrator regarding the source or any such unit.

(c) Except in this section, §97.402, and §§97.414 through 

97.418, whenever the term “designated representative” (as 

distinguished from the term “common designated representative”) 

is used in this subpart, the term shall be construed to include 

the designated representative or any alternate designated 

representative.

§ 97.414 Responsibilities of designated representative and 

alternate designated representative.

(a) Except as provided under §97.418 concerning delegation of 

authority to make submissions, each submission under the TR NOX

Annual Trading Program shall be made, signed, and certified by 

the designated representative or alternate designated 

representative for each TR NOX Annual source and TR NOX Annual 

unit for which the submission is made. Each such submission 

shall include the following certification statement by the 

designated representative or alternate designated 
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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.”

(b) The Administrator will accept or act on a submission made 

for a TR NOX Annual source or a TR NOX Annual unit only if the 

submission has been made, signed, and certified in accordance 

with paragraph (a) of this section and §97.418.

§ 97.415 Changing designated representative and alternate 

designated representative; changes in owners and operators; 

changes in units at the source.

(a) Changing designated representative. The designated 

representative may be changed at any time upon receipt by the 

Administrator of a superseding complete certificate of 
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representation under §97.416. Notwithstanding any such change, 

all representations, actions, inactions, and submissions by the 

previous designated representative before the time and date when 

the Administrator receives the superseding certificate of 

representation shall be binding on the new designated 

representative and the owners and operators of the TR NOX Annual 

source and the TR NOX Annual units at the source.

(b) Changing alternate designated representative. The alternate 

designated representative may be changed at any time upon 

receipt by the Administrator of a superseding complete 

certificate of representation under §97.416. Notwithstanding 

any such change, all representations, actions, inactions, and 

submissions by the previous alternate designated representative 

before the time and date when the Administrator receives the 

superseding certificate of representation shall be binding on 

the new alternate designated representative, the designated 

representative, and the owners and operators of the TR NOX Annual 

source and the TR NOX Annual units at the source.

(c) Changes in owners and operators. (1) In the event an owner 

or operator of a TR NOX Annual source or a TR NOX Annual unit at 

the source is not included in the list of owners and operators 

in the certificate of representation under §97.416, such owner 

or operator shall be deemed to be subject to and bound by the 
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certificate of representation, the representations, actions, 

inactions, and submissions of the designated representative and 

any alternate designated representative of the source or unit, 

and the decisions and orders of the Administrator, as if the 

owner or operator were included in such list.

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

of a TR NOX Annual source or a TR NOX Annual unit at the source, 

including the addition or removal of an owner or operator, the 

designated representative or any alternate designated 

representative shall submit a revision to the certificate of 

representation under §97.416 amending the list of owners and 

operators to reflect the change.

(d) Changes in units at the source. Within 30 days of any 

change in which units are located at a TR NOX Annual source

(including the addition or removal of a unit), the designated 

representative or any alternate designated representative shall 

submit a certificate of representation under §97.416 amending 

the list of units to reflect the change. 

(1) If the change is the addition of a unit that operated (other 

than for purposes of testing by the manufacturer before initial 

installation) before being located at the source, then the 

certificate of representation shall identify, in a format 
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prescribed by the Administrator, the entity from whom the unit 

was purchased or otherwise obtained (including name, address, 

telephone number, and facsimile number (if any)), the date on 

which the unit was purchased or otherwise obtained, and the date 

on which the unit became located at the source.

(2) If the change is the removal of a unit, then the certificate 

of representation shall identify, in a format prescribed by the 

Administrator, the entity to which the unit was sold or that 

otherwise obtained the unit (including name, address, telephone 

number, and facsimile number (if any)), the date on which the 

unit was sold or otherwise obtained, and the date on which the 

unit became no longer located at the source. 

§ 97.416 Certificate of representation.

(a) A complete certificate of representation for a designated 

representative or an alternate designated representative shall 

include the following elements in a format prescribed by the 

Administrator:

(1) Identification of the TR NOX Annual source, and each TR NOX

Annual unit at the source, for which the certificate of 

representation is submitted, including source name, source 

category and NAICS code (or, in the absence of a NAICS code, an 

equivalent code), State, plant code, county, latitude and 
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longitude, unit identification number and type, identification 

number and nameplate capacity (in MWe, rounded to the nearest 

tenth) of each generator served by each such unit, actual or 

projected date of commencement of commercial operation, and a 

statement of whether such source is located in Indian Country. 

If a projected date of commencement of commercial operation is 

provided, the actual date of commencement of commercial 

operation shall be provided when such information becomes 

available.

(2) The name, address, e-mail address (if any), telephone 

number, and facsimile transmission number (if any) of the 

designated representative and any alternate designated 

representative.

(3) A list of the owners and operators of the TR NOX Annual 

source and of each TR NOX Annual unit at the source.

(4) The following certification statements by the designated 

representative and any alternate designated representative—

(i) “I certify that I was selected as the designated 

representative or alternate designated representative, as 

applicable, by an agreement binding on the owners and operators 

of the source and each TR NOX Annual unit at the source.”
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(ii) “I certify that I have all the necessary authority to carry 

out my duties and responsibilities under the TR NOX Annual 

Trading Program on behalf of the owners and operators of the 

source and of each TR NOX Annual unit at the source and that each 

such owner and operator shall be fully bound by my 

representations, actions, inactions, or submissions and by any 

decision or order issued to me by the Administrator regarding 

the source or unit.”

(iii) “Where there are multiple holders of a legal or equitable 

title to, or a leasehold interest in, a TR NOX Annual unit, or 

where a utility or industrial customer purchases power from a TR 

NOX Annual unit under a life-of-the-unit, firm power contractual 

arrangement, I certify that: I have given a written notice of my 

selection as the ‘designated representative’ or ‘alternate 

designated representative’, as applicable, and of the agreement 

by which I was selected to each owner and operator of the source 

and of each TR NOX Annual unit at the source; and TR NOX Annual 

allowances and proceeds of transactions involving TR NOX Annual 

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 TR NOX Annual allowances by contract, TR NOX
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Annual allowances and proceeds of transactions involving TR NOX

Annual allowances will be deemed to be held or distributed in 

accordance with the contract.”

(5) The signature of the designated representative and any 

alternate designated representative and the dates signed.

(b) Unless otherwise required by the Administrator, documents of 

agreement referred to in the certificate of representation shall 

not be submitted to the Administrator. The Administrator shall 

not be under any obligation to review or evaluate the 

sufficiency of such documents, if submitted.

§ 97.417 Objections concerning designated representative and 

alternate designated representative.

(a) Once a complete certificate of representation under §97.416 

has been submitted and received, the Administrator will rely on 

the certificate of representation unless and until a superseding 

complete certificate of representation under §97.416 is received 

by the Administrator.

(b) Except as provided in paragraph (a) of this section, no 

objection or other communication submitted to the Administrator 

concerning the authorization, or any representation, action, 

inaction, or submission, of a designated representative or 
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alternate designated representative shall affect any 

representation, action, inaction, or submission of the 

designated representative or alternate designated representative 

or the finality of any decision or order by the Administrator 

under the TR NOX Annual Trading Program.

(c) The Administrator will not adjudicate any private legal 

dispute concerning the authorization or any representation, 

action, inaction, or submission of any designated representative 

or alternate designated representative, including private legal 

disputes concerning the proceeds of TR NOX Annual allowance 

transfers.

§ 97.418 Delegation by designated representative and alternate 

designated representative.

(a) A designated representative may delegate, to one or more 

natural persons, his or her authority to make an electronic 

submission to the Administrator provided for or required under 

this subpart.

(b) An alternate designated representative may delegate, to one 

or more natural persons, his or her authority to make an 

electronic submission to the Administrator provided for or 

required under this subpart.
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(c) In order to delegate authority to a natural person to make 

an electronic submission to the Administrator in accordance with 

paragraph (a) or (b) of this section, the designated 

representative or alternate designated representative, as 

appropriate, must submit to the Administrator a notice of 

delegation, in a format prescribed by the Administrator, that 

includes the following elements:

(1) The name, address, e-mail address, telephone number, and 

facsimile transmission number (if any) of such designated 

representative or alternate designated representative;

(2) The name, address, e-mail address, telephone number, and 

facsimile transmission number (if any) of each such natural 

person (referred to in this section as an “agent”);

(3) For each such natural person, a list of the type or types of 

electronic submissions under paragraph (a) or (b) of this 

section for which authority is delegated to him or her; and

(4) The following certification statements by such designated 

representative or alternate designated representative:

(i) “I agree that any electronic submission to the Administrator 

that is made by an agent identified in this notice of delegation 

and of a type listed for such agent in this notice of delegation 
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and that is made when I am a designated representative or 

alternate designated representative, as appropriate, and before 

this notice of delegation is superseded by another notice of 

delegation under 40 CFR 97.418(d) shall be deemed to be an 

electronic submission by me.”

(ii) “Until this notice of delegation is superseded by another 

notice of delegation under 40 CFR 97.418(d), I agree to maintain 

an e-mail account and to notify the Administrator immediately of 

any change in my e-mail address unless all delegation of 

authority by me under 40 CFR 97.418 is terminated.”.

(d) A notice of delegation submitted under paragraph (c) of this 

section shall be effective, with regard to the designated 

representative or alternate designated representative identified 

in such notice, upon receipt of such notice by the Administrator 

and until receipt by the Administrator of a superseding notice 

of delegation submitted by such designated representative or 

alternate designated representative, as appropriate. The 

superseding notice of delegation may replace any previously 

identified agent, add a new agent, or eliminate entirely any 

delegation of authority.

(e) Any electronic submission covered by the certification in 

paragraph (c)(4)(i) of this section and made in accordance with 
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a notice of delegation effective under paragraph (d) of this 

section shall be deemed to be an electronic submission by the 

designated representative or alternate designated representative 

submitting such notice of delegation.

§ 97.419 [Reserved]

§ 97.420 Establishment of compliance accounts, assurance 

accounts, and general accounts.

(a) Compliance accounts. Upon receipt of a complete certificate 

of representation under §97.416, the Administrator will 

establish a compliance account for the TR NOX Annual source for 

which the certificate of representation was submitted, unless 

the source already has a compliance account. The designated 

representative and any alternate designated representative of 

the source shall be the authorized account representative and 

the alternate authorized account representative respectively of 

the compliance account.

(b) Assurance accounts. The Administrator will establish 

assurance accounts for certain owners and operators and States 

in accordance with §97.425(b)(3). 

(c) General accounts. (1) Application for general account. (i) 

Any person may apply to open a general account, for the purpose 
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of holding and transferring TR NOX Annual allowances, by 

submitting to the Administrator a complete application for a 

general account. Such application shall designate one and only 

one authorized account representative and may designate one and 

only one alternate authorized account representative who may act 

on behalf of the authorized account representative. 

(A) The authorized account representative and alternate 

authorized account representative shall be selected by an 

agreement binding on the persons who have an ownership interest 

with respect to TR NOX Annual allowances held in the general 

account. 

(B) The agreement by which the alternate authorized account 

representative is selected shall include a procedure for 

authorizing the alternate authorized account representative to 

act in lieu of the authorized account representative.

(ii) A complete application for a general account 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 

authorized account representative and any alternate authorized 

account representative;
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(B) An identifying name for the general account;

(C) A list of all persons subject to a binding agreement for the 

authorized account representative and any alternate authorized 

account representative to represent their ownership interest 

with respect to the TR NOX Annual allowances held in the general 

account;

(D) The following certification statement by the authorized 

account representative and any alternate authorized account 

representative: “I certify that I was selected as the authorized 

account representative or the alternate authorized account 

representative, as applicable, by an agreement that is binding 

on all persons who have an ownership interest with respect to TR 

NOX Annual allowances held in the general account. I certify that 

I have all the necessary authority to carry out my duties and 

responsibilities under the TR NOX Annual Trading Program on 

behalf of such persons and that each such person shall be fully 

bound by my representations, actions, inactions, or submissions 

and by any decision or order issued to me by the Administrator 

regarding the general account.”

(E) The signature of the authorized account representative and 

any alternate authorized account representative and the dates 

signed.
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(iii) Unless otherwise required by the Administrator, documents 

of agreement referred to in the application for a general 

account shall not be submitted to the Administrator. The 

Administrator shall not be under any obligation to review or 

evaluate the sufficiency of such documents, if submitted.

(2) Authorization of authorized account representative and 

alternate authorized account representative. (i) Upon receipt 

by the Administrator of a complete application for a general 

account under paragraph (b)(1) of this section, the 

Administrator will establish a general account for the person or 

persons for whom the application is submitted, and upon and 

after such receipt by the Administrator:

(A) The authorized account representative of the general account 

shall be authorized and shall represent and, by his or her 

representations, actions, inactions, or submissions, legally 

bind each person who has an ownership interest with respect to 

TR NOX Annual allowances held in the general account in all 

matters pertaining to the TR NOX Annual Trading Program, 

notwithstanding any agreement between the authorized account 

representative and such person. 

(B) Any alternate authorized account representative shall be 

authorized, and any representation, action, inaction, or 
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submission by any alternate authorized account representative 

shall be deemed to be a representation, action, inaction, or 

submission by the authorized account representative.

(C) Each person who has an ownership interest with respect to TR 

NOX Annual allowances held in the general account shall be bound 

by any decision or order issued to the authorized account 

representative or alternate authorized account representative by 

the Administrator regarding the general account. 

(ii) Except as provided in paragraph (c)(5) of this section 

concerning delegation of authority to make submissions, each 

submission concerning the general account shall be made, signed, 

and certified by the authorized account representative or any 

alternate authorized account representative for the persons 

having an ownership interest with respect to TR NOX Annual 

allowances held in the general account. Each such submission 

shall include the following certification statement by the 

authorized account representative or any alternate authorized 

account representative: “I am authorized to make this submission 

on behalf of the persons having an ownership interest with 

respect to the TR NOX Annual 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 
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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) Except in this section, whenever the term “authorized 

account representative” is used in this subpart, the term shall 

be construed to include the authorized account representative or 

any alternate authorized account representative.

(3) Changing authorized account representative and alternate 

authorized account representative; changes in persons with 

ownership interest. (i) The authorized account representative 

of 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 (c)(1) of this section. 

Notwithstanding any such change, all representations, actions, 

inactions, and submissions by the previous 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 authorized account representative and the 
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persons with an ownership interest with respect to the TR NOX

Annual allowances in the general account.

(ii) The alternate authorized account representative of 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 (c)(1) of this section.

Notwithstanding any such change, all representations, actions, 

inactions, and submissions by the previous alternate 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 authorized account 

representative, the authorized account representative, and the 

persons with an ownership interest with respect to the TR NOX

Annual allowances in the general account.

(iii)(A) In the event a person having an ownership interest with 

respect to TR NOX Annual allowances in the general account is not 

included in the list of such persons in the application for a 

general account, such person shall be deemed to be subject to 

and bound by the application for a general account, the 

representation, actions, inactions, and submissions of the 

authorized account representative and any alternate authorized 

account representative of the account, and the decisions and 
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orders of the Administrator, as if the person were included in 

such list.

(B) Within 30 days after any change in the persons having an 

ownership interest with respect to NOX Annual allowances in the 

general account, including the addition or removal of a person, 

the authorized account representative or any alternate 

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 TR NOX Annual 

allowances in the general account to include the change.

(4) Objections concerning authorized account representative and 

alternate authorized account representative. (i) Once a 

complete application for a general account under paragraph 

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

no objection or other communication submitted to the 

Administrator concerning the authorization, or any 

representation, action, inaction, or submission of the 
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authorized account representative or any alternate authorized 

account representative of a general account shall affect any 

representation, action, inaction, or submission of the 

authorized account representative or any alternate authorized 

account representative or the finality of any decision or order 

by the Administrator under the TR NOX Annual Trading Program.

(iii) The Administrator will not adjudicate any private legal 

dispute concerning the authorization or any representation, 

action, inaction, or submission of the authorized account 

representative or any alternate authorized account 

representative of a general account, including private legal 

disputes concerning the proceeds of TR NOX Annual allowance 

transfers.

(5) Delegation by authorized account representative and 

alternate authorized account representative. (i) An authorized 

account representative of a general account may delegate, to one 

or more natural persons, his or her authority to make an 

electronic submission to the Administrator provided for or 

required under this subpart.

(ii) An alternate authorized account representative of a general 

account may delegate, to one or more natural persons, his or her 
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authority to make an electronic submission to the Administrator 

provided for or required under this subpart.

(iii) In order to delegate authority to a natural person to make 

an electronic submission to the Administrator in accordance with 

paragraph (c)(5)(i) or (ii) of this section, the authorized 

account representative or alternate authorized account 

representative, as appropriate, must submit to the Administrator 

a notice of delegation, in a format prescribed by the 

Administrator, that includes the following elements:

(A) The name, address, e-mail address, telephone number, and 

facsimile transmission number (if any) of such authorized 

account representative or alternate authorized account 

representative;

(B) The name, address, e-mail address, telephone number, and 

facsimile transmission number (if any) of each such natural 

person (referred to in this section as an “agent”);

(C) For each such natural person, a list of the type or types of 

electronic submissions under paragraph (c)(5)(i) or (ii) of this 

section for which authority is delegated to him or her;

(D) The following certification statement by such authorized 

account representative or alternate authorized account 
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representative: “I agree that any electronic submission to the 

Administrator that is made by an agent identified in this notice 

of delegation and of a type listed for such agent in this notice 

of delegation and that is made when I am an authorized account 

representative or alternate authorized representative, as 

appropriate, and before this notice of delegation is superseded 

by another notice of delegation under 40 CFR 97.420(c)(5)(iv) 

shall be deemed to be an electronic submission by me.”; and

(E) The following certification statement by such authorized 

account representative or alternate authorized account 

representative: “Until this notice of delegation is superseded 

by another notice of delegation under 40 CFR 97.420(c)(5)(iv), I 

agree to maintain an e-mail account and to notify the 

Administrator immediately of any change in my e-mail address 

unless all delegation of authority by me under 40 CFR 

97.420(c)(5) is terminated.”.

(iv) A notice of delegation submitted under paragraph 

(c)(5)(iii) of this section shall be effective, with regard to 

the authorized account representative or alternate authorized 

account representative identified in such notice, upon receipt 

of such notice by the Administrator and until receipt by the 

Administrator of a superseding notice of delegation submitted by 

such authorized account representative or alternate authorized 
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account representative, as appropriate. The superseding notice 

of delegation may replace any previously identified agent, add a 

new agent, or eliminate entirely any delegation of authority.

(v) Any electronic submission covered by the certification in 

paragraph (c)(5)(iii)(D) of this section and made in accordance 

with a notice of delegation effective under paragraph (c)(5)(iv) 

of this section shall be deemed to be an electronic submission 

by the designated representative or alternate designated 

representative submitting such notice of delegation.

(6) Closing a general account. (i) The authorized account 

representative or alternate authorized account representative of 

a general account may submit to the Administrator a request to 

close the account. Such request shall include a correctly 

submitted TR NOX Annual allowance transfer under §97.422 for any 

TR NOX Annual allowances in the account to one or more other 

Allowance Management System accounts.

(ii) If a general account has no TR NOX Annual allowance 

transfers to or from the account for a 12-month period or longer 

and does not contain any TR NOX Annual allowances, the 

Administrator may notify the authorized account representative 

for the account that the account will be closed after 30 days 

after the notice is sent. The account will be closed after the 
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30-day period unless, before the end of the 30-day period, the 

Administrator receives a correctly submitted TR NOX Annual 

allowance transfer under §97.422 to the account or a statement 

submitted by the authorized account representative or alternate 

authorized account representative demonstrating to the 

satisfaction of the Administrator good cause as to why the 

account should not be closed.

(d) Account identification. The Administrator will assign a 

unique identifying number to each account established under 

paragraph (a), (b), or (c) of this section.

(e) Responsibilities of authorized account representative and 

alternate authorized account representative. After the 

establishment of a compliance account or general account, the 

Administrator will accept or act on a submission pertaining to 

the account, including, but not limited to, submissions 

concerning the deduction or transfer of TR NOX Annual allowances 

in the account, only if the submission has been made, signed, 

and certified in accordance with §§97.414(a) and 97.418 or 

paragraphs (c)(2)(ii) and (c)(5) of this section. 

§ 97.421 Recordation of TR NOX Annual allowance allocations and 

auction results.
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(a) By [INSERT DATE 90 DAYS FROM DATE OF PUBLICATION IN THE 

FEDERAL REGISTER], the Administrator will record in each TR NOX

Annual source's compliance account the TR NOX Annual allowances 

allocated to the TR NOX Annual units at the source in accordance 

with §97.411(a) for the control period in 2012.

(b) By [INSERT DATE 90 DAYS FROM DATE OF PUBLICATION IN THE 

FEDERAL REGISTER], the Administrator will record in each TR NOX

Annual source's compliance account the TR NOX Annual allowances 

allocated to the TR NOX Annual units at the source in accordance 

with §97.411(a) for the control period in 2013, unless the State 

in which the source is located notifies the Administrator in 

writing by [INSERT DATE 70 DAYS FROM DATE OF PUBLICATION IN THE 

FEDERAL REGISTER] of the State’s intent to submit to the 

Administrator a complete SIP revision by April 1, 2012 meeting 

the requirements of §52.38(a)(3)(i) through (iv) of this 

chapter.

(1) If, by April 1, 2012, the State does not submit to the 

Administrator such complete SIP revision, the Administrator will 

record by April 15, 2012 in each TR NOX Annual source's 

compliance account the TR NOX Annual allowances allocated to the 

TR NOX Annual units at the source in accordance with §97.411(a)

for the control period in 2013.
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(2) If the State submits to the Administrator by April 1, 2012, 

and the Administrator approves by October 1, 2012, such complete 

SIP revision, the Administrator will record by October 1, 2012 

in each TR NOX Annual source's compliance account the TR NOX

Annual allowances allocated to the TR NOX Annual units at the 

source as provided in such approved, complete SIP revision for 

the control period in 2013.

(3) If the State submits to the Administrator by April 1, 2012, 

and the Administrator does not approve by October 1, 2012, such 

complete SIP revision, the Administrator will record by October 

1, 2012 in each TR NOX Annual source's compliance account the TR 

NOX Annual allowances allocated to the TR NOX Annual units at the 

source in accordance with §97.411(a) for the control period in 

2013.

(c) By July 1, 2013, the Administrator will record in each TR NOX

Annual source's compliance account the TR NOX Annual allowances 

allocated to the TR NOX Annual units at the source, or in each 

appropriate Allowance Management System account the TR NOX Annual 

allowances auctioned to TR NOX Annual units, in accordance with 

§97.411(a), or with a SIP revision approved under §52.38(a)(4) 

or (5) of this chapter, for the control period in 2014 and 2015.
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(d) By July 1, 2014, the Administrator will record in each TR NOX

Annual source's compliance account the TR NOX Annual allowances 

allocated to the TR NOX Annual units at the source, or in each 

appropriate Allowance Management System account the TR NOX Annual 

allowances auctioned to TR NOX Annual units, in accordance with 

§97.411(a), or with a SIP revision approved under §52.38(a)(4) 

or (5) of this chapter, for the control period in 2016 and 2017.

(e) By July 1, 2015, the Administrator will record in each TR NOX

Annual source's compliance account the TR NOX Annual allowances 

allocated to the TR NOX Annual units at the source, or in each 

appropriate Allowance Management System account the TR NOX Annual 

allowances auctioned to TR NOX Annual units, in accordance with 

§97.411(a), or with a SIP revision approved under §52.38(a)(4) 

or (5) of this chapter, for the control period in 2018 and 2019.

(f) By July 1, 2016 and July 1 of each year thereafter, the 

Administrator will record in each TR NOX Annual source's 

compliance account the TR NOX Annual allowances allocated to the 

TR NOX Annual units at the source, or in each appropriate 

Allowance Management System account the TR NOX Annual allowances

auctioned to TR NOX Annual units, in accordance with §97.411(a), 

or with a SIP revision approved under §52.38(a)(4) or (5) of 

this chapter, for the control period in the fourth year after 
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the year of the applicable recordation deadline under this 

paragraph.

(g) By August 1, 2012 and August 1 of each year thereafter, the 

Administrator will record in each TR NOX Annual source's 

compliance account the TR NOX Annual allowances allocated to the 

TR NOX Annual units at the source, or in each appropriate 

Allowance Management System account the TR NOX Annual allowances

auctioned to TR NOX Annual units, in accordance with 

§97.412(a)(2) through (8) and (12), or with a SIP revision

approved under §52.38(a)(4) or (5) of this chapter, for the 

control period in the year of the applicable recordation 

deadline under this paragraph.

(h) By August 1, 2012 and August 1 of each year thereafter, the 

Administrator will record in each TR NOX Annual source's 

compliance account the TR NOX Annual allowances allocated to the 

TR NOX Annual units at the source in accordance with 

§97.412(b)(2) through (8) and (12) for the control period in the 

year of the applicable recordation deadline under this 

paragraph.

(i) By February 15, 2013 and February 15 of each year 

thereafter, the Administrator will record in each TR NOX Annual 

source's compliance account the TR NOX Annual allowances 
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allocated to the TR NOX Annual units at the source in accordance 

with §97.412(a)(9) through (12), for the control period in the 

year before the year of the applicable recordation deadline 

under this paragraph.

(j) By the date on which any allocation or auction results, 

other than an allocation or auction results described in 

paragraphs (a) through (i) of this section, of TR NOX Annual 

allowances to a recipient is made by or are submitted to the 

Administrator in accordance with §97.411 or §97.412 or with a 

SIP revision approved under §52.38(a)(4) or (5) of this chapter, 

the Administrator will record such allocation or auction results 

in the appropriate Allowance Management System account. 

(k) When recording the allocation or auction of TR NOX Annual 

allowances to a TR NOX Annual unit or other entity in an 

Allowance Management System account, the Administrator will 

assign each TR NOX Annual allowance a unique identification 

number that will include digits identifying the year of the 

control period for which the TR NOX Annual allowance is allocated

or auctioned.

§ 97.422 Submission of TR NOX Annual allowance transfers.
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(a) An authorized account representative seeking recordation of 

a TR NOX Annual allowance transfer shall submit the transfer to 

the Administrator. 

(b) A TR NOX Annual allowance transfer shall be correctly 

submitted if: 

(1) The transfer includes the following elements, in a format 

prescribed by the Administrator:

(i) The account numbers established by the Administrator for 

both the transferor and transferee accounts;

(ii) The serial number of each TR NOX Annual allowance that is in 

the transferor account and is to be transferred; and

(iii) The name and signature of the authorized account 

representative of the transferor account and the date signed; 

and

(2) When the Administrator attempts to record the transfer, the 

transferor account includes each TR NOX Annual allowance 

identified by serial number in the transfer. 

§ 97.423 Recordation of TR NOX Annual allowance transfers.

(a) Within 5 business days (except as provided in paragraph (b) 

of this section) of receiving a TR NOX Annual allowance transfer
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that is correctly submitted under §97.422, the Administrator 

will record a TR NOX Annual allowance transfer by moving each TR 

NOX Annual allowance from the transferor account to the 

transferee account as specified in the transfer. 

(b) A TR NOX Annual allowance transfer to or from a compliance 

account that is submitted for recordation after the allowance 

transfer deadline for a control period and that includes any TR 

NOX Annual allowances allocated for any control period before 

such allowance transfer deadline will not be recorded until 

after the Administrator completes the deductions from such 

compliance account under §97.424 for the control period 

immediately before such allowance transfer deadline.

(c) Where a TR NOX Annual allowance transfer is not correctly 

submitted under §97.422, the Administrator will not record such 

transfer.

(d) Within 5 business days of recordation of a TR NOX Annual 

allowance transfer under paragraphs (a) and (b) of the section, 

the Administrator will notify the authorized account 

representatives of both the transferor and transferee accounts.

(e) Within 10 business days of receipt of a TR NOX Annual 

allowance transfer that is not correctly submitted under 
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§97.422, the Administrator will notify the authorized account 

representatives of both accounts subject to the transfer of:

(1) A decision not to record the transfer, and

(2) The reasons for such non-recordation.

§ 97.424 Compliance with TR NOX Annual emissions limitation.

(a) Availability for deduction for compliance. TR NOX Annual 

allowances are available to be deducted for compliance with a 

source's TR NOX Annual emissions limitation for a control period 

in a given year only if the TR NOX Annual allowances:

(1) Were allocated for such control period or a control period 

in a prior year; and

(2) Are held in the source’s compliance account as of the 

allowance transfer deadline for such control period. 

(b) Deductions for compliance. After the recordation, in 

accordance with §97.423, of TR NOX Annual allowance transfers 

submitted by the allowance transfer deadline for a control 

period in a given year, the Administrator will deduct from each 

source’s compliance account TR NOX Annual allowances available 

under paragraph (a) of this section in order to determine 
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whether the source meets the TR NOX Annual emissions limitation 

for such control period, as follows:

(1) Until the amount of TR NOX Annual allowances deducted equals 

the number of tons of total NOX emissions from all TR NOX Annual 

units at the source for such control period; or

(2) If there are insufficient TR NOX Annual allowances to 

complete the deductions in paragraph (b)(1) of this section, 

until no more TR NOX Annual allowances available under paragraph 

(a) of this section remain in the compliance account.

(c)(1) Identification of TR NOX Annual allowances by serial 

number. The authorized account representative for a source's 

compliance account may request that specific TR NOX Annual 

allowances, identified by serial number, in the compliance 

account be deducted for emissions or excess emissions for a 

control period in a given year in accordance with paragraph (b) 

or (d) of this section. In order to be complete, such request 

shall be submitted to the Administrator by the allowance 

transfer deadline for such control period and include, in a 

format prescribed by the Administrator, the identification of 

the TR NOX Annual source and the appropriate serial numbers.

(2) First-in, first-out. The Administrator will deduct TR NOX

Annual allowances under paragraph (b) or (d) of this section 
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from the source's compliance account in accordance with a 

complete request under paragraph (c)(1) of this section or, in 

the absence of such request or in the case of identification of 

an insufficient amount of TR NOX Annual allowances in such 

request, on a first-in, first-out accounting basis in the 

following order:

(i) Any TR NOX Annual allowances that were allocated to the units 

at the source and not transferred out of the compliance account, 

in the order of recordation; and then

(ii) Any TR NOX Annual allowances that were allocated to any unit 

and transferred to and recorded in the compliance account 

pursuant to this subpart, in the order of recordation.

(d) Deductions for excess emissions. After making the 

deductions for compliance under paragraph (b) of this section 

for a control period in a year in which the TR NOX Annual source 

has excess emissions, the Administrator will deduct from the 

source's compliance account an amount of TR NOX Annual 

allowances, allocated for a control period in a prior year or 

the control period in the year of the excess emissions or in the 

immediately following year, equal to two times the number of 

tons of the source's excess emissions.
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(e) Recordation of deductions. The Administrator will record in 

the appropriate compliance account all deductions from such an 

account under paragraphs (b) and (d) of this section.

§ 97.425 Compliance with TR NOX Annual assurance provisions.

(a) Availability for deduction. TR NOX Annual allowances are 

available to be deducted for compliance with the TR NOX Annual 

assurance provisions for a control period in a given year by the 

owners and operators of a group of one or more TR NOX Annual

sources and units in a State (and Indian country within the 

borders of such State) only if the TR NOX Annual allowances: 

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

control period in the given year or in the immediately following 

year; and

(2) Are held in the assurance account, established by the 

Administrator for such owners and operators of such group of TR 

NOX Annual sources and units in such State (and Indian country 

within the borders of such State) under paragraph (b)(3) of this 

section, as of the deadline established in paragraph (b)(4) of 

this section. 

(b) Deductions for compliance. The Administrator will deduct TR 

NOX Annual allowances available under paragraph (a) of this 
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section for compliance with the TR NOX Annual assurance 

provisions for a State for a control period in a given year in 

accordance with the following procedures:

(1) By June 1, 2013 and June 1 of each year thereafter, the 

Administrator will:

(i) Calculate, for each State (and Indian country within the 

borders of such State), the total NOX emissions from all TR NOX

Annual units at TR NOX Annual sources in the State (and Indian 

country within the borders of such State) during the control 

period in the year before the year of this calculation deadline 

and the amount, if any, by which such total NOX emissions exceed 

the State assurance level as described in §97.406(c)(2)(iii); 

and

(ii) Promulgate a notice of data availability of the results of 

the calculations required in paragraph (b)(1)(i) of this 

section, including separate calculations of the NOX emissions 

from each TR NOX Annual source. 

(2) For each notice of data availability required in paragraph 

(b)(1)(ii) of this section and for any State (and Indian country 

within the borders of such State) identified in such notice as 

having TR NOX Annual units with total NOX emissions exceeding the 
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State assurance level for a control period in a given year, as 

described in §97.406(c)(2)(iii):

(i) By July 1 immediately after the promulgation of such notice, 

the designated representative of each TR NOX Annual source in 

each such State (and Indian country within the borders of such 

State) shall submit a statement, in a format prescribed by the 

Administrator, providing for each TR NOX Annual unit (if any) at 

the source that operates during, but is not allocated an amount 

of TR NOX Annual allowances for, such control period, the unit’s 

allowable NOX emission rate for such control period and, if such 

rate is expressed in lb per mmBtu, the unit’s heat rate. 

(ii) By August 1 immediately after the promulgation of such 

notice, the Administrator will calculate, for each such State 

(and Indian country within the borders of such State) and such 

control period and each common designated representative for 

such control period for a group of one or more TR NOX Annual 

sources and units in the State (and Indian country within the 

borders of such State), the common designated representative’s 

share of the total NOX emissions from all TR NOX Annual units at 

TR NOX Annual sources in the State (and Indian country within the 

borders of such State), the common designated representative’s 

assurance level, and the amount (if any) of TR NOX Annual 

allowances that the owners and operators of such group of 
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sources and units must hold in accordance with the calculation 

formula in §97.406(c)(2)(i) and will promulgate a notice of data 

availability of the results of these calculations. 

(iii) The Administrator will provide an opportunity for 

submission of objections to the calculations referenced by the 

notice of data availability required in paragraph (b)(2)(ii) of 

this section and the calculations referenced by the relevant 

notice of data availability required in paragraph (b)(1)(i) of 

this section.

(A) Objections shall be submitted by the deadline specified in 

such notice and shall be limited to addressing whether the 

calculations referenced in the relevant notice required under 

paragraph (b)(1)(ii) of this section and referenced in the 

notice required under paragraph (b)(2)(ii) of this section are 

in accordance with §97.406(c)(2)(iii), §§97.406(b) and 97.430 

through 97.435, the definitions of “common designated 

representative”, “common designated representative’s assurance 

level”, and “common designated representative’s share” in 

§97.402, and the calculation formula in §97.406(c)(2)(i).

(B) The Administrator will adjust the calculations to the extent 

necessary to ensure that they are in accordance with the 

provisions referenced in paragraph (b)(2)(iii)(A) of this 
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section. By October 1 immediately after the promulgation of 

such notice, the Administrator will promulgate a notice of data 

availability of any adjustments that the Administrator 

determines to be necessary and the reasons for accepting or 

rejecting any objections submitted in accordance with paragraph 

(b)(2)(iii)(A) of this section.

(3) For any State (and Indian country within the borders of such 

State) referenced in each notice of data availability required 

in paragraph (b)(2)(iii)(B) of this section as having TR NOX

Annual units with total NOX emissions exceeding the State 

assurance level for a control period in a given year, the

Administrator will establish one assurance account for each set 

of owners and operators referenced, in the notice of data 

availability required under paragraph (b)(2)(iii)(B) of this 

section, as all of the owners and operators of a group of TR NOX

Annual sources and units in the State (and Indian country within 

the borders of such State) having a common designated 

representative for such control period and as being required to 

hold TR NOX Annual allowances. 

(4)(i) As of midnight of November 1 immediately after the 

promulgation of each notice of data availability required in 

paragraph (b)(2)(iii)(B) of this section, the owners and 

operators described in paragraph (b)(3) of this section shall 
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hold in the assurance account established for the them and for 

the appropriate TR NOX Annual sources, TR NOX Annual units, and 

State (and Indian country within the borders of such State) 

under paragraph (b)(3) of this section a total amount of TR NOX

Annual allowances, available for deduction under paragraph (a) 

of this section, equal to the amount such owners and operators 

are required to hold with regard to such sources, units and 

State (and Indian country within the borders of such State) as 

calculated by the Administrator and referenced in such notice. 

(ii) Notwithstanding the allowance-holding deadline specified in 

paragraph (b)(4)(i) of this section, if November 1 is not a 

business day, then such allowance-holding deadline shall be 

midnight of the first business day thereafter.

(5) After November 1 (or the date described in paragraph 

(b)(4)(ii) of this section) immediately after the promulgation 

of each notice of data availability required in paragraph 

(b)(2)(iii)(B) of this section and after the recordation, in 

accordance with §97.423, of TR NOX Annual allowance transfers 

submitted by midnight of such date, the Administrator will 

determine whether the owners and operators described in 

paragraph (b)(3) of this section hold, in the assurance account 

for the appropriate TR NOX Annual sources, TR NOX Annual units, 

and State (and Indian country within the borders of such State) 
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established under paragraph (b)(3) of this section, the amount 

of TR NOX Annual allowances available under paragraph (a) of this 

section that the owners and operators are required to hold with 

regard to such sources, units, and State (and Indian country 

within the borders of such State) as calculated by the 

Administrator and referenced in the notice required in paragraph 

(b)(2)(iii)(B) of this section.

(6) Notwithstanding any other provision of this subpart and any 

revision, made by or submitted to the Administrator after the 

promulgation of the notice of data availability required in 

paragraph (b)(2)(iii)(B) of this section for a control period in 

a given year, of any data used in making the calculations 

referenced in such notice, the amounts of TR NOX Annual 

allowances that the owners and operators are required to hold in 

accordance with §97.406(c)(2)(i) for such control period shall 

continue to be such amounts as calculated by the Administrator 

and referenced in such notice required in paragraph 

(b)(2)(iii)(B) of this section, except as follows:

(i) If any such data are revised by the Administrator as a 

result of a decision in or settlement of litigation concerning 

such data on appeal under part 78 of this chapter of such 

notice, or on appeal under section 307 of the Clean Air Act of a 

decision rendered under part 78 of this chapter on appeal of 
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such notice, then the Administrator will use the data as so 

revised to recalculate the amounts of TR NOX Annual allowances 

that owners and operators are required to hold in accordance 

with the calculation formula in §97.406(c)(2)(i) for such 

control period with regard to the TR NOX Annual sources, TR NOX

Annual units, and State (and Indian country within the borders 

of such State) involved, provided that such litigation under 

part 78 of this chapter, or the proceeding under part 78 of this 

chapter that resulted in the decision appealed in such 

litigation under section 307 of the Clean Air Act, was initiated 

no later than 30 days after promulgation of such notice required 

in paragraph (b)(2)(iii)(B) of this section.

(ii) If any such data are revised by the owners and operators of 

a TR NOX Annual source and TR NOX Annual unit whose designated 

representative submitted such data under paragraph (b)(2)(i) of 

this section, as a result of a decision in or settlement of 

litigation concerning such submission, then the Administrator 

will use the data as so revised to recalculate the amounts of TR 

NOX Annual allowances that owners and operators are required to 

hold in accordance with the calculation formula in 

§97.406(c)(2)(i) for such control period with regard to the TR 

NOX Annual sources, TR NOX Annual units, and State (and Indian 

country within the borders of such State) involved, provided 
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that such litigation was initiated no later than 30 days after 

promulgation of such notice required in paragraph (b)(2)(iii)(B) 

of this section.

(iii) If the revised data are used to recalculate, in accordance 

with paragraphs (b)(6)(i) and (ii) of this section, the amount 

of TR NOX Annual allowances that the owners and operators are

required to hold for such control period with regard to the TR 

NOX Annual sources, TR NOX Annual units, and State (and Indian 

country within the borders of such State) involved—

(A) Where the amount of TR NOX Annual allowances that the owners 

and operators are required to hold increases as a result of the 

use of all such revised data, the Administrator will establish a 

new, reasonable deadline on which the owners and operators shall 

hold the additional amount of TR NOX Annual allowances in the 

assurance account established by the Administrator for the 

appropriate TR NOX Annual sources, TR NOX Annual units, and State 

(and Indian country within the borders of such State) under

paragraph (b)(3) of this section. The owners’ and operators’ 

failure to hold such additional amount, as required, before the 

new deadline shall not be a violation of the Clean Air Act. The 

owners’ and operators’ failure to hold such additional amount, 

as required, as of the new deadline shall be a violation of the 

Clean Air Act. Each TR NOX Annual allowance that the owners and 
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operators fail to hold as required as of the new deadline, and 

each day in such control period, shall be a separate violation 

of the Clean Air Act. 

(B) For the owners and operators for which the amount of TR NOX

Annual allowances required to be held decreases as a result of 

the use of all such revised data, the Administrator will record, 

in all accounts from which TR NOX Annual allowances were 

transferred by such owners and operators for such control period 

to the assurance account established by the Administrator for 

the appropriate at TR NOX Annual sources, TR NOX Annual units, 

and State (and Indian country within the borders of such State) 

under paragraph (b)(3) of this section, a total amount of the TR 

NOX Annual allowances held in such assurance account equal to the 

amount of the decrease. If TR NOX Annual allowances were 

transferred to such assurance account from more than one 

account, the amount of TR NOX Annual allowances recorded in each 

such transferor account will be in proportion to the percentage 

of the total amount of TR NOX Annual allowances transferred to 

such assurance account for such control period from such 

transferor account. 

(C) Each TR NOX Annual allowance held under paragraph 

(b)(6)(iii)(A) of this section as a result of recalculation of 

requirements under the TR NOX Annual assurance provisions for 
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such control period must be a TR NOX Annual allowance allocated 

for a control period in a year before or the year immediately 

following, or in the same year as, the year of such control 

period. 

§ 97.426 Banking.

(a) A TR NOX Annual allowance 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 TR NOX Annual allowance that is held in a compliance 

account or a general account will remain in such account unless 

and until the TR NOX Annual allowance is deducted or transferred 

under §97.411(c), §97.423, §97.424, §97.425, 97.427, or 97.428.

§ 97.427 Account error.

The Administrator may, at his or her sole discretion and on his 

or her own motion, correct any error in any Allowance Management 

System account. Within 10 business days of making such 

correction, the Administrator will notify the authorized account 

representative for the account.

§ 97.428 Administrator’s action on submissions.
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(a) The Administrator may review and conduct independent audits 

concerning any submission under the TR NOX Annual Trading Program 

and make appropriate adjustments of the information in the 

submission.

(b) The Administrator may deduct TR NOX Annual allowances from or 

transfer TR NOX Annual allowances to a compliance account or an 

assurance account, based on the information in a submission, as 

adjusted under paragraph (a)(1) of this section, and record such 

deductions and transfers.

§ 97.429 [RESERVED]

§ 97.430 General monitoring, recordkeeping, and reporting 

requirements.

The owners and operators, and to the extent applicable, the 

designated representative, of a TR NOX Annual unit, shall comply 

with the monitoring, recordkeeping, and reporting requirements 

as provided in this subpart and subpart H of part 75 of this 

chapter. For purposes of applying such requirements, the 

definitions in §97.402 and in §72.2 of this chapter shall apply, 

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 “TR NOX

Annual unit,“ “designated representative,” and “continuous 
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emission monitoring system” (or “CEMS”) respectively as defined 

in §97.402, and the term “newly affected unit” shall be deemed 

to mean “newly affected TR NOX Annual unit”. The owner or 

operator of a unit that is not a TR NOX Annual 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 TR NOX Annual unit.

(a) Requirements for installation, certification, and data 

accounting. The owner or operator of each TR NOX Annual unit 

shall:

(1) Install all monitoring systems required under this subpart 

for monitoring NOX mass emissions and individual unit heat input 

(including all systems required to monitor NOX emission rate, NOX

concentration, stack gas moisture content, stack gas flow rate, 

CO2 or O2 concentration, and fuel flow rate, as applicable, in 

accordance with §§75.71 and 75.72 of this chapter);

(2) Successfully complete all certification tests required under 

§97.431 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.
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(b) Compliance deadlines. Except as provided in paragraph (e) 

of this section, the owner or operator shall meet the monitoring 

system certification and other requirements of paragraphs (a)(1) 

and (2) of this section on or before the following dates and 

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 TR NOX Annual unit that 

commences commercial operation before July 1, 2011, January 1, 

2012; 

(2) For the owner or operator of a TR NOX Annual unit that 

commences commercial operation on or after July 1, 2011, the 

later of the following:

(i) January 1, 2012; or

(ii) 180 calendar days after the date on which the unit 

commences commercial operation; 

(3) The owner or operator of a TR NOX Annual 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) or (2) of this section shall meet the 
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requirements of §§75.4(e)(1) through (e)(4) of this chapter, 

except that:

(i) Such requirements shall apply to the monitoring systems 

required under §97.430 through §97.435, rather than the 

monitoring systems required under part 75 of this chapter;

(ii) NOX emission rate, NOX concentration, stack gas moisture 

content, stack gas volumetric flow rate, and O2 or CO2

concentration data shall be determined and reported, rather than 

the data listed in §75.4(e)(2) of this chapter; and

(iii) Any petition for another procedure under §75.4(e)(2) of 

this chapter shall be submitted under §97.435, rather than 

§75.66.

(c) Reporting data. The owner or operator of a TR NOX Annual 

unit that does not meet the applicable compliance date set forth 

in paragraph (b) of this section for any monitoring system under 

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

system, determine, record, and report maximum potential (or, as 

appropriate, minimum potential) values for NOX concentration, NOX

emission rate, stack gas flow rate, stack gas moisture content, 

fuel flow rate, and any other parameters required to determine 

NOX mass emissions and heat input in accordance with §75.31(b)(2) 

or (c)(3) of this chapter, section 2.4 of appendix D to part 75 
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of this chapter, or section 2.5 of appendix E to part 75 of this 

chapter, as applicable.

(d) Prohibitions. (1) No owner or operator of a TR NOX Annual 

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 §97.435.

(2) No owner or operator of a TR NOX Annual unit shall operate 

the unit so as to discharge, or allow to be discharged, NOX to 

the atmosphere without accounting for all such NOX in accordance 

with the applicable provisions of this subpart and part 75 of 

this chapter.

(3) No owner or operator of a TR NOX Annual 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 discharged into the 

atmosphere or heat input, except for periods of recertification

or periods when calibration, quality assurance testing, or 

maintenance is performed in accordance with the applicable 

provisions of this subpart and part 75 of this chapter.

(4) No owner or operator of a TR NOX Annual unit shall retire or 

permanently discontinue use of the continuous emission 
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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 §97.405 that is in effect;

(ii) The owner or operator is monitoring emissions from the unit 

with another certified monitoring system approved, in accordance 

with the applicable provisions of this subpart and part 75 of 

this chapter, by the Administrator for use at that unit that 

provides emission data for the same pollutant or parameter as 

the retired or discontinued monitoring system; or

(iii) The 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 §97.431(d)(3)(i).

(e) Long-term cold storage. The owner or operator of a TR NOX

Annual unit is subject to the applicable provisions of §75.4(d) 

of this chapter concerning units in long-term cold storage.

§ 97.431 Initial monitoring system certification and 

recertification procedures.
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(a) The owner or operator of a TR NOX Annual unit shall be exempt 

from the initial certification requirements of this section for 

a monitoring system under §97.430(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 appendices B, D, and 

E to part 75 of this chapter are fully met for the certified 

monitoring system described in paragraph (a)(1) of this section.

(b) The recertification provisions of this section shall apply 

to a monitoring system under §97.430(a)(1) that is 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 or §75.17 of this chapter, the designated representative 

shall resubmit the petition to the Administrator under §97.435 

to determine whether the approval applies under the TR NOX Annual 

Trading Program.
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(d) Except as provided in paragraph (a) of this section, the 

owner or operator of a TR NOX Annual 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 

§97.430(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 §97.430(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 §97.430(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.
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(2) Requirements for recertification. Whenever the owner or 

operator makes a replacement, modification, or change in any 

certified continuous emission monitoring system under 

§97.430(a)(1) that may significantly affect the ability of the 

system to accurately measure or record NOX mass emissions or heat 

input rate or to meet the quality-assurance and quality-control 

requirements of §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, and any excepted NOX monitoring system under appendix E 

to part 75 of this chapter, under §97.430(a)(1) are subject to 

the recertification requirements in §75.20(g)(6) of this 

chapter.
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(3) Approval process for initial certification and 

recertification. For initial certification of a continuous 

monitoring system under §97.430(a)(1), paragraphs (d)(3)(i) 

through (v) of this section apply. For recertifications of such 

monitoring systems, paragraphs (d)(3)(i) through (iv) of this 

section and 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) apply, provided that in applying paragraphs 

(d)(3)(i) through (iv) of this section, the words 

“certification” and “initial certification” are replaced by the 

word “recertification” and the word “certified” is replaced by 

with the word “recertified”. 

(i) Notification of certification. The designated 

representative shall submit to the appropriate EPA Regional 

Office and the Administrator written notice of the dates of 

certification testing, in accordance with §97.433.

(ii) Certification application. The designated representative 

shall submit to the Administrator a certification application 

for each monitoring system. A complete certification application 

shall include the information specified in §75.63 of this 

chapter.
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(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 

TR NOX Annual Trading Program for a period not to exceed 120 days 

after receipt by the Administrator of the complete certification 

application for the monitoring system under paragraph (d)(3)(ii) 

of this section. Data measured and recorded by the 

provisionally certified monitoring system, in accordance with 

the requirements of part 75 of this chapter, will be considered 

valid quality-assured data (retroactive to the date and time of 

provisional certification), provided that the Administrator does 

not invalidate the provisional certification by issuing a notice 

of disapproval within 120 days of the date of receipt of the 

complete certification application by the Administrator.

(iv) Certification application approval process. The 

Administrator will issue a written notice of approval or 

disapproval of the certification application to the owner or 

operator within 120 days of receipt of the complete 

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

section. In the event the Administrator does not issue such a 

notice within such 120-day period, each monitoring system that 

meets the applicable performance requirements of part 75 of this 
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chapter and is included in the certification application will be 

deemed certified for use under the TR NOX Annual Trading Program.

(A) Approval notice. If the certification application is 

complete and shows that each monitoring system meets the 

applicable performance requirements of part 75 of this chapter, 

then the Administrator will issue a written notice of approval 

of the certification application within 120 days of receipt.

(B) Incomplete application notice. If the certification 

application is not complete, then the Administrator will issue a 

written notice of incompleteness that sets a reasonable date by 

which the designated representative must submit the additional 

information required to complete the certification application.

If the designated representative does not comply with the notice 

of incompleteness by the specified date, then the Administrator 

may issue a notice of disapproval under paragraph (d)(3)(iv)(C) 

of this section. 

(C) Disapproval notice. If the certification application shows 

that any monitoring system does not meet the performance 

requirements of part 75 of this chapter or if the certification 

application is incomplete and the requirement for disapproval 

under paragraph (d)(3)(iv)(B) of this section is met, then the 

Administrator will issue a written notice of disapproval of the 
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certification application. Upon issuance of such notice of 

disapproval, the provisional certification is invalidated by the 

Administrator and the data measured and recorded by each 

uncertified monitoring system shall not be considered valid 

quality-assured data beginning with the date and hour of 

provisional certification (as defined under §75.20(a)(3) of this 

chapter). 

(D) Audit decertification. The Administrator may issue a notice 

of disapproval of the certification status of a monitor in 

accordance with §97.432(b).

(v) Procedures for loss of certification. If the Administrator 

issues a notice of disapproval of a certification application 

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

disapproval of certification status under paragraph 

(d)(3)(iv)(D) of this section, then:

(A) The owner or operator shall substitute the following values, 

for each disapproved monitoring system, for each hour of unit 

operation during the period of invalid data specified under 

§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:
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(1) For a disapproved NOX emission rate (i.e., NOX-diluent) 

system, the maximum potential NOX emission rate, as defined in 

§72.2 of this chapter.

(2) For a disapproved NOX pollutant concentration monitor and 

disapproved flow monitor, respectively, the maximum potential 

concentration of NOX and the maximum potential flow rate, as 

defined in sections 2.1.2.1 and 2.1.4.1 of appendix A to part 75 

of this chapter.

(3) For a disapproved moisture monitoring system and disapproved 

diluent gas monitoring system, respectively, the minimum 

potential moisture percentage and either the maximum potential 

CO2 concentration or the minimum potential O2 concentration (as 

applicable), as defined in sections 2.1.5, 2.1.3.1, and 2.1.3.2 

of appendix A to part 75 of this chapter.

(4) For a disapproved fuel flowmeter system, the maximum 

potential fuel flow rate, as defined in section 2.4.2.1 of 

appendix D to part 75 of this chapter.

(5) For a disapproved excepted NOX monitoring system under 

appendix E to part 75 of this chapter, the fuel-specific maximum 

potential NOX emission rate, as defined in §72.2 of this chapter.
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(B) The designated representative shall submit a notification of 

certification retest dates and a new certification application 

in accordance with paragraphs (d)(3)(i) and (ii) of this 

section.

(C) The owner or operator shall repeat all certification tests 

or other requirements that were failed by the monitoring system, 

as indicated in the Administrator's notice of disapproval, no 

later than 30 unit operating days after the date of issuance of 

the notice of disapproval.

(e) 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.

(f) The designated representative of each unit for which the 

owner or operator intends to use an alternative monitoring 

system approved by the Administrator under subpart E of part 75 

of this chapter shall comply with the applicable notification 

and application procedures of §75.20(f) of this chapter.
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§ 97.432 Monitoring system out-of-control periods.

(a) General provisions. Whenever any monitoring system fails to 

meet the quality-assurance and quality-control requirements or 

data validation requirements of part 75 of this chapter, data 

shall be substituted using the applicable missing data 

procedures in subpart D or subpart H of, or appendix D or 

appendix E to, part 75 of this chapter.

(b) Audit decertification. Whenever both an audit of a 

monitoring system and a review of the initial certification or 

recertification application reveal that any monitoring system 

should not have been certified or recertified because it did not 

meet a particular performance specification or other requirement 

under §97.431 or the applicable provisions of part 75 of this 

chapter, both at the time of the initial certification or 

recertification application submission and at the time of the 

audit, the Administrator will issue a notice of disapproval of 

the certification status of such monitoring system. For the 

purposes of this paragraph, an audit shall be either a field 

audit or an audit of any information submitted to the 

Administrator or any State or permitting authority. By issuing 

the notice of disapproval, the Administrator revokes 

prospectively the certification status of the monitoring system.

The data measured and recorded by the monitoring system shall 
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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 §97.431 for each disapproved monitoring system.

§ 97.433 Notifications concerning monitoring.

The designated representative of a TR NOX Annual unit shall 

submit written notice to the Administrator in accordance with 

§75.61 of this chapter.

§ 97.434 Recordkeeping and reporting.

(a) General provisions. The designated representative shall 

comply with all recordkeeping and reporting requirements in 

paragraphs (b) through (e) of this section, the applicable 

recordkeeping and reporting requirements under §75.73 of this 

chapter, and the requirements of §97.414(a).

(b) Monitoring plans. The owner or operator of a TR NOX Annual 

unit shall comply with requirements of §75.73(c) and (e) of this 

chapter.
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(c) Certification applications. The designated representative 

shall submit an application to the Administrator within 45 days 

after completing all initial certification or recertification 

tests required under §97.431, including the information required 

under §75.63 of this chapter.

(d) Quarterly reports. The designated representative shall 

submit quarterly reports, as follows:

(1) The designated representative shall report the NOX mass 

emissions data and heat input data for the TR NOX Annual 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, 2011, the calendar quarter covering January 1, 2012 through 

March 31, 2012; or

(ii) For a unit that commences commercial operation on or after 

July 1, 2011, the calendar quarter corresponding to the earlier 

of the date of provisional certification or the applicable 

deadline for initial certification under §97.430(b), unless that 

quarter is the third or fourth quarter of 2011, in which case 

reporting shall commence in the quarter covering January 1, 2012 

through March 31, 2012.
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(2) The designated representative shall submit each quarterly 

report to the Administrator within 30 days after 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 TR NOX Annual units that are also subject to the Acid 

Rain Program, TR NOX Ozone Season Trading Program, TR SO2 Group 1 

Trading Program, or TR SO2 Group 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.

(4) The Administrator may review and conduct independent audits 

of any quarterly report in order to determine whether the 

quarterly report meets the requirements of this subpart and part 

75 of this chapter, including the requirement to use substitute 

data. 

(i) The Administrator will notify the designated representative 

of any determination that the quarterly report fails to meet any 

such requirements and specify in such notification any 

corrections that the Administrator believes are necessary to 

make through resubmission of the quarterly report and a 
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reasonable time period within which the designated 

representative must respond. Upon request by the designated 

representative, the Administrator may specify reasonable 

extensions of such time period. Within the time period 

(including any such extensions) specified by the Administrator, 

the designated representative shall resubmit the quarterly 

report with the corrections specified by the Administrator, 

except to the extent the designated representative provides 

information demonstrating that a specified correction is not 

necessary because the quarterly report already meets the 

requirements of this subpart and part 75 of this chapter that 

are relevant to the specified correction.

(ii) Any resubmission of a quarterly report shall meet the 

requirements applicable to the submission of a quarterly report 

under this subpart and part 75 of this chapter, except for the 

deadline set forth in paragraph (d)(2) of this section.

(e) Compliance certification. The 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:
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(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 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.

§ 97.435 Petitions for alternatives to monitoring, 

recordkeeping, or reporting requirements.

(a) The designated representative of a TR NOX Annual unit may 

submit a petition under §75.66 of this chapter to the 

Administrator, requesting approval to apply an alternative to 

any requirement of §§97.430 through 97.434. 

(b) A petition submitted under paragraph (a) of this section 

shall include sufficient information for the evaluation of the 

petition, including, at a minimum, the following information:
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(i) Identification of each unit and source covered by the 

petition;

(ii) A detailed explanation of why the proposed alternative is 

being suggested in lieu of the requirement;

(iii) A description and diagram of any equipment and procedures 

used in the proposed alternative;

(iv) A demonstration that the proposed alternative is consistent 

with the purposes of the requirement for which the alternative 

is proposed and with the purposes of this subpart and part 75 of 

this chapter and that any adverse effect of approving the 

alternative will be de minimis; and

(v) Any other relevant information that the Administrator may 

require. 

(c) Use of an alternative to any requirement referenced in 

paragraph (a) of this section is in accordance with this subpart 

only to the extent that the petition is approved in writing by 

the Administrator and that such use is in accordance with such 

approval.

75. Part 97 is amended by adding subpart BBBBB to read as 

follows:
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Subpart BBBBB—TR NOX Ozone Season Trading Program 

97.501 Purpose.

97.502 Definitions.

97.503 Measurements, abbreviations, and acronyms.

97.504 Applicability.

97.505 Retired unit exemption.

97.506 Standard requirements.

97.507 Computation of time.

97.508 Administrative appeal procedures.

97.509 [Reserved]

97.510 State NOX Ozone Season trading budgets, new unit setasides, Indian country new unit set-asides and variability 

limits.

97.511 Timing requirements for TR NOX Ozone Season allowance 

allocations.

97.512 TR NOX Ozone Season allowance allocations to new units.

97.513 Authorization of designated representative and alternate 

designated representative.
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97.514 Responsibilities of designated representative and 

alternate designated representative.

97.515 Changing designated representative and alternate 

designated representative; changes in owners and operators.

97.516 Certificate of representation.

97.517 Objections concerning designated representative and 

alternate designated representative.

97.518 Delegation by designated representative and alternate 

designated representative.

97.519 [Reserved]

97.520 Establishment of compliance accounts and general 

accounts.

97.521 Recordation of TR NOX Ozone Season allowance allocations.

97.522 Submission of TR NOX Ozone Season allowance transfers.

97.523 Recordation of TR NOX Ozone Season allowance transfers.

97.524 Compliance with TR NOX Ozone Season emissions limitation.

97.525 Compliance with TR NOX Ozone Season assurance provisions.

97.526 Banking.
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97.527 Account error.

97.528 Administrator’s action on submissions.

97.529 [RESERVED]

97.530 General monitoring, recordkeeping, and reporting 

requirements.

97.531 Initial monitoring system certification and 

recertification procedures.

97.532 Monitoring system out-of-control periods.

97.533 Notifications concerning monitoring.

97.534 Recordkeeping and reporting.

97.535 Petitions for alternatives to monitoring, recordkeeping, 

or reporting requirements.

Subpart BBBBB—TR NOX Ozone Season Trading Program 

§ 97.501 Purpose.

