***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 1 of 447 For the reasons stated in the preamble, title 40, chapter I, part 60, 62, and 78 of the Code of the Federal Regulations is amended as follows: **PART 60 --**  **STANDARDS OF PERFORMANCE FOR NEW STATIONARY SOURCES**  1. The authority citation for part 60 continues to read as follows: **Authority:** 42 U.S.C. 7401 et seq . 2. Section 60.27 is amended as follow by :

a. by Revising paragraphs (b), (c) introductory text, and (c)(1 ), (c)(3), (d), and (e) (1) ; ); b
. by Removing and reserving paragraph (c)(2); and

c. by c. Revising paragraphs (c)(3), (d), and (e)(1); and d. Adding paragraphs (g ) , (h), (i), (j), and ) through (k). The revisions, deletion, and additions read as follows: **§ 60.27 Actions by the Administrato r.** 

* * * * * (b) After receipt of a complete plan or complete plan revision, the Administrator will propose the plan or revision for approval or disapproval. The Administrator will, within twelve 12 months after the date on which the submission of a plan

o r plan revision is received, approve or disapprove such plan or revision, or each portion thereof. (c) The Administrator shall must promulgate a federal plan within twelve 12 months after the date the Administrator:***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 2 of 447 (1) Finds the State failed to submit a complete plan or complete plan revision within the time prescribed; or (2) (reserved)
.

* * * * * (3) Disapproves the State plan or plan revision or any portion thereof, as unsatisfactory because the requirements of this subpart and the applicable emission guidelines have not been met. (d) The Administrator will promulgate the regulations under paragraph (c) of this section for all or a portion of a federal plan, with such modifications as may be appropriate, unless, prior to such promulgation, the State ha s adopted and submitted a plan or plan revision which the Administrator determines to be approvable. approves. After the promulgation of a federal plan, the Administrator may approve a State plan or plan revision or portion thereof and withdraw all or a por tion of the federal plan. (e)(1) Except as provided in paragraph (e)(2) of this section, regulations promulgated by the Administrator under this section will prescribe emission standards of the same stringency as the corresponding emission guideline(s) spe cified in the final guideline document published under § 60.22(a) and will require final compliance with such standards as expeditiously as***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 3 of 447 practicable but no later than the times specified in the guideline document.

* * * * * (g) Completeness criteria. ( 1) General
. Within 60 days of the Administrator's receipt of a s tate submission, but no later than six 6 months after the date, if any, by which a State is required to submit the plan or revision, the Administrator shall must determine whether the minimum criteria for completeness have been met. Any plan or plan revision that a State submits to the EPA, and that has not been determined by the EPA by the date six 6 months after receipt of the submission to have failed to meet th e minimum criteria, shall on that date be deemed by operation of law to meet such minimum criteria. Where the Administrator determines that a plan submission does not meet the minimum criteria of this paragraph (g) of this section , the State shall will be t reated as not having made the submission. (2) Administrative criteria
. In order to be complete, a State plan must contain each of the following administrative criteria: ( A i ) A formal letter of submittal from the Governor or her designee requesting EPA appr oval of the plan or revision thereof;***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 4 of 447 ( B ii ) Evidence that the State has adopted the plan in the

s tate code or body of regulations. That evidence shall must include the date of adoption or final issuance as well as the effective date of the plan, if differen t from the adoption/issuance date; ( C iii ) Evidence that the State has the necessary legal authority under s tate law to adopt and implement the plan; ( D iv ) A copy of the actual regulation, or document submitted for approval and incorporation by reference in to the plan. The submittal shall must be a copy of the official s tate regulation or document signed, stamped and dated by the appropriate s tate official indicating that it is fully enforceable by the State. The effective date of the regulation or document s hall must , whenever possible, be indicated in the document itself. The State’s electronic copy must be an exact duplicate of the hard copy. For revisions to the approved plan, the submittal shall must indicate the changes made (for example, by redline/strikethrough) to the approved plan; ( E v ) Evidence that the State followed all of the procedural requirements of the s tate's laws and constitution in conducting and completing the adoption and issuance of the plan; ( F vi ) Evidence that public notice was given of the proposed change with procedures consistent with the requirements of 40
CFR § 60.23, including the date of publication of such notice;***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 5 of 447 ( G vii ) Certification that public hearing(s) were held in

acco rdance with the information provided in the public notice and the State's laws and constitution, if applicable and consistent with the public hearing requirements in 40 CFR § 60.23; and ( H viii ) Compilation of public comments and the State's response thereto
. ; and ( I ix ) Such other criteria for completeness as may be specified by the Administrator under the applicable emission guidelines. (3) Technical criteria
. In order to be complete, a State plan must contain each of the following technical criteria: ( A i ) Description of the plan approach and geographic scope; ( B ii ) Identification of each affected source, identification of emission standards for the affected sources, and monitoring, recordkeeping and reporting requirements that will determine compliance by e ach affected source; ( C iii ) Identification of compliance schedules and/or increments of progress; ( D iv ) Demonstration that the State plan submittal is projected to achieve emissions performance under the applicable emission guidelines;***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 6 of 447 ( E v ) Documentation o f s tate recordkeeping and reporting requirements to determine the performance of the plan as a whole; and ( F vi ) Demonstration that each emission standard is quantifiable, non

- duplicative, permanent, verifiable, and enforceable. (4) Parallel processing . A S tate may submit a State plan prior to actual adoption by the State in order to expedite review and provide an opportunity for the State to consider EPA comments prior to submission of a final plan for final review and action. Under these circumstances, the following exceptions to the criteria in this paragraph apply to plans submitted explicitly for parallel processing: (A (i ) The letter required by paragraph (g)(2)( A) shall i) of this section must request that EPA propose approval of the proposed plan by pa rallel processing; (B (ii ) In lieu of paragraph (g)(2)( B) ii) of this section the
State shall must submit a schedule for final adoption or issuance of the plan; (C (iii ) In lieu of paragraph (g)(2)( D) iv) of this section the plan shall must include a copy of the proposed/draft regulation or document, including indication of the proposed changes to be made to the existing approved plan, where applicable; and (D***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 7 of 447 (iv ) The requirements of paragraphs (g)(2)(E) through (I) shall of this section do not apply to plans submitted for parallel processing. The exceptions granted in the preceding
sentence shall apply only to EPA’s determination of proposed action and all requirements of paragraph (g)(2) shall of this section must be met prior to publicatio n of EPA’s final determination of plan approvability. (h) Full and partial approval and disapproval. If a portion of the plan revision meets all the applicable requirements of this chapter, the Administrator may approve the plan revision in part and disapp rove the plan revision in part. The Administrator may authorize partial plan submissions in conjunction with a federal plan, where in combination, the federal and State plans constitute a complete and approvable plan meeting all of the requirements of this subpart and the applicable emissions guidelines. (i) Conditional approval . The Administrator may approve a plan or a plan revision based on a commitment of the State, by a date certain established by the Administrator, to adopt specific enforceable measur es, review and revise if appropriate State plans, or otherwise commit to making changes in the State’s plan necessary to meet the requirements of the applicable emission guidelines. Any such conditional approval shall automatically
convert converts to a dis approval if the State fails to comply***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 8 of 447 with such commitment by the date certain established by the Administrator. (j) Calls for plan revisions . Whenever the Administrator finds that the applicable plan is substantially inadequate to meet the requirements o f the applicable emission guidelines, to provide for the implementation of such plan, or to otherwise comply with any requirement of the Clean Air Act, the Administrator shall must require the State to revise the plan as necessary to correct such inadequaci es. The Administrator shall must notify the State of the inadequacies, and may establish reasonable deadlines (not to exceed 18 months after the date of such notice) for the submission of such plan revisions. Such findings and notice shall must be public. An y finding under this paragraph shall, to the extent the Administrator deems appropriate, subject the State to the requirements of this part to which the State was subject when it developed and submitted the plan for which such finding was made, except that the Administrator may adjust any dates applicable under such requirements as appropriate. (k) Error corrections . Whenever the Administrator determines that the Administrator’s action approving, disapproving, or promulgating any plan or plan revision (or portion thereof) was in error, the Administrator may in the same manner as the approval, disapproval, or promulgation revise such***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 9 of 447 action as appropriate without requiring any further submission from the State. Such determination and the basis thereof shall be provided to the State and public.

* * * * * **PART 62 --**  **APPROVAL AND PROMULGATION OF STATE PLANS FOR DESIGNATED**
**FACILITIES AND POLLUTANTS** 3. The authority citation for part 62 continues to read as follows: **Authority:** 42 U.S.C. 7401 et seq . 4. Add subpart MMM to read as follows: **Subpart MMM: Greenhouse Gas Emissions Mass -**  **based Model Trading Rule for Electric Utility Generating Units that Commenced**  **Construction on or Before January 8, 2014**
**Sec. Introduction**  62.16205 What is the purpose of this subpart? **App licability of this Subpart**  62.16210 Am I subject to this subpart? 62.16215 What rules requirements apply to affected EGUs that retire? **General Requirements** 62.16220 What are requirements must I comply with? 62.16225 How should I compute time under the CO2 Mass

- based Trading Program? 62.16230 What are the administrative appeal procedures? 62.16231 How will the Clean Energy Incentive Program be administered under the federal plan?***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 10 of 447 **Emission Goals, Set -**  **Asides, and Allowance Allocations** 62.16235 What are the statewide mass

- based emission goals ? How much is reserved for , renewable energy set

- asides ? , output

based set

- asides, and Clean Energy Incentive Program early action set

- asides? 62.16240 When are allowances allocated? 62.16245 How are set

- aside allowa nces allocated? 62.16250 What is the process for revocation of qualification status of an eligible resource? 62.16255 What is the process for error adjustments or misstatement, and suspension of allowance issuance? **Evaluation Measurement and Verification Plans, Monitoring and**  **Verification Reports, and Verification** 62.16260 What are the requirements for evaluation , measurement and verification plans for eligible resources? 62.16265 W hat are the requirements for monitoring and verification reports for elig ible resources? 62.16270 What are the requirements for verification reports? 62.16275 W hat is the accreditation procedure for independent verifiers? 62.16280 What are the procedures of accredited independent verifiers must follow to avoid conflict of inter est? 62.16285 What is the process for the revocation of accreditation status for an independent verifier? **Designated Representatives** 62.16290 How are designated representatives and alternate designated representatives authorized? What role do authorized designated representatives and alternate designated representatives play? 62.16295 What responsibilities do designated representatives and alternate designated representatives hold? 62.16300 What are the processes for changing designated representatives, alternate designated representatives, owners and operators, and affected EGUs at the facility? 62.16305 What must be included in a certificate of representation? 62.16310 What is the Administrator’s role in objections concerning designated representativ es and alternate designated representatives? 62.16315 What process must designated representatives and alternate designated representatives follow to delegate their authority?***E.O. 12866 Review

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**Monitoring, Recordkeeping, Reporting** 62.16320 How are compliance accounts and general accounts established? 62.16325 When will CO2 allowances be recorded in compliance accounts? 62.16330 How must transfers of CO2 allowances be submitted? 62.16335 When will CO2 allowance transfers be recorded? 62.16340 How will deductions for compl iance with a CO2 emission standard occur? 62.16345 What monitoring requirements must I comply with? 62.16350 May I bank CO2 annual allowances for future use or transfer? 62.16355 How does the Administrator process account errors? 62.16360 What are my re porting, notification and submission requirements? 62.16365 What are my recordkeeping requirements? 62.16370 What actions may the Administrator take on submissions? **Definitions** 62.16375 What definitions apply to this subpart? 62.16380 What measurements, abbreviations, and acronyms apply to this subpart?
**INTRODUCTION §**  **6 2.16205 What is the purpose of this subpart?**  ( a) This subpart sets forth the general, designated representative, allowance, and monitoring provisions requirements for t he Clean Power Plan (CPP) CO 2 Mass

- based Trading Program, under section 111 of the Clean Air Act and §XX.XX subpart UUUU of part 60 of this chapter, as a means of meeting emission guidelines limiting greenhouse gas emissions from an affected steam generatin g unit, integrated gasification combined cycle (IGCC), or stationary combustion turbine.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 12 of 447 (b) The pollutants regulated by this subpart are greenhouse gases. The greenhouse gas limitations in this subpart are in the form of an emission standard for carbon di oxide (CO 2 ). (c) PSD and title V thresholds for greenhouse gases. (1) For the purposes of § 5 1.166(b)(49)(ii) of this chapter, with respect to GHG emissions from affected facilities, the “pollutant that is subject to the standard promulgated under sectio n 111 of the Act” is considered to be the pollutant that otherwise is subject to regulation under the Act as defined in § 5 1.166(b)(48) and in any state implementation plan approved by the EPA that is interpreted to incorporate, or specifically incorporate s, § 5 1.166(b)(48) of this chapter. (2) For the purposes of § 5 2.21(b)(50)(ii) of this chapter, with respect to GHG emissions from affected facilities, the “pollutant that is subject to the standard promulgated under section 111 of the Act” is considered to be the pollutant that otherwise is subject to regulation under the Act as defined in § 5 2.21(b)(49) of this chapter. (3) For the purposes of § 7 0.2 of this chapter, with respect to greenhouse gas emissions from affected facilities, the “pollutant that is subject to any standard promulgated under section 111 of the Act” is considered to be the pollutant that otherwise is "subject to regulation" as defined in § 7 0.2 of this chapter.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 13 of 447 (4) For the purposes of § 7 1.2 of this chapter, with respect to greenhouse gas emissions from affected facilities, the “pollutant that is subject to any standard promulgated under section 111 of the Act” is considered to be the pollutant that otherwise is "subject to regulation" as defined in § 7 1.2 of this chapter.
**APPLICABILITY OF THI S SUBPART** 
**§ §**  **62.16210 Am I subject to this subpart?** (a) You are subject to this subpart if you are the owner or operator an affected electric generating unit ( EGU ) located within a State that has in corporated by reference this subpart as a State plan, or portion of a State plan, that has been approved by the Administrator and is effective under subpart UUUU of part 60 of this chapter, or if this subpart is promulgated and effective as a federal plan in your State under part 62 of this chapter. (b) An affected EGU is any steam generating unit, Integrated Gasification Combined Cycle ( IGCC ), , or stationary combustion turbine that meets the applicability requirements in
§ § § 60.5840(b) and § 60.5845 of this chapter. **§ 6 2.16215 What**  **are the requirements**  **for retired apply to**  **affected EGUs ?**  **that retire??*****E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 14 of 447 (a )( ) Exemption . ( 1) Any affected EGU that is permanently retired pursuant to an enforceable title V operating permit condition shall be as defin ed in § 6 2.16375 is exempt from § § § 6 2.16220(c)(1 )[ ) [ CO 2 Emissions Requirements], § 62.16340 [Compliance Requirements], § 62.16345 [Monitoring], § 62.16360 [Reporting], and § 62.16365 [Recordkeeping]. (2) The exemption under paragraph (a)(1) of this section shall will become effective on the first day of the compliance period immediately following the compliance period in which the retirement took effect. Within 30 days of the affected EGU's permanent retirement, the designated representative shall must submit a statement to the Administrator. The statement shall must state, in a format prescribed by the Administrator, that the affected EGU was permanently retired on a specified date and will comply with the requirements of paragraph (b) of this section. (b) Spec ial provisions
. (1) An affected EGU exempt under paragraph (a) of this section shall must not emit any CO 2 , starting on the date that the exemption takes effect. (2) For a period of five 5 years from the date the records are created, the owners and operators of an affected EGU exempt under paragraph (a) of this section shall must retain, at the facility that includes the unit, records demonstrating that the affected EGU is permanently retired. The five 5

- year period for***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 15 of 447 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 affected EGU is permanently retired. (3) The owners and operators and, to the extent applicable, the designated represen tative of an affected EGU exempt under paragraph (a) of this section shall must comply with the requirements of the CO 2 Mass

- based Trading Program concerning all accruing during any compliance periods for which the exemption is not in effect, even if such re quirements arise, or must be complied with , after the exemption takes effect. **GENERAL REQUIREMENTS**
**§ §**  **6 2.16220**  **What requirements must I comply with?** (a) Designated representative requirements
. The owners and operators shall comply with the requirement to must have a designated representative, and may have an alternate designated representative, in accordance with § § 6 2.16290 through 62.16300. (b) Emissions monitoring, reporting, and recordkeeping requirements
. (1) The owners and operators, and the designat ed representative, of each facility and each affected EGU at the facility shall must comply with the monitoring, reporting, and recordkeeping requirements of § § § 6 2.16345 § 62.16360, and
§ 62.16365.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 16 of 447 (2) The emissions data determined in accordance with § § § 6 2.16345, § 62.16360, and § 62.16365 shall must be used to calculate allocations of CO 2 allowances under § § 6 2.16240(a )(2) ) and (b) and to determine compliance with the CO 2 emission standard under paragraph (c) of this section, provided that, for each monitori ng location from which mass emissions are reported, the mass emissions amount used in calculating such allocations and determining such compliance shall must be the mass emissions amount for the monitoring location determined in accordance with
§§ § 6 2.16345 and rounded to the nearest ton. (c) CO 2 emission standard requirements
. (1) CO 2 emission standard . (i) As of the allowance transfer deadline for a compliance period in a given year, the owners and operators of each facility and each affected EGU at the fa cility with affected EGUs shall must hold, in the facility's compliance account, CO 2 allowances available for deduction for such compliance period under § 6 2.16340(a) in an amount not less than the tons of total CO 2 emissions for such compliance period from all affected EGUs at the facility. (ii) If total CO 2 emissions during a compliance period in a given year from the affected EGUs at a facility are in excess of the CO 2 emission standard set forth in paragraph (c)(1)(i) of this section, then:***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 17 of 447 (A) The owner s and operators of the facility and each affected EGU at the facility shall must hold the CO 2 allowances required for deduction under § 6 2.16340(d); and (B) The owners and operators of the facility and each affected EGU at the facility are subject to federal enforcement pursuant to sections 113(a)

– through (h), and section 304, of the CAA Clean Air Act , and the United States, States, and other persons have the ability to enforce against violations (including if an affected EGU does not meet its emission standard based on its allowances) and secure appropriate corrective actions, and shall must pay any fine, penalty, or assessment or comply with any other reme dy imposed, for the same violations, under the Clean Air Act, and each ton of such excess emissions and each day of such compliance period shall will constitute a separate violation of this subpart and the Clean Air Act. (2) Compliance periods
. (i) An affec ted EGU shall will be subject to the requirements under paragraph (c)(1) of this section for the compliance period starting on January 1, 2022 and for each compliance period thereafter. (ii) [Reserved] (3) Vintage of allowances held for compliance . (i) A CO 2 allowance held for compliance with the requirements under paragraph (c)(1)(i) of this section for a compliance period must***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 18 of 447 be a CO 2 allowance that was allocated for a year in such compliance period or for a year in a prior compliance period. (ii) A CO 2 a llowance held for compliance with the requirements under paragraphs paragraph (c)(1)(ii)(A) of this section for a compliance period must be a CO 2 allowance that was allocated for a year in a prior compliance period, or the
current compliance period, or in the immediately following compliance period. (4) Allowance Tracking and Compliance System (ATCS) requirements . Each CO 2 allowance shall must be held in, deducted from, or transferred into, out of, or between ATCS accounts in accordance with this subpart. (5) Limited authorization . A CO 2 allowance is a limited authorization to emit one ton of CO 2 during the compliance period in one year. Such authorization is limited in its use and duration as follows: (i) Such authorization shall must only be used in accord ance with the CO 2 Mass

- based 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 n ecessary or appropriate to implement any provision of the Clean Air Act.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 19 of 447 (6) Property right . A CO 2 allowance does not constitute a property right. (d) Title V permit requirements
. (1) Unless otherwise specified in this paragraph, all requirements of this s ubpart shall be are applicable requirements that must be included in an affected EGU’s title V permit. (2) The applicable requirements of this subpart, as well as other terms or conditions necessary to ensure compliance with the applicable requirements, may be added to, or changed in, a title V permit using minor permit modification procedures in accordance with § § 7 0.7(e)(2) and 71.7(e)(1) of this chapter, provided that such changes do not conflict with any existing terms of the permit. This paragraph expli citly provides that the addition of, or change to, an affected EGU's description as described in the prior sentence is eligible for minor permit modification procedures in accordance with § § 7 0.7(e)(2)(i)(B) and 71.7(e)(1)(i)(B) of this chapter. (3) No tit le V permit revision shall will be required for any allocation, holding, deduction, or transfer of CO 2 allowances in accordance with this subpart, provided that the requirements applicable to such allocations, holdings, deductions, or transfers of CO 2 allow ances are already incorporated in such permit.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 20 of 447 (e) Liability
. (1) Any provision of the CO 2 Mass

- based Trading Program that applies to an affected EGU at a facility or the designated representative of affected EGUs at a facility shall will also apply to the owners and operators of such facility and of the affected EGUs at the facility. (2) Any provision of the CO 2 Mass

- based Trading Program that applies to an affected EGU or the designated representative of an affected EGU shall will also apply to the owners and operators of such affected EGU. (f) Effect on other authorities
. No provision of the CO 2 Mass

- based Trading Program or exemption under § 6 2.16215 shall be construed as exempting or excluding the owners and operators, and the d esignated representative, of an affected EGU from compliance with any other provision of the applicable, approved state implementation plan, a federally enforceable permit, or any other requirement of the Clean Air Act. **§ §**  **§ 6**  **2.16225 How should I compute ti me under the CO**  **2 Mass**  **- based**  **Trading Program?** (a) Unless otherwise stated, any time period scheduled, under the CO 2 Mass

- Based Trading Program, to begin on the occurrence of an act or event shall will begin on the day the act
or event occurs. (b) Unless ot herwise stated, any time period scheduled, under the CO 2 Mass

- Based Trading Program, to begin before the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 21 of 447 occurrence of an act or event shall will 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 CO 2 Mass

- Based Trading Program, is not a business day, then the time period shall will be extended to the next business day. **§ §**  **§ 62.16230 What are the administrative appeal procedures?**  The administrative appeal procedures for decisions of the Administrator under the CO 2 Mass

- Based Trading Program are set forth in part 78 of this chapter. **§ 62.16231 How will the Clean Energy Incentive Program be administered under the federal plan?**  (a) The Administrator will parti cipate in the Clean Energy Incentive Program, established under subpart UUUU of part 60 of this chapter, on behalf of any state for which this subpart is promulgated as a federal plan under section 111(d) of the C lean
A ir A ct . The Administrator will award, on behalf of each such state, early action allowances for generation and savings achieved in 2020 and /or 2021 that result from the following types of eligible renewable energy (RE)) and demand

- side energy efficiency (EE) projects: (1) Metered wind power; (2) Metered solar power; and (3) Demand

- side EE implemented in a low

- income community.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 22 of 447 Eligible RE projects must commence construction, and eligible demand

- side EE projects must commence implementation after September 6, 2018 for those states on whose beha lf the EPA is implementing the federal plan. Eligible projects must be located in or benefit the state on whose behalf the EPA is implementing the federal plan. (b) Early action allowances will be distributed pursuant to a process to be prescribed by the A dministrator, from an allowance set

- aside equal to 300 million allowances for all states. This set

- aside does not increase the total budget of allowances for the affected EGUs in the state subject to this subpart. (c) The Administrator will match these ea rly action allowances with additional matching allowances pursuant to a process to be prescribed by the Administrator. Matching awards will be made up to a limit equivalent to the state’s pro rata share of 300 million short tons of CO 2 emissions. (d) The awards, including the matching award, will be executed as follows: (1) For RE projects that generate metered MWh from wind or solar resources: for every two MWh generated, the project will receive a number of early action allowances the Administrator deter mines to be equivalent to one MWh from the set

- aside under paragraph (b) of this section and a number of matching***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 23 of 447 allowances the Administrator determines to be equivalent to one MWh from the match under paragraph (c) of this section. (2) For EE projects implemented in low

- income communities as determined by the Administrator solely for purposes of this subpart: for every two MWh in end

- use demand savings achieved, the project will receive a number of early action allowances the Administrator determines to be equivalent to two MWh from the
set

- aside under paragraph (b) of this section and a number of matching allowances the Administrator determines to be equivalent to two MWh from the match under paragraph (c) of this section. **EMISSION GOALS, SET -**  **ASIDES, AN D ALLOWANCE ALLOCATI**  **ONS**
**§ §**  **62.16235 What are the statewide mass -**  **based emission goals, renewable energy set**  **- asides,**  **and output**  **- based set**  **- asides**  **, and Clean Energy Incentive Program early action set**  **- asides**  **?** (a) The statewide mass

- based emission goals with re newable energy set

- asides and output

- based set

- asides for allocations of
CO 2 allowances for the interim three 3

- and two 2

- year compliance periods in 2022 through 2029, and the final two 2

- year compliance periods in 2030 and thereafter are as follows: specified in Table 1 of this subpart. Table

**___** 1 to Subpart MMM of Part 62

-- Statewide Mass

- based Emission Goals ***** **(** ***( short tons)** ***E.O. 12866 Review

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Interim Period P

State Compliance Period 1 2022

- 2024 Compliance Period 2 2025

- 2027 Compliance Period 3 2028

- 2029 c
p

a Alabama 66,164,470 60,918,973 58,215,989 Arizona 36,032,671 32,953,521 31,253,744 Arkansas 35,189,232 32,371,942 30,906,226 California 53,500,107 50,080,840 48,736,877 Colorado 35,785,322 32,654,483 30,891,824 Connecticut 7,555,787 7,108,466 6,955,080 Delaware 5,348,363 4,963,102 4,784,280 Florida 119,380,477 110,754,683 106,736,177 Georgia 54,257,931 49,855,082 47,534,817 Idaho 30,408,352 27,615,429 25,981,975 Illinois 1,615,518 1,522,826 1,493,052 Indiana 80,396,108 73,124,936 68,921,937
Iowa 92,010,787 83,700,336 78,901,574
Kansas 26,763,719 24,295,773 22,848,095 Kentucky 76,757,356 69,698,851 65,566,898***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 25 of 447 Lands of the Fort Mojave Tribe 636,876 600,334 588,596

Lands of the Navajo Nation 26,449,393 23,999,556 22,557,749

Lands of the Uintah and Ouray Reservation 2,758,744 2,503,220 2,352,835

Louisiana 42,035,202 38,461,163 36,496,707 Maine 13,360,735 12,511,985 12,181,628 Maryland 17,447,354 15,842,485 14,902,826 Massachusetts 2,251,173 2,119,865 2,076,179 Michigan 56,854,256 51,893,556 49,106,884 Minnesota 27,303,150 24,868,570 23,476,788 Mississippi 67,312,915 61,158,279 57,570,942 Missouri 28,940,675 26,790,683 25,756,215
Montana 13,776,601 12,500,563 11,749,574 Nebraska 60,975,831 55,749,239 52,856,495 Nevada 25,453,173 23,095,610 21,708,108 New Hampshire 22,246,365 20,192,820 18,987,285 New Jersey 4,461,569 4,162,981 4,037,142
New Mexico 18,241,502 17,107,548 16,681,949 New York 14,789,981 13,514,670 12,805,266***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 26 of 447 North Carolina 15,076,534 14,072,636 13,652,612

North Dakota 35,493,488 32,932,763 31,741,940 Ohio 88,512,313 80,704,944 76,280,168 Oklahoma 47,577,611 43,665,021 41,577,379 Oregon 9,097,720 8,477,658 8,209,589 Pennsylvania 106,082,757 97,204,723 92,392,088 Rhode Island 3,811,632 3,592,937 3,522,686 South Carolina 31,025,518 28,336,836 26,834,962

South Dakota 4,231,184 3,862,401 3,655,422
Tennessee 34,118,301 31,079,178 29,343,221
Texas 221,613,296 203,728,060 194,351,330 Utah 28,479,805 25,981,970 24,572,858 Virginia 31,290,209 28,990,999 27,898,475 Washington 12,395,697 11,441,137 10,963,576 West Virginia 33,505,657 30,571,326 28,917,949 Wisconsin 62,557,024 56,762,771 53,352,666 Wyoming 38,528,498 34,967,826 32,875,725 * The values in this table are annual amounts; the mass goal for eac compliance period is the annual value multiplied by the number of years i compliance period. Each emission goal includes the renewable e nergy set

- a output

- based set

- asides (the output

- based set

- asides are zero in the firs***E.O. 12866 Review

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(b) If implementing interstate trading, then the Administrator will use the sum of a covered group of States’

mass - based emission goals as the aggregate mass

- based emission goal. (c) The renewable energy set

- aside for each State covered by the federal mass

- based emissions trading plan s hall must

reserve five 5 percent from the State’s annual allowances prior to allocation of that year’s allowances to facilities. The renewable energy set

- asides are as follows: specified in Table 2 of this subpart.
**Table**

**___ 2 to Subpart MMM of Part 62**  **-- Stat**  **ewide Renewable Energy Set**  **- aside**  (short tons) period).The first compliance period goals also include the early action C Incentive Program set

- aside.

Interim Period Final Period

State Compli ance Period
1 2022

- 2024 Compli ance Period
2 2025

- 2027 Compli ance Period 3 2028

- 2029 Final compliance periods 2030

- 2031***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 28 of 447 and thereafter Alabama 3,308, 224 3,045, 949 2,910, 799 2,844 ,024 Arizona 1,759, 462 1,618, 597 1,545, 311 1,508 ,538 Arkansas 1,801, 634 1,647, 676 1,562, 687 1,516 ,132 Californ ia 2,675, 005 2,504, 042 2,436, 844 2,420 ,506 Colorado 1,789, 266 1,632, 724 1,544, 591 1,495 ,020 Connecti
cut 377,78 9 355,42 3 347,75 4 347,0 76 Delaware 267,41 8 248,15 5 239,21 4 235,5 91 Florida 5,969, 024 5,537, 734 5,336, 809 5,254 ,735 Georgia 2,712, 897 2,492, 754 2,376, 741 2,317 ,342 Idaho 80,776 76,141 74,653 74,64 3***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 29 of 447 Illinois 4,019, 805 3,656, 247 3,446, 097 3,323 ,858 Indiana 4,600, 539 4,185, 017 3,945, 079 3,805 ,692
Iowa 1,520, 418 1,380, 771 1,299, 099 1,250 ,907
Kansas 1,338, 186 1,214, 789 1,142, 405 1,099 ,541 Kentucky 3,837, 868 3,484, 943 3,278, 345 3,156 ,306 Lands of the Fort Mojave Tribe 31,844 30,017 29,430 29,42 6

Lands of the Navajo Nation 1,322, 470 1,199, 978 1,127, 887 1,085 ,029

Lands of the Uintah and Ouray Reservation 137,93
7 125,16 1 117,64 2 113,1 72

Louisian

a 2,101, 760 1,923, 058 1,824, 835 1,771 ,351***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 30 of 447 Maine 112,55 9 105,99 3 103,80 9 103,6 97 Maryland 872,36 8 792,12 4 745,14 1 717,3 81 Massachu
setts 668,03
7 625,59 9 609,08 1 605,2 37 Michigan 2,842, 713 2,594, 678 2,455, 344 2,377 ,203 Minnesot

a 1,365, 158 1,243, 429 1,173, 839 1,133 ,918 Mississi ppi 1,447, 034 1,339, 534 1,287, 811 1,265 ,217 Missouri 3,365, 646 3,057, 914 2,878, 547 2,773 ,144
Montana 688,83 0 625,02 8 587,47 9 565,1 55 Nebraska 1,112, 318 1,009, 641 949,36 4 913,6 37 Nevada 753,82
7 703,63 2 682,63 1 676,1 79
New Hampshire 223,07 8 208,14 9 201,85
7 199,8 79***E.O. 12866 Review

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New Jersey 912,07 5 855,37
7 834,09
7 829,9 87
New Mexico 739,49 9 675,73 4 640,26 3 620,6 30 New York 1,774, 674 1,646, 638 1,587, 097 1,562 ,871 North Carolina 3,048, 792 2,787, 462 2,642, 825 2,563 ,312 North Dakota 1,272, 659 1,154, 781 1,085, 405 1,044 ,162 Ohio 4,425, 616 4,035, 247 3,814, 008 3,688 ,490 Oklahoma 2,378, 881 2,183, 251 2,078, 869 2,024 ,410 Oregon 454,88 6 423,88 3 410,47 9 405,9 33 Pennsylv ania 5,304, 138 4,860, 236 4,619, 604 4,491 ,115 Rhode Island 190,58 2 179,64
7 176,13 4 176,1 11 South Carolina 1,551, 276 1,416, 842 1,341, 748 1,299 ,948***E.O. 12866 Review

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( d ) The output

- based set

- aside for each State under this subpart, beginning in compliance period 2, shall must reserve a share of the State’s annual allowances prior to allocation of that year’s allowances to facilities as set forth in this South Dakota 211,55 9 193,12 0 182,77 1 176,9 74
Tennesse

e 1,705, 915 1,553, 959 1,467, 161 1,417 ,420
Texas 11,080 ,665 10,186 ,403 9,717, 567 9,479 ,442 Utah 1,423, 990 1,299, 099 1,228, 643 1,188 ,910 Virginia 1,564, 510 1,449, 550 1,394, 924 1,371 ,656 Washingt

on 619,78 5 572,05
7 548,17 9 536,9 59
West Virginia 3,127, 851 2,838, 139 2,667, 633 2,566 ,267 Wisconsi

n 1,675, 283 1,528, 566 1,445, 897 1,399 ,349 Wyoming 1,926, 425 1,748, 391 1,643, 786 1,581 ,721***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 33 of 447 paragraph
. (2) (d). The output

- based set

- asides are as follows: specified in Table 3 of this subpart.
**Table &&&.**  **3 to Subp art MMM of Part 62**  **-- .**  **Statewide Output -**  **based Set**  **- aside**  **(short tons)**

State Allowances in Output

- based Set

- aside (short tons) Alabama 4,185,496 Arizona 4,197,813 Arkansas 2,102,538 California 8,458,604 Colorado 1,348,187 Connecticut 1,090,811 Delaware 649,190 Florida 12,102,688 Georgia 3,563,104 Idaho 246,638 Illinois 1,598,615 Indiana 1,106,150 Iowa 492,510 Kansas 62,257 Kentucky 288,730 Lands of the Fort Mojave Tribe 248,127 Lands of the Navajo Nation 0 Lands of the Uintah and Ouray Reservation 0 Louisiana 2,207,879 Maine 563,925 Maryland 103,762 Massachusetts 2,439,991 Michigan 2,105,786 Minnesota 909,724 Mississippi 3,132,671 Missouri 815,210 Montana 0 Nebraska 144,635 Nevada 2,326,529 New Hampshire 542,721 New Jersey 3,413,100 New Mexico 627,085 New York 3,815,381 North Carolina 2,120,178 North Dakota 0 Ohio 1,757,326 Oklahoma 3,121,167***E.O. 12866 Review

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Oregon 1,291,027 Pennsylvania 4,392,931 Rhode Island 778,307 South Carolina 1,029,366 South Dakota 130,831 Tennessee 632,949 Texas 15,990,657 Utah 825,586 Virginia 3,011,811 Washington 1,383,060 West Virginia 0 Wisconsin 1,181,175 Wyoming 45,114 (e)(1) The Clean Energy Investment Program Set

- Aside for each State covered under this subpart shall must contain an amount of allowances equal to the state’s pro rata shown in Table 4 of this subpart , which must reserve a share of 300 million the State’s annual allowances prior to allocation of that year’s allowances to facilities as set forth in this paragraph.
**Table 4 to Subpart MMM of Part 62**  **-- . Clean Energy Investment**  **Program Early Action Set -**  **Aside (short**  **tons of CO**  **2 , which shall be**  **drawn from the mass budget for the first compliance period of all of the affected EGUs in a state on a unit**  **- by**  **- unit pro rata**  **basis. )** 

**Stat e**  **Allowances in Early Action Set -**  **aside (short tons)**  Alabama 3,122,306 Arizona 1,719,618 Arkansas 2,187,230 California 218,846 Colorado 2,223,192 Connecticut 69,415 Delaware 138,392 Florida 3,230,248 Georgia 2,755,623 Idaho 14,929 Illinois 5,968,721 Indiana 5,754,076 Iowa 2,191,183***E.O. 12866 Review

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Kansas 2,115,630 Kentucky 4,952,862 Lands of the Fort Mojave Tribe 5,885 Lands of the Navajo Nation 1,623,066 Lands of the Uintah and Ouray Reservation 175,509 Louisiana 1,497,428 Maine 20,739 Maryland 972,775 Massachusetts 170,471 Michigan 3,727,861 Minnesota 2,002,903 Mississippi 357,307 Missouri 3,771,322 Montana 1,310,344 Nebraska 1,481,695 Nevada 336,288 New Hampshire 107,798 New Jersey 446,005 New Mexico 823,049 New York 557,771 North Carolina 2,674,590 North Dakota 2,150,635 Ohio 4,788,372 Oklahoma 2,067,006 Oregon 154,353 Pennsylvania 5,039,346 Rhode Island 35,674 South Carolina 1,652,802 South Dakota 264,207 Tennessee 2,178,084 Texas 10,400,192 Utah 1,401,189 Virginia 1,386,546 Washington 751,434 West Virginia 3,506,890 Wisconsin 2,393,870 Wyoming 3,104,324 (2) Allowances may be distributed from the set

- aside for projects meeting the criteria of subparagraph (3), paragraph (e)(3) of this section, upon application of a project proponent that meets the requirements of 62.16245(a), except as may be***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 36 of 447 prescribed by the Administrator in a future action. In order to receive a distribution, the project proponent must establish a general account in the trac king system as provided in 62.16320(c). (3) Projects eligible for distribution of allowances from this set

- aside must meet each of the following criteria: criteria in paragraphs (e)(3)(i) through (iii) of this section. All categories of resources other tha n those listed in paragraphs (e)(3)(iii)(A) and (B) of this section, and all provisions of this subpart relating to such resources, are not available or applicable in States where this subpart has been promulgated as a federal plan pursuant to section 111( d)(2) of the Clean Air
Act. (i) The project was constructed or implemented on or after the signature date of the final rule promulgating subpart UUUU of part 60 of this chapter; (ii) The creditable generation or energy savings from the project must occur in calendar years 2020 or 2021; and (iii) Generation or energy savings must be from one of the following types of sources capable of revenue

- quality metering: (A) Onshore wind; ( B) Solar; or (C) Demand

- side EE
. Note to paragraph (e)(3): All categories of resources other***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 37 of 447 than those listed in paragraphs (e)(3)(iii)(A) and (B), and all provisions of this subpart relating to such resources, are not available or applicable in states where this subpart has been promulgated as a federal plan pursuant to section 111(d)(2) of the Act. **§ §**  **6 2.16240**  **When are allowances allocated?** (a) Allowance allocations **.** (1) By June 1, 2021, and by June 1 of each year prior to the beginning of each complia nce period thereafter, CO 2 allowances will be allocated, for the multi

- year compliance periods in the Interim Period beginning in 2022 and the Final Period beginning in 2030, as provided by the Administrator
. in a notice of data availability or through thi s subpart (if applicable). Providing an allocation to an entity in such notice does not constitute a as an applicability determination that the entity is an affected EGU, and not providing an allocation to an entity in such notice does not constitute a determination that the entity is not of an affected
EGU. (2) Notwithstanding paragraph (a)(1) of this section, if an affected EGU which is provided an allocation does not operate for two 2 consecutive calendar years, then such affected EGU will not be alloc ated the CO 2 allowances provided by the Administrator in such a notice of data availability or through this subpart (if applicable) for the affected EGU for the next compliance period***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 38 of 447 for which allowances have not yet been recorded and for each compliance p eriod after that compliance period. All CO 2 allowances that would otherwise have been allocated to such affected EGU will be allocated to the renewable energy set

- aside for the State where such affected EGU is located and for the respective compliance peri ods involved. (3) Notwithstanding paragraph (a)(1) of this section, if an affected EGU provided an allocation issued by the Administrator in the notice of data availability issued by the Administrator or through this subpart (if applicable) is modified or reconstructed such that it is no longer subject to this subpart, then such affected EGU will not be allocated the CO 2 allowances provided for the affected EGU for the next compliance period for which allowances have not yet been recorded and for each compl iance period after that compliance period. All CO 2 allowances that would otherwise have been allocated to such affected EGU will be allocated to the renewable energy set

- aside for the State where such affected EGU is located and for the respective complian ce periods involved. (b) Set

- asides
. (1) Renewable energy set

- asides. (i) By December 1, 2021 and December 1 of each year thereafter, the Administrator will calculate and allocate the CO 2 allowance allocation to each approved Renewal Energy project in a S tate, in accordance with § 6 2.16245(a)(2) through ( 6 5 ), for the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 39 of 447 generation year of the applicable calculation deadline under this paragraph. (ii) By December 1, 2021 and December 1 of each year thereafter, the Administrator will calculate and allocate the CO 2 allowance allocation to each affected EGU in a State, in accordance with § 6 2.16245(a)( 7 6 ) and ( 8 7 ) for the generation year of the applicable calculation, and will promulgate a notice of data availability of the results of the calculations. (2) Output

- based set

- asides
. (i) By November 1 of the first year of each compliance period beginning in 2025, and each compliance period thereafter, the Administrator will calculate and allocate the CO 2 allowance allocation to each eligible affected EGU in a St ate, in accordance with § 6 2.16245(b)(3), for the generation period of the applicable calculation deadline under this paragraph. (ii) By November 1 of the first year of each compliance period beginning in 2025, and each compliance period thereafter, the Ad ministrator will calculate and allocate the CO 2 allowance allocation to each affected EGU in a State, in accordance with § 6 2.16245(b)(4) and (5) for the generation period of the applicable calculation, and will promulgate a notice of data availability of the results of the calculations. (c) Affected EGUs incorrectly allocated CO 2 Allowances.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 40 of 447 allowances
. (1) For each compliance period in 2022 and thereafter, if the Administrator determines that CO 2 allowances were allocated under paragraph (a) of this section, or under a provision of a state allowance distribution methodology approved under subpart UUUU of part 60 of this chapter, where such compliance period and the recipient are covered by the
pro visions of paragraph (c)(1)(i) of this section or were allocated under § 6 2.16245(a) and (b), where such compliance period and the recipient are covered by the provisions of paragraph (c)(1)(ii) of this section, then the Administrator will notify the desig nated representative of the recipient and will act in accordance with the procedures set forth in paragraphs (c)(2) through (5) of this section . The situations for the Administrator to act according to the procedures in paragraphs (c)(2) through (5) are if : (i)(A) The recipient is not actually an affected EGU under § 6 2.16210 as of January 1, 2022 and is allocated CO 2 allowances for such compliance period or, in the case of an allocation under a provision of a state allowance distribution methodology
approv ed under subpart UUUU of part 60 of this chapter, the recipient is not actually an affected EGU as of January 1, 2022 and is allocated CO 2 allowances for such compliance period that the state allowance distribution methodology provides should be***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 41 of 447 allocated only to recipients that are affected EGUs as of January 1, 2022; or (B) The recipient is not located as of January 1 of the compliance period in the State from whose CO 2 allowances the CO 2 allowances allocated under paragraph (a) of this section, or under a provision of a s tate allowance distribution methodology approved under subpart UUUU of part 60 of this chapter, were allocated for such compliance period. (ii) The recipient is not actually an affected EGU under § 6 2.16210 as of January 1 of such complia nce period and is allocated CO 2 allowances for such compliance period or, in the case of an allocation under a provision of a s tate allowance distribution methodology approved under subpart UUUU of part 60 of this chapter, the recipient is not actually an affected EGU as of January 1 of such compliance period and is allocated CO 2 allowances for such compliance period that the a s tate allowance distribution methodology provides should be allocated only to recipients that are affected EGUs as of January 1 of such compliance period. (2) Except as provided in paragraph (c)(3) or (4) of this section, the Administrator will not record such CO 2 allowances under § 6 2.16325. (3) If the Administrator already recorded such CO 2 allowances under § 6 2.16325 and if the Adm inistrator makes the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 42 of 447 determination under paragraph (c)(1) of this section before making deductions for the facility that includes such recipient under § 6 2.16340(b) for such compliance period, then the Administrator will deduct from the account in which su ch CO 2 allowances were recorded an amount of CO 2 allowances allocated for the same or a prior compliance period equal to the amount of such already

- recorded CO 2 allowances. The authorized account representative shall must ensure that there are sufficient CO 2 allowances in such account for completion of the deduction. (4) If the Administrator already recorded such CO 2 allowances under § 6 2.16325 and if the Administrator makes the determination under paragraph (c)(1) of this section after making deductions for the facility that includes such recipient under § 6 2.16340(b) for such compliance period, then the Administrator will not make any deduction to take account of such already

- recorded CO 2 allowances. (5)(i) With regard to the CO 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 CO 2 allowa nces to the renewable energy
set

- aside for such compliance period for the State from whose CO 2 allowances the CO 2 allowances were allocated; or***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 43 of 447 (B) If the State has a state allowance distribution methodology approved under subpart UUUU of part 60 of this

c hapter covering such compliance period, then include such CO 2 allowances in the portion of the CO 2 allowances that may be allocated for such compliance period in accordance with such state allowance distribution methodology. (ii) With regard to the CO 2 allowances that were not allocated from a renewable energy or output

- based set

- aside for such compliance period and that are not recorded, or that are deducted as an incorrect allocation, in accordance with paragraphs (c)( 1 2 ) and ( 2 3 ) of this section for a recipient under paragraph (c)(1)(ii) of this paragraph section , the Administrator will: (A) Transfer such CO 2 allowances to the renewable energy
set

- aside for such compliance period; or (B) If the State has a state allowance distribution methodology approv ed under subpart UUUU of part 60 of this chapter covering such compliance period, then include such CO 2 allowances in the portion of the CO 2 allowances that may be allocated for such compliance period in accordance with such state allowance distribution me thodology. (iii) With regard to the CO 2 allowances that were allocated from the renewable energy or output

- based set

- aside for such compliance period and that are not recorded, or that are***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 44 of 447 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 section , the Administrator will transfer such CO 2 allowances that were from the renewable energy set

- aside back to the renewable energy set

- aside, or that were from t he output based set

- aside to the output

- based set

aside , respectively , for such compliance period. **§ 6 2.16245 How are set**  **- aside allowances allocated?**  (a)(1) Renewable energy set

- aside . The Administrator will establish a renewable energy set

- aside as set fo rth in § 6 2.16235(c), and allocate CO 2 allowances from the set

- aside for each State and each year of a control compliance period as outlined in this section. (2) Eligible renewable energy capacity
. To be eligible to receive renewable energy set

- aside allowances, an eligible

resource that must meet each of the requirements in paragraphs ( a)(2)( i) through (v) of this section : . Any resource that does not meet the requirements of paragraphs (a)(2)(i) th rough (v) of this section cannot receive set

- aside allowances. (i) The resource must be a renewable energy resource that falls into one of the following categories of resources: on

shore utility scale wind, utility scale solar, concentrated solar power sola r , geothermal power, or utility scale hydropower.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 45 of 447 (ii) The resources must only include resources which increased new installed electrical generation nameplate capacity, or new electrical savings measures installed or implemented after January 1, 2013. If a resource had a nameplate capacity uprate, then set

- aside allowances may be issued only for the difference in generation between the uprated nameplate capacity and its nameplate capacity prior to the uprate. Set

aside allowances must not be issued for gene ration for an uprate that followed a derate that occurred on after January 1, 2013. A resource that is relicensed or receives a license extension is considered existing capacity and is not an eligible resources, unless it receives a capacity uprate as a re sult of the relicensing process that is reflected in its relicensed permit. In such a case, only difference in nameplate capacity between its relicensed permit and its prior permit is eligible to be issued set

- aside allowances. (iii) The resource must be located in the mass

- based State for which the set

- aside has been designated. (iv) The resource must be connected to, and delivers energy to or saves electricity, on the electric grid in the contiguous United States. (v) The resource must not have received emission rate credits ( ERCs ) for any period of time for which it receives set

aside allowances.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 46 of 447 (vi) Any resource that does not meet the requirements of this subpart cannot receive set

- aside allowances. (3) Process for issuance of set

- aside allowances
. The process and requirements for issuance of set

- aside allowances are set forth in paragraphs ( a)(3)( i) through (x ). ) of this section. (i) Eligibility application. To receive set

- aside allowances, an authorized account representative of an eligible resource must submit an eligibility application to the Administrator that demonstrates that the requirements of §62.16245 paragraph (a)(2) of t his section are met and, demonstrates that the following requirements are met: (A) Identification of the authorized account representative of the eligible resource, including the authorized account representative’s name, address, e

- mail address, telephone number, and allowance tracking system account number
. ; and (B) Identification of the eligible resource(s), including the physical location of the electric generating eligible resource; contact information for the owner or operator of the electric generating eligible resource, if different from the authorized account representative and designated representative; generator prime mover and technology type; generator nameplate capacity ; (if applicable); generator category (e.g., wholesale generator, wholesale gen erator also serving onsite customer***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 47 of 447 load, customer

- sited distributed generator ) (if applicable ); facility and generating unit IDs (EIA ORIS Code, Facility Registration System (FRS) Code, if applicable ) (if applicable ); the control area, balancing authority , ISO , conditions as defined in § 62.16375 (if applicable), or RTO regional transmission organization in which the generator is located ; (if applicable); and a copy of the most recent filing of a copy of the generating facility’s U.S. Energy Information Age ncy’s Annual Electric Generator Report Form EIA

- 860
. (if applicable). (ii) Renewable energy providers must open a general account per the requirements in § 6 2. 16305 16320 (c), and submit a project application for renewable energy set

- aside allowances to the Administrator by June 1 of the year prior to the generation year for which set

- aside allowances are requested. Providers may update submitted projections for future generation years, these projections must be received by June 1 of the year prior to the
ge neration year in question. The project application shall must contain the following information: (iii (A ) Projection of the project’s annual renewable energy generation in MWh. ( iv B ) Documentation of the methodology, data facilities, and assumptions used to project the project’s annual renewable energy generation.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 48 of 447 ( v C ) A certification that the eligibility application has only been submitted to the Administrator or pursuant to an EPA

approved multi

- State approach where States are providing for joint issuance of allowances pursuant to the authority in their individual State plans. ( vi) An D) A evaluation, measurement, and verification ( EM&V ) plan. ( vii E ) A verification report from an accredited independent verifier who meets the requirements of § 6 2.16275 and § 6 2.16280. While considered a part of the eligibility application, the verification report must be submitted separately by the accredited independent verifier to the Administrator. ( viii F ) An authorization that provides for the following: the Administrato r may inspect (including a physical inspection of the eligible resource and its meter) and/or audit the eligible resource at any time and verify that the eligible resource and the EM&V plan have been implemented as described in the eligibility application. ( ix G ) The following statement, signed by the authorized account representative of the eligible resource: (1) “ 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 49 of 447 personal knowledge and/or 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
. .” ( x 2) [Reserved] (H ) Any other information required by the Administrator. (4) Deficient Applications. An application is deficient and will be returned by the Administrator if it fails to meet the requirements set forth in (a)(3) of this section. A revised application that is submitted after being r eturned for failure to meet the requirements of this subpart must be submitted by DD/MM of the year prior to the generation year for which set

aside allowances are requested. (5 (4 ) Monitoring and verification
. After the generation year for which a provider received set

- aside allowances for an eligible resource, the authorized account representative must submit to the Administrator: (i) an A measurement and verification ( M&V ) report. (ii) A verification report from an accredited independent verifier that me ets the requirements of § 6 2.16275 and §***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 50 of 447 6 2.16280. While considered a part of the M&V report, the verification report must be submitted separately by the accredited independent verifier to the Administrator. ( 6 5 ) Allocation of Renewable Energy Set

- Aside Al lowances
. The Administrator will enter the projected generation from each approved project into a pool of projects for that State that will receive set

- asides for a generation year. (i) The Administrator will distribute state renewable energy set

- aside all owances for a generation year pro - rata, with the number of allowances distributed to each project prorated according to the its percentage of the total approved projected MWhs for that State that the project represents. (ii) If in the previous generation ye ar, the project did not reach the MWhs projected, then the unfulfilled MWhs will be subtracted from that provider’s projected generation eligible for the set

- aside pool. (iii) If the unfulfilled MWhs from a previous year exceed the projected hours for the generation year, then the Administrator will carry over the deficit and subtract from the projected generation in subsequent years until there is no deficit. If this deficit is greater than 10 percent in a particular year, then the provider will need to pr ovide an explanation to the Administrator of the deficit, and will be required to reevaluate their projections for future years. If***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 51 of 447 such deficits continue through all three 3 years of the first or second compliance period, then the Administrator will disqua lify the provider from receiving future set

- asides for the following compliance period. ( 7 6 ) Surplus renewable set

- aside allowances
. If, after completion of the procedures under paragraph (a)( 7) 5 ) of this section for each compliance period, any unallocated CO 2 allowances remain in the renewable energy set

- aside for the State for such generation year, the Administrator will allocate the amount of CO 2 allowances in a pro rata fashion on the same distrib ution basis as their initial allocations were made to each affected EGU that: is in the State; is allocated an amount of CO 2 allowances in the notice of data availability issued under § 6 2.16240(a)(1); and continues to be allocated CO 2 allowances for such control compliance period in accordance with § 6 2.16240(a)(2). ( 8 7 ) Notice of surplus renewable energy set

- aside allowance distribution
. The Administrator will make publicly, public the amount of CO 2 allowances allocated under paragraph (a)( 7 6 ) of this sect ion for such generation year period to each affected EGU eligible for such allocation. (b)(1) Output

- based set

- aside
. The Administrator will establish an output

- based set

- aside beginning in compliance period 2, and allocate CO 2 allowances from the set

- aside for each***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 52 of 447 State and each year of a compliance period as set forth in § 6 2.16235(c). (2) Unit eligibility . To be eligible to receive output

based set

- aside allowances, affected EGUs must meet the following eligibility requireme nts: (i) The affected EGU must be a natural gas combined cycle unit
. ; (ii) The affected EGU must be located in the mass

- based State for which the set

- aside has been designated
. ; and (iii) The affected EGU’s average capacity factor in the preceding complia nce period was above 50 percent based on net summer capacity and net generation. (3) Allocation of output

- based set

- aside allowances . The Administrator will allocate output based set

- aside allowances for each eligible EGU based on its average net generatio n and net summer capacity in the preceding compliance period. (i) The Administrator will calculate the amount of allowances an eligible EGU receives from the output

- based set

aside as the unit’s average net generation in the preceding compliance period ov er 50 percent multiplied by the allocation rate of 1,030 lb/MWh

- net. (ii) If the amount of total allowances exceeds the size of the State’s set

- aside, then the allowances will be allocated to the State’s eligible generation on a pro

- rata basis.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 53 of 447 (iii) The Administrator will provide notice of the net summer capacity and net generation data used, and the resulting allocations by August 1 of the first year of each compliance period beginning in 2025. The notice of the net summer capacity and net generation da ta used, and the resulting allocations, shall must allow 30 days for public comment on the data and allocations, until August 31 of the same year. (iv) The Administrator will provide notice of the final
set

- aside allocations by November 1 of the same year. (4) Surplus output

- based set

- aside allowances . If, after completion of the procedures under paragraph (b)(3) of this section for each compliance period, any unallocated CO 2 allowances remain in the out

- put based set

- aside for the State for such generation period, the Administrator will allocate the amount of CO 2 allowances in a pro rata fashion on the same distribution basis as their initial allocations were made to each affected EGU that: is in the State; is allocated an amount of CO 2 allowances in the no tice of data availability issued under § 6 2.16240(a)(1); and continues to be allocated CO 2 allowances for such control compliance period in accordance with § 6 2.16240(a)(2
. ). (5) Notice of surplus output

- based set

- aside
. The Administrator will notify the public, through the promulgation of the notices of data availability described in §***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 54 of 447 6 2.16240(b)(1 )(iii), (iv), ) and ( v 2 ), of the amount of CO 2 allowances allocated under paragraphs (b)(3) and (4) of this section for such control compliance period to each affected EGU eligible for such allocation. **§ §**  **§ 6**  **2.16250 What is the process for revocation of qualification status of an eligible resource?**  (a) If an eligible resource is found to not meet the requirements of § 6 2.16260 in the CO 2 Mass

- based Trading Program, then the Administrator will revoke the eligibility of the eligible resource to be issued set

- aside allowances. In addition, the provisions of § 6 2.16255(d) may apply. (b) Any instance of intentional misrepresentation in an eligibility application or M&V report may be cause for revocation of the qualification status of an eligible resource. (c) Repeated instances of error or misstatement of MWh of electricity generation or savings in submitted M&V reports, and any other r equirements may be cause for the Administrator to revoke the eligibility of an eligible resource to be issued set

aside allowances. (d) In the event of an intentional misrepresentation, or repeated instances of error or misstatement, in program submissions, by the authorized account representative of the eligible resource, the Administrator may prohibit the eligible resource from any f urther eligibility to be issued allowances.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 55 of 447 In addition, the provisions of § 6 2.16255(a) through (d) may apply
. **§ §**  **§ 6**  **2.16255 What is the process for error adjustments or misstatement, and suspension of allowance issuance?**  (a) In the event of error or misst atement of quantified MWh of electricity generation or savings in a previous M&V report for which set

- aside allowances have been issued, the Administrator may adjust the number of set

- aside allowances issued in a subsequent reporting period to address the error or misstatement, by subtracting a number of MWh from the quantified and verified MWh in the M&V report for the subsequent reporting period. In the event that an error or inadvertent misstatement occurs in a final M&V report for an eligible resource, for which
set

- aside allowances have been issued, the provisions of paragraph (b) of this section will apply. (b) In the event of error or misstatement of quantified MWh of electricity generation or savings in the final M&V report for an eligible resource, for which set

- aside allowances have been issued, the Administrator will revoke set

- aside allowances from the general account held by the authorized account representative of the eligible resource, in an amount necessary to correct the error or misstatement . In the event that the general account of the eligible resource holds an insufficient number of set

- aside allowances to correct the error or***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 56 of 447 misstatement, the authorized account representative shall must submit to the Administrator within 30 days a number of set

- aside allowances necessary to correct the error or misstatement. Failure to meet this requirement will result in prohibition of the authorized account representative for the eligible resource from further participation in the program, unless reautho rized at the discretion of the Administrator. (c) The Administrator may freeze the general account held by an authorized account representative of an eligible resource at any time, for cause, if the Administrator determines set

aside allowances have been i mproperly issued, based on a misrepresentation or misstatement in an eligibility application or M&V report. The Administrator may also freeze the general account of a an authorized account representative of an eligible resource pending investigation of pote ntial misrepresentation, error, or misstatement in an eligibility application of an eligible resource, or in an M&V report for which set

- aside allowances have been issued. Freezing a general account will prevent transfer of allowances out of the account. ( d) If set

- aside allowances are issued for an eligible resource that is found to be ineligible, then the Administrator may take the actions in paragraphs ( d)( i) through (iii ). ) of this section.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 57 of 447 (i) Freeze the general account of the authorized account representative for an eligible resource, preventing any transfers of allowances out of the account. (ii) Revoke or deduct allowances held in the general account of the authorized account representative for an eligible resource, in a number equal to the num ber of allowances issued for the ineligible eligible resource. (iii) In the event that the general account of the eligible resource holds a number of allowances less than the number of
set

- aside allowances issued for the ineligible eligible resource, the d elegated representative of an eligible resource shall must submit to the Administrator within 30 days a number of allowances necessary to fully account for all allowances issued for the ineligible eligible resource. Failure to meet this requirement will res ult in prohibition of the eligible resource from further participation in the program, unless reauthorized at the discretion of the Administrator. (e) The Administrator may temporarily or permanently suspend issuance of set

- aside allowances for an eligible resource, for the following reasons in paragraphs ( e)( i) through (iii) of this section. (i) Pending investigation of potential misrepresentation, error, or misstatement in an M&V report, for which set

- aside***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 58 of 447 allowances have been issued, or the eligibility status of an eligible resource. (ii) In the case of repeated error or misstatements in submitted M&V reports. (iii) In the case of an intentional misrepresentation in a submitted M&V report. Evaluation Measurement and Verification Plans, Monitoring and Ver ification Reports, and Verification **§ §**  **§ 6**  **2.16260 What are the requirements for evaluation measurement and verification plans for eligible resources?**  (a) (a) EM&V plan requirements
. Any EM&V plan submitted in support of the issuance of an a set

- aside allowance pursuant to this rule must meet the requirements of this section. (b) General EM&V plan criteria
. Each EM&V plan must identify the eligible resource and its approved eligibility application. (c) Specific EM&V plan criteria
. Each EM&V plan must provide the manner in which the electricity generated or saved by the eligible resource will be quantified, monitored and verified, and the manner of quantification, monitoring and verification must meet the criteria listed in paragraphs (c)(1)
t hrough (7) of this section, as applicable to the specific eligible resource.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 59 of 447 (1) For a nuclear energy resource or a renewable energy resource with a nameplate capacity of 10 kW or more and for a renewable energy resource with a nameplate capacity of less t han 10 kW for which metered data are available, each EM&V plan must specify that the requirements in paragraphs (c)(1)(i) through (vi) of this section must be met. (i) The generation data is physically measured on a continuous basis using a revenue

- quality meter, which shall

mean means a meter used by a control area operator for financial settlements, or a meter that meets the American National Standards Institute No. C12.20. , Code for Electricity Metering, metering accuracy standards, or a meter that meets an alternative equivalent standard that has been approved in advance of its use to measure generation pursuant to this regulation by the EPA. (ii) The generating data is measured at the generator’s bus bar, or, for a renewable energy resource with a namepl ate capacity of less than 10 kW that is interconnected behind an individual business or household meter, the generating data was measured at the AC output of the inverter and adjusted to reflect the only energy delivered into either the transmission or dis tribution grid at the generator bus bar and not and any energy used on

- site at the generator.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 60 of 447 (iii) The generation data from only one eligible resource generating unit may be associated with each meter, and generation data may not be aggregated, unless al l the following provisions are met: (A) All of the generating units have the same essential generation characteristics , ; (B) All of the generating units are located in the same
State , ; (C) The nameplate capacity of the individual units being aggregated is each less than 150 kW, and units collectively do not exceed a total nameplate capacity of 1 MW when aggregated, or alternative requirements approved by the EPA in connection with the specific State plan pursuant to which that EM&V plan or M&V report is su bmitted , ; and (D) The generation data are measured by the same type of meter that is subject to the same maintenance and quality assurance procedures. (iv) The generation data is collected electronically and telemetered from the generator to its control area operator and verified through a control area energy accounting or settlement process which occurs at least monthly, unless the generation unit does not go through a control area operator, in which case the generation data must be collected by manual meter readings conducted by an independent verifier that is either not***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 61 of 447 affiliated with the owner or operator of the qualifying renewable energy generating resource or is precluded pursuant to the relevant State plan from the ability to transfer or retire

s et

- aside allowances issued to that qualifying renewable energy generating resource or, if the generating unit is less than 10 kw and does not generate enough electricity to enable monthly reporting, the data may be self

- reported and reported no less than a nnually. (v) The generation data serves a load that otherwise would have been served by the grid if not for the generator. Specifically: (A) Set

- aside allowances shall not be issued for energy generation used to supply the ancillary equipment used to operate a generating station or substation (“station service”) or parasitic load on the generator’s side of the point of interconnection
. ; and (B) For generators interconnected to transmission systems and with on

- site loads other than station service draw ing generation before the metering point, set

- aside allowances may be issued for on

- site load, if the owner or operator of the eligible resource can demonstrate that the metering used is capable of distinguishing between on

- site load and station service.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 62 of 447 ( vi) Any other requirements approved by the EPA in connection with the specific State plan pursuant to which that EM&V plan is submitted. (2) For a renewable energy resource with a nameplate capacity of less than 10 kW and that does not have a meter, each EM&V plan must require that the following requirements in paragraphs (c)(2)(i) through (vii) of this section are met. (i) Metered data are unavailable. (ii) At least 1 MW of net energy output is generated to the distribution or transmission system over a continuous 365

- day period. (iii) The generation data may not be aggregated, unless the following provisions are met: (A) All of the generating units have the same essential generation characteristics; (B) All of the generating units are located in the sam e State; (C) The nameplate capacity of the individual units being aggregated is each less than 150 kW, and units collectively do not exceed a total nameplate capacity of 1 MW when aggregated, or alternative requirements approved by the EPA in connection

w ith the specific State plan pursuant to which that EM&V plan or M&V report is submitted; and***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 63 of 447 (D) The generation data are measured by the same generation estimating software or algorithms. (iv) The generation data are measured on at least a monthly basis using generation estimating software or algorithms that are based on an on

- site inspection prior to interconnection and a resource study (wind, shading, solar irradiance, depending on the resource), or engineering information that takes into account the ca pacity, age, and type of qualifying energy generating resource, and all input parameters and assumptions must be clearly delineated, or if the generating unit does not generate enough electricity to enable monthly reporting, the data may be reported no les s than annually. (v) The generation data are self

- reported to distribution utility through an electronic internet

- based portal with software that reports total and hourly generation. (vi) The generation data serves a load that otherwise would have been ser ved by the grid if not for the generator. The set

aside allowance is only based on generation transferred from the eligible resource to the transmission or distribution grid, and is not based on the generation used on

- site by the customer. (vii) Any other requirements approved by the EPA in connection with the specific State plan pursuant to which that EM&V plan is submitted.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 64 of 447 (3) For qualifying qualif ied biomass feedstocks used ,, , in addition to the requirements of paragraphs paragraph (c)(1) or (2) of this section, whichever section is applicable, each EM&V plan must demonstrate that the requirements approved by the Administrator EPA for that biomass feedstock and its associated biogenic CO 2 in connection with that state plan have been met. (4) For a waste

— t o - energy resource, in addition to the requirements of paragraphs paragraph (c)(1) or (2) of this section, as applicable, and paragraph (c)(3) of this section, each EM&V plan must specify: (i) The total net energy generation from the resource in MWh; (ii) Th e method for determining the specific portion of the total net energy output from the resource that is related to the biogenic portion of the waste; and (iii) The net energy output is measured with the relevant method approved by the EPA in connection with the specific State plan pursuant to which that EM&V plan is submitted demonstrate that the requirements approved by the EPA in connection with that State plan have been met. (5) For a combined heat and power unit, in addition to the requirements of paragr aphs (c)(1) or (2) of this section, as applicable, and paragraph (c)(3) of this section, each EM&V plan must meet one of the requirements in paragraphs (c)(5)(i) and***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 65 of 447 (ii), through (iv) of this section, as applicable, and any other requirements approved by t he EPA in connection with the specific state plan pursuant
. (i) If the combined heat and power unit has an electric generating capacity greater than 25 MW, then the EM&V plan must meet the requirements that apply to an affected EGU under § 6 2. 16345 16540 o f this subpart. (ii) If the combined heat and power unit has an electric generating capacity less than or equal to 25 MW and greater than 1 MW, and it uses only natural gas and/or distillate fuel oil, then the EM& V plan must meet the low mass emission unit CO 2 emission monitoring and reporting methodology in 40 CFR part 75 of this chapter
. (iii) If the combined heat and power unit has an electric generating capacity less than or equal to 25 MW and greater than 1 MW, and it uses anything other than only natural gas and/or distillate fuel oil, then the EM&V plan must meet the low mass emission unit CO 2 emission monitoring and reporting methodology in part 75 of this chapter. (iv) If the combined heat and power unit has an electric generating capacity less than or equal to 1 MW the unit must keep monthly cumulative recordings of useful thermal output and fossil fuel input along with the determination of baseline thermal source efficiencies based on manufacturer data. For CHP***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 66 of 447 units that directly serve on

- site end

- use electricity loads, avoided transmission and distribution (T&D) system losses can be assessed as is commonly practiced with demand

- side EE. (6) For electricity savings that avoid a transmission and distribution loss, each EM&V plan must measure the transmission and distribution loss based on the lesser of 6 percent of the site

- level electricity savings measured at the end use meter or the statewide annual average transmission and distribution loss rate (expresse d as a percentage) from the most recent year that is published in the US EIA State Electricity Profile expressed as a percentage. No other transmission and distribution loss factors may be used in calculating the electricity savings, including measures suc h as conservation voltage reduction and volt/VAR optimization. (7) Each EM&V plan that addresses for an EE program, EE project, or EE measure must specify how each of the following requirements in paragraphs (c)(7)(i) through (x) of this section will be me t in quantifying the electricity savings from that EE program, EE project, or EE measure : . (i) All electricity savings must be quantified on an ex poste

- post basis, which means after the electricity savings have occurred, and must or on a real

- time basis, which means at the time the electricity savings are occurring. Electricity savings
must not be quantified on an ex

- ante basis, which means based on***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 67 of 447 projects estimates of electricity MWh savings that have are generated prior to implementing the subject EE prog ram, EE project, or EE measure, and that are not yet occurred quantified using EM&V methods and procedures
. (ii) All electricity savings must be quantified and verified based on methods and procedures and methods detailed in an industry best

- practice EM&V protocol
. or guideline. Each EM&V plan must include a demonstration of how the specific best practices

- practice protocol or guideline was selected and will be applied to the specific EE APMP program, EE project, or EE

measure covered in the E EM &V plan, and an explanation of why that particular protocol or guideline was selected. Protocols and guidelines are considered to be best practice if they : (A) They Have gone through a rigorous and credible peer review process and are widely that shows the applicable methods to be valid through empirical testing; and (B) Have been accepted as best practices and approved for

use within the energy efficiency industry, and by identifiable state regulatory commissions. Examples of such protocols an d guidelines that may be provided in EM&V guidance issued by the Administrator will be acceptable. (B) They result in accurate estimates of electricity savings that have at least 80 percent confidence intervals with end points that are no more than +/

- 10 p ercent of the estimate.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 68 of 447 (iii) All electricity savings must be based on an actual EE measure and must be counted only for the period that the EE measures are actually generating electricity savings. (iv) All electricity savings must be calculated quantified as the difference between the observed electricity use and a common practice baseline
. (CPB), which is the equipment that would typically have been installed

– or that a typical consumer or building owner would have continued using

– in a given circumstan ce (i.e., a given building type, EE program type or delivery mechanism, and geographic region) at the time of EE implementation. Examples of CPBs for specific EE programs, EE projects, EE measures, and for certain EM&V methods that may be provided in EM&V guidance issued by the Administrator will be acceptable. The EM&V plan must specify the reason the specific common practice baseline CPB was selected for that EE measure , which must include an analysis of the appropriateness of that CPB for the EE measure pr ogram, EE project, or EE project covered in the EM&V plan , based on : (A) Characteristics of the EE program, EE project, or EE

measure , ; (B) The delivery mechanism used to implement the EE program, EE project, or EE measure (e.g., installed as part of a
ut ility EE program direct install EE program versus a point

- of

sale rebate ), );***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 69 of 447 (C) Local consumer and market characteristics , ; (D) Applicable building energy codes and standards and average compliance rates , ; and (E) The method applied: project

- based measure ment and verification (PB

- MV), comparison group approaches, or deemed savings. (v (iv ) All electricity savings must be quantified by applying one or more of the following methods: project

- based measurement and verification ( PB

- MV ), , comparison group
appro aches, or deemed savings. (A) If project

- based measurement and verification is used, the EM&V plan must specify that explicit verification of the EE project or EE measure will occur within the first year of its implementation (e.g., using phone or mail surveys, document review, site inspections, or spot or short

- term metering). (B) If a comparison group approach is used, then the EM&V plan must determine quantify electricity savings by taking the difference between a comparison group’s electricity use and the electricity use of EE program participants. Comparison group approaches may include random randomized control trials and quasi

- experimental methods using nonparticipants. , as described in industry best

- practice protocols and guidelines. Examples of

su ch protocols and guidelines provided in EM&V guidance that may be issued by the Administrator will be acceptable.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 70 of 447 ( C B ) If deemed savings are used, then the EM&V plan must specify that the deemed savings values will only be used for the specific EE measure for which they were derived. The EM&V plan
must also specify that the name and Web address of the technical reference manual (TRM) in which all “ deemed ” electricity savings
must values will be documented in a technical reference manual that has been subject to rigorous peer review and is located on . Prior to use in an EM&V plan, all TRMs must undergo a review process in which the public, stakeholders, and experts are invited

– with adequate advance notification (via the internet and other social media)

– to provide comment, have at least 2 months to provide comment, and in which all such comments and associated responses are made publicly available database that is reviewed and . All TRMs must also be publicly accessible over the full period of time in which they are being used in conjunction with an EM&V plan for the purpose of quantifying savings, and must be subsequently updated in the same manner at least every 3 years. The database TRM must indicate, for each value, the technology or subject EE measure upon which it is based , the associated electricity savings value, the conditions for under which the value can be applied , ( including the climate zone, building type, manner of implementation, applicable end udes uses , operating conditions, and effective useful life , any peak load impacts, any ), and the manner in which the electricity***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 71 of 447 savings value was quantified, which must include applicable engineering algorithms used to calculate electricity savings, and any , source documentation, specific assumptions, and o ther relevant material data to support the calculation quantification of savings in specific from the subject EE measure. ( vi v ) All electricity savings EE programs, EE projects, or
EE measures must be quantified at time intervals (in years) sufficient to ensure that MWh savings are accurately and reliably quantified. Such time intervals must be specified and explained in the EM&V plan. Factors that must be taken into consideration when determining the appropriate time interval incl ude the characteristics of the specific EE program, EE project, or EE measure, any expected variability in its electricity savings , and (where greater variability necessitates more frequent quantification), the expected scale and magnitude of the electricit y savings
. (where greater quantities of savings necessitate more frequent quantification), and the experience implementing and quantifying savings from the resource (where less experience

– for example, with new and innovative EE program types

– necessitat es more frequent quantification). The time intervals must end by no sooner than the last day of the effective useful life of the EE program, EE project, or EE measure, and must last no longer than:***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 72 of 447 (A) Every four 4

- year intervals for building energy codes and product standards
. ; (B) Every one, two 1 , 2 or three 3 years for public or

consumer - funded EE program, EE project, or EE measure , as relevant for the EE measure type , the magnitude and variability of electricity savings, and experience with the APMP. of EE program, EE project, or EE measure and factors listed in paragraph (c) (7)( v) of this section; and (C) Annually for commercial and industrial projects , unless the resource provider can provide a reasonable justification in the EM&V plan for why an annual time interval is not feasible, and can additionally explain how the accuracy and reliability of savings values will not be lessened
. (vii) The following factors (vi) EM&V plans must specify and their impact on the document how the EM&V components in parag raphs (c)(7)(vi)(A) through (E) of this section will be analyzed, considered, or otherwise addressed in the quantification and verification of electricity savings from the specific EE measure that is the subject of the specific EM&V plan must be addressed in the EM&V plan:
. (A) The effects of any changes in independent variables that will affect the factors on reported electricity savings must be described ( i.e., factors that are not directly related***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 73 of 447 to the EE measure, such as weather, occupancy, and /or pr oduction levels ).
. (B) The effective useful life (EUL) or duration of time the EE measure is anticipated to remain in place and operable with the potential to save electricity, which must be based on an evaluation the application of the EE measure EM&V meth ods , an industry best

- practice persistence study, deemed estimates of effective useful life, or a combination of all of these three
. (1 ) If deemed estimates of effective useful life estimates are used, then they must specify the date by which the EE

measure will have stopped stop saving electricity is specified.
. (2 ) If industry best

- practices persistence studies are used , to modify an effective

- useful

- life value, then they must be conducted at least every 5 years. (C) No The potential sources of double counting of the electricity savings may occur , and the EM&V plan must include documentation of the associated steps taken to avoid double counting. The EM&V may specify that the following procedures will be taken to avoid double counting at the EE measure: (1) For programs for avoiding and projects correcting for it, such as: (1 ) For an EE program or EE project with identified consumers, EE actions ( participants, track the type and number***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 74 of 447 of EE measures implemented ) will be tracked at the utility

customer lev el. (2 ) For programs an EE program or EE project without identified consumers participants , such as point

- of

- sale rebates and retailer or manufacturer incentive programs, track applicable vendor, retailer, and manufacturer data will be tracked
. (3 ) Consumer

- level For EE programs (such as those implemented by a utility) and EE projects (such as those implemented by an energy service company) that both have identified participants, use tracking data will be used to identify avoid and correct for duplicat ion double counting that
may occur across the two; and (4 ) For EE programs with “trackable” consumers and across

non - identified participants and those without (such as retail incentives to purchase energy

- efficient equipment), use EE
program projects such as private

- sector transactions for projects sponsored by an ESCO tracking data for the former and use applicable vendor, retailer, and manufacturer data for the latter to avoid and correct for double counting that may occur across the two
. (4) Instances whe re tracked consumer activity is likely to be double counted with upstream activity will be identified and the estimated overlap subtracked from the electricity savings***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 75 of 447 claimed. (D) If the EE measure involves the installation of identifiable measures, the E M&V plan must specify the manner in which ( D) The EE savings verification approaches for ensuring that the EE measure has measures have been properly installed, is operating as intended, and therefore has the potential to save electricity , including how verification will occur be carried out within the first year of implementation of the EE program, EE project, or EE measure , using si te best

- practice approaches, such as physical inspections at a customer premises , phone and mail surveys, and reviews of sale s receipts and other best

- practice techniques
. documentation. If such approaches are documented in EM&V guidance issued by the Administrator, they will be treated as acceptable. (E) The i nteractive effects of EE programs, EE projects, or
EE measures on el ectricity usage, which are increases or decreases in electricity use usage at a site an end

- use facility or premises that occurs outside of the specific end

- uses (s) targeted by a specific EE program, project, or measures. the EE program, EE project, or EE measure (e.g., lighting retrofits to improve EE can reduce waste heat to the surrounding conditioned space, and therefore may increase the required electric heating load in a facility or premises).***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 76 of 447 ( viii vii ) The EM&V plan must specify how the accuracy and reliability of the electricity savings of the EE program, EE project, or EE measure will be assessed , and must discuss the rigor of the method selected to evaluate quantify the electricity savings , . It must also discuss the methods approaches that will be u sed to control all relevant types of bias and to minimize the potential for systematic and random error, and assess as well

as the potential effects of program - or project

- specific circumstances in which such bias and error specified are likely to arise. Appr oaches to minimizing bias and error are provided in the EM&V plan guidance that may be issued by the Administrator will be acceptable
. ( ix viii ) If sampling will be used to quantify the electricity savings or the from an EE measure, program, then the MWh esti mates derived from sampling must have at least 80 90 percent confidence intervals whose end points are no more than +/

- 10 percent of the estimate, and the statistical precision of the associated estimates must be specified in the EM&V plan. (x) Any (ix) All data sources and key assumptions and data

sources used to quantify electricity savings must be described in the EM&V plan. ( xi x ) Any additional information necessary to demonstrate that the electricity savings were appropriately quantified and verified. Approaches to quantifying and verifying savings from***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 77 of 447 several EE program and EE project types that are provided that are provided in EM&V guidance that may be issued by the Administrator will be acceptable. (d) You must ensure that any EM&V plan submitted pursuant to this subpart includes the following certification: (1) “ 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 inqui ry 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 su bmitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment
. .” **§ §**  (2) [Reserved] **§ 6**  **2.16265 What are the requirements for monitoring and verification reports for eligible**  **resources?** (a) M&V report requirements
. Any M&V report that is submitted in accordance with the requirements of §62.16265 , in support of the issuance of an a set

- aside allowance that can be used in accordance with § 6 2.16240, must meet the requirements of t his section.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 78 of 447 (b) General M&V report criteria
. Each M&V report must include the following: information in paragraphs (b)(1) and (2) of this section. i (1 ) For the first M& V report submitted, documentation that the electricity

- generating resources, electricity

- saving measures, or practices were installed or implemented consistent with the description in the approved eligibility application required in § 6 2.16245(a)(3). ( ii 2 ) For each M&V report submitted: ( A i ) Identification of the time period covered by the M&V report , ; ( B ii ) A description of how relevant quantification methods, protocols, guidelines, and guidance specified in the EM&V plan were applied during the reporting period to generate the quantified MWh of generation or MWh of electricity savings , ; ( C iii ) Documentation (including data) of the energy generation and/or electricity savings from any activity, project, measure , resource , or program addressed in the EM&V

r eport, quantified and verified in MWh for the period covered by the M&V report, in accordance with its EM&V plan, and based on

ex - post energy generation or savings , ; ( D iv ) Documentation of any change in the energy generation or savings capability of the e ligible resource during the period covered by the M&V report and the date on which the change***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 7 9 of 447 occurred, and either certification that the eligible resource continued to meet all eligibility requirements during the reporting period covered by the M&V report or disclosure of any material changes to the eligible resource from the description of the eligible resource in the approved eligibility application, which must include any change in the energy generation (e.g., nameplate MW capacity) or electricity savin gs capability of the qualifying eligible resource (including the date of the change ), ); and ( E v ) Documentation of any change in ownership interest of the qualifying eligible resource (including the date of the change). ( d c ) You must ensure that any M&V rep ort submitted pursuant to this subpart includes the following certification: (1) “ 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. Base d 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
pen alties for submitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment
. .”***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 80 of 447 **§** (2) [Reserved] **§ 6**  **2.16270 What are the requirements for**  **verification reports .**  **?** (a) A verification report included as part of an eligibility application or an M&V report must meet the requirements of paragraph (b) of this section (for the eligibility application verification report) and paragraph (c) of this section (for the M&V report verification repo rt) and include the following: (1) A verification statement that sets forth the findings of the accredited independent verifier, based on the verifier’s assessment of the information and data in the eligibility application or M&V report that is the subject of the verification report, including an assessment of whether the eligibility application or M&V report contains any material misstatements or material data discrepancies, and whether the submittal conforms with applicable regulatory requirements. The

ve rification statement must clearly identify how levels of assurance and materiality are defined as part of the verifier
assessment. (2) The following statement, signed by the accredited independent verifier: “ I certify under penalty of law that I have perso nally examined, and am familiar with, the statements and information submitted in this document and all its attachments. Based on my personal knowledge and/or inquiry of***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 81 of 447 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, i ncluding the possibility of fine or imprisonment
. .” (ii) [Reserved] (b) A verification report included as part of an eligibility application must, at a minimum, describe the review conducted by the accredited independent verifier and verify each of the fol lowing: (1) The eligibility of the eligible resource to be issued
set

- aside allowances pursuant to this regulation, in accordance with § 6 2.16245(a), including an analysis of the adequacy and validity of the information submitted by the authorized account representative to demonstrate that the eligible resource meets each applicable requirement of § 6 2.16245
. ; (2) The eligible resource is not duplicative of a resource used to meet emission standards or a state measure in another approved State plan
. ; (3) Th e eligible resource exists or the practice operation or activity will be implemented in the manner specified in the eligibility application
. ;***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 82 of 447 (4) That the EM&V plan meets the requirements of § 6 2.16260
. ; (5) Disclosure of any mandatory or voluntary programs to which data is reported relating to the eligible resource (e.g., reporting of electric generation by a renewable energy resource to a renewable energy certificate tracking system ). ); and (6) Any other information required by the Administrator or that th e accredited independent verifier finds, in its professional opinion, is necessary to assess the adequacy and validity of information and data supplied by the authorized account representative. (c) A verification report included as part of a an M&V report m ust, at a minimum, describe the review conducted by the accredited independent verifier and verify the following: information specified in paragraphs (c)(1) through (3) of this section. (1) The adequacy and validity of the information and data submitted in the submittal by the authorized account representative to quantify eligible MWh of electric generation or electricity savings during the period for which the authorized account representative seeks issuance of set

- aside allowances, as well as all supportin g information and data identified in the EM&V plan and M&V report. This analysis must include a quality assurance and quality control check of the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 83 of 447 data and ensure that all generation or savings data is within a technically feasible range for that specific eligible resource. (i) For metered generation, the data validity check must compare reported electricity generation to an engineering estimate of the maximum generation potential of the qualified renewable energy resource, based on, at a minimum, its maxim um nameplate capacity in MW and the number of days since the prior cumulative meter reading was entered in the allowance tracking system. If the data entered exceeds the estimated technically feasible generation, then the reported data and the estimate

mus t be analyzed in the verification report. (ii) For all electricity generated or saved, the accredited independent verifier must describe the likely source of any data discrepancy and determine in the verification report any MWh generated or saved. (2) The M&V report meets the requirements of § 6 2.16265
. (3) Any other information required by the Administrator or that the accredited independent verifier finds, in its professional opinion, is necessary to assess the adequacy and validity of information and data supplied by the authorized account representative. **§ §**  **62.16275 Accreditation of Independent Verifiers. § 6**  **2.16275 What is the accreditation procedure for independent verifiers?** ***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 84 of 447 (a) Only Administrator

- accredited independent verifiers may provide a veri fication report for an eligibility application or M&V report. (b) Applications for accreditation must follow a procedure and form specified by the Administrator which shall include includes a demonstration by the verifier that it meets the requirements in p aragraph ( d). c) of this section. ( d c ) Independent verifiers must meet each of the requirements in paragraphs ( d c )(1) through (6) of this section to be accredited. (1) Independent verifiers must have the skills, experience, resources (personnel and otherwi se) to provide verification reports, including the following: (A) Appropriate technical qualification (professional engineer or otherwise) to evaluate the eligible resource for which the independent verifier is seeking accreditation, which may include ANSI accreditation under ISO 14065 for GHG validation and verification bodies
. ; (B) Appropriate auditing and accounting qualifications for financial and non

- financial data monitoring, auditing, and quality assurance and quality control to evaluate the eligible resource for which the independent verifier is seeking accreditation
. ;***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 85 of 447 (C) Knowledge of the requirements of the Administrator’s
state’s Rate CO 2 Mass

- based Trading Program regulations and related guidance
. ; (D) Knowledge of the eligible resource categories for which the independent verifier is seeking accreditation, including relevant aspects of the design, operation, and related energy generation or electricity savings monitoring and reporting approaches for such eligible resources
. ; and (E) Capability to perform key verification activities, such as development of a verification report; site visits; review and recalculation of reported data; review of data management systems; review of quantification methods used in accordance with an approved EM&V plan; pr eparation of a verification opinion, list of findings, and verification report; and internal review of the verification findings and report. (2) Independent verifiers must document, in the application for accreditation, the independent verifiers that will provide verification services, including lead verifiers, key personnel and any contractors or subcontractors (collectively, accredited independent verification team) and demonstrate that they meet the requirements of paragraph (c)(1) of this section §62.16 275(d)(1).
. Once accredited, only the accredited independent verification team identified in the accreditation***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 86 of 447 application and accredited by the State may provide a verification report. (3) An independent verifier must specify the eligible resource categor ies for which it is seeking accreditation, and an accredited independent verifier may only provide verification services related to an eligible resource category for which it is accredited. (4) Prospective independent verifiers must meet the requirements o f **§** 6 2.16280(d) through (f) and demonstrate that they have in place adequate systems and protocols to identify, disclose and avoid potential conflicts of interest. (5) An accredited independent verifier must not be debarred, suspended, or proposed for deba rment pursuant to the
Government

- wide Debarment and Suspension regulations, 40 CFR part 32 of this chapter , or the Debarment, Suspension and Ineligibility provisions of the Federal Acquisition Regulations, 48 CFR part 9, subpart 9.4 , of this chapter
. (6) A n accredited independent verifier must maintain, for its employees, and ensure the maintenance of, for any parties that it employs, professional liability insurance, as defined in 31 C.F.R. CFR 50.5(q), through an insurance provider that possess a financial strength rating in the top four categories from either Standard & Poor’s or Moody’s, specifically, AAA, AA, A or BBB for Standard & Poor’s, and Aaa, Aa, A, or Baa for Moody’s.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 87 of 447 Any entity covered by this paragraph shall must disclose the level of profession al liability insurance they possess when entering into contracts to provide verification services pursuant to this regulation. ( e d ) Requirements for maintenance of accreditation status. (1) Accredited independent verifiers must meet the requirements of se ction **§** 6 2.16280 when providing verification services for a an authorized account representative. (2) The instances specified in section 62.16280(d) are cause for revocation of a verifier’s accreditation. **§ §**  **§ 62.16280 What are the procedures**  **of accredited i**  **ndependent verifiers must follow to avoid conflict of interest?**  (a) Accredited independent verifiers must not provide verification services for any eligible resource for which it has a conflict of interest or ( COI , ), which means: (1) Accredited independent verifiers must have, or have had, no direct or indirect financial interest in, or other financial relationships with, an eligible resource, or any prospective eligible resource, for which the they seek to provide a verification re port . ; (2) Accredited independent verifiers must have, or have had, no direct or indirect organizational or personal relationships with an eligible resource, that would impact their***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 88 of 447 impartiality in assessing the validity and accuracy of the information in an eligibility application or M&V report
. ; (3) Accredited independent verifiers must have, or have had, no role in the development and implementation of an eligible resource for which a an authorized account representative seeks issuance of set

- aside allow ances, beyond the provision of verification services
. ; (4) Accredited independent verifiers must not be compensated, financially or otherwise, directly or indirectly, on the basis of the content of its verification report (including eligibility approval o f an eligible resource, the quantified and verified MWh in an M&V report, set

- aside allowance issuance, or the number of set

- aside allowances issued ). ); (5) Accredited independent verifiers must not own, buy, sell, or hold set

- aside allowances, or other f inancial derivatives related to set

- aside allowances, or have a financial relationship with other parties that own, buy, sell, or hold
set

- aside allowances or other related financial derivatives
. ; (6) An accredited independent verifier must not be incapab le of providing an impartial verification report for any other reason
. ; and (7) An accredited independent verifier must ensure that the subject of any verification report must not have the opportunity***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 89 of 447 to review or influence any draft or final verification report before its submittal to the Administrator, and the accredited independent verifier must share any drafts of its reports with the Administrator at the same time as it shares them with the subject of the report. (b) A contract with an eligible resour ce for the provision of verification services shall will not constitute a conflict of interest COI
. (c) Verification reports must include an attestation by the accredited independent verifier that it evaluated and disclosed to the Administrator any potential COI related to an eligible

resource. (d) Prior to engaging for the provision of verification services, an accredited independent verifier must demonstrate that it has no conflict of interest COI related to the eligible resource, as specified in §62.16280 pa ragraph (a ). ) of this section. If a conflict of interest COI is identified for a person or persons within an accredited independent verifier for a specific subject or verification, in accordance with paragraphs (e) and (f) below, of this section, then an acc redited independent verifier may propose to the Administrator steps that will be taken to eliminate the conflict of interest COI, which shall include prohibiting the person or persons with the conflict from any involvement in the matter subject to the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 90 of 447 confl ict, including verification services, access to information related to the verification services, access to any draft or final verification reports, any communications with the person(s) conducting the verification services. In no instance shall an accredi ted independent verifier engage in verification services for an eligible resource without the approval of the Administrator. (e) Prior to engaging in verification services and writing a verification report, an accredited independent verifier shall must disc lose to the Administrator all information necessary for the Administrator to evaluate a potential conflict of interest COI (including information concerning its ownership, past and current clients, related entities, as well as any other facts or circumstanc es that have the potential to create a conflict of interest COI ). (f) Accredited verifiers shall have an ongoing obligation to disclose to the Administrator any facts or circumstances that may give rise to a conflict of interest COI as defined in §62.16280 paragraph (a ). ) of this section. (g) The Administrator may reject a verification report from an accredited independent verifier, if the Administrator determines that the accredited independent verifier has a conflict of interest COI as defined in §62.16280 p aragraph (a ). ) of this section. If the Administrator rejects an accredited***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 91 of 447 independent verifier report for such reasons, then the eligibility application or M&V report submittal must shall be deemed incomplete and set

- aside allowances must not be issued
pur suant to it. **§ §**  **§ 6**  **2.16285 What is the process for the revocation of accreditation status for an independent verifier?**  (a) The Administrator may revoke the accreditation of an independent verifier at any time for cause, including for the reasons specified i n paragraphs (a)(1) through (4 ). ) of this section. (1) Failure to fully disclose any issues that may lead to a conflict of interest COI with respect to an eligible resource, or other related entity, in accordance with § 6 2.16280(d) through (f). (2) The accr edited independent verifier is no longer qualified to provide verification services. (3) Negligence in the conduct of verification activities, or neglect of responsibilities pursuant to the requirements of § 6 2.16270, § 6 2.16275, and § 6 2.16280. (4) Intentional misrepresentation of data in a verification report.
**DESIGNATED REPRESENT ATIVES** 
**§ §**  **6 2.16290**  **How are designated representatives and alternate*****E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 92 of 447 **designated representatives authorized? What role do authorized designated representatives and alternate**  **designated representatives play?**  (a) Except as provided under § 6 2.16300, each facility, including all affected EGUs at the facility, shall have one and only one designated representative, with regard to all matters under the CO 2 Mass

- based Trading Progra m. (1) The designated representative shall be selected by an agreement binding on the owners and operators of the facility and all affected EGUs at the facility and shall must act in accordance with the certification statement in § 6 2.16305(a)(4)(iii). (2) Upon and after receipt by the Administrator of a complete certificate of representation under § 6 2.16305: (i) The designated representative shall be authorized and shall represent and, by his or her representations, actions, inactions, or submissions, lega lly bind each owner and operator of the facility and each affected EGU at the facility in all matters pertaining to the CO 2 Mass

- based Trading Program, notwithstanding any agreement between the designated representative and such owners and operators; and ( ii) The owners and operators of the facility and each affected EGU at the facility shall be bound by any decision or***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 93 of 447 order issued to the designated representative by the Administrator regarding the facility or any such affected EGU. (b) Except as provided under § 6 2.16300, each facility 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 must 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 facility and all affected EGUs at the facility and shall must act in accordance with the certification statement in § 6 2.16305(a)(4)(iii). (2) Upon and after receipt by the Administrator of a complete certificate of representation under § 6 2.16305 , : (i) The alternate designated represe ntative shall must 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 own ers and operators of the facility and each affected EGU at the facility shall be bound by any decision or***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 94 of 447 order issued to the alternate designated representative by the Administrator regarding the facility or any such affected EGU. (c) Except in this secti on, § 6 2.16375, and § § 6 2.16295 through 62.16315, 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 representativ e or any alternate designated representative. **§ 6 2.16295**  **What responsibilities do designated representatives and alternate designated representatives hold?**  (a) Except as provided under § 6 2.16315 concerning delegation of authority to make submissions, each submission under the CO 2 Mass