This subpart sets forth the general, designated representative, 

allowance, and monitoring provisions for the Transport Rule (TR) 

NOX Ozone Season Trading Program, under section 110 of the Clean 

Air Act and §52.38 of this chapter, as a means of mitigating 

interstate transport of ozone and nitrogen oxides.
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§ 97.502 Definitions.

The terms used in this subpart shall have the meanings set forth 

in this section as follows:

Acid Rain Program means a multi-state SO2 and NOX air pollution 

control and emission reduction program established by the 

Administrator under title IV of the Clean Air Act and parts 72 

through 78 of this chapter.

Administrator means the Administrator of the United States 

Environmental Protection Agency or the Director of the Clean Air 

Markets Division (or its successor determined by the 

Administrator) of the United States Environmental Protection 

Agency, the Administrator's duly authorized representative under 

this subpart.

Allocate or allocation means, with regard to TR NOX Ozone Season

allowances, the determination by the Administrator, State, or 

permitting authority, in accordance with this subpart and any 

SIP revision submitted by the State and approved by the 

Administrator under §52.38(b)(3), (4), or (5) of this chapter,

of the amount of such TR NOX Ozone Season allowances to be 

initially credited, at no cost to the recipient, to:

(1) A TR NOX Ozone Season unit;
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(2) A new unit set-aside;

(3) An Indian country new unit set-aside; or

(4) An entity not listed in paragraphs (1) through (3) of this 

definition;

(5) Provided that, if the Administrator, State, or permitting 

authority initially credits, to a TR NOX Ozone Season unit 

qualifying for an initial credit, a credit in the amount of zero 

TR NOX Ozone Season allowances, the TR NOX Ozone Season unit will 

be treated as being allocated an amount (i.e., zero) of TR NOX

Ozone Season allowances. 

Allowable NOX emission rate means, for a unit, the most stringent 

State or federal NOX emission rate limit (in lb/MWhr or, if in 

lb/mmBtu, converted to lb/MWhr by multiplying it by the unit’s 

heat rate in mmBtu/MWhr) that is applicable to the unit and 

covers the longest averaging period not exceeding one year. 

Allowance Management System means the system by which the 

Administrator records allocations, deductions, and transfers of 

TR NOX Ozone Season allowances under the TR NOX Ozone Season

Trading Program. Such allowances are allocated, recorded, held, 

deducted, or transferred only as whole allowances. 
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Allowance Management System account means an account in the 

Allowance Management System established by the Administrator for 

purposes of recording the allocation, holding, transfer, or 

deduction of TR NOX Ozone Season allowances.

Allowance transfer deadline means, for a control period in a 

given year, midnight of December 1 (if it is a business day), or 

midnight of the first business day thereafter (if December 1 is 

not a business day), immediately after such control period and 

is the deadline by which a TR NOX Ozone Season allowance transfer 

must be submitted for recordation in a TR NOX Ozone Season

source's compliance account in order to be available for use in 

complying with the source's TR NOX Ozone Season emissions 

limitation for such control period in accordance with §§97.506 

and 97.524.

Alternate designated representative means, for a TR NOX Ozone 

Season source and each TR 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 this subpart, to act on behalf of the designated 

representative in matters pertaining to the TR NOX Ozone Season

Trading Program. If the TR NOX Ozone Season source is also 

subject to the Acid Rain Program, TR NOX Annual Trading Program, 

TR SO2 Group 1 Trading Program, or TR SO2 Group 2 Trading Program, 
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then this natural person shall be the same natural person as the 

alternate designated representative, as defined in the 

respective program. 

Assurance account means an Allowance Management System account, 

established by the Administrator under §97.525(b)(3) for certain 

owners and operators of a group of one or more TR NOX Ozone 

Season sources and units in a given State (and Indian country 

within the borders of such State), in which are held TR NOX Ozone 

Season allowances available for use for a control period in a 

given year in complying with the TR NOX Ozone Season assurance 

provisions in accordance with §§97.506 and 97.525. 

Authorized account representative means, for a general account, 

the natural person who is authorized, in accordance with this 

subpart, to transfer and otherwise dispose of TR NOX Ozone Season

allowances held in the general account and, for a TR NOX Ozone 

Season source’s compliance account, the designated 

representative of the source.

Automated data acquisition and handling system or DAHS means the 

component of the continuous emission monitoring system, or other 

emissions monitoring system approved for use under this subpart, 

designed to interpret and convert individual output signals from 

pollutant concentration monitors, flow monitors, diluent gas 
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monitors, and other component parts of the monitoring system to 

produce a continuous record of the measured parameters in the 

measurement units required by this subpart. 

Biomass means—

(1) Any organic material grown for the purpose of being 

converted to energy;

(2) Any organic byproduct of agriculture that can be converted 

into energy; or

(3) Any material that can be converted into energy and is 

nonmerchantable for other purposes, that is segregated from 

other material that is nonmerchantable for other purposes, and 

that is;

(i) A forest-related organic resource, including mill residues, 

precommercial thinnings, slash, brush, or byproduct from 

conversion of trees to merchantable material; or

(ii) A wood material, including pallets, crates, dunnage, 

manufacturing and construction materials (other than pressuretreated, chemically-treated, or painted wood products), and 

landscape or right-of-way tree trimmings.
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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 unit means a unit in which the energy input to 

the unit is first used to produce useful thermal energy, where 

at least some of the reject heat from the useful thermal energy 

application or process is then used for electricity production.

Business day means a day that does not fall on a weekend or a 

federal holiday.

Certifying official means a natural person who is:

(1) For a corporation, a president, secretary, treasurer, or 

vice-president of the corporation in charge of a principal 

business function or any other person who performs similar 

policy- or decision-making functions for the corporation;

(2) For a partnership or sole proprietorship, a general partner 

or the proprietor respectively; or

(3) For a local government entity or State, federal, or other 

public agency, a principal executive officer or ranking elected 

official.

Clean Air Act means the Clean Air Act, 42 U.S.C. 7401, et seq.
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Coal means “coal” as defined in §72.2 of this chapter.

Coal-derived fuel means any fuel (whether in a solid, liquid, or 

gaseous state) produced by the mechanical, thermal, or chemical 

processing of coal.

Cogeneration system means an integrated group, at a source, of 

equipment (including a boiler, or combustion turbine, and a 

steam turbine generator) designed to produce useful thermal 

energy for industrial, commercial, heating, or cooling purposes 

and electricity through the sequential use of energy. 

Cogeneration unit means a stationary, fossil-fuel-fired boiler 

or stationary, fossil-fuel-fired combustion turbine that is a 

topping-cycle unit or a bottoming-cycle unit:

(1) Operating as part of a cogeneration system; and

(2) Producing on an annual average basis—

(i) For a topping-cycle 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 than 42.5 percent of total energy 

input, if useful thermal energy produced is 15 percent or more 
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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 unit, useful power not less than 45 

percent of total energy input;

(3) Provided that the requirements in paragraph (2) of this 

definition shall not apply to a calendar year referenced in 

paragraph (2) of this definition during which the unit did not 

operate at all;

(4) Provided that the total energy input under paragraphs 

(2)(i)(B) and (2)(ii) of this definition shall equal the unit's 

total energy input from all fuel, except biomass if the unit is 

a boiler; and

(5) Provided that, if, throughout its operation during the 12-

month period or a calendar year referenced in paragraph (2) of 

this definition, a unit is operated as part of a cogeneration 

system and the cogeneration system meets on a system-wide basis 

the requirement in paragraph (2)(i)(B) or (2)(ii) of this 

definition, the unit shall be deemed to meet such requirement 

during that 12-month period or calendar year. 

Combustion turbine means an enclosed device comprising:
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(1) If the device is simple cycle, 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 device is combined cycle, the equipment described in 

paragraph (1) of this definition and any associated duct burner, 

heat recovery steam generator, and steam turbine.

Commence commercial operation means, with regard to a unit:

(1) To have begun to produce steam, gas, or other heated medium 

used to generate electricity for sale or use, including test 

generation, except as provided in §97.505.

(i) For a unit that is a TR NOX Ozone Season unit under §97.504 

on the later of January 1, 2005 or the date the unit commences 

commercial operation as defined in the introductory text of 

paragraph (1) of this definition and that subsequently undergoes 

a physical change or is moved to a new location or source, such 

date shall remain the date of commencement of commercial 

operation of the unit, which shall continue to be treated as the 

same unit.

(ii) For a unit that is a TR NOX Ozone Season unit under §97.504 

on the later of January 1, 2005 or the date the unit commences 
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commercial operation as defined in the introductory text of 

paragraph (1) of this definition and that is subsequently 

replaced by a unit at the same or a different source, such date 

shall remain the replaced unit's date of commencement of 

commercial operation, and the replacement unit shall be treated 

as a separate unit with a separate date for commencement of 

commercial operation as defined in paragraph (1) or (2) of this 

definition as appropriate.

(2) Notwithstanding paragraph (1) of this definition and except 

as provided in §97.505, for a unit that is not a TR NOX Ozone 

Season unit under §97.504 on the later of January 1, 2005 or the 

date the unit commences commercial operation as defined in 

introductory text of paragraph (1) of this definition, the 

unit's date for commencement of commercial operation shall be 

the date on which the unit becomes a TR NOX Ozone Season unit 

under §97.504.

(i) For a unit with a date for commencement of commercial 

operation as defined in the introductory text of paragraph (2) 

of this definition and that subsequently undergoes a physical 

change or is moved to a different location or source, such date 

shall remain the date of commencement of commercial operation of 

the unit, which shall continue to be treated as the same unit.
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(ii) For a unit with a date for commencement of commercial 

operation as defined in the introductory text of paragraph (2) 

of this definition and that is subsequently replaced by a unit 

at the same or a different source, such date shall remain the 

replaced unit's date of commencement of commercial operation, 

and the replacement unit shall be treated as a separate unit 

with a separate date for commencement of commercial operation as 

defined in paragraph (1) or (2) of this definition as 

appropriate.

Common designated representative means, with regard to a control 

period in a given year, a designated representative where, as of 

April 1 immediately after the allowance transfer deadline for 

such control period, the same natural person is authorized under 

§§97.513(a) and 97.515(a) as the designated representative for a 

group of one or more TR NOX Ozone Season sources and units 

located in a State (and Indian country within the borders of 

such State).

Common designated representative’s assurance level means, with

regard to a specific common designated representative and a 

State (and Indian country within the borders of such State) and 

control period in a given year for which the State assurance 

level is exceeded as described in §97.506(c)(2)(iii), the common 

designated representative’s share of the State NOX Ozone Season
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trading budget with the variability limit for the State for such 

control period. 

Common designated representative’s share means, with regard to a 

specific common designated representative for a control period 

in a given year:

(1) With regard to a total amount of NOX emissions from all TR 

NOX Ozone Season units in a State (and Indian country within the 

borders of such State) during such control period, the total 

tonnage of NOX emissions during such control period from a group 

of one or more TR NOX Ozone Season units located in such State

(and such Indian country) and having the common designated 

representative for such control period; 

(2) With regard to a State NOX Ozone Season trading budget for 

such control period, the amount (rounded to the nearest 

allowance) equal to the sum of the total amount of TR NOX Ozone 

Season allowances allocated for such control period to a group 

of one or more TR NOX Ozone Season units located in the State

(and Indian country within the borders of such State) and having 

the common designated representative for such control period and 

of the total amount of TR NOX Ozone Season allowances purchased 

by an owner or operator of such TR NOX Ozone Season units in an 

auction for such control period and submitted by the State or 
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the permitting authority to the Administrator for recordation in 

the compliance accounts for such TR NOX Ozone Season units in 

accordance with the TR NOX Ozone Season allowance auction 

provisions in a SIP revision approved by the Administrator under

§52.38(b)(4) or (5) of this chapter, multiplied by the sum of 

the State NOX Ozone Season trading budget under §97.510(a) and 

the State’s variability limit under §97.510(b) for such control 

period and divided by such State NOX Ozone Season trading budget; 

(3) Provided that, in the case of a unit that operates during, 

but has no amount of TR NOX Ozone Season allowances allocated 

under §§97.511 and 97.512 for, such control period, the unit 

shall be treated, solely for purposes of this definition, as 

being allocated an amount (rounded to the nearest allowance) of 

TR NOX Ozone Season allowances for such control period equal to 

the unit’s allowable NOX emission rate applicable to such control 

period, multiplied by a capacity factor of 0.92 (if the unit is 

a boiler combusting any amount of coal or coal-derived fuel 

during such control period), 0.32 (if the unit is a simple 

combustion turbine during such control period), 0.71 (if the 

unit is a combined cycle turbine during such control period), 

0.73 (if the unit is an integrated coal gasification combined 

cycle unit during such control period), or 0.44 (for any other 

unit), multiplied by the unit’s maximum hourly load as reported 
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in accordance with this subpart and by 3,672 hours/control 

period, and divided by 2,000 lb/ton. 

Common stack means a single flue through which emissions from 2 

or more units are exhausted.

Compliance account means an Allowance Management System account, 

established by the Administrator for a TR NOX Ozone Season source 

under this subpart, in which any TR NOX Ozone Season allowance 

allocations to the TR NOX Ozone Season units at the source are 

recorded and in which are held any TR NOX Ozone Season allowances 

available for use for a control period in a given year in 

complying with the source's TR NOX Ozone Season emissions 

limitation in accordance with §§97.506 and 97.524. 

Continuous emission monitoring system or CEMS means the 

equipment required under this subpart to sample, analyze, 

measure, and provide, by means of readings recorded at least 

once every 15 minutes and using an automated data acquisition 

and handling system (DAHS), a permanent record of NOX emissions, 

stack gas volumetric flow rate, stack gas moisture content, and 

O2 or CO2 concentration (as applicable), in a manner consistent 

with part 75 of this chapter and §§97.530 through 97.535. The 

following systems are the principal types of continuous emission 

monitoring systems:
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(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 NOX 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 NOX emission rate (or NOX-diluent) monitoring system, 

consisting of a NOX pollutant concentration monitor, a diluent 

gas (CO2 or O2) monitor, and an automated data acquisition and 

handling system and providing a permanent, continuous record of 

NOX concentration, in parts per million (ppm), diluent gas 

concentration, in percent CO2 or O2, and NOX emission rate, in 

pounds per million British thermal units (lb/mmBtu);

(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 H2O;

(5) A CO2 monitoring system, consisting of a CO2 pollutant 

concentration monitor (or an O2 monitor plus suitable 

mathematical equations from which the CO2 concentration is 

derived) and an automated data acquisition and handling system 
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and providing a permanent, continuous record of CO2 emissions, in 

percent CO2; and

(6) An O2 monitoring system, consisting of an O2 concentration 

monitor and an automated data acquisition and handling system 

and providing a permanent, continuous record of O2, in percent 

O2.

Control period means the period starting May 1 of a calendar 

year, except as provided in §97.506(c)(3), and ending on 

September 30 of the same year, inclusive.

Designated representative means, for a TR NOX Ozone Season source 

and each TR 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 this 

subpart, to represent and legally bind each owner and operator 

in matters pertaining to the TR NOX Ozone Season Trading Program. 

If the TR NOX Ozone Season source is also subject to the Acid 

Rain Program, TR NOX Annual Trading Program, TR SO2 Group 1 

Trading Program, or TR SO2 Group 2 Trading Program, then this 

natural person shall be the same natural person as the 

designated representative, as defined in the respective program. 

Emissions means air pollutants exhausted from a unit or source 

into the atmosphere, as measured, recorded, and reported to the 
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Administrator by the designated representative, and as modified 

by the Administrator:

(1) In accordance with this subpart; and

(2) With regard to a period before the unit or source is 

required to measure, record, and report such air pollutants in 

accordance with this subpart, in accordance with part 75 of this 

chapter.

Excess emissions means any ton of emissions from the TR NOX Ozone 

Season units at a TR NOX Ozone Season source during a control 

period in a given year that exceeds the TR NOX Ozone Season

emissions limitation for the source for such control period.

Fossil fuel means—

(1) Natural gas, petroleum, coal, or any form of solid, liquid, 

or gaseous fuel derived from such material; or

(2) For purposes of applying the limitation on “average annual 

fuel consumption of fossil fuel” in §§97.504(b)(2)(i)(B) and

(ii), natural gas, petroleum, coal, or any form of solid, 

liquid, or gaseous fuel derived from such material for the 

purpose of creating useful heat.
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Fossil-fuel-fired means, with regard to a unit, combusting any 

amount of fossil fuel in 2005 or any calendar year thereafter.

General account means an Allowance Management System account, 

established under this subpart, that is not a compliance account

or an assurance account.

Generator means a device that produces electricity.

Gross electrical output means, for a unit, electricity made 

available for use, including any such electricity used in the 

power production process (which process includes, but is not 

limited to, any on-site processing or treatment of fuel 

combusted at the unit and any on-site emission controls).

Heat input means, for a unit for a specified period of time, the 

product (in mmBtu/time) of the gross calorific value of the fuel 

(in mmBtu/lb) fed into the unit multiplied by the fuel feed rate 

(in lb of fuel/time), as measured, recorded, and reported to the 

Administrator by the designated representative and as modified 

by the Administrator in accordance with this subpart and 

excluding the heat derived from preheated combustion air, 

recirculated flue gases, or exhaust.

Heat input rate means, for a unit, the amount of heat input (in 

mmBtu) divided by unit operating time (in hr) or, for a unit and 
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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.

Heat rate means, for a unit, the unit’s maximum design heat 

input (in Btu/hr), divided by the product of 1,000,000 Btu/mmBtu 

and the unit’s maximum hourly load.

Indian country means “Indian country” as defined in 18 U.S.C. 

1151.

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 
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portion of the nameplate capacity and associated energy 

generated by the unit at the end of the period.

Maximum design heat input means, for a unit, the maximum amount 

of fuel per hour (in Btu/hr) that the unit is capable of 

combusting on a steady state basis as of the initial 

installation of the unit as specified by the manufacturer of the 

unit.

Monitoring system means any monitoring system that meets the 

requirements of this subpart, including a continuous emission 

monitoring system, an alternative monitoring system, or an 

excepted monitoring system under part 75 of this chapter.

Nameplate capacity means, starting from the initial installation 

of a generator, the maximum electrical generating output (in 

MWe, rounded to the nearest tenth) that the generator is capable 

of producing on a steady state basis and during continuous 

operation (when not restricted by seasonal or other deratings) 

as of such installation as specified by the manufacturer of the 

generator or, starting from the completion of any subsequent 

physical change in the generator resulting in an increase in the 

maximum electrical generating output that the generator is 

capable of producing on a steady state basis and during 

continuous operation (when not restricted by seasonal or other 
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deratings), such increased maximum amount (in MWe, rounded to 

the nearest tenth) as of such completion as specified by the 

person conducting the physical change.

Natural gas means “natural gas” as defined in §72.2 of this 

chapter.

Newly affected TR NOX Ozone Season unit means a unit that was not 

a TR NOX Ozone Season unit when it began operating but that 

thereafter becomes a TR NOX Ozone Season unit. 

Operate or operation means, with regard to a unit, to combust 

fuel.

Operator means, for a TR NOX Ozone Season source or a TR NOX

Ozone Season unit at a source respectively, any person who 

operates, controls, or supervises a TR NOX Ozone Season unit at 

the source or the TR NOX Ozone Season unit and shall include, but 

not be limited to, any holding company, utility system, or plant 

manager of such source or unit.

Owner means, for a TR NOX Ozone Season source or a TR NOX Ozone 

Season unit at a source respectively, any of the following 

persons:
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(1) Any holder of any portion of the legal or equitable title in 

a TR NOX Ozone Season unit at the source or the TR NOX Ozone 

Season unit;

(2) Any holder of a leasehold interest in a TR NOX Ozone Season

unit at the source or the TR NOX Ozone Season unit, 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 TR NOX Ozone Season unit; and

(3) Any purchaser of power from a TR NOX Ozone Season unit at the 

source or the TR NOX Ozone Season unit under a life-of-the-unit, 

firm power contractual arrangement. 

Permanently retired means, with regard to a unit, a unit that is 

unavailable for service and that the unit’s owners and operators 

do not expect to return to service in the future. 

Permitting authority means “permitting authority” as defined in 

§§70.2 and 71.2 of this chapter.

Potential electrical output capacity means, for a unit, 33 

percent of the unit's maximum design heat input, divided by 
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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 

Administrator, to come into possession of a document, 

information, or correspondence (whether sent in hard copy or by 

authorized electronic transmission), as indicated in an official 

log, or by a notation made on the document, information, or 

correspondence, by the Administrator in the regular course of 

business.

Recordation, record, or recorded means, with regard to TR NOX

Ozone Season allowances, the moving of TR NOX Ozone Season

allowances by the Administrator into, out of, or between 

Allowance Management System accounts, for purposes of 

allocation, auction, transfer, or deduction.

Reference method means any direct test method of sampling and 

analyzing for an air pollutant as specified in §75.22 of this 

chapter.

Replacement, replace, or replaced means, with regard to a unit, 

the demolishing of a unit, or the permanent retirement and 

permanent disabling of a unit, and the construction of another 

unit (the replacement unit) to be used instead of the demolished 

or retired unit (the replaced unit).
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Sequential use of energy means:

(1) The use of reject heat from electricity production in a 

useful thermal energy application or process; or

(2) The use of reject heat from useful thermal energy 

application or process in electricity production.

Serial number means, for a TR NOX Ozone Season allowance, the 

unique identification number assigned to each TR NOX Ozone Season

allowance by the Administrator.

Solid waste incineration unit means a stationary, fossil-fuelfired boiler or stationary, fossil-fuel-fired combustion turbine 

that is a “solid waste incineration unit” as defined in section 

129(g)(1) of the Clean Air Act.

Source means all buildings, structures, or installations located 

in one or more contiguous or adjacent properties under common 

control of the same person or persons. This definition does not 

change or otherwise affect the definition of “major source”, 

“stationary source”, or “source” as set forth and implemented in 

a title V operating permit program or any other program under 

the Clean Air Act. 

State means one of the States that is subject to the TR NOX Ozone 

Season Trading Program pursuant to §52.38(b) of this chapter. 
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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;

(4) Provided that compliance with any “submission” or “service” 

deadline shall be determined by the date of dispatch, 

transmission, or mailing and not the date of receipt.

Topping-cycle unit means a unit in which the energy input to the 

unit is first used to produce useful power, including 

electricity, where at least some of the reject heat from the 

electricity production is then used to provide useful thermal 

energy.

Total energy input means, for a unit, total energy of all forms 

supplied to the unit, excluding energy produced by the unit. 

Each form of energy supplied shall be measured by the lower 

heating value of that form of energy calculated as follows:

LHV = HHV − 10.55(W + 9H)

Where:
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LHV = lower heating value of the form of energy in Btu/lb,

HHV = higher heating value of the form of energy in Btu/lb,

W = weight % of moisture in the form of energy, and

H = weight % of hydrogen in the form of energy.

Total energy output means, for a unit, the sum of useful power 

and useful thermal energy produced by the unit.

TR NOX Annual Trading Program means a multi-state NOX air 

pollution control and emission reduction program established in 

accordance with subpart AAAAA of this part and §52.38(a) of this 

chapter (including such a program that is revised in a SIP 

revision approved by the Administrator under §52.38(a)(3) or (4) 

of this chapter or that is established in a SIP revision 

approved by the Administrator under §52.38(a)(5) of this 

chapter), as a means of mitigating interstate transport of fine 

particulates and NOX.

TR NOX Ozone Season allowance means a limited authorization 

issued and allocated or auctioned by the Administrator under 

this subpart, or by a State or permitting authority under a SIP 

revision approved by the Administrator under §52.38(b)(3), (4), 

or (5) of this chapter, to emit one ton of NOX during a control 

period of the specified calendar year for which the 
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authorization is allocated or auctioned or of any calendar year 

thereafter under the TR NOX Ozone Season Trading Program. 

TR NOX Ozone Season allowance deduction or deduct TR NOX Ozone 

Season allowances means the permanent withdrawal of TR NOX Ozone 

Season allowances by the Administrator from a compliance account 

(e.g., in order to account for compliance with the TR NOX Ozone 

Season emissions limitation) or from an assurance account (e.g., 

in order to account for compliance with the assurance provisions

under §§97.506 and 97.525). 

TR NOX Ozone Season allowances held or hold TR NOX Ozone Season

allowances means the TR NOX Ozone Season allowances treated as 

included in an Allowance Management System account as of a 

specified point in time because at that time they:

(1) Have been recorded by the Administrator in the account or 

transferred into the account by a correctly submitted, but not 

yet recorded, TR NOX Ozone Season allowance transfer in 

accordance with this subpart; and

(2) Have not been transferred out of the account by a correctly 

submitted, but not yet recorded, TR NOX Ozone Season allowance 

transfer in accordance with this subpart.
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TR NOX Ozone Season emissions limitation means, for a TR NOX

Ozone Season source, the tonnage of NOX emissions authorized in a 

control period in a given year by the TR NOX Ozone Season

allowances available for deduction for the source under 

§97.524(a) for such control period.

TR NOX Ozone Season source means a source that includes one or 

more TR NOX Ozone Season units.

TR NOX Ozone Season Trading Program means a multi-state NOX air 

pollution control and emission reduction program established in 

accordance with this subpart and §52.38(b) of this chapter

(including such a program that is revised in a SIP revision 

approved by the Administrator under §52.38(b)(3) or (4) of this 

chapter or that is established in a SIP revision approved by the 

Administrator under §52.38(b)(5) of this chapter), as a means of 

mitigating interstate transport of ozone and NOX.

TR NOX Ozone Season unit means a unit that is subject to the TR 

NOX Ozone Season Trading Program.

TR SO2 Group 1 Trading Program means a multi-state SO2 air 

pollution control and emission reduction program established in 

accordance with subpart CCCCC of this part and 52.39(a), (b), 

(d) through (f) , (j), and (k) of this chapter (including such a 

program that is revised in a SIP revision approved by the 
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Administrator under §52.39(d) or (e) of this chapter or that is 

established in a SIP revision approved by the Administrator 

under §52.39(f) of this chapter), as a means of mitigating 

interstate transport of fine particulates and SO2.

TR SO2 Group 2 Trading Program means a multi-state SO2 air 

pollution control and emission reduction program established in 

accordance with subpart DDDDD of this part and 52.39(a), (c), 

and (g) through (k) of this chapter (including such a program 

that is revised in a SIP revision approved by the Administrator 

under §52.39(g) or (h) of this chapter or that is established in

a SIP revision approved by the Administrator under §52.39(i) of 

this chapter), as a means of mitigating interstate transport of 

fine particulates and SO2.

Unit means a stationary, fossil-fuel-fired boiler, stationary, 

fossil-fuel-fired combustion turbine, or other stationary, 

fossil-fuel-fired combustion device. A unit that undergoes a 

physical change or is moved to a different location or source 

shall continue to be treated as the same unit. A unit (the 

replaced unit) that is replaced by another unit (the replacement 

unit) at the same or a different source shall continue to be 

treated as the same unit, and the replacement unit shall be 

treated as a separate unit.
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Unit operating day means, with regard to a unit, a calendar day 

in which the unit combusts any fuel.

Unit operating hour or hour of unit operation means, with regard 

to a unit, an hour in which the unit combusts any fuel.

Useful power means, with regard to a unit, electricity or 

mechanical energy that the unit makes available for use, 

excluding any such energy used in the power production process 

(which process includes, but is not limited to, any on-site 

processing or treatment of fuel combusted at the unit and any 

on-site emission controls).

Useful thermal energy means thermal energy that is:

(1) Made available to an industrial or commercial process (not a 

power production process), excluding any heat contained in 

condensate return or makeup water;

(2) Used in a heating application (e.g., space heating or 

domestic hot water heating); or

(3) Used in a space cooling application (i.e., in an absorption 

chiller).
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Utility power distribution system means the portion of an 

electricity grid owned or operated by a utility and dedicated to 

delivering electricity to customers.

§ 97.503 Measurements, abbreviations, and acronyms.

Measurements, abbreviations, and acronyms used in this subpart 

are defined as follows:

Btu—British thermal unit

CO2—carbon dioxide

H2O—water

hr—hour

kW—kilowatt electrical

kWh—kilowatt hour

lb—pound

mmBtu—million Btu

MWe—megawatt electrical

MWh—megawatt hour

NOX—nitrogen oxides
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O2—oxygen

ppm—parts per million

scfh—standard cubic feet per hour

SO2—sulfur dioxide

yr—year

§ 97.504 Applicability.

(a) Except as provided in paragraph (b) of this section:

(1) The following units in a State (and Indian country within 

the borders of such State) shall be TR NOX Ozone Season units, 

and any source that includes one or more such units shall be a 

TR NOX Ozone Season source, subject to the requirements of this 

subpart: any stationary, fossil-fuel-fired boiler or stationary, 

fossil-fuel-fired combustion turbine serving at any time, on or 

after January 1, 2005, a generator with nameplate capacity of 

more than 25 MWe producing electricity for sale.

(2) If a stationary boiler or stationary combustion turbine 

that, under paragraph (a)(1) of this section, is not a TR NOX

Ozone Season unit begins to combust fossil fuel or to serve a 

generator with nameplate capacity of more than 25 MWe producing 

electricity for sale, the unit shall become a TR NOX Ozone Season
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unit as provided in paragraph (a)(1) of this section on the 

first date on which it both combusts fossil fuel and serves such 

generator.

(b) Any unit in a State (and Indian country within the borders 

of such State) that otherwise is a TR NOX Ozone Season unit under 

paragraph (a) of this section and that meets the requirements 

set forth in paragraph (b)(1)(i) or (2)(i) of this section shall 

not be a TR NOX Ozone Season unit:

(1)(i) Any unit:

(A) Qualifying as a cogeneration unit throughout the later of 

2005 or the 12-month period starting on the date the unit first 

produces electricity and continuing to qualify as a cogeneration 

unit throughout each calendar year ending after the later of 

2005 or such 12-month period; and

(B) Not supplying in 2005 or any calendar year thereafter more 

than one-third of the unit's potential electric output capacity 

or 219,000 MWh, whichever is greater, to any utility power 

distribution system for sale.

(ii) If, after qualifying under paragraph (b)(1)(i) of this 

section as not being a TR NOX Ozone Season unit, a unit

subsequently no longer meets all the requirements of paragraph 
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(b)(1)(i) of this section, the unit shall become a TR NOX Ozone 

Season unit starting on the earlier of January 1 after the first 

calendar year during which the unit first no longer qualifies as 

a cogeneration unit or January 1 after the first calendar year 

during which the unit no longer meets the requirements of 

paragraph (b)(1)(i)(B) of this section. The unit shall 

thereafter continue to be a TR NOX Ozone Season unit. 

(2)(i) Any unit:

(A) Qualifying as a solid waste incineration unit throughout the 

later of 2005 or the 12-month period starting on the date the 

unit first produces electricity and continuing to qualify as a 

solid waste incineration unit throughout each calendar year 

ending after the later of 2005 or such 12-month period; and

(B) With an average annual fuel consumption of fossil fuel for 

the first 3 consecutive calendar years of operation starting no 

earlier than 2005 of less than 20 percent (on a Btu basis) and 

an average annual fuel consumption of fossil fuel for any 3 

consecutive calendar years thereafter of less than 20 percent 

(on a Btu basis).

(ii) If, after qualifying under paragraph (b)(2)(i) of this 

section as not being a TR NOX Ozone Season unit, a unit

subsequently no longer meets all the requirements of paragraph 
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(b)(1)(i) of this section, the unit shall become a TR NOX Ozone 

Season unit starting on the earlier of January 1 after the first 

calendar year during which the unit first no longer qualifies as 

a solid waste incineration unit or January 1 after the first 3 

consecutive calendar years after 2005 for which the unit has an 

average annual fuel consumption of fossil fuel of 20 percent or 

more. The unit shall thereafter continue to be a TR NOX Ozone 

Season unit.

(c) A certifying official of an owner or operator of any unit or 

other equipment may submit a petition (including any supporting 

documents) to the Administrator at any time for a determination 

concerning the applicability, under paragraphs (a) and (b) of 

this section or a SIP revision approved under §52.38(b)(4) or 

(5) of this chapter, of the TR NOX Ozone Season Trading Program 

to the unit or other equipment.

(1) Petition content. The petition shall be in writing and 

include the identification of the unit or other equipment and 

the relevant facts about the unit or other equipment. The 

petition and any other documents provided to the Administrator 

in connection with the petition shall include the following 

certification statement, signed by the certifying official: “I 

am authorized to make this submission on behalf of the owners 

and operators of the unit or other equipment for which the 
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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) Response. The Administrator will issue a written response to 

the petition and may request supplemental information determined 

by the Administrator to be relevant to such petition. The 

Administrator's determination concerning the applicability, 

under paragraphs (a) and (b) of this section, of the TR NOX Ozone 

Season Trading Program to the unit or other equipment shall be 

binding on any State or permitting authority unless the 

Administrator determines that the petition or other documents or 

information provided in connection with the petition contained 

significant, relevant errors or omissions.

§ 97.505 Retired unit exemption.
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(a)(1) Any TR NOX Ozone Season unit that is permanently retired 

shall be exempt from §97.506(b) and (c)(1), §97.524, and 

§§97.530 through 97.535. 

(2) The exemption under paragraph (a)(1) of this section shall 

become effective the day on which the TR NOX Ozone Season unit is 

permanently retired. Within 30 days of the unit's permanent 

retirement, the designated representative shall submit a 

statement to the Administrator. The statement shall state, in a 

format prescribed by the Administrator, that the unit was 

permanently retired on a specified date and will comply with the 

requirements of paragraph (b) of this section.

(b) Special provisions. (1) A unit exempt under paragraph (a) of 

this section shall not emit any NOX, 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 Administrator. The owners and operators bear 

the burden of proof that the unit is permanently retired.
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(3) The owners and operators and, to the extent applicable, the 

designated representative of a unit exempt under paragraph (a) 

of this section shall comply with the requirements of the TR 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.

(4) A unit exempt under paragraph (a) of this section shall lose 

its exemption on the first date on which the unit resumes 

operation. Such unit shall be treated, for purposes of applying 

allocation, monitoring, reporting, and recordkeeping 

requirements under this subpart, as a unit that commences 

commercial operation on the first date on which the unit resumes 

operation.

§ 97.506 Standard requirements.

(a) Designated representative requirements. The owners and 

operators shall comply with the requirement to have a designated 

representative, and may have an alternate designated 

representative, in accordance with §§97.513 through 97.518.

(b) Emissions monitoring, reporting, and recordkeeping 

requirements. (1) The owners and operators, and the designated 

representative, of each TR NOX Ozone Season source and each TR 

NOX Ozone Season unit at the source shall comply with the 
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monitoring, reporting, and recordkeeping requirements of 

§§97.530 through 97.535.

(2) The emissions data determined in accordance with §§97.530 

through 97.535 shall be used to calculate allocations of TR NOX

Ozone Season allowances under §§97.511(a)(2) and (b) and 97.512 

and to determine compliance with the TR NOX Ozone Season

emissions limitation and assurance provisions under paragraph 

(c) of this section, provided that, for each monitoring location 

from which mass emissions are reported, the mass emissions 

amount used in calculating such allocations and determining such 

compliance shall be the mass emissions amount for the monitoring 

location determined in accordance with §§97.530 through 97.535 

and rounded to the nearest ton, with any fraction of a ton less 

than 0.50 being deemed to be zero.

(c) NOX emissions requirements. (1) TR NOX Ozone Season

emissions limitation. (i) As of the allowance transfer deadline 

for a control period in a given year, the owners and operators 

of each TR NOX Ozone Season source and each TR NOX Ozone Season

unit at the source shall hold, in the source's compliance 

account, TR NOX Ozone Season allowances available for deduction 

for such control period under §97.524(a) in an amount not less 

than the tons of total NOX emissions for such control period from 

all TR NOX Ozone Season units at the source.
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(ii) If total NOX emissions during a control period in a given 

year from the TR NOX Ozone Season units at a TR NOX Ozone Season

source are in excess of the TR NOX Ozone Season emissions 

limitation set forth in paragraph (c)(1)(i) of this section, 

then:

(A) The owners and operators of the source and each TR NOX Ozone 

Season unit at the source shall hold the TR NOX Ozone Season

allowances required for deduction under §97.524(d); and

(B) The owners and operators of the source and each TR NOX Ozone 

Season unit at the source shall pay any fine, penalty, or 

assessment or comply with any other remedy imposed, for the same 

violations, under the Clean Air Act, and each ton of such excess 

emissions and each day of such control period shall constitute a 

separate violation of this subpart and the Clean Air Act.

(2) TR NOX Ozone Season assurance provisions. (i) If total NOX

emissions during a control period in a given year from all TR NOX

Ozone Season units at TR NOX Ozone Season sources in a State (and 

Indian country within the borders of such State) exceed the 

State assurance level, then the owners and operators of such 

sources and units in each group of one or more sources and units 

having a common designated representative for such control 

period, where the common designated representative’s share of 
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such NOX emissions during such control period exceeds the common 

designated representative’s assurance level for the State and 

such control period, shall hold (in the assurance account 

established for the owners and operators of such group) TR NOX

Ozone Season allowances available for deduction for such control 

period under §97.525(a) in an amount equal to two times the 

product (rounded to the nearest whole number), as determined by 

the Administrator in accordance with §97.525(b), of multiplying—

(A) The quotient of the amount by which the common designated 

representative’s share of such NOX emissions exceeds the common 

designated representative’s assurance level divided by the sum 

of the amounts, determined for all common designated 

representatives for such sources and units in the State (and 

Indian country within the borders of such State) for such 

control period, by which each common designated representative’s 

share of such NOX emissions exceeds the respective common 

designated representative’s assurance level; and

(B) The amount by which total NOX emissions from all TR NOX Ozone 

Season units at TR NOX Ozone Season sources in the State (and 

Indian country within the borders of such State) for such 

control period exceed the State assurance level. 
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(ii) The owners and operators shall hold the TR NOX Ozone Season

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

as of midnight of November 1 (if it is a business day), or 

midnight of the first business day thereafter (if November 1 is 

not a business day), immediately after such control period. 

(iii) Total NOX emissions from all TR NOX Ozone Season units at 

TR NOX Ozone Season sources in a State (and Indian country within 

the borders of such State) during a control period in a given 

year exceed the State assurance level if such total NOX emissions 

exceed the sum, for such control period, of the State NOX Ozone 

Season trading budget under §97.510(a) and the State’s 

variability limit under §97.510(b).

(iv) It shall not be a violation of this subpart or of the Clean 

Air Act if total NOX emissions from all TR NOX Ozone Season units 

at TR NOX Ozone Season sources in a State (and Indian country 

within the borders of such State) during a control period exceed 

the State assurance level or if a common designated 

representative’s share of total NOX emissions from the TR NOX

Ozone Season units at TR NOX Ozone Season sources in a State (and 

Indian country within the borders of such State) during a 

control period exceeds the common designated representative’s

assurance level. 
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(v) To the extent the owners and operators fail to hold TR NOX

Ozone Season allowances for a control period in a given year in 

accordance with paragraphs (c)(2)(i) through (iii) of this 

section, 

(A) The owners and operators shall pay any fine, penalty, or 

assessment or comply with any other remedy imposed under the 

Clean Air Act; and

(B) Each TR NOX Ozone Season allowance that the owners and 

operators fail to hold for such control period in accordance 

with paragraphs (c)(2)(i) through (iii) of this section and each 

day of such control period shall constitute a separate violation 

of this subpart and the Clean Air Act.

(3) Compliance periods. A TR NOX Ozone Season unit shall be 

subject to the requirements under paragraphs (c)(1) and (c)(2) 

of this section for the control period starting on the later of 

May 1, 2012 or the deadline for meeting the unit's monitor 

certification requirements under §97.530(b) and for each control 

period thereafter.

(4) Vintage of allowances held for compliance. (i) A TR NOX

Ozone Season allowance held for compliance with the requirements 

under paragraph (c)(1)(i) of this section for a control period 

in a given year must be a TR NOX Ozone Season allowance that was 
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allocated for such control period or a control period in a prior 

year.

(ii) A TR NOX Ozone Season allowance held for compliance with the 

requirements under paragraphs (c)(1)(ii)(A) and (2)(i) through 

(iii) of this section for a control period in a given year must 

be a TR NOX Ozone Season allowance that was allocated for a 

control period in a prior year or the control period in the 

given year or in the immediately following year. 

(5) Allowance Management System requirements. Each TR NOX Ozone 

Season allowance shall be held in, deducted from, or transferred 

into, out of, or between Allowance Management System accounts in 

accordance with this subpart.

(6) Limited authorization. A TR NOX Ozone Season allowance is a 

limited authorization to emit one ton of NOX during the control 

period in one year. Such authorization is limited in its use 

and duration as follows:

(i) Such authorization shall only be used in accordance with the 

TR NOX Ozone Season Trading Program; and

(ii) Notwithstanding any other provision of this subpart, the 

Administrator has the authority to terminate or limit the use 

and duration of such authorization to the extent the 
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Administrator determines is necessary or appropriate to 

implement any provision of the Clean Air Act. 

(7) Property right. A TR NOX Ozone Season allowance does not 

constitute a property right.

(d) Title V permit requirements. (1) No title V permit revision 

shall be required for any allocation, holding, deduction, or 

transfer of TR NOX Ozone Season allowances in accordance with 

this subpart.

(2) A description of whether a unit is required to monitor and 

report NOX emissions using a continuous emission monitoring 

system (under subpart H of part 75 of this chapter), an excepted 

monitoring system (under appendices D and E to part 75 of this 

chapter), a low mass emissions excepted monitoring methodology 

(under §75.19 of this chapter), or an alternative monitoring 

system (under subpart E of part 75 of this chapter) in 

accordance with §§97.530 through 97.535 may be added to, or 

changed in, a title V permit using minor permit modification 

procedures in accordance with §§70.7(e)(2) and 71.7(e)(1) of 

this chapter, provided that the requirements applicable to the 

described monitoring and reporting (as added or changed, 

respectively) are already incorporated in such permit. This 

paragraph explicitly provides that the addition of, or change 
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to, a unit’s description as described in the prior sentence is 

eligible for minor permit modification procedures in accordance 

with §§70.7(e)(2)(i)(B) and 71.7(e)(1)(i)(B) of this chapter. 

(e) Additional recordkeeping and reporting requirements. (1) 

Unless otherwise provided, the owners and operators of each TR 

NOX Ozone Season source and each TR NOX Ozone Season unit at the 

source shall keep on site at the source each of the following 

documents (in hardcopy or electronic format) 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 Administrator.

(i) The certificate of representation under §97.516 for the 

designated representative for the source and each TR 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 

certificate of representation and documents are superseded 

because of the submission of a new certificate of representation 

under §97.516 changing the designated representative.

(ii) All emissions monitoring information, in accordance with 

this subpart.
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(iii) Copies of all reports, compliance certifications, and 

other submissions and all records made or required under, or to 

demonstrate compliance with the requirements of, the TR NOX Ozone 

Season Trading Program.

(2) The designated representative of a TR NOX Ozone Season source 

and each TR NOX Ozone Season unit at the source shall make all 

submissions required under the TR NOX Ozone Season Trading 

Program, except as provided in §97.518. This requirement does 

not change, create an exemption from, or or otherwise affect the 

responsible official submission requirements under a title V 

operating permit program in parts 70 and 71 of this chapter. 

(f) Liability. (1) Any provision of the TR NOX Ozone Season

Trading Program that applies to a TR NOX Ozone Season source or 

the designated representative of a TR NOX Ozone Season source 

shall also apply to the owners and operators of such source and 

of the TR NOX Ozone Season units at the source.

(2) Any provision of the TR NOX Ozone Season Trading Program that 

applies to a TR NOX Ozone Season unit or the designated 

representative of a TR NOX Ozone Season unit shall also apply to 

the owners and operators of such unit.

(g) Effect on other authorities. No provision of the TR NOX

Ozone Season Trading Program or exemption under §97.505 shall be 
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construed as exempting or excluding the owners and operators, 

and the designated representative, of a TR NOX Ozone Season

source or TR 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.

§ 97.507 Computation of time.

(a) Unless otherwise stated, any time period scheduled, under 

the TR 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 TR 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 TR NOX Ozone Season Trading Program, is not a 

business day, the time period shall be extended to the next 

business day.

§ 97.508 Administrative appeal procedures.
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The administrative appeal procedures for decisions of the 

Administrator under the TR NOX Ozone Season Trading Program are 

set forth in part 78 of this chapter.

§ 97.509 [Reserved]

§ 97.510 State NOX Ozone Season trading budgets, new unit setasides, Indian country new unit set-aside, and variability 

limits.

(a) The State NOX Ozone Season trading budgets, new unit setasides, and Indian country new unit set-asides for allocations 

of TR NOX Ozone Season allowances for the control periods in 2012 

and thereafter are as follows:

State

NOX Ozone Season 

trading budget 

(tons)*

for 2012 and 2013

New unit setaside (tons)

for 2012 and 

2013

Indian country 

new unit setaside (tons)

for 2012 and 2013

Alabama 31,746 635 ---

Arkansas 15,037 301 ---

Florida 27,825 529 28

Georgia 27,944 559 ---

Illinois 21,208 1,697 ---

Indiana 46,876 1,406 ---

Kentucky 36,167 1,447 ---

Louisiana 13,432 390 13

Maryland 7,179 144 ---

Mississippi 10,160 193 10

New Jersey 3,382 68 ---

New York 8,331 242 8
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North 

Carolina 22,168 1,308 22

Ohio 40,063 801 ---

Pennsylvania 52,201 1,044 ---

South 

Carolina 13,909 264 14

Tennessee 14,908 298 ---

Texas 63,043 1,828 63

Virginia 14,452 723 ---

West 

Virginia 25,283 1,264 ---

State

NOX Ozone Season 

trading budget 

(tons)*

for 2014 and 

thereafter

New unit setaside (tons)

for 2014 and 

thereafter

Indian country 

new unit setaside (tons)

for 2014 and 

thereafter

Alabama 31,499 630 ---

Arkansas 15,037 301 ---

Florida 27,825 529 28

Georgia 18,279 366 ---

Illinois 21,208 1,697 ---

Indiana 46,175 1,385 ---

Kentucky 32,674 1,307 ---

Louisiana 13,432 390 13

Maryland 7,179 144 ---

Mississippi 10,160 193 10

New Jersey 3,382 68 ---

New York 8,331 242 8

North 

Carolina 18,455 1,089 18

Ohio 37,792 756 ---

Pennsylvania 51,912 1,038 ---

South 

Carolina 13,909 264 14

Tennessee 8,016 160 ---

Texas 63,043 1,828 63
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Virginia 14,452 723 ---

West 

Virginia 23,291 1,165 ---

* Each trading budget includes the new unit set-aside and, where 

applicable, the Indian country new unit set-aside and does not 

include the variability limit.

(b) The States’ variability limits for the State NOX Ozone 

Season trading budgets for the control periods in 2012 and 

thereafter are as follows:

State

Variability limits

for 2012 and 2013

Variability limits

for 2014 and thereafter

Alabama 6,667 6,615

Arkansas 3,158 3,158

Florida 5,843 5,843

Georgia 5,868 3,839

Illinois 4,454 4,454

Indiana 9,844 9,697

Kentucky 7,595 6,862

Louisiana 2,821 2,821

Maryland 1,508 1,508

Mississippi 2,134 2,134

New Jersey 710 710

New York 1,750 1,750

North 

Carolina 4,655 3,876

Ohio 8,413 7,936

Pennsylvania 10,962 10,902

South 

Carolina 2,921 2,921

Tennessee 3,131 1,683
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Texas 13,239 13,239

Virginia 3,035 3,035

West 

Virginia 5,309 4,891

§ 97.511 Timing requirements for TR NOX Ozone Season allowance 

allocations.

(a) Existing units. (1) TR NOX Ozone Season allowances are 

allocated, for the control periods in 2012 and each year 

thereafter, as provided in a notice of data availability issued 

by the Administrator. Providing an allocation to a unit in such 

notice does not constitute a determination that the unit is a TR 

NOX Ozone Season unit, and not providing an allocation to a unit 

in such notice does not constitute a determination that the unit 

is not a TR NOX Ozone Season unit. 

(2) Notwithstanding paragraph (a)(1) of this section, if a unit 

provided an allocation in the notice of data availability issued 

under paragraph (a)(1) of this section does not operate, 

starting after 2011, during the control period in two

consecutive years, such unit will not be allocated the TR NOX

Ozone Season allowances provided in such notice for the unit for 

the control periods in the fifth year after the first such year 

and in each year after that fifth year. All TR NOX Ozone Season

allowances that would otherwise have been allocated to such unit 
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will be allocated to the new unit set-aside for the State where 

such unit is located and for the respective years involved. If 

such unit resumes operation, the Administrator will allocate TR 

NOX Ozone Season allowances to the unit in accordance with 

paragraph (b) of this section. 

(b) New units. (1) New unit set-asides. (i) By June 1, 2012 

and June 1 of each year thereafter, the Administrator will 

calculate the TR NOX Ozone Season allowance allocation to each TR 

NOX Ozone Season unit in a State, in accordance with 

§97.512(a)(2) through (7) and (12), for the control period in 

the year of the applicable calculation deadline under this 

paragraph and will promulgate a notice of data availability of 

the results of the calculations.

(ii) For each notice of data availability required in paragraph 

(b)(1)(i) of this section, the Administrator will provide an 

opportunity for submission of objections to the calculations 

referenced in such notice. 

(A) Objections shall be submitted by the deadline specified in 

each notice of data availability required in paragraph (b)(1)(i)

of this section and shall be limited to addressing whether the 

calculations (including the identification of the TR NOX Ozone 
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Season units) are in accordance with §97.512(a)(2) through (7) 

and (12) and §§97.506(b)(2) and 97.530 through 97.535. 

(B) The Administrator will adjust the calculations to the extent 

necessary to ensure that they are in accordance with the 

provisions referenced in paragraph (b)(1)(ii)(A) of this 

section. By August 1 immediately after the promulgation of each 

notice of data availability required in paragraph (b)(1)(i) of 

this section, the Administrator will promulgate a notice of data 

availability of any adjustments that the Administrator 

determines to be necessary with regard to allocations under 

§97.512(a)(2) through (7) and (12) and the reasons for accepting 

or rejecting any objections submitted in accordance with 

paragraph (b)(1)(ii)(A) of this section. 

(iii) If the new unit set-aside for such control period contains 

any TR NOX Ozone Season allowances that have not been allocated 

in the applicable notice of data availability required in 

paragraph (b)(1)(ii) of this section, the Administrator will 

promulgate, by September 15 immediately after such notice, a 

notice of data availability that identifies any TR NOX Ozone 

Season units that commenced commercial operation during the 

period starting May 1 of the year before the year of such 

control period and ending August 31 of year of such control 

period.
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(iv) For each notice of data availability required in paragraph 

(b)(1)(iii) of this section, the Administrator will provide an 

opportunity for submission of objections to the identification 

of TR NOX Ozone Season units in such notice. 

(A) Objections shall be submitted by the deadline specified in 

each notice of data availability required in paragraph 

(b)(1)(iii) of this section and shall be limited to addressing 

whether the identification of TR NOX Ozone Season units in such 

notice is in accordance with paragraph (b)(1)(iii) of this 

section. 

(B) The Administrator will adjust the identification of TR NOX

Ozone Season units in the each notice of data availability 

required in paragraph (b)(1)(iii) of this section to the extent 

necessary to ensure that it is in accordance with paragraph 

(b)(1)(iii) of this section and will calculate the TR NOX Ozone 

Season allowance allocation to each TR NOX Ozone Season unit in 

accordance with §97.512(a)(9), (10), and (12) and §§97.506(b)(2) 

and 97.530 through 97.535. By November 15 immediately after the 

promulgation of each notice of data availability required in 

paragraph (b)(1)(iii) of this section, the Administrator will 

promulgate a notice of data availability of any adjustments of 

the identification of TR NOX Ozone Season units that the 

Administrator determines to be necessary, the reasons for 
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accepting or rejecting any objections submitted in accordance 

with paragraph (b)(1)(iv)(A) of this section, and the results of 

such calculations.

(v) To the extent any TR NOX Ozone Season allowances are added to 

the new unit set-aside after promulgation of each notice of data 

availability required in paragraph (b)(1)(iv) of this section, 

the Administrator will promulgate additional notices of data 

availability, as deemed appropriate, of the allocation of such 

TR NOX Ozone Season allowances in accordance with §97.512(a)(10). 

(2) Indian country new unit set-asides. (i) By June 1, 2012 and 

June 1 of each year thereafter, the Administrator will calculate 

the TR NOX Ozone Season allowance allocation to each TR NOX Ozone 

Season unit in Indian country within the borders of a State, in 

accordance with §97.512(b)(2) through (7) and (12), for the 

control period in the year of the applicable calculation 

deadline under this paragraph and will promulgate a notice of 

data availability of the results of the calculations.

(ii) For each notice of data availability required in paragraph 

(b)(2)(i) of this section, the Administrator will provide an 

opportunity for submission of objections to the calculations 

referenced in such notice. 
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(A) Objections shall be submitted by the deadline specified in 

each notice of data availability required in paragraph (b)(2)(i)

of this section and shall be limited to addressing whether the 

calculations (including the identification of the TR NOX Ozone 

Season units) are in accordance with §97.512(b)(2) through (7) 

and (12) and §§97.506(b)(2) and 97.530 through 97.535. 

(B) The Administrator will adjust the calculations to the extent 

necessary to ensure that they are in accordance with the 

provisions referenced in paragraph (b)(2)(ii)(A) of this 

section. By August 1 immediately after the promulgation of each 

notice of data availability required in paragraph (b)(2)(i) of 

this section, the Administrator will promulgate a notice of data 

availability of any adjustments that the Administrator 

determines to be necessary with regard to allocations under 

§97.512(b)(2) through (7) and (12) and the reasons for accepting 

or rejecting any objections submitted in accordance with 

paragraph (b)(2)(ii)(A) of this section. 

(iii) If the Indian country new unit set-aside for such control 

period contains any TR NOX Ozone Season allowances that have not 

been allocated in the applicable notice of data availability 

required in paragraph (b)(2)(ii) of this section, the 

Administrator will promulgate, by September 15 immediately after 

such notice, a notice of data availability that identifies any 
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TR NOX Ozone Season units that commenced commercial operation 

during the period starting May 1 of the year before the year of 

such control period and ending August 31 of year of such control 

period.

(iv) For each notice of data availability required in paragraph 

(b)(2)(iii) of this section, the Administrator will provide an 

opportunity for submission of objections to the identification 

of TR NOX Ozone Season units in such notice. 

(A) Objections shall be submitted by the deadline specified in 

each notice of data availability required in paragraph 

(b)(2)(iii) of this section and shall be limited to addressing 

whether the identification of TR NOX Ozone Season units in such 

notice is in accordance with paragraph (b)(2)(iii) of this 

section. 

(B) The Administrator will adjust the identification of TR NOX

Ozone Season units in the each notice of data availability 

required in paragraph (b)(2)(iii) of this section to the extent 

necessary to ensure that it is in accordance with paragraph 

(b)(2)(iii) of this section and will calculate the TR NOX Ozone 

Season allowance allocation to each TR NOX Ozone Season unit in 

accordance with §97.512(b)(9), (10), and (12) and §§97.506(b)(2) 

and 97.530 through 97.535. By November 15 immediately after the 
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promulgation of each notice of data availability required in 

paragraph (b)(2)(iii) of this section, the Administrator will 

promulgate a notice of data availability of any adjustments of 

the identification of TR NOX Ozone Season units that the 

Administrator determines to be necessary, the reasons for 

accepting or rejecting any objections submitted in accordance 

with paragraph (b)(2)(iv)(A) of this section, and the results of 

such calculations. 

(v) To the extent any TR NOX Ozone Season allowances are added to 

the Indian country new unit set-aside after promulgation of each 

notice of data availability required in paragraph (b)(2)(iv) of 

this section, the Administrator will promulgate additional 

notices of data availability, as deemed appropriate, of the 

allocation of such TR NOX Ozone Season allowances in accordance 

with §97.512(b)(10). 

(c) Units incorrectly allocated TR NOX Ozone Season allowances. 

(1) For each control period in 2012 and thereafter, if the 

Administrator determines that TR NOX Ozone Season allowances were 

allocated under paragraph (a) of this section, or under a 

provision of a SIP revision approved under §52.38(b)(3), (4), or 

(5) of this chapter, where such control period and the recipient 

are covered by the provisions of paragraph (c)(1)(i) of this 

section or were allocated under §97.512(a)(2) through (7), (9), 
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and (12) and (b)(2) through (7), (9), and (12), or under a 

provision of a SIP revision approved under §52.38(b)(4) or (5) 

of this chapter, where such control period and the recipient are

covered by the provisions of paragraph (c)(1)(ii) of this 

section, then the Administrator will notify the designated 

representative of the recipient and will act in accordance with 

the procedures set forth in paragraphs (c)(2) through (5) of 

this section:

(i)(A) The recipient is not actually a TR NOX Ozone Season unit 

under §97.504 as of May 1, 2012 and is allocated TR NOX Ozone 

Season allowances for such control period or, in the case of an 

allocation under a provision of a SIP revision approved under 

§52.38(b)(3), (4), or (5) of this chapter, the recipient is not 

actually a TR NOX Ozone Season unit as of May 1, 2012 and is 

allocated TR NOX Ozone Season allowances for such control period 

that the SIP revision provides should be allocated only to 

recipients that are TR NOX Ozone Season units as of May 1, 2012; 

or

(B) The recipient is not located as of May 1 of the control 

period in the State from whose NOX Ozone Season trading budget 

the TR NOX Ozone Season allowances allocated under paragraph (a) 

of this section, or under a provision of a SIP revision approved 
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under §52.38(b)(3), (4), or (5) of this chapter, were allocated 

for such control period. 

(ii) The recipient is not actually a TR NOX Ozone Season unit 

under §97.504 as of May 1 of such control period and is 

allocated TR NOX Ozone Season allowances for such control period 

or, in the case of an allocation under a provision of a SIP 

revision approved under §52.38(b)(3), (4), or (5) of this 

chapter, the recipient is not actually a TR NOX Ozone Season unit

as of January 1 of such control period and is allocated TR NOX

Ozone Season allowances for such control period that the SIP 

revision provides should be allocated only to recipients that 

are TR NOX Ozone Season units as of May 1 of such control period. 

(2) Except as provided in paragraph (c)(3) or (4) of this 

section, the Administrator will not record such TR NOX Ozone 

Season allowances under §97.521.

(3) If the Administrator already recorded such TR NOX Ozone 

Season allowances under §97.521 and if the Administrator makes 

the determination under paragraph (c)(1) of this section before 

making deductions for the source that includes such recipient 

under §97.524(b) for such control period, then the Administrator 

will deduct from the account in which such TR NOX Ozone Season

allowances were recorded an amount of TR NOX Ozone Season
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allowances allocated for the same or a prior control period 

equal to the amount of such already recorded TR NOX Ozone Season

allowances. The authorized account representative shall ensure 

that there are sufficient TR NOX Ozone Season allowances in such 

account for completion of the deduction.

(4) If the Administrator already recorded such TR NOX Ozone 

Season allowances under §97.521 and if the Administrator makes 

the determination under paragraph (c)(1) of this section after 

making deductions for the source that includes such recipient 

under §97.524(b) for such control period, then the Administrator 

will not make any deduction to take account of such already 

recorded TR NOX Ozone Season allowances. 

(5)(i) With regard to the TR NOX Ozone Season allowances that are 

not recorded, or that are deducted as an incorrect allocation, 

in accordance with paragraphs (c)(2) and (3) of this section for 

a recipient under paragraph (c)(1)(i) of this section, the 

Administrator will:

(A) Transfer such TR NOX Ozone Season allowances to the new unit 

set-aside for such control period for the State from whose NOX

Ozone Season trading budget the TR NOX Ozone Season allowances 

were allocated; or
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(B) If the State has a SIP revision approved under §52.38(b)(4) 

or (5) covering such control period, include such TR NOX Annual 

allowances in the portion of the State NOX Ozone Season trading 

budget that may be allocated for such control period in 

accordance with such SIP revision. 

(ii) With regard to the TR NOX Ozone Season allowances that were 

not allocated from the Indian country new unit set-aside for 

such control period and that are not recorded, or that are 

deducted as an incorrect allocation, in accordance with 

paragraphs (c)(2) and (3) of this section for a recipient under 

paragraph (c)(1)(ii) of this paragraph, the Administrator will:

(A) Transfer such TR NOX Ozone Season allowances to the new unit 

set-aside for such control period; or

(B) If the State has a SIP revision approved under §52.38(b)(4) 

or (5) covering such control period, include such TR NOX Ozone 

Season allowances in the portion of the State NOX Ozone Season

trading budget that may be allocated for such control period in 

accordance with such SIP revision. 