- based Trading Program shall be made, signed, and certified by the designated representative or alternate designated representative for each facility and affected EGU for which the submission is made. Each such submission shal l must 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 facility or affected EGUs for which the submi ssion 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 95 of 447 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 r equired statements and information, including the possibility of fine or imprisonment.” (b) The Administrator will accept or act on a submission made for a facility or an affected EGU only if the submission has been made, signed, and certified in accordance with paragraph (a) of this section and § 6 2.16315. **§ 6 2.16300**  **What are the processes f or changing designated**  **representative, alternate designated representative, owners and operators, and affected EGUs at the facility?**  (a) Changing designated representative **.** The designated representative may be changed at any time upon receipt by the Admini strator of a superseding complete certificate of representation under § 6 2.16305. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous designated representative before the time and date when the Administ rator receives the superseding certificate of representation shall be binding on the new designated representative and the owners and operators of the facility and the affected EGUs at the facility.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 96 of 447 (b) Changing alternate designated representative **.** The alt ernate designated representative may be changed at any time upon receipt by the Administrator of a superseding complete certificate of representation under § 6 2.16305. Notwithstanding any such change, all representations, actions, inactions, and submission s 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 facility and the affected EGUs at the facility. (c) Changes in owners and operators **.** (1) In the event an owner or operator of a facility or an affected EGU at the facility is not included in the list of owners and operators in the certificate of representation under § 6 2.16305, 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

an y alternate designated representative of the facility or affected EGU, 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 facility or an affected EGU at the facility, including the addition or removal of an owner or operator, the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 97 of 447 designated representative or any alternate designated representative shall must submit a revision to the certificate of representation under § 6 2.16305 amendi ng the list of owners and operators to reflect the change. (d) Changes in affected EGUs at the facility **.** Within 30 days of any change in which affected EGUs are located at a facility (including the addition or removal of an affected EGU), the designated re presentative or any alternate designated representative shall must submit a certificate of representation under § 6 2.16305 amending the list of affected EGUs to reflect the change. (1) If the change is the addition of an affected EGU that operated (other than for purposes of testing by the manufacturer before initial installation) before being located at the facility, then the certificate of representation shall must identify, in a fo rmat prescribed by the Administrator, the entity from whom the affected EGU was purchased or otherwise obtained (including name, address, telephone number, and facsimile number (if any)), the date on which the affected EGU was purchased or otherwise obtain ed, and the date on which the affected EGU became located at the facility. (2) If the change is the removal of an affected EGU, then the certificate of representation shall must identify, in a format prescribed by the Administrator, the entity to which the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 98 of 447 affected EGU was sold or that otherwise obtained the affected EGU (including name, address, telephone number, email address and facsimile number (if any)), the date on which th e affected EGU was sold or otherwise obtained, and the date on which the affected EGU became no longer located at the facility. **§ 6 2.16305**  **What must be included in a certificate of representation?**  (a) A complete certificate of representation for a designat ed representative or an alternate designated representative shall must include the following elements in a format prescribed by the Administrator: (1) Identification of the facility, and each affected EGU at the facility, for which the certificate of repres entation is submitted, including facility and affected EGU names, facility 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, identificat ion number and nameplate capacity (in MWe, rounded to the nearest tenth) of each generator served by each such affected EGU, actual or projected date of commencement of commercial operation, net summer capacity at the affect EGU, and a statement of whether such facility is located in Indian country. If a projected date of commencement of commercial operation is provided, then the actual date of commencement of commercial***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 99 of 447 operation shall must be provided when such information becomes available. (2) The name, address, e - mail email 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 facility and of each affected EG U at the facility. (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 appl icable, by an agreement binding on the owners and operators of the facility and each affected EGU at the facility .” ”; and (ii) “I certify that I have all the necessary authority to carry out my duties and responsibilities under the CO 2 Mass

- based Trading Program on behalf of the owners and operators of the facility and of each affected EGU at the facility 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 facility or unit.”***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 100 of 447 (iii) “Where there are multiple holders of a legal or equitable title to, or a leasehold interest in, an affected EGU, or where a utility or industrial customer purchases power from an affected EG U 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 se lected to each owner and operator of the facility and of each affected EGU at the facility; and CO 2 allowances and proceeds of transactions involving CO 2 Mass

- based Trading 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 CO 2 allowances by contract, then CO 2 allowances and proceeds of transactions involving CO 2 Mass

- based Trading 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 101 of 447 Administrator shall not be under any obligation to review or evaluate the sufficiency of such documents, if submitte d. **§ 6 2.16310**  **What is the Administrator’s role in objections concerning designated representatives and alternate designated**  **representatives?** (a) Once a complete certificate of representation under § 6 2.16305 has been submitted and received, the Administra tor will rely on the certificate of representation unless and until a superseding complete certificate of representation under § 6 2.16305 is received by the Administrator. (b) Except as provided in paragraph (a) of this section, no objection or other commu nication 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 submis sion of the designated representative or alternate designated representative or the finality of any decision or order by the Administrator under the CO 2 Mass

- based Trading Program. (c) The Administrator will not adjudicate any private legal dispute concern ing 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 CO 2 allowance transfers.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 102 of 447 **§ 6 2.16315**  **What proce ss must designated representatives and**  **alternate designated representatives follow to delegate their authority?**  (a) A designated representative may delegate, to one or more natural persons, his or her authority to make an electronic submission to the Admin istrator 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 su bpart. (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 appropriat e, must submit to the Administrator a notice of delegation, in a format prescribed by the Administrator, that includes the following elements : in paragraphs (c)(1) through (4) of this section. (1) The name, address, e

- mail address, telephone number, and fa csimile transmission number (if any) of such designated representative or alternate designated representative ; .***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 103 of 447 (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 statemen ts 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 notic e 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 **§** 62.16315(d) shall be deemed to b e an electronic submission by me .” ”; and (ii) “Until this notice of delegation is superseded by another notice of delegation under 40 CFR **§** 62.16315(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 **§** 62.16315 is terminated .”. .”***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 104 of 447 (d) A notice of delegation submitted under paragraph (c) of this section shall be effective, with regard to the designated representative or alternate designate d 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 delega tion. **MONITORING, RECORDKE EPING, REPORTING** 
**§ §**  **6 2.16320**  **How are compliance accounts and general accounts established?**  (a) Compliance accounts **.** Upon receipt of a complete certificate of representation under § 6 2.16305, the Administrator will establish a compliance account for the facility for which the certificate of representation was***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 105 of 447 submitted, unless the facility already has a compliance account. The designated representative and any alternate designated representative of the facility shall be the auth orized account representative and the alternate authorized account representative respectively of the compliance account. (b) Retirement Account accounts **.** (1) A retirement account, into which allowances held in a compliance account for an affected EGU are s urrendered by the owner or operator of an affected EGU, for use in demonstrating compliance with its emission standards. The retirement account may only be held by the Administrator, and allowances deposited into it are permanently retired. Once an allowan ce is retired, the allowance shall no longer be transferable to another account in that allowance tracking system or any other allowance tracking system. (2) [Reserved] (c) General accounts **.** (1) Application for a general
account . (i) Any person may apply to open a general account, for the purpose of holding and transferring CO 2 allowances, by submitting to the Administrator a complete application for a general account. Such application shall must 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.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 106 of 447 (A) The authorized account representative and alter nate authorized account representative shall be selected by an agreement binding on the persons who have an ownership interest with respect to CO 2 allowances held in the general account. (B) The agreement by which the alternate authorized account represent ative is selected shall must 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 must include the following eleme nts 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 th e CO 2 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 107 of 447 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 CO 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 CO 2 Mass

- based 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 b y the Administrator regarding the general account .” ”; and (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 o f 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 au thorized account representative and alternate authorized account representative . (i) Upon receipt by the Administrator of a complete application for a general account under paragraph ( b c )(1) of this section, the Administrator will establish a general accou nt for the person or***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 108 of 447 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 represent ations, actions, inactions, or submissions, legally bind each person who has an ownership interest with respect to
CO 2 allowances held in the general account in all matters pertaining to the CO 2 Mass

- based Trading Program, notwithstanding any agreement bet ween 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 deeme d to be a representation, action, inaction, or submission by the authorized account representative
. ; and (C) Each person who has an ownership interest with respect
to CO 2 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 ( b c )(5) of this section concerning delegation of authority to make submission s, each submission concerning the general account shall be made, signed, and certified by the authorized account representative***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 109 of 447 or any alternate authorized account representative for the persons having an ownership interest with respect to CO 2 allowances h eld in the general account. Each such submission shall must 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 CO 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 a re 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.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 110 of 447 (3) Changing authorized account representative and alternate authorized account representative; chan ges 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 ( b 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 CO 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 general account under paragraph (c)(1) of this section. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous alterna te 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 111 of 447 persons with an ownership interest with respect to the CO 2 allowances in the general account. (iii)(A) In the event a person having an ownership interest with respect to CO 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 chan ge in the persons having an ownership interest with respect to CO 2 allowances in the general account, including the addition or removal of a person, the authorized account representative or any alternate authorized account representative shall must submit a revision to the application for a general account amending the list of persons having an ownership interest with respect to the CO 2 allowances in the general account to include the change. (4) Objections concerning authorized account representative and al ternate authorized account representative
. (i) Once a complete application for a general account under paragraph (c)(1) of this section has been submitted and***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 112 of 447 received, the Administrator will rely on the application unless and until a superseding complete application for a general account under paragraph ( b c )(1) of this section is received by the Administrator. (ii) Except as provided in paragraph ( b 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

a uthorized account representative or any alternate authorized account representative or the finality of any decision or order by the Administrator under the CO 2 Mass

- based Trading Program. (iii) The Administrator will not adjudicate any private legal disput e 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 CO 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 113 of 447 or more natural persons, his or her authori ty 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 ele ctronic 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 ( b c )(5)(i) or (ii) of this sect ion, 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 n ame, 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 tran smission 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 ( b c )(5)(i) or***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 114 of 447 (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 identifie d 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 **§** 62.16320( b 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 **§** 62.16320( b 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 **§** 62.16320(c)(5) is terminated .”. .” (iv) A notice of delegation submitted under paragraph ( b c )(5 )(iii) of this section shall be effective, with regard to the authorized account representative or alternate authorized***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 115 of 447 account representative identified in such notice, upon receipt of such notice by the Administrator and until receipt by the Administrato r 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, o r eliminate entirely any delegation of authority. (v) Any electronic submission covered by the certification in paragraph ( b c )(5)(iii)(D) of this section and made in accordance with a notice of delegation effective under paragraph (c)(5)(iv) of this sectio n 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 must include a correctly submitted CO 2 allowance transfer under § 6 2.16330 for any CO 2 allowances in the account to one or more ot her Allowance Management Tracking and Compliance System accounts. (ii) If a general account has no CO 2 allowance transfers to or from the account for a 12

- month period or longer and does not contain any CO 2 allowances, then the Administrator may notify the authorized account representative for the account that the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 116 of 447 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 CO 2 allowance transfer under § 6 2.16330 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 t he account should not be closed. (d) Account identification **.** The Administrator will assign a unique identifying number to each account established under paragraphs (a) through (c) of this section. (e) Responsibilities of authorized account representative

a nd 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 de duction or transfer of CO 2 allowances in the account, only if the submission has been made, signed, and certified in accordance with § § 6 2.16295(a) and 62.16315 or paragraphs (c)(2)(ii) and (c)(5) of this section. **§ 6 2.16325**  **When will CO 2**  **allowances be recorded in compliance**
**accounts?** (a) By June 1, 2021, and by June 1 of each year prior to the beginning of each compliance period thereafter, the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 117 of 447 Administrator will record in each facility's compliance account the CO 2 allowances allocated to the affected EGUs at the facility in accordance with § 6 2.16240(a), or with a state allowance

distribution methodology approved under subpart UUUU of part 60 of this chapter, for the upcoming compliance period. (b) (b) Except as specified in paragraph (a) of this section, the Administrator will record an allocation in the appropriate Allowance Tracking and Compliance System account by the date on which any allocation of CO 2 allowances to a recipient , other than an allocation described in paragraphs (a) th rough (b) of this section, must be made by or submitted to the Administrator in accordance with § either § § 6 2.16240 , or with state allowance

- distribution methodology approved under subpart UUUU of part 60 of this chapter , the Administrator will record such allocation in the appropriate Allowance Management System
account . (c) When recording the allocation of CO 2 allowances to an affected EGU or other entity in an Allowance Management Tracking and Compliance System account, the Administrator will assign each CO 2 allowance a unique serial number that will include digits identifying the year of the compliance period for which the CO 2 allowance is allocated. (d) By December 1, 2021 and December 1 of each year thereafter, the Administrator will record in each rene wable***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 118 of 447 energy project’s general account, the CO 2 allowances allocated from the renewable energy set

- aside to the project in accordance with § 6 2.16245(a), for the following year. (e) By November 1 of the first year of each compliance period beginning in 202 5, and each compliance period thereafter, the Administrator will record in each facility's compliance account the CO 2 allowances allocated from the output

- based set

aside to the eligible EGUs at the facility in accordance with § 6 2.16245(b) or with a state allowance

- distribution methodology approved under subpart UUUU of part 60 of this chapter, for the following year. **§ 6 2.16330**  **How must transfers of CO 2**  **allowances be submitted?** (a) An authorized account representative seeking recordation of a CO 2 allowa nce transfer shall must submit the transfer to the Administrator. (b) A CO 2 allowance transfer shall must 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 CO 2 allowance that is in the transferor account and is to be transferred; and***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 119 of 447 (iii) The name and signature of the authorized account representa tive of the transferor account and the date signed; and (2) When the Administrator attempts to record the transfer, the transferor account includes each CO 2 allowance identified by serial number in the transfer. **§ 6 2.16335**  **When will CO 2**  **allowance transfers be recorded?**  (a) Within five 5 business days (except as provided in paragraph (b) of this section) of receiving a CO 2 allowance transfer that is correctly submitted under § 6 2.16330, the Administrator will record a CO 2 allowance transfer by moving each
CO 2 allowance from the transferor account to the transferee account as specified in the transfer. (b) A CO 2 allowance transfer to or from a compliance account that is submitted for recordation after the allowance transfer deadline for a compliance period and that includes any CO 2 allowances allocated for any compliance period before such allowance transfer deadline will not be recorded until after the Administrator completes the deductions from such compliance account under § 6 2.16340 for the compliance perio d immediately before such allowance transfer deadline. (c) Where a CO 2 allowance transfer is not correctly submitted under § 6 2.16330, the Administrator will not record such transfer.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 120 of 447 (d) Within five 5 business days of recordation of a CO 2 allowance transfe r 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 CO 2 allowance transfer that is not correctly sub mitted under § 6 2.16330, 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. **§ 6 2.16340**  **How will deductions for compliance with a CO**  **2 emission**  **standard occur?** (a) Availability for deduction for compliance **.** CO 2 allowances are available to be deducted for compliance with a facility's facility ’ s CO 2 emission standard for a compliance period only if the C O 2 allowances: (1) Were allocated for a year in such compliance period or a prior compliance period; and (2) Are held in the facility's compliance account as of the allowance transfer deadline for such compliance period. (b) Deductions for compliance **.** Afte r the recordation, in accordance with § 6 2.16335, of CO 2 allowance transfers submitted by the allowance transfer deadline for a compliance period, the Administrator will deduct from each facility's compliance***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 121 of 447
account CO 2 allowances available under paragrap h (a) of this section in order to determine whether the facility meets the CO 2 emission standard for such compliance period, as follows: (1) Until the amount of CO 2 allowances deducted equals the number of tons of total CO 2 emissions from all affected EGUs at the facility for such compliance period; or (2) If there are insufficient CO 2 allowances to complete the deductions in paragraph (b)(1) of this section, until no more CO 2 allowances available under paragraph (a) of this section remain in the compliance account. (c)(1) Identification of CO 2 allowances by serial number **.** The authorized account representative for a facility's compliance account may request that specific CO 2 allowances, identified by serial number, in the compliance account be deducted for emissions or excess emissions for a compliance period in accordance with paragraph (b) or (d) of this section. In order to be complete, such request shall must be submitted t o the Administrator by the allowance transfer deadline for such compliance period and include, in a format prescribed by the Administrator, the identification of the facility and the appropriate serial numbers. (2) First

- in, first

- out **.** The Administrator wi ll deduct CO 2 allowances under paragraph (b) or (d) of this section from the facility's compliance account in accordance with a complete***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 122 of 447 request under paragraph (c)(1) of this section or, in the absence of such request or in the case of identification of a n insufficient amount of CO 2 allowances in such request, on a first

- in, first

- out accounting basis in the following order: (i) Any CO 2 allowances that were allocated to the affected EGUs at the facility and not transferred out of the compliance account, in the order of recordation; and then (ii) Any CO 2 allowances that were allocated to any affected EGU or other entity and transferred to and recorded in the compliance account pursuant to this subpart, in the order of recordation. (d) Deductions for excess e missions **.** After making the deductions for compliance under paragraph (b) of this section for a compliance period in a year in which the facility has excess emissions, the Administrator will deduct from the facility's compliance account an amount of CO 2 all owances, allocated for a compliance period in a prior year or the compliance period in the year of the excess emissions or in the immediately following year, equal to two times the number of tons of the facility's excess emissions. (e) Recordation of deduc tions **.** The Administrator will record in the appropriate compliance account all deductions from such an account under paragraphs (b) and (d) of this section. **§ 6 2.16345**  **What monitoring requirements must I comply with?*****E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 123 of 447 (a) The owner or operator of an affected EGU must prepare a monitoring plan in accordance with the applicable provisions in § 7 5.53(g) and (h) of this chapter, unless such a plan is already in place under another program that requires CO 2 mass emissions to be monitored and reported according to part 75 of this chapter. The owner or operator of an affected EGU must determine the CO 2 mass emissions (tons) for the compliance period as follows: You must follow the requirements described in
para graphs (a)(1) through (8) of this section to monitor emissions and net energy output at your affected EGU. (1) For each operating hour, calculate the hourly CO 2 mass (tons) according to paragraph (a)(4) or ( a)( 5) of this section, except that a complete dat a record is required, i.e., CO 2 mass emissions must be reported for each operating hour. Therefore, substitute data values recorded under part 75 of this chapter for CO 2 concentration, stack gas flow rate, stack gas moisture content, fuel flow rate and/or GCV shall must be used in the calculations; and (2) Sum all of the hourly CO 2 mass emissions values over the entire compliance period. (3) The owner or operator of an affected EGU must install, calibrate, maintain, and operate a sufficient number of watt

m eters to continuously measure and record on an hourly basis net electric output. Measurements must be performed using 0.2***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 124 of 447 accuracy class electricity metering instrumentation and calibration procedures as specified under ANSI Standards No. C12.20. Further, the owner or operator of an affected EGU that is a combined heat and power facility must install, calibrate, maintain and operate equipment to continuously measure and record on an hourly basis useful thermal output and, if applicable, mechanical output, w hich are used with net electric output to determine net energy output (P net ). The owner or operator must calculate net energy output according to paragraphs (a)(6)(i)(A) and (B) of this section. (4) The owner or operator of an affected EGU must measure and report the hourly CO 2 mass emissions (lbs) from each affected unit using the procedures in paragraphs (a)(4)(i) through ( vii vi ) of this section, except as otherwise provided in paragraph (a)(5) of this section. (i) The owner or operator of an affected EGU must install, certify, operate, maintain, and calibrate a CO 2 continuous emissions monitoring system (CEMS) to directly measure and record CO 2 concentrations in the affected EGU exhaust gases emitted to the atmosphere and an exhaust gas flow rate monitori ng system according to § 7 5.10(a)(3)(i) of this chapter. However, when an O 2 monitor is used this way, it only quantifies the combustion CO 2 ; therefore, if the EGU is equipped with emission controls that produce non

- combustion CO 2 (e.g., from***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 12 5 of 447 sorbent injec tion), then this additional CO 2 must be accounted for, in accordance with section 3 of appendix G to part 75 of this chapter. As an alternative to direct measurement of CO 2 concentration, provided that the affected EGU does not use carbon separation (e.g., carbon capture and storage), the owner or operator of an affected EGU may use data from a certified oxygen (O 2 ) monitor to calculate hourly average CO 2 concentrations, in accordance with § 7 5.10(a)(3)(iii) of this chapter. If CO 2 concentration is measured on a dry basis, then the owner or operator of the affected EGU must also install, certify, operate, maintain, and calibrate a continuous moisture monitoring system, according to § 7 5.11(b) of this chapter. Alternatively, the owner or operator of an affected EGU may either use an appropriate fuel

- specific default moisture value from § 7 5.11(b) or submit a petition to the Administrator under § 7 5.66 of this chapter for a site

- specific default moisture value
. (ii) Calculate the hourly CO 2 mass emission rate (tons/hr), either from Equation F

- 11 in Appendix F to part 75 of this chapter (if CO 2 concentration is measured on a wet basis), or by following the procedure in section 4.2 of Append ix F to part 75 of this chapter (if CO 2 concentration is measured on a dry basis). CO 2 mass emissions must be reported for each operating hour. Therefore, substitute data values recorded under part 75***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 126 of 447 of this chapter for CO 2 concentration, stack gas flow r ate, stack gas moisture content, fuel flow rate and/or GCV shall must be used in the calculations
. (iii) Next, multiply each hourly CO 2 mass emission rate by the EGU or stack operating time in hours (as defined in § 7 2.2 of this chapter), to convert it to t ons of CO 2. Multiply the result by 2000 lb/ton to convert it to lb. (iv) The hourly CO 2 tons/hr values and EGU (or stack) operating times used to calculate CO 2 mass emissions are required to be recorded under § 7 5.57(e) of this chapter and must be reporte d electronically under § 7 5.64(a)(6 ), ) of this chapter , if required by a plan. The owner or operator must use these data, or equivalent data, to calculate the hourly CO 2 mass emissions. (v) Sum all of the hourly CO 2 mass emissions values from that

were calculated according to procedures specified in paragraph (a)(4)(ii) of this section over the entire compliance period. (vi) For each continuous monitoring system used to determine the CO 2 mass emissions from an affected EGU uses, the monitoring system m ust meet the applicable certification and quality assurance procedures in § 7 5.20 of this chapter and Appendices A and B to part 75 of this chapter. (5) The owner or operator of an affected EGU that exclusively combusts liquid fuel and/or gaseous fuel may, as an***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 127 of 447 alternative to complying with paragraph (a)( 3 4 ) of this section, determine the hourly CO 2 mass emissions according to paragraphs (a)(5)(i) through ( a)(5)( vi) of this section. (i) Implement the applicable procedures in appendix D to part 75 of this chapter to determine hourly EGU heat input rates (MMBtu/h), based on hourly measurements of fuel flow rate and periodic determinations of the gross calorific value (GCV) of each fuel combusted. The fuel flow meter(s) used to measure the hourly fuel flow ra tes must meet the applicable certification and quality

- assurance requirements in sections 2.1.5 and 2.1.6 of appendix D (except for qualifying commercial billing meters). The fuel GCV must be determined in accordance with section 2.2 or 2.3 of appendix D, as applicable. (ii) For each measured hourly heat input rate, use Equation
G

- 4 in Appendix G to part 75 of this chapter to calculate the hourly CO 2 mass emission rate (tons/hr). (iii) Multiply Determine the hourly tons/hr CO 2 mass emission
rate from (tons/ hr) using the procedures specified in paragraph (a)(4)(ii) of this section and multiply it by the EGU or stack operating time in hours (as defined in § 7 2.2 of this chapter),
to convert it to it to tons of CO 2 . Then, multiply the result by 2000 lb/ton to c onvert it to lb. (iv) The hourly CO 2 tons/hr values and EGU (or stack) operating times used to calculate CO 2 mass emissions are required***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 128 of 447 to be recorded under § 7 5.57(e) of this chapter and must be reported electronically under § 7 5.64(a)(6), if required b y a plan. You must use these data, or equivalent data, to calculate the hourly CO 2 mass emissions. (v) Sum all of the hourly CO 2 mass emissions values (lb) from that were calculated according to procedures specified in paragraph (a)(5)(iii) of this section over the entire compliance period. (vi) The owner or operator of an affected EGU may determine site

- specific carbon

- based F

- factors (F c ) using Equation F

- 7b in section 3.3.6 of appendix F to part 75 of this chapter, and may use these F c values in the emissions calculations instead of using the default F c values in the Equation G

- 4 nomenclature. (6) The owner or operator of an affected EGU must install, calibrate, maintain, and operate a sufficient number of watt meters to continuously me asure and record on an hourly basis net electric output. Measurements must be performed using 0.2 accuracy class electricity metering instrumentation and calibration procedures as specified under ANSI Standards No. C12.20. Further, the owner or operator of an affected EGU that is a combined heat and power facility must install, calibrate, maintain and operate equipment to continuously measure and record on an hourly basis useful thermal output and, if applicable, mechanical output, which are used with net e lectric***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 129 of 447 output to determine net energy output. The owner or operator must calculate net energy output according to paragraph (a)(6)(i) of this section. (i) For each operating hour of a compliance period that was used in paragraph (a)( 3 4) or (5 ) of this sec tion to calculate the total CO 2 mass emissions, you must determine P net (the corresponding hourly net energy output in MWh) according to the procedures in paragraphs (a)( 4 6 )(i)(A) and (B) of this section, as appropriate for the type of affected EGU(s). For an operating hour in which a valid CO 2 mass emissions value is determined according to paragraph (a)( 2 4) or (5 ) of this section, if there is no gross or net electrical output, but there is mechanical or useful thermal output, you must still determine the net energy output for that hour. In addition, for an operating hour in which a valid CO 2 mass emissions value is determined according to paragraph (a)( 2 4) or (5 ) of this section, but there is no (i.e., zero) gross electrical, mechanical, or useful thermal output, you must use that hour in the compliance determination. For hours or partial hours where the gross electric output is equal to or less than the auxiliary loads, net electric output shall must be counted as zero for this calculation. (A) Calculate P n et for your affected EGU using the following equation. All terms in the equation must be expressed in units of megawatt

- hours (MWh). To convert each hourly net energy***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 130 of 447 output value reported under part 75 of this chapter to MWh, multiply by the corresponding EGU or stack operating time.
PP

nnnnnn = ( PPPP ) SSSS + ( PPPP ) CC + ( PPPP ) IIII − ( PPPP ) FFFF T DF + [ ( PPPP ) PP + ( PPPP ) HHHH + ( PPPP ) IIII ]

P

net = ( Pe ) ST + ( Pe ) CT + ( Pe ) IE − ( Pe ) A TDF + [ ( Pt ) PS + ( Pt ) HR + ( Pt ) IE ] Where: a

P net = Net energy output of your affected EGU in MWh. (Pe) ST = Electric energy output plus mechanical energy output (if any) of steam turbines in MWh. (Pe) CT = Electric energy output plus mechanical energy output (if any) of stationary combustion turbine(s) in MWh. (Pe) IE = Electric energy output plus mechanical energy output (if any) of your affected EGU’s integrated equipment that provides electricity or mechanical energy to the affected EGU or auxiliary equipment in MWh. (Pe) A = Electric energy used for any auxiliary loads in MWh. (Pt) PS = Useful thermal outp ut of steam (measured relative to SATP conditions, as applicable) that is used for applications that do not generate additional electricity, produce mechanical energy output, or enhance the performance of the affected EGU. This is calculated using the equa tion specified in paragraph (a)(6)( i )(B) of this section in MWh. (Pt) HR = Non steam useful thermal output (measured relative to SATP conditions, as applicable) from heat recovery that is used for applications other than steam generation or performance enhancement of the affected EGU in MWh.***E.O. 12866 Review

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(Pt) IE = Useful thermal output (relative to SATP conditions, as applicable) from any integrated equipment is used for applications that do not generate additional steam, electricity, produce mechanical energy output , or enhance the performance of the affected EGU in MWh.
TDF = Electric Transmission and Distribution Factor of 0.95 for a combined heat and power affected EGU where at least on an annual basis 20.0 percent of the total net energy output consists of electric or direct mechanical output and 20.0 percent of the total net energy output consists of useful thermal output on a 12

- operating month rolling average basis, or 1.0 for all other affected EGUs. P net = Net energy output of your affected EGU in MWh. (Pe) ST = Electric energy output plus mechanical energy output (if any) of steam turbines in MWh. (Pe) CT = Electric energy output plus mechanical energy output (if any) of stationary combustion turbine(s) in MWh. (Pe) IE = Electric energy output plus mechan ical energy output (if any) of your affected EGU’s integrated equipment that provides electricity or mechanical energy to the affected EGU or auxiliary equipment in MWh. (Pe) FW = Electric energy used to power boiler feedwater pumps at steam generating unit s in MWh. (Pt) PS = Useful thermal output of steam (measured relative to SATP conditions, as applicable) that is used for applications that do not generate additional***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 132 of 447 electricity, produce mechanical energy output, or enhance the performance of the affected EGU. This is calculated using the equation specified in paragraph (a)(5)(ii) of this section in MWh. (Pt) HR = Non steam useful thermal output (measured relative to SATP conditions, as applicable) from heat recovery that is used for applications other than steam generation or performance enhancement of the affected EGU in MWh. (Pt) IE = Useful thermal output (relative to SATP conditions, as applicable) from any integrated equipment is used for applications that do not generate additional steam, electricity, p roduce mechanical energy output, or enhance the performance of the affected EGU in MWh.
TDF = Electric Transmission and Distribution Factor of 0.95 for a combined heat and power affected EGU where at least on an annual basis 20.0 percent of the total net energy output consists of electric or direct mechanical output and 20.0 percent of the total net energy output consists of useful thermal output on a 12

- operating month rolling average basis, or 1.0 for all other affected
EGUs.***E.O. 12866 Review

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(B) If applicable to your a ffected EGU (for example, for combined heat and power), you must calculate (Pt) PS using the following equation: ( PPPP ) PP = QQ mm × HH CCCC ( Pt ) PS = Q m × H CF Where:

(Pt) ps = Useful thermal output of steam (measured relative to SATP conditions, as applicable) that is used for applications that do not generate additional electricity, produce mechanical energy output, or enhance the performance of the affected EGU. Q m = Measured steam flow in kilograms (kg) (or pounds (lb)) for the operating hour. H = Enthalpy of the steam at measured temperature and pressure (relative to SATP conditions or the energy in the condensate return line, as applicable) in Joules per kilogram (J/kg) (or Btu/lb). CF = Conversion factor of 3.6 x 10 9 J/MWh or 3.413 x 10 6 Btu/MWh. Q m = Measured steam flow in kilograms (kg) (or pounds (lb)) for the operating hour.
H = Enthalpy of the steam at measured temperature and pressure (relative to SATP conditions or the energy in the condensate return line, as applicable) in Joule s per kilogram (J/kg) (or Btu/lb).
CF = Conversion factor of 3.6 x 10 9 J/MWh or 3.413 x***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 134 of 447 10 6 Btu/MWh.

(ii) [Reserved] (7) In accordance with § 6 0.13(g), if two or more affected EGUs implementing the continuous emissions monitoring provisions in paragraph (a)(1) of this section share a common exhaust gas stack and are subject to the same emissions standard, then the owner or operator may monitor th e hourly CO 2 mass emissions at the common stack in lieu of monitoring each EGU separately. If an owner or operator of an affected EGU chooses this option, then the hourly net electric output for the common stack must be the sum of the hourly net electric output of the individual affected facility and the operating time must be expressed as “stack operating hours” (as defined in § 7 2.2 of this chapter). (8) In acc ordance with § 6 0.13(g), if the exhaust gases from an affected EGU implementing the continuous emissions monitoring provisions in paragraph (a)( 2 3 ) of this section are emitted to the atmosphere through multiple stacks (or if the exhaust gases are routed to a common stack through multiple ducts and you elect to monitor in the ducts), the hourly CO 2 mass emissions and the “stack operating time” (as defined in § 7 2.2 of this chapter) at each stack or duct must be monitored separately. In this case, the owner o r operator of an affected EGU must determine compliance with an applicable emissions***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 135 of 447 standard by summing the CO 2 mass emissions measured at the individual stacks or ducts and dividing by the net energy output for the affected EGU. **§** (b) [Reserved] **§ 6**  **2.1635 0**  **May I bank CO 2**  **annual allowances for future use or transfer**  **?** (a) A CO 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. (b) Any CO 2 allowance that is held i n a compliance account or a general account will remain in such account unless and until the CO 2 allowance is deducted or transferred under § § § 6 2.16240(b), § 62.16335, § 62.16340 , §62.16345 , 62.16355, or 62.16370. **§ 6 2.16355**  **How does the Administrator process account errors?** The Administrator may, at his or her sole discretion and on his or her own motion, correct any error in any Allowance Management Tracking and Compliance System account. Within 10 business days of making su ch correction, the Administrator will notify the authorized account representative for the account. **§ 6 2.16360**  **What are my reporting, notification and submission requirements?**  (a) You must prepare and submit reports according to paragraphs (a) through ( d e ) of this section, as applicable.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 136 of 447 (1) You must meet all applicable reporting requirements and submit reports as required under subpart G of part 75 of this chapter and you must include the following information, as applicable in the quarterly reports: (i) T he hourly CO 2 mass emission rate value (tons/hr) and unit (or stack) operating time, as monitored and reported according to part 75 of this chapter, for each unit or stack operating hour in the compliance period; (ii) The calculated CO 2 mass emissions (ton s) for each unit or stack operating hour in the compliance period; (iii) The sum of the CO 2 mass emissions (tons) for all of the unit or stack operating hours in the compliance period; (iv) The net electric output and the net energy output (P net ) values f or each unit or stack operating hour in the compliance period; and (v) The sum of the hourly net energy output values for all of the unit or stack operating hours in the compliance period
. ; and ( iii vi ) If the report covers the final quarter or a compliance period , then you must include the CO 2 emission standard with which your affected EGU must comply, the affected EGUs calculated emission performance as a cumulative mass in units of the emission standard required, and if an affected EGU is complying with a n emission standard by using allowances , then***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 137 of 447 the designated representative must include in their report a list of all unique allowance serial numbers retired in the compliance period, and, for each allowance, the date an allowance was surrendered and reti red. If If set

- aside allowances were used from an eligible resource by an affected EGU to comply with its emission standard, then the designated representative must include in their report the eligible resource identification information sufficient to demon strates that it meets the requirements of § 6 2.16245 and qualifies to be issued allowance set

- asides (including location, type of qualifying generation or savings, date commenced generating or saving, and date of generation or savings for which the allowan ce was issued). (b) The designated representative of each affected EGU at the facility shall must make all submissions required under the
CO 2 Mass

- based Trading Program, except as provided in § 6 2.16315. This requirement does not change, create an exemption from, or otherwise affect the responsible official submission requirements under a title V operating permit program in parts 70 and 71 of this chapter. (c) You must submit all electronic reports required under paragraph (a) of this section using the Emiss ions Collection and Monitoring Plan System (ECMPS) Client Tool provided by the Clean***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 138 of 447 Air Markets Division in the Office of Atmospheric Programs of
EPA. (d) For affected EGUs under this subpart that are not in the Acid Rain Program, you must also meet the r eporting requirements and submit reports as required under subpart G of part 75 of this chapter, to the extent that those requirements and reports provide applicable data for the compliance demonstrations required under this subpart. (e) If your affected EGU captures CO 2 to meet the applicable emission standard, then you must report in accordance with the requirements of 40 CFR part 98 , subpart PP , of this chapter and either: (1) Report in accordance with the requirements of 40 CFR part 98 , subpart RR , of this chapter , if injection occurs on

site; or (2) Transfer the captured CO 2 to an EGU or facility that reports in accordance with the requirements of 40 CFR part 98 , subpart RR, of this chapter, if injection occurs off

- site. (f) You must prepare and submi t notifications specified in § 7 5.61 of this chapter, as applicable to your affected EGUs. **§ 6 2.16365**  **What are my recordkeeping requirements?** (a) The owner or operator of each affected EGU must maintain the records, as described in paragraphs (a)(1) throu gh and (2) of this section, for at least 5 years following***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 139 of 447 the date of each compliance period, occurrence, measurement, maintenance, corrective action, report, or record. (1) The owner or operator of an affected EGU must maintain each record on site for at least 2 years after the date of each compliance period, compliance true

- up period, occurrence, measurement, maintenance, corrective action, report, or record, whichever is latest, according to § 6 0.7 of this chapter . The owner or operator of an affected EG U may maintain the records off site and electronically for the remaining year(s). (2) The owner or operator of an affected EGU must keep all of the following records: (i) All emissions monitoring information, in accordance with this subpart
. ; (ii) Copies of all reports, compliance certifications, documents, data files, calculations and methods, other submissions and all records made or required under, or to demonstrate compliance with an affected EGU’s emission standard under § 6 2.16220 and any other requirements of, the CO 2 Mass

based Trading Program
. ; (iii) Data that is required to be recorded by 40 CFR part
75 , subpart F
. , of this chapter; and (iv) Data with respect to any allowances used by the affected EGU in its compliance demonstration in cluding the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 140 of 447 information in paragraphs ( c a )(2)(iv)(A) and (B) of this section. (A) All documents related to any set

- aside allowances used in a compliance demonstration, including each eligibility application, EM&V plan, M&V report, and independent verifier verification report associated with the issuance of each specific set

- aside allowance, and each regulatory approval and any documentation that supports the issuance of each set

- aside allowance by the Administrator. (B) All records and reports relating to t he surrender and retirement of allowances for compliance with this regulation, including the date each individual allowance with a unique serial identification number was surrendered and/or retired. **§ 6 2.16370**  **What actions may the Administrator take on sub**  **missions?** (a) The Administrator may review and conduct independent audits concerning any submission under the CO 2 Mass

- based Trading Program and make appropriate adjustments of the information in the submission. (b) The Administrator may deduct CO 2 allowan ces from or transfer CO 2 allowances to a compliance account, based on the information in a submission, as adjusted under paragraph (a )(1 ) of this section, and record such deductions and transfers.
**DEFINITIONS*****E.O. 12866 Review

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**§ §**  **6 2.16375**  **What definitions apply to this sub part?**  The terms used in this subpart shall have the meanings set forth in this section as follows: Acid Rain Program means a multi

- state SO 2 and NO X 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 his or her delegate, 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 state official under an approved state plan that incorporates this subpart. Affected electric generating unit or Affected EGU means a
any steam generating unit, integrated gasification combined cycle ( IGCC ), , or stationary combustion turbine that meets the relevant applicability conditions requirements in section §62.16210
. § § 6 0.5840(b) and 60.5845 of this chapter. An affected EGU is not an eligible resource. Allocate or allocation means, with regard to CO 2 allowances, the determination by the Administrator, State, or permitting authority, in accordance with this subpart or any state***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 142 of 447 allowance

- distribution methodology submitted by the State and approved by the Administrator under § 6 2.16245 of this chapter , to: (1) An affected EGU; (2) A renewable energy set

- aside; (3) An output

- based set

- aside; or (4) An Any other entity not listed in paragraphs (1) through (3) of this definition; specified by the Administrator
. Allowable CO 2 emission rate means, for an affected EGU, the most stringent state or federal CO 2 emission rate limit (in lb/MWhr or, if in lb/mmBtu, converted to lb/MWhr by multiplying it by the affected EGU's heat rate in mmBtu/MWhr) that is applicable to the affected EGU and covers the longest averaging period not exceeding one 1 year. Allowance Tracking and Compliance System (ATCS) means the system by which the Administrator records allocations, deductions, and transfers of CO 2 allowances under the CO 2 Mass

based 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 CO 2 allowances.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 143 of 447 Allowance system means a control program under which the owner or operator of each affected EGU is required to hold an authorization for each specified unit of carbon dioxide emitted from that facility during a specified period and which limits the total amount of such authorizations available to be held for carbon dioxide for a specified period and allows the transfer of such authorizations not used to meet the authorization

- holding requirement. Allowance transfer deadline means, for a compliance period in a given year, midnight of May 1 (if it is a business day), or midnight of the first business day thereafter (if May 1 is not a business day), immediately after such compliance period and is the deadline by which a CO 2 allowance transfer must be submitted for recordation in a facility's compliance account in order to be available for use in complying with the facility's CO 2 emission standard for such compliance period in accordance with
§ § 6 2.16220 and 62.16340. Alternate designated representative means, for a CO 2 Mass

based Trading Program facility and each affected EGU at the facility, the natural person who is authorized by the owners and
oper ators of the facility and all such affected EGUs at the facility, in accordance with this subpart, to act on behalf of the designated representative in matters pertaining to the CO 2 Mass

- based Trading Program. If the facility is also subject to***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 144 of 447 the Acid Ra in Program, TR NO X Annual Trading Program, TR NO X Ozone Season Trading Program, TR SO 2 Group 1 Trading Program, or
TR SO 2 Group 2 Trading Program, then this natural person shall be the same natural person as the alternate designated representative, as defi ned in the respective program. nnual Annual capacity factor means the ratio between the actual heat input to an affected EGU during a calendar year and the potential heat input to the affected EGU had it been operated for 8,760 hours during a calendar year at the base load rating. Also see capacity factor. 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 CO 2 allowances held in the general account and, for a CO 2 Mass

- based Trading facility's compliance account, the designated representative of the facility is the authorized account representative. 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 145 of 447 monitoring system to produce a continuous record of the measured parameters in the measurement units required by this subpart. Base load rating means the maximum amount of heat input (fuel) that an EGU can com bust on a steady state basis, as determined by the physical design and characteristics of the EGU at ISO conditions. For a stationary combustion turbine , base load rating includes the heat input from duct burners. Baseline means the electricity use that wo uld have occurred without implementation of a specific EE measure. [placeholder for biomass] Biomass means biologically based material that is living or dead (e.g., trees, crops, grasses, tree litter, roots) above and below ground, and available on a renew able or recurring basis. Materials that are biologically based include non

- fossilized, biodegradable organic material originating from modern or contemporarily grown plants, animals, or microorganisms (including plants, products, byproducts and residues fr om agriculture, forestry, and related activities and industries, as well as the non

- fossilized and biodegradable organic fractions of industrial and municipal wastes, including gases and liquids recovered from the decomposition of non

- fossilized and biodeg radable organic material).***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 146 of 447 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. Business day means a day that does not fall on a weekend or

a federal holiday. Capacity factor means, as used for the output based set

aside, the ratio of the net electrical energy produced by a generating unit for the period of time considered to the electrical energy that could have been produced at continuous
net summer capacity during the same period. 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 per forms 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 princi pal executive officer or ranking elected official. Clean Air Ac t means the Clean Air Act, 42 U.S.C. 7401, et
seq . CO 2 allowance means a limited authorization issued and allocated by the Administrator under this subpart, or by a State***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 147 of 447 or permitting authorit y under a state allowance

- distribution methodology approved by the Administrator under § 6 0.24(x) of this chapter, to emit one ton of CO 2 during a compliance period of the specified calendar year for which the authorization is allocated or of any calendar year thereafter under the CO 2 Mass

Based Trading Program.
CO 2 allowance deduction or deduct CO 2 allowances means the permanent withdrawal of CO 2 allowances by the Administrator from a compliance account ( e.g. , in order to account for compliance with the CO 2 emission standard).
CO 2 allowances held or hold CO 2 allowances means the CO 2 allowances treated as included in an Allowance Management Tracking and Compliance 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, CO 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, CO 2 allowance transfer in accordance with this subpart.
CO 2 emission goal means a statewide rate

- based CO 2 emission goal or mass

- based CO 2 emission goal specified in § 6 2. 16270 16235
.***E.O. 12866 Review

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CO 2 emissions limitation means the tonnage of CO 2 emissions authorized in a compliance period in a given year by the CO 2 allowances available for deduction for the facility under § 6 2.16340(a) for such compliance period.
CO 2 Mass

- Based Trading Program means a multi

- state CO 2 air pollution control and emis sion reduction program established in accordance with this subpart and subpart UUUU of part 60 of this chapter (including such a program that is revised in a State plan or state allowance distribution methodology, or by the Administrator under subpart UUUU of part 60 of this chapter , as a means of controlling CO 2 emissions. Coal means all solid fuels classified as anthracite, bituminous, subbituminous, or lignite by the American Society of Testing and Materials in ASTM D388 (incorporated by reference,

see §60.17), coal refuse, and petroleum coke. Synthetic fuels derived from coal for the purpose of creating useful heat, including but not limited to solvent

- refined coal, gasified coal (not meeting the definition of natural gas), coal

- oil mixtures, and coal

- w ater mixtures are included in this definition for the purposes of this subpart. Coal

- derived fuel means any fuel (whether in a solid, liquid, or gaseous state) produced by the mechanical, thermal, or chemical processing of coal.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 149 of 447 Coal means the definition as defined in subpart TTTT of part 60 of this chapter. Combined cycle unit means an electric generating unit that

uses a stationary combustion turbine from which the heat from the turbine exhaust gases is recovered by a heat recovery steam generating unit to generate additional electricity. Combined heat and power unit or CHP unit , ( also known as “cogeneration” ) means an electric generating unit that use uses a
steam

- generating unit or stationary combustion turbine to simultaneously produce both electric (or mechanical) and useful thermal output from the same primary energy facility. Common practice baseline or ( CPB ) means a baseline derived based on a default technology or condition that would have been in place at the time of implementation of an EE measure in the absence of the EE measure (for example, the standard or market

average or pre - existing equipment that a typical consumer/building owner would have continued to use or would have installed at the time of project implementation in a given circumstanc e, such as a given building type, EE program type or delivery mechanism, and geographic region). Common stack means a single flue through which emissions from 2 or more units are exhausted. Compliance account means an Allowance Management Tracking and Compliance System account, established by the Administrator***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 150 of 447 for a CO 2 annual facility under this subpart, in which any CO 2 allowance allocations to the affected EGUs at the facility are recorded and in which are held any CO 2 allowances available for use fo r a compliance period in a given year in complying with the facility's CO 2 emission standard in accordance with § § 6 2.16220 and 62.16340. Compliance period means the multi

- year periods starting January 1 of the first calendar year of the period, except as provided in § 6 2.16220(c)(3), and ending on December 31 of the last calendar year, inclusive: (1) Compliance Period 1 means the period of three 3 calendar years from January 1 2022 to December 31, 2024. (2) Compliance Period 2 means the period of three 3 cal endar years from January 1, 2025 to December 31, 2027. (3) Compliance Period 3 means the period of two 2 calendar years from January 1, 2028 to December 31, 2029. Conservation voltage regulation (or reduction) or CVR means an EE measure that produces electricity savings by reducing (or regulating) voltage at the electrical feeder level. Continuous emission monitoring system or ( CEMS ) means the equipment required under this subpart to sample, analyze, measure, and pro vide, 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 CO 2 emissions,***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 151 of 447 stack gas volumetric flow rate, stack gas moisture content, and
O 2 concentration (as applicable), in a manner consistent with part 75 of this chapter and § § 6 2.xx30 through 62.xx35. 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; (2) A moisture monitoring system, as defined in § 75.11(b)(2) of this chapter and providing a permanent, continuous record of the stack gas moisture content, in percent
H 2 O; (3) A CO 2 monitoring system, consisting of a CO 2 pollutant concentration monitor (or an O 2 monitor plus suitable mathematical equations from which the CO 2 concentration is derived) and an automated data acqu isition and handling system and providing a permanent, continuous record of CO 2 emissions, in percent CO 2 ; and (4) An O 2 monitoring system, consisting of an O 2 concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record of
O 2 , in percent O 2 .***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 152 of 447 Control area operator means an electric system or systems, bounded by interconnection metering and telemetry, capable of controlling generation to maintain its interchange schedule with other control areas and contributing to frequency regulation of the interconnection. Deemed savings means estimates of average annual electricity savings for a single unit of an installed demand

side EE measure that : (a) has been developed from data sources (such as prior me tering studies) and analytical methods widely considered acceptable for the measure , and (b) is applicable to the situation and conditions in which the measure is implemented. Individual parameters or calculation methods also can be deemed, including EUL v alues. Common sources of deemed savings values are previous evaluations and studies that involved actual measurements and analyses. Deemed savings values are applicable for specific demand

- side EE measures. A single deemed savings value may not be used for a program as a whole, nor for a multi

- measure project, because of the degree of variation in how systems are used in different building types or market segments. Demand

- side energy efficiency or demand

– side EE means energy efficiency activities, projects , programs or measures resulting in electricity savings.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 153 of 447
Derate mea ns a d ecrease in the available capacity of an electric generating unit, due to a a system or equipment modification or to discounting a portion of a generating units capacity for planning purposes. Designated representative means, for a CO 2 Mass

- based Trading facility and each affected EGU at the facility, the natural person who is aut horized by the owners and operators of the facility and all such affected EGUs at the facility, in accordance with this subpart, to represent and legally bind each owner and operator in matters pertaining to the CO 2 Mass

- based Trading Program. If the CO 2 Mass

- based Trading facility is also subject to the Acid Rain Program, TR NO X Annual Trading Program,
TR NO X Ozone Season Trading Program, TR SO 2 Group 1 Trading Program, or TR SO 2 Group 2 Trading Program, then this natural person shall be the same natural person as the designated representative, as defined in the respective program. Design efficiency means the rated overall net efficiency (e.g., electric plus thermal output) on a higher heating value basis of the EGU at the base load rating and ISO conditi ons. Distillate oil means fuel oils that comply with the specifications for fuel oil numbers 1 and 2, as defined by the American Society of Testing and Materials in ASTM D396 (incorporated by reference, see §60.17); diesel fuel oil numbers 1 and 2, as def ined by the American Society for Testing and***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 154 of 447 Materials in ASTM D975 (incorporated by reference, see §60.17); kerosene, as defined by the American Society of Testing and Materials in ASTM D3699 (incorporated by reference, see §60.17); biodiesel as defined b y the American Society of Testing and Materials in ASTM D6751 (incorporated by reference, see §60.17); or biodiesel blends as defined by the American Society of Testing and Materials in ASTM D7467 (incorporated by reference, see §60.17). Effective useful life or EUL Distillate oil means the definition as defined in subpart TTTT of part 60 of this chapter. Energy efficiency program or EE program means organized activities sponsored and funded by a particular entity to promote the adoption of one or more EE project or EE measure for the purpose of reducing electricity use. Energy efficiency project or EE project means a combination of multiple technologies, energy

- use practices or behaviors implemented at a single facility or premises for the purpose of reducing electricity use; EE projects may be implemented as part of an EE program or as an independent privately

- funded action. Energy efficienc y measure or EE measure means a single technology, energy

- use practice or behavior that, once implemented or adopted, reduces electricity use of a particular end

- use, facility, or premises; EE measures may be implemented***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 155 of 447 as part of an EE program or as an i ndependent privately

- funded action. Effective useful life (EUL) means the duration over which electricity savings from an EE measure occur, reported in years. EUL values are typically specific to individual EE projects but also may be specified by EE prog ram. Electricity savings means the savings that results from a change in electricity use resulting from the implementation of
an EE measure. Eligibile Eligible resource means a resource that meets the requirements of § 6 2.16245 and has been registered with the EPA

administered ATCS or an allowance tracking system approved in a State plan by the EPA. An eligible resource is not an affected
EGU
. EM&V plan means a an evaluation measurement and verification plan that meets the requirements of § 6 2.16260. Emissions means air pollutants exhausted from an affected EGU or facility into the atmosphere , as ; emissions must be measured, recorded, and reported to the Administrator by the designated representative, and as modified by the Administrator: (1) In accord ance with this subpart; and (2) With regard to a period before the affected EGU or facility affected EGU is required to measure, record, and report***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 156 of 447 such air pollutants in accordance with this subpart, in accordance with part 75 of this chapter. Eligible res ource Emission rate credit (ERC) means a

resource tradable compliance instrument that meets the requirements of § 62.16245 and has been registered with the EPA

administered ATCS 6 0.5790(c) of this chapter. Energy service company means a private enterprises e ngaged in delivering electricity savings directly for an end

- use
customer or an allowance tracking system approved in a state plan by the EPA. An eligible resource is not as an affected
EGU. agent of a sponsoring entity such as a utility. Essential generating characteristics means any characteristic that affects the eligibility of the qualifying energy generating facility for generating allowances pursuant to this regulation, including the type of facility. Excess emissions means any ton of emissions from the affected EGUs at a facility during a compliance period that exceeds the CO 2 emissions limitation for the facility for such compliance period. Existing state program, requirement, or measure means, in the context of a State plan, a regulation, req uirement, program, or measure administered by a state, utility, or other entity that is currently established. This may include a regulation or other legal requirement that includes past, current, and future***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 157 of 447 obligations, or current programs and measures th at are in place and are anticipated to be continued or expanded in the future, in accordance with established plans. An existing state program, requirement, or measure may have past, current, and future impacts on EGU CO 2 emissions. Facility means all buil dings, 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. Final period means the period that begins on January 1, 2030 and continues thereafter. The final period is comprised of final complianc e periods, each of which is two 2 calendar years (with a calendar year beginning on January 1 and ending on December 31). Final compliance period means a compliance period within the final period, each being two 2 calendar years (with a calendar year beginni ng on January 1 and ending on December 31), and the first final compliance period beginning on January 1, 2030 and ending December 31, 2031. Fossil fuel means natural gas, petroleum, coal, and any form of solid, liquid, or gaseous fuel derived from such***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 158 of 447

m aterial for the purpose definition as defined in subpart TTTT of part 60 of creating useful heat this chapter
. Fossil

- fuel

- fired means, with regard to an affected EGU, combusting any amount of fossil fuel in $$$YYYY or any calendar year thereafter
. Gaseous fuel means any fuel that is present as a gas at ISO conditions and includes, but is not limited to, natural gas, refinery fuel gas, process gas, coke

- oven gas, synthetic gas, and gasified coal. the definition as defined in subpart TTTT of part 60 of this ch apter. General account means an Allowance Management Tracking and Compliance System account established under this subpart that is not a compliance account. Generation year means a calendar year for which a renewable energy project submits its projected generation to the Administrator by June 1 of the preceding year for allowances from the renewable energy set

- aside. Generation period means the compliance period from which
t he Administrator uses operations data of affected EGUs to calculate allowances from the output

- based allocation set

- aside for the following compliance period.
Generator means a device that produces electricity. Gross electrical output means, for an affect ed EGU, electricity made available for use, including any such***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 159 of 447 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 affected EGU and any on

- site emissi on controls). Heat input means, for an affected EGU 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 affected EGU multiplied by the fuel feed rate (in lb of fuel/time), as

measu red, 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 i nput rate means, for an affected EGU, the amount of heat input (in mmBtu) divided by affected EGU operating time (in hr) or, for an affected EGU and a specific fuel, the amount of heat input attributed to the fuel (in mmBtu) divided by the affected EGU operating time (in hr) during which the affected EGU combusts the fuel.
Heat rate means, for an affected EGU, the affected EGU's maximum design heat input (in Btu/hr), divided by the product of 1,000,000 Btu/mmBtu and the affected EGU's maximum hourly load
. Heat recovery steam generating unit (HRSG) means a unit in which hot exhaust gases from the combustion turbine engine are***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 160 of 447 routed in order to extract heat from the gases and generate useful output. Heat recovery steam generating units can be used with or without duct burners. Indian country means “Indian country” as defined in 18 U.S.C. 1151. Integrated gasification combined cycle facility or IGCC facility means a combined cycle facility that is designed to burn fuels containing 50 percent (by heat input) or more solid

derived fuel not meeting the definition of natural gas plus any integrated equipment that provides electricity or useful thermal output to either the affected facility or auxiliary equipment. The Administrator may waive the 50 percent solid

- d erived fuel requirement during periods of the gasification system construction, startup and commissioning, shutdown, or repair. No solid fuel is directly burned in the unit during operation. Interim period means the period of eight 8 calendar years from Jan uary 1, 2022 to December 31, 2029. The interim period is comprised of three compliance periods, compliance period 1, compliance period 2, and compliance period 3
.. . ISO conditions means 288 Kelvin (15 o C), 60 percent relative humidity and 101.3 kilopascals pressure. Liquid fuel means any fuel that is present the definition as a liquid at ISO conditions and includes, but is not limited to,***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 161 of 447 distillate oil and residual oil. defined in subpart TTTT of part 60 of this chapter. M&V report means a monitoring and ve rification report that meets the requirements of § 6 2.16265. Maximum design heat input means, for an affected EGU, the maximum amount of fuel per hour (in Btu/hr) that the affected EGU is capable of combusting on a steady state basis as of the initial installation of the affected EGU as specified by the manufacturer of the affected EGU. Mechanical output means the useful mechanical energy that is not used to operate the affected facility, generate electricity and/or thermal output, or to enhance the per formance of the affected facility. Mechanical energy measured in horsepower hour should be converted into MWh by multiplying it by 745.7 then dividing by 1,000,000. 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 gen erating 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 162 of 447 deratings) as of such installation as specified by the manufa cturer 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 c ontinuous 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 the definition as de fined in subpart TTTT of part 60 of this chapter.
Net

- electric output means a fluid mixture of hydrocarbons the amount of gross generation the generator(s) produce (including, but not limited to, output from steam turbine(s), combustion turbine(s), and gas expander(s)), as measured at the generator terminals, less the electricity used to operate the plant (i.e., auxiliary loads); such uses include fuel handling equipment, pumps, fans, pollution control equipment, other electricity needs, and transformer loss es as measured at the transmission side of the step up transformer (e.g., methane, ethane, the point of sale). Net energy output means: (1) The net electric or propane), composed of mechanical output from the affected facility, plus 100 percent of the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 163 of 447 usefu l thermal output measured relative to SATP conditions that is not used to generate additional electric or mechanical output or to enhance the performance of the affected EGU (e.g., steam delivered to an industrial process for a heating application); and (2) For combined heat and power facilities where at least 70 percent methane 20.0 percent of the total gross or net energy output consists of electric or direct mechanical output and at least 20.0 percent of the total gross or net energy output consists of useful thermal output on a 12

- operating month rolling average basis, the net electric or mechanical output from the affected EGU divided by 0.95, plus 100 percent of the useful thermal output; (e.g., steam delivered to an industrial process for a heating a pplication). Net summer capacity means the maximum output, commonly expressed in megawatts (MW), that generating equipment can supply to system load, as demonstrated by a multi

- hour test, at the time of summer peak demand (period of June 1 through Septembe r 30.) This output reflects a reduction in capacity due to electricity use for station service or auxiliaries. Operate or operation means, with regard to an affected EGU, to combust fuel. Operator means, for a CO 2 Mass

- based Trading facility or an affected EGU at a facility respectively, any person who***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 164 of 447 operates, controls, or supervises an affected EGU at the facility or the affected EGU and includes, but is not limited to, any holding company, utility system, or plant manager of such facility or affected EG U.
Owner means, for a CO 2 Mass

- based Trading facility or an affected EGU at a facility respectively, any of the following persons: (1) Any holder of any portion of the legal or equitable title in an affected EGU at the facility or the affected EGU; (2) Any holder of a leasehold interest in an affected EGU at the facility or the affected EGU, provided that, unless expressly provided for in a leasehold agreement, “owner” does 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 affected EGU; and (3) Any purchaser of power from an affected EGU at the facility or the affected EGU under a life

- of

- the

- unit, firm
power contractual arrangement. Permanently retired means, with regard to an affected EGU, an affected EGU that is unavailable for service and for which the affected EGU's owners and operators (1) have taken on as enforceable obligations in the operating permit that covers the affected EGU the conditions of 62.16215, or (2) rescinded or***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 165 of 447 otherwise terminated all permits required for construction or operation of the affected EGU under the Clean Air Act. Cessations in operations that do not meet this definition do n ot constitute permanent retirements
. Qualified biomass means a biomass feedstock that is demonstrated as a method to control increases of CO 2 levels in the atmosphere. Random error means errors occurring by chance that may cause electricity savings values to be inconsistently overestimated or underestimated, and may result from a change in electricity use due to unaccounted

- for factors that affect electricity use. The magnitude of random error can be quantified based on the variations observed across diffe rent units. 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 CO 2 allowances, the moving of CO 2 allowances by the Administrator into, out of, or between Allowance Tracking and Compliance***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 166 of 447 System accounts, for purposes of allocation, transfer, or deduction. Reference method means any direct test method of sampling and analyzing for an air pollutant as specified in § 7 5.22 of this chapter. Replace ment , replace , or replaced means, with regard to an affected EGU, the demolishing of an affected EGU, or the permanent retirement and permanent disabling of an affected EGU, and the construction of another affected EGU (the replacement affected EGU) to be used instead of the demolished or retired affected EGU (the replaced affected EGU). Solid fuel means any fuel that has a definite shape and volume or that has a , has no tendency to flow or disperse under moderate stress, and is not liquid or gaseous at IS O conditions. This includes, but is not limited to, coal, biomass, and pulverized solid fuels. Solid waste incineration unit means a stationary, fossil

fuel

- fired boiler or stationary, fossil

- fuel

- fired combustion turbine that is a “solid waste incinerati on unit” as defined in section 129(g)(1) of the Clean Air Act. Systematic error means inaccuracies in the same direction, causing electricity savings values to be consistently either overestimated or underestimated, and may result from factors***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 167 of 447 such as inco rrect assumptions, a methodological issue, or a flawed reporting system. Standard ambient temperature and pressure (SATP) conditions means 298.15 Kelvin (25 o C, 77 o F)) and 100.0 kilopascals (14.504 psi, 0.987 atm) pressure. The enthalpy of water at SATP conditions is 50 Btu/lb. State agent means an entity acting on behalf of the State , with the legal authority of the State
. State measures means measures that the State adopts and implements as a matter of state law. Such measures are enforceable only per state law, and are not included in and codified as part of the federally enforceable State plan. Stationary combustion turbine means all equipment, including but not limited to the turbine engine, the fuel, air, lubrication and exhaust gas systems, control systems (except emissions control equipment), heat recovery system, fuel compressor, heater, and/or pump, post

- combustion emissions control technology, and any ancillary components and sub

components comprising any simple cycle stationary combustion turbi ne, any combined cycle combustion turbine, and any combined heat and power combustion turbine based system plus any integrated equipment that provides electricity or useful thermal output to the combustion turbine engine, heat recovery system or auxiliary equipment. Stationary means that the combustion***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 168 of 447 turbine is not self

- propelled or intended to be propelled while performing its function. It may, however, be mounted on a vehicle for portability. If a stationary combustion turbine burns any solid fuel direc tly then it is considered a steam generating unit. Steam generating unit means any furnace, boiler, or other device used for combusting fuel and producing steam (nuclear steam generators are not included) plus any integrated equipment that provides electri city or useful thermal output to the affected facility or auxiliary equipment. 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. Transmission and distribution loss means the difference between the quantity of electricity that serves a load (measured at the busbar of the generator) and the actual electricity use***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 169 of 447 at the final distribution location (measured at the on

- site

me ter). Transmission and distribution measures or T&D measures means EE measures intended to improve the efficiency of the electrical transmission and distribution system by decreasing electricity loses on the system. Unit operating day means, with regard t o an affected EGU, a calendar day in which the affected EGU combusts any fuel. Unit operating hour or hour of unit operation means, with regard to an affected EGU, an hour in which the affected EGU combusts any fuel. Uprate means an i ncrease in available e lectric generating unit power capacity due to a system or equipment modification. Useful thermal output means the thermal energy made available for use in any heating application (e.g., steam delivered to an industrial process for a heating application, i ncluding thermal cooling applications) that is not used for electric generation, mechanical output at the affected EGU, to directly enhance the performance of the affected EGU (e.g., economizer output is not useful thermal output, but thermal energy used t o reduce fuel moisture is considered useful thermal output), or to supply energy to a pollution control device at the affected EGU. Useful thermal output for affected EGU(s) with no condensate return (or other thermal energy input to the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 170 of 447 affected EGU(s)) o r where measuring the energy in the condensate (or other thermal energy input to the affected EGU(s)) would not meaningfully impact the emission rate calculation is measured against the energy in the thermal output at SATP conditions. Affected EGU(s) with meaningful energy in the condensate return (or other thermal energy input to the affected EGU) must measure the energy in the condensate and subtract that energy relative to SATP conditions from the measured thermal output. Utility power distribution system means the portion of an electricity grid owned or operated by a utility and dedicated to delivering electricity to customers. Valid data means quality

- assured data generated by continuous monitoring systems that are installed, operated, and maintain ed according to part 75 of this chapter. For CEMS, the initial certification requirements in § 7 5.20 of this chapter and appendix A to part 75 of this chapter must be met before quality

- assured data are reported under this subpart; for on

going quality ass urance, the daily, quarterly, and semiannual/annual test requirements in sections 2.1, 2.2, and 2.3 of appendix B to part 75 of this chapter must be met and the data validation criteria in sections 2.1.5, 2.2.3, and 2.3.2 of appendix B to part 75 of this c hapter apply. For fuel flow meters, the initial certification requirements in section 2.1.5 of appendix D to part 75 of this chapter must be met before***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 171 of 447 quality

- assured data are reported under this subpart (except for qualifying commercial billing meters un der section 2.1.4.2 of appendix D), and for on

- going quality assurance, the provisions in section 2.1.6 of appendix D to part 75 of this chapter apply (except for qualifying commercial billing meters). Verification report means a report that meets the requirements of § 6 2.16270.
Waste

- to

- Energy means a process or unit (e.g., solid waste incineration unit) that recovers energy from the conversion or combustion of waste stream materials, such as municipal solid waste, to gen erate electricity and/or heat. **§ 6 2.16380 Measurements, abbreviations, and acronyms.**  The measurements, abbreviations, and acronyms used in this subpart are defined as follows:
ADR

- alternated designated representative
Btu

— British thermal unit
CO 2 — carbon dioxide
COI

— conflict of interest
CPP

— clean power plan
CVR

- conservation voltage regulation
DR

- designated representative
EE

— energy efficiency
EGU

- electric generating unit
EM&V

- evaluation, measurement, and verification***E.O. 12866 Review

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GCV

- gross calorific value between 35
GJ

- giga joule
H 2 O

— water hr

— hour
IGCC

- integrated gasification combined cycle kg

- kilogram kW

— kilowatt electrical kWh

— kilowatt hour lb

— pound
M&V

– measurement and 41 megajoules (MJ) per dry verification
mmBtu

—million Btu
MWe

—megawatt electrical MWh

—megawatt hour
O 2 — oxygen
PB

- MV

- project

- based measurement and verification
PSD

- prevention of significant deterioration
T&D

- transmission and distribution
TRM

- technical reference manual
yr — year 5. Add subpart NNN to read as follows: **Subpart NNN: Greenhouse Gas Emissions Rate -**  **based Model Trading Rule for Electric Utility Generating Units that Commenced**  **Construction on or Before January 8, 2014**
**Sec.*****E.O. 12866 Review

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**INTRODUCTION** 62.16405 What is the purpose of this subpart? **Applicability of this Subpa rt**  62.16410 Am I subject to this subpart? 62.16415 What are the requirements for retired affected EGUs? **General Requirements** 62.16420 What emission standards and requirements must I comply with? 62.16425 How should I compute time under the CO 2 Rate

- based Trading Program? 62.16430 What are the administrative appeal procedures? 62.16431 How will the Clean Energy Incentive Program be administered under the federal plan? **Emission Rate Credit Issuance, Adjustment ,**  **and Revocation** 62.16434 What affected EGUs qualify for generation of ERCs? 62.16435 What eligible resources qualify for generation of ERCs in addition to affected EGUs? 62.16440 What is the process for revocation of qualification status of an eligible resource? 62.16445 What is the process for the issuance of ERCs? 62.16450 What is the process for error adjustments or misstatement, and suspension of ERC issuance? **Evaluation Measurement and Verification Plans, Monitoring and Verification Reports, and Verification**  62.16455 What are the requirements for evaluation measurement and verification plans for eligible resources? 62.16460 What are the requirements for monitoring and verification reports for eligible resources? 62.16465 What are the requirements for verification reports? 6 2.16470 What is the accreditation procedure for independent verifiers? 62.16475 What are the procedures of accredited independent verifiers must follow to avoid conflict of interest? 62.16480 What is the process for the revocation of accreditation status f or an independent verifier? **Designated Representatives*****E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 174 of 447 62.16485 How are designated representatives and alternate designated representatives authorized? What role do authorized designated representatives and alternate designated representatives play? 62. 16490 What responsibilities do designated representatives and alternate designated representatives hold? 62.16495 What are the processes for changing designated representatives, alternate designated representatives, owners and operators, and affected EGUs ? 62.16500 What must be included in a certificate of representation? 62.16505 What is the Administrator’s role in objections concerning designated representatives and alternate designated representatives? 62.16510 What process must designated representatives and alternate designated representatives follow to delegate their authority? **Monitoring, Recordkeeping, Reporting** 62. 16515 How are compliance accounts and general accounts established and used, and how is ERC issuance documentation access ed? 62.16525 How must transfers of ERCs be submitted? 62.16530 When will ERC transfers be recorded? 62.16535 How will deductions for compliance with a CO 2 emission standard cubic meter (950 and 1,100 Btu per dry occur? 62.16540 What monitoring requirements must I comply with? 62.16545 May I bank CO 2 ERCs for future use or transfer? 62.16550 How does the Administrator process account errors? 62.16555 What are my reporting, notification and submission requirements? 62.16560 What are my recordkeeping requirements? 62.16565 What actions may the Administrator take on submissions? **Definitions** 62.16570 What definitions apply to this subpart? 62.16575 What measurements, abbreviations, and acronyms apply to this subpart? Table 1 to Subpart NNN of Part 62

— CO 2 Emission Standards (Pounds of CO 2 Per Net MWh) Table 2 to Subpart NNN of Part 62

— Incremental Generation Factor for Emission Rate Credits
**INTRODUCTION*****E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 175 of 447 **§ 6 2.16405 What is the purpose of this subpart?**  ( a) This subpart sets forth the requirements for the Clean Power Plan (CPP) CO 2 Rate

- based Trading Program, under section 111 of the Clean Air Act and subpart UUUU of part 60 of this chapter, as a means of meeting emission guidelines limiting greenhouse gas emissions from an affected steam generating unit, integrated gasification combined cycle (IGCC), or stationary combustion turbine. (b) The pollutants regulated by this subpart are greenhouse gases. The greenhouse gas limitations in this subpart are in the form of an emission standa rd for carbon dioxide (CO2). (c) PSD and Title V Thresholds for Greenhouse Gases. (1) For the purposes of 40 CFR 51.166(b)(49)(ii) of this chapter, with respect to GHG emissions from affected facilities, the “pollutant that is subject to the standard pro mulgated under section 111 of the Act” shall be considered to be the pollutant that otherwise is subject to regulation under the Act as defined in 40 CFR 51.166(b)(48) of this chapter and in any state implementation plan approved by the EPA that is interpr eted to incorporate, or specifically incorporates, 40 CFR 51.166(b)(48) of this chapter. (2) For the purposes of 40 CFR 52.21(b)(50)(ii) of this chapter, with respect to GHG emissions from affected facilities, the “pollutant that is subject to the standar d promulgated under***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 176 of 447 section 111 of the Act” shall be considered to be the pollutant that otherwise is subject to regulation under the Act as defined in 40 CFR 52.21(b)(49) of this chapter. (3) For the purposes of 40 CFR 70.2 of this chapter, with respect to greenhouse gas emissions from affected facilities, the “pollutant that is subject to any standard promulgated under section 111 of the Act” shall be considered to be the pollutant that otherwise is "subject to regulation" as defined in 40 CFR 70.2 of th is chapter. (4) For the purposes of 40 CFR 71.2 of this chapter, with respect to greenhouse gas emissions from affected facilities, the “pollutant that is subject to any standard promulgated under section 111 of the Act” shall be considered to be the poll utant that otherwise is "subject to regulation" as defined in 40 CFR 71.2 of this chapter.
**APPLICABILITY OF THI S SUBPART**  **§ 6**  **2.16410 Am I subject to this subpart?** (a) You are subject to this subpart if you are the owner or operator of an affected electric generating unit (EGU) located within a State that has incorporated by reference this subpart as a State plan, or portion of a State plan, that has been approved by the Administrator and is effective under subpart UUUU of part 60 of this chapter, or if this subpart is***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 177 of 447 promulgated and effective as a federal plan in your State under part 62 of this chapter. (b) An affected EGU is any steam generating unit, IGCC, or
st ationary combustion turbine that meets the applicability requirements in § § 6 0.5840(b) and 60.5845 of this chapter. **§ 6 2.16415 What are the requirements for retired affected EGUs?**  (a)(1) Any affected EGU that is permanently retired as defined in § 62.1657 0 is exempt from §§ 62.16420(c)(1) [CO 2 Emissions Requirements], 62.16535 [Compliance Requirements], 62.16540 [Monitoring], 62.16555 [Reporting], and 62.16560 [Recordkeeping]. (2) The exemption under paragraph (a)(1) of this section will become effective on the first day of the compliance period immediately following the compliance period in which the retirement took effect. Within 30 days of the affected EGU's permanent retirement, the designated representative must submit a statement to the Administrator . The statement must state, in a format prescribed by the Administrator, that the affected EGU was permanently retired on a specified date and will comply with the requirements of paragraph (b) of this section. (b) Special provisions
. (1) An affected EGU e xempt under paragraph (a) of this section must not emit any CO 2 , starting on the date that the exemption takes effect.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 178 of 447 (2) For a period of 5 years from the date the records are created, the owners and operators of an affected EGU exempt under paragraph (a) of this section must retain, at the affected EGU, records demonstrating that the affected EGU 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 Administrato r. The owners and operators bear the burden of proof that the affected EGU is permanently retired. (3) The owners and operators and, to the extent applicable, the designated representative of an affected EGU exempt under paragraph (a) of this section must comply with the requirements of the CO 2 Rate

- based Trading Program accruing during any compliance periods for which the exemption is not in effect, even if such requirements must be complied with after the exemption takes effect. **GENERAL REQUIREMENTS § 6**  **2. 16420**  **What emission standards and requirements must I comply with?**  (a) Designated representative requirements
. The owners and operators must have a designated representative, and may have an alternate designated representative, in accordance with § § 6 2.16485 through 62.16495. (b) Emissions monitoring, reporting, and recordkeeping requirements
. (1) The owners and operators, and the designated***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 179 of 447 representative, of affected EGU must comply with the monitoring, reporting, and recordkeeping requirements of § § 62.16540, 62.16555, and 62.16560. (2) The emissions data determined in accordance with § 6 2.16540 must be used to determine compliance with the CO 2 emission standard under paragraph (c) of this section, provided that, for each monitoring location from whi ch emissions are reported, the emission rate used in determining compliance must be the CO 2 emission rate at the monitoring location determined in accordance with paragraph (c) of this section. (c) CO 2 emission standard requirements
. (1) Each designated representative for each affected EGU must demonstrate compliance with its emission standard listed in Table 1 of this subpart, as applicable, by calculating a CO 2 emission rate by factoring stack emissions and any emission rate credits (ERCs) into the foll owing equation:

CO 2 emission rate = ∑ M CO2 ∑ MWh op + ∑ MWh ERC Where:

CO 2 emission rate = An affected EGU ’ s calculated CO 2 emission rate that will be used to determine compliance with the applicable CO 2 emission standard. M CO2 = Measured CO 2 mass in units of pounds (lbs) summed over the compliance period for an affected EGU. MWh op = Total net energy output over the compliance***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 180 of 447 period for an affected EGU in units of MWh. MWh ERC = ERC replacement generation for an affected EGU in units of MWh (ERCs are denominated in whole integers as specified in paragraph (c)(2) of this section). (2) An emission rate credit (ERC) qualifies for the compliance demonstration specified in paragraph (c)(1) of this section if it: (i) Has a unique serial number; (ii) Repres ents one whole MWh of actual energy generated or saved with zero associated carbon dioxide emissions; (iii) Was issued to an eligible resource that meets the requirements of § 6 2.16435 or to an affected EGU that meets the requirements of § 6 2.16434, by the Administrator through an ERC tracking system or the Allowance Tracking and Compliance System; and (iv) Was surrendered and retired only once for purposes of compliance with this regulation by the Administrator through an ERC tracking system or the Allowan ce Tracking and Compliance System. (3) An ERC does not qualify for the compliance demonstration specified in paragraph (c)(1) of this section if it does not meet the requirements of paragraph (c)(2) of this section or if any State has used that same ERC fo r purposes of demonstrating achievement of its state measures.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 181 of 447 (4) As of the ERC transfer deadline for a compliance period, the owners and operators of each affected EGU must hold, in the affected EGU's compliance account, sufficient ERCs to demonstrate co mpliance with its applicable emission standard listed in Table 1 of this subpart pursuant to the requirement of paragraph (c)(1) of this section. (5) If an affected EGU exceeds its emission standard during a compliance period, then: (i) The owners and oper ators of the affected EGU must hold ERCs required for deduction under § 6 2.16535(e); (ii) The owners and operators of the affected EGU are subject to federal enforcement pursuant to sections 113(a)

– (h), and section 304, of the Clean Air Act, and the United States, States, and other persons have the ability to enforce against violations ( including if an affected EGU does not meet its emission standard based on its emissions, or use of ERCs that meet the compliance demonstration in § 6 2.16420 (c)(2)) and secure appropriate corrective actions, and the owners and operators must pay any fine, penalty, or assessment or comply with any other remedy imposed, for the same violations, under the Clean Air Act, and each day of such compliance period will constitute a separate violation of this subpart and the Clean Air Act;***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 182 of 447 (iii) If an affected EGU do es not meet its emission standard because it did not meet the emissions standard based on its stack emissions and generation alone and it did not obtain sufficient qualifying ERCs to meet its emission standard by July 1 of the year following the relevant c ompliance period, then it may be subject to federal enforcement pursuant to Sections 113(a)

– (h), 42 U.S.C. § 7413(a)

- (h), and Section 304 of the Clean Air Act, 42 U.S.C. § 7604, and the United States, states, and other persons have the ability to enforce violations and secure corrective actions; and (iv) If an affected EGU obtained sufficient facially valid ERCs to meet its emission standard, but those ERCs were found to be invalid, then it may be subject to federal enforcement as specified in (c)(5)(iii) of this section. (d) Compliance periods
. An affected EGU will be subject to the requirements under paragraph (c)(1) of this section for the compliance period starting on January 1, 2022, and for each compliance period thereafter. (1) Vintage of ERCs held for compliance. An ERC held for compliance with the requirements under paragraph (c)(1) of this section for a compliance period must be an ERC that was issued for a year in such compliance period or for a year in a prior compliance period.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 183 of 447 (2) Allowance Tracking and Compliance System (ATCS). Each ERC must be held in, deducted from, transferred into, out of, or between ATCS accounts in accordance with this subpart. (3) Limited authorization. (i) An ERC shall only be used in accordance with the CO 2 Rate

- bas ed 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. (4) Property right. An ERC does not constitute a property right. (e) Title V permit requirements
. (1) Unless otherwise specified in this paragraph, all requirements of this subpart shall be applicable requirem ents that must be included in an affected EGU’s title V permit. (2) The applicable requirements of this subpart, as well as other terms or conditions necessary to ensure compliance with the applicable requirements, may be added to, or changed in, a title V permit using minor permit modification procedures in accordance with § § 7 0.7(e)(2) and 71.7(e)(1) of this chapter, provided that such changes do not conflict with any existing terms of the permit. This paragraph explicitly provides that the addition of, o r change to, an affected EGU's description as***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 184 of 447 described in the prior sentence is eligible for minor permit modification procedures in accordance with § § 7 0.7(e)(2)(i)(B) and 71.7(e)(1)(i)(B) of this chapter. (3) No title V permit revision will be required for any crediting, holding, deduction, or transfer of ERCs in accordance with this subpart, provided that the requirements applicable to such creditings, holdings, deductions, or transfers of ERCs are already incorporated in such permit
. (f) Liability
. Any provision of the CO 2 Rate

- based Trading Program that applies to an affected EGU or the designated representative of an affected EGU shall also apply to the owners and operators of such affected EGU. (g) Effect on other authorities
. No provision of the CO 2 Rate

- based Trading Program or exemption under § 6 2.16415 shall be construed as exempting or excluding the owners and operators, and the designated representative, of an affected EGU from compliance with any other provision of the applicable, approved
stat e implementation plan, a federally enforceable permit, or any other requirement of the Clean Air Act. **§ 6 2.16425 How should I compute time under the CO**  **2 Rate**  **- based**  **Trading Program?** (a) Unless otherwise stated, any time period scheduled, under the CO 2 Rate

- Based Trading Program, to begin on the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 185 of 447 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 CO 2 Rate

- Based Trading Program, to begin before the occurrence of an act or event will 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 CO 2 Rate

- Based Trading Program, is not a business day, then the time period will be extended to the next business day. **§ 6 2.16430 What are the administrative appeal procedures?**  The administrative appeal procedures for decisions of the Administrator under the CO 2 Rate

- based Trading Program are set forth in part 78 of this chapter. **§ 6 2.16**  **431 How will the Clean Energy Incentive Program be**  **administered under the federal plan?** (a) The Administrator will participate in the Clean Energy Incentive Program, established under subpart UUUU of part 60 of this chapter, on behalf of any state for who m this subpart is promulgated as a federal plan under section 111(d) of the Act. The Administrator will award, on behalf of each such state, early action emission rate credits (ERCs) for generation and savings achieved in 2020 and /or 2021 that result from the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 186 of 447 following types of eligible renewable energy (RE) and demand

side energy efficiency (EE) projects: (1) Metered wind power; (2) Metered solar power; and (3) Demand

- side EE implemented in a low

- income community. Eligible RE projects must commence construction, and eligible demand

- side EE projects must commence implementation , after September 6, 2018 for those states on whose behalf the EPA is implementing the federal plan. Eligible projects must be located in or benefit th e state on whose behalf the EPA is implementing the federal plan. (b) Early action ERCs will be distributed pursuant to a process to be prescribed by the Administrator, and in a manner to be demonstrated by the Administrator to have no impact on the
aggreg ate emission performance of affected EGUs required to meet
rate

- based emission standards during the compliance periods. (c) The Administrator will match these early action ERCs with additional matching ERCs pursuant to a process to be prescribed by the Adm inistrator. Matching awards will be made up to a limit equivalent to the state’s pro rata share of 300 million short tons of CO 2 emissions. (d) The awards, including the matching award, will be executed as follows:***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 187 of 447 (1) For RE projects that generate metere d MWh from wind or solar resources: for every two MWh generated, the project will receive one early action ERC under paragraph (b) of this section and one matching ERC from the match under paragraph (c) of this section; and (2) For EE projects that benefit low

- income communities as determined by the Administrator solely for purposes of this subpart: for every two MWh in end

- use demand savings achieved, the project will receive two early action ERCs under paragraph (b) of this section and two matching ERCs f rom the match under paragraph (c) of this section.
**EMISSION RATE CREDIT ISSUANCE, ADJUSTMENT**  **, AND REVOCATION**  **§ 6 2.16434 What affected EGUs qualify for generation of ERCs?**  (a) ERCs may only be issued to affected EGUs under the conditions listed in paragraph s (b) and (c ) of this section. (b) For affected EGUs that emit below their applicable emission standard, the amount of ERCs generated must be calculated using the following equation:

ERCs = ( EGU emission standard

− EGU emission rate ) EGU emission standard ∗ EGU generation Where:

ERCs = Number of emission rate credits generated by an affected EGU during an applicable compliance period (MWh). EGU emission standard = The emission standard the affected EGU must comply with during the applicable compliance period according to § 62.16420 (lb/MWh).***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 188 of 447
EGU emission rate = The affected EGU’s measured CO 2 emission rate measured in accordance with § 62.16540 (lb/MWh). EGU generation = Total net energy output generation of the affected EGU duri ng the applicable compliance period measured in accordance with 62.16540 (MWh). (c) Stationary combustion turbines that meet the definition of an affected EGU may generate net energy output MWh gas shift ERCs (GS

- ERCs) for all hours of operation during a given compliance period according to paragraphs (c)(1) through (3) of this section. (1) To calculate the number of GS

- ERCs:
GS

− ERCs = EGU Generation ∗ Incremental Generation Factor ∗ GS

− ERC Emission Factor Where:

GS

- ERC = Net energy output MWh gas shift ERCs. EGU generation = Total net energy output generation of the affected EGU during the applicable compliance period measured in accordance with 62.16540 (MWh). Incremental Generation Factor = See Table 2 of this subpart for the applicable factor for each compliance period. GS

- ERC Emission Factor Rate = Value calculated using equation (c)(2) of this section. (2) To calculate the GS

- ERC Emission factor for your specific affected EGU you must use the following equation:

GS

- ERC Emission Factor = 1

− EGU emissi on rate Steam Turbine Emission Standard Where:***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 18 9 of 447
GS

- ERC Emission Factor = Factor to be used in the equation in paragraph (c)(1) of this section for GS

ERC calculation. EGU emission rate = Affected EGU’s measured CO 2 emission rate measured in accordance with § 62.16540 (lb/MWh). Steam turbine emission standard = Steam turbine emission standard for the corresponding compliance period as found in Table 1 of this subpart (lb/MWh). cubic foot), that maintains a gaseous state under ISO conditions. In addition, (3) Notwithstanding any other provision of this subpart, GS

- ERCs must not be used for compliance by an affected EGU that is a stationary combustion turbine. Stationary combustion turbines may use other ERCs in their compliance demonstration. **§ 6 2.16435 What eligible resources qualify for generation of**  **ERCs in addition to affected EGUs?** (a) ERCs may only be issued to an eligible resource that meet each of the requirements in paragraphs (a)(1) through (4) of this section. All categories of resources other than on - shore utility scale wind, utility scale solar photovoltaics, concentrated sol ar power, geothermal power, nuclear energy, or utility scale hydropower , and all provisions of this subpart relating to such resources, are not available or applicable in States where this subpart has been promulgated as a federal plan pursuant to section 111(d)(2) of the Act.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 190 of 447 (1) Resources qualifying for eligibility only include resources which increased new installed electrical generation nameplate capacity, or new electrical savings measures installed or implemented after January 1, 2013. If a resource h ad a nameplate capacity uprate, then ERCs may be issued only for the difference in generation between the uprated nameplate capacity and its nameplate capacity prior to the uprate. ERCs must not be issued for generation for an uprate that followed a derate that occurred on after January 1, 2013. A resource that is relicensed or receives a license extension is considered existing capacity and is not an eligible resources, unless it receives a capacity uprate as a result of the relicensing process that is ref lected in its relicensed permit. In such a case, only difference in nameplate capacity between its relicensed permit and its prior permit is eligible to be issued ERCs. (2) The resource must be connected to, and delivers energy to or saves electricity, on the electric grid in the contiguous United States. (3) The resource is located in a State whose affected EGUs are subject to rate

- based emission standards pursuant to this regulation, unless the resource is located in a State with mass

based emission stand ards and the resource can demonstrate (e.g., through a power purchase agreement or contract for delivery) transmission of its generation into a State whose affected EGUs***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 191 of 447 are subject to rate

- based emission standards pursuant to this regulation. (4) The reso urce falls into one of the following categories of resources: (i) Renewable electric generating technologies using one of the following renewable energy resources: wind, solar, geothermal, hydro, wave, tidal; (ii) Qualified biomass; (iii) Waste

- to

- energy (biogenic portion); (iv) Nuclear energy; (v) A non

- affected combined heat and power unit, including waste heat power; or (vi) A demand

- side EE or demand

- side management measure that saves electricity and is calculated on the basis of quantified ex poste s avings, not “projected” or “claimed” savings. (b) Any resource that does not meet the requirements of this subpart cannot generate ERCs for use in the compliance demonstration required under § 6 2.16420. (c) ERCs may not be issued to any of the following: ( 1) New, modified, or reconstructed EGUs that are subject to subpart TTTT of part 60 of this chapter, except CHP units that meet the requirements of a CHP unit under paragraph (a) of this section;***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 192 of 447 (2) EGUs that do not meet the applicability requirements of § 6 2.16410, except CHP units that meet the requirements of a CHP unit under paragraph (a) of this section; (3) Measures that reduce CO 2 emissions outside the electric power sector, including GHG offset projects representing emission reductions that occur i n the forestry and agriculture sectors, direct air capture, and crediting of CO 2 emission reductions that occur in the transportation sector as a result of vehicle electrification; and (4) Any measure not approved by the EPA to generate ERCs in connection with a specific State plan. **§ 6 2.16440 What is the process for revocation of qualification**  **status of an eligible resource?** (a) If an eligible resource is found to not meet the requirements of § 6 2.16435 in the Rate

- based Trading Program, then the Administr ator will revoke the eligibility of the eligible resource to be issued ERCs. In addition, the provisions of § 6 2.16450(d) may apply. (b) Any instance of intentional misrepresentation in an eligibility application or monitoring and verification (M&V) report may be cause for revocation of the qualification status of an eligible resource. (c) Repeated instances of error or misstatement of MWh of electricity generation or savings in submitted M&V reports, and***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 193 of 447 any other requirements may be cause for the Administ rator to revoke the eligibility of an eligible resource to be issued
ERCs. (d) In the event of an intentional misrepresentation, or repeated instances of error or misstatement, in program submissions, by the authorized account representative of the eligibl e resource, the Administrator may prohibit the eligible resource from any further eligibility to be issued ERCs. In addition, the provisions of § 6 2.16450 (a) through (d) may apply. **§ 6 2.16445 What is the process for the issuance of ERCs?**  The process and requirements for issuance of ERCs for affected EGUs and eligible resources are set forth in paragraphs (a) through (f) of this section. (a) Eligibility application . To receive ERCs, an authorized account representative of an eligible resource must submit an eligibility application to the Administrator that demonstrates that the requirements of § 6 2.16434 (for an affected EGU) or § 6 2.16435 (for an eligible resource) are met, and, in the case of an eligible resource only, demonstrates that the requirements in paragraphs (a)(1) through (9) of this section are met. (1) Identification of the authorized account representative of the ERC resource, including the authorized account***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 194 of 447 representative’s name, address, e

- mail address, telephone number, and ERC tracking s ystem account number. (2) Identification of the eligible resource(s), including the information in paragraphs (a)(2)(i) through (v) of this section. (i) For an eligible resource, the physical location of the eligible resource; contact information for the o wner or operator of the eligible resource, if different from the designated representative or authorized account representative; eligible resource generator prime mover and/or technology type; eligible resource nameplate capacity; eligible resource categor y (e.g., wholesale generator, wholesale generator also serving onsite customer load, customer

- sited distributed generator) (if applicable); facility and generating unit IDs (EIA ORIS Code, Facility Registration System (FRS) Code, if applicable); for eligible resource, the control area, balancing authority, ISO conditions as defined in § 62.16570, or the regional transmission organization in which the generator is located (if applicable). (A) For an eligible resource with a nameplate capacity of1 MW or more, a copy of the most recent filing of a copy of the generating facility’s U.S. Energy Information Agency’s Annual Electric Generator Report Form EIA

- 860.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 195 of 447 (B) For an electric generating resource with a nameplate capacity of less than 1 MW, the information that would be contained in U.S. Energy Information Agency’s Annual Electric Generator Report Form EIA

- 860, if that electric generating facility had nameplate capacity of 1 MW or more. (ii) For an energy

- saving resource that is project

- based, a detailed description of the demand

- side EE or electricity savings project, including: location and specifications of the building(s), facility(ies), or installations where energy

- saving measures were implemented or will be implemented; owner and operator of the building(s), facility(ies), or installations where the energy

- saving measures are implemented or will be implemented; the parties implementing the energy

- saving project, including lead contractor(s), subcontractors, and consultin g firms (if different from the authorized account representative);
energy - saving measures installed and/or energy

- savings practices implemented (or to be installed/implemented); specifications of equipment and materials installed, or to be installed, as pa rt of the energy

- saving project; project plans and technical schematics, as applicable. (iii) For an energy

- savings resource that involves an EE requirement or program, a description of the electricity savings program, including: overall approach or “logi c” to the requirement or program, including applicable strategies and***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 196 of 447 activities, along with key assumptions regarding how such strategies and activities will achieve quantifiable reductions in electricity consumption; location and geographic distribution of the targeted building(s), facility(ies), or installations where energy

- saving requirements or programs were implemented or will be implemented; electricity consuming system(s), end

use(s), building or facility type(s), or installations where the
energy - saving requirements or programs are implemented or will be implemented; the parties implementing the energy

- saving requirement or program, including lead contractor(s), subcontractor(s), and consulting firms (if different from the authorized account repres entative); specifications of energy

saving equipment and/or energy

- savings practices implemented (or to be installed/implemented) under the requirement or program; the delivery mechanisms of the requirement or program, which may include financial incentive s or equipment rebates, dissemination of actionable information to electricity customers, on

- site audits paired with technical recommendations. (iv) For other electricity

- saving resources (e.g., transmission and distribution (T&D) measures such as

conserv ation voltage reduction (CVR)), a description of the resource, including: overall approach or “logic” to the electricity

- saving resource, including applicable strategies and activities, along with key assumptions regarding how such***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 197 of 447 strategies and activitie s will achieve quantifiable reductions in electricity consumption; location and geographic distribution of the targeted building(s), facility(ies), or electricity transmitting and distributing systems, as applicable, where electricity

- saving resources were implemented or will be implemented; electricity consuming, transmitting, or distributing system(s), building or facility type(s), or end

use(s) where the electricity

- saving resource are implemented or will be implemented; the parties implementing the elec tricity

saving resource, including lead contractor(s), subcontractor(s), and consulting firms (if different from the authorized account representative); specifications of installed equipment and/or implemented practices (or to be installed/implemented); th e delivery mechanisms used to implement and propagate the electricity

- saving resource, as applicable. (v) For eligible resources with distributed locations, such as measures at multiple residential, commercial, or industrial buildings, at a minimum, aggreg ated information about the location of measures that constitute an eligible resource, provided that the accredited independent verifier and the Administrator have the ability to access information specifying the location of each discrete measure that const itutes an eligible resource.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 198 of 447 (3) Demonstration that the eligible resource meets all applicable eligibility requirements in § 6 2.1435. (4) A certification that the eligibility application has only been submitted to the Administrator or pursuant to an EPA

a pproved multi

- state approach where States are providing for joint issuance of ERCs pursuant to the authority in their individual State plans. (5) An evaluation measurement and verification (EM&V) plan. (6) A verification report from an accredited independ ent verifier who meets the requirements of §§ 62.16470 and 62.16475. (7) An authorization that provides for the following: the Administrator may inspect (including a physical inspection of the eligible resource and its meter) and/or audit the eligible

res ource at any time and verify that the eligible resource and the EM&V plan have been implemented as described in the eligibility application. (8) The following statement, signed by the designated representative of the eligible resource: (i) “I certify unde r 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 personal knowledge and/or inquiry of those individuals with primary responsibility for ob taining the information, I certify that the statements and information are to the best of my***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 199 of 447 knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information or omitting requ ired statements and information, including the possibility of fine or imprisonment.” (ii) [Reserved] (9) Any other information required by the Administrator. (b) Registration of eligible resources
. The Administrator must review the eligibility application to determine whether the affected EGU or eligible resource meets the requirements of § 6 2.16445(a), and if it determines that the requirements are met, approve the eligibility application and register the affected
EGU or eligible resource in an ERC trackin g system that meets the requirements of § 6 2.16515. Once so registered, the affected EGU or eligible resource is eligible to be issued ERCs, provided all other applicable requirements continue to be met. (c) M&V reports . For an eligible resource, the desi gnated representative must submit to the Administrator an M&V report prior to issuance of ERCs by the Administrator. (d) Verification reports . For an eligible resource, the authorized account representative must submit a verification report from an accredited independent verifier that meets the requirements of § 6 2.16470 and § 6 2.16475 as part of each eligibility application and M&V report. Whi le considered a part of the eligibility application and M&V report, the verification***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 200 of 447 report must be submitted separately by the accredited independent verifier to the Administrator. (e) Issuance of ERCs . ERCs may only be issued by the Administrator based on actual electricity generation or savings documented in an M&V report that meets the requirements of § 6 2.16460 and a verification report that meets the requirements of § 6 2.16465. Only one ERC will be issued for each verified MWh. (f) Tracking system
. ERCs may only be issued through an ERC tracking system that meets the requirements of § 6 2.16515. **§ 6 2.16450 What is the process for error adjustments or**  **misstatement, and suspension of ERC issuance?** (a) In the event of error or misstatement of quantified MWh of electricity generation or savings in a previous M&V report for which ERCs have been issued, the Administrator may adjust the number of ERCs issued in a subsequent reporting period to address the error or misstatement, by subtracting a number of MWh from the quantified and verified MWh in the M&V report for the subsequent reporting period. In the event that an error or inadvertent misstatement occurs in a final M&V report for an eligible resource, for which ERCs have been issued, the provisions of pa ragraph (b) of this section will apply. (b) In the event of error or misstatement of quantified MWh of electricity generation or savings in the final M&V report for***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 201 of 447 an eligible resource, for which ERCs have been issued, the Administrator will revoke ERCs f rom the general account held by the authorized account representative of the eligible resource, in an amount necessary to correct the error or misstatement. In the event that the general account of the eligible resource holds an insufficient number of ERCs to correct the error or misstatement, the authorized account representative must submit to the Administrator within 30 days a number of ERCs necessary to correct the error or misstatement. Failure to meet this requirement will result in prohibition of the authorized account representative for the eligible resource from further participation in the program, unless reauthorized at the discretion of the Administrator. (c) The Administrator may freeze the general account held by an authorized account represent ative of an eligible resource at any time, for cause, if the Administrator determines ERCs have been improperly issued, based on a misrepresentation or misstatement in an eligibility application or M&V report. The Administrator may also freeze the general account of an authorized account representative of an eligible resource pending investigation of potential misrepresentation, error, or misstatement in an eligibility application of an eligible resource, or in an M&V report for which ERCs have been issued.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 202 of 447 Freezing a general account will prevent transfer of ERCs out of the account. (d) If ERCs are issued for an eligible resource that is found to be ineligible, then the Administrator may take the actions in paragraphs (d)(1) through (3) of this section. (1) Freeze the general account for the eligible resource, preventing any transfers of ERCs out of the account. (2) Revoke and deduct ERCs held in the general account of the authorized account representative for an eligible resource, in a number equal to the nu mber of ERCs issued for the ineligible eligible resource. (3) In the event that the general account of the ERC resource holds a number of ERCs less than the number of ERCs issued for the ineligible eligible resource, the delegated representative of an elig ible resource must submit to the Administrator within 30 days a number of ERCs necessary to fully account for all ERCs issued for the ineligible eligible resource. Failure to meet this requirement will result in prohibition of the eligible resource from fu rther participation in the program, unless reauthorized at the discretion of the Administrator. (e) The Administrator may temporarily or permanently suspend issuance of ERCs for an eligible resource, for the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 203 of 447 following reasons in paragraphs (e)(1) through (3) of this section. (1) Pending investigation of potential misrepresentation, error, or misstatement in an M&V report, for which ERCs have been issued, or the eligibility status of an eligible resource. (2) In the case of repeated error or misstatements i n submitted M&V reports. (3) In the case of an intentional misrepresentation in a submitted M&V report.
**EVALUATION MEASUREME NT AND VERIFICATION**  **PLANS, MONITORING AN D**  **VERIFICATION REPORTS , AND VERIFICATION**  **§ 6 2.16455 What are the requirements for evaluation**  **measurement and verification plans for eligible resources?**  (a) EM&V plan requirements
. Any EM&V plan submitted in support of the issuance of an ERC pursuant to this rule must meet the requirements of this section. (b) General EM&V plan criteria
. Each EM&V plan must identify the eligible resource and its approved eligibility application. (c) Specific EM&V plan criteria
. Each EM&V plan must provide the manner in which the electricity generated or saved by the eligible resource will be quantified, monitored and verified, and the manner of quantification, monitoring and verification must meet the criteria listed in paragraphs (c)(1)***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 204 of 447 through (7) of this section, as applicable to the specific eligible resource. (1) For a nuclear energy resource or a renewable en ergy resource with a nameplate capacity of 10 kW or more and for a renewable energy resource with a nameplate capacity of less than 10 kW for which metered data are available, each EM&V plan must specify that the requirements in paragraphs (c)(1)(i) throug h (vi) of this section are met. (i) The generation data is physically measured on a continuous basis using a revenue