(iii) With regard to the TR NOX Ozone Season allowances that were 

allocated from the Indian country new unit set-aside for such 

control period and that are not recorded, or that are deducted

as an incorrect allocation, in accordance with paragraphs (c)(2) 
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and (3) of this section for a recipient under paragraph 

(c)(1)(ii) of this paragraph, the Administrator will transfer 

such TR NOX Ozone Season allowances to the Indian country new 

unit set-aside for such control period.

§ 97.512 TR NOX Ozone Season allowance allocations to new units.

(a) For each control period in 2012 and thereafter and for the 

TR NOX Ozone Season units in each State, the Administrator will 

allocate TR NOX Ozone Season allowances to the TR NOX Ozone 

Season units as follows:

(1) The TR NOX Ozone Season allowances will be allocated to the 

following TR NOX Ozone Season units, except as provided in 

paragraph (a)(10) of this section:

(i) TR NOX Ozone Season units that are not allocated an amount of

TR NOX Ozone Season allowances in the notice of data availability 

issued under §97.511(a)(1);

(ii) TR NOX Ozone Season units whose allocation of an amount of

TR NOX Ozone Season allowances for such control period in the 

notice of data availability issued under §97.511(a)(1) is 

covered by §97.511(c)(2) or (3);

(iii) TR NOX Ozone Season units that are allocated an amount of

TR NOX Ozone Season allowances for such control period in the 
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notice of data availability issued under §97.511(a)(1), which 

allocation is terminated for such control period pursuant to 

§97.511(a)(2), and that operate during the control period 

immediately preceding such control period; or

(iv) For purposes of paragraph (a)(9) of this section, TR NOX

Ozone Season units under §97.511(c)(1)(ii) whose allocation of 

an amount of TR NOX Ozone Season allowances for such control 

period in the notice of data availability issued under 

§97.511(b)(1)(ii)(B) is covered by §97.511(c)(2) or (3). 

(2) The Administrator will establish a separate new unit setaside for the State for each such control period. Each such new 

unit set-aside will be allocated TR NOX Ozone Season allowances 

in an amount equal to the applicable amount of tons of NOX

emissions as set forth in §97.510(a) and will be allocated 

additional TR NOX Ozone Season allowances (if any) in accordance 

with §§97.511(a)(2) and (c)(5) and paragraph (b)(10) of this 

section.

(3) The Administrator will determine, for each TR NOX Ozone 

Season unit described in paragraph (a)(1) of this section, an 

allocation of TR NOX Ozone Season allowances for the later of

the following control periods and for each subsequent control 

period:
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(i) The control period in 2012;

(ii) The first control period after the control period in which 

the TR NOX Ozone Season unit commences commercial operation;

(iii) For a unit described in paragraph (a)(1)(ii) of this 

section, the first control period in which the TR NOX Ozone 

Season unit operates in the State after operating in another 

jurisdiction and for which the unit is not already allocated one 

or more TR NOX Ozone Season allowances; and

(iv) For a unit described in paragraph (a)(1)(iii) of this 

section, the first control period after the control period in 

which the unit resumes operation. 

(4)(i) The allocation to each TR NOX Ozone Season unit described 

in paragraph (a)(1)(i) through (iii) of this section and for 

each control period described in paragraph (a)(3) of this 

section will be an amount equal to the unit’s total tons of NOX

emissions during the immediately preceding control period.

(ii) The Administrator will adjust the allocation amount in 

paragraph (a)(4)(i) in accordance with paragraphs (a)(5) through 

(7) and (12) of this section.

(5) The Administrator will calculate the sum of the TR NOX Ozone 

Season allowances determined for all such TR NOX Ozone Season
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units under paragraph (a)(4)(i) of this section in the State for 

such control period.

(6) If the amount of TR NOX Ozone Season allowances in the new 

unit set-aside for the State for such control period is greater 

than or equal to the sum under paragraph (a)(5) of this section, 

then the Administrator will allocate the amount of TR NOX Ozone 

Season allowances determined for each such TR NOX Ozone Season

unit under paragraph (a)(4)(i) of this section.

(7) If the amount of TR NOX Ozone Season allowances in the new 

unit set-aside for the State for such control period is less 

than the sum under paragraph (a)(5) of this section, then the 

Administrator will allocate to each such TR NOX Ozone Season unit 

the amount of the TR NOX Ozone Season allowances determined under 

paragraph (a)(4)(i) of this section for the unit, multiplied by 

the amount of TR NOX Ozone Season allowances in the new unit setaside for such control period, divided by the sum under 

paragraph (a)(5) of this section, and rounded to the nearest 

allowance.

(8) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 

§97.511(b)(1)(i) and (ii), of the amount of TR NOX Ozone Season

allowances allocated under paragraphs (a)(2) through (7) and 
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(12) of this section for such control period to each TR NOX Ozone 

Season unit eligible for such allocation.

(9) If, after completion of the procedures under paragraphs

(a)(5) through (8) of this section for such control period, any 

unallocated TR NOX Ozone Season allowances remain in the new unit 

set-aside for the State for such control period, the 

Administrator will allocate such TR NOX Ozone Season allowances 

as follows--

(i) The Administrator will determine, for each unit described in 

paragraph (a)(1) of this section that commenced commercial 

operation during the period starting May 1 of the year before 

the year of such control period and ending August 31 of year of 

such control period, the positive difference (if any) between 

the unit’s emissions during such control period and the amount 

of TR NOX Ozone Season allowances referenced in the notice of 

data availability required under §97.511(b)(1)(ii) for the unit 

for such control period;

(ii) The Administrator will determine the sum of the positive 

differences determined under paragraph (a)(9)(i) of this 

section;

(iii) If the amount of unallocated TR NOX Ozone Season allowances 

remaining in the new unit set-aside for the State for such 
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control period is greater than or equal to the sum determined 

under paragraph (a)(9)(ii) of this section, then the 

Administrator will allocate the amount of TR NOX Ozone Season

allowances determined for each such TR NOX Ozone Season unit 

under paragraph (a)(9)(i) of this section; and

(iv) If the amount of unallocated TR NOX Ozone Season allowances 

remaining in the new unit set-aside for the State for such 

control period is less than the sum under paragraph (a)(9)(ii)

of this section, then the Administrator will allocate to each 

such TR NOX Ozone Season unit the amount of the TR NOX Ozone 

Season allowances determined under paragraph (a)(9)(i) of this 

section for the unit, multiplied by the amount of unallocated TR 

NOX Ozone Season allowances remaining in the new unit set-aside 

for such control period, divided by the sum under paragraph 

(a)(9)(ii) of this section, and rounded to the nearest 

allowance.

(10) If, after completion of the procedures under paragraphs

(a)(9) and (12) of this section for such control period, any 

unallocated TR NOX Ozone Season allowances remain in the new unit 

set-aside for the State for such control period, the 

Administrator will allocate to each TR NOX Ozone Season unit that 

is in the State, is allocated an amount of TR NOX Ozone Season

allowances in the notice of data availability issued under 
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§97.511(a)(1), and continues to be allocated TR NOX Ozone Season

allowances for such control period in accordance with 

§97.511(a)(2), an amount of TR NOX Ozone Season allowances equal 

to the following: the total amount of such remaining unallocated 

TR NOX Ozone Season allowances in such new unit set-aside, 

multiplied by the unit's allocation under §97.511(a) for such 

control period, divided by the remainder of the amount of tons 

in the applicable State NOX Ozone Season trading budget minus the 

sum of the amounts of tons in such new unit set-aside and the 

Indian country new unit set-aside for the State for such control 

period, and rounded to the nearest allowance.

(11) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 

§97.511(b)(1)(iii), (iv), and (v), of the amount of TR NOX Ozone 

Season allowances allocated under paragraphs (a)(9), (10), and 

(12) of this section for such control period to each TR NOX Ozone 

Season unit eligible for such allocation.

(12)(i) Notwithstanding the requirements of paragraphs (a)(2) 

through (11) of this section, if the calculations of allocations 

of a new unit set-aside for a control period in a given year 

under paragraph (a)(7) of this section, paragraphs (a)(6) and 

(9)(iv) of this section, or paragraphs (a)(6), (9)(iii), and 

(10) of this section would otherwise result in total allocations 
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of such new unit set-aside exceeding the total amount of such 

new unit set-aside, then the Administrator will adjust the 

results of the calculations under paragraph (a)(7), (9)(iv), or 

(10) of this section, as applicable, as follows. The 

Administrator will list the TR NOX Ozone Season units in 

descending order based on the amount of such units’ allocations 

under paragraph (a)(7), (9)(iv), or (10) of this section, as 

applicable, and, in cases of equal allocation amounts, in 

alphabetical order of the relevant source’s name and numerical 

order of the relevant unit’s identification number, and will 

reduce each unit’s allocation under paragraph (a)(7), (9)(iv), 

or (10) of this section, as applicable, by one TR NOX Ozone 

Season allowance (but not below zero) in the order in which the 

units are listed and will repeat this reduction process as 

necessary, until the total allocations of such new unit setaside equal the total amount of such new unit set-aside. 

(ii) Notwithstanding the requirements of paragraphs (a)(10) and 

(11) of this section, if the calculations of allocations of a 

new unit set-aside for a control period in a given year under 

paragraphs (a)(6), (9)(iii), and (10) of this section would 

otherwise result in a total allocations of such new unit setaside less than the total amount of such new unit set-aside, 

then the Administrator will adjust the results of the 
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calculations under paragraph (a)(10) of this section, as 

follows. The Administrator will list the TR NOX Ozone Season 

units in descending order based on the amount of such units’ 

allocations under paragraph (a)(10) of this section and, in 

cases of equal allocation amounts, in alphabetical order of the 

relevant source’s name and numerical order of the relevant 

unit’s identification number, and will increase each unit’s 

allocation under paragraph (a)(10) of this section by one TR NOX

Ozone Season allowance in the order in which the units are 

listed and will repeat this increase process as necessary, until 

the total allocations of such new unit set-aside equal the total 

amount of such new unit set-aside. 

(b) For each control period in 2012 and thereafter and for the 

TR NOX Ozone Season units located in Indian country within the 

borders of each State, the Administrator will allocate TR NOX

Ozone Season allowances to the TR NOX Ozone Season units as 

follows: 

(1) The TR NOX Ozone Season allowances will be allocated to the 

following TR NOX Ozone Season units, except as provided in 

paragraph (b)(10) of this section:
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(i) TR NOX Ozone Season units that are not allocated an amount of

TR NOX Ozone Season allowances in the notice of data availability 

issued under §97.511(a)(1); or

(ii) For purposes of paragraph (b)(9) of this section, TR NOX

Ozone Season units under §97.511(c)(1)(ii) whose allocation of 

an amount of TR NOX Ozone Season allowances for such control 

period in the notice of data availability issued under 

§97.511(b)(2)(ii)(B) is covered by §97.511(c)(2) or (3). 

(2) The Administrator will establish a separate Indian country 

new unit set-aside for the State for each such control period. 

Each such Indian country new unit set-aside will be allocated TR 

NOX Ozone Season allowances in an amount equal to the applicable 

amount of tons of NOX emissions as set forth in §97.510(a) and

will be allocated additional TR NOX Ozone Season allowances (if 

any) in accordance with §97.511(c)(5).

(3) The Administrator will determine, for each TR NOX Ozone 

Season unit described in paragraph (b)(1) of this section, an 

allocation of TR NOX Ozone Season allowances for the later of the 

following control periods and for each subsequent control 

period:

(i) The control period in 2012; and
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(ii) The first control period after the control period in which 

the TR NOX Ozone Season unit commences commercial operation.

(4)(i) The allocation to each TR NOX Ozone Season unit described 

in paragraph (b)(1)(i) of this section and for each control 

period described in paragraph (b)(3) of this section will be an 

amount equal to the unit’s total tons of NOX emissions during the 

immediately preceding control period.

(ii) The Administrator will adjust the allocation amount in 

paragraph (b)(4)(i) in accordance with paragraphs (b)(5) through 

(7) and (12) of this section.

(5) The Administrator will calculate the sum of the TR NOX Ozone 

Season allowances determined for all such TR NOX Ozone Season

units under paragraph (b)(4)(i) of this section in Indian 

country within the borders of the State for such control period.

(6) If the amount of TR NOX Ozone Season allowances in the Indian 

country new unit set-aside for the State for such control period 

is greater than or equal to the sum under paragraph (b)(5) of 

this section, then the Administrator will allocate the amount of 

TR NOX Ozone Season allowances determined for each such TR NOX

Ozone Season unit under paragraph (b)(4)(i) of this section.
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(7) If the amount of TR NOX Ozone Season allowances in the Indian 

country new unit set-aside for the State for such control period 

is less than the sum under paragraph (b)(5) of this section, 

then the Administrator will allocate to each such TR NOX Ozone 

Season unit the amount of the TR NOX Ozone Season allowances 

determined under paragraph (b)(4)(i) of this section for the 

unit, multiplied by the amount of TR NOX Ozone Season allowances 

in the Indian country new unit set-aside for such control 

period, divided by the sum under paragraph (b)(5) of this 

section, and rounded to the nearest allowance.

(8) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 

§97.511(b)(2)(i) and (ii), of the amount of TR NOX Ozone Season

allowances allocated under paragraphs (b)(2) through (7) and 

(12) of this section for such control period to each TR NOX Ozone 

Season unit eligible for such allocation.

(9) If, after completion of the procedures under paragraphs

(b)(5) through (8) of this section for such control period, any 

unallocated TR NOX Ozone Season allowances remain in the Indian 

country new unit set-aside for the State for such control 

period, the Administrator will allocate such TR NOX Ozone Season 

allowances as follows--
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(i) The Administrator will determine, for each unit described in 

paragraph (b)(1) of this section that commenced commercial 

operation during the period starting May 1 of the year before 

the year of such control period and ending August 31 of year of 

such control period, the positive difference (if any) between 

the unit’s emissions during such control period and the amount 

of TR NOX Ozone Season allowances referenced in the notice of 

data availability required under §97.511(b)(2)(ii) for the unit 

for such control period;

(ii) The Administrator will determine the sum of the positive 

differences determined under paragraph (b)(9)(i) of this 

section;

(iii) If the amount of unallocated TR NOX Ozone Season allowances 

remaining in the Indian country new unit set-aside for the State 

for such control period is greater than or equal to the sum 

determined under paragraph (b)(9)(ii) of this section, then the 

Administrator will allocate the amount of TR NOX Ozone Season

allowances determined for each such TR NOX Ozone Season unit 

under paragraph (b)(9)(i) of this section; and

(iv) If the amount of unallocated TR NOX Ozone Season allowances 

remaining in the Indian country new unit set-aside for the State 

for such control period is less than the sum under paragraph 
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(b)(9)(ii) of this section, then the Administrator will allocate 

to each such TR NOX Ozone Season unit the amount of the TR NOX

Ozone Season allowances determined under paragraph (b)(9)(i) of 

this section for the unit, multiplied by the amount of 

unallocated TR NOX Ozone Season allowances remaining in the 

Indian country new unit set-aside for such control period, 

divided by the sum under paragraph (b)(9)(ii) of this section, 

and rounded to the nearest allowance.

(10) If, after completion of the procedures under paragraphs

(b)(9) and (12) of this section for such control period, any 

unallocated TR NOX Ozone Season allowances remain in the Indian 

country new unit set-aside for the State for such control 

period, the Administrator will:

(i) Transfer such unallocated TR NOX Ozone Season allowances to 

the new unit set-aside for the State for such control period; or 

(ii) If the State has a SIP revision approved under §52.38(b)(4) 

or (5) covering such control period, include such unallocated TR 

NOX Ozone Season allowances in the portion of the State NOX Ozone 

Season trading budget that may be allocated for such control 

period in accordance with such SIP revision. 

(11) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 
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§97.511(b)(2)(iii), (iv), and (v), of the amount of TR NOX Ozone 

Season allowances allocated under paragraphs (b)(9), (10), and 

(12) of this section for such control period to each TR NOX Ozone 

Season unit eligible for such allocation.

(12)(i) Notwithstanding the requirements of paragraphs (b)(2) 

through (11) of this section, if the calculations of allocations 

of an Indian country new unit set-aside for a control period in 

a given year under paragraph (b)(7) of this section, paragraphs 

(b)(6) and (9)(iv) of this section, or paragraphs (b)(6), 

(9)(iii), and (10) of this section would otherwise result in 

total allocations of such Indian country new unit set-aside 

exceeding the total amount of such Indian country new unit setaside, then the Administrator will adjust the results of the 

calculations under paragraph (b)(7), (9)(iv), or (10) of this 

section, as applicable, as follows. The Administrator will list 

the TR NOX Ozone Season units in descending order based on the 

amount of such units’ allocations under paragraph (b)(7), 

(9)(iv), or (10) of this section, as applicable, and, in cases 

of equal allocation amounts, in alphabetical order of the 

relevant source’s name and numerical order of the relevant 

unit’s identification number, and will reduce each unit’s 

allocation under paragraph (b)(7), (9)(iv), or (10) of this 

section, as applicable, by one TR NOX Ozone Season allowance (but 
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not below zero) in the order in which the units are listed and 

will repeat this reduction process as necessary, until the total 

allocations of such Indian country new unit set-aside equal the 

total amount of such Indian country new unit set-aside. 

(ii) Notwithstanding the requirements of paragraphs (b)(10) and 

(11) of this section, if the calculations of allocations of an 

Indian country new unit set-aside for a control period in a 

given year under paragraphs (b)(6), (9)(iii), and (10) of this 

section would otherwise result in a total allocations of such 

Indian country new unit set-aside less than the total amount of 

such Indian country new unit set-aside, then the Administrator 

will adjust the results of the calculations under paragraph 

(b)(10) of this section, as follows. The Administrator will 

list the TR NOX Ozone Season units in descending order based on 

the amount of such units’ allocations under paragraph (b)(10) of 

this section and, in cases of equal allocation amounts, in 

alphabetical order of the relevant source’s name and numerical

order of the relevant unit’s identification number, and will 

increase each unit’s allocation under paragraph (b)(10) of this 

section by one TR NOX Ozone Season allowance in the order in 

which the units are listed and will repeat this increase process 

as necessary, until the total allocations of such Indian country 
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new unit set-aside equal the total amount of such Indian country

new unit set-aside. 

§ 97.513 Authorization of designated representative and 

alternate designated representative.

(a) Except as provided under §97.515, each TR NOX Ozone Season

source, including all TR NOX Ozone Season units at the source, 

shall have one and only one designated representative, with 

regard to all matters under the TR NOX Ozone Season Trading 

Program.

(1) The designated representative shall be selected by an 

agreement binding on the owners and operators of the source and 

all TR NOX Ozone Season units at the source and shall act in 

accordance with the certification statement in 

§97.516(a)(4)(iii).

(2) Upon and after receipt by the Administrator of a complete 

certificate of representation under §97.516:

(i) The designated representative shall be authorized and shall 

represent and, by his or her representations, actions, 

inactions, or submissions, legally bind each owner and operator 

of the source and each TR NOX Ozone Season unit at the source in 

all matters pertaining to the TR NOX Ozone Season Trading 
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Program, notwithstanding any agreement between the designated 

representative and such owners and operators; and

(ii) The owners and operators of the source and each TR NOX Ozone 

Season unit at the source shall be bound by any decision or 

order issued to the designated representative by the 

Administrator regarding the source or any such unit.

(b) Except as provided under §97.515, each TR NOX Ozone Season

source may have one and only one alternate designated 

representative, who may act on behalf of the designated 

representative. The agreement by which the alternate designated 

representative is selected shall include a procedure for 

authorizing the alternate designated representative to act in 

lieu of the designated representative.

(1) The alternate designated representative shall be selected by 

an agreement binding on the owners and operators of the source 

and all TR NOX Ozone Season units at the source and shall act in 

accordance with the certification statement in 

§97.516(a)(4)(iii).

(2) Upon and after receipt by the Administrator of a complete 

certificate of representation under §97.516, 

(i) The alternate designated representative shall be authorized; 
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(ii) Any representation, action, inaction, or submission by the 

alternate designated representative shall be deemed to be a 

representation, action, inaction, or submission by the 

designated representative; and

(iii) The owners and operators of the source and each TR NOX

Ozone Season unit at the source shall be bound by any decision 

or order issued to the alternate designated representative by 

the Administrator regarding the source or any such unit.

(c) Except in this section, §97.502, and §§97.514 through 

97.518, whenever the term “designated representative” (as 

distinguished from the term “common designated representative”) 

is used in this subpart, the term shall be construed to include 

the designated representative or any alternate designated 

representative.

§ 97.514 Responsibilities of designated representative and 

alternate designated representative.

(a) Except as provided under §97.518 concerning delegation of 

authority to make submissions, each submission under the TR NOX

Ozone Season Trading Program shall be made, signed, and 

certified by the designated representative or alternate 

designated representative for each TR NOX Ozone Season source and 

TR NOX Ozone Season unit for which the submission is made. Each 
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such submission shall include the following certification 

statement by the designated representative or alternate 

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.”

(b) The Administrator will accept or act on a submission made 

for a TR NOX Ozone Season source or a TR NOX Ozone Season unit 

only if the submission has been made, signed, and certified in 

accordance with paragraph (a) of this section and §97.518.

§ 97.515 Changing designated representative and alternate 

designated representative; changes in owners and operators; 

changes in units at the source.
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(a) Changing designated representative. The designated 

representative may be changed at any time upon receipt by the 

Administrator of a superseding complete certificate of 

representation under §97.516. Notwithstanding any such change, 

all representations, actions, inactions, and submissions by the 

previous designated representative before the time and date when 

the Administrator receives the superseding certificate of 

representation shall be binding on the new designated 

representative and the owners and operators of the TR NOX Ozone 

Season source and the TR NOX Ozone Season units at the source.

(b) Changing alternate designated representative. The alternate 

designated representative may be changed at any time upon 

receipt by the Administrator of a superseding complete 

certificate of representation under §97.516. Notwithstanding 

any such change, all representations, actions, inactions, and 

submissions by the previous alternate designated representative 

before the time and date when the Administrator receives the 

superseding certificate of representation shall be binding on 

the new alternate designated representative, the designated 

representative, and the owners and operators of the TR NOX Ozone 

Season source and the TR NOX Ozone Season units at the source.

(c) Changes in owners and operators. (1) In the event an owner 

or operator of a TR NOX Ozone Season source or a TR NOX Ozone 
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Season unit at the source is not included in the list of owners 

and operators in the certificate of representation under 

§97.516, such owner or operator shall be deemed to be subject to 

and bound by the certificate of representation, the 

representations, actions, inactions, and submissions of the 

designated representative and any alternate designated 

representative of the source or unit, and the decisions and 

orders of the Administrator, as if the owner or operator were 

included in such list.

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

of a TR NOX Ozone Season source or a TR NOX Ozone Season unit at 

the source, including the addition or removal of an owner or 

operator, the designated representative or any alternate 

designated representative shall submit a revision to the 

certificate of representation under §97.516 amending the list of 

owners and operators to reflect the change.

(d) Changes in units at the source. Within 30 days of any 

change in which units are located at a TR NOX Ozone Season source

(including the addition or removal of a unit), the designated 

representative or any alternate designated representative shall 

submit a certificate of representation under §97.516 amending 

the list of units to reflect the change. 
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(1) If the change is the addition of a unit that operated (other 

than for purposes of testing by the manufacturer before initial 

installation) before being located at the source, then the 

certificate of representation shall identify, in a format 

prescribed by the Administrator, the entity from whom the unit 

was purchased or otherwise obtained (including name, address, 

telephone number, and facsimile number (if any)), the date on 

which the unit was purchased or otherwise obtained, and the date 

on which the unit became located at the source.

(2) If the change is the removal of a unit, then the certificate 

of representation shall identify, in a format prescribed by the 

Administrator, the entity to which the unit was sold or that 

otherwise obtained the unit (including name, address, telephone 

number, and facsimile number (if any)), the date on which the 

unit was sold or otherwise obtained, and the date on which the 

unit became no longer located at the source. 

§ 97.516 Certificate of representation.

(a) A complete certificate of representation for a designated 

representative or an alternate designated representative shall 

include the following elements in a format prescribed by the 

Administrator:
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(1) Identification of the TR NOX Ozone Season source, and each TR 

NOX Ozone Season unit at the source, for which the certificate of 

representation is submitted, including source name, source 

category and NAICS code (or, in the absence of a NAICS code, an 

equivalent code), State, plant code, county, latitude and 

longitude, unit identification number and type, identification 

number and nameplate capacity (in MWe, rounded to the nearest 

tenth) of each generator served by each such unit, actual or 

projected date of commencement of commercial operation, and a 

statement of whether such source is located in Indian Country. 

If a projected date of commencement of commercial operation is 

provided, the actual date of commencement of commercial 

operation shall be provided when such information becomes 

available.

(2) The name, address, e-mail address (if any), telephone 

number, and facsimile transmission number (if any) of the 

designated representative and any alternate designated 

representative.

(3) A list of the owners and operators of the TR NOX Ozone Season

source and of each TR NOX Ozone Season unit at the source.

(4) The following certification statements by the designated 

representative and any alternate designated representative—
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(i) “I certify that I was selected as the designated 

representative or alternate designated representative, as 

applicable, by an agreement binding on the owners and operators 

of the source and each TR 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 TR NOX Ozone Season

Trading Program on behalf of the owners and operators of the 

source and of each TR 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 and by any 

decision or order issued to me by the Administrator regarding 

the source or unit.”

(iii) “Where there are multiple holders of a legal or equitable 

title to, or a leasehold interest in, a TR NOX Ozone Season unit, 

or where a utility or industrial customer purchases power from a 

TR NOX Ozone Season unit under a life-of-the-unit, firm power 

contractual arrangement, I certify that: I have given a written 

notice of my selection as the ‘designated representative’ or 

‘alternate designated representative’, as applicable, and of the 

agreement by which I was selected to each owner and operator of 

the source and of each TR NOX Ozone Season unit at the source; 

and TR NOX Ozone Season allowances and proceeds of transactions 

involving TR NOX Ozone Season allowances will be deemed to be 
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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 TR NOX Ozone Season allowances by 

contract, TR NOX Ozone Season allowances and proceeds of 

transactions involving TR NOX Ozone Season allowances will be 

deemed to be held or distributed in accordance with the 

contract.”

(5) The signature of the designated representative and any 

alternate designated representative and the dates signed.

(b) Unless otherwise required by the Administrator, documents of 

agreement referred to in the certificate of representation shall 

not be submitted to the Administrator. The Administrator shall 

not be under any obligation to review or evaluate the 

sufficiency of such documents, if submitted.

§ 97.517 Objections concerning designated representative and 

alternate designated representative.

(a) Once a complete certificate of representation under §97.516 

has been submitted and received, the Administrator will rely on 

the certificate of representation unless and until a superseding 

complete certificate of representation under §97.516 is received 

by the Administrator.
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(b) Except as provided in paragraph (a) of this section, no 

objection or other communication submitted to the Administrator 

concerning the authorization, or any representation, action, 

inaction, or submission, of a designated representative or 

alternate designated representative shall affect any 

representation, action, inaction, or submission of the 

designated representative or alternate designated representative 

or the finality of any decision or order by the Administrator 

under the TR NOX Ozone Season Trading Program.

(c) The Administrator will not adjudicate any private legal 

dispute concerning the authorization or any representation, 

action, inaction, or submission of any designated representative 

or alternate designated representative, including private legal 

disputes concerning the proceeds of TR NOX Ozone Season allowance 

transfers.

§ 97.518 Delegation by designated representative and alternate 

designated representative.

(a) A designated representative may delegate, to one or more 

natural persons, his or her authority to make an electronic 

submission to the Administrator provided for or required under 

this subpart.
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(b) An alternate designated representative may delegate, to one 

or more natural persons, his or her authority to make an 

electronic submission to the Administrator provided for or 

required under this subpart.

(c) In order to delegate authority to a natural person to make 

an electronic submission to the Administrator in accordance with 

paragraph (a) or (b) of this section, the designated 

representative or alternate designated representative, as 

appropriate, must submit to the Administrator a notice of 

delegation, in a format prescribed by the Administrator, that 

includes the following elements:

(1) The name, address, e-mail address, telephone number, and 

facsimile transmission number (if any) of such designated 

representative or alternate designated representative;

(2) The name, address, e-mail address, telephone number, and 

facsimile transmission number (if any) of each such natural 

person (referred to in this section as an “agent”);

(3) For each such natural person, a list of the type or types of 

electronic submissions under paragraph (a) or (b) of this 

section for which authority is delegated to him or her; and
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(4) The following certification statements by such designated 

representative or alternate designated representative:

(i) “I agree that any electronic submission to the Administrator 

that is made by an agent identified in this notice of delegation 

and of a type listed for such agent in this notice of delegation 

and that is made when I am a designated representative or 

alternate designated representative, as appropriate, and before 

this notice of delegation is superseded by another notice of 

delegation under 40 CFR 97.518(d) shall be deemed to be an

electronic submission by me.”

(ii) “Until this notice of delegation is superseded by another 

notice of delegation under 40 CFR 97.518(d), I agree to maintain 

an e-mail account and to notify the Administrator immediately of 

any change in my e-mail address unless all delegation of 

authority by me under 40 CFR 97.518 is terminated.”.

(d) A notice of delegation submitted under paragraph (c) of this 

section shall be effective, with regard to the designated 

representative or alternate designated representative identified 

in such notice, upon receipt of such notice by the Administrator 

and until receipt by the Administrator of a superseding notice 

of delegation submitted by such designated representative or 

alternate designated representative, as appropriate. The 
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superseding notice of delegation may replace any previously 

identified agent, add a new agent, or eliminate entirely any 

delegation of authority.

(e) Any electronic submission covered by the certification in 

paragraph (c)(4)(i) of this section and made in accordance with 

a notice of delegation effective under paragraph (d) of this 

section shall be deemed to be an electronic submission by the 

designated representative or alternate designated representative 

submitting such notice of delegation.

§ 97.519 [Reserved]

§ 97.520 Establishment of compliance accounts, assurance 

accounts, and general accounts.

(a) Compliance accounts. Upon receipt of a complete certificate 

of representation under §97.516, the Administrator will 

establish a compliance account for the TR NOX Ozone Season source 

for which the certificate of representation was submitted, 

unless the source already has a compliance account. The 

designated representative and any alternate designated 

representative of the source shall be the authorized account 

representative and the alternate authorized account 

representative respectively of the compliance account.
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(b) Assurance accounts. The Administrator will establish 

assurance accounts for certain owners and operators and States 

in accordance with §97.525(b)(3). 

(c) General accounts. (1) Application for general account. (i) 

Any person may apply to open a general account, for the purpose 

of holding and transferring TR NOX Ozone Season allowances, by 

submitting to the Administrator a complete application for a 

general account. Such application shall designate one and only 

one authorized account representative and may designate one and 

only one alternate authorized account representative who may act 

on behalf of the authorized account representative. 

(A) The authorized account representative and alternate 

authorized account representative shall be selected by an 

agreement binding on the persons who have an ownership interest 

with respect to TR NOX Ozone Season allowances held in the 

general account. 

(B) The agreement by which the alternate authorized account 

representative is selected shall include a procedure for 

authorizing the alternate authorized account representative to 

act in lieu of the authorized account representative.
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(ii) A complete application for a general account 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 

authorized account representative and any alternate authorized 

account representative;

(B) An identifying name for the general account;

(C) A list of all persons subject to a binding agreement for the 

authorized account representative and any alternate authorized 

account representative to represent their ownership interest 

with respect to the TR NOX Ozone Season allowances held in the 

general account;

(D) The following certification statement by the authorized 

account representative and any alternate authorized account 

representative: “I certify that I was selected as the authorized 

account representative or the alternate authorized account 

representative, as applicable, by an agreement that is binding 

on all persons who have an ownership interest with respect to TR 

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 TR NOX Ozone Season Trading 
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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 decision or order issued to me by the 

Administrator regarding the general account.”

(E) The signature of the authorized account representative and 

any alternate authorized account representative and the dates 

signed.

(iii) Unless otherwise required by the Administrator, documents 

of agreement referred to in the application for a general 

account shall not be submitted to the Administrator. The 

Administrator shall not be under any obligation to review or 

evaluate the sufficiency of such documents, if submitted.

(2) Authorization of authorized account representative and 

alternate authorized account representative. (i) Upon receipt

by the Administrator of a complete application for a general 

account under paragraph (b)(1) of this section, the 

Administrator will establish a general account for the person or 

persons for whom the application is submitted, and upon and 

after such receipt by the Administrator:

(A) The authorized account representative of the general account 

shall be authorized and shall represent and, by his or her 

representations, actions, inactions, or submissions, legally 
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bind each person who has an ownership interest with respect to 

TR NOX Ozone Season allowances held in the general account in all 

matters pertaining to the TR NOX Ozone Season Trading Program, 

notwithstanding any agreement between the authorized account 

representative and such person. 

(B) Any alternate authorized account representative shall be 

authorized, and any representation, action, inaction, or 

submission by any alternate authorized account representative 

shall be deemed to be a representation, action, inaction, or 

submission by the authorized account representative.

(C) Each person who has an ownership interest with respect to TR 

NOX Ozone Season allowances held in the general account shall be 

bound by any decision or order issued to the authorized account 

representative or alternate authorized account representative by 

the Administrator regarding the general account. 

(ii) Except as provided in paragraph (c)(5) of this section 

concerning delegation of authority to make submissions, each 

submission concerning the general account shall be made, signed, 

and certified by the authorized account representative or any 

alternate authorized account representative for the persons 

having an ownership interest with respect to TR NOX Ozone Season

allowances held in the general account. Each such submission 
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shall include the following certification statement by the 

authorized account representative or any alternate authorized 

account representative: “I am authorized to make this submission 

on behalf of the persons having an ownership interest with 

respect to the TR 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) Except in this section, whenever the term “authorized 

account representative” is used in this subpart, the term shall 

be construed to include the authorized account representative or 

any alternate authorized account representative.

(3) Changing authorized account representative and alternate 

authorized account representative; changes in persons with 

ownership interest. (i) The authorized account representative 

of a general account may be changed at any time upon receipt by 
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the Administrator of a superseding complete application for a 

general account under paragraph (c)(1) of this section. 

Notwithstanding any such change, all representations, actions, 

inactions, and submissions by the previous 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 authorized account representative and the 

persons with an ownership interest with respect to the TR NOX

Ozone Season allowances in the general account.

(ii) The alternate authorized account representative of 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 (c)(1) of this section.

Notwithstanding any such change, all representations, actions, 

inactions, and submissions by the previous alternate 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 authorized account 

representative, the authorized account representative, and the 

persons with an ownership interest with respect to the TR NOX

Ozone Season allowances in the general account.

(iii)(A) In the event a person having an ownership interest with 

respect to TR NOX Ozone Season allowances in the general account 
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is not included in the list of such persons in the application 

for a general account, such person shall be deemed to be subject 

to and bound by the application for a general account, the 

representation, actions, inactions, and submissions of the 

authorized account representative and any alternate authorized 

account representative of the account, and the decisions and 

orders of the Administrator, as if the person were included in 

such list.

(B) Within 30 days after any change in the persons having an 

ownership interest with respect to NOX Ozone Season allowances in 

the general account, including the addition or removal of a 

person, the authorized account representative or any alternate 

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 TR NOX Ozone 

Season allowances in the general account to include the change.

(4) Objections concerning authorized account representative and 

alternate authorized account representative. (i) Once a 

complete application for a general account under paragraph 

(c)(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 
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paragraph (b)(1) of this section is received by the 

Administrator.

(ii) Except as provided in paragraph (c)(4)(i) of this section, 

no objection or other communication submitted to the 

Administrator concerning the authorization, or any

representation, action, inaction, or submission of the 

authorized account representative or any alternate authorized 

account representative of a general account shall affect any 

representation, action, inaction, or submission of the 

authorized account representative or any alternate authorized 

account representative or the finality of any decision or order 

by the Administrator under the TR 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 authorized account 

representative or any alternate authorized account 

representative of a general account, including private legal 

disputes concerning the proceeds of TR NOX Ozone Season allowance 

transfers.

(5) Delegation by authorized account representative and 

alternate authorized account representative. (i) An authorized 
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account representative of a general account may delegate, to one 

or more natural persons, his or her authority to make an 

electronic submission to the Administrator provided for or 

required under this subpart.

(ii) An alternate authorized account representative of a general 

account may delegate, to one or more natural persons, his or her 

authority to make an electronic submission to the Administrator 

provided for or required under this subpart.

(iii) In order to delegate authority to a natural person to make 

an electronic submission to the Administrator in accordance with 

paragraph (c)(5)(i) or (ii) of this section, the authorized 

account representative or alternate authorized account 

representative, as appropriate, must submit to the Administrator 

a notice of delegation, in a format prescribed by the 

Administrator, that includes the following elements:

(A) The name, address, e-mail address, telephone number, and 

facsimile transmission number (if any) of such authorized 

account representative or alternate authorized account 

representative;

(B) The name, address, e-mail address, telephone number, and 

facsimile transmission number (if any) of each such natural 

person (referred to in this section as an “agent”);
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(C) For each such natural person, a list of the type or types of 

electronic submissions under paragraph (c)(5)(i) or (ii) of this 

section for which authority is delegated to him or her;

(D) The following certification statement by such authorized 

account representative or alternate authorized account 

representative: “I agree that any electronic submission to the 

Administrator that is made by an agent identified in this notice 

of delegation and of a type listed for such agent in this notice 

of delegation and that is made when I am an authorized account 

representative or alternate authorized representative, as 

appropriate, and before this notice of delegation is superseded 

by another notice of delegation under 40 CFR 97.520(c)(5)(iv) 

shall be deemed to be an electronic submission by me.”; and

(E) The following certification statement by such authorized 

account representative or alternate authorized account 

representative: “Until this notice of delegation is superseded 

by another notice of delegation under 40 CFR 97.520(c)(5)(iv), I 

agree to maintain an e-mail account and to notify the 

Administrator immediately of any change in my e-mail address 

unless all delegation of authority by me under 40 CFR 

97.520(c)(5) is terminated.”.
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(iv) A notice of delegation submitted under paragraph 

(c)(5)(iii) of this section shall be effective, with regard to 

the authorized account representative or alternate authorized 

account representative identified in such notice, upon receipt 

of such notice by the Administrator and until receipt by the 

Administrator of a superseding notice of delegation submitted by 

such authorized account representative or alternate authorized 

account representative, as appropriate. The superseding notice 

of delegation may replace any previously identified agent, add a 

new agent, or eliminate entirely any delegation of authority.

(v) Any electronic submission covered by the certification in 

paragraph (c)(5)(iii)(D) of this section and made in accordance 

with a notice of delegation effective under paragraph (c)(5)(iv) 

of this section shall be deemed to be an electronic submission 

by the designated representative or alternate designated 

representative submitting such notice of delegation.

(6) Closing a general account. (i) The authorized account 

representative or alternate authorized account representative of 

a general account may submit to the Administrator a request to 

close the account. Such request shall include a correctly 

submitted TR NOX Ozone Season allowance transfer under §97.522 

for any TR NOX Ozone Season allowances in the account to one or 

more other Allowance Management System accounts.
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(ii) If a general account has no TR NOX Ozone Season allowance 

transfers to or from the account for a 12-month period or longer 

and does not contain any TR NOX Ozone Season allowances, the 

Administrator may notify the authorized account representative 

for the account that the account will be closed after 30 days 

after the notice is sent. The account will be closed after the 

30-day period unless, before the end of the 30-day period, the 

Administrator receives a correctly submitted TR NOX Ozone Season

allowance transfer under §97.522 to the account or a statement 

submitted by the authorized account representative or alternate 

authorized account representative demonstrating to the 

satisfaction of the Administrator good cause as to why the 

account should not be closed.

(d) Account identification. The Administrator will assign a 

unique identifying number to each account established under 

paragraph (a), (b), or (c) of this section.

(e) Responsibilities of authorized account representative and 

alternate authorized account representative. After the 

establishment of a compliance account or general account, the 

Administrator will accept or act on a submission pertaining to 

the account, including, but not limited to, submissions 

concerning the deduction or transfer of TR NOX Ozone Season

allowances in the account, only if the submission has been made, 
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signed, and certified in accordance with §§97.514(a) and 97.518 

or paragraphs (c)(2)(ii) and (c)(5) of this section. 

§ 97.521 Recordation of TR NOX Ozone Season allowance 

allocations and auction results.

(a) By [INSERT DATE 90 DAYS FROM DATE OF PUBLICATION IN THE 

FEDERAL REGISTER], the Administrator will record in each TR NOX

Ozone Season source's compliance account the TR NOX Ozone Season

allowances allocated to the TR NOX Ozone Season units at the 

source in accordance with §97.511(a) for the control period in 

2012.

(b) By [INSERT DATE 90 DAYS FROM DATE OF PUBLICATION IN THE 

FEDERAL REGISTER], the Administrator will record in each TR NOX

Ozone Season source's compliance account the TR NOX Ozone Season

allowances allocated to the TR NOX Ozone Season units at the 

source in accordance with §97.511(a) for the control period in 

2013, unless the State in which the source is located notifies 

the Administrator in writing by [INSERT DATE 70 DAYS FROM DATE 

OF PUBLICATION IN THE FEDERAL REGISTER] of the State’s intent to 

submit to the Administrator a complete SIP revision by April 1, 

2012 meeting the requirements of §52.38(b)(3)(i) through (iv) of 

this chapter.
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(1) If, by April 1, 2012, the State does not submit to the 

Administrator such complete SIP revision, the Administrator will 

record by April 15, 2012 in each TR NOX Ozone Season source's 

compliance account the TR NOX Ozone Season allowances allocated 

to the TR NOX Ozone Season units at the source in accordance with 

§97.511(a) for the control period in 2013.

(2) If the State submits to the Administrator by April 1, 2012, 

and the Administrator approves by October 1, 2012, such complete 

SIP revision, the Administrator will record by October 1, 2012 

in each TR NOX Ozone Season source's compliance account the TR 

NOX Ozone Season allowances allocated to the TR NOX Ozone Season

units at the source as provided in such approved, complete SIP 

revision for the control period in 2013.

(3) If the State submits to the Administrator by April 1, 2012, 

and the Administrator does not approve by October 1, 2012, such 

complete SIP revision, the Administrator will record by October 

1, 2012 in each TR NOX Ozone Season source's compliance account 

the TR NOX Ozone Season allowances allocated to the TR NOX Ozone 

Season units at the source in accordance with §97.511(a) for the 

control period in 2013.

(c) By July 1, 2013, the Administrator will record in each TR NOX

Ozone Season source's compliance account the TR NOX Ozone Season
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allowances allocated to the TR NOX Ozone Season units at the 

source, or in each appropriate Allowance Management System 

account the TR NOX Ozone Season allowances auctioned to TR NOX

Ozone Season units, in accordance with §97.511(a), or with a SIP 

revision approved under §52.38(b)(4) or (5) of this chapter, for 

the control period in 2014 and 2015.

(d) By July 1, 2014, the Administrator will record in each TR NOX

Ozone Season source's compliance account the TR NOX Ozone Season

allowances allocated to the TR NOX Ozone Season units at the 

source, or in each appropriate Allowance Management System 

account the TR NOX Ozone Season allowances auctioned to TR NOX

Ozone Season units, in accordance with §97.511(a), or with a SIP 

revision approved under §52.38(b)(4) or (5) of this chapter, for 

the control period in 2016 and 2017.

(e) By July 1, 2015, the Administrator will record in each TR NOX

Ozone Season source's compliance account the TR NOX Ozone Season

allowances allocated to the TR NOX Ozone Season units at the 

source, or in each appropriate Allowance Management System 

account the TR NOX Ozone Season allowances auctioned to TR NOX

Ozone Season units, in accordance with §97.511(a), or with a SIP 

revision approved under §52.38(b)(4) or (5) of this chapter, for 

the control period in 2018 and 2019.
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(f) By July 1, 2016 and July 1 of each year thereafter, the 

Administrator will record in each TR NOX Ozone Season source's 

compliance account the TR NOX Ozone Season allowances allocated 

to the TR NOX Ozone Season units at the source, or in each 

appropriate Allowance Management System account the TR NOX Ozone 

Season allowances auctioned to TR NOX Ozone Season units, in 

accordance with §97.511(a), or with a SIP revision approved 

under §52.38(b)(4) or (5) of this chapter, for the control 

period in the fourth year after the year of the applicable 

recordation deadline under this paragraph.

(g) By August 1, 2012 and August 1 of each year thereafter, the 

Administrator will record in each TR NOX Ozone Season source's 

compliance account the TR NOX Ozone Season allowances allocated 

to the TR NOX Ozone Season units at the source, or in each 

appropriate Allowance Management System account the TR NOX Ozone 

Season allowances auctioned to TR NOX Ozone Season units, in 

accordance with §97.512(a)(2) through (8) and (12), or with a 

SIP revision approved under §52.38(b)(4) or (5) of this chapter,

for the control period in the year of the applicable recordation 

deadline under this paragraph.

(h) By August 1, 2012 and August 1 of each year thereafter, the

Administrator will record in each TR NOX Ozone Season source's 

compliance account the TR NOX Ozone Season allowances allocated 
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to the TR NOX Ozone Season units at the source in accordance with 

§97.512(b)(2) through (8) and (12) for the control period in the 

year of the applicable recordation deadline under this 

paragraph.

(i) By November 15, 2012 and November 15 of each year 

thereafter, the Administrator will record in each TR NOX Ozone 

Season source's compliance account the TR NOX Ozone Season

allowances allocated to the TR NOX Ozone Season units at the 

source in accordance with §97.512(a)(9) through (12), for the 

control period in the year of the applicable recordation 

deadline under this paragraph.

(j) By the date on which any allocation or auction results, 

other than an allocation or auction results described in 

paragraphs (a) through (i) of this section, of TR NOX Ozone 

Season allowances to a recipient is made by or are submitted to 

the Administrator in accordance with §97.511 or §97.512 or with 

a SIP revision approved under §52.38(b)(4) or (5) of this 

chapter, the Administrator will record such allocation or 

auction results in the appropriate Allowance Management System 

account. 

(k) When recording the allocation or auction of TR NOX Ozone 

Season allowances to a TR NOX Ozone Season unit or other entity 
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in an Allowance Management System account, the Administrator 

will assign each TR NOX Ozone Season allowance a unique 

identification number that will include digits identifying the 

year of the control period for which the TR NOX Ozone Season

allowance is allocated or auctioned.

§ 97.522 Submission of TR NOX Ozone Season allowance transfers.

(a) An authorized account representative seeking recordation of 

a TR NOX Ozone Season allowance transfer shall submit the 

transfer to the Administrator. 

(b) A TR NOX Ozone Season allowance transfer shall be correctly 

submitted if: 

(1) The transfer includes the following elements, in a format 

prescribed by the Administrator:

(i) The account numbers established by the Administrator for 

both the transferor and transferee accounts;

(ii) The serial number of each TR NOX Ozone Season allowance that 

is in the transferor account and is to be transferred; and

(iii) The name and signature of the authorized account 

representative of the transferor account and the date signed; 

and
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(2) When the Administrator attempts to record the transfer, the 

transferor account includes each TR NOX Ozone Season allowance 

identified by serial number in the transfer. 

§ 97.523 Recordation of TR NOX Ozone Season allowance transfers.

(a) Within 5 business days (except as provided in paragraph (b) 

of this section) of receiving a TR NOX Ozone Season allowance 

transfer that is correctly submitted under §97.522, the 

Administrator will record a TR NOX Ozone Season allowance 

transfer by moving each TR NOX Ozone Season allowance from the 

transferor account to the transferee account as specified in the 

transfer. 

(b) A TR NOX Ozone Season allowance transfer to or from a 

compliance account that is submitted for recordation after the 

allowance transfer deadline for a control period and that 

includes any TR 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 from such compliance account under §97.524 for the 

control period immediately before such allowance transfer 

deadline.
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(c) Where a TR NOX Ozone Season allowance transfer is not 

correctly submitted under §97.522, the Administrator will not 

record such transfer.

(d) Within 5 business days of recordation of a TR NOX Ozone 

Season allowance transfer under paragraphs (a) and (b) of the 

section, the Administrator will notify the authorized account 

representatives of both the transferor and transferee accounts.

(e) Within 10 business days of receipt of a TR NOX Ozone Season

allowance transfer that is not correctly submitted under 

§97.522, the Administrator will notify the authorized account 

representatives of both accounts subject to the transfer of:

(1) A decision not to record the transfer, and

(2) The reasons for such non-recordation.

§ 97.524 Compliance with TR NOX Ozone Season emissions 

limitation.

(a) Availability for deduction for compliance. TR NOX Ozone 

Season allowances are available to be deducted for compliance 

with a source's TR NOX Ozone Season emissions limitation for a 

control period in a given year only if the TR NOX Ozone Season

allowances:
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(1) Were allocated for such control period or a control period 

in a prior year; and

(2) Are held in the source’s compliance account as of the 

allowance transfer deadline for such control period. 

(b) Deductions for compliance. After the recordation, in 

accordance with §97.523, of TR NOX Ozone Season allowance 

transfers submitted by the allowance transfer deadline for a 

control period in a given year, the Administrator will deduct 

from each source’s compliance account TR NOX Ozone Season

allowances available under paragraph (a) of this section in 

order to determine whether the source meets the TR NOX Ozone 

Season emissions limitation for such control period, as follows:

(1) Until the amount of TR NOX Ozone Season allowances deducted 

equals the number of tons of total NOX emissions from all TR NOX

Ozone Season units at the source for such control period; or

(2) If there are insufficient TR NOX Ozone Season allowances to 

complete the deductions in paragraph (b)(1) of this section, 

until no more TR NOX Ozone Season allowances available under 

paragraph (a) of this section remain in the compliance account.

(c)(1) Identification of TR NOX Ozone Season allowances by serial 

number. The authorized account representative for a source's 
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compliance account may request that specific TR NOX Ozone Season

allowances, identified by serial number, in the compliance 

account be deducted for emissions or excess emissions for a 

control period in a given year in accordance with paragraph (b) 

or (d) of this section. In order to be complete, such request 

shall be submitted to the Administrator by the allowance 

transfer deadline for such control period and include, in a 

format prescribed by the Administrator, the identification of 

the TR NOX Ozone Season source and the appropriate serial 

numbers.

(2) First-in, first-out. The Administrator will deduct TR NOX

Ozone Season allowances under paragraph (b) or (d) of this 

section from the source's compliance account in accordance with 

a complete request under paragraph (c)(1) of this section or, in 

the absence of such request or in the case of identification of 

an insufficient amount of TR NOX Ozone Season allowances in such 

request, on a first-in, first-out accounting basis in the 

following order:

(i) Any TR NOX Ozone Season allowances that were allocated to the 

units at the source and not transferred out of the compliance 

account, in the order of recordation; and then
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(ii) Any TR NOX Ozone Season allowances that were allocated to 

any unit and transferred to and recorded in the compliance 

account pursuant to this subpart, in the order of recordation.

(d) Deductions for excess emissions. After making the 

deductions for compliance under paragraph (b) of this section 

for a control period in a year in which the TR NOX Ozone Season

source has excess emissions, the Administrator will deduct from 

the source's compliance account an amount of TR NOX Ozone Season

allowances, allocated for a control period in a prior year or 

the control period in the year of the excess emissions or in the 

immediately following year, equal to two times the number of 

tons of the source's excess emissions.

(e) Recordation of deductions. The Administrator will record in 

the appropriate compliance account all deductions from such an 

account under paragraphs (b) and (d) of this section.

§ 97.525 Compliance with TR NOX Ozone Season assurance 

provisions.

(a) Availability for deduction. TR NOX Ozone Season allowances 

are available to be deducted for compliance with the TR NOX Ozone 

Season assurance provisions for a control period in a given year 

by the owners and operators of a group of one or more TR NOX

Ozone Season sources and units in a State (and Indian country 
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within the borders of such State) only if the TR NOX Ozone Season

allowances: 

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

control period in the given year or in the immediately following 

year; and

(2) Are held in the assurance account, established by the 

Administrator for such owners and operators of such group of TR 

NOX Ozone Season sources and units in such State (and Indian 

country within the borders of such State) under paragraph (b)(3)

of this section, as of the deadline established in paragraph 

(b)(4) of this section. 

(b) Deductions for compliance. The Administrator will deduct TR 

NOX Ozone Season allowances available under paragraph (a) of this 

section for compliance with the TR NOX Ozone Season assurance 

provisions for a State for a control period in a given year in 

accordance with the following procedures:

(1) By June 1, 2013 and June 1 of each year thereafter, the 

Administrator will:

(i) Calculate, for each State (and Indian country within the 

borders of such State), the total NOX emissions from all TR NOX

Ozone Season units at TR NOX Ozone Season sources in the State 
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(and Indian country within the borders of such State) during the 

control period in the year before the year of this calculation 

deadline and the amount, if any, by which such total NOX

emissions exceed the State assurance level as described in 

§97.506(c)(2)(iii); and

(ii) Promulgate a notice of data availability of the results of 

the calculations required in paragraph (b)(1)(i) of this 

section, including separate calculations of the NOX emissions 

from each TR NOX Ozone Season source. 

(2) For each notice of data availability required in paragraph 

(b)(1)(ii) of this section and for any State (and Indian country 

within the borders of such State) identified in such notice as 

having TR NOX Ozone Season units with total NOX emissions 

exceeding the State assurance level for a control period in a 

given year, as described in §97.506(c)(2)(iii):

(i) By July 1 immediately after the promulgation of such notice, 

the designated representative of each TR NOX Ozone Season source 

in each such State (and Indian country within the borders of 

such State) shall submit a statement, in a format prescribed by 

the Administrator, providing for each TR NOX Ozone Season unit 

(if any) at the source that operates during, but is not 

allocated an amount of TR NOX Ozone Season allowances for, such
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control period, the unit’s allowable NOX emission rate for such 

control period and, if such rate is expressed in lb per mmBtu, 

the unit’s heat rate. 

(ii) By August 1 immediately after the promulgation of such 

notice, the Administrator will calculate, for each such State

(and Indian country within the borders of such State) and such 

control period and each common designated representative for 

such control period for a group of one or more TR NOX Ozone 

Season sources and units in the State (and Indian country within 

the borders of such State), the common designated 

representative’s share of the total NOX emissions from all TR NOX

Ozone Season units at TR NOX Ozone Season sources in the State

(and Indian country within the borders of such State), the 

common designated representative’s assurance level, and the 

amount (if any) of TR NOX Ozone Season allowances that the owners 

and operators of such group of sources and units must hold in 

accordance with the calculation formula in §97.506(c)(2)(i) and 

will promulgate a notice of data availability of the results of 

these calculations. 

(iii) The Administrator will provide an opportunity for 

submission of objections to the calculations referenced by the 

notice of data availability required in paragraph (b)(2)(ii) of 

this section and the calculations referenced by the relevant 
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notice of data availability required in paragraph (b)(1)(i) of 

this section.

(A) Objections shall be submitted by the deadline specified in 

such notice and shall be limited to addressing whether the 

calculations referenced in the relevant notice required under 

paragraph (b)(1)(ii) of this section and referenced in the 

notice required under paragraph (b)(2)(ii) of this section are 

in accordance with §97.506(c)(2)(iii), §§97.506(b) and 97.530 

through 97.535, the definitions of “common designated 

representative”, “common designated representative’s assurance 

level”, and “common designated representative’s share” in 

§97.502, and the calculation formula in §97.506(c)(2)(i).

(B) The Administrator will adjust the calculations to the extent 

necessary to ensure that they are in accordance with the 

provisions referenced in paragraph (b)(2)(iii)(A) of this 

section. By October 1 immediately after the promulgation of 

such notice, the Administrator will promulgate a notice of data 

availability of any adjustments that the Administrator 

determines to be necessary and the reasons for accepting or 

rejecting any objections submitted in accordance with paragraph 

(b)(2)(iii)(A) of this section.
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(3) For any State (and Indian country within the borders of such 

State) referenced in each notice of data availability required 

in paragraph (b)(2)(iii)(B) of this section as having TR NOX

Ozone Season units with total NOX emissions exceeding the State 

assurance level for a control period in a given year, the

Administrator will establish one assurance account for each set 

of owners and operators referenced, in the notice of data 

availability required under paragraph (b)(2)(iii)(B) of this 

section, as all of the owners and operators of a group of TR NOX

Ozone Season sources and units in the State (and Indian country 

within the borders of such State) having a common designated 

representative for such control period and as being required to 

hold TR NOX Ozone Season allowances. 

(4)(i) As of midnight of November 1 immediately after the 

promulgation of each notice of data availability required in 

paragraph (b)(2)(iii)(B) of this section, the owners and 

operators described in paragraph (b)(3) of this section shall 

hold in the assurance account established for the them and for 

the appropriate TR NOX Ozone Season sources, TR NOX Ozone Season

units, and State (and Indian country within the borders of such 

State) under paragraph (b)(3) of this section a total amount of 

TR NOX Ozone Season allowances, available for deduction under 

paragraph (a) of this section, equal to the amount such owners 
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and operators are required to hold with regard to such sources, 

units and State (and Indian country within the borders of such 

State) as calculated by the Administrator and referenced in such 

notice. 

(ii) Notwithstanding the allowance-holding deadline specified in 

paragraph (b)(4)(i) of this section, if November 1 is not a 

business day, then such allowance-holding deadline shall be 

midnight of the first business day thereafter.

(5) After November 1 (or the date described in paragraph 

(b)(4)(ii) of this section) immediately after the promulgation 

of each notice of data availability required in paragraph 

(b)(2)(iii)(B) of this section and after the recordation, in 

accordance with §97.523, of TR NOX Ozone Season allowance 

transfers submitted by midnight of such date, the Administrator 

will determine whether the owners and operators described in 

paragraph (b)(3) of this section hold, in the assurance account 

for the appropriate TR NOX Ozone Season sources, TR NOX Ozone 

Season units, and State (and Indian country within the borders 

of such State) established under paragraph (b)(3) of this 

section, the amount of TR NOX Ozone Season allowances available 

under paragraph (a) of this section that the owners and 

operators are required to hold with regard to such sources, 

units, and State (and Indian country within the borders of such 
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State) as calculated by the Administrator and referenced in the 

notice required in paragraph (b)(2)(iii)(B) of this section.

(6) Notwithstanding any other provision of this subpart and any 

revision, made by or submitted to the Administrator after the 

promulgation of the notice of data availability required in 

paragraph (b)(2)(iii)(B) of this section for a control period in 

a given year, of any data used in making the calculations 

referenced in such notice, the amounts of TR NOX Ozone Season

allowances that the owners and operators are required to hold in 

accordance with §97.506(c)(2)(i) for such control period shall 

continue to be such amounts as calculated by the Administrator 

and referenced in such notice required in paragraph 

(b)(2)(iii)(B) of this section, except as follows:

(i) If any such data are revised by the Administrator as a 

result of a decision in or settlement of litigation concerning 

such data on appeal under part 78 of this chapter of such 

notice, or on appeal under section 307 of the Clean Air Act of a 

decision rendered under part 78 of this chapter on appeal of 

such notice, then the Administrator will use the data as so 

revised to recalculate the amounts of TR NOX Ozone Season

allowances that owners and operators are required to hold in 

accordance with the calculation formula in §97.506(c)(2)(i) for 

such control period with regard to the TR NOX Ozone Season
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sources, TR NOX Ozone Season units, and State (and Indian country 

within the borders of such State) involved, provided that such 

litigation under part 78 of this chapter, or the proceeding 

under part 78 of this chapter that resulted in the decision 

appealed in such litigation under section 307 of the Clean Air 

Act, was initiated no later than 30 days after promulgation of 

such notice required in paragraph (b)(2)(iii)(B) of this 

section.