- quality meter, which means a meter used by a control area operator for financial settlements, or a meter that meets the American National S tandards Institute No. C12.20. , Code for Electricity Metering, metering accuracy standards, or a meter that meets an alternative equivalent standard that has been approved in advance of its use to measure generation pursuant to this regulation by the EPA. (ii) The generating data is measured at the generator’s bus bar, or, for a renewable energy resource with a nameplate capacity of less than 10 kW that is interconnected behind an individual business or household meter, the generating data was measured at t he AC output of the inverter and adjusted to reflect the only energy delivered into either the transmission or distribution grid at the generator bus bar and not and any energy used on

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– Do Not Cite, Quote or Release During Review*** Page 205 of 447 (iii) The generation data from only one eligibl e resource generating unit may be associated with each meter, and generation data may not be aggregated, unless all the following provisions are met: (A) All of the generating units have the same essential generation characteristics; (B) All of the genera ting units are located in the same
State; (C) The nameplate capacity of the individual units being aggregated is each less than 150 kW, and units collectively do not exceed a total nameplate capacity of 1 MW when aggregated, or alternative requirements app roved by the EPA in connection with the specific State plan pursuant to which that EM&V plan or M&V report is submitted; and (D) The generation data are measured by the same type of meter that is subject to the same maintenance and quality
assurance proce dures. (iv) The generation data is collected electronically and telemetered from the generator to its control area operator and verified through a control area energy accounting or settlement process which occurs at least monthly, unless the generation

u nit does not go through a control area operator, in which case the generation data must be collected by manual meter readings conducted by an independent verifier that is either not***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 206 of 447 affiliated with the owner or operator of the qualifying renewable energy g enerating resource or is precluded pursuant to the relevant State plan from the ability to transfer or retire ERCs issued to that qualifying renewable energy generating resource or, if the generating unit is less than 10 kw and does not generate enough ele ctricity to enable monthly reporting, the data may be self

- reported and reported no less than annually. (v) The generation data serves a load that otherwise would have been served by the grid if not for the generator. Specifically: (A) ERCs shall not be issued for energy generation used to supply the ancillary equipment used to operate a generating station or substation (“station service”) or parasitic load on the generator’s side of the point of interconnection; and (B) For generators interconnected to transmission systems and with on

- site loads other than station service drawing generation before the metering point, ERCs may be issued for on

site load, if the owner or operator of the eligible resource can demonstrate that the metering used is capable of distinguishing between on

- site load and station service. (vi) Any other requirements approved by the EPA in connection with the specific State plan pursuant to which that EM&V plan is submitted.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 207 of 447 (2) For a renewable energy resource with a nameplate
capac ity of less than 10 kW and that does not have a meter, each EM&V plan must require that the following requirements in paragraphs (c)(2)(i) though (vii) of this section are met. (i) Metered data are unavailable. (ii) At least 1 MW of net energy output is g enerated to the distribution or transmission system over a continuous 365

- day period. (iii) The generation data may not be aggregated, unless the following provisions are met: (A) All of the generating units have the same essential generation characteristi cs; (B) All of the generating units are located in the same
State; (C) The nameplate capacity of the individual units being aggregated is each less than 150 kW, and units collectively do not exceed a total nameplate capacity of 1 MW when aggregated,

or alternative requirements approved by the EPA in connection with the specific State plan pursuant to which that EM&V plan or M&V report is submitted; and (D) The generation data are measured by the same generation estimating software or algorithms. (iv) T he generation data are measured on at least a monthly basis using generation estimating software or algorithms that***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 208 of 447 are based on an on

- site inspection prior to interconnection and a resource study (wind, shading, solar irradiance, depending on the resource ), or engineering information that takes into account the capacity, age, and type of qualifying energy generating resource, and all input parameters and assumptions must be clearly delineated, or if the generating unit does not generate enough electricity to enable monthly reporting, the data may be reported no less than annually. (iv) The generation data are self

- reported to distribution utility through an electronic internet

- based portal with software that reports total and hourly generation. (v) The gene ration data serves a load that otherwise would have been served by the grid if not for the generator. The ERC is only based on generation transferred from the eligible resource to the transmission or distribution grid, and is not based on the generation us ed on

- site by the customer. (vi) Any other requirements approved by the EPA in connection with the specific State plan pursuant to which that EM&V plan is submitted. (3) For qualified biomass feedstocks used, in addition to the requirements of paragraphs (c)(1) or (2) of this section, whichever section is applicable, each EM&V plan must demonstrate that the requirements approved by the EPA for that biomass feedstock and its associated biogenic CO 2 have been met.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 209 of 447 (4) For a waste

- to

- energy resource, in addi tion to the requirements of paragraphs (c)(1) or (2) of this section, as applicable, and paragraph (c)(3) of this section, each EM&V plan must specify: (i) The total net energy generation from the resource in MWh; (ii) The method for determining the specif ic portion of the total net energy output from the resource that is related to the biogenic portion of the waste materials; and (iii) The net energy output is measured with the relevant method approved by the EPA in connection with the specific State plan pursuant to which that EM&V plan is submitted demonstrate that the requirements approved by the EPA in connection with that State plan have been met. (5) For a combined heat and power unit, in addition to the requirements of paragraphs (c)(1) or (2) of thi s section, as applicable, and paragraph (c)(3) of this section, each EM&V plan must meet one of the requirements in paragraphs (c)(5)(i) through (iv) of this section, as applicable, and any other requirements approved by the EPA. (i) If the combined heat and power unit has an electric generating capacity greater than 25 MW, then the EM&V plan must meet the requirements that apply to an affected EGU under § 6 2.16540 of this subpart.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 210 of 447 (ii) If the combined heat and power unit has an electric generating capacit y less than or equal to 25 MW and greater than 1 MW, and it uses only natural gas contains 20.0 grains or less of total sulfur per 100 standard cubic feet. Finally, and/or distillate fuel oil, then the EM&V plan must meet the low mass emission unit CO 2 emis sion monitoring and reporting methodology in 40 CFR part 75 of this chapter. (iii) If the combined heat and power unit has an electric generating capacity less than or equal to 25 MW and greater than 1 MW, and it uses anything other than only natural gas d oes not include the following and/or distillate fuel oil, then the EM&V plan must meet the low mass emission unit CO 2 emission monitoring and reporting methodology in 40 CFR part 75 of this chapter. (iv) If the combined heat and power unit has an electric generating capacity less than or equal to 1 MW the unit must keep monthly cumulative recordings of useful thermal output and fossil fuel input along with the determination of baseline thermal source efficiencies based on manufacturer data. For CHP units th at directly serve on

- site end

- use electricity loads, avoided T&D system losses can be assessed as is commonly practiced with demand

- side EE. (6) For demand

- side electricity savings that avoid a transmission and distribution loss, each EM&V plan must measure the transmission and distribution loss based on the lesser of 6 percent of the facility

- or premises

-***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 211 of 447 level electricity savings measured at the electricity customer’s meter, or the statewide annual average transmission and distribution loss rate (expressed as a percentage) from the most recent year that is published in the US EIA State Electricity Profile. No other transmission and distribution loss factors may be used in calculating the electricity savings. (7) Each EM&V plan for an EE program, EE project, or EE measure must specify how each of the requirements in paragraphs (c)(7)(i) through (x) of this section will be met in quantifying the electricity savings from that EE program, EE project, or EE

measure. (i) All electricity savings must be quantified on an ex post basis, which means after the electricity savings have occurred, or on a real

- time basis, which means at the time the electricity savings are occurring. Electricity savings must not be quantified on an ex

- ante basis, which means estimates of M Wh savings that are generated prior to implementing the subject EE program, EE project, or EE measure, and that are not quantified using EM&V methods and procedures. (ii) All electricity savings must be quantified and verified based on methods and procedur es detailed in an industry best

- practice EM&V protocol or guideline. Each EM&V plan must include a demonstration of how the best

- practice protocol or guideline was selected and will be applied to the specific EE***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 212 of 447 program, EE project, or EE measure covered in the EM&V plan, and an explanation of why that particular protocol or guideline was selected. Protocols and guidelines are considered to be best practice if they: (A) Have gone through a rigorous and credible peer review process that shows the applicabl e methods to be valid through empirical testing; and (B) Have been accepted and approved for use by identifiable state regulatory commissions. Examples of such protocols and guidelines that may be provided in EM&V guidance issued by the Administrator will be acceptable. ( iii) All electricity savings must be quantified as the difference between the observed electricity use and a common practice baseline (CPB), which is the equipment that would typically have been installed

– or that a typical consumer or bu ilding owner would have continued using

– in a given circumstance (i.e., a given building type, EE program type or delivery mechanism, and geographic region) at the time of EE implementation. Examples of CPBs for specific EE programs, EE projects, EE measu res, and for certain EM&V methods that may be provided in EM&V guidance issued by the Administrator will be acceptable. The EM&V plan must specify the reason the specific
CPB was selected, which must include an analysis of the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 213 of 447 appropriateness of that CPB f or the EE program, EE project, or EE project covered in the EM&V plan , based on : (A) Characteristics of the EE program, EE project, or EE

measure; (B) The delivery mechanism used to implement the EE program, EE project, or EE measure (e.g., installed as part of a utility EE program direct install EE program versus a point

- of

sale rebate); (C) Local consumer and market characteristics; (D) Applicable building energy codes and standards and average compliance rates; and (E) The method applied: project

- based measurement and verification (PB

- MV), comparison group approaches, or deemed savings. (iv) All electricity savings must be quantified by applying one or more of the following methods: project

- based measurement and verification (PB

- MV), comparison group ap proaches, or deemed savings. (A) If a comparison group approach is used, then the EM&V plan must quantify electricity savings by taking the difference between a comparison group’s electricity use and the electricity use of EE program participants. Comparis on group approaches may include randomized control trials and quasi

- experimental methods, as described in industry best

- practice protocols and***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 214 of 447 guidelines. Examples of such protocols and guidelines provided in EM&V guidance that may be issued by the Adminis trator will be acceptable. (B) If deemed savings are used, then the EM&V plan must specify that the deemed savings values will only be used for the specific EE measure for which they were derived. The EM& V plan must also specify the name and Web address of the technical reference manual (TRM) in which all deemed electricity savings values will be documented. Prior to use in an EM&V plan, all TRMs must undergo a review process in which the public, stakehold ers, and experts are invited

– with adequate advance notification (via the internet and other social media)

– to provide comment, have at least 2 months to provide comment, and in which all such comments and associated responses are made publicly available . All TRMs must also be publicly accessible over the full period of time in which they are being used in conjunction with an EM&V plan for the purpose of quantifying savings, and must be subsequently updated in the same manner at least every 3 years. The T RM must indicate, for each subject EE measure, the associated electricity savings value, the conditions under which the value can be applied (including the climate zone, building type, manner of implementation, applicable end uses, operating conditions, an d effective useful life), and the manner in which the electricity savings value was***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 215 of 447 quantified, which must include applicable engineering algorithms, source documentation, specific assumptions, and other relevant data to support the quantification of savin gs from the subject EE measure . (v) All EE programs, EE projects, or EE measures must be quantified at time intervals (in years) sufficient to ensure that MWh savings are accurately and reliably quantified. Such time intervals must be specified and explained in the EM&V plan. Factors that must be taken into consideration when determining the appropriate time int erval include the characteristics of the specific EE program, EE project, or EE measure, expected variability in electricity savings (where greater variability necessitates more frequent quantification), the expected scale and magnitude of the electricity savings (where greater quantities of savings necessitate more frequent quantification), and the experience implementing and quantifying savings from the resource (where less experience

– for example, with new and innovative EE program types

– necessitates more frequent quantification). The time intervals must end no sooner than the last day of the effective useful life of the EE program, EE project, or EE measure, and must last no longer than: (A) Every 4

- year intervals for building energy codes and produc t standards;***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 216 of 447 (B) Every 1 , 2, or 3 years for public or consumer

- funded EE program, EE project, or EE measure , as relevant for the type of EE program, EE project, or EE measure and factors listed in paragraph (c) (7)( v) of this section; and (C) Annually for c ommercial and industrial projects, unless the resource provider can provide a reasonable justification in the EM&V plan for why an annual time interval is not feasible, and can additionally explain how the accuracy and reliability of savings values will no t be lessened. (vi) EM&V plans must specify and document how the EM&V components in paragraphs (c)(7)(vi)(A) through (E) of this section will be analyzed, considered, or otherwise addressed in the quantification and verification of electricity savings. (A ) The effects of changes in independent factors on reported electricity savings ( i.e., factors that are not directly related to the EE measure, such as weather, occupancy, and production levels. (B) The effective useful life (EUL) or duration of time the EE measure is anticipated to remain in place and operable with the potential to save electricity, which must be based on the application of EM&V methods, an industry best

- practice persistence study, deemed estimates of effective useful life, or a combinati on of all three.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 217 of 447 (1 ) If deemed estimates of effective useful life are used, then they must specify the date by which the EE measure will stop saving electricity. (2 ) If industry best

- practices persistence studies are used to modify an effective

- useful

- life value, then they must be conducted at least every 5 years. (C) The potential sources of double counting, and the associated steps for avoiding and correcting for i t, such as: ( 1 ) For an EE program or EE project with identified participants, track the type and number of EE measures implemented at the utility

- customer level. (2 ) For an EE program or EE project without identified participants, such as point

- of

- sale re bates and retailer or manufacturer incentive programs, track applicable vendor, retailer, and manufacturer data. (3 ) For EE programs (such as those implemented by a utility) and EE projects (such as those implemented by an energy service company) that both have identified participants, use tracking data to avoid and correct for double counting that may occur across the two; and (4 ) For EE programs with identified participants and those without (such as retail incentives to purchase energy

- efficient equipme nt), use EE program tracking data for the former and use applicable vendor, retailer, and manufacturer data for the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 218 of 447 latter to avoid and correct for double counting that may occur across the two. ( D) The EE savings verification approaches for ensuring that EE measures have been properly installed, is operating as intended, and therefore has the potential to save electricity, including how verification will be carried out within the first year of implementation of the EE program, EE project, or EE

measure using best

- practice approaches, such as physical inspections at a customer premises, phone and mail surveys, and reviews of sales receipts and other documentation. If such approaches are documented in EM&V guidance issued by the Administrator, they will be treated as acceptable. (E) The i nteractive effects of EE programs, EE projects, or
EE measures on electricity usage, which are increases or decreases in electricity usage at an end

- use facility or premises that occurs outside of specific end

- uses(s) tar geted by the EE program, EE project, or EE measure (e.g., lighting retrofits to improve EE can reduce waste heat to the surrounding conditioned space, and therefore may increase the required electric heating load in a facility or premises). (vii) The EM&V plan must specify how the accuracy and reliability of the electricity savings of the EE program, EE project, or EE measure will be assessed, and must discuss the rigor of the method selected to quantify the electricity***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 219 of 447 savings. It must also discuss the ap proaches that will be used to control all relevant types of bias and to minimize the potential for systematic and random error, as well as the
program - or project

- specific circumstances in which such bias and error are likely to arise. Approaches to minimi zing bias and error are provided in the EM&V guidance that may be issued by the Administrator will be acceptable. (viii) If sampling will be used to quantify the electricity savings from an EE program, then the MWh estimates derived from sampling must hav e at least 90 percent confidence intervals whose end points are no more than +/

- 10 percent of the estimate, and the statistical precision of the associated estimates must be specified in the EM&V plan. (ix) All data sources and key assumptions used to qua ntify electricity savings must be described in the EM&V plan. (x) Any additional information necessary to demonstrate that the electricity savings were appropriately quantified and verified. Approaches to quantifying and verifying savings from several EE program and EE project types that are provided that are provided in EM&V guidance that may be issued by the Administrator will be acceptable. (d) You must ensure that any EM&V plan submitted pursuant to this subpart includes the following certification:***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 220 of 447 (1) “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 obtainin g 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 s tatements and information, including the possibility of fine or imprisonment.” (2) [Reserved] **§ 6 2.16460 What are the requirements for monitoring and**  **verification reports for eligible resources?** (a) M&V report requirements
. Any M&V report that is submitted , in support of the issuance of an ERC that can be used in accordance with § 6 2.16420, must meet the requirements of this section. (b) General M&V report criteria
. Each M&V report must include the following: (1) For the first M& V report submitted, documentation that the electricity

- generating resources, electricity

- saving measures, or practices were installed or implemented consistent with the description in the approved eligibility application required in § 6 2.16445(a); and***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 221 of 447 (2) For each M&V report submitted: (i) Identification of the time period covered by the M&V report; (ii) A description of how relevant quantification methods, protocols, guidelines, and guidance specified in the EM&V plan were applied during the reporting peri od to generate the quantified MWh of generation or MWh of electricity savings; (iii) Documentation (including data) of the energy generation and/or electricity savings from any activity, project, measure, resource, or program addressed in the EM&V report, quantified and verified in MWh for the period covered by the M&V report, in accordance with its EM&V plan, and based on

ex - post energy generation or savings; (iv) Documentation of any change in the energy generation or savings capability of the eligible resource during the period covered by the M&V report and the date on which the change occurred, and either certification that the eligible resource continued to meet all eligibility requirements during the reporting period covered by the M&V report or disc losure of any material changes to the eligible resource from the description of the eligible resource in the approved eligibility application, which must include any change in the energy generation (e.g., nameplate MW capacity) or electricity savings***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 222 of 447 capab ility of the qualifying eligible resource (including the date of the change); and (v) Documentation of any change in ownership interest of the qualifying eligible resource (including the date of the change). (c) You must ensure that any M&V report submitte d pursuant to this subpart includes the following certification: (1) “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 inqu iry 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 s ubmitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment.” (2) [Reserved] **§ 6 2.16465 What are the requirements for verification reports?**  (a) A verification report included as part of an eligibility application or an M&V report must meet the requirements of paragraph (b) of this section (for the eligibility application verification report) and paragraph (c)***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 223 of 447 of this section (for the M&V report verification report) and include the following: (1) A verification statement that sets forth the findings of the accredited independent verifier, based on the verifier’s assessment of the information and data in the eligibility application or M&V report that is the subject of the verific ation report, including an assessment of whether the eligibility application or M&V report contains any material misstatements or material data discrepancies, and whether the submittal conforms with applicable regulatory requirements. The verification stat ement must clearly identify how levels of assurance and materiality are defined as part of the verifier
assessment. (2) The following statement, signed by the accredited independent verifier: “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 personal knowledge and/or inquiry of those individuals with primary responsibility for obtaining the information, I certify that the state ments 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 224 of 447 statements and information, including the po ssibility of fine or imprisonment.” (b) A verification report included as part of an eligibility application must, at a minimum, describe the review conducted by the accredited independent verifier and verify each of the following: (1) The eligibility of t he eligible resource to be issued ERCs pursuant to this regulation, in accordance with § 6 2.16435 and **§ 6** 2.16445(a), including an analysis of the adequacy and validity of the information submitted by the authorized account representative to demonstrate tha t the eligible resource meets each applicable requirement of § 6 2.16435 and **§ 6** 2.16445(a). (2) The eligible resource is not duplicative of a resource used to meet emission standards or a state measure in another approved State plan. (3) The eligible resource exists or the practice or activity will be implemented in the manner specified in the eligibility application. (4) That the EM&V plan meets the requirements of § 6 2.16455
. (5) Disclosure of any mandatory or voluntary programs to which data is repo rted relating to the ERC resource (e.g., reporting of electric generation by a renewable energy resource to a renewable energy certificate tracking system).***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 225 of 447 (6) Any other information required by the Administrator or that the accredited independent verifier finds, in its professional opinion, is necessary to assess the adequacy and validity of information and data supplied by the authorized account representative. (c) A verification report included as part of a M&V report must, at a minimum, describe the rev iew conducted by the accredited independent verifier and verify the following: (1) The adequacy and validity of the information and data submitted in the submittal by the authorized account representative to quantify eligible MWh of electric generation

or electricity savings during the period for which the authorized account representative seeks issuance of ERCs, as well as all supporting information and data identified in the EM&V plan and M&V report. This analysis must include a quality assurance and qual ity control check of the data and ensure that all generation or savings data is within a technically feasible range for that specific eligible resource. (i) For metered generation, the data validity check must compare reported electricity generation to an engineering estimate of the maximum generation potential of the qualified renewable energy resource, based on, at a minimum, its maximum nameplate capacity in MW and the number of days since the prior cumulative meter reading was entered in the ERC trackin g system.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 226 of 447 If the data entered exceeds the estimated technically feasible generation, then the reported data and the estimate must be analyzed in the verification report. (ii) For all electricity generated or saved, the accredited independent verifier must describe the likely source of any data discrepancy and determine in the verification report any MWh generated or saved. (2) The M&V report meets the requirements of § 6 2.16460
. (3) Any other information required by the Administrator or that the accredited independent verifier finds, in its professional opinion, is necessary to assess the adequacy and validity of information and data supplied by the authorized account representative. **§ 6 2.16470 What is the accreditation procedure for independent**  **verifiers?** ( a) Only Administrator

- accredited independent verifiers may provide a verification report for an eligibility application or M&V report. (b) Applications for accreditation must follow a procedure and form specified by the Administrator which includes a demonstration by the verifier that it meets the requirements in paragraph (c) of this section.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 227 of 447 (c) Independent verifiers must meet each of the requirements in paragraphs (c)(1) through (6) of this section to be accredited. (1) Independent verifiers must h ave the skills, experience, resources (personnel and otherwise) to provide verification reports, including the following: (i) Appropriate technical qualification (professional engineer or otherwise) to evaluate the eligible resource for which the independe nt verifier is seeking accreditation, which may include ANSI accreditation under ISO 14065 for GHG validation and verification bodies; (ii) Appropriate auditing and accounting qualifications for financial and non

- financial data monitoring, auditing, and
qu ality assurance and quality control to evaluate the eligible resource for which the independent verifier is seeking accreditation; (iii) Knowledge of the requirements of the Administrator’s
CO 2 Rate

- based Trading Program regulations and related guidance; ( iv) Knowledge of the eligible resource categories for which the independent verifier is seeking accreditation, including relevant aspects of the design, operation, and related energy generation or electricity savings monitoring and reporting approaches for such eligible resources; and***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 228 of 447 (v) Capability to perform key verification activities, such as development of a verification report; performance of site visits; review and recalculation of reported data; review of data management systems; review of quantific ation methods used in accordance with an approved EM&V plan; preparation of a verification statement, list of findings, and verification report; and internal review of the verification findings and report. (2) Independent verifiers must document, in the ap plication for accreditation, the independent verifiers that will provide verification services, including lead verifiers, key personnel and any contractors or subcontractors (collectively, accredited independent verification team) and demonstrate that they meet the requirements of section § 6 2.16470(d)(1). Once accredited, only the accredited independent verification team identified in the accreditation application and accredited by the State may provide a verification report. (3) An independent verifier mu st specify the eligible resource categories for which it is seeking accreditation, and an accredited independent verifier may only provide verification services related to an eligible resource category for which it is accredited. (4) Prospective independent verifiers must meet the requirements of **§** 6 2 .16475(d) through (f) and demonstrate that***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 229 of 447 they have in place adequate systems and protocols to identify, disclose and avoid potential conflicts of interest. (5) An accredited independ ent verifier must not be debarred, suspended, or proposed for debarment pursuant to the
Government

- wide Debarment and Suspension regulations, 40 CFR part 32 of this chapter, or the Debarment, Suspension and Ineligibility provisions of the Federal Acquisiti on Regulations, 48 CFR part 9, subpart 9.4, of this chapter. (6) An accredited independent verifier must maintain, for its employees, and ensure the maintenance of, for any parties that it employs, professional liability insurance, as defined in 31 CFR 50. 5(q), through an insurance provider that possess a financial strength rating in the top four categories from either Standard & Poor’s or Moody’s, specifically, AAA, AA, A or BBB for Standard & Poor’s, and Aaa, Aa, A, or Baa for Moody’s. Any entity covered by this paragraph must disclose the level of professional liability insurance they possess when entering into contracts to provide verification services pursuant to this regulation. (d) Requirements for maintenance of accreditation status, as follows: (1) Accredited independent verifiers must meet the requirements of section 62.16475 when providing verification services for an authorized account representative; and***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 230 of 447 (2) The instances specified in section 62.16475(d) are cause for revocation of a verifier’s accreditation. **§ 6 2.16475 What are the procedures of accredited independent**  **verifiers must follow to avoid conflict of interest?** (a) Accredited independent verifiers must not provide verification services for any eligible resource for which it has a confl ict of interest (COI), which means: (1) Accredited independent verifiers must have, or have had, no direct or indirect financial interest in, or other financial relationships with, an eligible resource, or any prospective eligible resource, for which they seek to provide a verification report; (2) Accredited independent verifiers must have, or have had, no direct or indirect organizational or personal relationships with an eligible resource, that would impact their impartiality in assessing the validity an d accuracy of the information in an eligibility application or M&V report; (3) Accredited independent verifiers must have, or have had, no role in the development and implementation of an eligible resource for which an authorized account representative

se eks issuance of ERCs, beyond the provision of verification services; (4) Accredited independent verifiers must not be compensated, financially or otherwise, directly or indirectly,***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 231 of 447 on the basis of the content of its verification report (including eligibil ity approval of an eligible resource, the quantified and verified MWh in an M&V report, ERC issuance, or the number of ERCs issued); (5) Accredited independent verifiers must not own, buy, sell, or hold ERCs, or other financial derivatives related to
ERCs , or have a financial relationship with other parties that own, buy, sell, or hold ERCs or other related financial derivatives; (6) An accredited independent verifier must not be incapable of providing an impartial verification report for any other reason ; and (7) An accredited independent verifier must ensure that the subject of any verification report must not have the opportunity to review or influence any draft or final verification report before its submittal to the Administrator, and the accredited i ndependent verifier must share any drafts of its reports with the Administrator at the same time as it shares them with the subject of the report. (b) A contract with an eligible resource for the provision of verification services will not constitute a CO I. (c) Verification reports must include an attestation by the accredited independent verifier that it evaluated and disclosed***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 232 of 447 to the Administrator any potential COI related to an eligible

resource. (d) Prior to engaging for the provision of verification

s ervices, an accredited independent verifier must demonstrate that it has no COI related to the eligible resource, as specified in paragraph (a) of this section. If a COI is identified for a person or persons within an accredited independent verifier for a specific subject or verification, in accordance with paragraphs (e) and (f) of this section, then an accredited independent verifier may propose to the Administrator steps that will be taken to eliminate the COI which include prohibiting the person or pers ons with the conflict from any involvement in the matter subject to the conflict, including verification services, access to information related to the verification services, access to any draft or final verification reports, any communications with the pe rson(s) conducting the verification services. In no instance shall an accredited independent verifier engage in verification services for an eligible resource without the approval of the Administrator. (e) Prior to engaging in verification services and writing a verification report, an accredited independent verifier must disclose to the Administrator all information necessary for the Administrator to evaluate a potential COI (including information concerning its ownership, past and current clients, rela ted***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 233 of 447 entities, as well as any other facts or circumstances that have the potential to create a COI). (f) Accredited verifiers have an ongoing obligation to disclose to the Administrator any facts or circumstances that may give rise to a COI as defined in pa ragraph (a) of this section. (g) The Administrator may reject a verification report from an accredited independent verifier, if the Administrator determines that the accredited independent verifier has a COI as defined in paragraph (a) of this section. If the Administrator rejects an accredited independent verifier report for such
reasons, then the eligibility application or M&V report submittal shall be deemed incomplete and ERCs must not be issued pursuant to it. **§ 6 2.16480 What is the process for the rev**  **ocation of accreditation status for an independent verifier?**  (a) The Administrator may revoke the accreditation of an independent verifier at any time for cause, including for the reasons specified in paragraphs (a)(1) through (4) of this section. (1) Fail ure to fully disclose any issues that may lead to a COI with respect to an eligible resource, or other related entity, in accordance with § 6 2.16475(d) through (f).***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 234 of 447 (2) The accredited independent verifier is no longer qualified to provide verification services. (3) Negligence in the conduct of verification activities, or neglect of responsibilities pursuant to the requirements of
§ § 6 2.16465, 62.16470, and 62.16475. (4) Intentional misrepresentation of data in a verification report. (b) [Reserved]
**DESIG NATED REPRESENTATIVE**  **S § 6**  **2.16485 How are designated representatives and alternate**  **designated representatives authorized? What role do authorized designated representatives and alternate designated**  **representatives play?** (a) Except as provided under § 6 2.16 495, each affected EGU, and each eligible resource shall have one and only one designated representative, with regard to all matters under the
CO 2 Rate

- based Trading Program. (1) The designated representative shall be selected by an agreement binding on th e owners and operators of the affected EGU and must act in accordance with the certification statement in § 6 2.16500(a)(4)(iii). (2) Upon and after receipt by the Administrator of a complete certificate of representation under § 6 2.16500:***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 235 of 447 (i) The designate d 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 affected EGU in all matters pertaining to the CO 2 Rate

based Trading Program, notwi thstanding any agreement between the designated representative and such owners and operators; and (ii) The owners and operators of the affected EGU shall be bound by any decision or order issued to the designated representative by the Administrator regardi ng the affected EGU. (b) Except as provided under § 6 2.16495, each affected EGU 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 represent ative is selected must 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 oper ators of the affected EGU and must act in accordance with the certification statement in § 6 2.16500(a)(4)(iii). (2) Upon and after receipt by the Administrator of a complete certificate of representation under § 6 2.16500, (i) The alternate designated representative must be authorized;***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 236 of 447 (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 o wners and operators of the affected EGU shall be bound by any decision or order issued to the alternate designated representative by the Administrator regarding any such affected EGU. (c) Except in this section, § § 6 2.16490 through 62.16510, and § 6 2.16570 , 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. **§ 6**  **2.16490 What responsibilities do designated representatives**  **and alternate designated representatives hold?** (a) Except as provided under § 6 2.16510 concerning delegation of authority to make submissions, each submission under the CO 2 Rate

- based Trading Pro gram must be made, signed, and certified by the designated representative or alternate designated representative for each affected EGU for which the submission is made. Each such submission must include the following certification statement by the designat ed representative or alternate designated representative: “I am***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 237 of 447 authorized to make this submission on behalf of the owners and operators of the affected EGU for which the submission is made. I certify under penalty of law that I have personally examined,

a nd 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 impriso nment.” (b) The Administrator will accept or act on a submission made for an affected EGU only if the submission has been made, signed, and certified in accordance with paragraph (a) of this section and § 6 2.16510. **§ 6 2.16495**  **What are the processes for cha nging designated**  **representative, alternate designated representative, owners and operators?**  (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 § 6 2.16500. Notwithstanding any such change, all representations, actions, inactions, and submissions***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 238 of 447 b y 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 affected EGU. (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 § 6 2.16500. Notwithstanding any such change, al l 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 designat ed representative, the designated representative, and the owners and operators of the affected
EGU. (c) Changes in owners and operators
. (1) In the event an owner or operator of an affected EGU is not included in the list of owners and operators in the cer tificate of representation under § 6 2.16500, 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 affected EGU, and the decisions and orders***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 239 of 447 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 affected EGU, including the additi on or removal of an owner or operator, the designated representative or any alternate designated representative must submit a revision to the certificate of representation under § 6 2.16500 amending the list of owners and operators to reflect the change. (d ) Changes in affected EGUs at the source
. Within 30 days of any change in which affected EGUs are located at a source (including the addition or removal of an affected EGU), the designated representative or any alternate designated representative must subm it a certificate of representation under § 6 2.16500 amending the list of affected EGUs to reflect the change. (1) If the change is the addition of an affected EGU that operated (other than for purposes of testing by the manufacturer before initial installa tion) before being located at the source, then the certificate of representation must identify, in a format prescribed by the Administrator, the entity from whom the affected EGU was purchased or otherwise obtained (including name, address, telephone numbe r, and facsimile number (if any)), the date on which the affected EGU was purchased or otherwise***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 240 of 447 obtained, and the date on which the affected EGU became located at the source. (2) If the change is the removal of an affected EGU, then the certificate of rep resentation must identify, in a format prescribed by the Administrator, the entity to which the affected EGU was sold or that otherwise obtained the affected EGU (including name, address, telephone number, and facsimile number (if any)), the date on which the affected EGU was sold or otherwise obtained, and the date on which the affected EGU became no longer located at the source. **§ 6 2.16500**  **What must be included in a certificate of representation?**  (a) A complete certificate of representation for a designated representative or an alternate designated representative must include the elements in paragraphs (a)(1) through (5) of this section in a format prescribed by the Administrator. (1) Identification of the affected EGU for which the certificate of representation is submitted, including names, 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 namepla te capacity (in MWe, rounded to the nearest tenth) of each generator served by each such***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 241 of 447 affected EGU, net

- summer capacity, actual or projected date of commencement of commercial operation, and a statement of whether such affected EGU is located in Indian Country. If a projected date of commencement of commercial operation is provided, then the actual date of commencement of commercial operation must be provided when such information becomes available. (2) The name, address, e

- mail address (if any), telepho ne 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 affected EGU. (4) The following certification statements by the designated rep resentative 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 affected EGU”; ( ii) “I certify that I have all the necessary authority to carry out my duties and responsibilities under the CO 2 Rate

- based Trading Program on behalf of the owners and operators of the affected EGU and that each such owner and operator shall be fully bound by my representations, actions, inactions, or***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 242 of 447 submissions and by any decision or order issued to me by the Administrator regarding the affected EGU”; and (iii) “Where there are multiple holders of a legal or equitable title to, or a leasehold interest in, an affected EGU, or where a utility or industrial customer purchases power from an affected EGU 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 affected EGU ; and ERCs and proceeds of transactions involving
CO 2 Rate

- based Trading Program 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 ERCs by contract, ERCs and
procee ds of transactions involving CO 2 Rate

- based Trading Program ERCs 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 243 of 447 Administrator shall not be under any obligation to review or evaluate the sufficie ncy of such documents, if submitted. **§ 6 2.16505**  **What is the Administrator’s role in objections concerning designated representatives and alternate designated**  **representatives?** (a) Once a complete certificate of representation under § 6 2.16500 has been subm itted and received, the Administrator will rely on the certificate of representation unless and until a superseding complete certificate of representation under § 6 2.16500 is received by the Administrator. (b) Except as provided in paragraph (a) of this se ction, 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 represent ation, 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 CO 2 Rate

- based 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 ERC transfer s.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 244 of 447 **§ 6 2.16510**  **What process must designated representatives and alternate designated representatives follow to delegate their**  **authority?** (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 o r 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 repre sentative, 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 “ag ent”);***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 245 of 447 (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 th at 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 **§** 62.16510(d) shall be deemed to be an electronic submission b y me”; and (ii) “Until this notice of delegation is superseded by another notice of delegation under **§** 62.16510(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 o f authority by me under **§** 62.16510 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, u pon receipt of such notice by the Administrator and until receipt by the Administrator of a superseding notice***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 246 of 447 of delegation submitted by such designated representative or alternate designated representative, as appropriate. The superseding notice of deleg ation 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. **MONITORING, RECORDKE EPING, REPORTING**  **§ 6 2**  **.16515 How are compliance accounts and general accounts**  **established and used, and how is ERC issuance documentation accessed?**  (a ) Compliance accounts
. (1) Upon receipt of a complete certificate of representation under § 6 2.16500, the Administrator will establish a compliance account for the affected EGU for which the certificate of representation was submitted, unless the affected EGU already has a compliance account. The designated representative and any alternate designated representative of an affecte d EGU shall be the authorized account representative and the alternate authorized account representative respectively of the compliance account.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 247 of 447 (2) A compliance account will hold ERCs intended for surrender by a designated representative when demonstratin g an affected EGUs compliance with a CO 2 emission standard as applicable in § 6 2.16420. A compliance account may be established for a facility with one or more affected EGUs, provided that the account contains subaccounts for each affected EGU within the f acility. (b) Retirement accounts
. (1) A retirement account, into which ERCs held in a compliance account for an affected EGU are surrendered by the owner or operator of an affected EGU, for use in demonstrating compliance with its emission standards. The

r etirement account may only be held by the Administrator, and ERCs deposited into it are permanently retired. Once an ERC is retired, the ERC shall no longer be transferable to another account in that ERC tracking system or any other ERC tracking system. (2 ) [Reserved] (c) General accounts. (1) Application for a general account
. (i) Designated representatives of affected EGUs, authorized account representatives of eligible resources, and any other person may apply to open a general account, for the purpose of holding and transferring ERCs, by submitting to the Administrator a complete application for a general account. Such application must***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 248 of 447 designate one and only one authorized account representative and may designate one and only one alternate authorized ac count 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 in terest with respect to ERCs held in the general account. (B) The agreement by which the alternate authorized account representative is selected must include a procedure for authorizing the alternate authorized account representative to act in lieu of the a uthorized account representative. (ii) A complete application for a general account must include the following elements in a format prescribed by the Administrator: (A) Name, mailing address, e

- mail address (if any), telephone number, and facsimile transmi ssion 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 represe ntative and any alternate authorized account representative to represent their ownership interest with respect to the ERCs held in the general account;***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 249 of 447 (D) The following certification statement by the authorized account representative and any alternate aut horized 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 re spect to ERCs held in the general account. I certify that I have all the necessary authority to carry out my duties and responsibilities under the CO 2 Rate

- based 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”; and (E) The signature of the authorized account representative and any alternate authorized account represen tative 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 250 of 447

acc ount under paragraph (c)(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 representativ e 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 ERCs held in the general account in all matters pertaining to the CO 2 Rate

- based 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, inactio n, or submission by any alternate authorized account representative shall be deemed to be a representation, action, inaction, or submission by the authorized account representative; and (C) Each person who has an ownership interest with respect to ERCs hel d 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 must be made, signed,***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 251 of 447 and certified by the authorized account representative or any alternate authorized account representative for the persons having an ownership interest with respect to ERCs held in the general account. Each such submission must include the following certification statement by the authorized account representative or any alternate authorized account representative: “I a m authorized to make this submission on behalf of the persons having an ownership interest with respect to the ERCs held in the general account. I certify under penalty of law that I have personally examined, and am familiar with, the statements and inform ation 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, acc urate, 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.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 252 of 447 (3) Changing authorized account representative and alter nate 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 ERCs 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, an d 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, th e authorized account representative, and the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 25 3 of 447 persons with an ownership interest with respect to the ERCs in the general account. (iii)(A) In the event a person having an ownership interest with respect to ERCs 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 respec t to ERCs in the general account, including the addition or removal of a person, the authorized account representative or any alternate authorized account representative must submit a revision to the application for a general account amending the list of p ersons having an ownership interest with respect to the ERCs 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 g eneral account under paragraph (c)(1) of this section has been submitted and received, the Administrator will rely on the application unless***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 254 of 447 and until a superseding complete application for a general account under paragraph (c)(1) of this section is receiv ed 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 authoriz ed 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 o r the finality of any decision or order by the Administrator under the CO 2 Rate

- based 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 ERCs 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 255 of 447 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 ”); (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;***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 256 of 447 (D) The following certification statement by such authorized accou nt 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 **§** 62.16515(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 **§ 6**  2. 16515(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 **§** 62.16515(c)(5) is terminated.” (iv) A notice of delegation submitted unde r 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 257 of 447 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, a dd 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 must include a correctly submitted ERC transfer under § 6 2.16525 for any ERCs in the account to one or more other Allowance Tracking and Compliance System accounts. (ii) If a general account has no ERC transfers to or from the account for a 12

- month period or longer and does not contain any ER Cs, then 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 258 of 447 30

- day peri od, the Administrator receives a correctly submitted ERC transfer under § 6 2.16525 to the account or a statement submitted by the authorized account representative or alternate authorized account representative demonstrating to the satisfaction of the Admi nistrator 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 paragraphs (a) through (c) of this section. (e) Responsibilities of aut horized 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 t o, submissions concerning the deduction or transfer of ERCs in the account, only if the submission has been made, signed, and certified in accordance with § 6 2.16490(a) and § 6 2.16510 or paragraphs (c)(2)(ii) and (5) of this section. (f) ERC identificatio n information
. The Administrator will assign to each ERC issued in the EPA ERC tracking system a unique serial identifier that beings with the two digit postal abbreviation of the State in which it was issued and includes the year it was issued, and the el igible resource category that generated it.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 259 of 447 (g) Records supporting ERC issuance
. The Administrator will maintain in the EPA ERC tracking system records of, for each ERC, all of the following: (1) Account holder names and information; (2) Authorized account representative name and information; (3) Qualifying eligible resource identification number, name, State, and contact information including street address, mailing address, phone number, and email; (4) Category of qualifying eligible resource, according to the categories specified in section § 6 2.16435(a)(4); (5) The date the qualifying eligible resource commenced generation or saving of energy; (6) Individual ERCs, each with a unique serial identifi er that meets the requirements of paragraph (f) of this section; (7) Records of ERC transfers among accounts, including the date of transfer and the accounts involved in the transfer; (8) The date an ERC was surrendered for a compliance demonstration; (9) Date an ERC was retired by the regulatory body; and (10) Each eligibility application, EM&V plan, M&V report, and verification report associated with the issuance of each specific ERC, and each regulatory approval and any documentation that supports the i ssuance of each ERC by the Administrator.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 260 of 447 (h) Access to records supporting ERC issuance
. The Administrator will provide in the EPA ERC tracking system access and functionality to allow each ERC to be traceable by the public to the records listed in § 6 2.16 515(g). This information will be accessible via an electronic, internet

- based portal in the ERC tracking system searchable by, at a minimum, each eligible resource, affected EGU, eligible resource category, and
ERC. (i) Reports . The Administrator will pro vide in the EPA ERC tracking system electronic, internet

- based access to enable the generation of at least the following reports, [for as long as this regulation is effective] [in perpetuity]: (1) Account Activity Reports. By each account holder, reports based on records of their account activity, including the information listed in § 6 2.16515(g); (2) Public Reports. By the public, reports that include: all of the information listed in § 6 2.16515(g); a list of all registered account holders in the ERC trac king system, including compliance accounts and general accounts; a list of all ERC resources (including access to all documentation for such eligible resources); a list of all accredited independent verifiers; and aggregate ERC activity statistics on at le ast an annual basis, for at least the following: issuance of ERCs, transfers among accounts, transfers in or out of the ERC***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 261 of 447 tracking system to/from another approved ERC tracking system (if relevant), and ERC retirements. The ERC tracking system shall provi de this functionality for as long as this regulation is effective; and (3) EPA reports. For the EPA and state regulators, the information listed in § 6 2.16515(g) and any other information regarding ERC issuance, transfer, surrender, and retirement for
purp ose of compliance with this regulation. (j) Interactions with other ERC tracking systems
. If approved in connection with a State plan, then an ERC tracking system may provide for transfers of ERCs to/from another ERC tracking system approved in connection with s State plan by the EPA, or provide for transfers of ERCs to/from an EPA

administered ERC tracking system used to administer a federal plan. To transfer ERCs to or from an EPA

- administered ERC tracking system, the state ERC tracking system must be app roved under subpart UUUU of part 60 of this chapter for such use by the EPA. **§ 6 2.16525**  **How must transfers of ERCs be submitted?** (a) An authorized account representative seeking recordation of an ERC transfer must submit the transfer to the Administrator. (b) An ERC transfer must be correctly submitted if:***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 262 of 447 (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 ERC 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 ERC identified by serial number in the transfer. **§ 6 2.16530**  **When will ERC transfers be recorded?** (a) Except as provided in paragraph (b) of this section, within five business days of receiving an ER C transfer that is correctly submitted under § 6 2.16525, the Administrator will record an ERC transfer by moving each ERC from the transferor account to the transferee account as specified in the transfer. (b) An ERC transfer to or from a compliance accoun t that is submitted for recordation after the allowance transfer deadline for a compliance period and that includes any ERCs allocated for any compliance period before such allowance transfer deadline will not be recorded until after the Administrator comp letes the deductions from such compliance account under § 6 2.16535 for the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 263 of 447 compliance period immediately before such allowance transfer deadline. (c) Where an ERC transfer is not correctly submitted under § 6 2.16525, the Administrator will not record such transfer. (d) Within five business days of recordation of an ERC 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 busine ss days of receipt of an ERC transfer that is not correctly submitted under § 6 2.16525, 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. **§ 6 2.16535**  **How will deductions for compliance with a CO 2**  **emission standard occur?**  For affected EGUs subject to the emission standards listed in Table 1 of this subpart , the owner or operator of an affected
EGU must demonstrate compliance with its CO 2 emission standard in accordance with 62.16420(c) and incorporate ERCs as listed in paragraphs (a) through (f) of this section. (a) Availability for deduction for compliance
. ERCs are available to be deducted from a comp liance account and used for***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 264 of 447 compliance with an affected EGU’s CO 2 emissions standard for a compliance period only if the ERCs: (1) Were allocated for a year in such compliance period or a prior compliance period; and (2) Are held in the affected EGU's comp liance account as of the allowance transfer deadline for such compliance period. (b) Deductions for compliance
. After the recordation, in accordance with § 6 2.16530, of ERC transfers submitted by the ERC transfer deadline for a compliance period, the Admin istrator will deduct from each affected EGU's compliance account ERCs available under paragraph (a) of this section in order to determine whether the affected EGU meets the CO 2 emission standard for such compliance period, as follows: (1) Until the amount of ERCs deducted and subsequently added to the total MWh generated by the affected EGU adjusts the affected EGU’s CO 2 emission rate to equal the CO 2 emission standard for such compliance period; or (2) If there are insufficient ERCs to complete the deductions in paragraph (b)(1) of this section, until no more ERCs available under paragraph (a) of this section remain in the compliance account. (c) Identification of ERCs by serial number
. The authorized account representative for an affected EGU's comp liance account may request that specific ERCs, identified by serial number, in***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 265 of 447 the compliance account be deducted for emissions or excess emissions for a compliance period in accordance with paragraph (b) or (e) of this section. In order to be complete, su ch request must be submitted to the Administrator by the ERC transfer deadline for such compliance period and include, in a format prescribed by the Administrator, the identification of the affected EGU and the appropriate serial numbers. (d) First

- in, fir st

- out . The Administrator will deduct ERCs under paragraph (b) or (e) of this section from the affected EGU'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 ERCs in such request, on a first

- in, first

- out accounting basis. (e) Deductions for exceeding the emission standard
. After making the deductions for compliance under paragraph (b) of this section for a compli ance period in a year in which the affected EGU has exceeded its CO 2 emission standard, the Administrator will deduct from the affected EGU's compliance account an amount of ERCs, allocated for a compliance period in a prior year or the compliance period i n the year of the excess emissions or in the immediately following year, equal to two times the number of ERCs of the affected EGU's excess emissions.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 266 of 447 (f) Recordation of deductions
. The Administrator will record in the appropriate compliance account all de ductions from such an account under paragraphs (b) and (e) of this section. **§ 6 2.16540**  **What monitoring requirements must I comply with?** (a) You must follow the requirements described in paragraphs (a)(1) through (8) of this section to monitor emissions and net energy output at your affected EGU. (1) The owner of operator of an affected EGU required to meet an emission standard must prepare a monitoring plan in accordance with the applicable provisions in § 7 5.53(g) and (h) of this chapter, unless such a plan is already in place under another program that requires CO 2 mass emissions to be monitored and reported according to part 75 of this chapter. (2) Each compliance period shall include only “valid operating hours” in the compliance period, i.e., operat ing hours for which: (i) “Valid data” (as defined in § 6 2.16570) are obtained for all of the parameters used to determine the hourly CO 2 mass emissions (lbs). For the purposes of this subpart, substitute data recorded under part 75 of this chapter are not considered to be valid data; and (ii) The corresponding hourly net energy output value is also valid data (Note: for hours with no useful output, zero is considered to be a valid value).***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 267 of 447 (3) The owner or operator of an affected EGU must measure and repo rt the hourly CO 2 mass emissions (lbs) from each affected unit using the procedures in paragraphs (a)(3)(i) through (vii) of this section, except as provided in paragraph (a)(4) of this section. (i) The owner or operator of an affected EGU must install,

ce rtify, operate, maintain, and calibrate a CO 2 continuous emissions monitoring system (CEMS) to directly measure and record CO 2 concentrations in the affected EGU exhaust gases emitted to the atmosphere and an exhaust gas flow rate monitoring system accordi ng to § 7 5.10(a)(3)(i) of this chapter. As an alternative to direct measurement of CO 2 concentration, the owner or operator of an affected EGU may use data from a certified oxygen (O 2 ) monitor to calculate hourly average CO 2 concentrations, in accordance w ith § 7 5.10(a)(3)(iii) of this chapter. If CO 2 concentration is measured on a dry basis, then you must also install, certify, operate, maintain, and calibrate a continuous moisture monitoring system, according to § 7 5.11(b) of this chapter. Alternatively, you may either use an appropriate fuel

- specific default moisture value from § 7 5.11(b) or submit a petition to the Administrator under § 7 5.66 of this chapter for a site

- specific default moisture value (ii) For each “valid operating hour”, calculate the ho urly
CO 2 mass emission rate (tons/hr), either from Equation F

- 11 in***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 268 of 447 Appendix F to part 75 of this chapter (if CO 2 concentration is measured on a wet basis), or by following the procedure in section 4.2 of Appendix F to part 75 of this chapter (if CO 2 concentration is measured on a dry basis). (iii) Next, multiply each hourly CO 2 mass emission rate by the affected EGU or stack operating time in hours (as defined in § 7 2.2 of this chapter), to convert it to tons of CO 2. Multiply the result by 2000 lb/t on to convert it to lb. (iv) The hourly CO 2 tons/hr values and affected EGU (or stack) operating times used to calculate CO 2 mass emissions are required to be recorded under § 7 5.57(e) of this chapter and must be reported electronically under § 7 5.64(a)(6 ). You must use these data to calculate the hourly CO 2 mass emissions. (v) Sum all of the hourly CO 2 mass emissions values that were calculated according to procedures specified in paragraph (a)(3)(ii) of this section over the entire compliance period. (vi) For each continuous monitoring system used to determine the CO 2 mass emissions from an affected EGU uses, the monitoring system must meet the applicable certification and quality assurance procedures in § 7 5.20 of this chapter and Appendices A and B t o part 75 of this chapter. (vii) The owner operator of an affected EGU must use only unadjusted exhaust gas volumetric flow rates to determine the hourly CO 2 mass emissions from the affected EGU; the owner or***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 269 of 447 operator of an affected EGU must not apply the bias adjustment factors described in section 7.6.5 of Appendix A to part 75 of this chapter to the exhaust gas flow rate data. (4) The owner or operator of an affected EGU that exclusively combusts liquid fuel and/or gaseous fuel may, as an alternative to complying with paragraph (a)(3) of this section, determine the hourly CO 2 mass emissions according to paragraphs (a)(4)(i) through (vi) of this section. (i) Implement the applicable procedures in appendix D to part 75 of this chapter to determine hourly a ffected EGU heat input rates (MMBtu/h), based on hourly measurements of fuel flow rate and periodic determinations of the gross calorific value (GCV) of each fuel combusted. (ii) For each measured hourly heat input rate, use Equation
G

- 4 in Appendix G to p art 75 of this chapter to calculate the hourly CO 2 mass emission rate (tons/hr). (iii) For each valid operating hour (as defined in paragraph (a)(2) of this section, determine the hourly CO 2 mass emission rate (tons/hr) using the procedures specified in paragraph (a)(4)(ii) of this section and multiply it by the affected EGU or stack operating time in hours (as defined in § 7 2.2 of this chapter), to convert to tons of CO 2 . Then, multiply the result by 2000 lb/ton to convert to lb.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 270 of 447 (iv) The hourly CO 2 tons/hr values and affected EGU (or stack) operating times used to calculate CO 2 mass emissions are required to be recorded under § 7 5.57(e) of this chapter and must be reported electronically un der § 7 5.64(a)(6). You must use these data to calculate the hourly CO 2 mass emissions. (v) Sum all of the hourly CO 2 mass emissions values that were calculated according to procedures specified in paragraph (a)(4)(iii) of this section over the entire comp liance period. (vi) The owner or operator of an affected EGU may determine site

- specific carbon

- based F

- factors (F c ) using Equation F

- 7b in section 3.3.6 of appendix F to part 75 of this chapter, and may use these F c values in the emissions calculations in stead of using the default F c values in the Equation G

- 4 nomenclature. (5) The owner or operator of an affected EGU must install, calibrate, maintain, and operate a sufficient number of watt meters to continuously measure and record on an hourly basis net electric output. Measurements must be performed using 0.2 accuracy class electricity metering instrumentation and calibration procedures as specified under ANSI Standards No. C12.20. Further, the owner or operator of an affected EGU that is a combined heat and power facility must install, calibrate, maintain and operate equipment to continuously measure and record on an hourly basis useful thermal output and, if applicable, mechanical output, which are used with net electric***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 271 of 447 output to determine net energy o utput. The owner or operator must calculate net energy output according to paragraph (a)(5)(i) of this section. (i) For each valid operating hour of a compliance period that was used in paragraph (a)(3) or (4) of this section to calculate the total CO 2 mas s emissions, you must determine P net (the corresponding hourly net energy output in MWh) according to the procedures in paragraphs (a)(5)(i)(A) and (B) of this section, as appropriate for the type of affected EGU(s). For an operating hour in which a valid CO 2 mass emissions value is determined according to paragraph (a)(3) or (4) of this section, if there is no gross or net electrical output, but there is mechanical or useful thermal output, then you must still determine the net energy output for that hour. In addition, for an operating hour in which a valid CO 2 mass emissions value is determined according to paragraph (a)(3) or (4) of this section, but there is no (i.e., zero) gross electrical, mechanical, or useful thermal output, you must use that hour in the compliance determination. For hours or partial hours where the gross electric output is equal to or less than the auxiliary loads, net electric output shall be counted as zero for this calculation. (A) Calculate P net for your affected EGU using the fo llowing equation. All terms in the equation must be expressed in units***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 272 of 447 of megawatt

- hours (MWh). To convert each hourly net energy output value reported under part 75 of this chapter to MWh, multiply by the corresponding EGU or stack operating time.

P

net = ( Pe ) ST + ( Pe ) CT + ( Pe ) IE − ( Pe ) A TDF + [ ( Pt ) PS + ( Pt ) HR + ( Pt ) IE ] Where:

P net = Net energy output of your affected EGU for each valid operating hour (as defined in paragraph (a)(2) of this section) in MWh. (Pe) ST = Electric energy output plus mechanical energy output (if any) of steam turbines in MWh. (Pe) CT = Electric energy output plus mechanical energy output (if any) of stationary combustion turbine(s) in MWh. (Pe) IE = Electric energy output plus mechanical energy output (if any) of your affected EGU’s integrated equipment that provides electricity or mechanical energy to the affected EGU or auxiliary equipment in MWh. (Pe) A = Electric energy used for any auxiliary loads in MWh. (Pt) PS = Useful thermal output of steam (measured relative to SATP conditions, as applicable) that is used for applications that do not generate additional electricity, produce mechanical energy output, or enhance the performance of the affected EGU. This is calculated using the equation specified in paragraph (a)(5)(i)(B) of this secti on in MWh. (Pt) HR = Non steam useful thermal output (measured relative to SATP conditions, as applicable) from heat recovery that is used for applications other than steam generation or performance enhancement of the affected EGU in MWh. (Pt) IE = Useful thermal output (relative to SATP conditions, as applicable) from any integrated equipment is used for applications that do not generate additional steam, electricity, produce***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 273 of 447 mechanical energy output, or enhance the performance of the affected EGU in MWh. TDF = Electric Transmission and Distribution Factor of 0.95 for a combined heat and power affected EGU where at least on an annual basis 20.0 percent of the total net energy output consists of electric or direct mechanical output and 20.0 percent of the t otal net energy output consists of useful thermal output on a 12

- operating month rolling average basis, or 1.0 for all other affected EGUs. (B) If applicable to your affected EGU (for example, for combined heat and power), then you must calculate (Pt) PS u sing the following equation:
( Pt ) PS = Q m × H CF Where:

(Pt) ps = Useful thermal output of steam (measured relative to SATP conditions, as applicable) that is used for applications that do not generate additional electricity, produce mechanical energy output, or enhance the performance of the affected EGU. Q m = Measured steam flow in kilograms (kg) (or pounds (lb)) for the operating hour. H = Enthalpy of the steam at measured temperature and pressure (relative to SATP conditions or the energy in the condensa te return line, as applicable) in Joules per kilogram (J/kg) (or Btu/lb). CF = Conversion factor of 3.6 x 10 9 J/MWh or 3.413 x 10 6 Btu/MWh. fuels: landfill gas, digester gas, refinery gas, sour gas, blast furnace gas, coal

- derived gas, producer gas, coke oven gas, or any gaseous fuel (C) Sum all of the values of P net over the entire compliance period. Then, divide the total CO 2 mass emissions from paragraph (a)(3)(v) or (a)(4)(v) of this section,***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 274 of 447 as applicable, by the sum of the P net values to determine the CO 2 emission rate (lb/net MWh) for the compliance period. (ii) [Reserved] (6) In accordance with § 6 0.13(g), if two or more affected EGUs i mplementing the continuous emissions monitoring provisions in paragraph (a)(2) of this section share a common exhaust gas stack and are subject to the same emission standard, then the owner or operator may monitor the hourly CO 2 mass emissions at the commo n stack in lieu of monitoring each EGU separately. If an owner or operator of an affected EGU chooses this option, then the hourly net electric output for the common stack must be the sum of the hourly net electric output of the individual affected EGUs an d the operating time must be expressed as “stack operating hours” (as defined in § 7 2.2 of this chapter). (7) In accordance with § 6 0.13(g), if the exhaust gases from an affected EGU implementing the continuous emissions monitoring provisions in paragraph (a)(3)(i) of this section are emitted to the atmosphere through multiple stacks (or if the exhaust gases are routed to a common stack through multiple ducts and you elect to monitor in the ducts), then the hourly CO 2 mass emissions and the “stack operating time” (as defined in § 7 2.2 of this chapter) at each stack or duct must be monitored separately. In this case, the owner or operator of an affected EGU must determine compliance with an applicable emission***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 275 of 447 standard by summing the CO 2 mass emissions measur ed at the individual stacks or ducts and dividing by the net energy output for the affected EGU. (8) If two or more affected EGUs serve a common electric generator, then you must apportion the combined hourly net energy output to the individual affected E GUs according to the fraction of the total steam load contributed by each EGU. Alternatively, if the affected EGUs are identical, then you may apportion the combined hourly net electrical load to the individual EGUs according to the fraction of the total heat input contributed by each EGU. (b) [Reserved] **§ 6 2.16545**  **May I bank CO 2**  **ERCs for future use or transfer?** (a) An ERC 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 ERC that is held in a compliance account or a general account will remain in such account unless and until the ERC is deducted or transferred under § § 6 2. 16530, 62.16535, 62.16550, or 62.16565. **§ 6 2.16550**  **How does the Administrator process accoun t errors?**  The Administrator may, at his or her sole discretion and on his or her own motion, correct any error in any Allowance Tracking and Compliance System account. Within 10 business days***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 276 of 447 of making such correction, the Administrator will notify the

au thorized account representative for the account. **§ 6 2.16555**  **What are my reporting, notification and submission requirements?**  (a) You must prepare and submit reports according to paragraphs (a) through (g) of this section, as applicable. (1) You must meet all applicable reporting requirements and submit reports as required under subpart G of part 75 of this chapter and you must include the following information, as applicable in the quarterly reports: (i) The percentage of valid operating hours in each quarter described 62.16540(a)(2) (i.e., the total number of valid operating hours) in that period divided by the total number of operating hours in that period, multiplied by 100 percent); (ii) The hourly CO 2 mass emission rate values (tons/hr) and unit (or stack) operating times, (as monitored and reported according to part 75 of this chapter), for each valid operating hour in the compliance period; (iii) The net electric output and the net energy output (P net ) values for each valid operating hour in the compliance period; (iv) The calculated CO 2 mass emissions (lb) for each valid operating hour in the compliance period;***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 277 of 447 (v) The sum of the hourly net energy output values and the sum of the hourly CO 2 mass emissions values, for all of the valid operating hours in the compliance period; (vi) ERC replacement generation (if any), properly justified (see paragraph (a)(1)(viii) of this section); (vii) The calculated CO 2 mass emission rate for the complia nce period (lb/net MWh); and (viii) If the report covers the final quarter or a compliance period, then you must include the CO 2 emission standard (as identified in Table 1 of this subpart ) with which your affected EGU must comply, your CO 2 emission rate calculated according to 62.16420(c), and all if an affected EGU is complying with an emission standard by using ERCs the designated representative must include in their report a list of all unique ERC serial numbers retired in the compliance period, and, f or each ERC, the date an ERC was surrendered and retired and eligible resource identification information sufficient to demonstrates that it meets the requirements of 62.16435 and qualifies to be issued ERCs (including location, type of qualifying generati on or savings, date commenced generating or saving, and date of generation or savings for which the ERC was issued). (b) If any required monitoring system has not been provisionally certified by the applicable date on which***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 278 of 447 emissions data reporting is requ ired to begin under paragraph (a) of this section, then the maximum (or in some cases, minimum) potential value for the parameter measured by the monitoring system shall be reported until the required certification testing is successfully completed, in acc ordance with § 7 5.4(j) of this chapter, § 7 5.37(b) of this chapter, or section 2.4 of appendix D to part 75 of this chapter (as applicable). Operating hours in which CO 2 mass emission rates are calculated using maximum potential values are not “valid operating hours” (as defined in § 6 2.16540(a)), and shall not be used in the compliance determinations. (c) The designated representative of each affected EGU at the facilit y must make all submissions required under the CO 2 Rate

- based Trading Program, except as provided in § 6 2.16510. This requirement does not change, create an exemption from, or otherwise affect the responsible official submission requirements under a title V operating permit program in parts 70 and 71 of this chapter. (d) You must submit all electronic reports required under paragraph (a) of this section using the Emissions Collection and Monitoring Plan System (ECMPS) Client Tool provided by the Clean Air M arkets Division in the Office of Atmospheric Programs of
EPA.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 279 of 447 (e) For affected EGUs under this subpart that are not in the Acid Rain Program, you must also meet the reporting requirements and submit reports as required under subpart G of part 75 of this ch apter, to the extent that those requirements and reports provide applicable data for the compliance demonstrations required under this subpart. (f) If your affected EGU captures CO 2 to meet the applicable emission standard, then you must report in accorda nce with the requirements of 40 CFR part 98, subpart PP, of this chapter and either: (1) Report in accordance with the requirements of 40 CFR part 98, subpart RR, of this chapter, if injection occurs on

site; or (2) Transfer the captured CO 2 to an affected EGU or facility that reports in accordance with the requirements of 40 CFR part 98, subpart RR, of this chapter, if injection occurs off

- site. (g) You must prepare and submit notifications specified in § 7 5.61 of this chapter, as applicable to your affected EGUs. **§ 6 2.16560 What are my recordkeeping requirements?**  (a) The owner or operator of each affected EGU must maintain the records, as described in (a)(1) of this section, for at least 5 years following the date of each compliance period, occurrence, measurement, maintenance, corrective action, report, or record.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 280 of 447 (1) Unless otherwise provided, the owner or operator of an affected EGU must maintain the following records on site for at least 2 years after t he date of each compliance period, compliance true

- up period, occurrence, measurement, maintenance, corrective action, report, or record, whichever is latest, according to § 6 0.7. The owner or operator of an affected EGU may maintain the records off site a nd electronically for the remaining year(s). 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 § 6 2.16500 for the designated representative for each af fected EGU and all documents that demonstrate the truth of the statements in the certificate of representation; provided that the certificate and documents must be retained on site at the affected EGU beyond such 5

- year period until such certificate of rep resentation and documents are superseded because of the submission of a new certificate of representation under § 6 2.16500 changing the designated representative. (ii) All emissions monitoring information, in accordance with this subpart. (iii) Copies of a ll reports, compliance certifications, documents, data files, calculations and methods, other submissions and all records made or required under, or to demonstrate compliance with an affected EGU’s emission standard***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 281 of 447 under § 6 2.16420 and any other requireme nts of the CO 2 Rate

- based Trading Program. (iv) Data that is required to be recorded by 40 CFR part 75, subpart F, of this chapter. (v) Data with respect to any ERCs generated by the affected EGU or used by the affected EGU in its compliance demonstration including the information in paragraphs (a)(1)(v)(A) and (B) of this section. (A) All documents related to any ERCs used in a compliance demonstration, including each eligibility application, EM&V plan, M&V report, and independent verifier verification rep ort associated with the issuance of each specific ERC, and each regulatory approval and any documentation that supports the issuance of each ERC by the Administrator. (B) All records and reports relating to the surrender and retirement of ERCs for complian ce with this regulation, including the date each individual ERC with a unique serial identification number was surrendered and/or retired. (2) [Reserved] (b) [Reserved] **§ 6 2.16565**  **What actions may the Administrator take on submissions?**  (a) The Administrator may review and conduct independent audits concerning any submission under the CO 2 Rate

- based Trading***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 282 of 447 Program and make appropriate adjustments of the information in the submission. (b) The Administrator may deduct ERCs from or transfer ERCs
to a compliance account, based on the information in a submission, as adjusted under paragraph (a) of this section, and record such deductions and transfers.
**DEFINITIONS § 6**  **2.16570 What definitions apply to this subpart?**  The terms used in this subpart have t he meanings set forth in this section as follows: Acid Rain Program means a multi

- state SO 2 and NO X 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 ch apter. Administrator means the Administrator of the United States Environmental Protection Agency or his or her delegate, or the authorized state official under an approved state plan that incorporates this subpart. Affected electric generating unit or Aff ected EGU means any steam generating unit, IGCC, or stationary combustion turbine that meets the applicability requirements in § § 6 0.5840(b) and 60.5845 of this chapter. An affected EGU is not an eligible resource.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 283 of 447 Allowable CO 2 emission rate means, for an affected EGU, the most stringent State or federal CO 2 emission rate limit (in lb/MWhr or, if in lb/mmBtu, converted to lb/MWhr by multiplying it by the affected EGU's heat rate in mmBtu/MWhr) that is applicable to the affected EGU and covers the longest averaging period not exceeding 1 year. Allowance Tracking and Compliance System means the system by which the Administrator records allocations, deductions, and transfers of ERCs under the CO 2 Rate

- based Trading Program. Such allowances are allocated, rec orded, held, deducted, or transferred only as whole ERCs. Allowance system means a control program under which the owner or operator of each affected EGU is required to hold an authorization for each specified unit of carbon dioxide emitted from that facil ity during a specified period and which limits the total amount of such authorizations available to be held for carbon dioxide for a specified period and allows the transfer of such authorizations not used to meet the authorization

- holding requirement. Alternate designated representative means, for a CO 2 Rate

based Trading affected EGU and each affected EGU at the facility, the natural person who is authorized by the owners and operators of the affected EGU and all such affected EGUs at the affected EGU, in accordance with this subpart, to act on behalf***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 284 of 447 of the designated representative in matters pertaining to the CO 2 Rate

- based Trading Program. If the affected EGU is also subject to the Acid Rain Program, TR NO X Annual Trading Program, TR NO X Ozone Seaso n Trading Program, TR SO 2 Group 1 Trading Program, or
TR SO 2 Group 2 Trading Program, then this natural person shall be the same natural person as the alternate designated representative, as defined in the respective program. Annual capacity factor means t he ratio between the actual heat input to an EGU during a calendar year and the potential heat input to the EGU had it been operated for 8,760 hours during a calendar year at the base load rating. Also see capacity factor. Authorized account representativ e means, for a general account, the natural person who is authorized, in accordance with this subpart, to transfer and otherwise dispose of ERCs held in the general account and, for a CO 2 Rate

- based Trading Program affected EGU's, the designated representa tive of the affected EGU is the authorized account representative. 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 sub part, designed to interpret and convert individual output signals from pollutant concentration monitors, flow monitors, diluent gas monitors, and other component parts of the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 285 of 447 monitoring system to produce a continuous record of the measured parameters in th e measurement units required by this subpart. Base load rating means the maximum amount of heat input (fuel) that an EGU can combust on a steady state basis, as determined by the physical design and characteristics of the EGU at ISO conditions. For a stati onary combustion turbine , base load rating includes the heat input from duct burners. Baseline means the electricity use that would have occurred without implementation of a specific EE measure. Biomass means biologically based material that is living or dead (e.g., trees, crops, grasses, tree litter, roots) above and belowground, and available on a renewable or recurring basis. Materials that are biologically based include non

- fossilized, biodegradable organic material originating from modern or contempor arily grown plants, animals, or microorganisms (including plants, products, byproducts and residues from agriculture, forestry, and related activities and industries, as well as the non

- fossilized and biodegradable organic fractions of industrial and munic ipal wastes, including gases and liquids recovered from the decomposition of non

- fossilized and biodegradable organic material). Boiler means an enclosed fossil

- or other

- fuel

- fired combustion device used to produce heat and to transfer heat to recirculati ng water, steam, or other medium.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 286 of 447 Business day means a day that does not fall on a weekend or a federal holiday. Capacity factor means, as used for the output based set

aside, the ratio of the net electrical energy produced in a process which might result in highly variable sulfur content or heating value by a generating unit for the period of time considered to the electrical energy that could have been produced at continuous net summer capacity during the same period. Certifying official means a natural pe rson 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) Fo r 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 Cle an Air Act, 42 U.S.C. 7401, et
seq . CO 2 emissions limitation means the tonnage of CO 2 emissions authorized in a compliance period in a given year by the CO 2***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 287 of 447 allowances available for deduction for the affected EGU under § 6 2.16535(a) for such compliance period.
CO 2 Rate

- Based Trading Program means a multi

- state CO 2 air pollution control and emission reduction program established in accordance with this subpart and subpart UUUU of part 60 of this chapter (including such a program that is revised in a State plan or state allowance distribution methodology, or by the Administrator under subpart UUUU of part 60 of this chapter, as a means of controlling CO 2 emissions. Coal means the definition as defined in subpart TTTT of part 60 of this chapter. Combined cycle unit means an electric generating unit that

uses a stationary combustion turbine from which the heat from the turbine exhaust gases is recovered by a heat recovery steam generating unit to generate additional electricity. Combined heat and p ower unit or CHP unit, ( also known as “cogeneration” ) means an electric generating unit that use a
steam

- generating unit or stationary combustion turbine to simultaneously produce both electric (or mechanical) and useful thermal output from the same primar y energy affected EGU. Common practice baseline or CPB means a baseline derived based on a default technology or condition that would have been in place at the time of implementation of an EE measure in the absence of the EE measure (for example, the stand ard or market

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– Do Not Cite, Quote or Release During Review*** Page 288 of 447
average or pre - existing equipment that a typical consumer/building owner would have continued to use or would have installed at the time of project implementation in a given circumstance, such as a given building type, EE program type or deli very mechanism, and geographic region). Common stack means a single flue through which emissions from 2 or more units are exhausted. Compliance account means an Allowance Transfer and Compliance System account, established by the Administrator for an affe cted EGU under this subpart, in which any ERC allocations to the affected EGUs at the affected EGU are recorded and in which are held any CO 2 allowances available for use for a compliance period in a given year in complying with the affected
EGU's CO 2 emission standard in accordance with § § 6 2.16420 and 62.16535. Compliance period means the multi

- year periods starting January 1 of the first calendar year of the period, except as provided in § 6 2.16420(c)(3), and ending on December 31 of the last calend ar year, inclusive: (1) Compliance Period 1 means the period of 3 calendar years from January 1 2022 to December 31, 2024 ; (2) Compliance Period 2 means the period of 3 calendar years from January 1, 2025 to December 31, 2027 ; and***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 289 of 447 (3) Compliance Period 3 m eans the period of 2 calendar years from January 1, 2028 to December 31, 2029. Conservation voltage regulation (or reduction) or CVR means an EE measure that produces electricity savings by reducing (or regulating) voltage at the electrical feeder level. 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 CO 2 emissions, stack gas volumetric flow rate, stack gas moisture content, and
O 2 concentration (as applicable), in a manner consistent with part 75 of this chapter and § 6 2.16540(a)(3) . The following systems are the principa l 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; (2) A moisture monitoring system, as defined in § 7 5.11(b)(2) of this chapter and providing a permanent, continuous record of the stack gas moisture content, in percent
H 2 O;***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 290 of 447 (3) A CO 2 monitoring system, consisting of a CO 2 pollutant concentration monitor (or an O 2 monitor plus suitable mathematical equations from which the CO 2 concentration is derived) and an automated data acquisition and handling system and providing a permanent, continuous record of CO 2 emissions, in percent CO 2 ; and (4) An O 2 monitoring syst em, consisting of an O 2 concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record of
O 2 , in percent O 2 . Control area operator means an electric system or systems, bounded by interconnection met ering and telemetry, capable of controlling generation to maintain its interchange schedule with other control areas and contributing to frequency regulation of the interconnection. Deemed savings means estimates of average annual electricity savings for a single unit of an installed demand

side EE measure that (a) has been developed from data sources (such as prior metering studies) and analytical methods widely considered acceptable for the measure and (b) is applicable to the situation and conditions in which the measure is implemented. Individual parameters or calculation methods also can be deemed, including EUL values. Common sources of deemed savings values are previous evaluations and studies that***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 291 of 447 involved actual measurements and analyses. Deemed sav ings values are applicable for specific demand

- side EE measures. A single deemed savings value may not be used for a program as a whole, nor for a multi

- measure project, because of the degree of variation in how systems are used in different building types or market segments. Demand

- side energy efficiency or demand

- side EE means energy efficiency activities, projects, programs or measures resulting in electricity savings.
Derate means a decrease in the available capacity of an electric generating unit, due to a system or equipment modification or to discounting a portion of a generating units capacity for planning purposes. Designated representative means, for a CO 2 Rate

- based Trading affected EGU and each affected EGU at the affected EGU, the natural person who is authorized by the owners and operators of the affected EGU and all such affected EGUs at the affected EGU, in accordance with this subpart, to represent and legally bind each owner and operator in matters pertaining to the CO 2 Rate

- based Trading Program. If the CO 2 Rate

- based Trading affected EGU is also subject to the Acid Rain Program, TR NO X Annual Trading Program, TR NO X Ozone Season Trading Program, TR
SO 2 Group 1 Trading Program, or TR SO 2 Group 2 Trading Program,***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 292 of 447 then this natural person shall be the same natural person as the designated representative, as defined in the respective program. Design efficiency means the rated overall net efficiency (e.g., electric plus the rmal output) on a higher heating value basis of the EGU at the base load rating and ISO conditions. Distillate oil means the definition as defined in subpart TTTT of part 60 of this chapter. Effective useful life (EUL) means the duration over which electricity savings from an EE measure occur, reported in years. EUL values are typically specific to individual EE projects but also may be specified by EE program. Electricity savings means the savings that results from a

c hange in electricity use resulting from the implementation of demand

- side EE. Eligible resource means a resource that meets the requirements of § 6 2.16435 and has been registered with the EPA

administered ERC tracking system or an ERC tracking system
appro ved in a State plan by the EPA . An eligible resource is not an affected EGU
. EM&V plan means an evaluation measurement and verification plan that meets the requirements of § 6 2.16455
. Emissions means air pollutants exhausted from an affected EGU into the atmosphere; emissions must be measured, recorded,***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 293 of 447 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 affected EGU or affected EGU is required to measure, record, and report such air pollutants in accordance with this subpart, in accordance with part 75 of this chapter. Emission rate credit (ERC) means a tradable compliance instrument that meets the requirements of § 6 0.5 790(c) of this chapter. ERC deduction or deduct ERCs means the permanent withdrawal of ERCs by the Administrator from a compliance account ( e.g. , in order to account for compliance with the applicable CO 2 emission standard). Energy efficiency program or EE program means organized activities sponsored and funded by a particular entity to promote the adoption of one or more EE project or EE measure for the purpose of reducing electricity use. Energy efficiency project or EE project means a combination of multiple technologies, energy

- use practices or behaviors implemented at a single facility or premises for the purpose of reducing electricity use; EE projects may be implemented as part of an EE program or as an independent privately

- funded action.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 294 of 447 Energy efficiency measure or EE measure means a single technology, energy

- use practice or behavior that, once implemented or adopted, reduces electricity use of a particular end

- use, facility, or premises; EE measures may be implemented as part of an EE program or as an independent privately

- funded action. ERC held or hold ERCs means the ERCs treated as included in an Allowance Tracking and Compliance System account as of a specified point in time because at that time they: (1) Have been recorded by the Administr ator in the account or transferred into the account by a correctly submitted, but not yet recorded, ERC transfer in accordance with this subpart; and (2) Have not been transferred out of the account by a correctly submitted, but not yet recorded, ERC trans fer in accordance with this subpart. ERC transfer deadline means, for a compliance period in a given year, 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 compliance period and is the deadline by which an ERC transfer must be submitted for recordation in a affected EGU's compliance account in order to be available for use in complying with the affected EGU's CO 2***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 295 of 447 emission standard for such complia nce period in accordance with
§ § 6 2.16420 and 62.16535. Essential generating characteristics means any characteristic that affects the eligibility of the qualifying energy generating resource for generating ERCs pursuant to this regulation, including the t ype of resource. Excess emissions means any ton of emissions from the affected EGUs at an affected EGU during a compliance period that exceeds the CO 2 emissions limitation for the affected EGU for such compliance period. Existing state program, requirement, or measure means, in the context of a State plan, a regulation, requirement, program, or measure administered by a state, utility, or other entity that is currently established. This may include a regulation or other legal requirement that inc ludes past, current, and future obligations, or current programs and measures that are in place and are anticipated to be continued or expanded in the future, in accordance with established plans. An existing state program, requirement, or measure may have past, current, and future impacts on EGU CO 2 emissions. Facility 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 296 of 447 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. Final period means the period that begins on January 1, 2030 and continues thereafter. The final period is comprised of final compliance periods, each of which is 2 calendar years (with a calendar year beginning on January 1 and ending on December 31). Final compliance period means a compliance period within
t he final period, each being 2 calendar years (with a calendar year beginning on January 1 and ending on December 31), and the first final compliance period beginning on January 1, 2030 and ending December 31, 2031. Fossil fuel means the definition as defi ned in subpart TTTT of part 60 of this chapter. Fossil

- fuel

- fired means, with regard to an affected EGU, combusting any amount of fossil fuel. Gaseous fuel means the definition as defined in subpart TTTT of part 60 of this chapter. General account means an Allowance Tracking and Compliance System account established under this subpart that is not a compliance account.
Generator means a device that produces electricity.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 297 of 447 Gross electrical output means, for an affected EGU, electricity made available fo r 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 affected EGU and any on

- site emission controls).
GS

- ERC means an ERC iss ued for net energy output MWh of gas shift to, but which may not be used for compliance by, an affected EGU that is a stationary combustion turbine. Aside from this restriction on use for compliance, GS

- ERCs are subject to all other provisions of this subp art related to ERCs. Heat input means, for an affected EGU 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 affected EGU multiplied by the fuel feed rate (in lb of fuel/time), a s 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 an affected EGU, the amount of heat input (in mmBtu) divided by affected EGU operating time (in hr) or, for an affected EGU and a specific fuel, the amount of heat input attributed to the fuel (in mmBtu) divided by the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 298 of 447 affected EGU operating time (in hr) during which the affected EGU combusts the fuel.
Heat rate means, for an affected EGU, the affected EGU's maximum design heat input (in Btu/hr), divided by the product of 1,000,000 Btu/mmBtu and the affected EGU's maximum hourly load. Heat recovery steam generating unit ( HRSG) means a unit in which hot exhaust gases from the combustion turbine engine are routed in order to extract heat from the gases and generate useful output. Heat recovery steam generating units can be used with or without duct burners. Indian country means “Indian country” as defined in 18 U.S.C. 1151. Integrated gasification combined cycle facility or IGCC facility means a combined cycle facility that is designed to burn fuels containing 50 percent (by heat input) or more solid

derived fuel not meeting the definition of natural gas plus any integrated equipment that provides electricity or useful thermal output to either the affected facility or auxiliary equipment. The Administrator may waive the 50 percent solid

- derived fuel requirement during periods of the gasification system construction, startup and commissioning, shutdown, or repair. No solid fuel is directly burned in the unit during operation. Interim period means the period of 8 calendar years from
J anuary 1, 2022 to December 31, 2029. The interim period is***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 299 of 447 comprised of three compliance periods, compliance period 1, compliance period 2, and compliance period 3. ISO conditions means 288 Kelvin (15 o C), 60 percent relative humidity and 101.3 kilopascal s pressure. Liquid fuel means the definition as defined in subpart TTTT of part 60 of this chapter. M&V report means a monitoring and verification report that meets the requirements of § 6 2.16460. Maximum design heat input means, for an affected EGU, the maximum amount of fuel per hour (in Btu/hr) that the affected EGU is capable of combusting on a steady state basis as of the initial installation of the affected EGU as specified by the manufacturer of the affected EGU. Mechanical output means the useful m echanical energy that is not used to operate the affected facility, generate electricity and/or thermal output, or to enhance the performance of the affected facility. Mechanical energy measured in horsepower hour should be converted into MWh by multiplyin g it by 745.7 then dividing by 1,000,000. 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.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 300 of 447 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 an d 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 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 the definition as defined in subpart TTTT of part 60 of this chapter
. Net

- electric output means the amount of gross generation the genera tor(s) produce (including, but not limited to, output from steam turbine(s), combustion turbine(s), and gas expander(s)), as measured at the generator terminals, less the electricity used to operate the plant (i.e., auxiliary loads); such uses include fuel handling equipment, pumps, fans, pollution control equipment, other electricity needs, and***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 301 of 447 transformer losses as measured at the transmission side of the step up transformer (e.g., the point of sale). Net energy output means: (1) The net electric or mechanical output from the affected facility, plus 100 percent of the useful thermal output measured relative to SATP conditions that is not used to generate additional electric or mechanical output or to enhance the performance of the affected EGU (e.g., steam delivered to an industrial process for a heating application ). ); and (2) For combined heat and power facilities where at least 20.0 percent of the total gross or net energy output consists of electric or direct mechanical output and at least 20.0 per cent of the total gross or net energy output consists of useful thermal output on a 12

- operating month rolling average basis, the net electric or mechanical output from the affected EGU divided by 0.95, plus 100 percent of the useful thermal output ; (e.g., steam delivered to an industrial process for a heating application). Net summer capacity means the maximum output, commonly expressed in megawatts (MW), that generating equipment can supply to system load, as demonstrated by a multi

- hour test, at the time of summer peak demand (period of June 1 through September 30.) This output reflects a reduction in capacity due to electricity use for station service or auxiliaries.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 302 of 447 Operate or operation means, with regard to an affected EGU, to combust fuel. Operator me ans, for a CO 2 Mass Rate

- based Trading facility affected EGU or an affected EGU at a facility affected
EGU respectively, any person who operates, controls, or supervises an affected EGU at the facility affected EGU or the affected EGU and shall include includes , but is not be limited to, any holding company, utility system, or plant manager of such facility affected EGU or affected EGU.
Owner means, for a CO 2 Mass Rate

- based Trading facility affected EGU or an affected EGU at a facility an affected EGU respectively, any of the following persons: (1) Any holder of any portion of the legal or equitable title in an affected EGU at the facility affected EGU or the affected EGU; (2) Any holder of a leasehold interest in an affected EGU at the facility affected EGU or the affected EGU, 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 affected EGU; and***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 303 of 447 ( 3) Any purchaser of power from a affected EGU at the facility affected EGU or the affected EGU under a life

- of

- the

unit, firm power contractual arrangement. Permanently retired means, w ith regard to an affected EGU, an affected EGU that is unavailable for service and that for which the affected EGU's owners and operators do not expect to return to service (1) have taken on as enforceable obligations in the future operating permit that cover s the affected EGU the conditions of 62.16415, or (2) rescinded or otherwise terminated all permits required for construction or operation of the affected EGU under the Clean Air Act. Cessations in operations that do not meet this definition do not constit ute permanent retirements
. Permitting authority means “permitting authority” Petroleum means the definition as defined in §§70.2 and 71.2 subpart TTTT of part 60 of this chapter. Petroleum means crude oil or a fuel derived from crude oil, including, but not limited to, distillate and residual oil. Qualifying Qualified biomass means a biomass feedstock that is demonstrated to qualify as a method to control increases of
CO 2 levels in the atmosphere. Random error means errors occurring by chance that may

cause e lectricity savings values to be inconsistently overestimated or underestimated, and may result from a change in***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 304 of 447 electricity use due to unaccounted

- for factors that affect electricity use. The magnitude of random error can be quantified based on the variati ons observed across different units. 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 CO 2 allowances ERCs , the moving of CO 2 allowances ERCs by the Administrator into, out of, or between Allowance Management Tracking and Compliance System accounts, for purposes of allocation, transfer, or deduction. Reference method means any direct test method of sampling and analyzing for an air pollutant as s pecified in § 7 5.22 of this chapter. Replacement , replace , or replaced means, with regard to an affected EGU, the demolishing of an affected EGU, or the permanent retirement and permanent disabling of an affected EGU, and the construction of another affect ed EGU (the replacement affected EGU) to be used instead of the demolished or retired affected EGU (the replaced affected EGU).***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 305 of 447 Solid fuel means any fuel that has a definite shape and volume, has no tendency to flow or disperse under moderate stress, and i s not liquid or gaseous at ISO conditions. This includes, but is not limited to, coal, biomass, and pulverized solid fuels. the definition as defined in subpart TTTT of part 60 of this chapter. Solid waste incineration unit means a stationary, fossil

fuel

- fired boiler or stationary, fossil

- fuel

- fired combustion turbine that is a “solid waste incineration unit” as defined in section 129(g)(1) of the Clean Air Act. Systematic error means inaccuracies in the same direction, causing electricity savi ngs values to be consistently either overestimated or underestimated, and may result from factors such as incorrect assumptions, a methodological issue, or a flawed reporting system. Standard ambient temperature and pressure (SATP) conditions means 298.15 Kelvin (25 o C, 77 o F )) ) and 100.0 kilopascals (14.504 psi, 0.987 atm) pressure. The enthalpy of water at SATP conditions is 50 Btu/lb. State agent means an entity acting on behalf of the State , with the legal authority of the State
. State measures means m easures that the State adopts and implements as a matter of state law. Such measures are***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 306 of 447 enforceable only per state law, and are not included in and codified as part of the federally enforceable State plan. Stationary combustion turbine means all equipment , including but not limited to the turbine engine, the fuel, air, lubrication and exhaust gas systems, control systems (except emissions control equipment), heat recovery system, fuel compressor, heater, and/or pump, post

- combustion emissions control techn ology, and any ancillary components and sub

components comprising any simple cycle stationary combustion turbine, any combined cycle combustion turbine, and any combined heat and power combustion turbine based system plus any integrated equipment that prov ides electricity or useful thermal output to the combustion turbine engine, heat recovery system or auxiliary equipment. Stationary means that the combustion turbine is not self

- propelled or intended to be propelled while performing its function. It may, h owever, be mounted on a vehicle for portability. If a stationary combustion turbine burns any solid fuel directly then it is considered a steam generating unit. Steam generating unit means any furnace, boiler, or other device used for combusting fuel and p roducing steam (nuclear steam generators are not included) plus any integrated equipment that provides electricity or useful thermal output to the affected facility or auxiliary equipment.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 307 of 447 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” o r “service” deadline shall be determined by the date of dispatch, transmission, or mailing and not the date of receipt. Transmission and distribution loss means the difference between the quantity of electricity that serves a load (measured at the busbar o f the generator) and the actual electricity use at the final distribution location (measured at the on

- site meter). Unit operating day means, with regard to an affected EGU, a calendar day in which the affected EGU combusts any fuel. Unit operating hour or hour of unit operation means, with regard to an affected EGU, an hour in which the affected EGU combusts any fuel. Uprate means a n increase in available electric generating unit power capacity due to a system or equipment modification. Useful thermal output means the thermal energy made available for use in any heating application (e.g., steam***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 308 of 447 delivered to an industrial process for a heating application, including thermal cooling applications) that is not used for electric generation, me chanical output at the affected EGU, to directly enhance the performance of the affected EGU (e.g., economizer output is not useful thermal output, but thermal energy used to reduce fuel moisture is considered useful thermal output), or to supply energy to a pollution control device at the affected EGU. Useful thermal output for affected EGU(s) with no condensate return (or other thermal energy input to the affected EGU(s)) or where measuring the energy in the condensate (or other thermal energy input to th e affected EGU(s)) would not meaningfully impact the emission rate calculation is measured against the energy in the thermal output at SATP conditions. Affected EGU(s) with meaningful energy in the condensate return (or other thermal energy input to the af fected EGU) must measure the energy in the condensate and subtract that energy relative to SATP conditions from the measured thermal output. Utility power distribution system means the portion of an electricity grid owned or operated by a utility and dedi cated to delivering electricity to customers. Valid data means quality

- assured data generated by continuous monitoring systems that are installed, operated, and maintained according to part 75 of this chapter. For CEMS, the initial certification requiremen ts in §75.20 of this chapter and***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 309 of 447 appendix A to part 75 of this chapter must be met before quality

- assured data are reported under this subpart; for on

going quality assurance, the daily, quarterly, and semiannual/annual test requirements in sections 2.1, 2 .2, and 2.3 of appendix B to part 75 of this chapter must be met and the data validation criteria in sections 2.1.5, 2.2.3, and 2.3.2 of appendix B to part 75 of this chapter apply. For fuel flow meters, the initial certification requirements in section 2. 1.5 of appendix D to part 75 of this chapter must be met before quality

- assured data are reported under this subpart (except for qualifying commercial billing meters under section 2.1.4.2 of appendix D), and for on

- going quality assurance, the provisions i n section 2.1.6 of appendix D to part 75 of this chapter apply (except for qualifying commercial billing meters). Verification report means a report that meets the requirements of §62.16270. Waste to Energy or WTE means a process that burns the biogenic f raction of municipal solid waste (which is considered a qualifying biomass feedstock) to generate electricity or heat. **§62.16380 Measurements, abbreviations, and acronyms.** The measurements, abbreviations, and acronyms used in this subpart are defined as follows:
ADR

- alternated designated representative
Btu

— British thermal unit***E.O. 12866 Review

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CO 2 — carbon dioxide
DR

- designated representative
EGU

- electric generating unit
EM&V

- evaluation, measurement, and verification
GCV

- gross calorific value
GJ

- giga joule
H 2 O

— water hr

— hour kg

- kilogram kW

— kilowatt electrical kWh

— kilowatt hour lb

— pound
M&V

– measurement and verification
mmBtu

—million Btu
MWe

— megawatt electrical MWh

— megawatt hour
O 2 — oxygen
yr — year 5. Add subpart NNN to read as follows: **Subpart NNN: Greenhouse Gas Emis sions Rate**  **- based Model Trading**  **Rule for Electric Utility Generating Units that Commenced Construction on or Before January 8, 2014** 
Sec. **Introduction*****E.O. 12866 Review

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62.16405 What is the purpose of this subpart? **Applicability of this Subpart** 62.16410 Am I subject to this subpart? 62.16415 What are the requirements for retired affected EGUs? **General Requirements** 62.16420 What emission standards, requirements must I comply with? 62.16425 How should I compute time under the CO 2 Rate

- based Trading Pro gram? 62.16430 What are the administrative appeal procedures? **Emission Rate Credit Issuance, Adjustment and Revocation** 62.16434 What affected EGUs qualify for generation of ERCs? 62.16435 What eligible resources qualify for generation of ERCs in additio n to affected EGUs? 62.16440 What is the process for revocation of qualification status of an eligible resource? 62.16445 What is the process for the issuance of ERCs? 62.16450 What is the process for error adjustments or misstatement, and suspension of ERC issuance? **Evaluation Measurement and Verification Plans, Monitoring and Verification Reports, and Verification**  62.16455 What are the requirements for evaluation measurement and verification plans for eligible resources? 62.16460 What are the requirements for monitoring and verification reports for eligible resources? 62.16465 What are the requirements for verification reports? 62.16470 What is the accreditation procedure for independent verifiers? 62.16475 What are the procedures of accredite d independent verifiers must follow to avoid conflict of interest? 62.16480 What is the process for the revocation of accreditation status for an independent verifier? **Designated Representatives** 62.16485 How are designated representatives and alternate d esignated representatives authorized? What role do authorized designated representatives and alternate***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 312 of 447 designated representatives play? 62.16490 What responsibilities do designated representatives and alternate designated representatives hold? 62.16495 W hat are the processes for changing designated representatives, alternate designated representatives, owners and operators, and affected EGUs? 62.16500 What must be included in a certificate of representation? 62.16505 What is the Administrator’s role in objections concerning designated representatives and alternate designated representatives? 62.16510 What process must designated representatives and alternate designated representatives follow to delegate their authority? **Monitoring, Recordkeeping, Repor ting**  62. 16515 How are compliance accounts and general accounts established? 62.16525 How must transfers of ERCs be submitted? 62.16530 When will ERC transfers be recorded? 62.16535 How will deductions for compliance with a CO 2 emission standard occur? 62.16540 What monitoring requirements must I comply with? 62.16545 May I bank CO 2 ERCs for future use or transfer? 62.16550 How does the Administrator process account errors? 62.16555 What are my reporting, notification and submission requirements? 62.16 560 What are my recordkeeping requirements? 62.16565 What actions may the Administrator take on submissions? **Definitions** 62.16570 What definitions apply to this subpart? 62.16575 What measurements, abbreviations, and acronyms apply to this subpart?