(ii) If any such data are revised by the owners and operators of

a TR NOX Ozone Season source and TR NOX Ozone Season unit whose 

designated representative submitted such data under paragraph 

(b)(2)(i) of this section, as a result of a decision in or 

settlement of litigation concerning such submission, then the 

Administrator will use the data as so revised to recalculate the 

amounts of TR NOX Ozone Season allowances that owners and 

operators are required to hold in accordance with the 

calculation formula in §97.506(c)(2)(i) for such control period 

with regard to the TR NOX Ozone Season sources, TR NOX Ozone 

Season units, and State (and Indian country within the borders 

of such State) involved, provided that such litigation was 

initiated no later than 30 days after promulgation of such 

notice required in paragraph (b)(2)(iii)(B) of this section.
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(iii) If the revised data are used to recalculate, in accordance 

with paragraphs (b)(6)(i) and (ii) of this section, the amount 

of TR NOX Ozone Season allowances that the owners and operators 

are required to hold for such control period with regard to the 

TR NOX Ozone Season sources, TR NOX Ozone Season units, and State 

(and Indian country within the borders of such State) involved—

(A) Where the amount of TR NOX Ozone Season allowances that the 

owners and operators are required to hold increases as a result 

of the use of all such revised data, the Administrator will 

establish a new, reasonable deadline on which the owners and 

operators shall hold the additional amount of TR NOX Ozone Season

allowances in the assurance account established by the 

Administrator for the appropriate TR NOX Ozone Season sources, TR 

NOX Ozone Season units, and State (and Indian country within the 

borders of such State) under paragraph (b)(3) of this section.

The owners’ and operators’ failure to hold such additional 

amount, as required, before the new deadline shall not be a 

violation of the Clean Air Act. The owners’ and operators’

failure to hold such additional amount, as required, as of the 

new deadline shall be a violation of the Clean Air Act. Each TR 

NOX Ozone Season allowance that the owners and operators fail to 

hold as required as of the new deadline, and each day in such
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control period, shall be a separate violation of the Clean Air 

Act. 

(B) For the owners and operators for which the amount of TR NOX

Ozone Season allowances required to be held decreases as a 

result of the use of all such revised data, the Administrator 

will record, in all accounts from which TR NOX Ozone Season

allowances were transferred by such owners and operators for 

such control period to the assurance account established by the 

Administrator for the appropriate at TR NOX Ozone Season sources, 

TR NOX Ozone Season units, and State (and Indian country within 

the borders of such State) under paragraph (b)(3) of this 

section, a total amount of the TR NOX Ozone Season allowances 

held in such assurance account equal to the amount of the 

decrease. If TR NOX Ozone Season allowances were transferred to 

such assurance account from more than one account, the amount of 

TR NOX Ozone Season allowances recorded in each such transferor 

account will be in proportion to the percentage of the total 

amount of TR NOX Ozone Season allowances transferred to such 

assurance account for such control period from such transferor 

account. 

(C) Each TR NOX Ozone Season allowance held under paragraph 

(b)(6)(iii)(A) of this section as a result of recalculation of 

requirements under the TR NOX Ozone Season assurance provisions 
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for such control period must be a TR NOX Ozone Season allowance 

allocated for a control period in a year before or the year 

immediately following, or in the same year as, the year of such 

control period. 

§ 97.526 Banking.

(a) A TR NOX Ozone Season allowance 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 TR NOX Ozone Season allowance that is held in a 

compliance account or a general account will remain in such 

account unless and until the TR NOX Ozone Season allowance is 

deducted or transferred under §97.511(c), §97.523, §97.524, 

§97.525, 97.527, or 97.528.

§ 97.527 Account error.

The Administrator may, at his or her sole discretion and on his 

or her own motion, correct any error in any Allowance Management 

System account. Within 10 business days of making such 

correction, the Administrator will notify the authorized account 

representative for the account.

§ 97.528 Administrator’s action on submissions.
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(a) The Administrator may review and conduct independent audits 

concerning any submission under the TR NOX Ozone Season Trading 

Program and make appropriate adjustments of the information in 

the submission.

(b) The Administrator may deduct TR NOX Ozone Season allowances 

from or transfer TR NOX Ozone Season allowances to a compliance 

account or an assurance account, based on the information in a 

submission, as adjusted under paragraph (a)(1) of this section, 

and record such deductions and transfers.

§ 97.529 [RESERVED]

§ 97.530 General monitoring, recordkeeping, and reporting 

requirements.

The owners and operators, and to the extent applicable, the 

designated representative, of a TR NOX Ozone Season unit, shall 

comply with the monitoring, recordkeeping, and reporting 

requirements as provided in this subpart and subpart H of part 

75 of this chapter. For purposes of applying such requirements, 

the definitions in §97.502 and in §72.2 of this chapter shall 

apply, 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 “TR NOX

Ozone Season unit,“ “designated representative,” and “continuous 
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emission monitoring system” (or “CEMS”) respectively as defined 

in §97.502, and the term “newly affected unit” shall be deemed 

to mean “newly affected TR NOX Ozone Season unit”. The owner or 

operator of a unit that is not a TR 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 TR NOX Ozone Season unit.

(a) Requirements for installation, certification, and data 

accounting. The owner or operator of each TR NOX Ozone Season 

unit shall:

(1) Install all monitoring systems required under this subpart 

for monitoring NOX mass emissions and individual unit heat input 

(including all systems required to monitor NOX emission rate, NOX

concentration, stack gas moisture content, stack gas flow rate, 

CO2 or O2 concentration, and fuel flow rate, as applicable, in 

accordance with §§75.71 and 75.72 of this chapter);

(2) Successfully complete all certification tests required under 

§97.531 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
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(3) Record, report, and quality-assure the data from the 

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

(b) Compliance deadlines. Except as provided in paragraph (e) 

of this section, the owner or operator shall meet the monitoring

system certification and other requirements of paragraphs (a)(1) 

and (2) of this section on or before the following dates and

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 TR NOX Ozone Season unit that 

commences commercial operation before July 1, 2011, May 1, 2012.

(2) For the owner or operator of a TR NOX Ozone Season unit that 

commences commercial operation on or after July 1, 2011 and that 

reports on an annual basis under §97.534(d), by the later of the 

following:

(i) 180 calendar days after the date on which the unit commences 

commercial operation; or

(ii) May 1, 2012.
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(3) For the owner or operator of a TR NOX Ozone Season unit that 

commences commercial operation on or after July 1, 2011 and that 

reports on a control period basis under §97.534(d)(2)(ii), by 

the following date:

(i) 180 calendar days 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 after 

the compliance date under paragraph (b)(3)(i) of this section.

(4) The owner or operator of a TR 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), or (3) of this section shall meet 

the requirements of §§75.4(e)(1) through (e)(4) of this chapter, 

except that:

(i) Such requirements shall apply to the monitoring systems 

required under §97.530 through §97.535, rather than the 

monitoring systems required under part 75 of this chapter;
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(ii) NOX emission rate, NOX concentration, stack gas moisture 

content, stack gas volumetric flow rate, and O2 or CO2

concentration data shall be determined and reported, rather than 

the data listed in §75.4(e)(2) of this chapter; and

(iii) Any petition for another procedure under §75.4(e)(2) of 

this chapter shall be submitted under §97.535, rather than 

§75.66.

(c) Reporting data. The owner or operator of a TR NOX Ozone 

Season unit that does not meet the applicable compliance date 

set forth in paragraph (b) of this section for any monitoring 

system under paragraph (a)(1) of this section shall, for each 

such monitoring system, determine, record, and report maximum 

potential (or, as appropriate, minimum potential) values for NOX

concentration, NOX emission rate, stack gas flow rate, stack gas 

moisture content, fuel flow rate, and any other parameters 

required to determine NOX mass emissions and heat input in 

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.

(d) Prohibitions. (1) No owner or operator of a TR NOX Ozone 

Season unit shall use any alternative monitoring system, 

alternative reference method, or any other alternative to any 
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requirement of this subpart without having obtained prior 

written approval in accordance with §97.535.

(2) No owner or operator of a TR NOX Ozone Season unit shall 

operate the unit so as to discharge, or allow to be discharged, 

NOX to the atmosphere without accounting for all such NOX in 

accordance with the applicable provisions of this subpart and 

part 75 of this chapter.

(3) No owner or operator of a TR 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 discharged into 

the atmosphere or heat input, except for periods of 

recertification or periods when calibration, quality assurance 

testing, or maintenance is performed in accordance with the 

applicable provisions of this subpart and part 75 of this 

chapter.

(4) No owner or operator of a TR 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:
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(i) During the period that the unit is covered by an exemption 

under §97.505 that is in effect;

(ii) The owner or operator is monitoring emissions from the unit 

with another certified monitoring system approved, in accordance 

with the applicable provisions of this subpart and part 75 of 

this chapter, by the Administrator for use at that unit that 

provides emission data for the same pollutant or parameter as 

the retired or discontinued monitoring system; or

(iii) The 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 §97.531(d)(3)(i).

(e) Long-term cold storage. The owner or operator of a TR NOX

Ozone Season unit is subject to the applicable provisions of 

§75.4(d) of this chapter concerning units in long-term cold 

storage.

§ 97.531 Initial monitoring system certification and 

recertification procedures.
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(a) The owner or operator of a TR NOX Ozone Season unit shall be 

exempt from the initial certification requirements of this 

section for a monitoring system under §97.530(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 appendices B, D, and 

E to part 75 of this chapter are fully met for the certified 

monitoring system described in paragraph (a)(1) of this section.

(b) The recertification provisions of this section shall apply 

to a monitoring system under §97.530(a)(1) that is 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 or §75.17 of this chapter, the designated representative 

shall resubmit the petition to the Administrator under §97.535 
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to determine whether the approval applies under the TR NOX Ozone 

Season Trading Program.

(d) Except as provided in paragraph (a) of this section, the 

owner or operator of a TR 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 §97.530(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 §97.530(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 §97.530(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 
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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 

§97.530(a)(1) that may significantly affect the ability of the 

system to accurately measure or record NOX mass emissions or heat 

input rate or to meet the quality-assurance and quality-control 

requirements of §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 
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system, and any excepted NOX monitoring system under appendix E 

to part 75 of this chapter, under §97.530(a)(1) are subject to 

the recertification requirements in §75.20(g)(6) of this 

chapter.

(3) Approval process for initial certification and 

recertification. For initial certification of a continuous 

monitoring system under §97.530(a)(1), paragraphs (d)(3)(i) 

through (v) of this section apply. For recertifications of such 

monitoring systems, paragraphs (d)(3)(i) through (iv) of this 

section and 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) apply, provided that in applying paragraphs 

(d)(3)(i) through (iv) of this section, the words 

“certification” and “initial certification” are replaced by the 

word “recertification” and the word “certified” is replaced by 

with the word “recertified”. 

(i) Notification of certification. The designated representative 

shall submit to the appropriate EPA Regional Office and the 

Administrator written notice of the dates of certification 

testing, in accordance with §97.533.

(ii) Certification application. The designated representative 
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shall submit to the Administrator 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 TR NOX Ozone 

Season Trading Program for a period not to exceed 120 days after 

receipt by the Administrator of the complete certification 

application for the monitoring system under paragraph (d)(3)(ii) 

of this section. Data measured and recorded by the provisionally 

certified monitoring system, in accordance with the requirements 

of part 75 of this chapter, will be considered valid qualityassured data (retroactive to the date and time of provisional 

certification), provided that the Administrator does not 

invalidate the provisional certification by issuing a notice of 

disapproval within 120 days of the date of receipt of the 

complete certification application by the Administrator.

(iv) Certification application approval process. The 

Administrator will issue a written notice of approval or 

disapproval of the certification application to the owner or 
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operator within 120 days of receipt of the complete 

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

section. In the event the Administrator does not issue such a 

notice within such 120-day period, each monitoring system that 

meets the applicable performance requirements of part 75 of this 

chapter and is included in the certification application will be 

deemed certified for use under the TR NOX Ozone Season Trading 

Program.

(A) Approval notice. If the certification application is 

complete and shows that each monitoring system meets the 

applicable performance requirements of part 75 of this chapter, 

then the Administrator will issue a written notice of approval 

of the certification application within 120 days of receipt.

(B) Incomplete application notice. If the certification 

application is not complete, then the Administrator will issue a 

written notice of incompleteness that sets a reasonable date by 

which the designated representative must submit the additional 

information required to complete the certification application. 

If the designated representative does not comply with the notice 

of incompleteness by the specified date, then the Administrator 

may issue a notice of disapproval under paragraph (d)(3)(iv)(C) 

of this section. 
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(C) Disapproval notice. If the certification application shows 

that any monitoring system does not meet the performance 

requirements of part 75 of this chapter or if the certification 

application is incomplete and the requirement for disapproval 

under paragraph (d)(3)(iv)(B) of this section is met, then the 

Administrator will issue a written notice of disapproval of the 

certification application. Upon issuance of such notice of 

disapproval, the provisional certification is invalidated by the 

Administrator and the data measured and recorded by each 

uncertified monitoring system shall not be considered valid 

quality-assured data beginning with the date and hour of 

provisional certification (as defined under § 75.20(a)(3) of 

this chapter). 

(D) Audit decertification. The Administrator may issue a notice 

of disapproval of the certification status of a monitor in 

accordance with § 97.532(b).

(v) Procedures for loss of certification. If the Administrator 

issues a notice of disapproval of a certification application 

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

disapproval of certification status under paragraph 

(d)(3)(iv)(D) of this section, then:
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(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 NOX emission rate (i.e., NOX-diluent) 

system, the maximum potential NOX emission rate, as defined in 

§72.2 of this chapter.

(2) For a disapproved NOX pollutant concentration monitor and 

disapproved flow monitor, respectively, the maximum potential 

concentration of NOX and the maximum potential flow rate, as 

defined in sections 2.1.2.1 and 2.1.4.1 of appendix A to part 75 

of this chapter.

(3) For a disapproved moisture monitoring system and disapproved 

diluent gas monitoring system, respectively, the minimum 

potential moisture percentage and either the maximum potential 

CO2 concentration or the minimum potential O2 concentration (as 

applicable), as defined in sections 2.1.5, 2.1.3.1, and 2.1.3.2 

of appendix A to part 75 of this chapter.
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(4) For a disapproved fuel flowmeter system, the maximum 

potential fuel flow rate, as defined in section 2.4.2.1 of 

appendix D to part 75 of this chapter.

(5) For a disapproved excepted NOX monitoring system under 

appendix E to part 75 of this chapter, the fuel-specific maximum 

potential NOX emission rate, as defined in §72.2 of this chapter.

(B) The designated representative shall submit a notification of 

certification retest dates and a new certification application 

in accordance with paragraphs (d)(3)(i) and (ii) of this 

section.

(C) The owner or operator shall repeat all certification tests 

or other requirements that were failed by the monitoring system, 

as indicated in the Administrator's notice of disapproval, no 

later than 30 unit operating days after the date of issuance of 

the notice of disapproval.

(e) 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 
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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.

(f) The designated representative of each unit for which the 

owner or operator intends to use an alternative monitoring 

system approved by the Administrator under subpart E of part 75 

of this chapter shall comply with the applicable notification 

and application procedures of §75.20(f) of this chapter.

§ 97.532 Monitoring system out-of-control periods.

(a) General provisions. Whenever any monitoring system fails to 

meet the quality-assurance and quality-control requirements or 

data validation requirements of part 75 of this chapter, data 

shall be substituted using the applicable missing data 

procedures in subpart D or subpart H of, or appendix D or 

appendix E to, part 75 of this chapter.

(b) Audit decertification. Whenever both an audit of a 

monitoring system and a review of the initial certification or 

recertification application reveal that any monitoring system 

should not have been certified or recertified because it did not 

meet a particular performance specification or other requirement 
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under §97.531 or the applicable provisions of part 75 of this 

chapter, both at the time of the initial certification or 

recertification application submission and at the time of the 

audit, the Administrator will issue a notice of disapproval of 

the certification status of such monitoring system. For the 

purposes of this paragraph, an audit shall be either a field 

audit or an audit of any information submitted to the 

Administrator or any State or permitting authority. By issuing 

the notice of disapproval, the Administrator revokes 

prospectively the certification status of the monitoring system. 

The data measured and recorded by the monitoring system shall 

not be considered valid quality-assured data from the date of 

issuance of the notification of the revoked certification status 

until the date and time that the owner or operator completes 

subsequently approved initial certification or recertification 

tests for the monitoring system. The owner or operator shall 

follow the applicable initial certification or recertification 

procedures in §97.531 for each disapproved monitoring system.

§ 97.533 Notifications concerning monitoring.

The designated representative of a TR NOX Ozone Season unit shall 

submit written notice to the Administrator in accordance with 

§75.61 of this chapter.
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§ 97.534 Recordkeeping and reporting.

(a) General provisions. The designated representative shall 

comply with all recordkeeping and reporting requirements in

paragraphs (b) through (e) of this section, the applicable 

recordkeeping and reporting requirements under §75.73 of this 

chapter, and the requirements of §97.514(a).

(b) Monitoring plans. The owner or operator of a TR NOX Ozone 

Season unit shall comply with requirements of §75.73(c) and (e) 

of this chapter. 

(c) Certification applications. The designated representative 

shall submit an application to the Administrator within 45 days 

after completing all initial certification or recertification 

tests required under §97.531, including the information required 

under §75.63 of this chapter.

(d) Quarterly reports. The designated representative shall 

submit quarterly reports, as follows:

(1) If the TR NOX Ozone Season unit is subject to the Acid Rain 

Program or a TR NOX Annual emissions limitation or if the owner 

or operator of such unit chooses to report on an annual basis 

under this subpart, the designated representative shall meet the 
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requirements of subpart H of part 75 of this chapter (concerning 

monitoring of NOX mass emissions) for such unit for the entire 

year and shall report the NOX mass emissions data and heat input 

data for such unit, in an electronic quarterly report in a 

format prescribed by the Administrator, for each calendar 

quarter beginning with:

(i) For a unit that commences commercial operation before July 

1, 2011, the calendar quarter covering May 1, 2012 through June 

30, 2012; or

(ii) For a unit that commences commercial operation on or after 

July 1, 2011, the calendar quarter corresponding to the earlier 

of the date of provisional certification or the applicable 

deadline for initial certification under §97.530(b), unless that 

quarter is the third or fourth quarter of 2011 or the first 

quarter of 2012, in which case reporting shall commence in the 

quarter covering May 1, 2012 through June 30, 2012.

(2) If the TR NOX Ozone Season unit is not subject to the Acid 

Rain Program or a TR NOX Annual emissions limitation, then the 

designated representative shall either:

(i) Meet the requirements of subpart H of part 75 (concerning 
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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, 2011, the calendar quarter covering May 1, 2012 through June 

30, 2012; or

(B) For a unit that commences commercial operation on or after 

July 1, 2011, the calendar quarter corresponding to the earlier 

of the date of provisional certification or the applicable 

deadline for initial certification under §97.530(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.
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(3) The designated representative shall submit each quarterly 

report to the Administrator within 30 days after 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.

(4) For TR NOX Ozone Season units that are also subject to the 

Acid Rain Program, TR NOX Annual Trading Program, TR SO2 Group 1 

Trading Program, or TR SO2 Group 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.

(5) The Administrator may review and conduct independent audits 

of any quarterly report in order to determine whether the 

quarterly report meets the requirements of this subpart and part 

75 of this chapter, including the requirement to use substitute 

data. 

(i) The Administrator will notify the designated representative 

of any determination that the quarterly report fails to meet any 

such requirements and specify in such notification any 
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corrections that the Administrator believes are necessary to 

make through resubmission of the quarterly report and a 

reasonable time period within which the designated 

representative must respond. Upon request by the designated 

representative, the Administrator may specify reasonable 

extensions of such time period. Within the time period 

(including any such extensions) specified by the Administrator, 

the designated representative shall resubmit the quarterly 

report with the corrections specified by the Administrator, 

except to the extent the designated representative provides 

information demonstrating that a specified correction is not 

necessary because the quarterly report already meets the 

requirements of this subpart and part 75 of this chapter that 

are relevant to the specified correction.

(6) Any resubmission of a quarterly report shall meet the 

requirements applicable to the submission of a quarterly report 

under this subpart and part 75 of this chapter, except for the 

deadline set forth in paragraph (d)(3) of this section.

(e) Compliance certification. The 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 
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emissions are correctly and fully monitored. The certification 

shall state that:

(1) The monitoring data submitted were recorded in accordance 

with the applicable requirements of this subpart and part 75 of 

this chapter, including the quality assurance procedures and 

specifications;

(2) For a unit with add-on NOX emission controls and for all 

hours where NOX data are substituted in accordance with 

§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.
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§ 97.535 Petitions for alternatives to monitoring, 

recordkeeping, or reporting requirements.

(a) The designated representative of a TR NOX Ozone Season unit 

may submit a petition under §75.66 of this chapter to the 

Administrator, requesting approval to apply an alternative to 

any requirement of §§97.530 through 97.534. 

(b) A petition submitted under paragraph (a) of this section 

shall include sufficient information for the evaluation of the 

petition, including, at a minimum, the following information:

(i) Identification of each unit and source covered by the 

petition;

(ii) A detailed explanation of why the proposed alternative is 

being suggested in lieu of the requirement;

(iii) A description and diagram of any equipment and procedures 

used in the proposed alternative;

(iv) A demonstration that the proposed alternative is consistent 

with the purposes of the requirement for which the alternative 

is proposed and with the purposes of this subpart and part 75 of 

this chapter and that any adverse effect of approving the 

alternative will be de minimis; and
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(v) Any other relevant information that the Administrator may 

require. 

(c) Use of an alternative to any requirement referenced in 

paragraph (a) of this section is in accordance with this subpart 

only to the extent that the petition is approved in writing by 

the Administrator and that such use is in accordance with such 

approval.

76. Part 97 is amended by adding subpart CCCCC to read as 

follows:

Subpart CCCCC—TR SO2 Group 1 Trading Program 

97.601 Purpose.

97.602 Definitions.

97.603 Measurements, abbreviations, and acronyms.

97.604 Applicability.

97.605 Retired unit exemption.

97.606 Standard requirements.

97.607 Computation of time.

97.608 Administrative appeal procedures.
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97.609 [Reserved]

97.610 State SO2 Group 1 trading budgets, new unit setasides, Indian country new unit set-asides and variability 

limits.

97.611 Timing requirements for TR SO2 Group 1 allowance 

allocations.

97.612 TR SO2 Group 1 allowance allocations to new units.

97.613 Authorization of designated representative and alternate 

designated representative.

97.614 Responsibilities of designated representative and 

alternate designated representative.

97.615 Changing designated representative and alternate 

designated representative; changes in owners and operators.

97.616 Certificate of representation.

97.617 Objections concerning designated representative and 

alternate designated representative.

97.618 Delegation by designated representative and alternate 

designated representative.

97.619 [Reserved]
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97.620 Establishment of compliance accounts and general 

accounts.

97.621 Recordation of TR SO2 Group 1 allowance allocations.

97.622 Submission of TR SO2 Group 1 allowance transfers.

97.623 Recordation of TR SO2 Group 1 allowance transfers.

97.624 Compliance with TR SO2 Group 1 emissions limitation.

97.625 Compliance with TR SO2 Group 1 assurance provisions.

97.626 Banking.

97.627 Account error.

97.628 Administrator’s action on submissions.

97.629 [RESERVED]

97.630 General monitoring, recordkeeping, and reporting 

requirements.

97.631 Initial monitoring system certification and 

recertification procedures.

97.632 Monitoring system out-of-control periods.

97.633 Notifications concerning monitoring.

97.634 Recordkeeping and reporting.
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97.635 Petitions for alternatives to monitoring, recordkeeping, 

or reporting requirements.

Subpart CCCCC—TR SO2 Group 1 Trading Program 

§ 97.601 Purpose.

This subpart sets forth the general, designated representative, 

allowance, and monitoring provisions for the Transport Rule (TR) 

SO2 Group 1 Trading Program, under section 110 of the Clean Air 

Act and §52.39 of this chapter, as a means of mitigating 

interstate transport of fine particulates and sulfur dioxide.

§ 97.602 Definitions.

The terms used in this subpart shall have the meanings set forth 

in this section as follows:

Acid Rain Program means a multi-state SO2 and NOX air pollution 

control and emission reduction program established by the 

Administrator under title IV of the Clean Air Act and parts 72 

through 78 of this chapter.

Administrator means the Administrator of the United States 

Environmental Protection Agency or the Director of the Clean Air 

Markets Division (or its successor determined by the 

Administrator) of the United States Environmental Protection 
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Agency, the Administrator's duly authorized representative under 

this subpart.

Allocate or allocation means, with regard to TR SO2 Group 1

allowances, the determination by the Administrator, State, or 

permitting authority, in accordance with this subpart and any 

SIP revision submitted by the State and approved by the 

Administrator under §52.39(d) (e), or (f) of this chapter, of 

the amount of such TR SO2 Group 1 allowances to be initially 

credited, at no cost to the recipient, to:

(1) A TR SO2 Group 1 unit;

(2) A new unit set-aside;

(3) An Indian country new unit set-aside; or

(4) An entity not listed in paragraphs (1) through (3) of this 

definition;

(5) Provided that, if the Administrator, State, or permitting 

authority initially credits, to a TR SO2 Group 1 unit qualifying 

for an initial credit, a credit in the amount of zero TR SO2

Group 1 allowances, the TR SO2 Group 1 unit will be treated as 

being allocated an amount (i.e., zero) of TR SO2 Group 1

allowances. 
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Allowable SO2 emission rate means, for a unit, the most stringent 

State or federal SO2 emission rate limit (in lb/MWhr or, if in 

lb/mmBtu, converted to lb/MWhr by multiplying it by the unit’s 

heat rate in mmBtu/MWhr) that is applicable to the unit and 

covers the longest averaging period not exceeding one year. 

Allowance Management System means the system by which the 

Administrator records allocations, deductions, and transfers of 

TR SO2 Group 1 allowances under the TR SO2 Group 1 Trading 

Program. Such allowances are allocated, recorded, held, 

deducted, or transferred only as whole allowances. 

Allowance Management System account means an account in the 

Allowance Management System established by the Administrator for 

purposes of recording the allocation, holding, transfer, or 

deduction of TR SO2 Group 1 allowances.

Allowance transfer deadline means, for a control period in a 

given year, midnight of March 1 (if it is a business day), or 

midnight of the first business day thereafter (if March 1 is not 

a business day), immediately after such control period and is 

the deadline by which a TR SO2 Group 1 allowance transfer must be 

submitted for recordation in a TR SO2 Group 1 source's compliance 

account in order to be available for use in complying with the 
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source's TR SO2 Group 1 emissions limitation for such control 

period in accordance with §§97.606 and 97.624.

Alternate designated representative means, for a TR SO2 Group 1

source and each TR SO2 Group 1 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 this 

subpart, to act on behalf of the designated representative in 

matters pertaining to the TR SO2 Group 1 Trading Program. If the 

TR SO2 Group 1 source is also subject to the Acid Rain Program, 

TR NOX Annual Trading Program, or TR NOX Ozone Season Trading 

Program, then this natural person shall be the same natural 

person as the alternate designated representative, as defined in 

the respective program. 

Assurance account means an Allowance Management System account, 

established by the Administrator under §97.625(b)(3) for certain 

owners and operators of a group of one or more TR SO2 Group 1

sources and units in a given State (and Indian country within 

the borders of such State), in which are held TR SO2 Group 1

allowances available for use for a control period in a given 

year in complying with the TR SO2 Group 1 assurance provisions in 

accordance with §§97.606 and 97.625. 
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Authorized account representative means, for a general account, 

the natural person who is authorized, in accordance with this 

subpart, to transfer and otherwise dispose of TR SO2 Group 1

allowances held in the general account and, for a TR SO2 Group 1

source’s compliance account, the designated representative of 

the source.

Automated data acquisition and handling system or DAHS means the 

component of the continuous emission monitoring system, or other 

emissions monitoring system approved for use under this subpart, 

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 this subpart. 

Biomass means—

(1) Any organic material grown for the purpose of being 

converted to energy;

(2) Any organic byproduct of agriculture that can be converted 

into energy; or

(3) Any material that can be converted into energy and is 

nonmerchantable for other purposes, that is segregated from 
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other material that is nonmerchantable for other purposes, and 

that is;

(i) A forest-related organic resource, including mill residues, 

precommercial thinnings, slash, brush, or byproduct from 

conversion of trees to merchantable material; or

(ii) A wood material, including pallets, crates, dunnage, 

manufacturing and construction materials (other than pressuretreated, chemically-treated, or painted wood products), and 

landscape or right-of-way tree trimmings.

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 unit means a unit in which the energy input to 

the unit is first used to produce useful thermal energy, where 

at least some of the reject heat from the useful thermal energy 

application or process is then used for electricity production.

Business day means a day that does not fall on a weekend or a 

federal holiday.

Certifying official means a natural person who is:
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(1) For a corporation, a president, secretary, treasurer, or 

vice-president of the corporation in charge of a principal 

business function or any other person who performs similar 

policy- or decision-making functions for the corporation;

(2) For a partnership or sole proprietorship, a general partner 

or the proprietor respectively; or

(3) For a local government entity or State, federal, or other 

public agency, a principal executive officer or ranking elected 

official.

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

Coal means “coal” as defined in §72.2 of this chapter.

Coal-derived fuel means any fuel (whether in a solid, liquid, or 

gaseous state) produced by the mechanical, thermal, or chemical 

processing of coal.

Cogeneration system means an integrated group, at a source, of 

equipment (including a boiler, or combustion turbine, and a 

steam turbine generator) designed to produce useful thermal 

energy for industrial, commercial, heating, or cooling purposes 

and electricity through the sequential use of energy. 
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Cogeneration unit means a stationary, fossil-fuel-fired boiler 

or stationary, fossil-fuel-fired combustion turbine that is a 

topping-cycle unit or a bottoming-cycle unit:

(1) Operating as part of a cogeneration system; and

(2) Producing on an annual average basis—

(i) For a topping-cycle 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 than 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 unit, useful power not less than 45 

percent of total energy input;

(3) Provided that the requirements in paragraph (2) of this 

definition shall not apply to a calendar year referenced in 

paragraph (2) of this definition during which the unit did not 

operate at all;
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(4) Provided that the total energy input under paragraphs 

(2)(i)(B) and (2)(ii) of this definition shall equal the unit's 

total energy input from all fuel, except biomass if the unit is 

a boiler; and

(5) Provided that, if, throughout its operation during the 12-

month period or a calendar year referenced in paragraph (2) of 

this definition, a unit is operated as part of a cogeneration 

system and the cogeneration system meets on a system-wide basis 

the requirement in paragraph (2)(i)(B) or (2)(ii) of this 

definition, the unit shall be deemed to meet such requirement 

during that 12-month period or calendar year. 

Combustion turbine means an enclosed device comprising:

(1) If the device is simple cycle, 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 device is combined cycle, the equipment described in 

paragraph (1) of this definition and any associated duct burner, 

heat recovery steam generator, and steam turbine.

Commence commercial operation means, with regard to a unit:
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(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 §97.605.

(i) For a unit that is a TR SO2 Group 1 unit under §97.604 on the 

later of January 1, 2005 or the date the unit commences 

commercial operation as defined in the introductory text of 

paragraph (1) of this definition and that subsequently undergoes 

a physical change or is moved to a new location or source, such 

date shall remain the date of commencement of commercial 

operation of the unit, which shall continue to be treated as the 

same unit.

(ii) For a unit that is a TR SO2 Group 1 unit under §97.604 on 

the later of January 1, 2005 or the date the unit commences 

commercial operation as defined in the introductory text of 

paragraph (1) of this definition and that is subsequently 

replaced by a unit at the same or a different source, such date 

shall remain the replaced unit's date of commencement of 

commercial operation, and the replacement unit shall be treated 

as a separate unit with a separate date for commencement of 

commercial operation as defined in paragraph (1) or (2) of this 

definition as appropriate.
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(2) Notwithstanding paragraph (1) of this definition and except 

as provided in §97.605, for a unit that is not a TR SO2 Group 1

unit under §97.604 on the later of January 1, 2005 or the date 

the unit commences commercial operation as defined in 

introductory text of paragraph (1) of this definition, the 

unit's date for commencement of commercial operation shall be 

the date on which the unit becomes a TR SO2 Group 1 unit under 

§97.604.

(i) For a unit with a date for commencement of commercial 

operation as defined in the introductory text of paragraph (2) 

of this definition and that subsequently undergoes a physical 

change or is moved to a different location or source, such date 

shall remain the date of commencement of commercial operation of 

the unit, which shall continue to be treated as the same unit.

(ii) For a unit with a date for commencement of commercial 

operation as defined in the introductory text of paragraph (2) 

of this definition and that is subsequently replaced by a unit 

at the same or a different source, such date shall remain the 

replaced unit's date of commencement of commercial operation, 

and the replacement unit shall be treated as a separate unit 

with a separate date for commencement of commercial operation as 

defined in paragraph (1) or (2) of this definition as 

appropriate.
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Common designated representative means, with regard to a control 

period in a given year, a designated representative where, as of 

April 1 immediately after the allowance transfer deadline for 

such control period, the same natural person is authorized under 

§§97.613(a) and 97.615(a) as the designated representative for a 

group of one or more TR SO2 Group 1 sources and units located in 

a State (and Indian country within the borders of such State).

Common designated representative’s assurance level means, with 

regard to a specific common designated representative and a 

State (and Indian country within the borders of such State) and 

control period in a given year for which the State assurance 

level is exceeded as described in §97.606(c)(2)(iii), the common 

designated representative’s share of the State SO2 Group 1

trading budget with the variability limit for the State for such 

control period. 

Common designated representative’s share means, with regard to a 

specific common designated representative for a control period 

in a given year:

(1) With regard to a total amount of SO2 emissions from all TR 

SO2 Group 1 units in a State (and Indian country within the 

borders of such State) during such control period, the total 

tonnage of SO2 emissions during such control period from a group 
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of one or more TR SO2 Group 1 units located in such State (and 

such Indian country) and having the common designated 

representative for such control period; 

(2) With regard to a State SO2 Group 1 trading budget for such

control period, the amount (rounded to the nearest allowance) 

equal to the sum of the total amount of TR SO2 Group 1 allowances 

allocated for such control period to a group of one or more TR 

SO2 Group 1 units located in the State (and Indian country within 

the borders of such State) and having the common designated 

representative for such control period and of the total amount 

of TR SO2 Group 1 allowances purchased by an owner or operator of 

such TR SO2 Group 1 units in an auction for such control period 

and submitted by the State or the permitting authority to the 

Administrator for recordation in the compliance accounts for 

such TR SO2 Group 1 units in accordance with the TR SO2 Group 1

allowance auction provisions in a SIP revision approved by the 

Administrator under §52.39(e) or (f) of this chapter, multiplied 

by the sum of the State SO2 Group 1 trading budget under 

§97.610(a) and the State’s variability limit under §97.610(b) 

for such control period and divided by such State SO2 Group 1

trading budget; 

(3) Provided that, in the case of a unit that operates during, 

but has no amount of TR SO2 Group 1 allowances allocated under 
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§§97.611 and 97.612 for, such control period, the unit shall be 

treated, solely for purposes of this definition, as being 

allocated an amount (rounded to the nearest allowance) of TR SO2

Group 1 allowances for such control period equal to the unit’s 

allowable SO2 emission rate applicable to such control period, 

multiplied by a capacity factor of 0.85 (if the unit is a boiler 

combusting any amount of coal or coal-derived fuel during such 

control period), 0.24 (if the unit is a simple combustion 

turbine during such control period), 0.67 (if the unit is a 

combined cycle turbine during such control period), 0.74 (if the 

unit is an integrated coal gasification combined cycle unit 

during such control period), or 0.36 (for any other unit), 

multiplied by the unit’s maximum hourly load as reported in 

accordance with this subpart and by 8,760 hours/control period, 

and divided by 2,000 lb/ton. 

Common stack means a single flue through which emissions from 2 

or more units are exhausted.

Compliance account means an Allowance Management System account, 

established by the Administrator for a TR SO2 Group 1 source 

under this subpart, in which any TR SO2 Group 1 allowance 

allocations to the TR SO2 Group 1 units at the source are 

recorded and in which are held any TR SO2 Group 1 allowances 

available for use for a control period in a given year in 
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complying with the source's TR SO2 Group 1 emissions limitation 

in accordance with §§97.606 and 97.624. 

Continuous emission monitoring system or CEMS means the 

equipment required under this subpart to sample, analyze, 

measure, and provide, by means of readings recorded at least 

once every 15 minutes and using an automated data acquisition 

and handling system (DAHS), a permanent record of SO2 emissions, 

stack gas volumetric flow rate, stack gas moisture content, and 

O2 or CO2 concentration (as applicable), in a manner consistent 

with part 75 of this chapter and §§97.630 through 97.635. The 

following systems are the principal types of continuous emission 

monitoring systems:

(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 SO2 monitoring system, consisting of a SO2 pollutant 

concentration monitor and an automated data acquisition and 

handling system and providing a permanent, continuous record of 

SO2 emissions, in parts per million (ppm);
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(3) 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 H2O;

(4) A CO2 monitoring system, consisting of a CO2 pollutant 

concentration monitor (or an O2 monitor plus suitable 

mathematical equations from which the CO2 concentration is 

derived) and an automated data acquisition and handling system 

and providing a permanent, continuous record of CO2 emissions, in 

percent CO2; and

(5) An O2 monitoring system, consisting of an O2 concentration 

monitor and an automated data acquisition and handling system 

and providing a permanent, continuous record of O2, in percent 

O2.

Control period means the period starting January 1 of a calendar 

year, except as provided in §97.606(c)(3), and ending on 

December 31 of the same year, inclusive.

Designated representative means, for a TR SO2 Group 1 source and 

each TR SO2 Group 1 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 this subpart, to 

represent and legally bind each owner and operator in matters 

pertaining to the TR SO2 Group 1 Trading Program. If the TR SO2
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Group 1 source is also subject to the Acid Rain Program, TR NOX

Annual Trading Program, or TR NOX Ozone Season Trading Program, 

then this natural person shall be the same natural person as the 

designated representative, as defined in the respective program. 

Emissions means air pollutants exhausted from a unit or source 

into the atmosphere, as measured, recorded, and reported to the 

Administrator by the designated representative, and as modified 

by the Administrator:

(1) In accordance with this subpart; and

(2) With regard to a period before the unit or source is 

required to measure, record, and report such air pollutants in 

accordance with this subpart, in accordance with part 75 of this 

chapter.

Excess emissions means any ton of emissions from the TR SO2 Group 

1 units at a TR SO2 Group 1 source during a control period in a 

given year that exceeds the TR SO2 Group 1 emissions limitation 

for the source for such control period.

Fossil fuel means—

(1) Natural gas, petroleum, coal, or any form of solid, liquid, 

or gaseous fuel derived from such material; or
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(2) For purposes of applying the limitation on “average annual 

fuel consumption of fossil fuel” in §§97.604(b)(2)(i)(B) and 

(ii), natural gas, petroleum, coal, or any form of solid, 

liquid, or gaseous fuel derived from such material for the 

purpose of creating useful heat.

Fossil-fuel-fired means, with regard to a unit, combusting any 

amount of fossil fuel in 2005 or any calendar year thereafter.

General account means an Allowance Management System account, 

established under this subpart, that is not a compliance account 

or an assurance account.

Generator means a device that produces electricity.

Gross electrical output means, for a unit, electricity made 

available for use, including any such electricity used in the 

power production process (which process includes, but is not 

limited to, any on-site processing or treatment of fuel 

combusted at the unit and any on-site emission controls).

Heat input means, for a unit for a specified period of time, the 

product (in mmBtu/time) of the gross calorific value of the fuel 

(in mmBtu/lb) fed into the unit multiplied by the fuel feed rate 

(in lb of fuel/time), as measured, recorded, and reported to the 

Administrator by the designated representative and as modified 
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by the Administrator in accordance with this subpart and 

excluding the heat derived from preheated combustion air, 

recirculated flue gases, or exhaust.

Heat input rate means, for a unit, the amount of heat input (in 

mmBtu) divided by unit operating time (in hr) or, for a unit and 

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.

Heat rate means, for a unit, the unit’s maximum design heat 

input (in Btu/hr), divided by the product of 1,000,000 Btu/mmBtu 

and the unit’s maximum hourly load.

Indian country means “Indian country” as defined in 18 U.S.C. 

1151.

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;
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(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, for a unit, the maximum amount 

of fuel per hour (in Btu/hr) that the unit is capable of 

combusting on a steady state basis as of the initial 

installation of the unit as specified by the manufacturer of the 

unit.

Monitoring system means any monitoring system that meets the 

requirements of this subpart, including a continuous emission 

monitoring system, an alternative monitoring system, or an 

excepted monitoring system under part 75 of this chapter.

Nameplate capacity means, starting from the initial installation 

of a generator, the maximum electrical generating output (in 

MWe, rounded to the nearest tenth) that the generator is capable 

of producing on a steady state basis and during continuous 

operation (when not restricted by seasonal or other deratings)

as of such installation as specified by the manufacturer of the 
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generator or, starting from the completion of any subsequent 

physical change in the generator resulting in an increase in the 

maximum electrical generating output 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 (in MWe, rounded to 

the nearest tenth) as of such completion as specified by the 

person conducting the physical change.

Natural gas means “natural gas” as defined in §72.2 of this 

chapter.

Newly affected TR SO2 Group 1 unit means a unit that was not a TR 

SO2 Group 1 unit when it began operating but that thereafter 

becomes a TR SO2 Group 1 unit. 

Operate or operation means, with regard to a unit, to combust 

fuel.

Operator means, for a TR SO2 Group 1 source or a TR SO2 Group 1

unit at a source respectively, any person who operates, 

controls, or supervises a TR SO2 Group 1 unit at the source or 

the TR SO2 Group 1 unit and shall include, but not be limited to, 

any holding company, utility system, or plant manager of such 

source or unit.
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Owner means, for a TR SO2 Group 1 source or a TR SO2 Group 1 unit 

at a source respectively, any of the following persons:

(1) Any holder of any portion of the legal or equitable title in 

a TR SO2 Group 1 unit at the source or the TR SO2 Group 1 unit;

(2) Any holder of a leasehold interest in a TR SO2 Group 1 unit 

at the source or the TR SO2 Group 1 unit, 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 TR SO2 Group 1 unit; and

(3) Any purchaser of power from a TR SO2 Group 1 unit at the 

source or the TR SO2 Group 1 unit under a life-of-the-unit, firm 

power contractual arrangement. 

Permanently retired means, with regard to a unit, a unit that is 

unavailable for service and that the unit’s owners and operators 

do not expect to return to service in the future. 

Permitting authority means “permitting authority” as defined in 

§§70.2 and 71.2 of this chapter.

Potential electrical output capacity means, for a unit, 33 

percent of the unit's maximum design heat input, divided by 
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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 

Administrator, to come into possession of a document, 

information, or correspondence (whether sent in hard copy or by 

authorized electronic transmission), as indicated in an official 

log, or by a notation made on the document, information, or 

correspondence, by the Administrator in the regular course of 

business.

Recordation, record, or recorded means, with regard to TR SO2

Group 1 allowances, the moving of TR SO2 Group 1 allowances by 

the Administrator into, out of, or between Allowance Management 

System accounts, for purposes of allocation, auction, transfer, 

or deduction.

Reference method means any direct test method of sampling and 

analyzing for an air pollutant as specified in §75.22 of this 

chapter.

Replacement, replace, or replaced means, with regard to a unit, 

the demolishing of a unit, or the permanent retirement and 

permanent disabling of a unit, and the construction of another 

unit (the replacement unit) to be used instead of the demolished 

or retired unit (the replaced unit).
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Sequential use of energy means:

(1) The use of reject heat from electricity production in a 

useful thermal energy application or process; or

(2) The use of reject heat from useful thermal energy 

application or process in electricity production.

Serial number means, for a TR SO2 Group 1 allowance, the unique 

identification number assigned to each TR SO2 Group 1 allowance 

by the Administrator.

Solid waste incineration unit means a stationary, fossil-fuelfired boiler or stationary, fossil-fuel-fired combustion turbine 

that is a “solid waste incineration unit” as defined in section 

129(g)(1) of the Clean Air Act.

Source means all buildings, structures, or installations located 

in one or more contiguous or adjacent properties under common 

control of the same person or persons. This definition does not 

change or otherwise affect the definition of “major source”, 

“stationary source”, or “source” as set forth and implemented in 

a title V operating permit program or any other program under 

the Clean Air Act. 
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State means one of the States that is subject to the TR SO2 Group 

1 Trading Program pursuant to §52.39(a),(b), (d), (e), and (f)

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;

(4) Provided that compliance with any “submission” or “service” 

deadline shall be determined by the date of dispatch, 

transmission, or mailing and not the date of receipt.

Topping-cycle unit means a unit in which the energy input to the 

unit is first used to produce useful power, including 

electricity, where at least some of the reject heat from the 

electricity production is then used to provide useful thermal 

energy.

Total energy input means, for a unit, total energy of all forms 

supplied to the unit, excluding energy produced by the unit. 
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Each form of energy supplied shall be measured by the lower 

heating value of that form of energy calculated as follows:

LHV = HHV − 10.55(W + 9H)

Where:

LHV = lower heating value of the form of energy in Btu/lb,

HHV = higher heating value of the form of energy in Btu/lb,

W = weight % of moisture in the form of energy, and

H = weight % of hydrogen in the form of energy.

Total energy output means, for a unit, the sum of useful power 

and useful thermal energy produced by the unit.

TR NOX Annual Trading Program means a multi-state NOX air 

pollution control and emission reduction program established in 

accordance with subpart AAAAA of this part and §52.38(a) of this 

chapter (including such a program that is revised in a SIP 

revision approved by the Administrator under §52.38(a)(3) or (4) 

of this chapter or that is established in a SIP revision 

approved by the Administrator under §52.38(a)(5) of this 

chapter), as a means of mitigating interstate transport of fine 

particulates and NOX.
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TR NOX Ozone Season Trading Program means a multi-state NOX air 

pollution control and emission reduction program established in 

accordance with subpart BBBBB of this part and §52.38(b) of this 

chapter (including such a program that is revised in a SIP 

revision approved by the Administrator under §52.38(b)(3) or (4) 

of this chapter or that is established in a SIP revision 

approved by the Administrator under §52.38(b)(5) of this 

chapter), as a means of mitigating interstate transport of ozone 

and NOX.

TR SO2 Group 1 allowance means a limited authorization issued and 

allocated or auctioned by the Administrator under this subpart, 

or by a State or permitting authority under a SIP revision 

approved by the Administrator under §52.39(d), (e), or (f) of 

this chapter, to emit one ton of SO2 during a control period of 

the specified calendar year for which the authorization is 

allocated or auctioned or of any calendar year thereafter under 

the TR SO2 Group 1 Trading Program. 

TR SO2 Group 1 allowance deduction or deduct TR SO2 Group 1

allowances means the permanent withdrawal of TR SO2 Group 1

allowances by the Administrator from a compliance account (e.g.,

in order to account for compliance with the TR SO2 Group 1

emissions limitation) or from an assurance account (e.g., in 
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order to account for compliance with the assurance provisions

under §§97.606 and 97.625). 

TR SO2 Group 1 allowances held or hold TR SO2 Group 1 allowances

means the TR SO2 Group 1 allowances treated as included in an 

Allowance Management System account as of a specified point in 

time because at that time they:

(1) Have been recorded by the Administrator in the account or 

transferred into the account by a correctly submitted, but not 

yet recorded, TR SO2 Group 1 allowance transfer in accordance 

with this subpart; and

(2) Have not been transferred out of the account by a correctly 

submitted, but not yet recorded, TR SO2 Group 1 allowance 

transfer in accordance with this subpart.

TR SO2 Group 1 emissions limitation means, for a TR SO2 Group 1

source, the tonnage of SO2 emissions authorized in a control 

period by the TR SO2 Group 1 allowances available for deduction 

for the source under §97.624(a) for such control period.

TR SO2 Group 1 source means a source that includes one or more TR 

SO2 Group 1 units.

TR SO2 Group 1 Trading Program means a multi-state SO2 air 

pollution control and emission reduction program established in 
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accordance with this subpart and §52.39(a), (b), (d) through 

(f), (j), and (k) of this chapter (including such a program that 

is revised in a SIP revision approved by the Administrator under 

§52.39(d) or (e) of this chapter or that is established in a SIP 

revision approved by the Administrator under §52.39(f) of this 

chapter), as a means of mitigating interstate transport of fine 

particulates and SO2.

TR SO2 Group 1 unit means a unit that is subject to the TR SO2

Group 1 Trading Program under §97.604.

Unit means a stationary, fossil-fuel-fired boiler, stationary, 

fossil-fuel-fired combustion turbine, or other stationary, 

fossil-fuel-fired combustion device. A unit that undergoes a 

physical change or is moved to a different location or source 

shall continue to be treated as the same unit. A unit (the 

replaced unit) that is replaced by another unit (the replacement 

unit) at the same or a different source shall continue to be 

treated as the same unit, and the replacement unit shall be 

treated as a separate unit.

Unit operating day means, with regard to a unit, a calendar day 

in which the unit combusts any fuel.

Unit operating hour or hour of unit operation means, with regard 

to a unit, an hour in which the unit combusts any fuel.
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Useful power means, with regard to a unit, electricity or 

mechanical energy that the unit makes available for use, 

excluding any such energy used in the power production process 

(which process includes, but is not limited to, any on-site 

processing or treatment of fuel combusted at the unit and any 

on-site emission controls).

Useful thermal energy means thermal energy that is:

(1) Made available to an industrial or commercial process (not a 

power production process), excluding any heat contained in 

condensate return or makeup water;

(2) Used in a heating application (e.g., space heating or 

domestic hot water heating); or

(3) Used in a space cooling application (i.e., in 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.

§ 97.603 Measurements, abbreviations, and acronyms.

Measurements, abbreviations, and acronyms used in this subpart 

are defined as follows:
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Btu—British thermal unit

CO2—carbon dioxide

H2O—water

hr—hour

kW—kilowatt electrical

kWh—kilowatt hour

lb—pound

mmBtu—million Btu

MWe—megawatt electrical

MWh—megawatt hour

NOX—nitrogen oxides

O2—oxygen

ppm—parts per million

scfh—standard cubic feet per hour

SO2—sulfur dioxide

yr—year
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§ 97.604 Applicability.

(a) Except as provided in paragraph (b) of this section:

(1) The following units in a State (and Indian country within 

the borders of such State) shall be TR SO2 Group 1 units, and any 

source that includes one or more such units shall be a TR SO2

Group 1 source, subject to the requirements of this subpart: any 

stationary, fossil-fuel-fired boiler or stationary, fossil-fuelfired combustion turbine serving at any time, on or after 

January 1, 2005, a generator with nameplate capacity of more 

than 25 MWe producing electricity for sale.

(2) If a stationary boiler or stationary combustion turbine 

that, under paragraph (a)(1) of this section, is not a TR SO2

Group 1 unit begins to combust fossil fuel or to serve a 

generator with nameplate capacity of more than 25 MWe producing 

electricity for sale, the unit shall become a TR SO2 Group 1 unit 

as provided in paragraph (a)(1) of this section on the first 

date on which it both combusts fossil fuel and serves such 

generator.

(b) Any unit in a State (and Indian country within the borders 

of such State) that otherwise is a TR SO2 Group 1 unit under 

paragraph (a) of this section and that meets the requirements 
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set forth in paragraph (b)(1)(i) or (2)(i) of this section shall 

not be a TR SO2 Group 1 unit:

(1)(i) Any unit:

(A) Qualifying as a cogeneration unit throughout the later of 

2005 or the 12-month period starting on the date the unit first 

produces electricity and continuing to qualify as a cogeneration 

unit throughout each calendar year ending after the later of 

2005 or such 12-month period; and

(B) Not supplying in 2005 or any calendar year thereafter more 

than one-third of the unit's potential electric output capacity 

or 219,000 MWh, whichever is greater, to any utility power 

distribution system for sale.

(ii) If, after qualifying under paragraph (b)(1)(i) of this 

section as not being a TR SO2 Group 1 unit, a unit subsequently 

no longer meets all the requirements of paragraph (b)(1)(i) of 

this section, the unit shall become a TR SO2 Group 1 unit 

starting on the earlier of January 1 after the first calendar 

year during which the unit first no longer qualifies as a 

cogeneration unit or January 1 after the first calendar year 

during which the unit no longer meets the requirements of 

paragraph (b)(1)(i)(B) of this section. The unit shall 

thereafter continue to be a TR SO2 Group 1 unit. 
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(2)(i) Any unit:

(A) Qualifying as a solid waste incineration unit throughout the 

later of 2005 or the 12-month period starting on the date the 

unit first produces electricity and continuing to qualify as a 

solid waste incineration unit throughout each calendar year 

ending after the later of 2005 or such 12-month period; and

(B) With an average annual fuel consumption of fossil fuel for 

the first 3 consecutive calendar years of operation starting no 

earlier than 2005 of less than 20 percent (on a Btu basis) and 

an average annual fuel consumption of fossil fuel for any 3 

consecutive calendar years thereafter of less than 20 percent 

(on a Btu basis).

(ii) If, after qualifying under paragraph (b)(2)(i) of this 

section as not being a TR SO2 Group 1 unit, a unit subsequently 

no longer meets all the requirements of paragraph (b)(1)(i) of 

this section, the unit shall become a TR SO2 Group 1 unit 

starting on the earlier of January 1 after the first calendar 

year during which the unit first no longer qualifies as a solid 

waste incineration unit or January 1 after the first 3 

consecutive calendar years after 2005 for which the unit has an 

average annual fuel consumption of fossil fuel of 20 percent or 
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more. The unit shall thereafter continue to be a TR SO2 Group 1 

unit.

(c) A certifying official of an owner or operator of any unit or 

other equipment may submit a petition (including any supporting 

documents) to the Administrator at any time for a determination 

concerning the applicability, under paragraphs (a) and (b) of 

this section or a SIP revision approved under §52.39(e) or (f) 

of this chapter, of the TR SO2 Group 1 Trading Program to the 

unit or other equipment.

(1) Petition content. The petition shall be in writing and 

include the identification of the unit or other equipment and 

the relevant facts about the unit or other equipment. The 

petition and any other documents provided to the Administrator 

in connection with the petition shall include the following 

certification statement, signed by the certifying official: “I 

am authorized to make this submission on behalf of the owners 

and operators of the unit or other equipment 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 
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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) Response. The Administrator will issue a written response to 

the petition and may request supplemental information determined 

by the Administrator to be relevant to such petition. The 

Administrator's determination concerning the applicability, 

under paragraphs (a) and (b) of this section, of the TR SO2 Group 

1 Trading Program to the unit or other equipment shall be 

binding on any State or permitting authority unless the 

Administrator determines that the petition or other documents or 

information provided in connection with the petition contained 

significant, relevant errors or omissions.

§ 97.605 Retired unit exemption.

(a)(1) Any TR SO2 Group 1 unit that is permanently retired shall 

be exempt from §97.606(b) and (c)(1), §97.624, and §§97.630 

through 97.635. 

(2) The exemption under paragraph (a)(1) of this section shall 

become effective the day on which the TR SO2 Group 1 unit is 

permanently retired. Within 30 days of the unit's permanent 

retirement, the designated representative shall submit a 
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statement to the Administrator. The statement shall state, in a 

format prescribed by the Administrator, that the unit was 

permanently retired on a specified date and will comply with the 

requirements of paragraph (b) of this section.

(b) Special provisions. (1) A unit exempt under paragraph (a) of 

this section shall not emit any SO2, 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 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 

designated representative of a unit exempt under paragraph (a) 

of this section shall comply with the requirements of the TR SO2

Group 1 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.
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(4) A unit exempt under paragraph (a) of this section shall lose 

its exemption on the first date on which the unit resumes 

operation. Such unit shall be treated, for purposes of applying 

allocation, monitoring, reporting, and recordkeeping 

requirements under this subpart, as a unit that commences 

commercial operation on the first date on which the unit resumes 

operation.

§ 97.606 Standard requirements.

(a) Designated representative requirements. The owners and 

operators shall comply with the requirement to have a designated 

representative, and may have an alternate designated 

representative, in accordance with §§97.613 through 97.618.

(b) Emissions monitoring, reporting, and recordkeeping 

requirements. (1) The owners and operators, and the designated 

representative, of each TR SO2 Group 1 source and each TR SO2

Group 1 unit at the source shall comply with the monitoring, 

reporting, and recordkeeping requirements of §§97.630 through 

97.635.

(2) The emissions data determined in accordance with §§97.630 

through 97.635 shall be used to calculate allocations of TR SO2

Group 1 allowances under §§97.611(a)(2) and (b) and 97.612 and 

to determine compliance with the TR SO2 Group 1 emissions 
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limitation and assurance provisions under paragraph (c) of this 

section, provided that, for each monitoring location from which 

mass emissions are reported, the mass emissions amount used in 

calculating such allocations and determining such compliance 

shall be the mass emissions amount for the monitoring location 

determined in accordance with §§97.630 through 97.635 and 

rounded to the nearest ton, with any fraction of a ton less than 

0.50 being deemed to be zero.

(c) SO2 emissions requirements. (1) TR SO2 Group 1 emissions 

limitation. (i) As of the allowance transfer deadline for a 

control period in a given year, the owners and operators of each 

TR SO2 Group 1 source and each TR SO2 Group 1 unit at the source 

shall hold, in the source's compliance account, TR SO2 Group 1

allowances available for deduction for such control period under 

§97.624(a) in an amount not less than the tons of total SO2

emissions for such control period from all TR SO2 Group 1 units 

at the source.

(ii) If total SO2 emissions during a control period in a given 

year from the TR SO2 Group 1 units at a TR SO2 Group 1 source are 

in excess of the TR SO2 Group 1 emissions limitation set forth in 

paragraph (c)(1)(i) of this section, then:
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(A) The owners and operators of the source and each TR SO2 Group 

1 unit at the source shall hold the TR SO2 Group 1 allowances 

required for deduction under §97.624(d); and

(B) The owners and operators of the source and each TR SO2 Group 

1 unit at the source shall pay any fine, penalty, or assessment 

or comply with any other remedy imposed, for the same 

violations, under the Clean Air Act, and each ton of such excess 

emissions and each day of such control period shall constitute a 

separate violation of this subpart and the Clean Air Act.

(2) TR SO2 Group 1 assurance provisions. (i) If total SO2

emissions during a control period in a given year from all TR SO2

Group 1 units at TR SO2 Group 1 sources in a State (and Indian 

country within the borders of such State) exceed the State 

assurance level, then the owners and operators of such sources 

and units in each group of one or more sources and units having 

a common designated representative for such control period,

where the common designated representative’s share of such SO2

emissions during such control period exceeds the common 

designated representative’s assurance level for the State and 

such control period, shall hold (in the assurance account 

established for the owners and operators of such group) TR SO2

Group 1 allowances available for deduction for such control 

period under §97.625(a) in an amount equal to two times the 
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product (rounded to the nearest whole number), as determined by 

the Administrator in accordance with §97.625(b), of multiplying—

(A) The quotient of the amount by which the common designated 

representative’s share of such SO2 emissions exceeds the common 

designated representative’s assurance level divided by the sum 

of the amounts, determined for all common designated 

representatives for such sources and units in the State (and 

Indian country within the borders of such State) for such 

control period, by which each common designated representative’s 

share of such SO2 emissions exceeds the respective common 

designated representative’s assurance level; and

(B) The amount by which total SO2 emissions from all TR SO2 Group 

1 units at TR SO2 Group 1 sources in the State (and Indian 

country within the borders of such State) for such control 

period exceed the State assurance level. 

(ii) The owners and operators shall hold the TR SO2 Group 1

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

as of midnight of November 1 (if it is a business day), or 

midnight of the first business day thereafter (if November 1 is 

not a business day), immediately after such control period. 

(iii) Total SO2 emissions from all TR SO2 Group 1 units at TR SO2

Group 1 sources in a State (and Indian country within the 
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borders of such State) during a control period in a given year 

exceed the State assurance level if such total SO2 emissions 

exceed the sum, for such control period, of the State SO2 Group 1

trading budget under §97.610(a) and the State’s variability 

limit under §97.610(b).

(iv) It shall not be a violation of this subpart or of the Clean 

Air Act if total SO2 emissions from all TR SO2 Group 1 units at 

TR SO2 Group 1 sources in a State (and Indian country within the 

borders of such State) during a control period exceed the State 

assurance level or if a common designated representative’s share 

of total SO2 emissions from the TR SO2 Group 1 units at TR SO2

Group 1 sources in a State (and Indian country within the 

borders of such State) during a control period exceeds the 

common designated representative’s assurance level. 

(v) To the extent the owners and operators fail to hold TR SO2

Group 1 allowances for a control period in a given year in 

accordance with paragraphs (c)(2)(i) through (iii) of this 

section, 

(A) The owners and operators shall pay any fine, penalty, or 

assessment or comply with any other remedy imposed under the 

Clean Air Act; and
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(B) Each TR SO2 Group 1 allowance that the owners and operators 

fail to hold for such control period in accordance with 

paragraphs (c)(2)(i) through (iii) of this section and each day 

of such control period shall constitute a separate violation of 

this subpart and the Clean Air Act.