Ta ble 1 to Subpart NNN of Part 62

— CO 2 Emission Standards (Pounds of CO 2 Per Net MWh) Table 2 to Subpart NNN of Part 62

— Incremental Generation Factor for Emission Rate Credits***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 313 of 447 **Introduction §62.16405 What is the purpose of this subpart?**  This subpart sets forth the general, designated representative, crediting, and monitoring provisions for the Clean Power Plan (CPP) CO 2 Rate

- based Trading Program, under section 111 of the Clean Air Act and subpart UUUU of Part 60 of this chapter, as a means of meeting emission guidelines limiting greenhouse gas emissions from an affected steam generating unit, integrated gasification combined cycle (IGCC), or stationary combustion turbine. **Applicability of this Subpart §62.16410 Am I subject to this subpart?**  (a) You are subject to this subpart if you are an affected EGU located within a state that has incorporated by reference this subpart as a state plan, or portion of a state plan, that has been approved by the Administrator and is effective under subpart UU UU of part 60 of this chapter, or if this subpart is promulgated and effective as a federal plan in your state under part 62 of this chapter. (b) An affected EGU is any steam generating unit, Integrated Gasification Combined Cycle (IGCC), or stationary

co mbustion turbine that meets the applicability requirements in §60.5840(b) and §60.5845 of this chapter. **§62.16415 What are the requirements for retired affected EGUs?*****E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 314 of 447 (a)(1) Any affected EGU that is permanently retired pursuant to an enforceable title V o perating permit condition shall be exempt from §62.16420(c)(1)[CO 2 Emissions Requirements], §62.16535 [Compliance Requirements], §62.16540 [Monitoring], §62.16555 [Reporting], and §62.16560 [Recordkeeping]. (2) The exemption under paragraph (a)(1) of this section shall become effective on the first day of the compliance period immediately following the compliance period in which the retirement took effect. Within 30 days of the affected EGU's permanent retirement, the designated representative must submit a statement to the Administrator. The statement shall state, in a format prescribed by the Administrator, that the affected EGU was permanently retired on a specified date and will comply with the requirements of paragraph (b) of this section. (b) Special provisions. (1) An affected EGU exempt under paragraph (a) of this section shall not emit any CO 2 , starting on the date that the exemption takes effect. (2) For a period of five years from the date the records are created, the owners and operators of an af fected EGU exempt under paragraph (a) of this section shall retain, at the affected EGU, records demonstrating that the affected EGU is permanently retired. The five

- year period for keeping records may be extended for cause, at any time before the end of t he period, in writing by the Administrator. The owners and***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 315 of 447 operators bear the burden of proof that the affected EGU is permanently retired. (3) The owners and operators and, to the extent applicable, the designated representative of an affected EGU exempt under paragraph (a) of this section shall comply with the requirements of the CO 2 Rate

- based 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. **General Requirements §62.16420**  **What requirements must I comply with?** (a) Designated representative requirements. The owners and operators shall comply with the requirement to have a designated representative, and may have an alternate desig nated representative, in accordance with §62.16485 through §62.16495. (b) Emissions monitoring, reporting, and recordkeeping requirements. (1) The owners and operators, and the designated representative, of affected EGU shall comply with the monitoring, re porting, and recordkeeping requirements of §62.16540, §62.16555, and §62.16560. (2) The emissions data determined in accordance with §62.16540 shall be used to calculate CO 2 emissions under §62.16208(a)(2) and (b) and to determine compliance with the CO 2 emission standard under paragraph (c) of this section, provided***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 316 of 447 that, for each monitoring location from which emissions are reported, the emissions rate used in determining compliance shall be the CO 2 emission rate at the monitoring location determined in accordance with paragraph (c) of this section. (c) CO 2 emission standard requirements
. (1) CO 2 emission standards. Each designated representative for each affected EGU must demonstrate compliance with its emission standard listed in Table 1 of this subpar t, as applicable, by calculating a CO 2 emission rate by factoring stack emissions and any emission rate credits (ERCs) into the following equation:
CCCC 2 eeeeeeeeeeeeee rrrr = ∑ MM CCCC 2 ∑ MMMM h oooo + ∑ MMMM h
Where:
CO 2 emission rate = An affected EGUs calculated CO 2 emission rate that will be used to determine compliance with the applicable CO 2 emission standard.
M CO2 = Measured CO 2 mass in units of pounds (lbs) summed over the compliance period for an affected EGU.
MW h op = Total net energy output over the compliance period for an affected EGU in units of MWh. MWh ERC = ERC replacement generation for an affected EGU in units of MWh (ERCs are denominated in whole integers as specified in paragraph (2) of this section ).***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 31 7 of 447 (2) An ERC qualifies for the compliance demonstration specified in paragraph (c)(1) of this section if it: (i) has a unique serial number; (ii) represents one MWh of actual energy generated or saved with zero associated carbon dioxide emissions; (iii) was issued to an eligible resource that meets the requirements of §62.16435 or to an affected EGU that meets the requirements of §62.16434, by the Administrator through an ERC tracking system or the Allowance Tracking and Compliance System; and (iv) was surre ndered and retired only once for purposes of compliance with this regulation by the Administrator through an ERC tracking system or the Allowance Tracking and Compliance System. (3) An ERC does not qualify for the compliance demonstration specified in paragraph (c)(1) of this section if it does not meet the requirements of paragraph (c)(2) of this section or if any state has used that same ERC for purposes of demonstrating achievement of its state measures. (4) As of the ERC transfer deadline for a comp liance period, the owners and operators of each affected EGU must hold, in the affected EGU's compliance account, sufficient ERCs to demonstrate compliance with its applicable emission standard listed in Table 1 of this subpart pursuant to the requirement of***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 318 of 447 paragraph (c)(1) of this section. (5) If an affected EGU exceeds its emission standard during a compliance period, then: (i) The owners and operators of the affected EGU shall hold ERCs required for deduction under §62.16535(d); and (ii) The owners and operators of the affected EGU are subject to federal enforcement pursuant to sections 113(a)

– (h), and section 304, of the CAA, and the United States, states, and other persons have the ability to enforce against violations (including if an affected EGU d oes not meet its emission standard based on its emissions, or use of ERCs that meet the compliance demonstration in §62.16420 (c)(2)) and secure appropriate corrective actions, and 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 day of such compliance period shall constitute a separate violation of this subpart and the Clean Air Act. (d) Compliance periods. (1) An affected EGU shall be subject to the requirements under paragraph (c)(1) of this section for the compliance period starting on January 1, 2022 and for each compliance period thereafter. (2) Vintage of ERCs held for compliance. An ERC held for compliance with the requirements under paragraph (c)(1) of this section for a compliance period must be an ERC that was issued***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 319 of 447 for a year in such compliance period or for a year in a prior compliance period. (3) Allowance Tracking and Compliance System (ATCS). Each ERC shall be held in, deducted from, transferred into , out of, or between ATCS accounts in accordance with this subpart. (4) Limited authorization. (i) An ERC shall only be used in accordance with the CO 2 Rate

- based Trading Program; and (ii) Notwithstanding any other provision of this subpart, the Administra tor 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. (5) Property right. An ERC does not constitute a property right. (e) Title V permit requirements. (1) Unless otherwise specified in this paragraph, all requirements of this subpart shall be applicable requirements that must be included in an affected EGU’s title V permit. (2) The applicable requirements of this subpart, as well as other terms or conditions necessary to ensure compliance with the applicable requirements, 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 such changes do not conflict with any existing***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 320 of 447 terms of the permit. This paragraph explicitly provides that the addition of, or change to, an affected EGU's description as described in the pr ior 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. (3) No title V permit revision shall be required for any crediting, holding, deduction, or transfer of ERCs in acc ordance with this subpart, provided that the requirements applicable to such creditings, holdings, deductions, or transfers of ERCs are already incorporated in such permit
. (f) Liability. Any provision of the CO 2 Rate

- based Trading Program that applies to an affected EGU or the designated representative of an affected EGU shall also apply to the owners and operators of such affected EGU. (g) Effect on other authorities. No provision of the CO 2 Rate

- based Trading Program or exemption under §62.16415 shall be construed as exempting or excluding the owners and operators, and the designated representative, of an affected EGU from compliance with any other provision of the applicable, approved
State implementation plan, a federally enforceable permit, or the Clean Air Act. **§62.16425 How should I compute time under the CO 2**  **Rate -**  **based Trading Program?**  (a) Unless otherwise stated, any time period scheduled,***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 321 of 447 under the CO 2 Rate

- Based 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 CO 2 Rate

- Based Trading Program, to begin before the occurrence of an act or event shall be compute d 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 CO 2 Rate

- Based Trading Program, is not a business day, the time period shall be extended to the next business day. **§62.16430 What are the administrative appeal procedures?** The administrative appeal procedures for decisions of the Administrator under the CO 2 Rate

- based Trading Program are set forth in part 78 of this chapter. **Emission Rate Credit Issuance, Adjustment a nd Revocation**  **§62.16434 What affected EGUs qualify for generation of ERCs** ? (a) ERCs may only be issued to affected EGUs under the conditions listed in paragraph (b). (b) EGUs that emit below their applicable emission standard. The amount of ERCs generated must be calculated using the following equation. (1) To calculate the number of ERCs:***E.O. 12866 Review

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ERCs = ( EGU emission standard

− EGU emission rate ) EGU emission standard ∗ EGU generation
Where: EGU emission standard = The emission standard the affected
EGU must comply with during the applicable compliance period according to § 62.16420 (lb/MWh) EGU emission rate = The affected EGU’s measured CO 2 emissions rate measured in accordance with
§ 62.16540 (lb/MWh) EGU generation = the total net energy output generation of the affected EGU during the applicable compliance period measured in accordance with 62.16540 (MWh) (c) Stationary combustion turbines that meet the definition of an affected EGU may generate net energy output MWh gas shift ERCs (GS

- ERCs) according to th e following equations for all hours of operation during a given compliance period: (1) To calculate the number of GS

- ERCs: GS

- ERCs= EGU Generation * Incremental Generation Factor*GS

- ERC Emission Factor Where: EGU generation = the total net energy output generation of the affected EGU during the applicable compliance period measured in accordance with 62.16540 (MWh) Incremental Generation Factor = See Table 2 for applicable factor for the ERC generation period***E.O. 12866 Review

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GS

- ERC Emission Factor Rate = value calculated using equation (c)(2) of this section (2) To calculate the GS

- ERC Emission factor for your specific affected EGU you must use the following equation:
GS

- ERC Emission Factor = 1

− EGU emission rate Steam Turbine Emission Standard Where: EGU emission rate = the affected EGU’s measured CO 2 emissions rate measured in accordance with
§ 62.16540 (lb/MWh) Steam turbine emission standard = the steam turbine emission standard for the corresponding compliance period as found in Table 1 (3) Notwithstanding any other provision of this subpart,
GS

- ERCs must not be used for compliance by an affected EGU that is a stationary combustion turbine. Stationary combustion turbines may use other ERCs in their compliance demonstration. **§62.16435 What eligible resources qualify fo r generation of ERCs**  **in addition to affected EGUs?** (a) ERCs may only be issued to an eligible resource that meet each of the requirements in paragraphs (a)(1) through (4) of this section. (1) Resources qualifying for eligibility only include

resources which increased new installed electrical generation***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 324 of 447 nameplate capacity, or new electrical savings measures installed or implemented after January 1, 2013. If a resource had a nameplate capacity uprate, ERCs may be issued only for the difference in generati on between the uprated nameplate capacity and its nameplate capacity prior to the uprate. ERCs must not be issued for generation for an uprate that followed a derate that occurred on after January 1, 2013. A resource that is relicensed or receives a licens e extension is considered existing capacity and is not an eligible resources, unless it receives a capacity uprate as a result of the relicensing process that is reflected in its relicensed permit. In such a case, only difference in nameplate capacity betw een its relicensed permit and its prior permit is eligible to be issued ERCs. (2) The resource must be connected to, and delivers energy to or saves electricity, on the electric grid in the contiguous United States. (3) The resource is located in a state whose affected EGUs are subject to rate

- based emission standards pursuant to this regulation, unless the resource is located in a state with mass

based emission standards and the resource can demonstrate (e.g., through a power purchase agreement or contrac t for delivery) transmission of its generation into a state whose affected EGUs are subject to rate

- based emission standards pursuant to this regulation.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 325 of 447 (4) The resource falls into one of the following categories of resources: (i) Renewable electric gen erating technologies using one of the following renewable energy resources: wind, solar, geothermal, hydro, wave, tidal; (ii) Qualifying biomass; (iii) Waste

- to

- energy, (iv) Nuclear energy, or (v) A non

- affected combined heat and power unit, including

was te heat power (vi) A demand

- side energy efficiency or demand

- side management measure that saves electricity and is calculated on the basis of quantified ex poste savings, not “projected” or “claimed” savings. Note to paragraph (a). All categories of resources other than on - shore utility scale wind, utility scale solar photovoltaics (pv), concentrated solar power, geothermal power, nuclear energy, or utility scale hydropower , and all provisions of this subpart r elating to such resources, are not available or applicable in states where this subpart has been promulgated as a federal plan pursuant to section 111(d)(2) of the Act. (b) Any resource that does not meet the requirements of this subpart cannot generate E RCs for use in the compliance demonstration required under §62.16420.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 326 of 447 (c) ERCs may not be issued to any of the following: (1) New, modified, or reconstructed EGUs that are subject to subpart TTTT of this Part, except CHP units that meet the requirements of a CHP unit under paragraph (a); (2) EGUs that do not meet the applicability requirements of §62.16410, except CHP units that meet the requirements of a CHP unit under paragraph (a); (3) Measures that reduce CO 2 emissions outside the electric power sector, including GHG offset projects representing emission reductions that occur in the forestry and agriculture sectors, direct air capture, and crediting of CO 2 emission reductions that occur in the transportation sector as a result of vehicle electrification; and (4) Any measure not approved by the EPA to generate ERCs in connection with a specific state plan. **§ 62.16440 Revocation of qualification status of an eligible** 

**resource** . (a) If an eligible resource is found to not meet the requirements of §62.16435 in the Rate

- based trading program, the Administrator will revoke the eligibility of the eligible resource to be issued ERCs. In addition, the provisions of
§ 62.16450(d) may apply. (b) Any instance of intentional misrepresentation in an eligibility application or monitoring and verification (M&V)***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 327 of 447 report may be cause for revocation of the qualification status of an eligible resource. (c) Repeated instances of error or misstatement of MWh of electricity generation or savings in submitted M&V reports, and any othe r requirements may be cause for the Administrator to revoke the eligibility of an eligible resource to be issued
ERCs. (d) In the event of an intentional misrepresentation, or repeated instances of error or misstatement, in program submissions, by the auth orized account representative of the eligible resource, the Administrator may prohibit the eligible resource from any further eligibility to be issued ERCs. In addition, the provisions of § 62.16450 (a) through (d) may apply. **§62.16445 What is the**  **process f or the issuance of ERCs**  ? The process and requirements for issuance of ERCs for affected EGUs and Eligible resources are set forth in paragraphs (a) through (f). (a) Eligibility application . To receive ERCs, an authorized account representative of an el igible resource must submit an eligibility application to the Administrator that demonstrates that the requirements of §62.16434 (for an affected EGU) or §62.16435 (for an eligible resource) are met, and, in the case of an eligible resource only, demonstra tes that the following requirements are met:***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 328 of 447 (1) Identification of the authorized account representative of the ERC resource, including the authorized account representative’s name, address, e

- mail address, telephone number, and ERC tracking system accoun t number. (2) Identification of the eligible resource(s), including: (i) For an electric generating resource, the physical location of the electric generating resource; contact information for the owner or operator of the electric generating resource, if different from the designated representative or authorized account representative; generator prime mover and technology type; generator nameplate capacity; generator category (e.g., wholesale generator, wholesale generator also serving onsite customer loa d, customer

- sited distributed generator); facility and generating unit IDs (EIA ORIS Code, Facility Registration System (FRS) Code, if applicable); for generators, the control area, balancing authority, ISO, or RTO in which the generator is located; (A) For an electric generating resource with a nameplate capacity of 1 MW or more, a copy of the most recent filing of a copy of the generating facility’s U.S. Energy Information Agency’s Annual Electric Generator Report Form EIA

- 860. (B) For an electric gen erating resource with a nameplate capacity of less than 1 MW, the information that would be contained in U.S. Energy Information Agency’s Annual Electric***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 329 of 447 Generator Report Form EIA

- 860, if that electric generating facility had nameplate capacity of 1 MW or more. (ii) For an energy

- saving resource that is project

- based, a detailed description of the energy efficiency or electricity savings project, including: location and specifications of the building(s), facility(ies), or installations where energy

- saving

measure s were implemented or will be implemented; owner and operator of the building(s), facility(ies), or installations where the energy

- saving measures are implemented or will be implemented; the parties implementing the energy

- saving project, including lead co ntractor(s), subcontractors, and consulting firms (if different from the authorized account representative);
energy - saving measures installed and/or energy

- savings practices implemented (or to be installed/implemented); specifications of equipment and mate rials installed, or to be installed, as part of the energy

- saving project; project plans and technical schematics, as applicable; (iii) For an energy

- savings resource that involves an EE requirement or program, a description of the energy efficiency or electricity savings program, including: overall approach or “logic” to the requirement or program, including applicable strategies an d activities, along with key assumptions regarding how such strategies and activities will achieve quantifiable reductions in electricity consumption; location and geographic***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 330 of 447 distribution of the targeted building(s), facility(ies), or installations where e nergy - saving requirements or programs were implemented or will be implemented; electricity consuming system(s), end

- use(s), building or facility type(s), or installations where the energy

- saving requirements or programs are implemented or will be implement ed; the parties implementing the energy

- saving requirement or program, including lead contractor(s), subcontractor(s), and consulting firms (if different from the authorized account representative); specifications of energy

- saving equipment and/or energy

- s avings practices implemented (or to be installed/implemented) under the requirement or program; the delivery mechanisms of the requirement or program, which may include financial incentives or equipment rebates, dissemination of actionable information to

e lectricity customers, on

- site audits paired with technical recommendations; (iv) For other electricity

- saving resources (e.g., DSM measures, T&D efficiency improvements and other T&D measures such as CVR), a description of the resource, including: overal l approach or “logic” to the electricity

- saving resource, including applicable strategies and activities, along with key assumptions regarding how such strategies and activities will achieve quantifiable reductions in electricity consumption; location and geographic distribution of the targeted***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 331 of 447 building(s), facility(ies), or electricity transmitting and distributing systems, as applicable, where electricity

- saving resources were implemented or will be implemented; electricity consuming, transmitting, or dis tributing system(s), building or facility type(s), or end

- use(s) where the electricity

- saving resource are implemented or will be implemented; the parties implementing the electricity

- saving resource, including lead contractor(s), subcontractor(s), and con sulting firms (if different from the authorized account representative); specifications of installed equipment and/or implemented practices (or to be installed/implemented); the delivery mechanisms used to implement and propagate the electricity

saving res ource, as applicable; (v) For eligible resources with distributed locations, such as measures at multiple residential, commercial, or industrial buildings, at a minimum, aggregated information about the location of measures that constitute an eligible reso urce, provided that the accredited independent verifier and the Administrator have the ability to access information specifying the location of each discrete measure that constitutes an eligible resource. (3) Demonstration that the eligible resource meets all applicable eligibility requirements in §62.1435. (4) A certification that the eligibility application has***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 332 of 447 only been submitted to the Administrator or pursuant to an EPA

approved multi

- state approach where states are providing for joint issuance of E RCs pursuant to the authority in their individual state plans. (5) An evaluation measurement and verification (EM&V) plan. (6) A verification report from an accredited independent verifier who meets the requirements of §62.16470 and §62.16475. (8) An authorization that provides for the following: the Administrator may inspect (including a physical inspection of the eligible resource and its meter) and/or audit the eligible resource at any time and verify that the eligible resource and the EM&V plan hav e been implemented as described in the eligibility application. (7) The following statement, signed by the designated representative of the eligible resource: I certify under penalty of law that I have personally examined, and am familiar with, the state ments and information submitted in this document and all its attachments. Based on my personal knowledge and/or 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 333 of 447 information, including the possibility of fine or imprisonmen t. (8) Any other information required by the Administrator. (b) Registration of eligible resources . The Administrator must review the eligibility application to determine whether the affected EGU or eligible resource meets the requirements of §62.16445(a) , and if it determines that the requirements are met, approve the eligibility application and register the affected EGU or eligible resource in an ERC tracking system that meets the requirements of §62.16515. Once so registered, the affected EGU or eligibl e resource is eligible to be issued ERCs, provided all other applicable requirements continue to be met. (c) M&V reports . For an eligible resource, the designated representative must submit to the Administrator an M&V report prior to issuance of ERCs by the Administrator. (d) Verification reports . For an eligible resource, the authorized account representative must submit a verification report from an accredited independent verifier that meets the requirements of §62.16470 and §62.16475 as part of each eligibility application and M&V report. While considered a part of the eligibility application and M&V report, the verification report must be submitted separately by the accredited independent verifier to the Administrator. (e) Issuance of ERCs . ERCs ma y only be issued by the Administrator based on actual electricity generation or savings***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 334 of 447 documented in an M&V report that meets the requirements of §62.16460 and a verification report that meets the requirements of §62.16465. Only one ERC will be issued for each verified MWh. (f) Tracking system . ERCs may only be issued through an ERC tracking system that meets the requirements of §62.16515. **§ 62.16450 Adjustments for error or misstatement, suspension of**  **ERC issuance.** (a) In the event of error or misstatement of quantified MWh of electricity generation or savings in a previous M&V report for which ERCs have been issued, the Administrator may adjust the number of ERCs issued in a subsequent reporting period to address the error or misstatement, by s ubtracting a number of MWh from the quantified and verified MWh in the M&V report for the subsequent reporting period. In the event that an error or inadvertent misstatement occurs in a final M&V report for an eligible resource, for which ERCs have been is sued, the provisions of paragraph (b) will apply. (b) In the event of error or misstatement of quantified MWh of electricity generation or savings in the final M&V report for an eligible resource, for which ERCs have been issued, the Administrator will rev oke ERCs from the general account held by the authorized account representative of the eligible resource, in an amount necessary to correct the error or misstatement. In the event that the general account of the eligible resource***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 335 of 447 holds an insufficient numb er of ERCs to correct the error or misstatement, the authorized account representative shall submit to the Administrator within 30 days a number of ERCs necessary to correct the error or misstatement. Failure to meet this requirement will result in prohibi tion of the authorized account representative for the eligible resource from further participation in the program, unless reauthorized at the discretion of the Administrator. (c) The Administrator may freeze the general account held by a authorized account representative of an eligible resource at any time, for cause, if the Administrator determines ERCs have been improperly issued, based on a misrepresentation or misstatement in an eligibility application or M&V report. The Administrator may also freeze th e general account of a authorized account representative of an eligible resource pending investigation of potential misrepresentation, error, or misstatement in an eligibility application of an eligible resource, or in an M&V report for which ERCs have bee n issued. Freezing a general account will prevent transfer of ERCs out of the account. (d) If ERCs are issued for an eligible resource that is found to be ineligible, the Administrator may take the actions in paragraphs (i) through (iii). (i) Freeze the ge neral account of the authorized account***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 336 of 447 representative Eligible resource, preventing any transfers of ERCs out of the account. (ii) Revoke ERCs held in the general account of the authorized account representative eligible resource, in a number equal to the number of ERCs issued for the ineligible eligible

resource. (iii) In the event that the general account of the ERC resource holds a number of ERCs less than the number of ERCs issued for the ineligible eligible resource, the delegated representative of an eligible resource shall submit to the Administrator within 30 days a number of ERCs necessary to fully account for all ERCs issued for the ineligible eligible resource. Failure to meet this requirement will result in prohibition of the eligible resource f rom further participation in the program, unless reauthorized at the discretion of the Administrator. (e) The Administrator may temporarily or permanently suspend issuance of ERCs for an eligible resource, for the following reasons in paragraphs (i) through (iii) (i) Pending investigation of potential misrepresentation, error, or misstatement in an M&V report, for which ERCs have been issued, or the eligibility status of an eligible resource. (ii) In the case of repeated error or misstatements in subm itted M&V reports.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 337 of 447 (iii) In the case of an intentional misrepresentation in a submitted M&V report. **Evaluation Measurement and Verification Plans, Monitoring and Verification Reports, and Verification**  **§ 62.16455 What are the requirements for evaluation**  **measurement and verification plans for eligible resources?**  (a) Any EM&V plan submitted in support of the issuance of an ERC pursuant to this rule must meet the requirements of this section. (b) General EM&V plan criteria. Each EM&V plan must identify the e ligible resource and its approved eligibility application. (c) Specific EM&V plan criteria. Each EM&V plan must provide the manner in which the electricity generated or saved by the eligible resource will be quantified, monitored and verified, and the man ner of quantification, monitoring and verification must meet the criteria listed in paragraphs (c)(1) through (7) of this section, as applicable to the specific Eligible resource. (1) For a nuclear energy resource or a renewable energy resource with a name plate capacity of 10 kW or more and for a renewable energy resource with a nameplate capacity of less than 10 kW for which metered data are available, each EM&V plan must specify that the requirements in paragraphs (c)(1)(i) through***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 338 of 447 (v) be met. (i) The gen eration data is physically measured on a continuous basis using a revenue

- quality meter, which shall mean a meter used by a control area operator for financial settlements, or a meter that meets the American National Standards Institute No. C12.20. , Code f or Electricity Metering, metering accuracy standards, or a meter that meets an alternative equivalent standard that has been approved in advance of its use to measure generation pursuant to this regulation by the EPA. (ii) The generating data is measured a t the generator’s bus bar, or, for a renewable energy resource with a nameplate capacity of less than 10 kW that is interconnected behind an individual business or household meter, the generating data was measured at the AC output of the inverter and adjus ted to reflect the only energy delivered into either the transmission or distribution grid at the generator bus bar and not and any energy used on

- site at the generator. (iii) The generation data from only one eligible resource generating unit may be asso ciated with each meter, and generation data may not be aggregated, unless all the following provisions are met: (A) All of the generating units have the same essential generation characteristics,***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 339 of 447 (B) All of the generating units are located in the same
sta te, (C) The nameplate capacity of the individual units being aggregated is each less than 150 kW, and units collectively do not exceed a total nameplate capacity of 1 MW when aggregated, or alternative requirements approved by the EPA in connection with th e specific state plan pursuant to which that EM&V plan or M&V report is submitted, and (D) The generation data are measured by the same type of meter that is subject to the same maintenance and quality assurance procedures. (iv) The generation data is c ollected electronically and telemetered from the generator to its control area operator and verified through a control area energy accounting or settlement process which occurs at least monthly, unless the generation unit does not go through a control area operator, in which case the generation data must be collected by manual meter readings conducted by an independent verifier that is either not affiliated with the owner or operator of the qualifying renewable energy generating resource or is precluded pur suant to the relevant state plan from the ability to transfer or retire ERCs issued to that qualifying renewable energy generating resource or, if the generating unit is less than 10 kw and does not generate enough electricity to enable monthly reporting, the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 340 of 447 data may be self

- reported and reported no less than annually. (v) The generation data serves a load that otherwise would have been served by the grid if not for the generator. Specifically: (A) ERCs shall not be issued for energy generation used to supply the ancillary equipment used to operate a generating station or substation (“station service”) or parasitic load on the generator’s side of the point of interconnection. (B) For generators interconnected to transmission systems and with on

- site loads other than station service drawing generation before the metering point, ERCs may be issued for on

site load, if the owner or operator of the eligible resource can demonstrate that the metering used is capable of distinguishing between on

- site load and station service. (vi) Any other requirements approved by the EPA in connection with the specific state plan pursuant to which that EM&V plan is submitted. (2) For a renewable energy resource with a nameplate capacity of less than 10 kW and that does not have a meter, each EM&V plan must require that the following requirements in paragraphs (c)(2)(i) though (v) are met. (i) Metered data are unavailable. (ii) At least 1 MW of net energy output is generated to the distribution or transmission system over a continuous 365 day***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 341 of 447 period. (iii) The generation data may not be aggregated, unless the following provisions are met: (A) All of the generating units have the same essential generation characterist ics; (B) All of the generating units are located in the same
state; (C) The nameplate capacity of the individual units being aggregated is each less than 150 kW, and units collectively do not exceed a total nameplate capacity of 1 MW when aggregated,

or alternative requirements approved by the EPA in connection with the specific state plan pursuant to which that EM&V plan or M&V report is submitted; and (D) The generation data are measured by the same generation estimating software or algorithms. (iv) T he generation data are measured on at least a monthly basis using generation estimating software or algorithms that are based on an on

- site inspection prior to interconnection and a resource study (wind, shading, solar irradiance, depending on the resource ), or engineering information that takes into account the capacity, age, and type of qualifying energy generating resource, and all input parameters and assumptions must be clearly delineated, or if the generating unit does not generate enough electricity to enable monthly reporting, the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 342 of 447 data may be reported no less than annually. (iv) The generation data are self

- reported to distribution utility through an electronic internet

- based portal with software that reports total and hourly generation. (v) The gene ration data serves a load that otherwise would have been served by the grid if not for the generator. The ERC is only based on generation transferred from the eligible resource to the transmission or distribution grid, and is not based on the generation us ed on

- site by the customer. (vi) Any other requirements approved by the EPA in connection with the specific state plan pursuant to which that EM&V plan is submitted. (3) For qualifying biomass feedstocks used, in addition to the requirements of paragraphs (c)(1) or (2) of this section, whichever section is applicable, each EM&V plan must demonstrate that the requirements approved by the Administrator for that biomass feedstock and its associated biogenic CO 2 in connection with that state plan have been met
. (4) For a waste to energy resource, in addition to the requirements of paragraphs (c)(1) or (2) of this section, as applicable, and paragraph (c)(3) of this section, each EM&V plan must specify: (i) the total net energy generation from the resource in
M Wh;***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 343 of 447 (ii) the method for determining the specific portion of the total net energy output from the resource that is related to the biogenic portion of the waste; and (iii) the net energy output is measured with the relevant method approved by the EPA in conn ection with the specific state plan pursuant to which that EM&V plan is submitted demonstrate that the requirements approved by the EPA in connection with that state plan have been met. (5) For a combined heat and power unit, in addition to the requiremen ts of paragraphs (c)(1) or (2) of this section, as applicable, and paragraph (c)(3) of this section, each EM&V plan must meet one of the requirements paragraphs (c)(5)(i) through (iii), as applicable, and any other requirements approved by the EPA in conne ction with the specific state plan pursuant. (i) If the combined heat and power unit has an electric generating capacity greater than 25 MW, the EM&V plan must meet the requirements that apply to an affected EGU under §62.16540 of this subpart. (ii) If the combined heat and power unit has an electric generating capacity less than or equal to 25 MW and it uses only natural gas and/or distillate fuel oil, the EM&V plan must meet the low mass emission unit CO 2 emission monitoring and reporting methodology i n 40 CFR 75. (6) For demand

- side electricity savings that avoid a***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 344 of 447 transmission and distribution loss, each EM&V plan must measure the transmission and distribution loss based on the lesser of 6 percent of the facility

- or premises

- level electricity saving s measured at the electricity customer’s meter, or the statewide annual average transmission and distribution loss rate (expressed as a percentage) from the most recent year that is published in the US EIA State Electricity Profile. No other transmission a nd distribution loss factors may be used in calculating the electricity savings. (7) Each EM&V plan for an EE program or project must specify how each of the following requirements will be met in quantifying the electricity savings from that EE program or project: (i) All electricity savings must be quantified on an ex

post basis, which means after the electricity savings have occurred, or on a real

- time basis, which means simultaneous to the electricity savings. Electricity savings must not be quantified o n an ex - ante basis, which means based on projections of electricity savings that have not yet occurred but are anticipated to occur. (ii) All electricity savings must be quantified and verified based on methods and procedures detailed in an industry best p ractice EM&V protocol or guideline. Each EM&V plan must include a demonstration of how the best

- practice protocol or***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 345 of 447 guideline was selected and will be applied to the specific EE APMP covered in the E&V plan, and an explanation of why that particular proto col or guideline was selected. Protocols and guidelines are considered to be best practice if they: (A) Have gone through a rigorous peer review process, or (B) Are widely accepted as best practices for use within the energy efficiency industry Examples of such protocols and guidelines are provided in the EM&V guidance issued by the Administrator. (iii) All electricity savings must be quantified as the difference between the observed electricity use and a common practice baseline (CPB). The EM&V plan mus t specify the reason the specific common practice baseline was selected for that EE program or project, which must include an analysis of the appropriateness of that CPB for the EE program or project covered in the EM&V plan. CPBs must be based on: (A) Characteristics of the EE program or project, (B) The delivery mechanism used to implement the EE program or project (e.g., installed as part of a utility program direct install program versus a point

- of

- sale rebate), (C) Local consumer and market cha racteristics, (D) Applicable building energy codes and standards and average compliance rates, and (E) The method applied: project

- based measurement and***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 346 of 447 verification (PB

- MV), comparison group approaches, or deemed savings. Examples of CPB definitions for s pecific EE programs and projects are provided in the EM&V guidance issued by the Administrator. (iv) All electricity savings must be quantified by applying one or more of the following methods: project

- based measurement and verification (PB

- MV), comparis on group approaches, or deemed savings. (A) If a comparison group approach is used, the EM&V plan must quantify electricity savings by taking the difference between a comparison group’s electricity use and the electricity use of EE program participants. Comparison group approaches may include randomized control trials and quasi

- experimental methods, as described in industry best

- practice protocols and guidelines. (B) If deemed savings are used, the EM&V plan must specify that the deemed savings values wi ll only be used for the specific EE measure for which they were derived. The EM&V plan must also specify the name and Web address of the technical reference manual (TRM) in which all “deemed” electricity savings will be documented. Prior to use in an EM&V plan, all TRMs must undergo a review process in which a broad range of the public, stakeholders, and experts is provided with adequate advance***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 347 of 447 notification (via the internet and other social media), has at least three months to respond and provide comment, and in which all such comments and associated responses are made publicly available. All TRMs must also be publicly accessible over the full period of time in which they are being used in conjunction with an EM&V plan for the purpose of quantifying saving s, and must be subsequently updated in the same manner at least every three years. The TRM must indicate, for each subject EE technology or measure, the associated electricity savings value, the conditions under which the value can be applied (including th e climate zone, building type, manner of implementation, applicable end uses, operating conditions, and effective useful life), and the manner in which the electricity savings value was quantified, which must include applicable engineering algorithms, sour ce documentation, specific assumptions, and other relevant data to support the quantification of savings from the subject EE equipment or measure. (v) All EE programs and projects must be quantified at appropriate time intervals (in years) for ensuring tha t MWh savings are accurately and reliably quantified, and such time intervals must be specified in the EM&V plan. Factors that must be taken into consideration when determining the appropriate time interval include the characteristics of the specific EE
pr ogram or project, expected variability in electricity savings***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 348 of 447 (where greater variability necessitates more frequent quantification), the expected scale and magnitude of the electricity savings (where greater quantities of savings necessitate more frequent quantification), and the experience of EE providers implementing and of EE evaluators quantifying a particular program or project type (where less experience

– for example, with new and innovative program types

– necessitates more frequent quantification). The time intervals must end no sooner than the last day of the effective useful life of the EE program or project, and must last no longer than: (A) Every four year intervals for building energy codes and product standards. (B) Every one, two or three years for public or consumer

funded EE program or project, as relevant for the type of program or project and factors listed in § 62.16455(7)( v) above. (C) Annually for commercial and industrial projects, unless the EE provider c an provide a reasonable justification in the EM&V plan for why this time interval is not feasible and can explain how the accuracy and reliability of savings values will not be lessened. (vi) The following factors and their impact on the quantification of electricity savings from the specific EE program or project that is the subject of the specific EM&V plan must be addressed in the EM&V plan:***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 349 of 447 (A) The effects of any changes in independent variables that will affect the reported electricity savings must be described ( i.e., factors that are not directly related to the EE measure, such as weather, occupancy, and/or production levels). (B) The effective useful life or duration of time the EE measure is anticipated to remain in place and operable with the pote ntial to save electricity, based on an evaluation of the EE measure, an industry best

- practice persistence study, deemed estimates of effective useful life, or a combination of all of these. (1) If deemed estimates of effective useful life are used, the da te by which the EE measure will have stopped saving electricity is specified. (2) If industry best

- practices persistence studies are used to modify an effective

- useful

- life value, they must be conducted at least every 5 years. (C) No double counting of t he electricity savings may occur, and the EM&V plan must include documentation of the steps taken to avoid double counting. The EM&V plan may specify that the following procedures will be taken to avoid counting the same MWh savings more than one time: (i) For programs and projects with identified participants, track the type and number of EE measures implemented at the utility

- customer level.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 350 of 447 (ii) For programs without identified utility customers, such as point

- of

- sale rebates and retailer or manufacturer incentive programs, track applicable vendor, retailer, and manufacturer data. (iii) Correct for double counting that may occur across programs with identified participants and individual projects (outside of EE programs), such as those implemented by an e nergy service company (ESCO). (iv) In cases where tracked customer activity may be double counted with activity that is not tracked at the customer level (such as retail incentives to purchase energy

- efficient equipment), identify the resulting overlap and ensure that MWh savings are only counted one time. (D) The EM&V plan must specify the verification approach that will be applied within the first year of implementation of the EE measures to ensure that the applicable EE measures have been properly instal led, are operating as intended, and therefore have the potential to save electricity. Verification must apply best

- practice approaches, such as physical inspections at a customer premises, phone and mail surveys, and document reviews. (E) Interactive eff ects on electricity usage, which are increases or decreases in electricity usage at an end

- use facility or premises that occurs outside of the measurement***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 351 of 447 boundary of the specific end

- uses(s) targeted by the EE program, project, or measure (e.g., lighting retrofits to improve energy efficiency can reduce waste heat to the surrounding conditioned space, and therefore increase the required heating load in a facility or premises). (vii) The EM&V plan must specify how the accuracy and reliability of the electr icity savings of the EE program or project will be assessed and discuss the rigor of the method selected to quantify the electricity savings, the approaches used to control all relevant types of bias and to minimize the potential for systematic and random error, and assess the potential effects of such bias and error specified in the EM&V plan. (viii) If sampling will be used to quantify the electricity savings or the EE measure, the MWh estimates derived from sampling must have at least 90 percent confidence intervals whose end points are no more than +/

- 10 percent of the estimate, and the statistical precision of the associated estimates must be specified in the EM&V plan. (ix) All data sources and key assumptions used to quantify electricity savings must be described in the EM&V plan. (x) Any additional information necessary to demonstrate that the electricity savings were appropriately quantified and verified.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 352 of 447 (d) You must ensure that any EM&V plan submitted pursuant to this subpart includes the following certification: (1) I certify under penalty of law that I have personally examined, and am f amiliar 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 be st 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. **§ 62.16460 What are the requirements for monitoring and**  **verification reports for eligible resources?** (a) Any M&V report that is submitted in accordance with the requirements of §62.16445, in support of the issuance of an ERC that can be used in accordance with §62.16420, must meet the requirements of this section. (b) General M&V report criteria. Each M&V report must include the following: (i) For the first M&V report submitted, documentation that the electricity

- generating resources, electricity

- saving

mea sures, or practices were installed or implemented consistent with the description in the approved eligibility application***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 353 of 447 required in §62.16435(a). (ii) For each M&V report submitted: (A) identification of the time period covered by the M&V report, (B) a d escription of how relevant quantification methods, protocols, guidelines, and guidance specified in the EM&V plan were applied during the reporting period to generate the quantified MWh of generation or MWh of electricity savings, (C) documentation (inclu ding data) of the energy generation and/or electricity savings from any activity, project, measure, resource, or program addressed in the EM&V report, quantified and verified in MWh for the period covered by the M&V report, in accordance with its EM&V plan , and based on ex

- post energy generation or savings, (D) documentation of any change in the energy generation or savings capability of the eligible resource during the period covered by the M&V report and the date on which the change occurred, and either certification that the Eligible resource continued to meet all eligibility requirements during the reporting period covered by the M&V report or disclosure of any material changes to the eligible resource from the description of the eligible resource in th e approved eligibility application, which must include any change in the energy generation (e.g., nameplate MW capacity) or electricity savings***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 354 of 447 capability of the qualifying eligible resource (including the date of the change), and (E) documentation of any change in ownership interest of the qualifying eligible resource (including the date of the change). (d) You must ensure that any M&V report submitted pursuant to this subpart includes the following certification: (1) 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 sta tements 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. **§62.16465 Verification reports.** (a) A verification report included as part of an eligibility application or an M&V report must meet the requirements of paragraph (b) of this section (for the eligibility application ver ification report) and paragraph (c) of this section (for the M&V report verification report) and include the following:***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 355 of 447 (1) A verification statement that sets forth the findings of the accredited independent verifier, based on the verifier’s assessment of the information and data in the eligibility application or M&V report that is the subject of the verification report, including an assessment of whether the eligibility application or M&V report contains any material misstatements or material data discrep ancies, and whether the submittal conforms with applicable regulatory requirements. The verification statement must clearly identify how levels of assurance and materiality are defined as part of the verifier
assessment. (2) The following statement, signe d by the accredited independent verifier: 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 personal knowledge and/or inquir y 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 sub mitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment. (b) A verification report included as part of an***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 356 of 447 eligibility application must, at a minimum, describe the review

c onducted by the accredited independent verifier and verify each of the following: (1) The eligibility of the eligible resource to be issued ERCs pursuant to this regulation, in accordance with §62.16435 and **§** 62.16445(a), including an analysis of the adeq uacy and validity of the information submitted by the authorized account representative to demonstrate that the eligible resource meets each applicable requirement of §62.16435 and **§** 62.16445(a). (2) The eligible resource is not duplicative of a resource used to meet emission standards or a state measure in another approved state plan. (3) The eligible resource exists or the practice or activity will be implemented in the manner specified in the eligibility application. (4) That the EM&V plan meets the requirements of §62.16455. (5) Disclosure of any mandatory or voluntary programs to which data is reported relating to the ERC resource (e.g., reporting of electric generation by a renewable energy resource to a renewable energy certificate tracking syste m). (6) Any other information required by the Administrator or that the accredited independent verifier finds, in its professional opinion, is necessary to assess the adequacy and validity of information and data supplied by the authorized***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 357 of 447 account represe ntative. (c) A verification report included as part of a M&V report must, at a minimum, describe the review conducted by the accredited independent verifier and verify the following: (1) The adequacy and validity of the information and data submitted in the submittal by the authorized account representative to quantify eligible MWh of electric generation or electricity savings during the period for which the authorized account representative seeks issuance of ERCs, as well as all supporting information an d data identified in the EM&V plan and M&V report. This analysis must include a quality assurance and quality control check of the data and ensure that all generation or savings data is within a technically feasible range for that specific Eligible resourc e. (i) For metered generation, the data validity check must compare reported electricity generation to an engineering estimate of the maximum generation potential of the qualified renewable energy resource, based on, at a minimum, its maximum nameplate cap acity in MW and the number of days since the prior cumulative meter reading was entered in the ERC tracking system. If the data entered exceeds the estimated technically feasible generation, the reported data and the estimate must be analyzed in the verifi cation report. (ii) For all electricity generated or saved, the accredited***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 358 of 447 independent verifier must describe the likely source of any data discrepancy and determine in the verification report any MWh generated or saved. (2) The M&V report meets the requi rements of §62.16460. (3) Any other information required by the Administrator or that the accredited independent verifier finds, in its professional opinion, is necessary to assess the adequacy and validity of information and data supplied by the authoriz ed account representative. **§ 62.16470 Accreditation of Independent Verifiers.**  (a) Only Administrator

- accredited independent verifiers may provide a verification report for an eligibility application or M&V report. (b) Applications for accreditation must f ollow a procedure and form specified by the Administrator which shall include a demonstration by the verifier that it meets the requirements in paragraph (d). (d) Independent verifiers must meet each of the requirements in paragraphs (d)(1) through (6) to be accredited. (1) Independent verifiers must have the skills, experience, resources (personnel and otherwise) to provide verification reports, including the following: (A) Appropriate technical qualification (professional engineer or otherwise) to eval uate the eligible resource for***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 359 of 447 which the independent verifier is seeking accreditation, which may include ANSI accreditation under ISO 14065 for GHG validation and verification bodies. (B) Appropriate auditing and accounting qualifications for financial a nd non

- financial data monitoring, auditing, and quality assurance and quality control to evaluate the eligible resource for which the independent verifier is seeking accreditation. (C) Knowledge of the requirements of the Administrator’s
state’s Rate

- base d Trading Program regulations and related guidance. (D) Knowledge of the eligible resource categories for which the independent verifier is seeking accreditation, including relevant aspects of the design, operation, and related energy generation or electr icity savings monitoring and reporting approaches for such eligible resources. (E) Capability to perform key verification activities, such as development of a verification report; performance of site visits; review and recalculation of reported data; revi ew of data management systems; review of quantification methods used in accordance with an approved EM&V plan; preparation of a verification statement, list of findings, and verification report; and internal review of the verification findings and report.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 360 of 447 (2) Independent verifiers must document, in the application for accreditation, the independent verifiers that will provide verification services, including lead verifiers, key personnel and any contractors or subcontractors (collectively, accredited indep endent verification team) and demonstrate that they meet the requirements of section §62.16470(d)(1). Once accredited, only the accredited independent verification team identified in the accreditation application and accredited by the state may provide a v erification report. (3) An independent verifier must specify the eligible resource categories for which it is seeking accreditation, and an accredited independent verifier may only provide verification services related to an eligible resource category for which it is accredited. (4) Prospective independent verifiers must meet the requirements of **§** 62.16475(d) through (f) and demonstrate that they have in place adequate systems and protocols to identify, disclose and avoid potential conflicts of interest. ( 5) An accredited independent verifier must not be debarred, suspended, or proposed for debarment pursuant to the
Government