(3) Compliance periods. A TR SO2 Group 1 unit shall be subject 

to the requirements under paragraphs (c)(1) and (c)(2) of this 

section for the control period starting on the later of January 

1, 2012 or the deadline for meeting the unit's monitor 

certification requirements under §97.630(b) and for each control 

period thereafter.

(4) Vintage of allowances held for compliance. (i) A TR SO2

Group 1 allowance held for compliance with the requirements 

under paragraph (c)(1)(i) of this section for a control period 

in a given year must be a TR SO2 Group 1 allowance that was 

allocated for such control period or a control period in a prior 

year.

(ii) A TR SO2 Group 1 allowance held for compliance with the 

requirements under paragraphs (c)(1)(ii)(A) and (2)(i) through 

(iii) of this section for a control period in a given year must 

be a TR SO2 Group 1 allowance that was allocated for a control 
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period in a prior year or the control period in the given year 

or in the immediately following year.

(5) Allowance Management System requirements. Each TR SO2 Group 1

allowance shall be held in, deducted from, or transferred into, 

out of, or between Allowance Management System accounts in 

accordance with this subpart.

(6) Limited authorization. A TR SO2 Group 1 allowance is a 

limited authorization to emit one ton of SO2 during the control 

period in one year. Such authorization is limited in its use 

and duration as follows:

(i) Such authorization shall only be used in accordance with the 

TR SO2 Group 1 Trading Program; and 

(ii) Notwithstanding any other provision of this subpart, the 

Administrator has the authority to terminate or limit the use 

and duration of such authorization to the extent the 

Administrator determines is necessary or appropriate to 

implement any provision of the Clean Air Act. 

(7) Property right. A TR SO2 Group 1 allowance does not 

constitute a property right.

(d) Title V permit requirements. (1) No title V permit revision 

shall be required for any allocation, holding, deduction, or 
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transfer of TR SO2 Group 1 allowances in accordance with this 

subpart.

(2) A description of whether a unit is required to monitor and 

report SO2 emissions using a continuous emission monitoring 

system (under subpart H of part 75 of this chapter), an excepted 

monitoring system (under appendices D and E to part 75 of this 

chapter), a low mass emissions excepted monitoring methodology 

(under §75.19 of this chapter), or an alternative monitoring 

system (under subpart E of part 75 of this chapter) in 

accordance with §§97.630 through 97.635 may be added to, or 

changed in, a title V permit using minor permit modification 

procedures in accordance with §§70.7(e)(2) and 71.7(e)(1) of 

this chapter, provided that the requirements applicable to the 

described monitoring and reporting (as added or changed, 

respectively) are already incorporated in such permit. This 

paragraph explicitly provides that the addition of, or change 

to, a unit’s description as described in the prior sentence is 

eligible for minor permit modification procedures in accordance 

with §§70.7(e)(2)(i)(B) and 71.7(e)(1)(i)(B) of this chapter. 

(e) Additional recordkeeping and reporting requirements. (1) 

Unless otherwise provided, the owners and operators of each TR 

SO2 Group 1 source and each TR SO2 Group 1 unit at the source 

shall keep on site at the source each of the following documents 
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(in hardcopy or electronic format) 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 Administrator.

(i) The certificate of representation under §97.616 for the 

designated representative for the source and each TR SO2 Group 1

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 certificate of 

representation and documents are superseded because of the 

submission of a new certificate of representation under §97.616 

changing the designated representative.

(ii) All emissions monitoring information, in accordance with 

this subpart.

(iii) Copies of all reports, compliance certifications, and 

other submissions and all records made or required under, or to 

demonstrate compliance with the requirements of, the TR SO2 Group 

1 Trading Program.

(2) The designated representative of a TR SO2 Group 1 source and 

each TR SO2 Group 1 unit at the source shall make all submissions 

required under the TR SO2 Group 1 Trading Program, except as 
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provided in §97.618. This requirement does not change, create 

an exemption from, or or otherwise affect the responsible 

official submission requirements under a title V operating 

permit program in parts 70 and 71 of this chapter. 

(f) Liability. (1) Any provision of the TR SO2 Group 1 Trading 

Program that applies to a TR SO2 Group 1 source or the designated 

representative of a TR SO2 Group 1 source shall also apply to the 

owners and operators of such source and of the TR SO2 Group 1

units at the source.

(2) Any provision of the TR SO2 Group 1 Trading Program that 

applies to a TR SO2 Group 1 unit or the designated representative 

of a TR SO2 Group 1 unit shall also apply to the owners and 

operators of such unit.

(g) Effect on other authorities. No provision of the TR SO2

Group 1 Trading Program or exemption under §97.605 shall be 

construed as exempting or excluding the owners and operators, 

and the designated representative, of a TR SO2 Group 1 source or 

TR SO2 Group 1 unit from compliance with any other provision of 

the applicable, approved State implementation plan, a federally 

enforceable permit, or the Clean Air Act.

§ 97.607 Computation of time.
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(a) Unless otherwise stated, any time period scheduled, under 

the TR SO2 Group 1 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 TR SO2 Group 1 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 TR SO2 Group 1 Trading Program, is not a 

business day, the time period shall be extended to the next 

business day.

§ 97.608 Administrative appeal procedures.

The administrative appeal procedures for decisions of the 

Administrator under the TR SO2 Group 1 Trading Program are set 

forth in part 78 of this chapter.

§ 97.609 [Reserved]

§ 97.610 State SO2 Group 1 trading budgets, new unit set-asides, 

Indian country new unit set-aside, and variability limits.

(a) The State SO2 Group 1 trading budgets, new unit set-asides, 

and Indian country new unit set-asides for allocations of TR SO2
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Group 1 allowances for the control periods in 2012 and 

thereafter are as follows:

State

SO2 Group 1 trading 

budget (tons)*

for 2012 and 2013

New unit setaside (tons)

for 2012 and 

2013

Indian country 

new unit setaside (tons)

for 2012 and 2013

Illinois 234,889 11,744 ---

Indiana 285,424 8,563 ---

Iowa 107,085 2,035 107

Kentucky 232,662 13,960 ---

Maryland 30,120 602 ---

Michigan 229,303 4,357 229

Missouri 207,466 4,149 ---

New Jersey 5,574 111 ---

New York 27,325 520 27

North 

Carolina 136,881 10,813 137

Ohio 310,230 6,205 ---

Pennsylvania 278,651 5,573 ---

Tennessee 148,150 2,963 ---

Virginia 70,820 2,833 ---

West 

Virginia 146,174 10,232 ---

Wisconsin 79,480 3,894 80

State

SO2 Group 1 

trading budget 

(tons)*

for 2014 and 

thereafter

New unit setaside (tons)

for 2014 and 

thereafter

Indian country 

new unit setaside (tons)

for 2014 and 

thereafter

Illinois 124,123 6,206 ---

Indiana 161,111 4,833 ---

Iowa 75,184 1,429 75

Kentucky 106,284 6,377 ---
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Maryland 28,203 564 ---

Michigan 143,995 2,736 144

Missouri 165,941 3,319 ---

New Jersey 5,574 111 ---

New York 18,585 353 19

North 

Carolina 57,620 4,552 58

Ohio 137,077 2,742 ---

Pennsylvania 112,021 2,240 ---

Tennessee 58,833 1,177 ---

Virginia 35,057 1,402 ---

West 

Virginia 75,668 5,297 ---

Wisconsin 40,126 1,966 40

* Each trading budget includes the new unit set-aside and, where 

applicable, the Indian country new unit set-aside and does not 

include the variability limit.

(b) The States’ variability limits for the State SO2 Group 1

trading budgets for the control periods in 2012 and thereafter 

are as follows:

State

Variability limits

for 2012 and 2013

Variability limits

for 2014 and thereafter

Illinois 42,280 22,342

Indiana 51,376 29,000

Iowa 19,275 13,533

Kentucky 41,879 19,131

Maryland 5,422 5,077

Michigan 41,275 25,919

Missouri 37,344 29,869

New Jersey 1,003 1,003

New York 4,919 3,345

North 24,639 10,372
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Carolina

Ohio 55,841 24,674

Pennsylvania 50,157 20,164

Tennessee 26,667 10,590

Virginia 12,748 6,310

West 

Virginia 26,311 13,620

Wisconsin 14,306 7,223

§ 97.611 Timing requirements for TR SO2 Group 1 allowance 

allocations.

(a) Existing units. (1) TR SO2 Group 1 allowances are allocated, 

for the control periods in 2012 and each year thereafter, as 

provided in a notice of data availability issued by the 

Administrator. Providing an allocation to a unit in such notice 

does not constitute a determination that the unit is a TR SO2

Group 1 unit, and not providing an allocation to a unit in such 

notice does not constitute a determination that the unit is not 

a TR SO2 Group 1 unit. 

(2) Notwithstanding paragraph (a)(1) of this section, if a unit 

provided an allocation in the notice of data availability issued 

under paragraph (a)(1) of this section does not operate, 

starting after 2011, during the control period in two 

consecutive years, such unit will not be allocated the TR SO2

Group 1 allowances provided in such notice for the unit for the 
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control periods in the fifth year after the first such year and 

in each year after that fifth year. All TR SO2 Group 1

allowances that would otherwise have been allocated to such unit 

will be allocated to the new unit set-aside for the State where 

such unit is located and for the respective years involved. If 

such unit resumes operation, the Administrator will allocate TR 

SO2 Group 1 allowances to the unit in accordance with paragraph 

(b) of this section. 

(b) New units. (1) New unit set-asides. (i) By June 1, 2012 

and June 1 of each year thereafter, the Administrator will 

calculate the TR SO2 Group 1 allowance allocation to each TR SO2

Group 1 unit in a State, in accordance with §97.612(a)(2) 

through (7) and (12), for the control period in the year of the 

applicable calculation deadline under this paragraph and will 

promulgate a notice of data availability of the results of the 

calculations.

(ii) For each notice of data availability required in paragraph 

(b)(1)(i) of this section, the Administrator will provide an 

opportunity for submission of objections to the calculations 

referenced in such notice. 

(A) Objections shall be submitted by the deadline specified in 

each notice of data availability required in paragraph (b)(1)(i) 
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of this section and shall be limited to addressing whether the 

calculations (including the identification of the TR SO2 Group 1 

units) are in accordance with §97.612(a)(2) through (7) and (12)

and §§97.606(b)(2) and 97.630 through 97.635. 

(B) The Administrator will adjust the calculations to the extent 

necessary to ensure that they are in accordance with the 

provisions referenced in paragraph (b)(1)(ii)(A) of this 

section. By August 1 immediately after the promulgation of each 

notice of data availability required in paragraph (b)(1)(i) of 

this section, the Administrator will promulgate a notice of data 

availability of any adjustments that the Administrator 

determines to be necessary with regard to allocations under 

§97.612(a)(2) through (7) and (12) and the reasons for accepting 

or rejecting any objections submitted in accordance with 

paragraph (b)(1)(ii)(A) of this section. 

(iii) If the new unit set-aside for such control period contains 

any TR SO2 Group 1 allowances that have not been allocated in the 

applicable notice of data availability required in paragraph 

(b)(1)(ii) of this section, the Administrator will promulgate, 

by December 15 immediately after such notice, a notice of data 

availability that identifies any TR SO2 Group 1 units that 

commenced commercial operation during the period starting 
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January 1 of the year before the year of such control period and 

ending November 30 of year of such control period.

(iv) For each notice of data availability required in paragraph 

(b)(1)(iii) of this section, the Administrator will provide an 

opportunity for submission of objections to the identification 

of TR SO2 annual units in such notice. 

(A) Objections shall be submitted by the deadline specified in 

each notice of data availability required in paragraph 

(b)(1)(iii) of this section and shall be limited to addressing 

whether the identification of TR SO2 annual units in such notice 

is in accordance with paragraph (b)(1)(iii) of this section. 

(B) The Administrator will adjust the identification of TR SO2

Group 1 units in the each notice of data availability required 

in paragraph (b)(1)(iii) of this section to the extent necessary 

to ensure that it is in accordance with paragraph (b)(1)(iii) of 

this section and will calculate the TR SO2 Group 1 allowance 

allocation to each TR SO2 Group 1 unit in accordance with 

§97.612(a)(9), (10), and (12) and §§97.606(b)(2) and 97.630 

through 97.635. By February 15 immediately after the 

promulgation of each notice of data availability required in 

paragraph (b)(1)(iii) of this section, the Administrator will 

promulgate a notice of data availability of any adjustments of 
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the identification of TR SO2 Group 1 units that the Administrator 

determines to be necessary, the reasons for accepting or 

rejecting any objections submitted in accordance with paragraph 

(b)(1)(iv)(A) of this section, and the results of such 

calculations.

(v) To the extent any TR SO2 Group 1 allowances are added to the 

new unit set-aside after promulgation of each notice of data 

availability required in paragraph (b)(1)(iv) of this section, 

the Administrator will promulgate additional notices of data 

availability, as deemed appropriate, of the allocation of such 

TR SO2 Group 1 allowances in accordance with §97.612(a)(10). 

(2) Indian country new unit set-asides. (i) By June 1, 2012 and 

June 1 of each year thereafter, the Administrator will calculate 

the TR SO2 Group 1 allowance allocation to each TR SO2 Group 1

unit in Indian country within the borders of a State, in 

accordance with §97.612(b)(2) through (7) and (12), for the 

control period in the year of the applicable calculation 

deadline under this paragraph and will promulgate a notice of 

data availability of the results of the calculations.

(ii) For each notice of data availability required in paragraph 

(b)(2)(i) of this section, the Administrator will provide an 
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opportunity for submission of objections to the calculations 

referenced in such notice. 

(A) Objections shall be submitted by the deadline specified in 

each notice of data availability required in paragraph (b)(2)(i) 

of this section and shall be limited to addressing whether the 

calculations (including the identification of the TR SO2 Group 1 

units) are in accordance with §97.612(b)(2) through (7) and (12)

and §§97.606(b)(2) and 97.630 through 97.635. 

(B) The Administrator will adjust the calculations to the extent 

necessary to ensure that they are in accordance with the 

provisions referenced in paragraph (b)(2)(ii)(A) of this 

section. By August 1 immediately after the promulgation of each 

notice of data availability required in paragraph (b)(2)(i) of 

this section, the Administrator will promulgate a notice of data 

availability of any adjustments that the Administrator 

determines to be necessary with regard to allocations under 

§97.612(b)(2) through (7) and (12) and the reasons for accepting 

or rejecting any objections submitted in accordance with 

paragraph (b)(2)(ii)(A) of this section. 

(iii) If the Indian country new unit set-aside for such control 

period contains any TR SO2 Group 1 allowances that have not been 

allocated in the applicable notice of data availability required 
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in paragraph (b)(2)(ii) of this section, the Administrator will 

promulgate, by December 15 immediately after such notice, a 

notice of data availability that identifies any TR SO2 Group 1

units that commenced commercial operation during the period 

starting January 1 of the year before the year of such control 

period and ending November 30 of year of such control period.

(iv) For each notice of data availability required in paragraph 

(b)(2)(iii) of this section, the Administrator will provide an 

opportunity for submission of objections to the identification 

of TR SO2 annual units in such notice. 

(A) Objections shall be submitted by the deadline specified in 

each notice of data availability required in paragraph 

(b)(2)(iii) of this section and shall be limited to addressing 

whether the identification of TR SO2 annual units in such notice 

is in accordance with paragraph (b)(2)(iii) of this section. 

(B) The Administrator will adjust the identification of TR SO2

Group 1 units in the each notice of data availability required 

in paragraph (b)(2)(iii) of this section to the extent necessary 

to ensure that it is in accordance with paragraph (b)(2)(iii) of 

this section and will calculate the TR SO2 Group 1 allowance 

allocation to each TR SO2 Group 1 unit in accordance with 

§97.612(b)(9), (10), and (12) and §§97.606(b)(2) and 97.630 
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through 97.635. By February 15 immediately after the 

promulgation of each notice of data availability required in 

paragraph (b)(2)(iii) of this section, the Administrator will 

promulgate a notice of data availability of any adjustments of 

the identification of TR SO2 Group 1 units that the Administrator 

determines to be necessary, the reasons for accepting or 

rejecting any objections submitted in accordance with paragraph 

(b)(2)(iv)(A) of this section, and the results of such 

calculations. 

(v) To the extent any TR SO2 Group 1 allowances are added to the

Indian country new unit set-aside after promulgation of each 

notice of data availability required in paragraph (b)(2)(iv) of 

this section, the Administrator will promulgate additional 

notices of data availability, as deemed appropriate, of the 

allocation of such TR NOX Annual allowances in accordance with 

§97.612(b)(10). 

(c) Units incorrectly allocated TR SO2 Group 1 allowances. (1) 

For each control period in 2012 and thereafter, if the 

Administrator determines that TR SO2 Group 1 allowances were 

allocated under paragraph (a) of this section, or under a 

provision of a SIP revision approved under §52.39(d), (e), or 

(f) of this chapter, where such control period and the recipient 

are covered by the provisions of paragraph (c)(1)(i) of this 
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section or were allocated under §97.612(a)(2) through (7), (9), 

and (12) and (b)(2) through (7), (9), and (12), or under a 

provision of a SIP revision approved under §52.39(e) or (f) of 

this chapter, where such control period and the recipient are 

covered by the provisions of paragraph (c)(1)(ii) of this 

section, then the Administrator will notify the designated 

representative of the recipient and will act in accordance with 

the procedures set forth in paragraphs (c)(2) through (5) of 

this section:

(i)(A) The recipient is not actually a TR SO2 Group 1 unit under 

§97.604 as of January 1, 2012 and is allocated TR SO2 Group 1

allowances for such control period or, in the case of an 

allocation under a provision of a SIP revision approved under 

§52.39(d), (e), or (f) of this chapter, the recipient is not 

actually a TR SO2 Group 1 unit as of January 1, 2012 and is 

allocated TR SO2 Group 1 allowances for such control period that 

the SIP revision provides should be allocated only to recipients 

that are TR SO2 Group 1 units as of January 1, 2012; or

(B) The recipient is not located as of January 1 of the control 

period in the State from whose SO2 Group 1 trading budget the TR 

SO2 Group 1 allowances allocated under paragraph (a) of this 

section, or under a provision of a SIP revision approved under
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§52.39(d), (e), or (f) of this chapter, were allocated for such 

control period. 

(ii) The recipient is not actually a TR SO2 Group 1 unit under

§97.604 as of January 1 of such control period and is allocated 

TR SO2 Group 1 allowances for such control period or, in the case 

of an allocation under a provision of a SIP revision approved 

under §52.39(d), (e), or (f) of this chapter, the recipient is 

not actually a TR SO2 Group 1 unit as of January 1 of such 

control period and is allocated TR SO2 Group 1 allowances for 

such control period that the SIP revision provides should be 

allocated only to recipients that are TR SO2 Group 1 units as of 

January 1 of such control period. 

(2) Except as provided in paragraph (c)(3) or (4) of this 

section, the Administrator will not record such TR SO2 Group 1

allowances under §97.621.

(3) If the Administrator already recorded such TR SO2 Group 1

allowances under §97.621 and if the Administrator makes the 

determination under paragraph (c)(1) of this section before 

making deductions for the source that includes such recipient 

under §97.624(b) for such control period, then the Administrator 

will deduct from the account in which such TR SO2 Group 1

allowances were recorded an amount of TR SO2 Group 1 allowances 
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allocated for the same or a prior control period equal to the 

amount of such already recorded TR SO2 Group 1 allowances. The 

authorized account representative shall ensure that there are 

sufficient TR SO2 Group 1 allowances in such account for 

completion of the deduction.

(4) If the Administrator already recorded such TR SO2 Group 1

allowances under §97.621 and if the Administrator makes the 

determination under paragraph (c)(1) of this section after 

making deductions for the source that includes such recipient 

under §97.624(b) for such control period, then the Administrator 

will not make any deduction to take account of such already 

recorded TR SO2 Group 1 allowances. 

(5)(i) With regard to the TR SO2 Group 1 allowances that are not 

recorded, or that are deducted as an incorrect allocation, in 

accordance with paragraphs (c)(2) and (3) of this section for a 

recipient under paragraph (c)(1)(i) of this section, the 

Administrator will:

(A) Transfer such TR SO2 Group 1 allowances to the new unit setaside for such control period for the State from whose SO2 Group 

1 trading budget the TR SO2 Group 1 allowances were allocated; or

(B) If the State has a SIP revision approved under §52.39(e) or 

(f) covering such control period, include such TR SO2 Group 1
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allowances in the portion of the State SO2 Group 1 trading budget 

that may be allocated for such control period in accordance with 

such SIP revision. 

(ii) With regard to the TR SO2 Group 1 allowances that were not 

allocated from the Indian country new unit set-aside for such 

control period and that are not recorded, or that are deducted

as an incorrect allocation, in accordance with paragraphs (c)(2) 

and (3) of this section for a recipient under paragraph 

(c)(1)(ii) of this paragraph, the Administrator will:

(A) Transfer such TR SO2 Group 1 allowances to the new unit setaside for such control period; or

(B) If the State has a SIP revision approved under §52.39(e) or 

(f) covering such control period, include such TR SO2 Group 1

allowances in the portion of the State SO2 Group 1 trading budget 

that may be allocated for such control period in accordance with 

such SIP revision. 

(iii) With regard to the TR SO2 Group 1 allowances that were 

allocated from the Indian country new unit set-aside for such 

control period and that are not recorded, or that are deducted

as an incorrect allocation, in accordance with paragraphs (c)(2) 

and (3) of this section for a recipient under paragraph 

(c)(1)(ii) of this paragraph, the Administrator will transfer 
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such TR SO2 Group 1 allowances to the Indian country new unit 

set-aside for such control period.

§ 97.612 TR SO2 Group 1 allowance allocations to new units.

(a) For each control period in 2012 and thereafter and for the 

TR SO2 Group 1 units in each State, the Administrator will 

allocate TR SO2 Group 1 allowances to the TR SO2 Group 1 units as 

follows: 

(1) The TR SO2 Group 1 allowances will be allocated to the 

following TR SO2 Group 1 units, except as provided in paragraph 

(a)(10) of this section:

(i) TR SO2 Group 1 units that are not allocated an amount of TR 

SO2 Group 1 allowances in the notice of data availability issued 

under §97.611(a)(1); 

(ii) TR SO2 Group 1 units whose allocation of an amount of TR SO2

Group 1 allowances for such control period in the notice of data 

availability issued under §97.611(a)(1) is covered by 

§97.611(c)(2) or (3);

(iii) TR SO2 Group 1 units that are allocated an amount of TR SO2

Group 1 allowances for such control period in the notice of data 

availability issued under §97.611(a)(1), which allocation is 

terminated for such control period pursuant to §97.611(a)(2), 
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and that operate during the control period immediately preceding 

such control period; or

(iv) For purposes of paragraph (a)(9) of this section, TR SO2

Group 1 units under §97.611(c)(1)(ii) whose allocation of an 

amount of TR SO2 Group 1 allowances for such control period in 

the notice of data availability issued under 

§97.611(b)(1)(ii)(B) is covered by §97.611(c)(2) or (3). 

(2) The Administrator will establish a separate new unit setaside for the State for each such control period. Each such new 

unit set-aside will be allocated TR SO2 Group 1 allowances in an 

amount equal to the applicable amount of tons of SO2 emissions as 

set forth in §97.610(a) and will be allocated additional TR SO2

Group 1 allowances (if any) in accordance with §§97.611(a)(2) 

and (c)(5) and paragraph (b)(10) of this section.

(3) The Administrator will determine, for each TR SO2 Group 1

unit described in paragraph (a)(1) of this section, an 

allocation of TR SO2 Group 1 allowances for the later of the 

following control periods and for each subsequent control 

period:

(i) The control period in 2012;
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(ii) The first control period after the control period in which 

the TR SO2 Group 1 unit commences commercial operation; 

(iii) For a unit described in paragraph (a)(1)(ii) of this 

section, the first control period in which the TR SO2 Group 1

unit operates in the State after operating in another 

jurisdiction and for which the unit is not already allocated one 

or more TR SO2 Group 1 allowances; and

(iv) For a unit described in paragraph (a)(1)(iii) of this 

section, the first control period after the control period in 

which the unit resumes operation. 

(4)(i) The allocation to each TR SO2 annual unit described in 

paragraph (a)(1)(i) through (iii) of this section and for each 

control period described in paragraph (a)(3) of this section 

will be an amount equal to the unit’s total tons of SO2 emissions 

during the immediately preceding control period.

(ii) The Administrator will adjust the allocation amount in 

paragraph (a)(4)(i) in accordance with paragraphs (a)(5) through 

(7) and (12) of this section.

(5) The Administrator will calculate the sum of the TR SO2 Group 

1 allowances determined for all such TR SO2 Group 1 units under 
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paragraph (a)(4)(i) of this section in the State for such 

control period.

(6) If the amount of TR SO2 Group 1 allowances in the new unit 

set-aside for the State for such control period is greater than 

or equal to the sum under paragraph (a)(5) of this section, then 

the Administrator will allocate the amount of TR SO2 Group 1

allowances determined for each such TR SO2 Group 1 unit under 

paragraph (a)(4)(i) of this section.

(7) If the amount of TR SO2 Group 1 allowances in the new unit 

set-aside for the State for such control period is less than the 

sum under paragraph (a)(5) of this section, then the 

Administrator will allocate to each such TR SO2 Group 1 unit the 

amount of the TR SO2 Group 1 allowances determined under 

paragraph (a)(4)(i) of this section for the unit, multiplied by 

the amount of TR SO2 Group 1 allowances in the new unit set-aside 

for such control period, divided by the sum under paragraph 

(a)(5) of this section, and rounded to the nearest allowance.

(8) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 

§97.611(b)(1)(i) and (ii), of the amount of TR SO2 Group 1

allowances allocated under paragraphs (a)(2) through (7) and 
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(12) of this section for such control period to each TR SO2 Group 

1 unit eligible for such allocation.

(9) If, after completion of the procedures under paragraphs 

(a)(5) through (8) of this section for such control period, any 

unallocated TR SO2 Group 1 allowances remain in the new unit setaside for the State for such control period, the Administrator 

will allocate such TR SO2 Group 1 allowances as follows--

(i) The Administrator will determine, for each unit described in 

paragraph (a)(1) of this section that commenced commercial 

operation during the period starting January 1 of the year 

before the year of such control period and ending November 30 of 

year of such control period, the positive difference (if any) 

between the unit’s emissions during such control period and the 

amount of TR SO2 Group 1 allowances referenced in the notice of 

data availability required under §97.611(b)(1)(ii) for the unit 

for such control period;

(ii) The Administrator will determine the sum of the positive 

differences determined under paragraph (a)(9)(i) of this 

section;

(iii) If the amount of unallocated TR SO2 Group 1 allowances 

remaining in the new unit set-aside for the State for such 

control period is greater than or equal to the sum determined 
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under paragraph (a)(9)(ii) of this section, then the 

Administrator will allocate the amount of TR SO2 Group 1

allowances determined for each such TR SO2 Group 1 unit under 

paragraph (a)(9)(i) of this section; and

(iv) If the amount of unallocated TR SO2 Group 1 allowances 

remaining in the new unit set-aside for the State for such 

control period is less than the sum under paragraph (a)(9)(ii) 

of this section, then the Administrator will allocate to each 

such TR SO2 Group 1 unit the amount of the TR SO2 Group 1

allowances determined under paragraph (a)(9)(i) of this section 

for the unit, multiplied by the amount of unallocated TR SO2

Group 1 allowances remaining in the new unit set-aside for such 

control period, divided by the sum under paragraph (a)(9)(ii) of 

this section, and rounded to the nearest allowance.

(10) If, after completion of the procedures under paragraphs

(a)(9) and (12) of this section for such control period, any 

unallocated TR SO2 Group 1 allowances remain in the new unit setaside for the State for such control period, the Administrator 

will allocate to each TR SO2 Group 1 unit that is in the State, 

is allocated an amount of TR SO2 Group 1 allowances in the notice 

of data availability issued under §97.611(a)(1), and continues 

to be allocated TR SO2 Group 1 allowances for such control period 

in accordance with §97.611(a)(2), an amount of TR SO2 Group 1
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allowances equal to the following: the total amount of such 

remaining unallocated TR SO2 Group 1 allowances in such new unit 

set-aside, multiplied by the unit's allocation under §97.611(a) 

for such control period, divided by the remainder of the amount 

of tons in the applicable State SO2 Group 1 trading budget minus 

the sum of the amounts of tons in such new unit set-aside and 

the Indian country new unit set-aside for the State for such 

control period, and rounded to the nearest allowance.

(11) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 

§97.611(b)(1)(iii), (iv), and (v), of the amount of TR SO2 Group 

1 allowances allocated under paragraphs (a)(9), (10), and (12) 

of this section for such control period to each TR SO2 Group 1

unit eligible for such allocation.

(12)(i) Notwithstanding the requirements of paragraphs (a)(2) 

through (11) of this section, if the calculations of allocations 

of a new unit set-aside for a control period in a given year 

under paragraph (a)(7) of this section, paragraphs (a)(6) and 

(9)(iv) of this section, or paragraphs (a)(6), (9)(iii), and 

(10) of this section would otherwise result in total allocations 

of such new unit set-aside exceeding the total amount of such 

new unit set-aside, then the Administrator will adjust the 

results of the calculations under paragraph (a)(7), (9)(iv), or 
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(10) of this section, as applicable, as follows. The 

Administrator will list the TR SO2 Group 1 units in descending 

order based on the amount of such units’ allocations under 

paragraph (a)(7), (9)(iv), or (10) of this section, as 

applicable, and, in cases of equal allocation amounts, in 

alphabetical order of the relevant source’s name and numerical 

order of the relevant unit’s identification number, and will 

reduce each unit’s allocation under paragraph (a)(7), (9)(iv), 

or (10) of this section, as applicable, by one TR SO2 Group 1

allowance (but not below zero) in the order in which the units 

are listed and will repeat this reduction process as necessary, 

until the total allocations of such new unit set-aside equal the 

total amount of such new unit set-aside. 

(ii) Notwithstanding the requirements of paragraphs (a)(10) and 

(11) of this section, if the calculations of allocations of a 

new unit set-aside for a control period in a given year under 

paragraphs (a)(6), (9)(iii), and (10) of this section would 

otherwise result in a total allocations of such new unit setaside less than the total amount of such new unit set-aside,

then the Administrator will adjust the results of the 

calculations under paragraph (a)(10) of this section, as 

follows. The Administrator will list the TR SO2 Group 1 units in 

descending order based on the amount of such units’ allocations 
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under paragraph (a)(10) of this section and, in cases of equal 

allocation amounts, in alphabetical order of the relevant 

source’s name and numerical order of the relevant unit’s 

identification number, and will increase each unit’s allocation 

under paragraph (a)(10) of this section by one TR SO2 Group 1

allowance in the order in which the units are listed and will 

repeat this increase process as necessary, until the total 

allocations of such new unit set-aside equal the total amount of 

such new unit set-aside. 

(b) For each control period in 2012 and thereafter and for the 

TR SO2 Group 1 units located in Indian country within the borders 

of each State, the Administrator will allocate TR SO2 Group 1

allowances to the TR SO2 Group 1 units as follows: 

(1) The TR SO2 Group 1 allowances will be allocated to the 

following TR SO2 Group 1 units, except as provided in paragraph 

(b)(10) of this section:

(i) TR SO2 Group 1 units that are not allocated an amount of TR 

SO2 Group 1 allowances in the notice of data availability issued 

under §97.611(a)(1); or

(ii) For purposes of paragraph (b)(9) of this section, TR SO2

Group 1 units under §97.611(c)(1)(ii) whose allocation of an 

amount of TR SO2 Group 1 allowances for such control period in 
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the notice of data availability issued under 

§97.611(b)(2)(ii)(B) is covered by §97.611(c)(2) or (3). 

(2) The Administrator will establish a separate Indian country 

new unit set-aside for the State for each such control period. 

Each such Indian country new unit set-aside will be allocated TR 

SO2 Group 1 allowances in an amount equal to the applicable 

amount of tons of SO2 emissions as set forth in §97.610(a) and 

will be allocated additional TR SO2 Group 1 allowances (if any) 

in accordance with §97.611(c)(5).

(3) The Administrator will determine, for each TR SO2 Group 1

unit described in paragraph (b)(1) of this section, an 

allocation of TR SO2 Group 1 allowances for the later of the 

following control periods and for each subsequent control 

period:

(i) The control period in 2012; and

(ii) The first control period after the control period in which 

the TR SO2 Group 1 unit commences commercial operation.

(4)(i) The allocation to each TR SO2 annual unit described in 

paragraph (b)(1)(i) of this section and for each control period 

described in paragraph (b)(3) of this section will be an amount 
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equal to the unit’s total tons of SO2 emissions during the 

immediately preceding control period.

(ii) The Administrator will adjust the allocation amount in 

paragraph (b)(4)(i) in accordance with paragraphs (b)(5) through 

(7) and (12) of this section. 

(5) The Administrator will calculate the sum of the TR SO2 Group 

1 allowances determined for all such TR SO2 Group 1 units under 

paragraph (b)(4)(i) of this section in Indian country within the 

borders of the State for such control period.

(6) If the amount of TR SO2 Group 1 allowances in the Indian 

country new unit set-aside for the State for such control period 

is greater than or equal to the sum under paragraph (b)(5) of 

this section, then the Administrator will allocate the amount of 

TR SO2 Group 1 allowances determined for each such TR SO2 Group 1

unit under paragraph (b)(4)(i) of this section.

(7) If the amount of TR SO2 Group 1 allowances in the Indian 

country new unit set-aside for the State for such control period 

is less than the sum under paragraph (b)(5) of this section, 

then the Administrator will allocate to each such TR SO2 Group 1

unit the amount of the TR SO2 Group 1 allowances determined under 

paragraph (b)(4)(i) of this section for the unit, multiplied by 

the amount of TR SO2 Group 1 allowances in the Indian country new 
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unit set-aside for such control period, divided by the sum under 

paragraph (b)(5) of this section, and rounded to the nearest 

allowance.

(8) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 

§97.611(b)(2)(i) and (ii), of the amount of TR SO2 Group 1

allowances allocated under paragraphs (b)(2) through (7) and 

(12) of this section for such control period to each TR SO2 Group 

1 unit eligible for such allocation.

(9) If, after completion of the procedures under paragraphs 

(b)(5) through (8) of this section for such control period, any 

unallocated TR SO2 Group 1 allowances remain in the Indian 

country new unit set-aside for the State for such control 

period, the Administrator will allocate such TR SO2 Group 1

allowances as follows--

(i) The Administrator will determine, for each unit described in 

paragraph (b)(1) of this section that commenced commercial 

operation during the period starting January 1 of the year 

before the year of such control period and ending November 30 of 

year of such control period, the positive difference (if any) 

between the unit’s emissions during such control period and the 

amount of TR SO2 Group 1 allowances referenced in the notice of 
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data availability required under §97.611(b)(2)(ii) for the unit 

for such control period;

(ii) The Administrator will determine the sum of the positive 

differences determined under paragraph (b)(9)(i) of this 

section;

(iii) If the amount of unallocated TR SO2 Group 1 allowances 

remaining in the Indian country new unit set-aside for the State 

for such control period is greater than or equal to the sum 

determined under paragraph (b)(9)(ii) of this section, then the 

Administrator will allocate the amount of TR SO2 Group 1

allowances determined for each such TR SO2 Group 1 unit under 

paragraph (b)(9)(i) of this section; and

(iv) If the amount of unallocated TR SO2 Group 1 allowances 

remaining in the Indian country new unit set-aside for the State 

for such control period is less than the sum under paragraph 

(b)(9)(ii) of this section, then the Administrator will allocate 

to each such TR SO2 Group 1 unit the amount of the TR SO2 Group 1

allowances determined under paragraph (b)(9)(i) of this section 

for the unit, multiplied by the amount of unallocated TR SO2

Group 1 allowances remaining in the Indian country new unit setaside for such control period, divided by the sum under 
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paragraph (b)(9)(ii) of this section, and rounded to the nearest 

allowance.

(10) If, after completion of the procedures under paragraphs

(b)(9) and (12) of this section for such control period, any 

unallocated TR SO2 Group 1 allowances remain in the Indian 

country new unit set-aside for the State for such control 

period, the Administrator will:

(i) Transfer such unallocated TR SO2 Group 1 allowances to the 

new unit set-aside for the State for such control period; or 

(ii) If the State has a SIP revision approved under §52.39(d), 

(e), or (f) of this chapter covering such control period, 

include such unallocated TR SO2 Group 1 allowances in the portion 

of the State SO2 Group 1 trading budget that may be allocated for 

such control period in accordance with such SIP revision. 

(11) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 

§97.611(b)(2)(iii), (iv), and (v), of the amount of TR SO2 Group 

1 allowances allocated under paragraphs (b)(9), (10), and (12) 

for such control period to each TR SO2 Group 1 unit eligible for 

such allocation.
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(12)(i) Notwithstanding the requirements of paragraphs (b)(2) 

through (11) of this section, if the calculations of allocations 

of an Indian country new unit set-aside for a control period in 

a given year under paragraph (b)(7) of this section, paragraphs 

(b)(6) and (9)(iv) of this section, or paragraphs (b)(6), 

(9)(iii), and (10) of this section would otherwise result in 

total allocations of such Indian country new unit set-aside 

exceeding the total amount of such Indian country new unit setaside, then the Administrator will adjust the results of the 

calculations under paragraph (b)(7), (9)(iv), or (10) of this 

section, as applicable, as follows. The Administrator will list 

the TR SO2 Group 1 units in descending order based on the amount 

of such units’ allocations under paragraph (b)(7), (9)(iv), or 

(10) of this section, as applicable, and, in cases of equal 

allocation amounts, in alphabetical order of the relevant 

source’s name and numerical order of the relevant unit’s 

identification number, and will reduce each unit’s allocation 

under paragraph (b)(7), (9)(iv), or (10) of this section, as 

applicable, by one TR SO2 Group 1 allowance (but not below zero) 

in the order in which the units are listed and will repeat this 

reduction process as necessary, until the total allocations of 

such Indian country new unit set-aside equal the total amount of 

such Indian country new unit set-aside. 
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(ii) Notwithstanding the requirements of paragraphs (b)(10) and 

(11) of this section, if the calculations of allocations of an 

Indian country new unit set-aside for a control period in a 

given year under paragraphs (b)(6), (9)(iii), and (10) of this 

section would otherwise result in a total allocations of such 

Indian country new unit set-aside less than the total amount of 

such Indian country new unit set-aside, then the Administrator 

will adjust the results of the calculations under paragraph 

(b)(10) of this section, as follows. The Administrator will 

list the TR SO2 Group 1 units in descending order based on the 

amount of such units’ allocations under paragraph (b)(10) of 

this section and, in cases of equal allocation amounts, in 

alphabetical order of the relevant source’s name and numerical 

order of the relevant unit’s identification number, and will 

increase each unit’s allocation under paragraph (b)(10) of this 

section by one TR SO2 Group 1 allowance in the order in which the 

units are listed and will repeat this increase process as 

necessary, until the total allocations of such Indian country 

new unit set-aside equal the total amount of such Indian country

new unit set-aside. 

§ 97.613 Authorization of designated representative and 

alternate designated representative.
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(a) Except as provided under §97.615, each TR SO2 Group 1 source, 

including all TR SO2 Group 1 units at the source, shall have one 

and only one designated representative, with regard to all 

matters under the TR SO2 Group 1 Trading Program.

(1) The designated representative shall be selected by an 

agreement binding on the owners and operators of the source and 

all TR SO2 Group 1 units at the source and shall act in 

accordance with the certification statement in 

§97.616(a)(4)(iii).

(2) Upon and after receipt by the Administrator of a complete 

certificate of representation under §97.616:

(i) The designated representative shall be authorized and shall 

represent and, by his or her representations, actions, 

inactions, or submissions, legally bind each owner and operator 

of the source and each TR SO2 Group 1 unit at the source in all 

matters pertaining to the TR SO2 Group 1 Trading Program, 

notwithstanding any agreement between the designated 

representative and such owners and operators; and

(ii) The owners and operators of the source and each TR SO2 Group 

1 unit at the source shall be bound by any decision or order 

issued to the designated representative by the Administrator 

regarding the source or any such unit.
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(b) Except as provided under §97.615, each TR SO2 Group 1 source 

may have one and only one alternate designated representative, 

who may act on behalf of the designated representative. The 

agreement by which the alternate designated representative is 

selected shall include a procedure for authorizing the alternate 

designated representative to act in lieu of the designated 

representative.

(1) The alternate designated representative shall be selected by 

an agreement binding on the owners and operators of the source 

and all TR SO2 Group 1 units at the source and shall act in 

accordance with the certification statement in 

§97.616(a)(4)(iii).

(2) Upon and after receipt by the Administrator of a complete 

certificate of representation under §97.616, 

(i) The alternate designated representative shall be authorized; 

(ii) Any representation, action, inaction, or submission by the 

alternate designated representative shall be deemed to be a 

representation, action, inaction, or submission by the 

designated representative; and

(iii) The owners and operators of the source and each TR SO2

Group 1 unit at the source shall be bound by any decision or 
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order issued to the alternate designated representative by the 

Administrator regarding the source or any such unit.

(c) Except in this section, §97.602, and §§97.614 through 

97.618, whenever the term “designated representative” (as 

distinguished from the term “common designated representative”) 

is used in this subpart, the term shall be construed to include 

the designated representative or any alternate designated 

representative.

§ 97.614 Responsibilities of designated representative and 

alternate designated representative.

(a) Except as provided under §97.618 concerning delegation of 

authority to make submissions, each submission under the TR SO2

Group 1 Trading Program shall be made, signed, and certified by 

the designated representative or alternate designated 

representative for each TR SO2 Group 1 source and TR SO2 Group 1

unit for which the submission is made. Each such submission 

shall include the following certification statement by the 

designated representative or alternate 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 
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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.”

(b) The Administrator will accept or act on a submission made 

for a TR SO2 Group 1 source or a TR SO2 Group 1 unit only if the 

submission has been made, signed, and certified in accordance 

with paragraph (a) of this section and §97.618.

§ 97.615 Changing designated representative and alternate 

designated representative; changes in owners and operators; 

changes in units at the source.

(a) Changing designated representative. The designated 

representative may be changed at any time upon receipt by the 

Administrator of a superseding complete certificate of 

representation under §97.616. Notwithstanding any such change, 

all representations, actions, inactions, and submissions by the 

previous designated representative before the time and date when 

the Administrator receives the superseding certificate of 
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representation shall be binding on the new designated 

representative and the owners and operators of the TR SO2 Group 1

source and the TR SO2 Group 1 units at the source.

(b) Changing alternate designated representative. The alternate 

designated representative may be changed at any time upon 

receipt by the Administrator of a superseding complete 

certificate of representation under §97.616. Notwithstanding 

any such change, all representations, actions, inactions, and 

submissions by the previous alternate designated representative 

before the time and date when the Administrator receives the 

superseding certificate of representation shall be binding on 

the new alternate designated representative, the designated 

representative, and the owners and operators of the TR SO2 Group 

1 source and the TR SO2 Group 1 units at the source.

(c) Changes in owners and operators. (1) In the event an owner 

or operator of a TR SO2 Group 1 source or a TR SO2 Group 1 unit 

at the source is not included in the list of owners and 

operators in the certificate of representation under §97.616, 

such owner or operator shall be deemed to be subject to and 

bound by the certificate of representation, the representations, 

actions, inactions, and submissions of the designated 

representative and any alternate designated representative of 

the source or unit, and the decisions and orders of the 
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Administrator, as if the owner or operator were included in such 

list.

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

of a TR SO2 Group 1 source or a TR SO2 Group 1 unit at the 

source, including the addition or removal of an owner or 

operator, the designated representative or any alternate 

designated representative shall submit a revision to the 

certificate of representation under §97.616 amending the list of 

owners and operators to reflect the change.

(d) Changes in units at the source. Within 30 days of any 

change in which units are located at a TR SO2 Group 1 source 

(including the addition or removal of a unit), the designated 

representative or any alternate designated representative shall 

submit a certificate of representation under §97.616 amending 

the list of units to reflect the change. 

(1) If the change is the addition of a unit that operated (other 

than for purposes of testing by the manufacturer before initial 

installation) before being located at the source, then the 

certificate of representation shall identify, in a format 

prescribed by the Administrator, the entity from whom the unit 

was purchased or otherwise obtained (including name, address, 

telephone number, and facsimile number (if any)), the date on 
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which the unit was purchased or otherwise obtained, and the date 

on which the unit became located at the source.

(2) If the change is the removal of a unit, then the certificate 

of representation shall identify, in a format prescribed by the 

Administrator, the entity to which the unit was sold or that 

otherwise obtained the unit (including name, address, telephone 

number, and facsimile number (if any)), the date on which the 

unit was sold or otherwise obtained, and the date on which the 

unit became no longer located at the source. 

§ 97.616 Certificate of representation.

(a) A complete certificate of representation for a designated 

representative or an alternate designated representative shall 

include the following elements in a format prescribed by the 

Administrator:

(1) Identification of the TR SO2 Group 1 source, and each TR SO2

Group 1 unit at the source, for which the certificate of 

representation is submitted, including source name, source 

category and NAICS code (or, in the absence of a NAICS code, an 

equivalent code), State, plant code, county, latitude and 

longitude, unit identification number and type, identification 

number and nameplate capacity (in MWe, rounded to the nearest 

tenth) of each generator served by each such unit, actual or 
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projected date of commencement of commercial operation, and a 

statement of whether such source is located in Indian Country. 

If a projected date of commencement of commercial operation is 

provided, the actual date of commencement of commercial 

operation shall be provided when such information becomes 

available.

(2) The name, address, e-mail address (if any), telephone 

number, and facsimile transmission number (if any) of the 

designated representative and any alternate designated 

representative.

(3) A list of the owners and operators of the TR SO2 Group 1

source and of each TR SO2 Group 1 unit at the source.

(4) The following certification statements by the designated 

representative and any alternate designated representative—

(i) “I certify that I was selected as the designated 

representative or alternate designated representative, as 

applicable, by an agreement binding on the owners and operators 

of the source and each TR SO2 Group 1 unit at the source.”

(ii) “I certify that I have all the necessary authority to carry 

out my duties and responsibilities under the TR SO2 Group 1

Trading Program on behalf of the owners and operators of the 
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source and of each TR SO2 Group 1 unit at the source and that 

each such owner and operator shall be fully bound by my 

representations, actions, inactions, or submissions and by any 

decision or order issued to me by the Administrator regarding 

the source or unit.”

(iii) “Where there are multiple holders of a legal or equitable 

title to, or a leasehold interest in, a TR SO2 Group 1 unit, or 

where a utility or industrial customer purchases power from a TR 

SO2 Group 1 unit under a life-of-the-unit, firm power contractual 

arrangement, I certify that: I have given a written notice of my 

selection as the ‘designated representative’ or ‘alternate 

designated representative’, as applicable, and of the agreement 

by which I was selected to each owner and operator of the source 

and of each TR SO2 Group 1 unit at the source; and TR SO2 Group 1

allowances and proceeds of transactions involving TR SO2 Group 1

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 TR SO2 Group 1 allowances by contract, TR SO2

Group 1 allowances and proceeds of transactions involving TR SO2

Group 1 allowances will be deemed to be held or distributed in 

accordance with the contract.”
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(5) The signature of the designated representative and any 

alternate designated representative and the dates signed.

(b) Unless otherwise required by the Administrator, documents of 

agreement referred to in the certificate of representation shall 

not be submitted to the Administrator. The Administrator shall 

not be under any obligation to review or evaluate the 

sufficiency of such documents, if submitted.

§ 97.617 Objections concerning designated representative and 

alternate designated representative.

(a) Once a complete certificate of representation under §97.616 

has been submitted and received, the Administrator will rely on 

the certificate of representation unless and until a superseding 

complete certificate of representation under §97.616 is received 

by the Administrator.

(b) Except as provided in paragraph (a) of this section, no 

objection or other communication submitted to the Administrator 

concerning the authorization, or any representation, action, 

inaction, or submission, of a designated representative or 

alternate designated representative shall affect any 

representation, action, inaction, or submission of the 

designated representative or alternate designated representative 
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or the finality of any decision or order by the Administrator 

under the TR SO2 Group 1 Trading Program.

(c) The Administrator will not adjudicate any private legal 

dispute concerning the authorization or any representation, 

action, inaction, or submission of any designated representative 

or alternate designated representative, including private legal 

disputes concerning the proceeds of TR SO2 Group 1 allowance 

transfers.

§ 97.618 Delegation by designated representative and alternate 

designated representative.

(a) A designated representative may delegate, to one or more 

natural persons, his or her authority to make an electronic 

submission to the Administrator provided for or required under 

this subpart.

(b) An alternate designated representative may delegate, to one 

or more natural persons, his or her authority to make an 

electronic submission to the Administrator provided for or 

required under this subpart.

(c) In order to delegate authority to a natural person to make 

an electronic submission to the Administrator in accordance with 

paragraph (a) or (b) of this section, the designated 
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representative or alternate designated representative, as 

appropriate, must submit to the Administrator a notice of 

delegation, in a format prescribed by the Administrator, that 

includes the following elements:

(1) The name, address, e-mail address, telephone number, and 

facsimile transmission number (if any) of such designated 

representative or alternate designated representative;

(2) The name, address, e-mail address, telephone number, and 

facsimile transmission number (if any) of each such natural 

person (referred to in this section as an “agent”);

(3) For each such natural person, a list of the type or types of 

electronic submissions under paragraph (a) or (b) of this 

section for which authority is delegated to him or her; and

(4) The following certification statements by such designated 

representative or alternate designated representative:

(i) “I agree that any electronic submission to the Administrator 

that is made by an agent identified in this notice of delegation 

and of a type listed for such agent in this notice of delegation 

and that is made when I am a designated representative or 

alternate designated representative, as appropriate, and before 

this notice of delegation is superseded by another notice of 
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delegation under 40 CFR 97.618(d) shall be deemed to be an 

electronic submission by me.”

(ii) “Until this notice of delegation is superseded by another 

notice of delegation under 40 CFR 97.618(d), I agree to maintain 

an e-mail account and to notify the Administrator immediately of 

any change in my e-mail address unless all delegation of 

authority by me under 40 CFR 97.618 is terminated.”.

(d) A notice of delegation submitted under paragraph (c) of this 

section shall be effective, with regard to the designated 

representative or alternate designated representative identified 

in such notice, upon receipt of such notice by the Administrator 

and until receipt by the Administrator of a superseding notice 

of delegation submitted by such designated representative or 

alternate designated representative, as appropriate. The 

superseding notice of delegation may replace any previously 

identified agent, add a new agent, or eliminate entirely any 

delegation of authority.

(e) Any electronic submission covered by the certification in 

paragraph (c)(4)(i) of this section and made in accordance with 

a notice of delegation effective under paragraph (d) of this 

section shall be deemed to be an electronic submission by the 
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designated representative or alternate designated representative 

submitting such notice of delegation.

§ 97.619 [Reserved]

§ 97.620 Establishment of compliance accounts, assurance 

accounts, and general accounts.

(a) Compliance accounts. Upon receipt of a complete certificate 

of representation under §97.616, the Administrator will 

establish a compliance account for the TR SO2 Group 1 source for 

which the certificate of representation was submitted, unless 

the source already has a compliance account. The designated 

representative and any alternate designated representative of 

the source shall be the authorized account representative and 

the alternate authorized account representative respectively of 

the compliance account.

(b) Assurance accounts. The Administrator will establish 

assurance accounts for certain owners and operators and States 

in accordance with §97.625(b)(3). 

(c) General accounts. (1) Application for general account. (i) 

Any person may apply to open a general account, for the purpose 

of holding and transferring TR SO2 Group 1 allowances, by 

submitting to the Administrator a complete application for a 
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general account. Such application shall designate one and only 

one authorized account representative and may designate one and 

only one alternate authorized account representative who may act 

on behalf of the authorized account representative. 

(A) The authorized account representative and alternate 

authorized account representative shall be selected by an 

agreement binding on the persons who have an ownership interest 

with respect to TR SO2 Group 1 allowances held in the general 

account. 

(B) The agreement by which the alternate authorized account 

representative is selected shall include a procedure for 

authorizing the alternate authorized account representative to 

act in lieu of the authorized account representative.

(ii) A complete application for a general account 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 

authorized account representative and any alternate authorized 

account representative;

(B) An identifying name for the general account;
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(C) A list of all persons subject to a binding agreement for the 

authorized account representative and any alternate authorized 

account representative to represent their ownership interest 

with respect to the TR SO2 Group 1 allowances held in the general 

account;

(D) The following certification statement by the authorized 

account representative and any alternate authorized account 

representative: “I certify that I was selected as the authorized 

account representative or the alternate authorized account 

representative, as applicable, by an agreement that is binding 

on all persons who have an ownership interest with respect to TR 

SO2 Group 1 allowances held in the general account. I certify 

that I have all the necessary authority to carry out my duties 

and responsibilities under the TR SO2 Group 1 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 decision or order issued to me by the Administrator 

regarding the general account.”

(E) The signature of the authorized account representative and 

any alternate authorized account representative and the dates 

signed.
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(iii) Unless otherwise required by the Administrator, documents 

of agreement referred to in the application for a general 

account shall not be submitted to the Administrator. The 

Administrator shall not be under any obligation to review or 

evaluate the sufficiency of such documents, if submitted.

(2) Authorization of authorized account representative and 

alternate authorized account representative. (i) Upon receipt 

by the Administrator of a complete application for a general 

account under paragraph (b)(1) of this section, the 

Administrator will establish a general account for the person or 

persons for whom the application is submitted, and upon and 

after such receipt by the Administrator:

(A) The authorized account representative of the general account 

shall be authorized and shall represent and, by his or her 

representations, actions, inactions, or submissions, legally 

bind each person who has an ownership interest with respect to 

TR SO2 Group 1 allowances held in the general account in all 

matters pertaining to the TR SO2 Group 1 Trading Program, 

notwithstanding any agreement between the authorized account 

representative and such person. 

(B) Any alternate authorized account representative shall be 

authorized, and any representation, action, inaction, or 
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submission by any alternate authorized account representative 

shall be deemed to be a representation, action, inaction, or 

submission by the authorized account representative.

(C) Each person who has an ownership interest with respect to TR 

SO2 Group 1 allowances held in the general account shall be bound 

by any decision or order issued to the authorized account 

representative or alternate authorized account representative by 

the Administrator regarding the general account. 

(ii) Except as provided in paragraph (c)(5) of this section 

concerning delegation of authority to make submissions, each 

submission concerning the general account shall be made, signed, 

and certified by the authorized account representative or any 

alternate authorized account representative for the persons 

having an ownership interest with respect to TR SO2 Group 1

allowances held in the general account. Each such submission 

shall include the following certification statement by the 

authorized account representative or any alternate authorized 

account representative: “I am authorized to make this submission 

on behalf of the persons having an ownership interest with 

respect to the TR SO2 Group 1 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 
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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) Except in this section, whenever the term “authorized 

account representative” is used in this subpart, the term shall 

be construed to include the authorized account representative or 

any alternate authorized account representative.

(3) Changing authorized account representative and alternate 

authorized account representative; changes in persons with 

ownership interest. (i) The authorized account representative 

of 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 (c)(1) of this section. 

Notwithstanding any such change, all representations, actions, 

inactions, and submissions by the previous 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 authorized account representative and the 
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persons with an ownership interest with respect to the TR SO2

Group 1 allowances in the general account.

(ii) The alternate authorized account representative of 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 (c)(1) of this section. 

Notwithstanding any such change, all representations, actions, 

inactions, and submissions by the previous alternate 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 authorized account 

representative, the authorized account representative, and the 

persons with an ownership interest with respect to the TR SO2

Group 1 allowances in the general account.

(iii)(A) In the event a person having an ownership interest with 

respect to TR SO2 Group 1 allowances in the general account is 

not included in the list of such persons in the application for 

a general account, such person shall be deemed to be subject to 

and bound by the application for a general account, the 

representation, actions, inactions, and submissions of the 

authorized account representative and any alternate authorized 

account representative of the account, and the decisions and 
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orders of the Administrator, as if the person were included in 

such list.

(B) Within 30 days after any change in the persons having an 

ownership interest with respect to SO2 Group 1 allowances in the 

general account, including the addition or removal of a person, 

the authorized account representative or any alternate 

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 TR SO2 Group 1

allowances in the general account to include the change.

(4) Objections concerning authorized account representative and 

alternate authorized account representative. (i) Once a 

complete application for a general account under paragraph 

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

no objection or other communication submitted to the 

Administrator concerning the authorization, or any 

representation, action, inaction, or submission of the 
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authorized account representative or any alternate authorized 

account representative of a general account shall affect any 

representation, action, inaction, or submission of the 

authorized account representative or any alternate authorized 

account representative or the finality of any decision or order 

by the Administrator under the TR SO2 Group 1 Trading Program.

(iii) The Administrator will not adjudicate any private legal 

dispute concerning the authorization or any representation, 

action, inaction, or submission of the authorized account 

representative or any alternate authorized account 

representative of a general account, including private legal 

disputes concerning the proceeds of TR SO2 Group 1 allowance 

transfers.

(5) Delegation by authorized account representative and 

alternate authorized account representative. (i) An authorized 

account representative of a general account may delegate, to one 

or more natural persons, his or her authority to make an 

electronic submission to the Administrator provided for or 

required under this subpart.

(ii) An alternate authorized account representative of a general 

account may delegate, to one or more natural persons, his or her 
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authority to make an electronic submission to the Administrator 

provided for or required under this subpart.

(iii) In order to delegate authority to a natural person to make 

an electronic submission to the Administrator in accordance with 

paragraph (c)(5)(i) or (ii) of this section, the authorized 

account representative or alternate authorized account 

representative, as appropriate, must submit to the Administrator 

a notice of delegation, in a format prescribed by the 

Administrator, that includes the following elements:

(A) The name, address, e-mail address, telephone number, and 

facsimile transmission number (if any) of such authorized 

account representative or alternate authorized account 

representative;

(B) The name, address, e-mail address, telephone number, and 

facsimile transmission number (if any) of each such natural 

person (referred to in this section as an “agent”);

(C) For each such natural person, a list of the type or types of 

electronic submissions under paragraph (c)(5)(i) or (ii) of this 

section for which authority is delegated to him or her;

(D) The following certification statement by such authorized 

account representative or alternate authorized account 
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representative: “I agree that any electronic submission to the 

Administrator that is made by an agent identified in this notice 

of delegation and of a type listed for such agent in this notice 

of delegation and that is made when I am an authorized account 

representative or alternate authorized representative, as 

appropriate, and before this notice of delegation is superseded 

by another notice of delegation under 40 CFR 97.620(c)(5)(iv) 

shall be deemed to be an electronic submission by me.”; and

(E) The following certification statement by such authorized 

account representative or alternate authorized account 

representative: “Until this notice of delegation is superseded 

by another notice of delegation under 40 CFR 97.620(c)(5)(iv), I 

agree to maintain an e-mail account and to notify the 

Administrator immediately of any change in my e-mail address 

unless all delegation of authority by me under 40 CFR 

97.620(c)(5) is terminated.”.

(iv) A notice of delegation submitted under paragraph 

(c)(5)(iii) of this section shall be effective, with regard to 

the authorized account representative or alternate authorized 

account representative identified in such notice, upon receipt 

of such notice by the Administrator and until receipt by the 

Administrator of a superseding notice of delegation submitted by 

such authorized account representative or alternate authorized 
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account representative, as appropriate. The superseding notice 

of delegation may replace any previously identified agent, add a 

new agent, or eliminate entirely any delegation of authority.

(v) Any electronic submission covered by the certification in 

paragraph (c)(5)(iii)(D) of this section and made in accordance 

with a notice of delegation effective under paragraph (c)(5)(iv) 

of this section shall be deemed to be an electronic submission 

by the designated representative or alternate designated 

representative submitting such notice of delegation.

(6) Closing a general account. (i) The authorized account 

representative or alternate authorized account representative of 

a general account may submit to the Administrator a request to 

close the account. Such request shall include a correctly 

submitted TR SO2 Group 1 allowance transfer under §97.622 for any 

TR SO2 Group 1 allowances in the account to one or more other 

Allowance Management System accounts.

(ii) If a general account has no TR SO2 Group 1 allowance 

transfers to or from the account for a 12-month period or longer 

and does not contain any TR SO2 Group 1 allowances, the 

Administrator may notify the authorized account representative 

for the account that the account will be closed after 30 days 

after the notice is sent. The account will be closed after the 
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30-day period unless, before the end of the 30-day period, the 

Administrator receives a correctly submitted TR SO2 Group 1

allowance transfer under §97.622 to the account or a statement 

submitted by the authorized account representative or alternate 

authorized account representative demonstrating to the 

satisfaction of the Administrator good cause as to why the 

account should not be closed.

(d) Account identification. The Administrator will assign a 

unique identifying number to each account established under 

paragraph (a), (b), or (c) of this section.

(e) Responsibilities of authorized account representative and 

alternate authorized account representative. After the 

establishment of a compliance account or general account, the 

Administrator will accept or act on a submission pertaining to 

the account, including, but not limited to, submissions 

concerning the deduction or transfer of TR SO2 Group 1 allowances 

in the account, only if the submission has been made, signed, 

and certified in accordance with §§97.614(a) and 97.618 or 

paragraphs (c)(2)(ii) and (c)(5) of this section. 

§ 97.621 Recordation of TR SO2 Group 1 allowance allocations and 

auction results.
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(a) By [INSERT DATE 90 DAYS FROM DATE OF PUBLICATION IN THE 

FEDERAL REGISTER], the Administrator will record in each TR SO2

Group 1 source's compliance account the TR SO2 Group 1 allowances 

allocated to the TR SO2 Group 1 units at the source in accordance 

with §97.611(a) for the control period in 2012.

(b) By [INSERT DATE 90 DAYS FROM DATE OF PUBLICATION IN THE 

FEDERAL REGISTER], the Administrator will record in each TR SO2

Group 1 source's compliance account the TR SO2 Group 1 allowances 

allocated to the TR SO2 Group 1 units at the source in accordance 

with §97.611(a) for the control period in 2013, unless the State 

in which the source is located notifies the Administrator in 

writing by [INSERT DATE 70 DAYS FROM DATE OF PUBLICATION IN THE 

FEDERAL REGISTER] of the State’s intent to submit to the 

Administrator a complete SIP revision by April 1, 2012 meeting 

the requirements of §52.39(d)(1) through (4) of this chapter.

(1) If, by April 1, 2012, the State does not submit to the 

Administrator such complete SIP revision, the Administrator will 

record by April 15, 2012 in each TR SO2 Group 1 source's 

compliance account the TR SO2 Group 1 allowances allocated to the 

TR SO2 Group 1 units at the source in accordance with §97.611(a) 

for the control period in 2013.
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(2) If the State submits to the Administrator by April 1, 2012, 

and the Administrator approves by October 1, 2012, such complete 

SIP revision, the Administrator will record by October 1, 2012 

in each TR SO2 Group 1 source's compliance account the TR SO2

Group 1 allowances allocated to the TR SO2 Group 1 units at the 

source as provided in such approved, complete SIP revision for 

the control period in 2013.

(3) If the State submits to the Administrator by April 1, 2012, 

and the Administrator does not approve by October 1, 2012, such 

complete SIP revision, the Administrator will record by October 

1, 2012 in each TR SO2 Group 1 source's compliance account the TR 

SO2 Group 1 allowances allocated to the TR SO2 Group 1 units at 

the source in accordance with §97.611(a) for the control period 

in 2013.

(c) By July 1, 2013, the Administrator will record in each TR SO2

Group 1 source's compliance account the TR SO2 Group 1 allowances 

allocated to the TR SO2 Group 1 units at the source, or in each 

appropriate Allowance Management System account the TR SO2 Group 

1 allowances auctioned to TR SO2 Group 1 units, in accordance 

with §97.611(a), or with a SIP revision approved under §52.39(e) 

or (f) of this chapter, for the control period in 2014 and 2015.
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(d) By July 1, 2014, the Administrator will record in each TR SO2

Group 1 source's compliance account the TR SO2 Group 1 allowances 

allocated to the TR SO2 Group 1 units at the source, or in each 

appropriate Allowance Management System account the TR SO2 Group 

1 allowances auctioned to TR SO2 Group 1 units, in accordance 

with §97.611(a), or with a SIP revision approved under §52.39(e) 

or (f) of this chapter, for the control period in 2016 and 2017.

(e) By July 1, 2015, the Administrator will record in each TR SO2

Group 1 source's compliance account the TR SO2 Group 1 allowances 

allocated to the TR SO2 Group 1 units at the source, or in each 

appropriate Allowance Management System account the TR SO2 Group 

1 allowances auctioned to TR SO2 Group 1 units, in accordance 

with §97.611(a), or with a SIP revision approved under §52.39(e) 

or (f) of this chapter, for the control period in 2018 and 2019.

(f) By July 1, 2016 and July 1 of each year thereafter, the 

Administrator will record in each TR SO2 Group 1 source's 

compliance account the TR SO2 Group 1 allowances allocated to the 

TR SO2 Group 1 units at the source, or in each appropriate 

Allowance Management System account the TR SO2 Group 1 allowances

auctioned to TR SO2 Group 1 units, in accordance with §97.611(a), 

or with a SIP revision approved under §52.39(e) and (f) of this 

chapter, for the control period in the fourth year after the 
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year of the applicable recordation deadline under this 

paragraph.

(g) By August 1, 2012 and August 1 of each year thereafter, the 

Administrator will record in each TR SO2 Group 1 source's 

compliance account the TR SO2 Group 1 allowances allocated to the 

TR SO2 Group 1 units at the source, or in each appropriate 

Allowance Management System account the TR SO2 Group 1 allowances

auctioned to TR SO2 Group 1 units, in accordance with 

§97.612(a)(2) through (8) and (12), or with a SIP revision 

approved under §52.39(e) and (f) of this chapter, for the 

control period in the year of the applicable recordation 

deadline under this paragraph.

(h) By August 1, 2012 and August 1 of each year thereafter, the 

Administrator will record in each TR SO2 Group 1 source's 

compliance account the TR SO2 Group 1 allowances allocated to the 

TR SO2 Group 1 units at the source in accordance with 

§97.612(b)(2) through (8) and (12) for the control period in the 

year of the applicable recordation deadline under this 

paragraph.

(i) By February 15, 2013 and February 15 of each year 

thereafter, the Administrator will record in each TR SO2 Group 1

source's compliance account the TR SO2 Group 1 allowances 
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allocated to the TR SO2 Group 1 units at the source in accordance 

with §97.612(a)(9) through (12), for the control period in the 

year before the year of the applicable recordation deadline 

under this paragraph.

(j) By the date on which any allocation or auction results, 

other than an allocation or auction results described in

paragraphs (a) through (i) of this section, of TR SO2 Group 1

allowances to a recipient is made by or are submitted to the 

Administrator in accordance with §97.611 or §97.612 or with a 

SIP revision approved under §52.39(e) or (f) of this chapter, 

the Administrator will record such allocation or auction results

in the appropriate Allowance Management System account. 

(k) When recording the allocation or auction of TR SO2 Group 1

allowances to a TR SO2 Group 1 unit or other entity in an 

Allowance Management System account, the Administrator will 

assign each TR SO2 Group 1 allowance a unique identification 

number that will include digits identifying the year of the 

control period for which the TR SO2 Group 1 allowance is 

allocated or auctioned.

§ 97.622 Submission of TR SO2 Group 1 allowance transfers.
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(a) An authorized account representative seeking recordation of 

a TR SO2 Group 1 allowance transfer shall submit the transfer to 

the Administrator. 

(b) A TR SO2 Group 1 allowance transfer shall be correctly 

submitted if: 

(1) The transfer includes the following elements, in a format 

prescribed by the Administrator:

(i) The account numbers established by the Administrator for 

both the transferor and transferee accounts;

(ii) The serial number of each TR SO2 Group 1 allowance that is 

in the transferor account and is to be transferred; and

(iii) The name and signature of the authorized account 

representative of the transferor account and the date signed; 

and

(2) When the Administrator attempts to record the transfer, the 

transferor account includes each TR SO2 Group 1 allowance 

identified by serial number in the transfer. 

§ 97.623 Recordation of TR SO2 Group 1 allowance transfers.

(a) Within 5 business days (except as provided in paragraph (b) 

of this section) of receiving a TR SO2 Group 1 allowance transfer 
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that is correctly submitted under §97.622, the Administrator 

will record a TR SO2 Group 1 allowance transfer by moving each TR 

SO2 Group 1 allowance from the transferor account to the 

transferee account as specified in the transfer. 

(b) A TR SO2 Group 1 allowance transfer to or from a compliance 

account that is submitted for recordation after the allowance 

transfer deadline for a control period and that includes any TR 

SO2 Group 1 allowances allocated for any control period before 

such allowance transfer deadline will not be recorded until 

after the Administrator completes the deductions from such 

compliance account under §97.624 for the control period 

immediately before such allowance transfer deadline.

(c) Where a TR SO2 Group 1 allowance transfer is not correctly 

submitted under §97.622, the Administrator will not record such 

transfer.

(d) Within 5 business days of recordation of a TR SO2 Group 1

allowance transfer under paragraphs (a) and (b) of the section, 

the Administrator will notify the authorized account 

representatives of both the transferor and transferee accounts.

(e) Within 10 business days of receipt of a TR SO2 Group 1

allowance transfer that is not correctly submitted under 
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§97.622, the Administrator will notify the authorized account

representatives of both accounts subject to the transfer of:

(1) A decision not to record the transfer, and

(2) The reasons for such non-recordation.

§ 97.624 Compliance with TR SO2 Group 1 emissions limitation.

(a) Availability for deduction for compliance. TR SO2 Group 1

allowances are available to be deducted for compliance with a 

source's TR SO2 Group 1 emissions limitation for a control period 

in a given year only if the TR SO2 Group 1 allowances:

(1) Were allocated for such control period or a control period 

in a prior year; and

(2) Are held in the source’s compliance account as of the 

allowance transfer deadline for such control period. 

(b) Deductions for compliance. After the recordation, in 

accordance with §97.623, of TR SO2 Group 1 allowance transfers 

submitted by the allowance transfer deadline for a control 

period in a given year, the Administrator will deduct from each 

source’s compliance account TR SO2 Group 1 allowances available 

under paragraph (a) of this section in order to determine 
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whether the source meets the TR SO2 Group 1 emissions limitation 

for such control period, as follows:

(1) Until the amount of TR SO2 Group 1 allowances deducted equals 

the number of tons of total SO2 emissions from all TR SO2 Group 1

units at the source for such control period; or

(2) If there are insufficient TR SO2 Group 1 allowances to 

complete the deductions in paragraph (b)(1) of this section, 

until no more TR SO2 Group 1 allowances available under paragraph 

(a) of this section remain in the compliance account.

(c)(1) Identification of TR SO2 Group 1 allowances by serial 

number. The authorized account representative for a source's 

compliance account may request that specific TR SO2 Group 1

allowances, identified by serial number, in the compliance 

account be deducted for emissions or excess emissions for a 

control period in a given year in accordance with paragraph (b) 

or (d) of this section. In order to be complete, such request 

shall be submitted to the Administrator by the allowance 

transfer deadline for such control period and include, in a 

format prescribed by the Administrator, the identification of 

the TR SO2 Group 1 source and the appropriate serial numbers.

(2) First-in, first-out. The Administrator will deduct TR SO2

Group 1 allowances under paragraph (b) or (d) of this section 
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from the source's compliance account in accordance with a 

complete request under paragraph (c)(1) of this section or, in 

the absence of such request or in the case of identification of 

an insufficient amount of TR SO2 Group 1 allowances in such 

request, on a first-in, first-out accounting basis in the 

following order:

(i) Any TR SO2 Group 1 allowances that were allocated to the 

units at the source and not transferred out of the compliance 

account, in the order of recordation; and then

(ii) Any TR SO2 Group 1 allowances that were allocated to any 

unit and transferred to and recorded in the compliance account 

pursuant to this subpart, in the order of recordation.

(d) Deductions for excess emissions. After making the 

deductions for compliance under paragraph (b) of this section 

for a control period in a year in which the TR SO2 Group 1 source 

has excess emissions, the Administrator will deduct from the 

source's compliance account an amount of TR SO2 Group 1

allowances, allocated for a control period in a prior year or 

the control period in the year of the excess emissions or in the 

immediately following year, equal to two times the number of 

tons of the source's excess emissions.
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(e) Recordation of deductions. The Administrator will record in 

the appropriate compliance account all deductions from such an 

account under paragraphs (b) and (d) of this section.

§ 97.625 Compliance with TR SO2 Group 1 assurance provisions.

(a) Availability for deduction. TR SO2 Group 1 allowances are 

available to be deducted for compliance with the TR SO2 Group 1

assurance provisions for a control period in a given year by the 

owners and operators of a group of one or more TR SO2 Group 1

sources and units in a State (and Indian country within the 

borders of such State) only if the TR SO2 Group 1 allowances: 

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

control period in the given year or in the immediately following 

year; and

(2) Are held in the assurance account, established by the 

Administrator for such owners and operators of such group of TR 

SO2 Group 1 sources and units in such State (and Indian country 

within the borders of such State) under paragraph (b)(3) of this 

section, as of the deadline established in paragraph (b)(4) of 

this section. 

(b) Deductions for compliance. The Administrator will deduct TR 

SO2 Group 1 allowances available under paragraph (a) of this 
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section for compliance with the TR SO2 Group 1 assurance 

provisions for a State for a control period in a given year in 

accordance with the following procedures:

(1) By June 1, 2013 and June 1 of each year thereafter, the 

Administrator will:

(i) Calculate, for each State (and Indian country within the 

borders of such State), the total SO2 emissions from all TR SO2

Group 1 units at TR SO2 Group 1 sources in the State (and Indian 

country within the borders of such State) during the control 

period in the year before the year of this calculation deadline 

and the amount, if any, by which such total SO2 emissions exceed 

the State assurance level as described in §97.606(c)(2)(iii); 

and

(ii) Promulgate a notice of data availability of the results of 

the calculations required in paragraph (b)(1)(i) of this 

section, including separate calculations of the SO2 emissions 

from each TR SO2 Group 1 source. 

(2) For each notice of data availability required in paragraph 

(b)(1)(ii) of this section and for any State (and Indian country 

within the borders of such State) identified in such notice as 

having TR SO2 Group 1 units with total SO2 emissions exceeding 
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the State assurance level for a control period in a given year, 

as described in §97.606(c)(2)(iii):

(i) By July 1 immediately after the promulgation of such notice, 

the designated representative of each TR SO2 Group 1 source in 

each such State (and Indian country within the borders of such 

State) shall submit a statement, in a format prescribed by the 

Administrator, providing for each TR SO2 Group 1 unit (if any) at 

the source that operates during, but is not allocated an amount 

of TR SO2 Group 1 allowances for, such control period, the unit’s 

allowable SO2 emission rate for such control period and, if such 

rate is expressed in lb per mmBtu, the unit’s heat rate. 

(ii) By August 1 immediately after the promulgation of such 

notice, the Administrator will calculate, for each such State 

(and Indian country within the borders of such State) and such 

control period and each common designated representative for 

such control period for a group of one or more TR SO2 Group 1

sources and units in the State (and Indian country within the 

borders of such State), the common designated representative’s 

share of the total SO2 emissions from all TR SO2 Group 1 units at 

TR SO2 Group 1 sources in the State (and Indian country within 

the borders of such State), the common designated 

representative’s assurance level, and the amount (if any) of TR 

SO2 Group 1 allowances that the owners and operators of such 
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group of sources and units must hold in accordance with the 

calculation formula in §97.606(c)(2)(i) and will promulgate a 

notice of data availability of the results of these 

calculations. 

(iii) The Administrator will provide an opportunity for 

submission of objections to the calculations referenced by the 

notice of data availability required in paragraph (b)(2)(ii) of 

this section and the calculations referenced by the relevant 

notice of data availability required in paragraph (b)(1)(i) of 

this section. 

(A) Objections shall be submitted by the deadline specified in 

such notice and shall be limited to addressing whether the 

calculations referenced in the relevant notice required under 

paragraph (b)(1)(ii) of this section and referenced in the 

notice required under paragraph (b)(2)(ii) of this section are 

in accordance with §97.606(c)(2)(iii), §§97.606(b) and 97.630 

through 97.635, the definitions of “common designated 

representative”, “common designated representative’s assurance 

level”, and “common designated representative’s share” in 

§97.602, and the calculation formula in §97.606(c)(2)(i).

(B) The Administrator will adjust the calculations to the extent 

necessary to ensure that they are in accordance with the 
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provisions referenced in paragraph (b)(2)(iii)(A) of this 

section. By October 1 immediately after the promulgation of 

such notice, the Administrator will promulgate a notice of data 

availability of any adjustments that the Administrator 

determines to be necessary and the reasons for accepting or 

rejecting any objections submitted in accordance with paragraph 

(b)(2)(iii)(A) of this section.

(3) For any State (and Indian country within the borders of such 

State) referenced in each notice of data availability required 

in paragraph (b)(2)(iii)(B) of this section as having TR SO2

Group 1 units with total SO2 emissions exceeding the State 

assurance level for a control period in a given year, the 

Administrator will establish one assurance account for each set 

of owners and operators referenced, in the notice of data 

availability required under paragraph (b)(2)(iii)(B) of this 

section, as all of the owners and operators of a group of TR SO2

Group 1 sources and units in the State (and Indian country 

within the borders of such State) having a common designated 

representative for such control period and as being required to 

hold TR SO2 Group 1 allowances. 

(4)(i) As of midnight of November 1 immediately after the 

promulgation of each notice of data availability required in 

paragraph (b)(2)(iii)(B) of this section, the owners and 
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operators described in paragraph (b)(3) of this section shall 

hold in the assurance account established for the them and for 

the appropriate TR SO2 Group 1 sources, TR SO2 Group 1 units, and 

State (and Indian country within the borders of such State) 

under paragraph (b)(3) of this section a total amount of TR SO2

Group 1 allowances, available for deduction under paragraph (a) 

of this section, equal to the amount such owners and operators 

are required to hold with regard to such sources, units and 

State (and Indian country within the borders of such State) as 

calculated by the Administrator and referenced in such notice. 

(ii) Notwithstanding the allowance-holding deadline specified in 

paragraph (b)(4)(i) of this section, if November 1 is not a 

business day, then such allowance-holding deadline shall be 

midnight of the first business day thereafter.

(5) After November 1 (or the date described in paragraph 

(b)(4)(ii) of this section) immediately after the promulgation 

of each notice of data availability required in paragraph 

(b)(2)(iii)(B) of this section and after the recordation, in 

accordance with §97.623, of TR SO2 Group 1 allowance transfers 

submitted by midnight of such date, the Administrator will 

determine whether the owners and operators described in 

paragraph (b)(3) of this section hold, in the assurance account 

for the appropriate TR SO2 Group 1 sources, TR SO2 Group 1 units, 
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and State (and Indian country within the borders of such State) 

established under paragraph (b)(3) of this section, the amount 

of TR SO2 Group 1 allowances available under paragraph (a) of 

this section that the owners and operators are required to hold 

with regard to such sources, units, and State (and Indian 

country within the borders of such State) as calculated by the 

Administrator and referenced in the notice required in paragraph 

(b)(2)(iii)(B) of this section.

(6) Notwithstanding any other provision of this subpart and any 

revision, made by or submitted to the Administrator after the 

promulgation of the notice of data availability required in 

paragraph (b)(2)(iii)(B) of this section for a control period in 

a given year, of any data used in making the calculations 

referenced in such notice, the amounts of TR SO2 Group 1

allowances that the owners and operators are required to hold in 

accordance with §97.606(c)(2)(i) for such control period shall 

continue to be such amounts as calculated by the Administrator 

and referenced in such notice required in paragraph 

(b)(2)(iii)(B) of this section, except as follows:

(i) If any such data are revised by the Administrator as a 

result of a decision in or settlement of litigation concerning 

such data on appeal under part 78 of this chapter of such 

notice, or on appeal under section 307 of the Clean Air Act of a 
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decision rendered under part 78 of this chapter on appeal of 

such notice, then the Administrator will use the data as so 

revised to recalculate the amounts of TR SO2 Group 1 allowances 

that owners and operators are required to hold in accordance 

with the calculation formula in §97.606(c)(2)(i) for such 

control period with regard to the TR SO2 Group 1 sources, TR SO2

Group 1 units, and State (and Indian country within the borders 

of such State) involved, provided that such litigation under 

part 78 of this chapter, or the proceeding under part 78 of this 

chapter that resulted in the decision appealed in such 

litigation under section 307 of the Clean Air Act, was initiated 

no later than 30 days after promulgation of such notice required 

in paragraph (b)(2)(iii)(B) of this section.

(ii) If any such data are revised by the owners and operators of 

a TR SO2 Group 1 source and TR SO2 Group 1 unit whose designated 

representative submitted such data under paragraph (b)(2)(i) of 

this section, as a result of a decision in or settlement of 

litigation concerning such submission, then the Administrator 

will use the data as so revised to recalculate the amounts of TR 

SO2 Group 1 allowances that owners and operators are required to 

hold in accordance with the calculation formula in 

§97.606(c)(2)(i) for such control period with regard to the TR 

SO2 Group 1 sources, TR SO2 Group 1 units, and State (and Indian 
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country within the borders of such State) involved, provided 

that such litigation was initiated no later than 30 days after 

promulgation of such notice required in paragraph (b)(2)(iii)(B) 

of this section.

(iii) If the revised data are used to recalculate, in accordance 

with paragraphs (b)(6)(i) and (ii) of this section, the amount 

of TR SO2 Group 1 allowances that the owners and operators are 

required to hold for such control period with regard to the TR 

SO2 Group 1 sources, TR SO2 Group 1 units, and State (and Indian 

country within the borders of such State) involved—

(A) Where the amount of TR SO2 Group 1 allowances that the owners 

and operators are required to hold increases as a result of the 

use of all such revised data, the Administrator will establish a 

new, reasonable deadline on which the owners and operators shall 

hold the additional amount of TR SO2 Group 1 allowances in the 

assurance account established by the Administrator for the 

appropriate TR SO2 Group 1 sources, TR SO2 Group 1 units, and 

State (and Indian country within the borders of such State) 

under paragraph (b)(3) of this section. The owners’ and 

operators’ failure to hold such additional amount, as required, 

before the new deadline shall not be a violation of the Clean 

Air Act. The owners’ and operators’ failure to hold such 

additional amount, as required, as of the new deadline shall be 
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a violation of the Clean Air Act. Each TR SO2 Group 1 allowance 

that the owners and operators fail to hold as required as of the 

new deadline, and each day in such control period, shall be a 

separate violation of the Clean Air Act. 

(B) For the owners and operators for which the amount of TR SO2

Group 1 allowances required to be held decreases as a result of 

the use of all such revised data, the Administrator will record, 

in all accounts from which TR SO2 Group 1 allowances were 

transferred by such owners and operators for such control period 

to the assurance account established by the Administrator for 

the appropriate at TR SO2 Group 1 sources, TR SO2 Group 1 units, 

and State (and Indian country within the borders of such State) 

under paragraph (b)(3) of this section, a total amount of the TR 

SO2 Group 1 allowances held in such assurance account equal to 

the amount of the decrease. If TR SO2 Group 1 allowances were 

transferred to such assurance account from more than one 

account, the amount of TR SO2 Group 1 allowances recorded in each 

such transferor account will be in proportion to the percentage 

of the total amount of TR SO2 Group 1 allowances transferred to 

such assurance account for such control period from such 

transferor account. 

(C) Each TR SO2 Group 1 allowance held under paragraph 

(b)(6)(iii)(A) of this section as a result of recalculation of 
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requirements under the TR SO2 Group 1 assurance provisions for 

such control period must be a TR SO2 Group 1 allowance allocated 

for a control period in a year before or the year immediately 

following, or in the same year as, the year of such control 

period. 

§ 97.626 Banking.

(a) A TR SO2 Group 1 allowance 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 TR SO2 Group 1 allowance that is held in a compliance 

account or a general account will remain in such account unless 

and until the TR SO2 Group 1 allowance is deducted or transferred 

under §97.611(c), §97.623, §97.624, §97.625, 97.627, or 97.628.

§ 97.627 Account error.

The Administrator may, at his or her sole discretion and on his 

or her own motion, correct any error in any Allowance Management 

System account. Within 10 business days of making such 

correction, the Administrator will notify the authorized account 

representative for the account.

§ 97.628 Administrator’s action on submissions.
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(a) The Administrator may review and conduct independent audits 

concerning any submission under the TR SO2 Group 1 Trading 

Program and make appropriate adjustments of the information in 

the submission.

(b) The Administrator may deduct TR SO2 Group 1 allowances from 

or transfer TR SO2 Group 1 allowances to a compliance account or 

an assurance account, based on the information in a submission, 

as adjusted under paragraph (a)(1) of this section, and record 

such deductions and transfers.

§ 97.629 [RESERVED]

§ 97.630 General monitoring, recordkeeping, and reporting 

requirements.

The owners and operators, and to the extent applicable, the 

designated representative, of a TR SO2 Group 1 unit, shall comply 

with the monitoring, recordkeeping, and reporting requirements 

as provided in this subpart and subparts F and G of part 75 of 

this chapter. For purposes of applying such requirements, the 

definitions in §97.602 and in §72.2 of this chapter shall apply, 

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 “TR SO2

Group 1 unit,“ “designated representative,” and “continuous 
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emission monitoring system” (or “CEMS”) respectively as defined 

in §97.602, and the term “newly affected unit” shall be deemed 

to mean “newly affected TR SO2 Group 1 unit”. The owner or 

operator of a unit that is not a TR SO2 Group 1 unit but that is 

monitored under §75.16(b)(2) of this chapter shall comply with 

the same monitoring, recordkeeping, and reporting requirements 

as a TR SO2 Group 1 unit.

(a) Requirements for installation, certification, and data 

accounting. The owner or operator of each TR SO2 Group 1 unit 

shall:

(1) Install all monitoring systems required under this subpart 

for monitoring SO2 mass emissions and individual unit heat input 

(including all systems required to monitor SO2 concentration, 

stack gas moisture content, stack gas flow rate, CO2 or O2

concentration, and fuel flow rate, as applicable, in accordance 

with §§75.11 and 75.16 of this chapter);

(2) Successfully complete all certification tests required under 

§97.631 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
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(3) Record, report, and quality-assure the data from the 

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

(b) Compliance deadlines. Except as provided in paragraph (e) of 

this section, the owner or operator shall meet the monitoring 

system certification and other requirements of paragraphs (a)(1) 

and (2) of this section on or before the following dates and

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 TR SO2 Group 1 unit that 

commences commercial operation before July 1, 2011, January 1, 

2012.

(2) For the owner or operator of a TR SO2 Group 1 unit that 

commences commercial operation on or after July 1, 2011, by the 

later of the following:

(i) January 1, 2012; or

(ii) 180 calendar days after the date on which the unit 

commences commercial operation.
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(3) The owner or operator of a TR SO2 Group 1 unit for which 

construction of a new stack or flue or installation of add-on SO2

emission controls is completed after the applicable deadline 

under paragraph (b)(1) or (2) of this section shall meet the 

requirements of §§75.4(e)(1) through (e)(4) of this chapter, 

except that:

(i) Such requirements shall apply to the monitoring systems 

required under §97.630 through §97.635, rather than the 

monitoring systems required under part 75 of this chapter;

(ii) SO2 concentration, stack gas moisture content, stack gas 

volumetric flow rate, and O2 or CO2 concentration data shall be 

determined and reported, rather than the data listed in 

§75.4(e)(2) of this chapter; and

(iii) Any petition for another procedure under §75.4(e)(2) of 

this chapter shall be submitted under §97.635, rather than 

§75.66.

(c) Reporting data. The owner or operator of a TR SO2 Group 1

unit that does not meet the applicable compliance date set forth

in paragraph (b) of this section for any monitoring system under 

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

system, determine, record, and report maximum potential (or, as 

appropriate, minimum potential) values for SO2 concentration,
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stack gas flow rate, stack gas moisture content, fuel flow rate, 

and any other parameters required to determine SO2 mass emissions 

and heat input in accordance with § 75.31(b)(2) or (c)(3) of 

this chapter or section 2.4 of appendix D to part 75 of this 

chapter, as applicable.

(d) Prohibitions. (1) No owner or operator of a TR SO2 Group 1

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 §97.635.

(2) No owner or operator of a TR SO2 Group 1 unit shall operate 

the unit so as to discharge, or allow to be discharged, SO2 to 

the atmosphere without accounting for all such SO2 in accordance 

with the applicable provisions of this subpart and part 75 of 

this chapter.

(3) No owner or operator of a TR SO2 Group 1 unit shall disrupt 

the continuous emission monitoring system, any portion thereof, 

or any other approved emission monitoring method, and thereby 

avoid monitoring and recording SO2 mass discharged into the 

atmosphere or heat input, except for periods of recertification 

or periods when calibration, quality assurance testing, or 
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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 TR SO2 Group 1 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 §97.605 that is in effect;

(ii) The owner or operator is monitoring emissions from the unit 

with another certified monitoring system approved, in accordance 

with the applicable provisions of this subpart and part 75 of 

this chapter, by the Administrator for use at that unit that 

provides emission data for the same pollutant or parameter as 

the retired or discontinued monitoring system; or

(iii) The 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 §97.631(d)(3)(i).
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(e) Long-term cold storage. The owner or operator of a TR SO2

Group 1 unit is subject to the applicable provisions of §75.4(d) 

of this chapter concerning units in long-term cold storage.

§ 97.631 Initial monitoring system certification and 

recertification procedures.

(a) The owner or operator of a TR SO2 Group 1 unit shall be 

exempt from the initial certification requirements of this 

section for a monitoring system under § 97.630(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 appendices B and 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 § 97.630(a)(1) that is exempt from 

initial certification requirements under paragraph (a) of this 

section.
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(c) [Reserved]

(d) Except as provided in paragraph (a) of this section, the 

owner or operator of a TR SO2 Group 1 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 §97.630(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 §97.630(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 §97.630(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 
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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 

§97.630(a)(1) that may significantly affect the ability of the 

system to accurately measure or record SO2 mass emissions or heat 

input rate or to meet the quality-assurance and quality-control 

requirements of §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 §97.630(a)(1) is subject to the recertification 
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requirements in §75.20(g)(6) of this chapter.

(3) Approval process for initial certification and 

recertification. For initial certification of a continuous 

monitoring system under §97.630(a)(1), paragraphs (d)(3)(i) 

through (v) of this section apply. For recertifications of such 

monitoring systems, paragraphs (d)(3)(i) through (iv) of this 

section and 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) apply, provided that in applying paragraphs 

(d)(3)(i) through (iv) of this section, the words 

“certification” and “initial certification” are replaced by the 

word “recertification” and the word “certified” is replaced by 

with the word “recertified”. 

(i) Notification of certification. The designated 

representative shall submit to the appropriate EPA Regional 

Office and the Administrator written notice of the dates of 

certification testing, in accordance with §97.633.

(ii) Certification application. The designated representative 

shall submit to the Administrator a certification application 

for each monitoring system. A complete certification 

application shall include the information specified in §75.63 of 
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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 

TR SO2 Group 1 Trading Program for a period not to exceed 120 

days after receipt by the Administrator of the complete 

certification application for the monitoring system under 

paragraph (d)(3)(ii) of this section. Data measured and 

recorded by the provisionally certified monitoring system, in 

accordance with the requirements of part 75 of this chapter, 

will be considered valid quality-assured data (retroactive to 

the date and time of provisional certification), provided that 

the Administrator does not invalidate the provisional 

certification by issuing a notice of disapproval within 120 days 

of the date of receipt of the complete certification application 

by the Administrator.

(iv) Certification application approval process. The 

Administrator will issue a written notice of approval or 

disapproval of the certification application to the owner or 

operator within 120 days of receipt of the complete 

certification application under paragraph (d)(3)(ii) of this 
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section. In the event the Administrator does not issue such a 

notice within such 120-day period, each monitoring system that 

meets the applicable performance requirements of part 75 of this 

chapter and is included in the certification application will be 

deemed certified for use under the TR SO2 Group 1 Trading 

Program.

(A) Approval notice. If the certification application is 

complete and shows that each monitoring system meets the 

applicable performance requirements of part 75 of this chapter, 

then the Administrator will issue a written notice of approval 

of the certification application within 120 days of receipt.

(B) Incomplete application notice. If the certification 

application is not complete, then the Administrator will issue a 

written notice of incompleteness that sets a reasonable date by 

which the designated representative must submit the additional 

information required to complete the certification application. 

If the designated representative does not comply with the notice 

of incompleteness by the specified date, then the Administrator 

may issue a notice of disapproval under paragraph (d)(3)(iv)(C) 

of this section. 
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(C) Disapproval notice. If the certification application shows 

that any monitoring system does not meet the performance 

requirements of part 75 of this chapter or if the certification 

application is incomplete and the requirement for disapproval 

under paragraph (d)(3)(iv)(B) of this section is met, then the 

Administrator will issue a written notice of disapproval of the 

certification application. Upon issuance of such notice of 

disapproval, the provisional certification is invalidated by the 

Administrator and the data measured and recorded by each 

uncertified monitoring system shall not be considered valid 

quality-assured data beginning with the date and hour of 

provisional certification (as defined under §75.20(a)(3) of this 

chapter). 

(D) Audit decertification. The Administrator may issue a notice 

of disapproval of the certification status of a monitor in 

accordance with §97.632(b).

(v) Procedures for loss of certification. If the Administrator 

issues a notice of disapproval of a certification application 

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

disapproval of certification status under paragraph 

(d)(3)(iv)(D) of this section, then:
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(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 SO2 pollutant concentration monitor and 

disapproved flow monitor, respectively, the maximum potential 

concentration of SO2 and the maximum potential flow rate, as 

defined in sections 2.1.1.1 and 2.1.4.1 of appendix A to part 75 

of this chapter.

(2) For a disapproved moisture monitoring system and disapproved 

diluent gas monitoring system, respectively, the minimum 

potential moisture percentage and either the maximum potential 

CO2 concentration or the minimum potential O2 concentration (as 

applicable), as defined in sections 2.1.5, 2.1.3.1, and 2.1.3.2 

of appendix A to part 75 of this chapter.

(3) For a disapproved fuel flowmeter system, the maximum 

potential fuel flow rate, as defined in section 2.4.2.1 of 

appendix D to part 75 of this chapter.
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(B) The designated representative shall submit a notification of 

certification retest dates and a new certification application 

in accordance with paragraphs (d)(3)(i) and (ii) of this 

section.

(C) The owner or operator shall repeat all certification tests 

or other requirements that were failed by the monitoring system, 

as indicated in the Administrator's notice of disapproval, no 

later than 30 unit operating days after the date of issuance of 

the notice of disapproval.

(e) 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.

(f) The designated representative of each unit for which the 

owner or operator intends to use an alternative monitoring 

system approved by the Administrator under subpart E of part 75 
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of this chapter shall comply with the applicable notification 

and application procedures of §75.20(f) of this chapter.

§ 97.632 Monitoring system out-of-control periods.

(a) General provisions. 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 appendix D to part 75 of this 

chapter.

(b) Audit decertification. Whenever both an audit of a 

monitoring system and a review of the initial certification or 

recertification application reveal that any monitoring system 

should not have been certified or recertified because it did not 

meet a particular performance specification or other requirement 

under §97.631 or the applicable provisions of part 75 of this 

chapter, both at the time of the initial certification or 

recertification application submission and at the time of the 

audit, the Administrator will issue a notice of disapproval of 

the certification status of such monitoring system. For the 

purposes of this paragraph, an audit shall be either a field 

audit or an audit of any information submitted to the 

Administrator or any State or permitting authority. By issuing 
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the notice of disapproval, the Administrator revokes 

prospectively the certification status of the monitoring system. 

The data measured and recorded by the monitoring system shall 

not be considered valid quality-assured data from the date of 

issuance of the notification of the revoked certification status 

until the date and time that the owner or operator completes 

subsequently approved initial certification or recertification 

tests for the monitoring system. The owner or operator shall 

follow the applicable initial certification or recertification 

procedures in §97.631 for each disapproved monitoring system.

§ 97.633 Notifications concerning monitoring.

The designated representative of a TR SO2 Group 1 unit shall 

submit written notice to the Administrator in accordance with 

§75.61 of this chapter.

§ 97.634 Recordkeeping and reporting.

(a) General provisions. The designated representative shall 

comply with all recordkeeping and reporting requirements in

paragraphs (b) through (e) of this section, the applicable 

recordkeeping and reporting requirements in subparts F and G of 

part 75 of this chapter, and the requirements of §97.614(a).

(b) Monitoring plans. The owner or operator of a TR SO2 Group 1 
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unit shall comply with requirements of §75.62 of this chapter. 

(c) Certification applications. The designated representative 

shall submit an application to the Administrator within 45 days 

after completing all initial certification or recertification 

tests required under §97.631, including the information required 

under §75.63 of this chapter.

(d) Quarterly reports. The designated representative shall 

submit quarterly reports, as follows:

(1) The designated representative shall report the SO2 mass 

emissions data and heat input data for the TR SO2 Group 1 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, 2011, the calendar quarter covering January 1, 2012 through 

March 31, 2012; or

(ii) For a unit that commences commercial operation on or after 

July 1, 2011, the calendar quarter corresponding to the earlier 

of the date of provisional certification or the applicable 

deadline for initial certification under §97.630(b), unless that 
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quarter is the third or fourth quarter of 2011, in which case 

reporting shall commence in the quarter covering January 1, 2012 

through March 31, 2012.

(2) The designated representative shall submit each quarterly 

report to the Administrator within 30 days after 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 TR SO2 Group 1 units that are also subject to the Acid 

Rain Program, TR NOX Annual Trading Program, or TR NOX Ozone 

Season 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 SO2

mass emission data, heat input data, and other information 

required by this subpart.

(4) The Administrator may review and conduct independent audits 

of any quarterly report in order to determine whether the 

quarterly report meets the requirements of this subpart and part 

75 of this chapter, including the requirement to use substitute 

data. 
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(i) The Administrator will notify the designated representative 

of any determination that the quarterly report fails to meet any 

such requirements and specify in such notification any 

corrections that the Administrator believes are necessary to 

make through resubmission of the quarterly report and a 

reasonable time period within which the designated 

representative must respond. Upon request by the designated 

representative, the Administrator may specify reasonable 

extensions of such time period. Within the time period 

(including any such extensions) specified by the Administrator, 

the designated representative shall resubmit the quarterly 

report with the corrections specified by the Administrator, 

except to the extent the designated representative provides 

information demonstrating that a specified correction is not 

necessary because the quarterly report already meets the 

requirements of this subpart and part 75 of this chapter that 

are relevant to the specified correction.

(ii) Any resubmission of a quarterly report shall meet the 

requirements applicable to the submission of a quarterly report 

under this subpart and part 75 of this chapter, except for the 

deadline set forth in paragraph (d)(2) of this section.

(e) Compliance certification. The designated representative 

shall submit to the Administrator a compliance certification (in 
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a format prescribed by the Administrator) in support of each 

quarterly report based on reasonable inquiry of those persons 

with primary responsibility for ensuring that all of the unit's 

emissions are correctly and fully monitored. The certification 

shall state that:

(1) The monitoring data submitted were recorded in accordance 

with the applicable requirements of this subpart and part 75 of 

this chapter, including the quality assurance procedures and 

specifications; and

(2) For a unit with add-on SO2 emission controls and for all 

hours where SO2 data are substituted in accordance with 

§75.34(a)(1) of this chapter, the add-on emission controls were 

operating within the range of parameters listed in the quality 

assurance/quality control program under appendix B to part 75 of 

this chapter and the substitute data values do not 

systematically underestimate SO2 emissions.

§ 97.635 Petitions for alternatives to monitoring, 

recordkeeping, or reporting requirements.

(a) The designated representative of a TR SO2 Group 1 unit may 

submit a petition under §75.66 of this chapter to the 
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Administrator, requesting approval to apply an alternative to 

any requirement of §§97.630 through 97.634. 

(b) A petition submitted under paragraph (a) of this section 

shall include sufficient information for the evaluation of the 

petition, including, at a minimum, the following information:

(i) Identification of each unit and source covered by the 

petition;

(ii) A detailed explanation of why the proposed alternative is 

being suggested in lieu of the requirement;

(iii) A description and diagram of any equipment and procedures 

used in the proposed alternative;

(iv) A demonstration that the proposed alternative is consistent 

with the purposes of the requirement for which the alternative 

is proposed and with the purposes of this subpart and part 75 of 

this chapter and that any adverse effect of approving the 

alternative will be de minimis; and

(v) Any other relevant information that the Administrator may 

require. 

(c) Use of an alternative to any requirement referenced in 

paragraph (a) of this section is in accordance with this subpart 
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only to the extent that the petition is approved in writing by 

the Administrator and that such use is in accordance with such 

approval.

77. Part 97 is amended by adding subpart DDDDD to read as 

follows:

Subpart DDDDD—TR SO2 Group 2 Trading Program 

97.701 Purpose.

97.702 Definitions.

97.703 Measurements, abbreviations, and acronyms.

97.704 Applicability.

97.705 Retired unit exemption.

97.706 Standard requirements.

97.707 Computation of time.

97.708 Administrative appeal procedures.

97.709 [Reserved]

97.710 State SO2 Group 2 trading budgets, new unit setasides, Indian country new unit set-asides and variability 

limits.
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97.711 Timing requirements for TR SO2 Group 2 allowance 

allocations.

97.712 TR SO2 Group 2 allowance allocations to new units.

97.713 Authorization of designated representative and alternate 

designated representative.

97.714 Responsibilities of designated representative and 

alternate designated representative.

97.715 Changing designated representative and alternate 

designated representative; changes in owners and operators.

97.716 Certificate of representation.

97.717 Objections concerning designated representative and 

alternate designated representative.

97.718 Delegation by designated representative and alternate 

designated representative.

97.719 [Reserved]

97.720 Establishment of compliance accounts and general 

accounts.

97.721 Recordation of TR SO2 Group 2 allowance allocations.

97.722 Submission of TR SO2 Group 2 allowance transfers.
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97.723 Recordation of TR SO2 Group 2 allowance transfers.

97.724 Compliance with TR SO2 Group 2 emissions limitation.

97.725 Compliance with TR SO2 Group 2 assurance provisions.

97.726 Banking.

97.727 Account error.

97.728 Administrator’s action on submissions.

97.729 [RESERVED]

97.730 General monitoring, recordkeeping, and reporting 

requirements.

97.731 Initial monitoring system certification and 

recertification procedures.

97.732 Monitoring system out-of-control periods.

97.733 Notifications concerning monitoring.

97.734 Recordkeeping and reporting.

97.735 Petitions for alternatives to monitoring, recordkeeping, 

or reporting requirements.

Subpart DDDDD—TR SO2 Group 2 Trading Program 

§ 97.701 Purpose.
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This subpart sets forth the general, designated representative, 

allowance, and monitoring provisions for the Transport Rule (TR) 

SO2 Group 2 Trading Program, under section 110 of the Clean Air 

Act and §52.39 of this chapter, as a means of mitigating 

interstate transport of fine particulates and sulfur dioxide.

§ 97.702 Definitions.

The terms used in this subpart shall have the meanings set forth 

in this section as follows:

Acid Rain Program means a multi-state SO2 and NOX air pollution 

control and emission reduction program established by the 

Administrator under title IV of the Clean Air Act and parts 72 

through 78 of this chapter.

Administrator means the Administrator of the United States 

Environmental Protection Agency or the Director of the Clean Air 

Markets Division (or its successor determined by the 

Administrator) of the United States Environmental Protection 

Agency, the Administrator's duly authorized representative under 

this subpart.

Allocate or allocation means, with regard to TR SO2 Group 2 

allowances, the determination by the Administrator, State, or 

permitting authority, in accordance with this subpart and any 
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SIP revision submitted by the State and approved by the 

Administrator under §52.39(g), (h), or (i) of this chapter, of 

the amount of such TR SO2 Group 2 allowances to be initially 

credited, at no cost to the recipient, to:

(1) A TR SO2 Group 2 unit;

(2) A new unit set-aside;

(3) An Indian country new unit set-aside; or

(4) An entity not listed in paragraphs (1) through (3) of this 

definition;

(5) Provided that, if the Administrator, State, or permitting 

authority initially credits, to a TR SO2 Group 2 unit qualifying 

for an initial credit, a credit in the amount of zero TR SO2

Group 2 allowances, the TR SO2 Group 2 unit will be treated as 

being allocated an amount (i.e., zero) of TR SO2 Group 2 

allowances. 

Allowable SO2 emission rate means, for a unit, the most stringent 

State or federal SO2 emission rate limit (in lb/MWhr or, if in 

lb/mmBtu, converted to lb/MWhr by multiplying it by the unit’s 

heat rate in mmBtu/MWhr) that is applicable to the unit and 

covers the longest averaging period not exceeding one year. 
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Allowance Management System means the system by which the 

Administrator records allocations, deductions, and transfers of 

TR SO2 Group 2 allowances under the TR SO2 Group 2 Trading 

Program. Such allowances are allocated, recorded, held, 

deducted, or transferred only as whole allowances. 

Allowance Management System account means an account in the 

Allowance Management System established by the Administrator for 

purposes of recording the allocation, holding, transfer, or 

deduction of TR SO2 Group 2 allowances.

Allowance transfer deadline means, for a control period in a 

given year, midnight of March 1 (if it is a business day), or 

midnight of the first business day thereafter (if March 1 is not 

a business day), immediately after such control period and is 

the deadline by which a TR SO2 Group 2 allowance transfer must be 

submitted for recordation in a TR SO2 Group 2 source's compliance 

account in order to be available for use in complying with the 

source's TR SO2 Group 2 emissions limitation for such control 

period in accordance with §§97.706 and 97.724.

Alternate designated representative means, for a TR SO2 Group 2 

source and each TR SO2 Group 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 this 
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subpart, to act on behalf of the designated representative in 

matters pertaining to the TR SO2 Group 2 Trading Program. If the 

TR SO2 Group 2 source is also subject to the Acid Rain Program, 

TR NOX Annual Trading Program, or TR NOX Ozone Season Trading 

Program, then this natural person shall be the same natural 

person as the alternate designated representative, as defined in 

the respective program. 

Assurance account means an Allowance Management System account, 

established by the Administrator under §97.725(b)(3) for certain 

owners and operators of a group of one or more TR SO2 Group 2 

sources and units in a given State (and Indian country within 

the borders of such State), in which are held TR SO2 Group 2 

allowances available for use for a control period in a given 

year in complying with the TR SO2 Group 2 assurance provisions in 

accordance with §§97.706 and 97.725. 

Authorized account representative means, for a general account, 

the natural person who is authorized, in accordance with this 

subpart, to transfer and otherwise dispose of TR SO2 Group 2 

allowances held in the general account and, for a TR SO2 Group 2 

source’s compliance account, the designated representative of 

the source.
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Automated data acquisition and handling system or DAHS means the 

component of the continuous emission monitoring system, or other 

emissions monitoring system approved for use under this subpart, 

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 this subpart. 

Biomass means—

(1) Any organic material grown for the purpose of being 

converted to energy;

(2) Any organic byproduct of agriculture that can be converted 

into energy; or

(3) Any material that can be converted into energy and is 

nonmerchantable for other purposes, that is segregated from 

other material that is nonmerchantable for other purposes, and 

that is;

(i) A forest-related organic resource, including mill residues, 

precommercial thinnings, slash, brush, or byproduct from 

conversion of trees to merchantable material; or
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(ii) A wood material, including pallets, crates, dunnage, 

manufacturing and construction materials (other than pressuretreated, chemically-treated, or painted wood products), and 

landscape or right-of-way tree trimmings.

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 unit means a unit in which the energy input to 

the unit is first used to produce useful thermal energy, where 

at least some of the reject heat from the useful thermal energy 

application or process is then used for electricity production.

Business day means a day that does not fall on a weekend or a 

federal holiday.

Certifying official means a natural person who is:

(1) For a corporation, a president, secretary, treasurer, or 

vice-president of the corporation in charge of a principal 

business function or any other person who performs similar 

policy- or decision-making functions for the corporation;

(2) For a partnership or sole proprietorship, a general partner 

or the proprietor respectively; or
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(3) For a local government entity or State, federal, or other 

public agency, a principal executive officer or ranking elected 

official.

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

Coal means “coal” as defined in §72.2 of this chapter.

Coal-derived fuel means any fuel (whether in a solid, liquid, or 

gaseous state) produced by the mechanical, thermal, or chemical 

processing of coal.

Cogeneration system means an integrated group, at a source, of 

equipment (including a boiler, or combustion turbine, and a 

steam turbine generator) designed to produce useful thermal 

energy for industrial, commercial, heating, or cooling purposes 

and electricity through the sequential use of energy. 

Cogeneration unit means a stationary, fossil-fuel-fired boiler 

or stationary, fossil-fuel-fired combustion turbine that is a 

topping-cycle unit or a bottoming-cycle unit:

(1) Operating as part of a cogeneration system; and

(2) Producing on an annual average basis—

(i) For a topping-cycle unit, 
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(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 than 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 unit, useful power not less than 45 

percent of total energy input;

(3) Provided that the requirements in paragraph (2) of this 

definition shall not apply to a calendar year referenced in 

paragraph (2) of this definition during which the unit did not 

operate at all;

(4) Provided that the total energy input under paragraphs 

(2)(i)(B) and (2)(ii) of this definition shall equal the unit's 

total energy input from all fuel, except biomass if the unit is 

a boiler; and

(5) Provided that, if, throughout its operation during the 12-

month period or a calendar year referenced in paragraph (2) of 

this definition, a unit is operated as part of a cogeneration 
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system and the cogeneration system meets on a system-wide basis 

the requirement in paragraph (2)(i)(B) or (2)(ii) of this 

definition, the unit shall be deemed to meet such requirement 

during that 12-month period or calendar year. 

Combustion turbine means an enclosed device comprising:

(1) If the device is simple cycle, 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 device is combined cycle, the equipment described in 

paragraph (1) of this definition and any associated duct burner, 

heat recovery steam generator, and steam turbine.

Commence commercial operation means, with regard to a unit:

(1) To have begun to produce steam, gas, or other heated medium 

used to generate electricity for sale or use, including test 

generation, except as provided in §97.705.

(i) For a unit that is a TR SO2 Group 2 unit under §97.704 on the 

later of January 1, 2005 or the date the unit commences 

commercial operation as defined in the introductory text of 

paragraph (1) of this definition and that subsequently undergoes 

a physical change or is moved to a new location or source, such 
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date shall remain the date of commencement of commercial 

operation of the unit, which shall continue to be treated as the 

same unit.

(ii) For a unit that is a TR SO2 Group 2 unit under §97.704 on 

the later of January 1, 2005 or the date the unit commences 

commercial operation as defined in the introductory text of 

paragraph (1) of this definition and that is subsequently 

replaced by a unit at the same or a different source, such date 

shall remain the replaced unit's date of commencement of 

commercial operation, and the replacement unit shall be treated 

as a separate unit with a separate date for commencement of 

commercial operation as defined in paragraph (1) or (2) of this 

definition as appropriate.

(2) Notwithstanding paragraph (1) of this definition and except 

as provided in §97.705, for a unit that is not a TR SO2 Group 2 

unit under §97.704 on the later of January 1, 2005 or the date 

the unit commences commercial operation as defined in 

introductory text of paragraph (1) of this definition, the 

unit's date for commencement of commercial operation shall be 

the date on which the unit becomes a TR SO2 Group 2 unit under 

§97.704.
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(i) For a unit with a date for commencement of commercial 

operation as defined in the introductory text of paragraph (2) 

of this definition and that subsequently undergoes a physical 

change or is moved to a different location or source, such date 

shall remain the date of commencement of commercial operation of 

the unit, which shall continue to be treated as the same unit.

(ii) For a unit with a date for commencement of commercial 

operation as defined in the introductory text of paragraph (2) 

of this definition and that is subsequently replaced by a unit 

at the same or a different source, such date shall remain the 

replaced unit's date of commencement of commercial operation, 

and the replacement unit shall be treated as a separate unit 

with a separate date for commencement of commercial operation as 

defined in paragraph (1) or (2) of this definition as 

appropriate.

Common designated representative means, with regard to a control 

period in a given year, a designated representative where, as of 

April 1 immediately after the allowance transfer deadline for 

such control period, the same natural person is authorized under 

§§97.713(a) and 97.715(a) as the designated representative for a 

group of one or more TR SO2 Group 2 sources and units located in 

a State (and Indian country within the borders of such State).
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Common designated representative’s assurance level means, with 

regard to a specific common designated representative and a 

State (and Indian country within the borders of such State) and 

control period in a given year for which the State assurance 

level is exceeded as described in §97.706(c)(2)(iii), the common 

designated representative’s share of the State SO2 Group 2 

trading budget with the variability limit for the State for such 

control period. 

Common designated representative’s share means, with regard to a 

specific common designated representative for a control period 

in a given year:

(1) With regard to a total amount of SO2 emissions from all TR 

SO2 Group 2 units in a State (and Indian country within the 

borders of such State) during such control period, the total 

tonnage of SO2 emissions during such control period from a group 

of one or more TR SO2 Group 2 units located in such State (and 

such Indian country) and having the common designated 

representative for such control period; 

(2) With regard to a State SO2 Group 2 trading budget for such

control period, the amount (rounded to the nearest allowance) 

equal to the sum of the total amount of TR SO2 Group 2 allowances 

allocated for such control period to a group of one or more TR 
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SO2 Group 2 units located in the State (and Indian country within 

the borders of such State) and having the common designated 

representative for such control period and of the total amount 

of TR SO2 Group 2 allowances purchased by an owner or operator of 

such TR SO2 Group 2 units in an auction for such control period 

and submitted by the State or the permitting authority to the 

Administrator for recordation in the compliance accounts for 

such TR SO2 Group 2 units in accordance with the TR SO2 Group 2 

allowance auction provisions in a SIP revision approved by the 

Administrator under §52.39(h) or (i) of this chapter, multiplied 

by the sum of the State SO2 Group 2 trading budget under 

§97.710(a) and the State’s variability limit under §97.710(b) 

for such control period and divided by such State SO2 Group 2 

trading budget; 

(3) Provided that, in the case of a unit that operates during, 

but has no amount of TR SO2 Group 2 allowances allocated under 

§§97.711 and 97.712 for, such control period, the unit shall be 

treated, solely for purposes of this definition, as being 

allocated an amount (rounded to the nearest allowance) of TR SO2

Group 2 allowances for such control period equal to the unit’s 

allowable SO2 emission rate applicable to such control period, 

multiplied by a capacity factor of 0.85 (if the unit is a boiler 

combusting any amount of coal or coal-derived fuel during such 
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control period), 0.24 (if the unit is a simple combustion 

turbine during such control period), 0.67 (if the unit is a 

combined cycle turbine during such control period), 0.74 (if the 

unit is an integrated coal gasification combined cycle unit 

during such control period), or 0.36 (for any other unit), 

multiplied by the unit’s maximum hourly load as reported in 

accordance with this subpart and by 8,760 hours/control period, 

and divided by 2,000 lb/ton. 

Common stack means a single flue through which emissions from 2 

or more units are exhausted.

Compliance account means an Allowance Management System account, 

established by the Administrator for a TR SO2 Group 2 source 

under this subpart, in which any TR SO2 Group 2 allowance 

allocations to the TR SO2 Group 2 units at the source are 

recorded and in which are held any TR SO2 Group 2 allowances 

available for use for a control period in a given year in 

complying with the source's TR SO2 Group 2 emissions limitation 

in accordance with §§97.706 and 97.724. 

Continuous emission monitoring system or CEMS means the 

equipment required under this subpart to sample, analyze, 

measure, and provide, by means of readings recorded at least 

once every 15 minutes and using an automated data acquisition 
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and handling system (DAHS), a permanent record of SO2 emissions, 

stack gas volumetric flow rate, stack gas moisture content, and 

O2 or CO2 concentration (as applicable), in a manner consistent 

with part 75 of this chapter and §§97.730 through 97.735. The 

following systems are the principal types of continuous emission 

monitoring systems:

(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 SO2 monitoring system, consisting of a SO2 pollutant 

concentration monitor and an automated data acquisition and 

handling system and providing a permanent, continuous record of 

SO2 emissions, in parts per million (ppm);

(3) A moisture monitoring system, as defined in §75.11(b)(2) of 

this chapter and providing a permanent, continuous record of the 

stack gas moisture content, in percent H2O;

(4) A CO2 monitoring system, consisting of a CO2 pollutant 

concentration monitor (or an O2 monitor plus suitable 

mathematical equations from which the CO2 concentration is 

derived) and an automated data acquisition and handling system 
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and providing a permanent, continuous record of CO2 emissions, in 

percent CO2; and

(5) An O2 monitoring system, consisting of an O2 concentration 

monitor and an automated data acquisition and handling system 

and providing a permanent, continuous record of O2, in percent 

O2.

Control period means the period starting January 1 of a calendar 

year, except as provided in §97.706(c)(3), and ending on 

December 31 of the same year, inclusive.

Designated representative means, for a TR SO2 Group 2 source and 

each TR SO2 Group 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 this subpart, to 

represent and legally bind each owner and operator in matters 

pertaining to the TR SO2 Group 2 Trading Program. If the TR SO2

Group 2 source is also subject to the Acid Rain Program, TR NOX

Annual Trading Program, or TR NOX Ozone Season Trading Program, 

then this natural person shall be the same natural person as the 

designated representative, as defined in the respective program. 

Emissions means air pollutants exhausted from a unit or source 

into the atmosphere, as measured, recorded, and reported to the 
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Administrator by the designated representative, and as modified 

by the Administrator:

(1) In accordance with this subpart; and

(2) With regard to a period before the unit or source is 

required to measure, record, and report such air pollutants in 

accordance with this subpart, in accordance with part 75 of this 

chapter.

Excess emissions means any ton of emissions from the TR SO2 Group 

2 units at a TR SO2 Group 2 source during a control period in a 

given year that exceeds the TR SO2 Group 2 emissions limitation 

for the source for such control period.

Fossil fuel means—

(1) Natural gas, petroleum, coal, or any form of solid, liquid, 

or gaseous fuel derived from such material; or

(2) For purposes of applying the limitation on “average annual 

fuel consumption of fossil fuel” in §§97.704(b)(2)(i)(B) and 

(ii), natural gas, petroleum, coal, or any form of solid, 

liquid, or gaseous fuel derived from such material for the 

purpose of creating useful heat.
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Fossil-fuel-fired means, with regard to a unit, combusting any 

amount of fossil fuel in 2005 or any calendar year thereafter.

General account means an Allowance Management System account, 

established under this subpart, that is not a compliance account 

or an assurance account.

Generator means a device that produces electricity.

Gross electrical output means, for a unit, electricity made 

available for use, including any such electricity used in the 

power production process (which process includes, but is not 

limited to, any on-site processing or treatment of fuel 

combusted at the unit and any on-site emission controls).

Heat input means, for a unit for a specified period of time, the 

product (in mmBtu/time) of the gross calorific value of the fuel 

(in mmBtu/lb) fed into the unit multiplied by the fuel feed rate 

(in lb of fuel/time), as measured, recorded, and reported to the 

Administrator by the designated representative and as modified 

by the Administrator in accordance with this subpart and 

excluding the heat derived from preheated combustion air, 

recirculated flue gases, or exhaust.

Heat input rate means, for a unit, the amount of heat input (in 

mmBtu) divided by unit operating time (in hr) or, for a unit and
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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.

Heat rate means, for a unit, the unit’s maximum design heat 

input (in Btu/hr), divided by the product of 1,000,000 Btu/mmBtu 

and the unit’s maximum hourly load.

Indian country means “Indian country” as defined in 18 U.S.C. 

1151.

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 
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portion of the nameplate capacity and associated energy 

generated by the unit at the end of the period.

Maximum design heat input means, for a unit, the maximum amount 

of fuel per hour (in Btu/hr) that the unit is capable of 

combusting on a steady state basis as of the initial 

installation of the unit as specified by the manufacturer of the 

unit.

Monitoring system means any monitoring system that meets the 

requirements of this subpart, including a continuous emission 

monitoring system, an alternative monitoring system, or an 

excepted monitoring system under part 75 of this chapter.

Nameplate capacity means, starting from the initial installation 

of a generator, the maximum electrical generating output (in 

MWe, rounded to the nearest tenth) that the generator is capable 

of producing on a steady state basis and during continuous 

operation (when not restricted by seasonal or other deratings) 

as of such installation as specified by the manufacturer of the 

generator or, starting from the completion of any subsequent 

physical change in the generator resulting in an increase in the 

maximum electrical generating output that the generator is 

capable of producing on a steady state basis and during 

continuous operation (when not restricted by seasonal or other 
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deratings), such increased maximum amount (in MWe, rounded to 

the nearest tenth) as of such completion as specified by the 

person conducting the physical change.

Natural gas means “natural gas” as defined in §72.2 of this 

chapter.

Newly affected TR SO2 Group 2 unit means a unit that was not a TR 

SO2 Group 2 unit when it began operating but that thereafter 

becomes a TR SO2 Group 2 unit. 

Operate or operation means, with regard to a unit, to combust 

fuel.

Operator means, for a TR SO2 Group 2 source or a TR SO2 Group 2 

unit at a source respectively, any person who operates, 

controls, or supervises a TR SO2 Group 2 unit at the source or 

the TR SO2 Group 2 unit and shall include, but not be limited to, 

any holding company, utility system, or plant manager of such 

source or unit.

Owner means, for a TR SO2 Group 2 source or a TR SO2 Group 2 unit 

at a source respectively, any of the following persons:

(1) Any holder of any portion of the legal or equitable title in 

a TR SO2 Group 2 unit at the source or the TR SO2 Group 2 unit;
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(2) Any holder of a leasehold interest in a TR SO2 Group 2 unit 

at the source or the TR SO2 Group 2 unit, 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 TR SO2 Group 2 unit; and

(3) Any purchaser of power from a TR SO2 Group 2 unit at the 

source or the TR SO2 Group 2 unit under a life-of-the-unit, firm 

power contractual arrangement. 

Permanently retired means, with regard to a unit, a unit that is 

unavailable for service and that the unit’s owners and operators 

do not expect to return to service in the future. 

Permitting authority means “permitting authority” as defined in 

§§70.2 and 71.2 of this chapter.

Potential electrical output capacity means, for a unit, 33 

percent of the 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 

Administrator, to come into possession of a document, 
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information, or correspondence (whether sent in hard copy or by 

authorized electronic transmission), as indicated in an official 

log, or by a notation made on the document, information, or 

correspondence, by the Administrator in the regular course of 

business.

Recordation, record, or recorded means, with regard to TR SO2

Group 2 allowances, the moving of TR SO2 Group 2 allowances by 

the Administrator into, out of, or between Allowance Management 

System accounts, for purposes of allocation, auction, transfer, 

or deduction.

Reference method means any direct test method of sampling and 

analyzing for an air pollutant as specified in §75.22 of this 

chapter.

Replacement, replace, or replaced means, with regard to a unit, 

the demolishing of a unit, or the permanent retirement and 

permanent disabling of a unit, and the construction of another 

unit (the replacement unit) to be used instead of the demolished 

or retired unit (the replaced unit).

Sequential use of energy means:

(1) The use of reject heat from electricity production in a 

useful thermal energy application or process; or
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(2) The use of reject heat from useful thermal energy 

application or process in electricity production.

Serial number means, for a TR SO2 Group 2 allowance, the unique 

identification number assigned to each TR SO2 Group 2 allowance 

by the Administrator.

Solid waste incineration unit means a stationary, fossil-fuelfired boiler or stationary, fossil-fuel-fired combustion turbine 

that is a “solid waste incineration unit” as defined in section 

129(g)(1) of the Clean Air Act.

Source means all buildings, structures, or installations located 

in one or more contiguous or adjacent properties under common 

control of the same person or persons. This definition does not 

change or otherwise affect the definition of “major source”, 

“stationary source”, or “source” as set forth and implemented in 

a title V operating permit program or any other program under 

the Clean Air Act. 

State means one of the States that is subject to the TR SO2 Group 

2 Trading Program pursuant to §52.39(a),(c), (g), (h), and (i)

of this chapter. 
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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;

(4) Provided that compliance with any “submission” or “service” 

deadline shall be determined by the date of dispatch, 

transmission, or mailing and not the date of receipt.

Topping-cycle unit means a unit in which the energy input to the 

unit is first used to produce useful power, including 

electricity, where at least some of the reject heat from the 

electricity production is then used to provide useful thermal 

energy.

Total energy input means, for a unit, total energy of all forms 

supplied to the unit, excluding energy produced by the unit. 

Each form of energy supplied shall be measured by the lower 

heating value of that form of energy calculated as follows:

LHV = HHV − 10.55(W + 9H)

Where:
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LHV = lower heating value of the form of energy in Btu/lb,

HHV = higher heating value of the form of energy in Btu/lb,

W = weight % of moisture in the form of energy, and

H = weight % of hydrogen in the form of energy.

Total energy output means, for a unit, the sum of useful power 

and useful thermal energy produced by the unit.

TR NOX Annual Trading Program means a multi-state NOX air 

pollution control and emission reduction program established in 

accordance with subpart AAAAA of this part and §52.38(a) of this 

chapter (including such a program that is revised in a SIP 

revision approved by the Administrator under §52.38(a)(3) or (4) 

of this chapter or that is established in a SIP revision 

approved by the Administrator under §52.38(a)(5) of this 

chapter), as a means of mitigating interstate transport of fine 

particulates and NOX.

TR NOX Ozone Season Trading Program means a multi-state NOX air 

pollution control and emission reduction program established in 

accordance with subpart BBBBB of this part and §52.38(b) of this 

chapter (including such a program that is revised in a SIP 

revision approved by the Administrator under §52.38(b)(3) or (4) 

of this chapter or that is established in a SIP revision 
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approved by the Administrator under §52.38(b)(5) of this 

chapter), as a means of mitigating interstate transport of ozone 

and NOX.

TR SO2 Group 2 allowance means a limited authorization issued and 

allocated or auctioned by the Administrator under this subpart, 

or by a State or permitting authority under a SIP revision 

approved by the Administrator under §52.39(g), (h), or (i) of 

this chapter, to emit one ton of SO2 during a control period of 

the specified calendar year for which the authorization is 

allocated or auctioned or of any calendar year thereafter under 

the TR SO2 Group 2 Trading Program. 

TR SO2 Group 2 allowance deduction or deduct TR SO2 Group 2 

allowances means the permanent withdrawal of TR SO2 Group 2 

allowances by the Administrator from a compliance account (e.g.,

in order to account for compliance with the TR SO2 Group 2 

emissions limitation) or from an assurance account (e.g., in 

order to account for compliance with the assurance provisions

under §§97.706 and 97.725). 

TR SO2 Group 2 allowances held or hold TR SO2 Group 2 allowances

means the TR SO2 Group 2 allowances treated as included in an 

Allowance Management System account as of a specified point in 

time because at that time they:
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(1) Have been recorded by the Administrator in the account or 

transferred into the account by a correctly submitted, but not 

yet recorded, TR SO2 Group 2 allowance transfer in accordance 

with this subpart; and

(2) Have not been transferred out of the account by a correctly 

submitted, but not yet recorded, TR SO2 Group 2 allowance 

transfer in accordance with this subpart.

TR SO2 Group 2 emissions limitation means, for a TR SO2 Group 2 

source, the tonnage of SO2 emissions authorized in a control 

period by the TR SO2 Group 2 allowances available for deduction 

for the source under §97.724(a) for such control period.

TR SO2 Group 2 source means a source that includes one or more TR 

SO2 Group 2 units.

TR SO2 Group 2 Trading Program means a multi-state SO2 air 

pollution control and emission reduction program established in 

accordance with this subpart and §52.39(a), (c), and (g) through 

(k) of this chapter (including such a program that is revised in 

a SIP revision approved by the Administrator under §52.39(g) or 

(h) of this chapter or that is established in a SIP revision 

approved by the Administrator under §52.39(i) of this chapter),

as a means of mitigating interstate transport of fine 

particulates and SO2.
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TR SO2 Group 2 unit means a unit that is subject to the TR SO2

Group 2 Trading Program under §97.704.

Unit means a stationary, fossil-fuel-fired boiler, stationary, 

fossil-fuel-fired combustion turbine, or other stationary, 

fossil-fuel-fired combustion device. A unit that undergoes a 

physical change or is moved to a different location or source 

shall continue to be treated as the same unit. A unit (the 

replaced unit) that is replaced by another unit (the replacement 

unit) at the same or a different source shall continue to be 

treated as the same unit, and the replacement unit shall be 

treated as a separate unit.

Unit operating day means, with regard to a unit, a calendar day 

in which the unit combusts any fuel.

Unit operating hour or hour of unit operation means, with regard 

to a unit, an hour in which the unit combusts any fuel.

Useful power means, with regard to a unit, electricity or 

mechanical energy that the unit makes available for use, 

excluding any such energy used in the power production process 

(which process includes, but is not limited to, any on-site 

processing or treatment of fuel combusted at the unit and any 

on-site emission controls).
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Useful thermal energy means thermal energy that is:

(1) Made available to an industrial or commercial process (not a 

power production process), excluding any heat contained in 

condensate return or makeup water;

(2) Used in a heating application (e.g., space heating or 

domestic hot water heating); or

(3) Used in a space cooling application (i.e., in 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.

§ 97.703 Measurements, abbreviations, and acronyms.

Measurements, abbreviations, and acronyms used in this subpart 

are defined as follows:

Btu—British thermal unit

CO2—carbon dioxide

H2O—water

hr—hour
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kW—kilowatt electrical

kWh—kilowatt hour

lb—pound

mmBtu—million Btu

MWe—megawatt electrical

MWh—megawatt hour

NOX—nitrogen oxides

O2—oxygen

ppm—parts per million

scfh—standard cubic feet per hour

SO2—sulfur dioxide

yr—year

§ 97.704 Applicability.

(a) Except as provided in paragraph (b) of this section:

(1) The following units in a State (and Indian country within 

the borders of such State) shall be TR SO2 Group 2 units, and any 

source that includes one or more such units shall be a TR SO2
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Group 2 source, subject to the requirements of this subpart: any 

stationary, fossil-fuel-fired boiler or stationary, fossil-fuelfired combustion turbine serving at any time, on or after 

January 1, 2005, a generator with nameplate capacity of more 

than 25 MWe producing electricity for sale.

(2) If a stationary boiler or stationary combustion turbine 

that, under paragraph (a)(1) of this section, is not a TR SO2

Group 2 unit begins to combust fossil fuel or to serve a 

generator with nameplate capacity of more than 25 MWe producing 

electricity for sale, the unit shall become a TR SO2 Group 2 unit 

as provided in paragraph (a)(1) of this section on the first 

date on which it both combusts fossil fuel and serves such 

generator.

(b) Any unit in a State (and Indian country within the borders 

of such State) that otherwise is a TR SO2 Group 2 unit under 

paragraph (a) of this section and that meets the requirements 

set forth in paragraph (b)(1)(i) or (2)(i) of this section shall 

not be a TR SO2 Group 2 unit:

(1)(i) Any unit:

(A) Qualifying as a cogeneration unit throughout the later of 

2005 or the 12-month period starting on the date the unit first 

produces electricity and continuing to qualify as a cogeneration 
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unit throughout each calendar year ending after the later of 

2005 or such 12-month period; and

(B) Not supplying in 2005 or any calendar year thereafter more 

than one-third of the unit's potential electric output capacity 

or 219,000 MWh, whichever is greater, to any utility power 

distribution system for sale.

(ii) If, after qualifying under paragraph (b)(1)(i) of this 

section as not being a TR SO2 Group 2 unit, a unit subsequently 

no longer meets all the requirements of paragraph (b)(1)(i) of 

this section, the unit shall become a TR SO2 Group 2 unit 

starting on the earlier of January 1 after the first calendar 

year during which the unit first no longer qualifies as a 

cogeneration unit or January 1 after the first calendar year 

during which the unit no longer meets the requirements of 

paragraph (b)(1)(i)(B) of this section. The unit shall 

thereafter continue to be a TR SO2 Group 2 unit.

(2)(i) Any unit:

(A) Qualifying as a solid waste incineration unit throughout the

later of 2005 or the 12-month period starting on the date the 

unit first produces electricity and continuing to qualify as a 

solid waste incineration unit throughout each calendar year 

ending after the later of 2005 or such 12-month period; and
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(B) With an average annual fuel consumption of fossil fuel for 

the first 3 consecutive calendar years of operation starting no 

earlier than 2005 of less than 20 percent (on a Btu basis) and 

an average annual fuel consumption of fossil fuel for any 3 

consecutive calendar years thereafter of less than 20 percent 

(on a Btu basis).

(ii) If, after qualifying under paragraph (b)(2)(i) of this 

section as not being a TR SO2 Group 2 unit, a unit subsequently 

no longer meets all the requirements of paragraph (b)(1)(i) of 

this section, the unit shall become a TR SO2 Group 2 unit 

starting on the earlier of January 1 after the first calendar 

year during which the unit first no longer qualifies as a solid 

waste incineration unit or January 1 after the first 3 

consecutive calendar years after 2005 for which the unit has an 

average annual fuel consumption of fossil fuel of 20 percent or 

more. The unit shall thereafter continue to be a TR SO2 Group 2 

unit.

(c) A certifying official of an owner or operator of any unit or 

other equipment may submit a petition (including any supporting 

documents) to the Administrator at any time for a determination 

concerning the applicability, under paragraphs (a) and (b) of 

this section or a SIP revision approved under §52.39(h) or (i) 
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of this chapter, of the TR SO2 Group 2 Trading Program to the 

unit or other equipment.

(1) Petition content. The petition shall be in writing and 

include the identification of the unit or other equipment and 

the relevant facts about the unit or other equipment. The 

petition and any other documents provided to the Administrator 

in connection with the petition shall include the following 

certification statement, signed by the certifying official: “I 

am authorized to make this submission on behalf of the owners 

and operators of the unit or other equipment 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) Response. The Administrator will issue a written response to 

the petition and may request supplemental information determined 

by the Administrator to be relevant to such petition. The 
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Administrator's determination concerning the applicability, 

under paragraphs (a) and (b) of this section, of the TR SO2 Group 

2 Trading Program to the unit or other equipment shall be 

binding on any State or permitting authority unless the 

Administrator determines that the petition or other documents or 

information provided in connection with the petition contained 

significant, relevant errors or omissions.

§ 97.705 Retired unit exemption.

(a)(1) Any TR SO2 Group 2 unit that is permanently retired shall 

be exempt from §97.706(b) and (c)(1), §97.724, and §§97.730 

through 97.735. 

(2) The exemption under paragraph (a)(1) of this section shall 

become effective the day on which the TR SO2 Group 2 unit is 

permanently retired. Within 30 days of the unit's permanent 

retirement, the designated representative shall submit a 

statement to the Administrator. The statement shall state, in a 

format prescribed by the Administrator, that the unit was 

permanently retired on a specified date and will comply with the 

requirements of paragraph (b) of this section.

(b) Special provisions. (1) A unit exempt under paragraph (a) of 

this section shall not emit any SO2, starting on the date that 

the exemption takes effect.
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(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 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 

designated representative of a unit exempt under paragraph (a) 

of this section shall comply with the requirements of the TR SO2

Group 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 shall lose 

its exemption on the first date on which the unit resumes 

operation. Such unit shall be treated, for purposes of applying 

allocation, monitoring, reporting, and recordkeeping 

requirements under this subpart, as a unit that commences 

commercial operation on the first date on which the unit resumes 

operation.

§ 97.706 Standard requirements.
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(a) Designated representative requirements. The owners and 

operators shall comply with the requirement to have a designated 

representative, and may have an alternate designated 

representative, in accordance with §§97.713 through 97.718.

(b) Emissions monitoring, reporting, and recordkeeping 

requirements. (1) The owners and operators, and the designated 

representative, of each TR SO2 Group 2 source and each TR SO2

Group 2 unit at the source shall comply with the monitoring, 

reporting, and recordkeeping requirements of §§97.730 through 

97.735.

(2) The emissions data determined in accordance with §§97.730 

through 97.735 shall be used to calculate allocations of TR SO2

Group 2 allowances under §§97.711(a)(2) and (b) and 97.712 and 

to determine compliance with the TR SO2 Group 2 emissions 

limitation and assurance provisions under paragraph (c) of this 

section, provided that, for each monitoring location from which 

mass emissions are reported, the mass emissions amount used in 

calculating such allocations and determining such compliance 

shall be the mass emissions amount for the monitoring location 

determined in accordance with §§97.730 through 97.735 and 

rounded to the nearest ton, with any fraction of a ton less than 

0.50 being deemed to be zero.
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(c) SO2 emissions requirements. (1) TR SO2 Group 2 emissions 

limitation. (i) As of the allowance transfer deadline for a 

control period in a given year, the owners and operators of each 

TR SO2 Group 2 source and each TR SO2 Group 2 unit at the source 

shall hold, in the source's compliance account, TR SO2 Group 2 

allowances available for deduction for such control period under 

§97.724(a) in an amount not less than the tons of total SO2

emissions for such control period from all TR SO2 Group 2 units 

at the source.

(ii) If total SO2 emissions during a control period in a given 

year from the TR SO2 Group 2 units at a TR SO2 Group 2 source are 

in excess of the TR SO2 Group 2 emissions limitation set forth in 

paragraph (c)(1)(i) of this section, then:

(A) The owners and operators of the source and each TR SO2 Group 

2 unit at the source shall hold the TR SO2 Group 2 allowances 

required for deduction under §97.724(d); and

(B) The owners and operators of the source and each TR SO2 Group 

2 unit at the source shall pay any fine, penalty, or assessment 

or comply with any other remedy imposed, for the same 

violations, under the Clean Air Act, and each ton of such excess 

emissions and each day of such control period shall constitute a 

separate violation of this subpart and the Clean Air Act.
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(2) TR SO2 Group 2 assurance provisions. (i) If total SO2

emissions during a control period in a given year from all TR SO2

Group 2 units at TR SO2 Group 2 sources in a State (and Indian 

country within the borders of such State) exceed the State 

assurance level, then the owners and operators of such sources 

and units in each group of one or more sources and units having 

a common designated representative for such control period,

where the common designated representative’s share of such SO2

emissions during such control period exceeds the common 

designated representative’s assurance level for the State and 

such control period, shall hold (in the assurance account 

established for the owners and operators of such group) TR SO2

Group 2 allowances available for deduction for such control 

period under §97.725(a) in an amount equal to two times the 

product (rounded to the nearest whole number), as determined by 

the Administrator in accordance with §97.725(b), of multiplying—

(A) The quotient of the amount by which the common designated 

representative’s share of such SO2 emissions exceeds the common 

designated representative’s assurance level divided by the sum 

of the amounts, determined for all common designated 

representatives for such sources and units in the State (and 

Indian country within the borders of such State) for such 

control period, by which each common designated representative’s 
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share of such SO2 emissions exceeds the respective common 

designated representative’s assurance level; and

(B) The amount by which total SO2 emissions from all TR SO2 Group 

2 units at TR SO2 Group 2 sources in the State (and Indian 

country within the borders of such State) for such control 

period exceed the State assurance level. 

(ii) The owners and operators shall hold the TR SO2 Group 2 

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

as of midnight of November 1 (if it is a business day), or 

midnight of the first business day thereafter (if November 1 is 

not a business day), immediately after such control period. 

(iii) Total SO2 emissions from all TR SO2 Group 2 units at TR SO2

Group 2 sources in a State (and Indian country within the 

borders of such State) during a control period in a given year 

exceed the State assurance level if such total SO2 emissions 

exceed the sum, for such control period, of the State SO2 Group 2 

trading budget under §97.710(a) and the State’s variability 

limit under §97.710(b).

(iv) It shall not be a violation of this subpart or of the Clean 

Air Act if total SO2 emissions from all TR SO2 Group 2 units at 

TR SO2 Group 2 sources in a State (and Indian country within the 

borders of such State) during a control period exceed the State 
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assurance level or if a common designated representative’s share 

of total SO2 emissions from the TR SO2 Group 2 units at TR SO2

Group 2 sources in a State (and Indian country within the 

borders of such State) during a control period exceeds the 

common designated representative’s assurance level. 

(v) To the extent the owners and operators fail to hold TR SO2

Group 2 allowances for a control period in a given year in 

accordance with paragraphs (c)(2)(i) through (iii) of this 

section, 

(A) The owners and operators shall pay any fine, penalty, or 

assessment or comply with any other remedy imposed under the 

Clean Air Act; and

(B) Each TR SO2 Group 2 allowance that the owners and operators 

fail to hold for such control period in accordance with 

paragraphs (c)(2)(i) through (iii) of this section and each day 

of such control period shall constitute a separate violation of 

this subpart and the Clean Air Act.

(3) Compliance periods. A TR SO2 Group 2 unit shall be subject 

to the requirements under paragraphs (c)(1) and (c)(2) of this 

section for the control period starting on the later of January 

1, 2012 or the deadline for meeting the unit's monitor 
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certification requirements under §97.730(b) and for each control 

period thereafter.

(4) Vintage of allowances held for compliance. (i) A TR SO2

Group 2 allowance held for compliance with the requirements 

under paragraph (c)(1)(i) of this section for a control period 

in a given year must be a TR SO2 Group 2 allowance that was 

allocated for such control period or a control period in a prior 

year.

(ii) A TR SO2 Group 2 allowance held for compliance with the 

requirements under paragraphs (c)(1)(ii)(A) and (2)(i) through 

(iii) of this section for a control period in a given year must 

be a TR SO2 Group 2 allowance that was allocated for a control 

period in a prior year or the control period in the given year 

or in the immediately following year.

(5) Allowance Management System requirements. Each TR SO2 Group 2 

allowance shall be held in, deducted from, or transferred into, 

out of, or between Allowance Management System accounts in 

accordance with this subpart.

(6) Limited authorization. A TR SO2 Group 2 allowance is a 

limited authorization to emit one ton of SO2 during the control 

period in one year. Such authorization is limited in its use 

and duration as follows:
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(i) Such authorization shall only be used in accordance with the 

TR SO2 Group 2 Trading Program; and 

(ii) Notwithstanding any other provision of this subpart, the 

Administrator has the authority to terminate or limit the use 

and duration of such authorization to the extent the 

Administrator determines is necessary or appropriate to 

implement any provision of the Clean Air Act. 

(7) Property right. A TR SO2 Group 2 allowance does not 

constitute a property right.

(d) Title V permit requirements. (1) No title V permit revision 

shall be required for any allocation, holding, deduction, or 

transfer of TR SO2 Group 2 allowances in accordance with this 

subpart.

(2) A description of whether a unit is required to monitor and 

report SO2 emissions using a continuous emission monitoring 

system (under subpart H of part 75 of this chapter), an excepted 

monitoring system (under appendices D and E to part 75 of this 

chapter), a low mass emissions excepted monitoring methodology 

(under §75.19 of this chapter), or an alternative monitoring 

system (under subpart E of part 75 of this chapter) in 

accordance with §§97.730 through 97.735 may be added to, or 

changed in, a title V permit using minor permit modification 
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procedures in accordance with §§70.7(e)(2) and 71.7(e)(1) of 

this chapter, provided that the requirements applicable to the 

described monitoring and reporting (as added or changed, 

respectively) are already incorporated in such permit. This 

paragraph explicitly provides that the addition of, or change 

to, a unit’s description as described in the prior sentence is 

eligible for minor permit modification procedures in accordance 

with §§70.7(e)(2)(i)(B) and 71.7(e)(1)(i)(B) of this chapter. 

(e) Additional recordkeeping and reporting requirements. (1) 

Unless otherwise provided, the owners and operators of each TR 

SO2 Group 2 source and each TR SO2 Group 2 unit at the source 

shall keep on site at the source each of the following documents 

(in hardcopy or electronic format) 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 Administrator.

(i) The certificate of representation under §97.716 for the 

designated representative for the source and each TR SO2 Group 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 certificate of 

representation and documents are superseded because of the 
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submission of a new certificate of representation under §97.716 

changing the designated representative.

(ii) All emissions monitoring information, in accordance with 

this subpart.

(iii) Copies of all reports, compliance certifications, and 

other submissions and all records made or required under, or to 

demonstrate compliance with the requirements of, the TR SO2 Group 

2 Trading Program.

(2) The designated representative of a TR SO2 Group 2 source and 

each TR SO2 Group 2 unit at the source shall make all submissions 

required under the TR SO2 Group 2 Trading Program, except as 

provided in §97.718. This requirement does not change, create 

an exemption from, or or otherwise affect the responsible 

official submission requirements under a title V operating 

permit program in parts 70 and 71 of this chapter. 

(f) Liability. (1) Any provision of the TR SO2 Group 2 Trading 

Program that applies to a TR SO2 Group 2 source or the designated 

representative of a TR SO2 Group 2 source shall also apply to the 

owners and operators of such source and of the TR SO2 Group 2 

units at the source.
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(2) Any provision of the TR SO2 Group 2 Trading Program that 

applies to a TR SO2 Group 2 unit or the designated representative 

of a TR SO2 Group 2 unit shall also apply to the owners and 

operators of such unit.

(g) Effect on other authorities. No provision of the TR SO2

Group 2 Trading Program or exemption under §97.705 shall be 

construed as exempting or excluding the owners and operators, 

and the designated representative, of a TR SO2 Group 2 source or 

TR SO2 Group 2 unit from compliance with any other provision of 

the applicable, approved State implementation plan, a federally 

enforceable permit, or the Clean Air Act.

§ 97.707 Computation of time.

(a) Unless otherwise stated, any time period scheduled, under

the TR SO2 Group 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 TR SO2 Group 2 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 TR SO2 Group 2 Trading Program, is not a 
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business day, the time period shall be extended to the next 

business day.

§ 97.708 Administrative appeal procedures.

The administrative appeal procedures for decisions of the 

Administrator under the TR SO2 Group 2 Trading Program are set 

forth in part 78 of this chapter.

§ 97.709 [Reserved]

§ 97.710 State SO2 Group 2 trading budgets, new unit set-asides, 

Indian country new unit set-aside, and variability limits.

(a) The State SO2 Group 2 trading budgets, new unit set-asides, 

and Indian country new unit set-asides for allocations of TR SO2

Group 2 allowances for the control periods in 2012 and 

thereafter are as follows:

State

SO2 Group 2 trading 

budget (tons)*

for 2012 and 2013

New unit setaside (tons)

for 2012 and 

2013

Indian country 

new unit setaside (tons)

for 2012 and 2013

Alabama 216,033 4,321 ---

Georgia 158,527 3,171 ---

Kansas 41,528 789 42

Minnesota 41,981 798 42

Nebraska 65,052 2,537 65

South 

Carolina 88,620 1,683 89
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Texas 243,954 11,954 244

State

SO2 Group 2 

trading budget 

(tons)*

for 2014 and 

thereafter

New unit setaside (tons)

for 2014 and 

thereafter

Indian country 

new unit setaside (tons)

for 2014 and 

thereafter

Alabama 213,258 4,265 ---

Georgia 95,231 1,905 ---

Kansas 41,528 789 42

Minnesota 41,981 798 42

Nebraska 65,052 2,537 65

South 

Carolina 88,620 1,683 89

Texas 243,954 11,954 244

* Each trading budget includes the new unit set-aside and, where 

applicable, the Indian country new unit set-aside and does not 

include the variability limit.

(b) The States’ variability limits for the State SO2 Group 2 

trading budgets for the control periods in 2012 and thereafter 

are as follows:

State

Variability limits

for 2012 and 2013

Variability limits

for 2014 and thereafter

Alabama 38,886 38,386

Georgia 28,535 17,142

Kansas 7,475 7,475

Minnesota 7,557 7,557

Nebraska 11,709 11,709

South 15,952 15,952
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Carolina

Texas 43,912 43,912

§ 97.711 Timing requirements for TR SO2 Group 2 allowance 

allocations.

(a) Existing units. (1) TR SO2 Group 2 allowances are allocated, 

for the control periods in 2012 and each year thereafter, as 

provided in a notice of data availability issued by the 

Administrator. Providing an allocation to a unit in such notice 

does not constitute a determination that the unit is a TR SO2

Group 2 unit, and not providing an allocation to a unit in such 

notice does not constitute a determination that the unit is not 

a TR SO2 Group 2 unit. 

(2) Notwithstanding paragraph (a)(1) of this section, if a unit 

provided an allocation in the notice of data availability issued 

under paragraph (a)(1) of this section does not operate, 

starting after 2011, during the control period in two 

consecutive years, such unit will not be allocated the TR SO2

Group 2 allowances provided in such notice for the unit for the 

control periods in the fifth year after the first such year and 

in each year after that fifth year. All TR SO2 Group 2 

allowances that would otherwise have been allocated to such unit 

will be allocated to the new unit set-aside for the State where 
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such unit is located and for the respective years involved. If 

such unit resumes operation, the Administrator will allocate TR 

SO2 Group 2 allowances to the unit in accordance with paragraph 

(b) of this section. 

(b) New units. (1) New unit set-asides. (i) By June 1, 2012 

and June 1 of each year thereafter, the Administrator will 

calculate the TR SO2 Group 2 allowance allocation to each TR SO2

Group 2 unit in a State, in accordance with §97.712(a)(2) 

through (7) and (12), for the control period in the year of the 

applicable calculation deadline under this paragraph and will 

promulgate a notice of data availability of the results of the 

calculations.

(ii) For each notice of data availability required in paragraph 

(b)(1)(i) of this section, the Administrator will provide an 

opportunity for submission of objections to the calculations 

referenced in such notice. 

(A) Objections shall be submitted by the deadline specified in 

each notice of data availability required in paragraph (b)(1)(i)

of this section and shall be limited to addressing whether the 

calculations (including the identification of the TR SO2 Group 2 

units) are in accordance with §97.712(a)(2) through (7) and (12) 

and §§97.706(b)(2) and 97.730 through 97.735. 
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(B) The Administrator will adjust the calculations to the extent 

necessary to ensure that they are in accordance with the 

provisions referenced in paragraph (b)(1)(ii)(A) of this 

section. By August 1 immediately after the promulgation of each 

notice of data availability required in paragraph (b)(1)(i) of 

this section, the Administrator will promulgate a notice of data 

availability of any adjustments that the Administrator 

determines to be necessary with regard to allocations under 

§97.712(a)(2) through (7) and (12) and the reasons for accepting 

or rejecting any objections submitted in accordance with 

paragraph (b)(1)(ii)(A) of this section. 

(iii) If the new unit set-aside for such control period contains 

any TR SO2 Group 2 allowances that have not been allocated in the 

applicable notice of data availability required in paragraph 

(b)(1)(ii) of this section, the Administrator will promulgate, 

by December 15 immediately after such notice, a notice of data 

availability that identifies any TR SO2 Group 2 units that 

commenced commercial operation during the period starting 

January 1 of the year before the year of such control period and 

ending November 30 of year of such control period.

(iv) For each notice of data availability required in paragraph 

(b)(1)(iii) of this section, the Administrator will provide an 
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opportunity for submission of objections to the identification 

of TR SO2 annual units in such notice. 

(A) Objections shall be submitted by the deadline specified in 

each notice of data availability required in paragraph 

(b)(1)(iii) of this section and shall be limited to addressing 

whether the identification of TR SO2 annual units in such notice 

is in accordance with paragraph (b)(1)(iii) of this section. 

(B) The Administrator will adjust the identification of TR SO2

Group 2 units in the each notice of data availability required 

in paragraph (b)(1)(iii) of this section to the extent necessary 

to ensure that it is in accordance with paragraph (b)(1)(iii) of 

this section and will calculate the TR SO2 Group 2 allowance 

allocation to each TR SO2 Group 2 unit in accordance with 

§97.712(a)(9), (10), and (12) and §§97.706(b)(2) and 97.730 

through 97.735. By February 15 immediately after the 

promulgation of each notice of data availability required in 

paragraph (b)(1)(iii) of this section, the Administrator will 

promulgate a notice of data availability of any adjustments of 

the identification of TR SO2 Group 2 units that the Administrator 

determines to be necessary, the reasons for accepting or 

rejecting any objections submitted in accordance with paragraph 

(b)(1)(iv)(A) of this section, and the results of such 

calculations.
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(v) To the extent any TR SO2 Group 2 allowances are added to the 

new unit set-aside after promulgation of each notice of data 

availability required in paragraph (b)(1)(iv) of this section, 

the Administrator will promulgate additional notices of data 

availability, as deemed appropriate, of the allocation of such 

TR SO2 Group 2 allowances in accordance with §97.712(a)(10). 

(2) Indian country new unit set-asides. (i) By June 1, 2012 and 

June 1 of each year thereafter, the Administrator will calculate 

the TR SO2 Group 2 allowance allocation to each TR SO2 Group 2 

unit in Indian country within the borders of a State, in 

accordance with §97.712(b)(2) through (7) and (12), for the 

control period in the year of the applicable calculation 

deadline under this paragraph and will promulgate a notice of 

data availability of the results of the calculations.

(ii) For each notice of data availability required in paragraph 

(b)(2)(i) of this section, the Administrator will provide an 

opportunity for submission of objections to the calculations 

referenced in such notice. 

(A) Objections shall be submitted by the deadline specified in 

each notice of data availability required in paragraph (b)(2)(i) 

of this section and shall be limited to addressing whether the 

calculations (including the identification of the TR SO2 Group 2 
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units) are in accordance with §97.712(b)(2) through (7) and (12)

and §§97.706(b)(2) and 97.730 through 97.735. 

(B) The Administrator will adjust the calculations to the extent 

necessary to ensure that they are in accordance with the 

provisions referenced in paragraph (b)(2)(ii)(A) of this 

section. By August 1 immediately after the promulgation of each 

notice of data availability required in paragraph (b)(2)(i) of 

this section, the Administrator will promulgate a notice of data 

availability of any adjustments that the Administrator 

determines to be necessary with regard to allocations under 

§97.712(b)(2) through (7) and (12) and the reasons for accepting 

or rejecting any objections submitted in accordance with 

paragraph (b)(2)(ii)(A) of this section. 

(iii) If the Indian country new unit set-aside for such control 

period contains any TR SO2 Group 2 allowances that have not been 

allocated in the applicable notice of data availability required 

in paragraph (b)(2)(ii) of this section, the Administrator will 

promulgate, by December 15 immediately after such notice, a 

notice of data availability that identifies any TR SO2 Group 2 

units that commenced commercial operation during the period 

starting January 1 of the year before the year of such control 

period and ending November 30 of year of such control period.
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(iv) For each notice of data availability required in paragraph 

(b)(2)(iii) of this section, the Administrator will provide an 

opportunity for submission of objections to the identification 

of TR SO2 annual units in such notice. 

(A) Objections shall be submitted by the deadline specified in 

each notice of data availability required in paragraph 

(b)(2)(iii) of this section and shall be limited to addressing 

whether the identification of TR SO2 annual units in such notice 

is in accordance with paragraph (b)(2)(iii) of this section. 

(B) The Administrator will adjust the identification of TR SO2

Group 2 units in the each notice of data availability required 

in paragraph (b)(2)(iii) of this section to the extent necessary 

to ensure that it is in accordance with paragraph (b)(2)(iii) of 

this section and will calculate the TR SO2 Group 2 allowance 

allocation to each TR SO2 Group 2 unit in accordance with 

§97.712(b)(9), (10), and (12) and §§97.706(b)(2) and 97.730 

through 97.735. By February 15 immediately after the 

promulgation of each notice of data availability required in 

paragraph (b)(2)(iii) of this section, the Administrator will 

promulgate a notice of data availability of any adjustments of 

the identification of TR SO2 Group 2 units that the Administrator 

determines to be necessary, the reasons for accepting or 

rejecting any objections submitted in accordance with paragraph 
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(b)(2)(iv)(A) of this section, and the results of such 

calculations. 

(v) To the extent any TR SO2 Group 2 allowances are added to the

Indian country new unit set-aside after promulgation of each 

notice of data availability required in paragraph (b)(2)(iv) of 

this section, the Administrator will promulgate additional 

notices of data availability, as deemed appropriate, of the 

allocation of such TR SO2 Group 2 allowances in accordance with 

§97.712(b)(10). 

(c) Units incorrectly allocated TR SO2 Group 2 allowances. (1) 

For each control period in 2012 and thereafter, if the 

Administrator determines that TR SO2 Group 2 allowances were 

allocated under paragraph (a) of this section, or under a 

provision of a SIP revision approved §52.39(g), (h), or (i) of 

this chapter, where such control period and the recipient are 

covered by the provisions of paragraph (c)(1)(i) of this section 

or were allocated under §97.712(a)(2) through (7), (9), and (12) 

and (b)(2) through (7), (9), and (12), or under a provision of a 

SIP revision approved §52.39(h) or (i) of this chapter, where 

such control period and the recipient are covered by the 

provisions of paragraph (c)(1)(ii) of this section, then the 

Administrator will notify the designated representative of the 
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recipient and will act in accordance with the procedures set 

forth in paragraphs (c)(2) through (5) of this section:

(i)(A) The recipient is not actually a TR SO2 Group 2 unit under 

§97.704 as of January 1, 2012 and is allocated TR SO2 Group 2 

allowances for such control period or, in the case of an 

allocation under a provision of a SIP revision approved under 

§52.39(g), (h), or (i) of this chapter, the recipient is not 

actually a TR SO2 Group 2 unit as of January 1, 2012 and is 

allocated TR SO2 Group 2 allowances for such control period that 

the SIP revision provides should be allocated only to recipients 

that are TR SO2 Group 2 units as of January 1, 2012; or

(B) The recipient is not located as of January 1 of the control 

period in the State from whose SO2 Group 2 trading budget the TR 

SO2 Group 2 allowances allocated under paragraph (a) of this 

section, or under a provision of a SIP revision approved under 

§52.39(g), (h), or (i) of this chapter, were allocated for such 

control period. 

(ii) The recipient is not actually a TR SO2 Group 2 unit under 

§97.704 as of January 1 of such control period and is allocated 

TR SO2 Group 2 allowances for such control period or, in the case 

of an allocation under a provision of a SIP revision approved

under §52.39(g), (h), or (i) of this chapter, the recipient is 
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not actually a TR SO2 Group 2 unit as of January 1 of such 

control period and is allocated TR SO2 Group 2 allowances for 

such control period that the SIP revision provides should be 

allocated only to recipients that are TR SO2 Group 2 units as of 

January 1 of such control period. 

(2) Except as provided in paragraph (c)(3) or (4) of this 

section, the Administrator will not record such TR SO2 Group 2 

allowances under §97.721.

(3) If the Administrator already recorded such TR SO2 Group 2 

allowances under §97.721 and if the Administrator makes the 

determination under paragraph (c)(1) of this section before 

making deductions for the source that includes such recipient 

under §97.724(b) for such control period, then the Administrator 

will deduct from the account in which such TR SO2 Group 2 

allowances were recorded an amount of TR SO2 Group 2 allowances 

allocated for the same or a prior control period equal to the 

amount of such already recorded TR SO2 Group 2 allowances. The 

authorized account representative shall ensure that there are 

sufficient TR SO2 Group 2 allowances in such account for 

completion of the deduction.

(4) If the Administrator already recorded such TR SO2 Group 2 

allowances under §97.721 and if the Administrator makes the 
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determination under paragraph (c)(1) of this section after 

making deductions for the source that includes such recipient 

under §97.724(b) for such control period, then the Administrator 

will not make any deduction to take account of such already 

recorded TR SO2 Group 2 allowances. 

(5)(i) With regard to the TR SO2 Group 2 allowances that are not 

recorded, or that are deducted as an incorrect allocation, in 

accordance with paragraphs (c)(2) and (3) of this section for a 

recipient under paragraph (c)(1)(i) of this section, the 

Administrator will:

(A) Transfer such TR SO2 Group 2 allowances to the new unit setaside for such control period for the State from whose SO2 Group 

2 trading budget the TR SO2 Group 2 allowances were allocated; or

(B) If the State has a SIP revision approved under §52.39(h) or 

(i) covering such control period, include such TR SO2 Group 2 

allowances in the portion of the State SO2 Group 2 trading budget 

that may be allocated for such control period in accordance with 

such SIP revision. 

(ii) With regard to the TR SO2 Group 2 allowances that were not 

allocated from the Indian country new unit set-aside for such 

control period and that are not recorded, or that are deducted

as an incorrect allocation, in accordance with paragraphs (c)(2) 
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and (3) of this section for a recipient under paragraph 

(c)(1)(ii) of this paragraph, the Administrator will:

(A) Transfer such TR SO2 Group 2 allowances to the new unit setaside for such control period; or

(B) If the State has a SIP revision approved under §52.39(h) or 

(i) covering such control period, include such TR SO2 Group 2 

allowances in the portion of the State SO2 Group 2 trading budget 

that may be allocated for such control period in accordance with 

such SIP revision. 

(iii) With regard to the TR SO2 Group 2 allowances that were 

allocated from the Indian country new unit set-aside for such 

control period and that are not recorded, or that are deducted

as an incorrect allocation, in accordance with paragraphs (c)(2) 

and (3) of this section for a recipient under paragraph 

(c)(1)(ii) of this paragraph, the Administrator will transfer 

such TR SO2 Group 2 allowances to the Indian country new unit 

set-aside for such control period.

§ 97.712 TR SO2 Group 2 allowance allocations to new units.

(a) For each control period in 2012 and thereafter and for the 

TR SO2 Group 2 units in each State, the Administrator will 
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allocate TR SO2 Group 2 allowances to the TR SO2 Group 2 units as 

follows:

(1) The TR SO2 Group 2 allowances will be allocated to the 

following TR SO2 Group 2 units, except as provided in paragraph 

(a)(10) of this section:

(i) TR SO2 Group 2 units that are not allocated an amount of TR 

SO2 Group 2 allowances in the notice of data availability issued 

under §97.711(a)(1); 

(ii) TR SO2 Group 2 units whose allocation of an amount of TR SO2

Group 2 allowances for such control period in the notice of data 

availability issued under §97.711(a)(1) is covered by 

§97.711(c)(2) or (3);

(iii) TR SO2 Group 2 units that are allocated an amount of TR SO2

Group 2 allowances for such control period in the notice of data 

availability issued under §97.711(a)(1), which allocation is 

terminated for such control period pursuant to §97.711(a)(2), 

and that operate during the control period immediately preceding 

such control period; or

(iv) For purposes of paragraph (a)(9) of this section, TR SO2

Group 2 units under §97.711(c)(1)(ii) whose allocation of an 

amount of TR SO2 Group 2 allowances for such control period in 
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the notice of data availability issued under 

§97.711(b)(1)(ii)(B) is covered by §97.711(c)(2) or (3). 

(2) The Administrator will establish a separate new unit setaside for the State for each such control period. Each such new 

unit set-aside will be allocated TR SO2 Group 2 allowances in an 

amount equal to the applicable amount of tons of SO2 emissions as 

set forth in §97.710(a) and will be allocated additional TR SO2

Group 2 allowances (if any) in accordance with §§97.711(a)(2) 

and (c)(5) and paragraph (b)(10) of this section.

(3) The Administrator will determine, for each TR SO2 Group 2 

unit described in paragraph (a)(1) of this section, an 

allocation of TR SO2 Group 2 allowances for the later of the 

following control periods and for each subsequent control 

period:

(i) The control period in 2012;

(ii) The first control period after the control period in which 

the TR SO2 Group 2 unit commences commercial operation; 

(iii) For a unit described in paragraph (a)(1)(ii) of this 

section, the first control period in which the TR SO2 Group 2 

unit operates in the State after operating in another 
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jurisdiction and for which the unit is not already allocated one 

or more TR SO2 Group 2 allowances; and

(iv) For a unit described in paragraph (a)(1)(iii) of this 

section, the first control period after the control period in 

which the unit resumes operation. 

(4)(i) The allocation to each TR SO2 annual unit described in 

paragraph (a)(1)(i) through (iii) of this section and for each 

control period described in paragraph (a)(3) of this section 

will be an amount equal to the unit’s total tons of SO2 emissions 

during the immediately preceding control period.

(ii) The Administrator will adjust the allocation amount in 

paragraph (a)(4)(i) in accordance with paragraphs (a)(5) through 

(7) and (12) of this section.

(5) The Administrator will calculate the sum of the TR SO2 Group 

2 allowances determined for all such TR SO2 Group 2 units under 

paragraph (a)(4)(i) of this section in the State for such 

control period.

(6) If the amount of TR SO2 Group 2 allowances in the new unit 

set-aside for the State for such control period is greater than 

or equal to the sum under paragraph (a)(5) of this section, then 

the Administrator will allocate the amount of TR SO2 Group 2 
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allowances determined for each such TR SO2 Group 2 unit under 

paragraph (a)(4)(i) of this section.

(7) If the amount of TR SO2 Group 2 allowances in the new unit 

set-aside for the State for such control period is less than the 

sum under paragraph (a)(5) of this section, then the 

Administrator will allocate to each such TR SO2 Group 2 unit the 

amount of the TR SO2 Group 2 allowances determined under 

paragraph (a)(4)(i) of this section for the unit, multiplied by 

the amount of TR SO2 Group 2 allowances in the new unit set-aside 

for such control period, divided by the sum under paragraph 

(a)(5) of this section, and rounded to the nearest allowance.

(8) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 

§97.711(b)(1)(i) and (ii), of the amount of TR SO2 Group 2 

allowances allocated under paragraphs (a)(2) through (7) and 

(12) of this section for such control period to each TR SO2 Group 

2 unit eligible for such allocation.

(9) If, after completion of the procedures under paragraphs 

(a)(5) through (8) of this section for such control period, any 

unallocated TR SO2 Group 2 allowances remain in the new unit setaside for the State for such control period, the Administrator 

will allocate such TR SO2 Group 2 allowances as follows--
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(i) The Administrator will determine, for each unit described in 

paragraph (a)(1) of this section that commenced commercial 

operation during the period starting January 1 of the year 

before the year of such control period and ending November 30 of 

year of such control period, the positive difference (if any) 

between the unit’s emissions during such control period and the 

amount of TR SO2 Group 2 allowances referenced in the notice of 

data availability required under §97.711(b)(1)(ii) for the unit 

for such control period;

(ii) The Administrator will determine the sum of the positive 

differences determined under paragraph (a)(9)(i) of this 

section;

(iii) If the amount of unallocated TR SO2 Group 2 allowances 

remaining in the new unit set-aside for the State for such 

control period is greater than or equal to the sum determined 

under paragraph (a)(9)(ii) of this section, then the 

Administrator will allocate the amount of TR SO2 Group 2 

allowances determined for each such TR SO2 Group 2 unit under 

paragraph (a)(9)(i) of this section; and

(iv) If the amount of unallocated TR SO2 Group 2 allowances 

remaining in the new unit set-aside for the State for such 

control period is less than the sum under paragraph (a)(9)(ii) 
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of this section, then the Administrator will allocate to each 

such TR SO2 Group 2 unit the amount of the TR SO2 Group 2 

allowances determined under paragraph (a)(9)(i) of this section 

for the unit, multiplied by the amount of unallocated TR SO2

Group 2 allowances remaining in the new unit set-aside for such 

control period, divided by the sum under paragraph (a)(9)(ii) of 

this section, and rounded to the nearest allowance.

(10) If, after completion of the procedures under paragraphs

(a)(9) and (12) of this section for such control period, any 

unallocated TR SO2 Group 2 allowances remain in the new unit setaside for the State for such control period, the Administrator 

will allocate to each TR SO2 Group 2 unit that is in the State, 

is allocated an amount of TR SO2 Group 2 allowances in the notice 

of data availability issued under §97.711(a)(1), and continues 

to be allocated TR SO2 Group 2 allowances for such control period 

in accordance with §97.711(a)(2), an amount of TR SO2 Group 2 

allowances equal to the following: the total amount of such 

remaining unallocated TR SO2 Group 2 allowances in such new unit 

set-aside, multiplied by the unit's allocation under §97.711(a) 

for such control period, divided by the remainder of the amount 

of tons in the applicable State SO2 Group 2 trading budget minus 

the sum of the amounts of tons in such new unit set-aside and 
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the Indian country new unit set-aside for the State for such 

control period, and rounded to the nearest allowance.

(11) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 

§97.711(b)(1)(iii), (iv), and (v), of the amount of TR SO2 Group 

2 allowances allocated under paragraphs (a)(9), (10), and (12) 

of this section for such control period to each TR SO2 Group 2 

unit eligible for such allocation.

(12)(i) Notwithstanding the requirements of paragraphs (a)(2) 

through (11) of this section, if the calculations of allocations 

of a new unit set-aside for a control period in a given year 

under paragraph (a)(7) of this section, paragraphs (a)(6) and 

(9)(iv) of this section, or paragraphs (a)(6), (9)(iii), and 

(10) of this section would otherwise result in total allocations 

of such new unit set-aside exceeding the total amount of such 

new unit set-aside, then the Administrator will adjust the 

results of the calculations under paragraph (a)(7), (9)(iv), or 

(10) of this section, as applicable, as follows. The 

Administrator will list the TR SO2 Group 2 units in descending 

order based on the amount of such units’ allocations under 

paragraph (a)(7), (9)(iv), or (10) of this section, as 

applicable, and, in cases of equal allocation amounts, in 

alphabetical order of the relevant source’s name and numerical 
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order of the relevant unit’s identification number, and will 

reduce each unit’s allocation under paragraph (a)(7), (9)(iv), 

or (10) of this section, as applicable, by one TR SO2 Group 2

allowance (but not below zero) in the order in which the units 

are listed and will repeat this reduction process as necessary, 

until the total allocations of such new unit set-aside equal the 

total amount of such new unit set-aside. 

(ii) Notwithstanding the requirements of paragraphs (a)(10) and 

(11) of this section, if the calculations of allocations of a 

new unit set-aside for a control period in a given year under 

paragraphs (a)(6), (9)(iii), and (10) of this section would 

otherwise result in a total allocations of such new unit setaside less than the total amount of such new unit set-aside, 

then the Administrator will adjust the results of the 

calculations under paragraph (a)(10) of this section, as 

follows. The Administrator will list the TR SO2 Group 2 units in 

descending order based on the amount of such units’ allocations 

under paragraph (a)(10) of this section and, in cases of equal 

allocation amounts, in alphabetical order of the relevant 

source’s name and numerical order of the relevant unit’s 

identification number, and will increase each unit’s allocation 

under paragraph (a)(10) of this section by one TR SO2 Group 2

allowance in the order in which the units are listed and will 
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Page 697 of 773

repeat this increase process as necessary, until the total 

allocations of such new unit set-aside equal the total amount of 

such new unit set-aside. 

(b) For each control period in 2012 and thereafter and for the 

TR SO2 Group 2 units located in Indian country within the borders 

of each State, the Administrator will allocate TR SO2 Group 2 

allowances to the TR SO2 Group 2 units as follows: 

(1) The TR SO2 Group 2 allowances will be allocated to the 

following TR SO2 Group 2 units, except as provided in paragraph 

(b)(10) of this section:

(i) TR SO2 Group 2 units that are not allocated an amount of TR 

SO2 Group 2 allowances in the notice of data availability issued 

under §97.711(a)(1); or

(ii) For purposes of paragraph (b)(9) of this section, TR SO2

Group 2 units under §97.711(c)(1)(ii) whose allocation of an 

amount of TR SO2 Group 2 allowances for such control period in 

the notice of data availability issued under 

§97.711(b)(2)(ii)(B) is covered by §97.711(c)(2) or (3). 

(2) The Administrator will establish a separate Indian country 

new unit set-aside for the State for each such control period. 

Each such Indian country new unit set-aside will be allocated TR 
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SO2 Group 2 allowances in an amount equal to the applicable 

amount of tons of SO2 emissions as set forth in §97.710(a) and 

will be allocated additional TR SO2 Group 2 allowances (if any) 

in accordance with §97.711(c)(5).

(3) The Administrator will determine, for each TR SO2 Group 2 

unit described in paragraph (b)(1) of this section, an 

allocation of TR SO2 Group 2 allowances for the later of the 

following control periods and for each subsequent control 

period:

(i) The control period in 2012; and

(ii) The first control period after the control period in which 

the TR SO2 Group 2 unit commences commercial operation.

(4)(i) The allocation to each TR SO2 annual unit described in 

paragraph (b)(1)(i) of this section and for each control period 

described in paragraph (b)(3) of this section will be an amount 

equal to the unit’s total tons of SO2 emissions during the 

immediately preceding control period.

(ii) The Administrator will adjust the allocation amount in 

paragraph (b)(4)(i) in accordance with paragraphs (b)(5) through 

(7) and (12) of this section. 
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(5) The Administrator will calculate the sum of the TR SO2 Group 

2 allowances determined for all such TR SO2 Group 2 units under 

paragraph (b)(4)(i) of this section in Indian country within the 

borders of the State for such control period.

(6) If the amount of TR SO2 Group 2 allowances in the Indian 

country new unit set-aside for the State for such control period 

is greater than or equal to the sum under paragraph (b)(5) of 

this section, then the Administrator will allocate the amount of 

TR SO2 Group 2 allowances determined for each such TR SO2 Group 2 

unit under paragraph (b)(4)(i) of this section.

(7) If the amount of TR SO2 Group 2 allowances in the Indian 

country new unit set-aside for the State for such control period 

is less than the sum under paragraph (b)(5) of this section, 

then the Administrator will allocate to each such TR SO2 Group 2 

unit the amount of the TR SO2 Group 2 allowances determined under 

paragraph (b)(4)(i) of this section for the unit, multiplied by 

the amount of TR SO2 Group 2 allowances in the Indian country new 

unit set-aside for such control period, divided by the sum under 

paragraph (b)(5) of this section, and rounded to the nearest 

allowance.

(8) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 
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§97.711(b)(2)(i) and (ii), of the amount of TR SO2 Group 2 

allowances allocated under paragraphs (b)(2) through (7) and 

(12) of this section for such control period to each TR SO2 Group 

2 unit eligible for such allocation.

(9) If, after completion of the procedures under paragraphs 

(b)(5) through (8) of this section for such control period, any 

unallocated TR SO2 Group 2 allowances remain in the Indian 

country new unit set-aside for the State for such control 

period, the Administrator will allocate such TR SO2 Group 2 

allowances as follows--

(i) The Administrator will determine, for each unit described in 

paragraph (b)(1) of this section that commenced commercial 

operation during the period starting January 1 of the year 

before the year of such control period and ending November 30 of 

year of such control period, the positive difference (if any) 

between the unit’s emissions during such control period and the 

amount of TR SO2 Group 2 allowances referenced in the notice of 

data availability required under §97.711(b)(2)(ii) for the unit 

for such control period;

(ii) The Administrator will determine the sum of the positive 

differences determined under paragraph (b)(9)(i) of this 

section;
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(iii) If the amount of unallocated TR SO2 Group 2 allowances 

remaining in the Indian country new unit set-aside for the State 

for such control period is greater than or equal to the sum 

determined under paragraph (b)(9)(ii) of this section, then the 

Administrator will allocate the amount of TR SO2 Group 2 

allowances determined for each such TR SO2 Group 2 unit under 

paragraph (b)(9)(i) of this section; and

(iv) If the amount of unallocated TR SO2 Group 2 allowances 

remaining in the Indian country new unit set-aside for the State 

for such control period is less than the sum under paragraph 

(b)(9)(ii) of this section, then the Administrator will allocate 

to each such TR SO2 Group 2 unit the amount of the TR SO2 Group 2 

allowances determined under paragraph (b)(9)(i) of this section 

for the unit, multiplied by the amount of unallocated TR SO2

Group 2 allowances remaining in the Indian country new unit setaside for such control period, divided by the sum under 

paragraph (b)(9)(ii) of this section, and rounded to the nearest 

allowance.

(10) If, after completion of the procedures under paragraphs

(b)(9) and (12) of this section for such control period, any 

unallocated TR SO2 Group 2 allowances remain in the Indian 

country new unit set-aside for the State for such control 

period, the Administrator will:
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(i) Transfer such unallocated TR SO2 Group 2 allowances to the 

new unit set-aside for the State for such control period; or 

(ii) If the State has a SIP revision approved under §52.39(g), 

(h), or (i) of this chapter covering such control period, 

include such unallocated TR SO2 Group 2 allowances in the portion 

of the State SO2 Group 2 trading budget that may be allocated for 

such control period in accordance with such SIP revision. 

(11) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 

§97.711(b)(2)(iii), (iv), and (v), of the amount of TR SO2 Group 

2 allowances allocated under paragraphs (b)(9), (10), and (12) 

of this section for such control period to each TR SO2 Group 2 

unit eligible for such allocation.

(12)(i) Notwithstanding the requirements of paragraphs (b)(2) 

through (11) of this section, if the calculations of allocations 

of an Indian country new unit set-aside for a control period in 

a given year under paragraph (b)(7) of this section, paragraphs 

(b)(6) and (9)(iv) of this section, or paragraphs (b)(6), 

(9)(iii), and (10) of this section would otherwise result in 

total allocations of such Indian country new unit set-aside 

exceeding the total amount of such Indian country new unit setaside, then the Administrator will adjust the results of the 
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calculations under paragraph (b)(7), (9)(iv), or (10) of this 

section, as applicable, as follows. The Administrator will list 

the TR SO2 Group 2 units in descending order based on the amount 

of such units’ allocations under paragraph (b)(7), (9)(iv), or 

(10) of this section, as applicable, and, in cases of equal 

allocation amounts, in alphabetical order of the relevant 

source’s name and numerical order of the relevant unit’s 

identification number, and will reduce each unit’s allocation 

under paragraph (b)(7), (9)(iv), or (10) of this section, as 

applicable, by one TR SO2 Group 2 allowance (but not below zero) 

in the order in which the units are listed and will repeat this 

reduction process as necessary, until the total allocations of 

such Indian country new unit set-aside equal the total amount of 

such Indian country new unit set-aside. 

(ii) Notwithstanding the requirements of paragraphs (b)(10) and 

(11) of this section, if the calculations of allocations of an 

Indian country new unit set-aside for a control period in a 

given year under paragraphs (b)(6), (9)(iii), and (10) of this 

section would otherwise result in a total allocations of such 

Indian country new unit set-aside less than the total amount of 

such Indian country new unit set-aside, then the Administrator 

will adjust the results of the calculations under paragraph 

(b)(10) of this section, as follows. The Administrator will 
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list the TR SO2 Group 2 units in descending order based on the 

amount of such units’ allocations under paragraph (b)(10) of 

this section and, in cases of equal allocation amounts, in 

alphabetical order of the relevant source’s name and numerical 

order of the relevant unit’s identification number, and will 

increase each unit’s allocation under paragraph (b)(10) of this 

section by one TR SO2 Group 2 allowance in the order in which the 

units are listed and will repeat this increase process as 

necessary, until the total allocations of such Indian country 

new unit set-aside equal the total amount of such Indian country 

new unit set-aside. 

§ 97.713 Authorization of designated representative and 

alternate designated representative.

(a) Except as provided under §97.715, each TR SO2 Group 2 source, 

including all TR SO2 Group 2 units at the source, shall have one 

and only one designated representative, with regard to all 

matters under the TR SO2 Group 2 Trading Program.

(1) The designated representative shall be selected by an 

agreement binding on the owners and operators of the source and 

all TR SO2 Group 2 units at the source and shall act in 

accordance with the certification statement in 

§97.716(a)(4)(iii).
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(2) Upon and after receipt by the Administrator of a complete 

certificate of representation under §97.716:

(i) The designated representative shall be authorized and shall 

represent and, by his or her representations, actions, 

inactions, or submissions, legally bind each owner and operator 

of the source and each TR SO2 Group 2 unit at the source in all 

matters pertaining to the TR SO2 Group 2 Trading Program, 

notwithstanding any agreement between the designated 

representative and such owners and operators; and

(ii) The owners and operators of the source and each TR SO2 Group 

2 unit at the source shall be bound by any decision or order 

issued to the designated representative by the Administrator 

regarding the source or any such unit.

(b) Except as provided under §97.715, each TR SO2 Group 2 source 

may have one and only one alternate designated representative, 

who may act on behalf of the designated representative. The 

agreement by which the alternate designated representative is 

selected shall include a procedure for authorizing the alternate 

designated representative to act in lieu of the designated 

representative.

(1) The alternate designated representative shall be selected by 

an agreement binding on the owners and operators of the source 
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and all TR SO2 Group 2 units at the source and shall act in 

accordance with the certification statement in 

§97.716(a)(4)(iii).

(2) Upon and after receipt by the Administrator of a complete 

certificate of representation under §97.716, 

(i) The alternate designated representative shall be authorized; 

(ii) Any representation, action, inaction, or submission by the 

alternate designated representative shall be deemed to be a 

representation, action, inaction, or submission by the 

designated representative; and

(iii) The owners and operators of the source and each TR SO2

Group 2 unit at the source shall be bound by any decision or 

order issued to the alternate designated representative by the 

Administrator regarding the source or any such unit.

(c) Except in this section, §97.702, and §§97.714 through 

97.718, whenever the term “designated representative” (as 

distinguished from the term “common designated representative”) 

is used in this subpart, the term shall be construed to include 

the designated representative or any alternate designated 

representative.
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§ 97.714 Responsibilities of designated representative and 

alternate designated representative.

(a) Except as provided under §97.718 concerning delegation of 

authority to make submissions, each submission under the TR SO2

Group 2 Trading Program shall be made, signed, and certified by 

the designated representative or alternate designated 

representative for each TR SO2 Group 2 source and TR SO2 Group 2 

unit for which the submission is made. Each such submission 

shall include the following certification statement by the 

designated representative or alternate 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.”
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(b) The Administrator will accept or act on a submission made 

for a TR SO2 Group 2 source or a TR SO2 Group 2 unit only if the 

submission has been made, signed, and certified in accordance 

with paragraph (a) of this section and §97.718.

§ 97.715 Changing designated representative and alternate 

designated representative; changes in owners and operators; 

changes in units at the source.

(a) Changing designated representative. The designated 

representative may be changed at any time upon receipt by the 

Administrator of a superseding complete certificate of 

representation under §97.716. Notwithstanding any such change, 

all representations, actions, inactions, and submissions by the 

previous designated representative before the time and date when 

the Administrator receives the superseding certificate of 

representation shall be binding on the new designated 

representative and the owners and operators of the TR SO2 Group 2 

source and the TR SO2 Group 2 units at the source.

(b) Changing alternate designated representative. The alternate 

designated representative may be changed at any time upon 

receipt by the Administrator of a superseding complete 

certificate of representation under §97.716. Notwithstanding 

any such change, all representations, actions, inactions, and 
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submissions by the previous alternate designated representative 

before the time and date when the Administrator receives the 

superseding certificate of representation shall be binding on 

the new alternate designated representative, the designated 

representative, and the owners and operators of the TR SO2 Group 

2 source and the TR SO2 Group 2 units at the source.

(c) Changes in owners and operators. (1) In the event an owner 

or operator of a TR SO2 Group 2 source or a TR SO2 Group 2 unit 

at the source is not included in the list of owners and 

operators in the certificate of representation under §97.716, 

such owner or operator shall be deemed to be subject to and 

bound by the certificate of representation, the representations, 

actions, inactions, and submissions of the designated 

representative and any alternate designated representative of 

the source or unit, and the decisions and orders of the 

Administrator, as if the owner or operator were included in such 

list.

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

of a TR SO2 Group 2 source or a TR SO2 Group 2 unit at the 

source, including the addition or removal of an owner or 

operator, the designated representative or any alternate 

designated representative shall submit a revision to the 
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certificate of representation under §97.716 amending the list of 

owners and operators to reflect the change.

(d) Changes in units at the source. Within 30 days of any 

change in which units are located at a TR SO2 Group 2 source 

(including the addition or removal of a unit), the designated 

representative or any alternate designated representative shall 

submit a certificate of representation under §97.716 amending 

the list of units to reflect the change. 

(1) If the change is the addition of a unit that operated (other 

than for purposes of testing by the manufacturer before initial 

installation) before being located at the source, then the 

certificate of representation shall identify, in a format 

prescribed by the Administrator, the entity from whom the unit 

was purchased or otherwise obtained (including name, address, 

telephone number, and facsimile number (if any)), the date on 

which the unit was purchased or otherwise obtained, and the date 

on which the unit became located at the source.

(2) If the change is the removal of a unit, then the certificate 

of representation shall identify, in a format prescribed by the 

Administrator, the entity to which the unit was sold or that 

otherwise obtained the unit (including name, address, telephone 

number, and facsimile number (if any)), the date on which the 
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unit was sold or otherwise obtained, and the date on which the 

unit became no longer located at the source. 

§ 97.716 Certificate of representation.

(a) A complete certificate of representation for a designated 

representative or an alternate designated representative shall 

include the following elements in a format prescribed by the 

Administrator:

(1) Identification of the TR SO2 Group 2 source, and each TR SO2

Group 2 unit at the source, for which the certificate of 

representation is submitted, including source name, source 

category and NAICS code (or, in the absence of a NAICS code, an 

equivalent code), State, plant code, county, latitude and 

longitude, unit identification number and type, identification 

number and nameplate capacity (in MWe, rounded to the nearest 

tenth) of each generator served by each such unit, actual or 

projected date of commencement of commercial operation, and a 

statement of whether such source is located in Indian Country. 

If a projected date of commencement of commercial operation is 

provided, the actual date of commencement of commercial 

operation shall be provided when such information becomes 

available.
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(2) The name, address, e-mail address (if any), telephone 

number, and facsimile transmission number (if any) of the 

designated representative and any alternate designated 

representative.

(3) A list of the owners and operators of the TR SO2 Group 2 

source and of each TR SO2 Group 2 unit at the source.

(4) The following certification statements by the designated 

representative and any alternate designated representative—

(i) “I certify that I was selected as the designated 

representative or alternate designated representative, as 

applicable, by an agreement binding on the owners and operators 

of the source and each TR SO2 Group 2 unit at the source.”

(ii) “I certify that I have all the necessary authority to carry 

out my duties and responsibilities under the TR SO2 Group 2 

Trading Program on behalf of the owners and operators of the 

source and of each TR SO2 Group 2 unit at the source and that 

each such owner and operator shall be fully bound by my 

representations, actions, inactions, or submissions and by any 

decision or order issued to me by the Administrator regarding 

the source or unit.”
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(iii) “Where there are multiple holders of a legal or equitable 

title to, or a leasehold interest in, a TR SO2 Group 2 unit, or 

where a utility or industrial customer purchases power from a TR 

SO2 Group 2 unit under a life-of-the-unit, firm power contractual 

arrangement, I certify that: I have given a written notice of my 

selection as the ‘designated representative’ or ‘alternate 

designated representative’, as applicable, and of the agreement 

by which I was selected to each owner and operator of the source 

and of each TR SO2 Group 2 unit at the source; and TR SO2 Group 2 

allowances and proceeds of transactions involving TR SO2 Group 2 

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 TR SO2 Group 2 allowances by contract, TR SO2

Group 2 allowances and proceeds of transactions involving TR SO2

Group 2 allowances will be deemed to be held or distributed in 

accordance with the contract.”

(5) The signature of the designated representative and any 

alternate designated representative and the dates signed.

(b) Unless otherwise required by the Administrator, documents of 

agreement referred to in the certificate of representation shall 

not be submitted to the Administrator. The Administrator shall 
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not be under any obligation to review or evaluate the 

sufficiency of such documents, if submitted.

§ 97.717 Objections concerning designated representative and 

alternate designated representative.

(a) Once a complete certificate of representation under §97.716 

has been submitted and received, the Administrator will rely on 

the certificate of representation unless and until a superseding 

complete certificate of representation under §97.716 is received 

by the Administrator.

(b) Except as provided in paragraph (a) of this section, no 

objection or other communication submitted to the Administrator 

concerning the authorization, or any representation, action, 

inaction, or submission, of a designated representative or 

alternate designated representative shall affect any 

representation, action, inaction, or submission of the 

designated representative or alternate designated representative 

or the finality of any decision or order by the Administrator 

under the TR SO2 Group 2 Trading Program.

(c) The Administrator will not adjudicate any private legal 

dispute concerning the authorization or any representation, 

action, inaction, or submission of any designated representative 

or alternate designated representative, including private legal 
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disputes concerning the proceeds of TR SO2 Group 2 allowance 

transfers.

§ 97.718 Delegation by designated representative and alternate 

designated representative.

(a) A designated representative may delegate, to one or more 

natural persons, his or her authority to make an electronic 

submission to the Administrator provided for or required under 

this subpart.

(b) An alternate designated representative may delegate, to one 

or more natural persons, his or her authority to make an 

electronic submission to the Administrator provided for or 

required under this subpart.

(c) In order to delegate authority to a natural person to make 

an electronic submission to the Administrator in accordance with 

paragraph (a) or (b) of this section, the designated 

representative or alternate designated representative, as 

appropriate, must submit to the Administrator a notice of 

delegation, in a format prescribed by the Administrator, that 

includes the following elements:
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(1) The name, address, e-mail address, telephone number, and 

facsimile transmission number (if any) of such designated 

representative or alternate designated representative;

(2) The name, address, e-mail address, telephone number, and 

facsimile transmission number (if any) of each such natural 

person (referred to in this section as an “agent”);

(3) For each such natural person, a list of the type or types of 

electronic submissions under paragraph (a) or (b) of this 

section for which authority is delegated to him or her; and

(4) The following certification statements by such designated 

representative or alternate designated representative:

(i) “I agree that any electronic submission to the Administrator 

that is made by an agent identified in this notice of delegation 

and of a type listed for such agent in this notice of delegation 

and that is made when I am a designated representative or 

alternate designated representative, as appropriate, and before 

this notice of delegation is superseded by another notice of 

delegation under 40 CFR 97.718(d) shall be deemed to be an 

electronic submission by me.”

(ii) “Until this notice of delegation is superseded by another 

notice of delegation under 40 CFR 97.718(d), I agree to maintain 
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an e-mail account and to notify the Administrator immediately of 

any change in my e-mail address unless all delegation of 

authority by me under 40 CFR 97.718 is terminated.”.

(d) A notice of delegation submitted under paragraph (c) of this 

section shall be effective, with regard to the designated 

representative or alternate designated representative identified 

in such notice, upon receipt of such notice by the Administrator 

and until receipt by the Administrator of a superseding notice 

of delegation submitted by such designated representative or 

alternate designated representative, as appropriate. The 

superseding notice of delegation may replace any previously 

identified agent, add a new agent, or eliminate entirely any 

delegation of authority.

(e) Any electronic submission covered by the certification in 

paragraph (c)(4)(i) of this section and made in accordance with 

a notice of delegation effective under paragraph (d) of this 

section shall be deemed to be an electronic submission by the 

designated representative or alternate designated representative 

submitting such notice of delegation.

§ 97.719 [Reserved]

§ 97.720 Establishment of compliance accounts, assurance 

accounts, and general accounts.
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(a) Compliance accounts. Upon receipt of a complete certificate 

of representation under §97.716, the Administrator will 

establish a compliance account for the TR SO2 Group 2 source for 

which the certificate of representation was submitted, unless 

the source already has a compliance account. The designated 

representative and any alternate designated representative of 

the source shall be the authorized account representative and 

the alternate authorized account representative respectively of 

the compliance account.

(b) Assurance accounts. The Administrator will establish 

assurance accounts for certain owners and operators and States 

in accordance with §97.725(b)(3). 

(c) General accounts. (1) Application for general account. (i) 

Any person may apply to open a general account, for the purpose 

of holding and transferring TR SO2 Group 2 allowances, by 

submitting to the Administrator a complete application for a 

general account. Such application shall designate one and only 

one authorized account representative and may designate one and 

only one alternate authorized account representative who may act 

on behalf of the authorized account representative. 

(A) The authorized account representative and alternate 

authorized account representative shall be selected by an 
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agreement binding on the persons who have an ownership interest 

with respect to TR SO2 Group 2 allowances held in the general 

account. 

(B) The agreement by which the alternate authorized account 

representative is selected shall include a procedure for 

authorizing the alternate authorized account representative to 

act in lieu of the authorized account representative.

(ii) A complete application for a general account 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 

authorized account representative and any alternate authorized 

account representative;

(B) An identifying name for the general account;

(C) A list of all persons subject to a binding agreement for the 

authorized account representative and any alternate authorized 

account representative to represent their ownership interest 

with respect to the TR SO2 Group 2 allowances held in the general 

account;
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(D) The following certification statement by the authorized 

account representative and any alternate authorized account 

representative: “I certify that I was selected as the authorized 

account representative or the alternate authorized account 

representative, as applicable, by an agreement that is binding 

on all persons who have an ownership interest with respect to TR 

SO2 Group 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 TR SO2 Group 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 decision or order issued to me by the Administrator 

regarding the general account.”

(E) The signature of the authorized account representative and 

any alternate authorized account representative and the dates 

signed.

(iii) Unless otherwise required by the Administrator, documents 

of agreement referred to in the application for a general 

account shall not be submitted to the Administrator. The 

Administrator shall not be under any obligation to review or 

evaluate the sufficiency of such documents, if submitted.
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(2) Authorization of authorized account representative and 

alternate authorized account representative. (i) Upon receipt 

by the Administrator of a complete application for a general 

account under paragraph (b)(1) of this section, the 

Administrator will establish a general account for the person or 

persons for whom the application is submitted, and upon and 

after such receipt by the Administrator:

(A) The authorized account representative of the general account 

shall be authorized and shall represent and, by his or her 

representations, actions, inactions, or submissions, legally 

bind each person who has an ownership interest with respect to 

TR SO2 Group 2 allowances held in the general account in all 

matters pertaining to the TR SO2 Group 2 Trading Program, 

notwithstanding any agreement between the authorized account 

representative and such person. 

(B) Any alternate authorized account representative shall be 

authorized, and any representation, action, inaction, or 

submission by any alternate authorized account representative 

shall be deemed to be a representation, action, inaction, or 

submission by the authorized account representative.

(C) Each person who has an ownership interest with respect to TR 

SO2 Group 2 allowances held in the general account shall be bound 
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by any decision or order issued to the authorized account 

representative or alternate authorized account representative by 

the Administrator regarding the general account. 

(ii) Except as provided in paragraph (c)(5) of this section 

concerning delegation of authority to make submissions, each 

submission concerning the general account shall be made, signed, 

and certified by the authorized account representative or any 

alternate authorized account representative for the persons 

having an ownership interest with respect to TR SO2 Group 2 

allowances held in the general account. Each such submission 

shall include the following certification statement by the 

authorized account representative or any alternate authorized 

account representative: “I am authorized to make this submission 

on behalf of the persons having an ownership interest with 

respect to the TR SO2 Group 2 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 
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omitting required statements and information, including the 

possibility of fine or imprisonment.”

(iii) Except in this section, whenever the term “authorized 

account representative” is used in this subpart, the term shall 

be construed to include the authorized account representative or 

any alternate authorized account representative.

(3) Changing authorized account representative and alternate 

authorized account representative; changes in persons with 

ownership interest. (i) The authorized account representative 

of 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 (c)(1) of this section. 

Notwithstanding any such change, all representations, actions, 

inactions, and submissions by the previous 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 authorized account representative and the 

persons with an ownership interest with respect to the TR SO2

Group 2 allowances in the general account.

(ii) The alternate authorized account representative of a 

general account may be changed at any time upon receipt by the 

Administrator of a superseding complete application for a 
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general account under paragraph (c)(1) of this section. 

Notwithstanding any such change, all representations, actions, 

inactions, and submissions by the previous alternate 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 authorized account 

representative, the authorized account representative, and the 

persons with an ownership interest with respect to the TR SO2

Group 2 allowances in the general account.

(iii)(A) In the event a person having an ownership interest with 

respect to TR SO2 Group 2 allowances in the general account is 

not included in the list of such persons in the application for 

a general account, such person shall be deemed to be subject to 

and bound by the application for a general account, the 

representation, actions, inactions, and submissions of the 

authorized account representative and any alternate authorized 

account representative of the account, and the decisions and 

orders of the Administrator, as if the person were included in 

such list.

(B) Within 30 days after any change in the persons having an 

ownership interest with respect to SO2 Group 2 allowances in the 

general account, including the addition or removal of a person, 

the authorized account representative or any alternate 
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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 TR SO2 Group 2 

allowances in the general account to include the change.

(4) Objections concerning authorized account representative and 

alternate authorized account representative. (i) Once a 

complete application for a general account under paragraph 

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

no objection or other communication submitted to the 

Administrator concerning the authorization, or any 

representation, action, inaction, or submission of the 

authorized account representative or any alternate authorized 

account representative of a general account shall affect any 

representation, action, inaction, or submission of the 

authorized account representative or any alternate authorized 

account representative or the finality of any decision or order 

by the Administrator under the TR SO2 Group 2 Trading Program.
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(iii) The Administrator will not adjudicate any private legal 

dispute concerning the authorization or any representation, 

action, inaction, or submission of the authorized account 

representative or any alternate authorized account 

representative of a general account, including private legal 

disputes concerning the proceeds of TR SO2 Group 2 allowance 

transfers.

(5) Delegation by authorized account representative and 

alternate authorized account representative. (i) An authorized 

account representative of a general account may delegate, to one 

or more natural persons, his or her authority to make an 

electronic submission to the Administrator provided for or 

required under this subpart.

(ii) An alternate authorized account representative of a general 

account may delegate, to one or more natural persons, his or her 

authority to make an electronic submission to the Administrator 

provided for or required under this subpart.

(iii) In order to delegate authority to a natural person to make 

an electronic submission to the Administrator in accordance with 

paragraph (c)(5)(i) or (ii) of this section, the authorized 

account representative or alternate authorized account 

representative, as appropriate, must submit to the Administrator 
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a notice of delegation, in a format prescribed by the 

Administrator, that includes the following elements:

(A) The name, address, e-mail address, telephone number, and 

facsimile transmission number (if any) of such authorized 

account representative or alternate authorized account 

representative;

(B) The name, address, e-mail address, telephone number, and 

facsimile transmission number (if any) of each such natural 

person (referred to in this section as an “agent”);

(C) For each such natural person, a list of the type or types of 

electronic submissions under paragraph (c)(5)(i) or (ii) of this 

section for which authority is delegated to him or her;

(D) The following certification statement by such authorized 

account representative or alternate authorized account 

representative: “I agree that any electronic submission to the 

Administrator that is made by an agent identified in this notice 

of delegation and of a type listed for such agent in this notice 

of delegation and that is made when I am an authorized account 

representative or alternate authorized representative, as 

appropriate, and before this notice of delegation is superseded 

by another notice of delegation under 40 CFR 97.720(c)(5)(iv) 

shall be deemed to be an electronic submission by me.”; and
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(E) The following certification statement by such authorized 

account representative or alternate authorized account 

representative: “Until this notice of delegation is superseded 

by another notice of delegation under 40 CFR 97.720(c)(5)(iv), I 

agree to maintain an e-mail account and to notify the 

Administrator immediately of any change in my e-mail address 

unless all delegation of authority by me under 40 CFR 

97.720(c)(5) is terminated.”.

(iv) A notice of delegation submitted under paragraph 

(c)(5)(iii) of this section shall be effective, with regard to 

the authorized account representative or alternate authorized 

account representative identified in such notice, upon receipt 

of such notice by the Administrator and until receipt by the 

Administrator of a superseding notice of delegation submitted by 

such authorized account representative or alternate authorized 

account representative, as appropriate. The superseding notice 

of delegation may replace any previously identified agent, add a 

new agent, or eliminate entirely any delegation of authority.

(v) Any electronic submission covered by the certification in 

paragraph (c)(5)(iii)(D) of this section and made in accordance 

with a notice of delegation effective under paragraph (c)(5)(iv) 

of this section shall be deemed to be an electronic submission 
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by the designated representative or alternate designated 

representative submitting such notice of delegation.

(6) Closing a general account. (i) The authorized account 

representative or alternate authorized account representative of 

a general account may submit to the Administrator a request to 

close the account. Such request shall include a correctly 

submitted TR SO2 Group 2 allowance transfer under §97.722 for any 

TR SO2 Group 2 allowances in the account to one or more other 

Allowance Management System accounts.

(ii) If a general account has no TR SO2 Group 2 allowance 

transfers to or from the account for a 12-month period or longer 

and does not contain any TR SO2 Group 2 allowances, the 

Administrator may notify the authorized account representative 

for the account that the account will be closed after 30 days 

after the notice is sent. The account will be closed after the 

30-day period unless, before the end of the 30-day period, the 

Administrator receives a correctly submitted TR SO2 Group 2 

allowance transfer under §97.722 to the account or a statement 

submitted by the authorized account representative or alternate 

authorized account representative demonstrating to the 

satisfaction of the Administrator good cause as to why the 

account should not be closed.
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(d) Account identification. The Administrator will assign a 

unique identifying number to each account established under 

paragraph (a), (b), or (c) of this section.

(e) Responsibilities of authorized account representative and 

alternate authorized account representative. After the 

establishment of a compliance account or general account, the 

Administrator will accept or act on a submission pertaining to 

the account, including, but not limited to, submissions 

concerning the deduction or transfer of TR SO2 Group 2 allowances 

in the account, only if the submission has been made, signed, 

and certified in accordance with §§97.714(a) and 97.718 or 

paragraphs (c)(2)(ii) and (c)(5) of this section. 

§ 97.721 Recordation of TR SO2 Group 2 allowance allocations and 

auction results.

(a) By [INSERT DATE 90 DAYS FROM DATE OF PUBLICATION IN THE 

FEDERAL REGISTER], the Administrator will record in each TR SO2

Group 2 source's compliance account the TR SO2 Group 2 allowances 

allocated to the TR SO2 Group 2 units at the source in accordance 

with §97.711(a) for the control period in 2012.

(b) By [INSERT DATE 90 DAYS FROM DATE OF PUBLICATION IN THE 

FEDERAL REGISTER], the Administrator will record in each TR SO2

Group 2 source's compliance account the TR SO2 Group 2 allowances 
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allocated to the TR SO2 Group 2 units at the source in accordance 

with §97.711(a) for the control period in 2013, unless the State 

in which the source is located notifies the Administrator in 

writing by [INSERT DATE 70 DAYS FROM DATE OF PUBLICATION IN THE 

FEDERAL REGISTER] of the State’s intent to submit to the 

Administrator a complete SIP revision by April 1, 2012 meeting 

the requirements of §52.39(g)(1) through (4) of this chapter.

(1) If, by April 1, 2012, the State does not submit to the 

Administrator such complete SIP revision, the Administrator will 

record by April 15, 2012 in each TR SO2 Group 2 source's 

compliance account the TR SO2 Group 2 allowances allocated to the 

TR SO2 Group 2 units at the source in accordance with §97.711(a)

for the control period in 2013.

(2) If the State submits to the Administrator by April 1, 2012, 

and the Administrator approves by October 1, 2012, such complete 

SIP revision, the Administrator will record by October 1, 2012 

in each TR SO2 Group 2 source's compliance account the TR SO2

Group 2 allowances allocated to the TR SO2 Group 2 units at the 

source as provided in such approved, complete SIP revision for 

the control period in 2013.

(3) If the State submits to the Administrator by April 1, 2012, 

and the Administrator does not approve by October 1, 2012, such 
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complete SIP revision, the Administrator will record by October 

1, 2012 in each TR SO2 Group 2 source's compliance account the TR 

SO2 Group 2 allowances allocated to the TR SO2 Group 2 units at 

the source in accordance with §97.711(a) for the control period 

in 2013.

(c) By July 1, 2013, the Administrator will record in each TR SO2

Group 2 source's compliance account the TR SO2 Group 2 allowances 

allocated to the TR SO2 Group 2 units at the source, or in each 

appropriate Allowance Management System account the TR SO2 Group 

2 allowances auctioned to TR SO2 Group 2 units, in accordance 

with §97.711(a), or with a SIP revision approved under §52.39(h) 

or (i) of this chapter, for the control period in 2014 and 2015.

(d) By July 1, 2014, the Administrator will record in each TR SO2

Group 2 source's compliance account the TR SO2 Group 2 allowances 

allocated to the TR SO2 Group 2 units at the source, or in each 

appropriate Allowance Management System account the TR SO2 Group 

2 allowances auctioned to TR SO2 Group 2 units, in accordance 

with §97.711(a), or with a SIP revision approved under §52.39(h) 

or (i) of this chapter, for the control period in 2016 and 2017.

(e) By July 1, 2015, the Administrator will record in each TR SO2

Group 2 source's compliance account the TR SO2 Group 2 allowances 

allocated to the TR SO2 Group 2 units at the source, or in each 
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appropriate Allowance Management System account the TR SO2 Group 

2 allowances auctioned to TR SO2 Group 2 units, in accordance 

with §97.711(a), or with a SIP revision approved under §52.39(h) 

or (i) of this chapter, for the control period in 2018 and 2019.

(f) By July 1, 2016 and July 1 of each year thereafter, the 

Administrator will record in each TR SO2 Group 2 source's 

compliance account the TR SO2 Group 2 allowances allocated to the 

TR SO2 Group 2 units at the source, or in each appropriate 

Allowance Management System account the TR SO2 Group 2 allowances

auctioned to TR SO2 Group 2 units, in accordance with §97.711(a), 

or with a SIP revision approved under §52.39(h) and (i) of this 

chapter, for the control period in the fourth year after the 

year of the applicable recordation deadline under this 

paragraph.

(g) By August 1, 2012 and August 1 of each year thereafter, the 

Administrator will record in each TR SO2 Group 2 source's 

compliance account the TR SO2 Group 2 allowances allocated to the 

TR SO2 Group 2 units at the source, or in each appropriate 

Allowance Management System account the TR SO2 Group 2 allowances

auctioned to TR SO2 Group 2 units, in accordance with 

§97.712(a)(2) through (8) and (12), or with a SIP revision 

approved under §52.39(h) and (i) of this chapter, for the 
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control period in the year of the applicable recordation 

deadline under this paragraph.

(h) By August 1, 2012 and August 1 of each year thereafter, the 

Administrator will record in each TR SO2 Group 2 source's 

compliance account the TR SO2 Group 2 allowances allocated to the 

TR SO2 Group 2 units at the source in accordance with 

§97.712(b)(2) through (8) and (12) for the control period in the 

year of the applicable recordation deadline under this 

paragraph.

(i) By February 15, 2013 and February 15 of each year 

thereafter, the Administrator will record in each TR SO2 Group 2

source's compliance account the TR SO2 Group 2 allowances 

allocated to the TR SO2 Group 2 units at the source in accordance 

with §97.712(a)(9) through (12), for the control period in the 

year before the year of the applicable recordation deadline

under this paragraph.

(j) By the date on which any allocation or auction results, 

other than an allocation or auction results, described in

paragraphs (a) through (i) of this section, of TR SO2 Group 2 

allowances to a recipient is made by or are submitted to the 

Administrator in accordance with §97.711 or §97.712 or with a 

SIP revision approved under §52.39(h) or (i) of this chapter, 
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the Administrator will record such allocation or auction results 

in the appropriate Allowance Management System account. 

(k) When recording the allocation or auction of TR SO2 Group 2 

allowances to a TR SO2 Group 2 unit or other entity in an 

Allowance Management System account, the Administrator will 

assign each TR SO2 Group 2 allowance a unique identification 

number that will include digits identifying the year of the 

control period for which the TR SO2 Group 2 allowance is 

allocated or auctioned.

§ 97.722 Submission of TR SO2 Group 2 allowance transfers.

(a) An authorized account representative seeking recordation of 

a TR SO2 Group 2 allowance transfer shall submit the transfer to 

the Administrator. 

(b) A TR SO2 Group 2 allowance transfer shall be correctly 

submitted if: 

(1) The transfer includes the following elements, in a format 

prescribed by the Administrator:

(i) The account numbers established by the Administrator for 

both the transferor and transferee accounts;
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(ii) The serial number of each TR SO2 Group 2 allowance that is 

in the transferor account and is to be transferred; and

(iii) The name and signature of the authorized account 

representative of the transferor account and the date signed; 

and

(2) When the Administrator attempts to record the transfer, the 

transferor account includes each TR SO2 Group 2 allowance 

identified by serial number in the transfer. 

§ 97.723 Recordation of TR SO2 Group 2 allowance transfers.

(a) Within 5 business days (except as provided in paragraph (b) 

of this section) of receiving a TR SO2 Group 2 allowance transfer 

that is correctly submitted under §97.722, the Administrator 

will record a TR SO2 Group 2 allowance transfer by moving each TR 

SO2 Group 2 allowance from the transferor account to the 

transferee account as specified in the transfer. 

(b) A TR SO2 Group 2 allowance transfer to or from a compliance 

account that is submitted for recordation after the allowance 

transfer deadline for a control period and that includes any TR 

SO2 Group 2 allowances allocated for any control period before 

such allowance transfer deadline will not be recorded until 

after the Administrator completes the deductions from such 
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compliance account under §97.724 for the control period 

immediately before such allowance transfer deadline.

(c) Where a TR SO2 Group 2 allowance transfer is not correctly 

submitted under §97.722, the Administrator will not record such 

transfer.

(d) Within 5 business days of recordation of a TR SO2 Group 2 

allowance transfer under paragraphs (a) and (b) of the section, 

the Administrator will notify the authorized account 

representatives of both the transferor and transferee accounts.

(e) Within 10 business days of receipt of a TR SO2 Group 2 

allowance transfer that is not correctly submitted under 

§97.722, the Administrator will notify the authorized account 

representatives of both accounts subject to the transfer of:

(1) A decision not to record the transfer, and

(2) The reasons for such non-recordation.

§ 97.724 Compliance with TR SO2 Group 2 emissions limitation.

(a) Availability for deduction for compliance. TR SO2 Group 2 

allowances are available to be deducted for compliance with a 

source's TR SO2 Group 2 emissions limitation for a control period 

in a given year only if the TR SO2 Group 2 allowances:
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(1) Were allocated for such control period or a control period 

in a prior year; and

(2) Are held in the source’s compliance account as of the 

allowance transfer deadline for such control period. 

(b) Deductions for compliance. After the recordation, in 

accordance with §97.723, of TR SO2 Group 2 allowance transfers 

submitted by the allowance transfer deadline for a control 

period in a given year, the Administrator will deduct from each 

source’s compliance account TR SO2 Group 2 allowances available 

under paragraph (a) of this section in order to determine 

whether the source meets the TR SO2 Group 2 emissions limitation 

for such control period, as follows:

(1) Until the amount of TR SO2 Group 2 allowances deducted equals 

the number of tons of total SO2 emissions from all TR SO2 Group 2 

units at the source for such control period; or

(2) If there are insufficient TR SO2 Group 2 allowances to 

complete the deductions in paragraph (b)(1) of this section, 

until no more TR SO2 Group 2 allowances available under paragraph 

(a) of this section remain in the compliance account.

(c)(1) Identification of TR SO2 Group 2 allowances by serial 

number. The authorized account representative for a source's 
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compliance account may request that specific TR SO2 Group 2 

allowances, identified by serial number, in the compliance 

account be deducted for emissions or excess emissions for a 

control period in a given year in accordance with paragraph (b) 

or (d) of this section. In order to be complete, such request 

shall be submitted to the Administrator by the allowance 

transfer deadline for such control period and include, in a 

format prescribed by the Administrator, the identification of 

the TR SO2 Group 2 source and the appropriate serial numbers.

(2) First-in, first-out. The Administrator will deduct TR SO2

Group 2 allowances under paragraph (b) or (d) of this section 

from the source's compliance account in accordance with a 

complete request under paragraph (c)(1) of this section or, in 

the absence of such request or in the case of identification of 

an insufficient amount of TR SO2 Group 2 allowances in such 

request, on a first-in, first-out accounting basis in the 

following order:

(i) Any TR SO2 Group 2 allowances that were allocated to the 

units at the source and not transferred out of the compliance 

account, in the order of recordation; and then
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(ii) Any TR SO2 Group 2 allowances that were allocated to any 

unit and transferred to and recorded in the compliance account 

pursuant to this subpart, in the order of recordation.

(d) Deductions for excess emissions. After making the 

deductions for compliance under paragraph (b) of this section 

for a control period in a year in which the TR SO2 Group 2 source 

has excess emissions, the Administrator will deduct from the 

source's compliance account an amount of TR SO2 Group 2 

allowances, allocated for a control period in a prior year or 

the control period in the year of the excess emissions or in the 

immediately following year, equal to two times the number of 

tons of the source's excess emissions.

(e) Recordation of deductions. The Administrator will record in 

the appropriate compliance account all deductions from such an 

account under paragraphs (b) and (d) of this section.

§ 97.725 Compliance with TR SO2 Group 2 assurance provisions.

(a) Availability for deduction. TR SO2 Group 2 allowances are 

available to be deducted for compliance with the TR SO2 Group 2 

assurance provisions for a control period in a given year by the 

owners and operators of a group of one or more TR SO2 Group 2 

sources and units in a State (and Indian country within the 

borders of such State) only if the TR SO2 Group 2 allowances: 
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(1) Were allocated for a control period in a prior year or the 

control period in the given year or in the immediately following 

year; and

(2) Are held in the assurance account, established by the 

Administrator for such owners and operators of such group of TR 

SO2 Group 2 sources and units in such State (and Indian country 

within the borders of such State) under paragraph (b)(3) of this 

section, as of the deadline established in paragraph (b)(4) of 

this section. 

(b) Deductions for compliance. The Administrator will deduct TR 

SO2 Group 2 allowances available under paragraph (a) of this 

section for compliance with the TR SO2 Group 2 assurance 

provisions for a State for a control period in a given year in 

accordance with the following procedures:

(1) By June 1, 2013 and June 1 of each year thereafter, the 

Administrator will:

(i) Calculate, for each State (and Indian country within the 

borders of such State), the total SO2 emissions from all TR SO2

Group 2 units at TR SO2 Group 2 sources in the State (and Indian 

country within the borders of such State) during the control 

period in the year before the year of this calculation deadline 

and the amount, if any, by which such total SO2 emissions exceed 
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the State assurance level as described in §97.706(c)(2)(iii); 

and

(ii) Promulgate a notice of data availability of the results of 

the calculations required in paragraph (b)(1)(i) of this 

section, including separate calculations of the SO2 emissions 

from each TR SO2 Group 2 source. 

(2) For each notice of data availability required in paragraph 

(b)(1)(ii) of this section and for any State (and Indian country 

within the borders of such State) identified in such notice as 

having TR SO2 Group 2 units with total SO2 emissions exceeding 

the State assurance level for a control period in a given year, 

as described in §97.706(c)(2)(iii):

(i) By July 1 immediately after the promulgation of such notice, 

the designated representative of each TR SO2 Group 2 source in 

each such State (and Indian country within the borders of such 

State) shall submit a statement, in a format prescribed by the 

Administrator, providing for each TR SO2 Group 2 unit (if any) at 

the source that operates during, but is not allocated an amount 

of TR SO2 Group 2 allowances for, such control period, the unit’s 

allowable SO2 emission rate for such control period and, if such 

rate is expressed in lb per mmBtu, the unit’s heat rate. 
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(ii) By August 1 immediately after the promulgation of such 

notice, the Administrator will calculate, for each such State 

(and Indian country within the borders of such State) and such 

control period and each common designated representative for 

such control period for a group of one or more TR SO2 Group 2 

sources and units in the State (and Indian country within the 

borders of such State), the common designated representative’s 

share of the total SO2 emissions from all TR SO2 Group 2 units at 

TR SO2 Group 2 sources in the State (and Indian country within 

the borders of such State), the common designated 

representative’s assurance level, and the amount (if any) of TR 

SO2 Group 2 allowances that the owners and operators of such 

group of sources and units must hold in accordance with the 

calculation formula in §97.706(c)(2)(i) and will promulgate a 

notice of data availability of the results of these 

calculations. 

(iii) The Administrator will provide an opportunity for 

submission of objections to the calculations referenced by the 

notice of data availability required in paragraph (b)(2)(ii) of 

this section and the calculations referenced by the relevant 

notice of data availability required in paragraph (b)(1)(i) of 

this section. 
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(A) Objections shall be submitted by the deadline specified in 

such notice and shall be limited to addressing whether the 

calculations referenced in the relevant notice required under 

paragraph (b)(1)(ii) of this section and referenced in the 

notice required under paragraph (b)(2)(ii) of this section are 

in accordance with §97.706(c)(2)(iii), §§97.706(b) and 97.730 

through 97.735, the definitions of “common designated 

representative”, “common designated representative’s assurance 

level”, and “common designated representative’s share” in 

§97.702, and the calculation formula in §97.706(c)(2)(i).

(B) The Administrator will adjust the calculations to the extent 

necessary to ensure that they are in accordance with the 

provisions referenced in paragraph (b)(2)(iii)(A) of this 

section. By October 1 immediately after the promulgation of 

such notice, the Administrator will promulgate a notice of data 

availability of any adjustments that the Administrator 

determines to be necessary and the reasons for accepting or 

rejecting any objections submitted in accordance with paragraph 

(b)(2)(iii)(A) of this section.

(3) For any State (and Indian country within the borders of such 

State) referenced in each notice of data availability required 

in paragraph (b)(2)(iii)(B) of this section as having TR SO2

Group 2 units with total SO2 emissions exceeding the State 
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assurance level for a control period in a given year, the 

Administrator will establish one assurance account for each set 

of owners and operators referenced, in the notice of data 

availability required under paragraph (b)(2)(iii)(B) of this 

section, as all of the owners and operators of a group of TR SO2

Group 2 sources and units in the State (and Indian country 

within the borders of such State) having a common designated 

representative for such control period and as being required to 

hold TR SO2 Group 2 allowances. 

(4)(i) As of midnight of November 1 immediately after the 

promulgation of each notice of data availability required in 

paragraph (b)(2)(iii)(B) of this section, the owners and 

operators described in paragraph (b)(3) of this section shall 

hold in the assurance account established for the them and for 

the appropriate TR SO2 Group 2 sources, TR SO2 Group 2 units, and 

State (and Indian country within the borders of such State) 

under paragraph (b)(3) of this section a total amount of TR SO2

Group 2 allowances, available for deduction under paragraph (a) 

of this section, equal to the amount such owners and operators 

are required to hold with regard to such sources, units and 

State (and Indian country within the borders of such State) as 

calculated by the Administrator and referenced in such notice. 
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(ii) Notwithstanding the allowance-holding deadline specified in 

paragraph (b)(4)(i) of this section, if November 1 is not a 

business day, then such allowance-holding deadline shall be 

midnight of the first business day thereafter.

(5) After November 1 (or the date described in paragraph 

(b)(4)(ii) of this section) immediately after the promulgation 

of each notice of data availability required in paragraph 

(b)(2)(iii)(B) of this section and after the recordation, in 

accordance with §97.723, of TR SO2 Group 2 allowance transfers 

submitted by midnight of such date, the Administrator will 

determine whether the owners and operators described in 

paragraph (b)(3) of this section hold, in the assurance account 

for the appropriate TR SO2 Group 2 sources, TR SO2 Group 2 units, 

and State (and Indian country within the borders of such State) 

established under paragraph (b)(3) of this section, the amount 

of TR SO2 Group 2 allowances available under paragraph (a) of 

this section that the owners and operators are required to hold 

with regard to such sources, units, and State (and Indian 

country within the borders of such State) as calculated by the 

Administrator and referenced in the notice required in paragraph 

(b)(2)(iii)(B) of this section.

(6) Notwithstanding any other provision of this subpart and any 

revision, made by or submitted to the Administrator after the 
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promulgation of the notice of data availability required in 

paragraph (b)(2)(iii)(B) of this section for a control period in

a given year, of any data used in making the calculations 

referenced in such notice, the amounts of TR SO2 Group 2 

allowances that the owners and operators are required to hold in 

accordance with §97.706(c)(2)(i) for such control period shall 

continue to be such amounts as calculated by the Administrator 

and referenced in such notice required in paragraph 

(b)(2)(iii)(B) of this section, except as follows:

(i) If any such data are revised by the Administrator as a 

result of a decision in or settlement of litigation concerning 

such data on appeal under part 78 of this chapter of such 

notice, or on appeal under section 307 of the Clean Air Act of a 

decision rendered under part 78 of this chapter on appeal of 

such notice, then the Administrator will use the data as so 

revised to recalculate the amounts of TR SO2 Group 2 allowances 

that owners and operators are required to hold in accordance 

with the calculation formula in §97.706(c)(2)(i) for such 

control period with regard to the TR SO2 Group 2 sources, TR SO2

Group 2 units, and State (and Indian country within the borders 

of such State) involved, provided that such litigation under 

part 78 of this chapter, or the proceeding under part 78 of this 

chapter that resulted in the decision appealed in such 
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litigation under section 307 of the Clean Air Act, was initiated 

no later than 30 days after promulgation of such notice required 

in paragraph (b)(2)(iii)(B) of this section.

(ii) If any such data are revised by the owners and operators of 

a TR SO2 Group 2 source and TR SO2 Group 2 unit whose designated 

representative submitted such data under paragraph (b)(2)(i) of 

this section, as a result of a decision in or settlement of 

litigation concerning such submission, then the Administrator 

will use the data as so revised to recalculate the amounts of TR 

SO2 Group 2 allowances that owners and operators are required to 

hold in accordance with the calculation formula in 

§97.706(c)(2)(i) for such control period with regard to the TR 

SO2 Group 2 sources, TR SO2 Group 2 units, and State (and Indian 

country within the borders of such State) involved, provided 

that such litigation was initiated no later than 30 days after 

promulgation of such notice required in paragraph (b)(2)(iii)(B) 

of this section.

(iii) If the revised data are used to recalculate, in accordance 

with paragraphs (b)(6)(i) and (ii) of this section, the amount 

of TR SO2 Group 2 allowances that the owners and operators are 

required to hold for such control period with regard to the TR 

SO2 Group 2 sources, TR SO2 Group 2 units, and State (and Indian 

country within the borders of such State) involved—
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(A) Where the amount of TR SO2 Group 2 allowances that the owners 

and operators are required to hold increases as a result of the 

use of all such revised data, the Administrator will establish a 

new, reasonable deadline on which the owners and operators shall 

hold the additional amount of TR SO2 Group 2 allowances in the 

assurance account established by the Administrator for the 

appropriate TR SO2 Group 2 sources, TR SO2 Group 2 units, and 

State (and Indian country within the borders of such State) 

under paragraph (b)(3) of this section. The owners’ and 

operators’ failure to hold such additional amount, as required, 

before the new deadline shall not be a violation of the Clean 

Air Act. The owners’ and operators’ failure to hold such 

additional amount, as required, as of the new deadline shall be 

a violation of the Clean Air Act. Each TR SO2 Group 2 allowance 

that the owners and operators fail to hold as required as of the 

new deadline, and each day in such control period, shall be a 

separate violation of the Clean Air Act. 

(B) For the owners and operators for which the amount of TR SO2

Group 2 allowances required to be held decreases as a result of 

the use of all such revised data, the Administrator will record, 

in all accounts from which TR SO2 Group 2 allowances were 

transferred by such owners and operators for such control period 

to the assurance account established by the Administrator for 
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the appropriate at TR SO2 Group 2 sources, TR SO2 Group 2 units, 

and State (and Indian country within the borders of such State) 

under paragraph (b)(3) of this section, a total amount of the TR 

SO2 Group 2 allowances held in such assurance account equal to 

the amount of the decrease. If TR SO2 Group 2 allowances were 

transferred to such assurance account from more than one 

account, the amount of TR SO2 Group 2 allowances recorded in each 

such transferor account will be in proportion to the percentage 

of the total amount of TR SO2 Group 2 allowances transferred to 

such assurance account for such control period from such 

transferor account. 

(C) Each TR SO2 Group 2 allowance held under paragraph 

(b)(6)(iii)(A) of this section as a result of recalculation of 

requirements under the TR SO2 Group 2 assurance provisions for 

such control period must be a TR SO2 Group 2 allowance allocated 

for a control period in a year before or the year immediately 

following, or in the same year as, the year of such control 

period. 

§ 97.726 Banking.

(a) A TR SO2 Group 2 allowance may be banked for future use or 

transfer in a compliance account or a general account in 

accordance with paragraph (b) of this section.
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(b) Any TR SO2 Group 2 allowance that is held in a compliance 

account or a general account will remain in such account unless 

and until the TR SO2 Group 2 allowance is deducted or transferred 

under §97.711(c), §97.723, §97.724, §97.725, 97.727, or 97.728.

§ 97.727 Account error.

The Administrator may, at his or her sole discretion and on his 

or her own motion, correct any error in any Allowance Management 

System account. Within 10 business days of making such 

correction, the Administrator will notify the authorized account 

representative for the account.

§ 97.728 Administrator’s action on submissions.

(a) The Administrator may review and conduct independent audits 

concerning any submission under the TR SO2 Group 2 Trading 

Program and make appropriate adjustments of the information in 

the submission.

(b) The Administrator may deduct TR SO2 Group 2 allowances from 

or transfer TR SO2 Group 2 allowances to a compliance account or 

an assurance account, based on the information in a submission, 

as adjusted under paragraph (a)(1) of this section, and record 

such deductions and transfers.

§ 97.729 [RESERVED]
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§ 97.730 General monitoring, recordkeeping, and reporting 

requirements.

The owners and operators, and to the extent applicable, the 

designated representative, of a TR SO2 Group 2 unit, shall comply 

with the monitoring, recordkeeping, and reporting requirements 

as provided in this subpart and subparts F and G of part 75 of 

this chapter. For purposes of applying such requirements, the 

definitions in §97.702 and in §72.2 of this chapter shall apply, 

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 “TR SO2

Group 2 unit,“ “designated representative,” and “continuous 

emission monitoring system” (or “CEMS”) respectively as defined 

in §97.702, and the term “newly affected unit” shall be deemed 

to mean “newly affected TR SO2 Group 2 unit”. The owner or 

operator of a unit that is not a TR SO2 Group 2 unit but that is 

monitored under §75.16(b)(2) of this chapter shall comply with

the same monitoring, recordkeeping, and reporting requirements 

as a TR SO2 Group 2 unit.

(a) Requirements for installation, certification, and data 

accounting. The owner or operator of each TR SO2 Group 2 unit 

shall:
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(1) Install all monitoring systems required under this subpart 

for monitoring SO2 mass emissions and individual unit heat input 

(including all systems required to monitor SO2 concentration, 

stack gas moisture content, stack gas flow rate, CO2 or O2

concentration, and fuel flow rate, as applicable, in accordance 

with §§75.11 and 75.16 of this chapter);

(2) Successfully complete all certification tests required under 

§97.731 and meet all other requirements of this subpart and part 

75 of this chapter applicable to the monitoring systems under 

paragraph (a)(1) of this section; and

(3) Record, report, and quality-assure the data from the 

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

(b) Compliance deadlines. Except as provided in paragraph (e) of 

this section, the owner or operator shall meet the monitoring 

system certification and other requirements of paragraphs (a)(1) 

and (2) of this section on or before the following dates and

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 TR SO2 Group 2 unit that 
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commences commercial operation before July 1, 2011, January 1, 

2012.

(2) For the owner or operator of a TR SO2 Group 2 unit that 

commences commercial operation on or after July 1, 2011, by the 

later of the following:

(i) January 1, 2012; or

(ii) 180 calendar days after the date on which the unit 

commences commercial operation.

(3) The owner or operator of a TR SO2 Group 2 unit for which 

construction of a new stack or flue or installation of add-on SO2

emission controls is completed after the applicable deadline 

under paragraph (b)(1) or (2) of this section shall meet the 

requirements of §§75.4(e)(1) through (e)(4) of this chapter, 

except that:

(i) Such requirements shall apply to the monitoring systems 

required under §97.730 through §97.735, rather than the 

monitoring systems required under part 75 of this chapter;

(ii) SO2 concentration, stack gas moisture content, stack gas 

volumetric flow rate, and O2 or CO2 concentration data shall be 
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determined and reported, rather than the data listed in 

§75.4(e)(2) of this chapter; and

(iii) Any petition for another procedure under §75.4(e)(2) of 

this chapter shall be submitted under §97.735, rather than 

§75.66.

(c) Reporting data. The owner or operator of a TR SO2 Group 2

unit that does not meet the applicable compliance date set forth 

in paragraph (b) of this section for any monitoring system under 

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

system, determine, record, and report maximum potential (or, as 

appropriate, minimum potential) values for SO2 concentration, 

stack gas flow rate, stack gas moisture content, fuel flow rate, 

and any other parameters required to determine SO2 mass emissions 

and heat input in accordance with § 75.31(b)(2) or (c)(3) of 

this chapter or section 2.4 of appendix D to part 75 of this 

chapter, as applicable.

(d) Prohibitions. (1) No owner or operator of a TR SO2 Group 2

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 §97.735.
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(2) No owner or operator of a TR SO2 Group 2 unit shall operate 

the unit so as to discharge, or allow to be discharged, SO2 to 

the atmosphere without accounting for all such SO2 in accordance 

with the applicable provisions of this subpart and part 75 of 

this chapter.

(3) No owner or operator of a TR SO2 Group 2 unit shall disrupt 

the continuous emission monitoring system, any portion thereof, 

or any other approved emission monitoring method, and thereby 

avoid monitoring and recording SO2 mass discharged into the 

atmosphere or heat input, except for periods of recertification 

or periods when calibration, quality assurance testing, or 

maintenance is performed in accordance with the applicable 

provisions of this subpart and part 75 of this chapter.

(4) No owner or operator of a TR SO2 Group 2 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 §97.705 that is in effect;
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(ii) The owner or operator is monitoring emissions from the unit 

with another certified monitoring system approved, in accordance 

with the applicable provisions of this subpart and part 75 of 

this chapter, by the Administrator for use at that unit that 

provides emission data for the same pollutant or parameter as 

the retired or discontinued monitoring system; or

(iii) The 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 §97.731(d)(3)(i).

(e) Long-term cold storage. The owner or operator of a TR SO2

Group 2 unit is subject to the applicable provisions of §75.4(d) 

of this chapter concerning units in long-term cold storage.

§ 97.731 Initial monitoring system certification and 

recertification procedures.

(a) The owner or operator of a TR SO2 Group 2 unit shall be 

exempt from the initial certification requirements of this 

section for a monitoring system under § 97.730(a)(1) if the 

following conditions are met:

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

(2) The applicable quality-assurance and quality-control 

requirements of § 75.21 of this chapter and appendices B and 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 § 97.730(a)(1) that is exempt from 

initial certification requirements under paragraph (a) of this 

section.

(c) [Reserved]

(d) Except as provided in paragraph (a) of this section, the 

owner or operator of a TR SO2 Group 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 §97.730(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 
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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 §97.730(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 §97.730(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 

§97.730(a)(1) that may significantly affect the ability of the 

system to accurately measure or record SO2 mass emissions or heat 

input rate or to meet the quality-assurance and quality-control 

requirements of §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. 
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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 §97.730(a)(1) is subject to the recertification 

requirements in §75.20(g)(6) of this chapter.

(3) Approval process for initial certification and 

recertification. For initial certification of a continuous 

monitoring system under §97.730(a)(1), paragraphs (d)(3)(i) 

through (v) of this section apply. For recertifications of such 

monitoring systems, paragraphs (d)(3)(i) through (iv) of this 

section and 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) apply, provided that in applying paragraphs 

(d)(3)(i) through (iv) of this section, the words 

“certification” and “initial certification” are replaced by the 
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word “recertification” and the word “certified” is replaced by 

with the word “recertified”. 

(i) Notification of certification. The designated 

representative shall submit to the appropriate EPA Regional 

Office and the Administrator written notice of the dates of 

certification testing, in accordance with §97.733.

(ii) Certification application. The designated representative 

shall submit to the Administrator 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 

TR SO2 Group 2 Trading Program for a period not to exceed 120 

days after receipt by the Administrator of the complete 

certification application for the monitoring system under 

paragraph (d)(3)(ii) of this section. Data measured and 

recorded by the provisionally certified monitoring system, in 

accordance with the requirements of part 75 of this chapter, 
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will be considered valid quality-assured data (retroactive to 

the date and time of provisional certification), provided that 

the Administrator does not invalidate the provisional 

certification by issuing a notice of disapproval within 120 days 

of the date of receipt of the complete certification application 

by the Administrator.

(iv) Certification application approval process. The 

Administrator will issue a written notice of approval or 

disapproval of the certification application to the owner or 

operator within 120 days of receipt of the complete 

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

section. In the event the Administrator does not issue such a 

notice within such 120-day period, each monitoring system that 

meets the applicable performance requirements of part 75 of this 

chapter and is included in the certification application will be 

deemed certified for use under the TR SO2 Group 2 Trading 

Program.

(A) Approval notice. If the certification application is 

complete and shows that each monitoring system meets the 

applicable performance requirements of part 75 of this chapter, 

then the Administrator will issue a written notice of approval 

of the certification application within 120 days of receipt.
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(B) Incomplete application notice. If the certification 

application is not complete, then the Administrator will issue a 

written notice of incompleteness that sets a reasonable date by 

which the designated representative must submit the additional 

information required to complete the certification application. 

If the designated representative does not comply with the notice 

of incompleteness by the specified date, then the Administrator 

may issue a notice of disapproval under paragraph (d)(3)(iv)(C) 

of this section. 

(C) Disapproval notice. If the certification application shows 

that any monitoring system does not meet the performance 

requirements of part 75 of this chapter or if the certification 

application is incomplete and the requirement for disapproval 

under paragraph (d)(3)(iv)(B) of this section is met, then the 

Administrator will issue a written notice of disapproval of the 

certification application. Upon issuance of such notice of 

disapproval, the provisional certification is invalidated by the 

Administrator and the data measured and recorded by each 

uncertified monitoring system shall not be considered valid 

quality-assured data beginning with the date and hour of 

provisional certification (as defined under §75.20(a)(3) of this 

chapter). 
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(D) Audit decertification. The Administrator may issue a notice 

of disapproval of the certification status of a monitor in 

accordance with §97.732(b).

(v) Procedures for loss of certification. If the Administrator 

issues a notice of disapproval of a certification application 

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

disapproval of certification status under paragraph 

(d)(3)(iv)(D) of this section, then:

(A) The owner or operator shall substitute the following values, 

for each disapproved monitoring system, for each hour of unit 

operation during the period of invalid data specified under 

§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 SO2 pollutant concentration monitor and 

disapproved flow monitor, respectively, the maximum potential 

concentration of SO2 and the maximum potential flow rate, as 

defined in sections 2.1.1.1 and 2.1.4.1 of appendix A to part 75 

of this chapter.
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(2) For a disapproved moisture monitoring system and disapproved 

diluent gas monitoring system, respectively, the minimum 

potential moisture percentage and either the maximum potential 

CO2 concentration or the minimum potential O2 concentration (as 

applicable), as defined in sections 2.1.5, 2.1.3.1, and 2.1.3.2 

of appendix A to part 75 of this chapter.

(3) For a disapproved fuel flowmeter system, the maximum 

potential fuel flow rate, as defined in section 2.4.2.1 of 

appendix D to part 75 of this chapter.

(B) The designated representative shall submit a notification of 

certification retest dates and a new certification application 

in accordance with paragraphs (d)(3)(i) and (ii) of this 

section.

(C) The owner or operator shall repeat all certification tests 

or other requirements that were failed by the monitoring system, 

as indicated in the Administrator's notice of disapproval, no 

later than 30 unit operating days after the date of issuance of 

the notice of disapproval.

(e) The owner or operator of a unit qualified to use the low 

mass emissions (LME) excepted methodology under §75.19 of this 
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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.

(f) The designated representative of each unit for which the 

owner or operator intends to use an alternative monitoring 

system approved by the Administrator under subpart E of part 75 

of this chapter shall comply with the applicable notification 

and application procedures of §75.20(f) of this chapter.

§ 97.732 Monitoring system out-of-control periods.

(a) General provisions. 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 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 
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should not have been certified or recertified because it did not 

meet a particular performance specification or other requirement 

under §97.731 or the applicable provisions of part 75 of this 

chapter, both at the time of the initial certification or 

recertification application submission and at the time of the 

audit, the Administrator will issue a notice of disapproval of 

the certification status of such monitoring system. For the 

purposes of this paragraph, an audit shall be either a field 

audit or an audit of any information submitted to the 

Administrator or any State or permitting authority. By issuing 

the notice of disapproval, the Administrator revokes 

prospectively the certification status of the monitoring system. 

The data measured and recorded by the monitoring system shall 

not be considered valid quality-assured data from the date of 

issuance of the notification of the revoked certification status 

until the date and time that the owner or operator completes 

subsequently approved initial certification or recertification 

tests for the monitoring system. The owner or operator shall 

follow the applicable initial certification or recertification 

procedures in §97.731 for each disapproved monitoring system.

§ 97.733 Notifications concerning monitoring.
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The designated representative of a TR SO2 Group 2 unit shall 

submit written notice to the Administrator in accordance with 

§75.61 of this chapter.

§ 97.734 Recordkeeping and reporting.

(a) General provisions. The designated representative shall 

comply with all recordkeeping and reporting requirements in

paragraphs (b) through (e) of this section, the applicable 

recordkeeping and reporting requirements in subparts F and G of 

part 75 of this chapter, and the requirements of §97.714(a).

(b) Monitoring plans. The owner or operator of a TR SO2 Group 2 

unit shall comply with requirements of §75.62 of this chapter. 

(c) Certification applications. The designated representative 

shall submit an application to the Administrator within 45 days 

after completing all initial certification or recertification 

tests required under §97.731, including the information required 

under §75.63 of this chapter.

(d) Quarterly reports. The designated representative shall 

submit quarterly reports, as follows:

(1) The designated representative shall report the SO2 mass 
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emissions data and heat input data for the TR SO2 Group 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, 2011, the calendar quarter covering January 1, 2012 through 

March 31, 2012; or

(ii) For a unit that commences commercial operation on or after 

July 1, 2011, the calendar quarter corresponding to the earlier 

of the date of provisional certification or the applicable 

deadline for initial certification under §97.730(b), unless that 

quarter is the third or fourth quarter of 2011, in which case 

reporting shall commence in the quarter covering January 1, 2012 

through March 31, 2012. 

(2) The designated representative shall submit each quarterly 

report to the Administrator within 30 days after 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 TR SO2 Group 2 units that are also subject to the Acid 

Rain Program, TR NOX Annual Trading Program, or TR NOX Ozone 

Season Trading Program, quarterly reports shall include the 
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applicable data and information required by subparts F through H 

of part 75 of this chapter as applicable, in addition to the SO2

mass emission data, heat input data, and other information 

required by this subpart.

(4) The Administrator may review and conduct independent audits 

of any quarterly report in order to determine whether the 

quarterly report meets the requirements of this subpart and part 

75 of this chapter, including the requirement to use substitute 

data. 

(i) The Administrator will notify the designated representative 

of any determination that the quarterly report fails to meet any 

such requirements and specify in such notification any 

corrections that the Administrator believes are necessary to 

make through resubmission of the quarterly report and a 

reasonable time period within which the designated 

representative must respond. Upon request by the designated 

representative, the Administrator may specify reasonable 

extensions of such time period. Within the time period 

(including any such extensions) specified by the Administrator, 

the designated representative shall resubmit the quarterly 

report with the corrections specified by the Administrator, 

except to the extent the designated representative provides 
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information demonstrating that a specified correction is not 

necessary because the quarterly report already meets the 

requirements of this subpart and part 75 of this chapter that 

are relevant to the specified correction.

(ii) Any resubmission of a quarterly report shall meet the 

requirements applicable to the submission of a quarterly report 

under this subpart and part 75 of this chapter, except for the 

deadline set forth in paragraph (d)(2) of this section.

(e) Compliance certification. The designated representative 

shall submit to the Administrator a compliance certification (in 

a format prescribed by the Administrator) in support of each 

quarterly report based on reasonable inquiry of those persons 

with primary responsibility for ensuring that all of the unit's 

emissions are correctly and fully monitored. The certification 

shall state that:

(1) The monitoring data submitted were recorded in accordance 

with the applicable requirements of this subpart and part 75 of 

this chapter, including the quality assurance procedures and 

specifications; and

(2) For a unit with add-on SO2 emission controls and for all 

hours where SO2 data are substituted in accordance with 
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§75.34(a)(1) of this chapter, the add-on emission controls were 

operating within the range of parameters listed in the quality 

assurance/quality control program under appendix B to part 75 of 

this chapter and the substitute data values do not 

systematically underestimate SO2 emissions.

§ 97.735 Petitions for alternatives to monitoring, 

recordkeeping, or reporting requirements.

(a) The designated representative of a TR SO2 Group 2 unit may 

submit a petition under §75.66 of this chapter to the 

Administrator, requesting approval to apply an alternative to 

any requirement of §§97.730 through 97.734. 

(b) A petition submitted under paragraph (a) of this section 

shall include sufficient information for the evaluation of the 

petition, including, at a minimum, the following information:

(i) Identification of each unit and source covered by the 

petition;

(ii) A detailed explanation of why the proposed alternative is 

being suggested in lieu of the requirement;

(iii) A description and diagram of any equipment and procedures 

used in the proposed alternative;
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(iv) A demonstration that the proposed alternative is consistent 

with the purposes of the requirement for which the alternative 

is proposed and with the purposes of this subpart and part 75 of 

this chapter and that any adverse effect of approving the 

alternative will be de minimis; and

(v) Any other relevant information that the Administrator may 

require. 

(c) Use of an alternative to any requirement referenced in 

paragraph (a) of this section is in accordance with this subpart 

only to the extent that the petition is approved in writing by 

the Administrator and that such use is in accordance with such 

approval.