- wide Debarment and Suspension regulations, 40 CFR part 32, or the Debarment, Suspension and Ineligibility provisions of the Federal Acquisition Regulations, 48 CFR part 9, subpart 9.4.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 361 of 447 (6) An accredited independent verifier must maintain, for its employees, and ensure the maintenance of, for any parties that it employs, professional liability insurance, as defined in 31 C.F.R. 50.5(q), through an insurance provider that possess a financial strength rating in the top four categories from either Standard & Poor’s or Moody’s, specifically, AAA, AA, A or BBB for Standard & Poor’s, and Aaa, Aa, A, or Baa for Moody’s. Any entity cover ed by this paragraph shall disclose the level of professional liability insurance they possess when entering into contracts to provide verification services pursuant to this regulation. (e) Requirements for maintenance of accreditation status. (1) Accredi ted independent verifiers must meet the requirements of section 62.16475 when providing verification services for a authorized account representative. (2) The instances specified in section 62.16475(d) are cause for revocation of a verifier’s accreditatio n. **§ 62.16475 Avoidance of Conflict Interest with Accredited**  **Independent Verifiers.** (a) Accredited independent verifiers must not provide verification services for any Eligible resource for which it has a conflict of interest or COI, which means: (1) Accredited independent verifiers must have, or have had, no direct or indirect financial interest in, or other***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 362 of 447 financial relationships with, an Eligible resource, or any prospective Eligible resource, for which the seek to provide a verification report. (2 ) Accredited independent verifiers must have, or have had, no direct or indirect organizational or personal relationships with an Eligible resource, that would impact their impartiality in assessing the validity and accuracy of the information in an eligib ility application or M&V report. (3) Accredited independent verifiers must have, or have had, no role in the development and implementation of an eligible resource for which a authorized account representative seeks issuance of ERCs, beyond the provision of verification services. (4) Accredited independent verifiers must not be compensated, financially or otherwise, directly or indirectly, on the basis of the content of its verification report (including eligibility approval of an eligible resource, the
q uantified and verified MWh in an M&V report, ERC issuance, or the number of ERCs issued). (5) Accredited independent verifiers must not own, buy, sell, or hold ERCs, or other financial derivatives related to ERCs, or have a financial relationship with ot her parties that own, buy, sell, or hold ERCs or other related financial derivatives.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 363 of 447 (6) An accredited independent verifier must not be incapable of providing an impartial verification report for any other reason. (7) An accredited independent verifier m ust ensure that the subject of any verification report must not have the opportunity to review or influence any draft or final verification report before its submittal to the Administrator, and the accredited independent verifier must share any drafts of i ts reports with the Administrator at the same time as it shares them with the subject of the report. (b) A contract with an Eligible resource for the provision of verification services shall not constitute a conflict of interest. (c) Verification reports must include an attestation by the accredited independent verifier that it evaluated and disclosed to the Administrator any potential COI related to an Eligible resource. (d) Prior to engaging for the provision of verification services, an accredited inde pendent verifier must demonstrate that it has no conflict of interest related to the Eligible resource, as specified in §62.16475(a). If a conflict of interest is identified for a person or persons within an accredited independent verifier for a specific s ubject or verification, in accordance with paragraphs (e) and (f) below,***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 364 of 447 an accredited independent verifier may propose to the Administrator steps that will be taken to eliminate the conflict of interest which shall include prohibiting the person or
person s with the conflict from any involvement in the matter subject to the conflict, including verification services, access to information related to the verification services, access to any draft or final verification reports, any communications with the pers on(s) conducting the verification services. In no instance shall an accredited independent verifier engage in verification services for an Eligible resource without the approval of the Administrator. (e) Prior to engaging in verification services and writi ng a verification report, an accredited independent verifier shall disclose to the Administrator all information necessary for the Administrator to evaluate a potential conflict of interest (including information concerning its ownership, past and
current clients, related entities, as well as any other facts or circumstances that have the potential to create a conflict of interest). (f) Accredited verifiers shall have an ongoing obligation to disclose to the Administrator any facts or circumstances that

ma y give rise to a conflict of interest as defined in §62.16475(a). (g) The Administrator may reject a verification report from***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 365 of 447 an accredited independent verifier, if the Administrator determines that the accredited independent verifier has a conflict of in terest as defined in §62.16475(a). If the Administrator rejects an accredited independent verifier report for such reasons, the eligibility application or M&V report submittal must be deemed incomplete and ERCs must not be issued pursuant to it. **§ 62.16480**  **Revocation of accreditation status.** (a) The Administrator may revoke the accreditation of an independent verifier at any time for cause, including for the reasons specified in paragraphs (a)(1) through (4). (1) Failure to fully disclose any issues that ma y lead to a conflict of interest with respect to an Eligible resource, or other related entity, in accordance with § 62.16475(d) through (f). (2) The accredited independent verifier is no longer qualified to provide verification services. (3) Negligence i n the conduct of verification activities, or neglect of responsibilities pursuant to the requirements of
§ 62.16465, § 62.16470, and § 62.16475. (4) Intentional misrepresentation of data in a verification report. **Designated Representatives §62.16485**  **How are designated representatives and alternate** ***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 366 of 447 **designated representatives authorized? What role do authorized designated representatives and alternate designated**  **representatives play?** (a) Except as provided under §62.16495, each affected EGU, and each eligible resource shall have one and only one designated representative, with regard to all matters under the
CO 2 Rate

- based Trading Program. (1) The designated representative shall be selected by an agreement binding on the owners and operators of the affected
EG U and shall act in accordance with the certification statement in §62.16500(a)(4)(iii). (2) Upon and after receipt by the Administrator of a complete certificate of representation under §62.16500: (i) The designated representative shall be authorized and

s hall represent and, by his or her representations, actions, inactions, or submissions, legally bind each owner and operator of the affected EGU in all matters pertaining to the CO 2 Rate

based Trading Program, notwithstanding any agreement between the desig nated representative and such owners and operators; and (ii) The owners and operators of the affected EGU shall be bound by any decision or order issued to the designated representative by the Administrator regarding the affected EGU . (b) Except as provid ed under §62.16495, each affected EGU may have one and only one alternate designated representative,***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 367 of 447 who may act on behalf of the designated representative. The agreement by which the alternate designated representative is selected shall include a procedur e 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 affected EGU and shall act i n accordance with the certification statement in §62.16500(a)(4)(iii). (2) Upon and after receipt by the Administrator of a complete certificate of representation under §62.16500, (i) The alternate designated representative shall be authorized; (ii) Any r epresentation, 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 affected EGU shall be bound by any decision or order issued to the alternate designated representative by the Administrator regarding any such affected EGU. (c) Except in this section, §62.16570, and §§62.16490 through 62.16510, whenever the term “designated representative” (as distinguished from the term “common designated***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 368 of 447 representative”) is used in this subpart, the term shall be construed to include the designated representative or any alternate designated representative. **§62.16490 What responsibilities do designated rep**  **resentatives and alternate designated representatives hold?**  (a) Except as provided under §62.16510 concerning delegation of authority to make submissions, each submission under the CO 2 Rate

- based Trading Program shall be made, signed, and certified by the designated representative or alternate designated representative for each affected EGU for which the submission is made. Each such submission shall include the following certification statement by the designated representative or alternate designated repre sentative: “I am authorized to make this submission on behalf of the owners and operators of the affected EGU for which the submission is made. I certify under penalty of law that I have personally examined, and am familiar with, the statements and informa tion 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, accu rate, 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 369 of 447 imprisonment.” (b) The Administrator will accept or ac t on a submission made for an affected EGU only if the submission has been made, signed, and certified in accordance with paragraph (a) of this section and §62.16510. **§62.16495 What are the processes for changing designated**  **representative, alternate design ated representative, owners and**  **operators?** (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 §62.16500. 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 t he new designated representative and the owners and operators of the affected EGU. (b) **Changing alternate designated representative.** The alternate designated representative may be changed at any time upon receipt by the Administrator of a superseding compl ete certificate of representation under §62.16500. 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 370 of 447

su perseding certificate of representation shall be binding on the new alternate designated representative, the designated representative, and the owners and operators of the affected EGU

. (c) **Changes in owners and operators.** (1) In the event an
owner or ope rator of an affected EGU is not included in the list of owners and operators in the certificate of representation under §62.16500, 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 affected EGU , 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 affected EGU , 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 representa tion under §62.16500 amending the list of owners and operators to reflect the change. (d) **Changes in affected EGUs at the source.** Within 30 days of any change in which affected EGUs are located at a source (including the addition or removal of an affected EGU), the designated representative or any alternate designated***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 371 of 447 representative shall submit a certificate of representation under §62.16500 amending the list of affected EGUs to reflect the change. (1) If the change is the addition of an affected EGU 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

a ffected EGU was purchased or otherwise obtained (including name, address, telephone number, and facsimile number (if any)), the date on which the affected EGU was purchased or otherwise obtained, and the date on which the affected EGU became located at the source. (2) If the change is the removal of an affected EGU, then the certificate of representation shall identify, in a format prescribed by the Administrator, the entity to which the affected EGU was sold or that otherwise obtained the affected
EGU (including name, address, telephone number, and facsimile number (if any)), the date on which the affected EGU was sold or otherwise obtained, and the date on which the affected EGU became no longer located at the source. **§62.16500 What must be included in**  **a certificate of representation?**  (a) A complete certificate of representation for a***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 372 of 447 designated representative or an alternate designated representative shall include the following elements in a format prescribed by the Administrator: (1) Identification of the affected EGU for which the certificate of representation is submitted, including names, 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 num ber and type, identification number and nameplate capacity (in MWe, rounded to the nearest tenth) of each generator served by each such affected EGU, actual or projected date of commencement of commercial operation, and a statement of whether such affected EGU 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 add ress (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 affected EGU

. (4) The following certification statement s by the designated representative and any alternate designated***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 373 of 447 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

o f the affected EGU.” (ii) “I certify that I have all the necessary authority to carry out my duties and responsibilities under the CO 2 Rate

- based Trading Program on behalf of the owners and operators of the affected EGU and that each such owner and operato r 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 affected EGU.” (iii) “Where there are multiple holders of a legal or equitable title to, or a leas ehold interest in, an affected EGU, or where a utility or industrial customer purchases power from an affected EGU under a life

- of

- the

- unit, firm power contractual arrangement, I certify that: I have given a written notice of my selection as the ‘designate d representative’ or ‘alternate designated representative’, as applicable, and of the agreement by which I was selected to each owner and operator of the affected EGU ; and ERCs and proceeds of transactions involving
CO 2 Rate

- based Trading allowances will be deemed to be held or distributed in proportion to each holder's legal, equitable, leasehold, or contractual reservation or entitlement, except***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 374 of 447 that, if such multiple holders have expressly provided for a different distribution of ERCs by contract, ERCs and proceeds of transactions involving CO 2 Rate

- based Trading ERCs 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 signe d. (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 suffic iency of such documents, if submitted. **§62.16505 What is the Administrator’s role in objections**  **concerning designated representatives and alternate designated representatives?**  (a) Once a complete certificate of representation under §62.16500 has been subm itted and received, the Administrator will rely on the certificate of representation unless and until a superseding complete certificate of representation under §62.16500 is received by the Administrator. (b) Except as provided in paragraph (a) of this sec tion, 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 375 of 447 representa tion, 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 CO 2 Rate

- based 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 ERC transfers
. **§62.16510 What process must designated representatives and**  **alternate designated representatives follow to delegate their authority?**  (a) A designated representative may delegate, to one or more natural persons, his or her authority to make an electronic

s ubmission 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 represe ntative, as***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 376 of 447 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 th at 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 62.16510(d) shall be deemed to be an electronic submiss ion by me.” (ii) “Until this notice of delegation is superseded by***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 377 of 447 another notice of delegation under 40 CFR 62.16510(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 delega tion of authority by me under 40 CFR 62.16510 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 su ch 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 not ice 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. **Monitoring, Recordkeeping, Re porting**  **§62.16515 How are compliance accounts and general accounts**  **established and used and how is ERC issuance documentation*****E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 378 of 447 **accessed?** (a ) Compliance accounts. (1) Upon receipt of a complete certificate of representation under §62.16500, the Administrat or will establish a compliance account for the affected EGU for which the certificate of representation was submitted, unless the affected EGU already has a compliance account. The designated representative and any alternate designated representative of an affected EGU shall be the authorized account representative and the alternate authorized account representative respectively of the compliance account. (2) A compliance account will hold ERCs intended for surrender by a designated representative when demo nstrating an affected EGUs compliance with a CO 2 emission standard as applicable in §62.16420. A compliance account may be established for a facility with one or more affected EGUs, provided that the account contains subaccounts for each affected EGU within the facility. (b) Retirement Account. (1) A re tirement account, into which ERCs held in a compliance account for an affected EGU are surrendered by the owner or operator of an affected EGU, for use in demonstrating compliance with its emission standards. The retirement account may only be held by the Administrator, and ERCs deposited into it are permanently retired. Once an ERC is retired, the ERC shall no longer be transferable to another***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 379 of 447 account in that ERC tracking system or any other ERC tracking system. (c) General accounts. (1) Application for a general
account . (i) Designated representatives of affected EGUs, authorized account representatives of eligible resources, and any other person may apply to open a general account, for the purpose of holding and transferring ERCs, 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 auth orized 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 ERCs held in the general accoun t. (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 app lication 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),***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 380 of 447 telephone number, and facsimile transmission number (if any) of the authorized account repr esentative 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 represe ntative to represent their ownership interest with respect to the ERCs 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 wa s 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 ERCs held in the general account. I certify that I have all the necessary authority to carry out my duties and responsibilities under the CO 2 Rate

- based 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.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 38 1 of 447 (iii) Unless otherwise requ ired 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 Adminis trator 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 r epresent and, by his or her representations, actions, inactions, or submissions, legally bind each person who has an ownership interest with respect to ERCs held in the general account in all matters pertaining to the CO 2 Rate

- based Trading Program, notwit hstanding 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 rep resentative shall be deemed to be a representation, action, inaction, or submission by the authorized account representative.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 382 of 447 (C) Each person who has an ownership interest with respect to ERCs held in the general account shall be bound by any decision or o rder issued to the authorized account representative or alternate authorized account representative by the Administrator regarding the general account. (ii) Except as provided in paragraph (b)(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 ERCs h eld 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 pers ons having an ownership interest with respect to the ERCs 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***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 383 of 447 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 t his 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 (b)(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 ERCs 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,***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 384 of 447 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
person s with an ownership interest with respect to the ERCs in the general account. (iii)(A) In the event a person having an ownership interest with respect to ERCs in the general account is not included in the list of such persons in the application for a gener al 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 representativ e 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 ERCs in the general account, including the add ition 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 t o the ERCs in the general account to include the change.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 385 of 447 (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 secti on has been submitted and received, the Administrator will rely on the application unless and until a superseding complete application for a general account under paragraph (b)(1) of this section is received by the Administrator. (ii) Except as provided in paragraph (b)(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 authoriz ed 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 Admi nistrator under the CO 2 Rate

- based 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 al ternate authorized account representative of a general account, including private legal disputes concerning the proceeds of ERCs transfers.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 386 of 447 (5) Delegation by authorized account representative and alternate authorized account representative
. (i) An authoriz ed 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 repres entative 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 (b)(5)(i) or (ii) of this section, the authorized account representative or alternate authorized account representative, as appropriate, must submit to the Administrator a noti ce 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”);***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 387 of 447 (C) For each such natural person, a list of the type or types of electronic submissions under paragraph (b)(5)(i) or (ii) of this section for which authority is delegated to him or her; (D) The following certification statement by such authorized account representative or alternate authorized
account re presentative: “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 re presentative or alternate authorized representative, as appropriate, and before this notice of delegation is superseded by another notice of delegation under 40 CFR 62.16515(b)(5)(iv) shall be deemed to be an electronic submission by me.”; and (E) The foll owing 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 62.16515(b)(5)(iv), I agree to maintain an e

- mail account and to notify the Administrator immediately of any change in my e

- mail address unless all delegation of authority by me under 40 CFR 62.16515(c)(5) is terminated.”. (iv) A notice of delegation submitted under paragraph***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 388 of 447 (b)(5)(iii) of this sec tion 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 entire ly any delegation of authority. (v) Any electronic submission covered by the certification in paragraph (b)(5)(iii)(D) of this section and made in accordance with a notice of delegation effective under paragraph (c)(5)(iv) of this section shall be deemed t o 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 representat ive of a general account may submit to the Administrator a request to close the account. Such request shall include a correctly submitted ERC transfer under §62.16525 for any ERCs in the account to one or more other Allowance Management System
accounts. (i i) If a general account has no ERC transfers to or from the account for a 12

- month period or longer and does not contain***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 389 of 447 any ERCs, the Administrator may notify the authorized account representative for the account that the account will be closed after 30 d ays 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 ERC transfer under §62.16525 to the account or a statement submitted by the autho rized 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 paragraphs (a) through (c) of this section. (e) Responsibilities of authorized account representative and alternate authorized account representative **.** After the establishment of a compliance account or g eneral 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 ERCs in the account, only if the submission has been made, signed, and certif ied in accordance with §62.16490(a) and §62.16510 or paragraphs (c)(2)(ii) and (c)(5) of this section. (f) ERC identification information. The Administrator will assign to each ERC issued in the EPA ERC tracking system a***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 390 of 447 unique serial identifier that bein gs with the two digit postal abbreviation of the state in which it was issued and includes the year it was issued, and the eligible resource category that generated it. (g) Records supporting ERC issuance. The Administrator will maintain in the EPA ERC tra cking system records of, for each ERC, all of the following: (1) Account holder names and information. (2) Authorized account representative name and information. (3) Qualifying eligible resource identification number, name, state, and contact information including street address, mailing address, phone number, and email. (4) Category of qualifying eligible resource, according to the categories specified in section §62.16435(a). (5) The date the qualifying eligible resource commenced generation or saving of energy. (6) Individual ERCs, each with a unique serial identifier that meets the requirements of §62.16445(c). (7) Records of ERC transfers among accounts, including the date of transfer and the accounts involved in the transfer. (8) The date an ERC wa s surrendered for a compliance demonstration. (9) Date an ERC was retired by the regulatory body. (10) Each eligibility application, EM&V plan, M&V report,***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 391 of 447 and verification report associated with the issuance of each specific ERC, and each regulatory appro val and any documentation that supports the issuance of each ERC by the Administrator
. (h) Access to records supporting ERC issuance. The Administrator will provide in the EPA ERC tracking system access and functionality to allow each ERC to be traceable by the public to the records listed in §62.16515(g). This information will be accessible via an electronic, internet

- based portal in
t he ERC tracking system searchable by, at a minimum, each eligible resource, affected EGU, eligible resource category, and
ERC. (i) Reports. The Administrator will provide in the EPA ERC tracking system electronic, internet

- based access to enable the
gener ation of at least the following reports, [for as long as this regulation is effective] [in perpetuity]: (1) Account Activity Reports. By each account holder, reports based on records of their account activity, including the information listed in §62.16515 (g). (2) Public Reports. By the public, reports that include: all of the information listed in §62.16515(g); a list of all registered account holders in the ERC tracking system, including compliance accounts and general accounts; a list of all ERC

resource s (including access to all documentation for such eligible resources); a list of all accredited independent***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 392 of 447 verifiers; and aggregate ERC activity statistics on at least an annual basis, for at least the following: issuance of ERCs, transfers among accounts , transfers in or out of the ERC tracking system to/from another approved ERC tracking system (if relevant), and ERC retirements. The ERC tracking system shall provide this functionality for as long as this regulation is effective. (3) EPA reports. For the EPA and state regulators, the information listed in §62.16515(g) and any other information regarding ERC issuance, transfer, surrender, and retirement for purpose of compliance with this regulation. (j) Interactions with other ERC tracking systems. If app roved in connection with a state plan, an ERC tracking system may provide for transfers of ERCs to/from another ERC tracking system approved in connection with s state plan by the EPA, or provide for transfers of ERCs to/from an EPA

administered ERC tracki ng system used to administer a federal plan. To transfer ERCs to or from an EPA

- administered ERC tracking system, the state ERC tracking system must be approved under subpart UUUU of part 60 of this chapter for such use by the EPA. **§62.16525 How must trans**  **fers of ERCs be submitted?** (a) An authorized account representative seeking recordation of an ERC transfer shall submit the transfer to the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 393 of 447 Administrator. (b) An ERC 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 ERC 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 ERC identified by serial number in the transfer. **§62.16530 When will ERC transfers be recorded?**  (a) Within five business days (except as provided in paragraph (b) of this section) of receiving an ERC transfer that is correctly submitted under §62.16525, the Administrator will record an ERC tr ansfer by moving each ERC from the transferor account to the transferee account as specified in the transfer. (b) An ERC transfer to or from a compliance account that is submitted for recordation after the allowance transfer deadline for a compliance perio d and that includes any ERCs allocated for any compliance period before such allowance transfer deadline***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 394 of 447 will not be recorded until after the Administrator completes the deductions from such compliance account under §62.16535 for the compliance period imme diately before such allowance transfer deadline. (c) Where an ERC transfer is not correctly submitted under §62.16525, the Administrator will not record such transfer. (d) Within five business days of recordation of an ERC 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 an ERC transfer that is not correctly submitted under §62.16525, the Adminis trator 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. **§62.16535 How will deductions for compliance with a CO**  **2 emission**  **standard occur?** For affected EGUs subject to the emission standards listed in Table 1, the owner or operator of an affected EGU must demonstrate compliance with its CO 2 emission standard in accordance with 62.16420(c) and incorporate ERCs as listed in paragraphs (a) through (e) of this section. (a) Availability for deduction for compliance. ERCs are***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 395 of 447 available to be deducted from a compliance account and used for compliance with an affected EGU’s CO 2 emissio ns standard for a compliance period only if the ERCs: (1) Were allocated for a year in such compliance period or a prior compliance period; and (2) Are held in the affected EGU's compliance account as of the allowance transfer deadline for such compliance period. (b) Deductions for compliance. After the recordation, in accordance with §62.16530, of ERC transfers submitted by the ERC transfer deadline for a compliance period, the Administrator will deduct from each affected EGU's compliance account ERCs avai lable under paragraph (a) of this section in order to determine whether the affected EGU meets the CO 2 emission standard for such compliance period, as follows: (1) Until the amount of ERCs deducted and subsequently added to the total MWh generated by the affected EGU adjusts the affected EGU’s CO 2 emission rate to equal the CO 2 emission standard for such compliance period; or (2) If there are insufficient ERCs to complete the deductions in paragraph (b)(1) of this section, until no more ERCs available unde r paragraph (a) of this section remain in the compliance account. (c) Identification of ERCs by serial number. (1) The authorized account representative for an affected***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 396 of 447 EGU's compliance account may request that specific ERCs, identified by serial number, in the compliance account be deducted for emissions or excess emissions for a compliance period 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 ERC transfer deadl ine for such compliance period and include, in a format prescribed by the Administrator, the identification of the affected EGU and the appropriate serial numbers. (d) First

- in, first

- out. The Administrator will deduct ERCs under paragraph (b) or (e) of th is section from the affected EGU'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 ERCs in such request, on a f irst

- in, first

- out accounting basis. (e) Deductions for exceeding the emission standard. After making the deductions for compliance under paragraph (b) of this section for a compliance period in a year in which the affected EGU has exceeded its CO 2 emission standard, the Administrator will deduct from the affected EGU's compliance account an amount of ERCs, allocated for a compliance period in a prior year or the compliance period in the year of the excess emissions or in the immediately following y ear, equal to two times the number of***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 397 of 447 tons of the affected EGU's excess emissions. (f) 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 s ection. **§62.16540 What monitoring requirements must I comply with?**  (a) You must follow the requirements described in (a)(1) through (8) of this section to monitor emissions and net energy output at your affected EGU. (1) The owner of operator of an affect ed EGU required to meet a rate based or mass based emission standard must prepare a monitoring plan in accordance with the applicable provisions in §75.53(g) and (h) of this chapter, unless such a plan is already in place under another program that require s CO 2 mass emissions to be monitored and reported according to part 75 of this chapter. (2) Each compliance period shall include only “valid operating hours” in the compliance period, i.e., operating hours for which: (i) “Valid data” (as defined in §62.1 6570) are obtained for all of the parameters used to determine the hourly CO 2 mass emissions (lbs). For the purposes of this subpart, substitute data recorded under part 75 of this chapter are not considered to be valid data; and (ii) The corresponding ho urly net energy output value is***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 398 of 447 also valid data (Note: for hours with no useful output, zero is considered to be a valid value). (3) The owner or operator of an affected EGU must measure and report the hourly CO 2 mass emissions (lbs) from each affected unit using the procedures in paragraphs (a)(3)(i) through (vii) of this section, except as provided in paragraph (a)(4) of this section. (i) The owner or operator of an affected EGU must install, certify, operate, m aintain, and calibrate a CO 2 continuous emissions monitoring system (CEMS) to directly measure and record CO 2 concentrations in the affected EGU exhaust gases emitted to the atmosphere and an exhaust gas flow rate monitoring system according to §75.10(a)(3 )(i) of this chapter. As an alternative to direct measurement of CO 2 concentration, the owner or operator of an affected EGU may use data from a certified oxygen (O 2 ) monitor to calculate hourly average CO 2 concentrations, in accordance with §75.10(a)(3)(i ii) of this chapter. If CO 2 concentration is measured on a dry basis, you must also install, certify, operate, maintain, and calibrate a continuous moisture monitoring system, according to §75.11(b) of this chapter. Alternatively, you may either use an app ropriate fuel

- specific default moisture value from §75.11(b) or submit a petition to the Administrator under §75.66 of this chapter for a site

- specific default moisture value***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 399 of 447 (ii) For each “valid operating hour”, calculate the hourly
CO 2 mass emission rate (tons/hr), either from Equation F

- 11 in Appendix F to part 75 of this chapter (if CO 2 concentration is measured on a wet basis), or by following the procedure in section 4.2 of Appendix F to part 75 of this chapter (if CO 2 concentration is measured on a d ry basis). (iii) Next, multiply each hourly CO 2 mass emission rate by the EGU or stack operating time in hours (as defined in §72.2 of this chapter), to convert it to tons of CO 2. Multiply the result by 2000 lb/ton to convert it to lb. (iv) The hourly CO 2 tons/hr values and EGU (or stack) operating times used to calculate CO 2 mass emissions are required to be recorded under §75.57(e) of this chapter and must be reported electronically under §75.64(a)(6). You must use these data to calculate the hourly CO 2 mass emissions. (v) Sum all of the hourly CO 2 mass emissions values from paragraph (a)(3)(ii) of this section over the entire compliance period. (vi) For each continuous monitoring system used to determine the CO 2 mass emissions from an affected EGU us es, the monitoring system must meet the applicable certification and quality assurance procedures in §75.20 of this chapter and Appendices A and B to part 75 of this chapter. (vii) The owner operator of an affected EGU must use only***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 400 of 447 unadjusted exhaust gas volumetric flow rates to determine the hourly CO 2 mass emissions from the affected EGU; the owner or operator of an affected EGU must not apply the bias adjustment factors described in section 7.6.5 of Appendix A to part 75 of this chapter to the exhaust g as flow rate data. (4) The owner or operator of an affected EGU that exclusively combusts liquid fuel and/or gaseous fuel may, as an alternative to complying with paragraph (a)(3) of this section, determine the hourly CO 2 mass emissions according to paragr aphs (a)(4)(i) through (a)(4)(vi) of this section. (i) Implement the applicable procedures in appendix D to part 75 of this chapter to determine hourly EGU heat input rates (MMBtu/h), based on hourly measurements of fuel flow rate and periodic determinati ons of the gross calorific value (GCV) of each fuel combusted. (ii) For each measured hourly heat input rate, use Equation
G

- 4 in Appendix G to part 75 of this chapter to calculate the hourly CO 2 mass emission rate (tons/hr). (iii) For each valid operatin g hour (as defined in paragraph (a)(2) of this section, multiply the hourly tons/hr CO 2 mass emission rate from paragraph (a)(4)(ii) of this section by the EGU or stack operating time in hours (as defined in §72.2 of this chapter), to convert it to it to t ons of CO 2 . Then, multiply the result by 2000 lb/ton to convert it to lb.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 401 of 447 (iv) The hourly CO 2 tons/hr values and EGU (or stack) operating times used to calculate CO 2 mass emissions are required to be recorded under §75.57(e) of this chapter and must be reported electronically under §75.64(a)(6). You must use these data to calculate the hourly CO 2 mass emissions. (v) Sum all of the hourly CO 2 mass emissions values fro m paragraph (a)(4)(iii) of this section over the entire compliance period. (vi) The owner or operator of an affected EGU may determine site

- specific carbon

- based F

- factors (F c ) using Equation F

- 7b in section 3.3.6 of appendix F to part 75 of this chapter, and may use these F c values in the emissions calculations instead of using the default F c values in the Equation G

- 4 nomenclature. (5) The owner or operator of an affected EGU must install, calibrate, maintain, and operate a sufficient number of watt
meter s to continuously measure and record on an hourly basis net electric output. Measurements must be performed using 0.2 accuracy class electricity metering instrumentation and calibration procedures as specified under ANSI Standards No. C12.20. Further, the owner or operator of an affected EGU that is a combined heat and power facility must install, calibrate, maintain and operate equipment to continuously measure and record on an hourly basis useful thermal output and, if applicable, mechanical output, which are used with net electric***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 402 of 447 output to determine net energy output. The owner or operator must calculate net energy output according to paragraph (a)(5)(i) of this section. (i) For each valid operating hour of a compliance period that was used in paragraph (a)(3) of this section to calculate the total CO 2 mass emissions, you must determine P net (the corresponding hourly net energy output in MWh) according to the procedures in paragraphs (a)(5)(i)(A) and (B) of this section, as appropriate for the type of aff ected EGU(s). For an operating hour in which a valid CO 2 mass emissions value is determined according to paragraph (a)(3) of this section, if there is no gross or net electrical output, but there is mechanical or useful thermal output, you must still deter mine the net energy output for that hour. In addition, for an operating hour in which a valid CO 2 mass emissions value is determined according to paragraph (a)(3) of this section, but there is no (i.e., zero) gross electrical, mechanical, or useful thermal output, you must use that hour in the compliance determination. For hours or partial hours where the gross electric output is equal to or less than the auxiliary loads, net electric output shall be counted as zero for this calculation. (A) Calculate P net for your affected EGU using the following equation. All terms in the equation must be expressed in units of megawatt

- hours (MWh). To convert each hourly net energy***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 403 of 447 output value reported under part 75 of this chapter to MWh, multiply by the corresponding EG U or stack operating time.
PP

nnnnnn = ( PPPP ) SSSS + ( PPPP ) CC + ( PPPP ) IIII − ( PPPP ) FFFF TDF + [ ( PPPP ) PP + ( PPPP ) HHHH + ( PPPP ) IIII ]
Where:
P net = Net energy output of your affected EGU for each valid operating hour (as defined in paragraph(a)(2)) in MWh. (Pe) ST = Electric energy output plus mechanical energy output (if any) of steam turbines in MWh. (Pe) CT = Electric energy output plus mechanical energy output (if any) of stationary combustion turbine(s) in MWh. (Pe) IE = Electric energy output plus mechanical energ y output (if any) of your affected EGU’s integrated equipment that provides electricity or mechanical energy to the affected EGU or auxiliary equipment in MWh. (Pe) FW = Electric energy used to power boiler feedwater pumps at steam generating units in MWh. (Pt) PS = Useful thermal output of steam (measured relative to SATP conditions, as applicable) that is used for applications that do not generate additional electricity, produce mechanical energy output, or***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 404 of 447 enhance the performance of the affected EGU. This is calculated using the equation specified in paragraph (a)(5)(ii) of this section in MWh. (Pt) HR = Non steam useful thermal output (measured relative to SATP conditions, as applicable) from heat recovery that is used for applications other than steam gen eration or performance enhancement of the affected EGU in MWh. (Pt) IE = Useful thermal output (relative to SATP conditions, as applicable) from any integrated equipment is used for applications that do not generate additional steam, electricity, produce

me chanical energy output, or enhance the performance of the affected EGU in MWh.
TDF = Electric Transmission and Distribution Factor of 0.95 for a combined heat and power affected EGU where at least on an annual basis 20.0 percent of the total net energy ou tput consists of electric or direct mechanical output and 20.0 percent of the total net energy output consists of useful thermal output on a 12

- operating month rolling average basis, or 1.0 for all other affected
EGUs.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 405 of 447 (B) If applicable to your affected E GU (for example, for combined heat and power), you must calculate (Pt) PS using the following equation: ( PPPP ) PP = QQ mm × HH CCCC Where: Q m = Measured steam flow in kilograms (kg) (or pounds (lb)) for the operating hour.
H = Enthalpy of the steam at meas ured temperature and pressure (relative to SATP conditions or the energy in the condensate return line, as applicable) in Joules per kilogram (J/kg) (or Btu/lb).
CF = Conversion factor of 3.6 x 10 9 J/MWh or 3.413 x 10 6 Btu/MWh. (C) Sum all of the values of P net over the entire compliance period. Then, divide the total CO 2 mass emissions from paragraph (a)(3)(v) or (a)(4)(v), as applicable, by the sum of the P net values to determine the CO 2 emissions rate (lb/net MWh) for the compliance period. (6) In acc ordance with §60.13(g), if two or more affected EGUs implementing the continuous emissions monitoring provisions in paragraph (a)(2) of this section share a common exhaust gas stack and are subject to the same emission standard, the owner***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 406 of 447 or operator may m onitor the hourly CO 2 mass emissions at the common stack in lieu of monitoring each EGU separately. If an owner or operator of an affected EGU chooses this option, the hourly net electric output for the common stack must be the sum of the hourly net electr ic output of the individual affected EGUs and the operating time must be expressed as “stack operating hours” (as defined in §72.2 of this chapter). (7) In accordance with §60.13(g), if the exhaust gases from an affected EGU implementing the continuous emi ssions monitoring provisions in paragraph (a)(2) of this section are emitted to the atmosphere through multiple stacks (or if the exhaust gases are routed to a common stack through multiple ducts and you elect to monitor in the ducts), the hourly CO 2 mass emissions and the “stack operating time” (as defined in §72.2 of this chapter) at each stack or duct must be monitored separately. In this case, the owner or operator of an affected EGU must determine compliance with an applicable emission standard by summ ing the
CO 2 mass emissions measured at the individual stacks or ducts and dividing by the net energy output for the affected EGU. (8) If two or more affected EGUs serve a common electric generator, you must apportion the combined hourly net energy output to the individual affected EGUs according to the fraction of the total steam load contributed by each EGU. Alternatively, if the EGUs are identical, you may apportion the combined hourly***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 407 of 447 net electrical load to the individual EGUs according to the fraction of the total heat input contributed by each EGU. **§62.16545 May I bank CO**  **2 ERCs for future use or transfer?**  (a) An ERC 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 ERC that is held in a compliance account or a general account will remain in such account unless and until the ERC is deducted or transferred under §62.16208(b), §62.16530, §62.16535, §62.16540, 62.16550, or 62.16565. **§62.16550 How does the Adminis**  **trator process account errors?** 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 notif y the authorized account representative for the account. **§62.16555 What are my reporting, notification and**  **submission requirements?** (a) You must prepare and submit reports according to paragraphs (a) through (d) of this section, as applicable. (1) You mus t meet all applicable reporting requirements and submit reports as required under subpart G of part 75 of this chapter and you must include the following information, as applicable in the quarterly reports:***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 408 of 447 (i) The percentage of valid operating hours in ea ch quarter described 62.16540(a)(2) (i.e., the total number of valid operating hours) in that period divided by the total number of operating hours in that period, multiplied by 100 percent); and (ii) The hourly CO 2 mass emission rate values (tons/hr) and unit (or stack) operating times, (as monitored and reported according to part 75 of this chapter), for each valid operating hour in the compliance period; (iii) The net electric output and the net energy output (P net ) values for each valid operating hour in the compliance period,; (iv) The calculated CO 2 mass emissions (lb) for each valid operating hour in the compliance period; (v) The sum of the hourly net energy output values and the sum of the hourly CO 2 mass emissions values, for all of the valid
oper ating hours in the compliance period; (vi) ERC replacement generation (if any), properly justified (see paragraph (a)(1)(viii) of this section); and (vii) The calculated CO 2 mass emission rate for the compliance period (lb/net MWh). (viii) If the report covers the final quarter or a compliance period you must include the CO 2 emission standard (as identified in Table 1) with which your affected EGU must comply, your CO 2 emission rate calculated according to 62.16420(c), and***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 409 of 447 all if an affected EGU is comply ing with an emission standard by using ERCs the designated representative must include in their report a list of all unique ERC serial numbers retired in the compliance period, and, for each ERC, the date an ERC was surrendered and retired and eligible res ource identification information sufficient to demonstrates that it meets the requirements of 62.16435 and qualifies to be issued ERCs (including location, type of qualifying generation or savings, date commenced generating or saving, and date of generatio n or savings for which the ERC was issued). (b) If any required monitoring system has not been provisionally certified by the applicable date on which emissions data reporting is required to begin under paragraph (a) of this section, the maximum (or in som e cases, minimum) potential value for the parameter measured by the monitoring system shall be reported until the required certification testing is successfully completed, in accordance with §75.4(j) of this chapter, §75.37(b) of this chapter, or section 2 .4 of appendix D to part 75 of this chapter (as applicable). Operating hours in which CO 2 mass emission rates are calculated using maximum potential values are not “valid operating hours” (as defined in §62.16540(a)), and shall not be used in the complianc e determinations. (c) The designated representative of each affected EGU at***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 410 of 447 the facility shall make all submissions required under the CO 2 Mass

- based Trading Program, except as provided in §62.16510. This requirement does not change, create an exemption f rom, or otherwise affect the responsible official submission requirements under a title V operating permit program in parts 70 and 71 of this chapter. (d) You must submit all electronic reports required under paragraph (a) of this section using the Emissio ns Collection and Monitoring Plan System (ECMPS) Client Tool provided by the Clean Air Markets Division in the Office of Atmospheric Programs of
EPA. (e) For affected EGUs under this subpart that are not in the Acid Rain Program, you must also meet the reporting requirements and submit reports as required under subpart G of part 75 of this chapter, to the extent that those requirements and reports provi de applicable data for the compliance demonstrations required under this subpart. (f) If your affected EGU captures CO 2 to meet the applicable emission standard, you must report in accordance with the requirements of 40 CFR Part 98 Subpart PP and either: (1) Report in accordance with the requirements of 40 CFR Part 98 subpart RR, if injection occurs on

- site; or (2) Transfer the captured CO 2 to an EGU or facility that reports in accordance with the requirements of 40 CFR Part 98***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 411 of 447 subpart RR, if injection occ urs off

- site. (g) You must prepare and submit notifications specified in §75.61 of this chapter, as applicable to your affected EGUs. (2) For affected EGUs under this subpart that are not in the Acid Rain Program, you must also meet the reporting requirements and submit reports as required under subpart G of part 75 of this chapter, to the extent that those requirements and reports provide applicable data for the compliance demonstrations required under this subpart. For affected EGUs under this su bpart that are not in the Acid Rain Program, you must also meet the reporting requirements and submit reports as required under subpart G of part 75 of this chapter, to the extent that those requirements and reports provide applicable data for the complian ce demonstrations required under this subpart. (4) If any required monitoring system has not been provisionally certified by the applicable date on which emissions data reporting is required to begin under paragraph (c)(3) of this section, the maximum (or in some cases, minimum) potential value for the parameter measured by the monitoring system shall be reported until the required certification testing is successfully completed, in accordance with §75.4(j) of this chapter, §75.37(b) of this chapter, or se ction 2.4 of appendix D to part 75 of this chapter (as applicable). Operating***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 412 of 447 hours in which CO 2 mass emission rates are calculated using maximum potential values are not “valid operating hours” (as defined in §6 2
. 16 540(a)), and shall not be used in the

co mpliance determinations under § 62.16434
. (3) A person (or persons) authorized by the DR or ADR under §72.26 of this chapter to make the required submissions. **§62.16560 What are my recordkeeping requirements?** (a) The owner or operator of each affected EGU must maintain the records, as described in (a)(1) of this section, for at least 5 years following the date of each compliance period, occurrence, measurement, maintenance, corrective action, report, or record
. (1) Unless otherwise provided, the owner or operator of an affected EGU must maintain the following records on site for at least 2 years after the date of each compliance period, compliance true

- up period, occurrence, measurement, maintenance, corrective action, report, or record, whichever is latest, according to §60.7. The owner or operator of an affected EGU may maintain the records off site and electronically for the remaining year(s). This period may be extended for cause, at any time before the end of five years, in writing by the Administrator. (i) The certificate of representation under §62.16500 for the designated representative for each affected EGU and all***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 413 of 447 documents that demonstrate the truth of the statements in the certificate of representatio n; provided that the certificate and documents shall be retained on site at the affected EGU beyond such 5

- year period until such certificate of representation and documents are superseded because of the submission of a new certificate of representation un der §62.16500 changing the designated representative. (ii) All emissions monitoring information, in accordance with this subpart. (iii) Copies of all reports, compliance certifications, documents, data files, calculations and methods, other submissions and all records made or required under, or to demonstrate compliance with an affected EGU’s emission standard under §62.16420 and any other requirements of the CO 2 Rate

- based Trading Program. (iii) Data that is required to be recorded by 40 CFR Part 75 Subpar t F. (iv) Data with respect to any ERCs generated by the affected EGU or used by the affected EGU in its compliance demonstration including the information in paragraphs (c)(2)(iv)(A) and (B) of this section. (A) All documents related to any ERCs used in a compliance demonstration, including each eligibility application, EM&V plan, M&V report, and independent verifier verification report***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 414 of 447 associated with the issuance of each specific ERC, and each regulatory approval and any documentation that supports the i ssuance of each ERC by the Administrator. (B) All records and reports relating to the surrender and retirement of ERCs for compliance with this regulation, including the date each individual ERC with a unique serial identification number was surrendered an d/or retired. **§62.16565 What actions may the Administrator take on**  **submissions?** (a) The Administrator may review and conduct independent audits concerning any submission under the CO 2 Rate

- based Trading Program and make appropriate adjustments of the information in the submission. (b) The Administrator may deduct ERCs from or transfer ERCs to a compliance account, based on the information in a submission, as adjusted under paragraph (a )(1) of this section, and record such deductions and transfers. **Definitions §62.16570**  **What definitions apply to this subpart?** The terms used in this subpart shall have the meanings set forth in this section as follows: Acid Rain Program means a multi

- state SO 2 and NO X air pollution control and emission reduction program established by the Administrator under title IV of the Clean Air Act and parts***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 415 of 447 72 through 78 of this chapter. Administrator means the Administrator of the United States Environmen tal 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. Affected electric generating unit or Affected EGU means a steam generating unit, integrated gasification combined cycle (IGCC), or stationary combustion turbine that meets the relevant applicability conditions in section §62.16410 . An affected EGU is not an eligible resource. Allowable CO 2 emission rate means, for an affected EGU, the most stringent State or federal CO 2 emission rate limit (in lb/MWhr or, if in lb/mmBtu, converted to lb/MWhr by multiplying it by the affected EGU's heat rate in mmBtu/MWhr) tha t is applicable to the affected EGU and covers the longest averaging period not exceeding one year. Allowance Tracking and Compliance System means the system by which the Administrator records allocations, deductions, and transfers of ERCs under the CO 2 Ra te

- based Trading Program. Such allowances are allocated, recorded, held, deducted, or transferred only as whole allowances. Allowance Tracking and Compliance System account means an***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 416 of 447 account in the Allowance Management System established by the Administrato r for purposes of recording the allocation, holding, transfer, or deduction of ERCs. Allowance system means a control program under which the owner or operator of each affected EGU is required to hold an authorization for each specified unit of carbon diox ide emitted from that facility during a specified period and which limits the total amount of such authorizations available to be held for carbon dioxide for a specified period and allows the transfer of such authorizations not used to meet the authorizati on - holding requirement. ERC transfer deadline means, for a compliance period in a given year, 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 c ompliance period and is the deadline by which an ERC transfer must be submitted for recordation in a affected EGU's compliance account in order to be available for use in complying with the affected EGU's CO 2 emission standard for such compliance period in accordance with §§62.16420 and 62.16535. Alternate designated representative means, for a CO 2 Rate

based Trading affected EGU and each affected EGU at the facility, the natural person who is authorized by the owners and operators of the affected EGU and a ll such affected EGUs at the***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 417 of 447 affected EGU, in accordance with this subpart, to act on behalf of the designated representative in matters pertaining to the CO 2 Rate

- based Trading Program. If the affected EGU is also subject to the Acid Rain Program, TR NO X Annual Trading Program, TR
NO X Ozone Season Trading Program, TR SO 2 Group 1 Trading Program,
or TR SO 2 Group 2 Trading Program, then this natural person shall be the same natural person as the alternate designated representative, as defined in the respect ive program. Annual capacity factor means the ratio between the actual heat input to an EGU during a calendar year and the potential heat input to the EGU had it been operated for 8,760 hours during a calendar year at the base load rating. Also see capacit y factor. 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 ERCs held in the general account and, for a CO 2 Rate

- based Trading affect ed EGU's, the designated representative of the affected EGU is the authorized account representative. Automated data acquisition and handling system or DAHS means the component of the continuous emission monitoring system, or other emissions monitoring sys tem approved for use under this subpart, designed to interpret and convert individual output signals from pollutant concentration monitors, flow***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 418 of 447 monitors, diluent gas monitors, and other component parts of the monitoring system to produce a continuous reco rd of the measured parameters in the measurement units required by this subpart. Base load rating means the maximum amount of heat input (fuel) that an EGU can combust on a steady state basis, as determined by the physical design and characteristics of the EGU at ISO conditions. For a stationary combustion turbine , base load rating includes the heat input from duct burners. Baseline means the electricity use that would have occurred without implementation of a specific EE measure. Biomass means biologically based material that is living or dead (e.g., trees, crops, grasses, tree litter, roots) above and belowground, and available on a renewable or recurring basis. Materials that are biologically based include non

- fossilized, biodegradable organic material or iginating from modern or contemporarily grown plants, animals, or microorganisms (including plants, products, byproducts and residues from agriculture, forestry, and related activities and industries, as well as the non

- fossilized and biodegradable organic fractions of industrial and municipal wastes, including gases and liquids recovered from the decomposition of non

- fossilized and biodegradable organic material). Boiler means an enclosed fossil

- or other

- fuel

- fired combustion device used to produce heat a nd to transfer heat to***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 419 of 447 recirculating water, steam, or other medium. Business day means a day that does not fall on a weekend or a federal holiday. Capacity factor means, as used for the output based set

aside, the ratio of the net electrical energy produce d by a generating unit for the period of time considered to the electrical energy that could have been produced at continuous net summer capacity during the same period. 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 genera l 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 . CO 2 emissions limitation means the tonnage of CO 2 emissions authorized in a compliance period in a given year by the CO 2 allowances available for deduction for the affected EGU under §62.16535(a) for such compliance period.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 420 of 447
CO 2 Rate

- Based Trading Program mean s a multi

- state CO 2 air pollution control and emission reduction program established in accordance with this subpart and subpart UUUU of part 60 of this chapter (including such a program that is revised in a State Plan or state allowance distribution metho dology, or by the Administrator under subpart UUUU of part 60, as a means of controlling CO 2 emissions. Coal means all solid fuels classified as anthracite, bituminous, subbituminous, or lignite by the American Society of Testing and Materials in ASTM D38 8 (incorporated by reference, see §60.17), coal refuse, and petroleum coke. Synthetic fuels derived from coal for the purpose of creating useful heat, including but not limited to solvent

- refined coal, gasified coal (not meeting the definition of natural g as), coal

- oil mixtures, and coal

- water mixtures are included in this definition for the purposes of this subpart. Coal

- derived fuel means any fuel (whether in a solid, liquid, or gaseous state) produced by the mechanical, thermal, or chemical processing of coal. Combined cycle unit means an electric generating unit that

uses a stationary combustion turbine from which the heat from the turbine exhaust gases is recovered by a heat recovery steam generating unit to generate additional electricity. Combined heat and power unit or CHP unit, ( also known as***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 421 of 447 “cogeneration”) means an electric generating unit that use a
steam

- generating unit or stationary combustion turbine to simultaneously produce both electric (or mechanical) and useful thermal output from the s ame primary energy affected EGU. Common practice baseline or CPB means a baseline derived based on a default technology or condition that would have been in place at the time of implementation of an EE measure in the absence of the EE measure (for example, the standard or market

average or pre - existing equipment that a typical consumer/building owner would have continued to use or would have installed at the time of project implementation in a given circumstance, such as a given building type, EE program ty pe or delivery mechanism, and geographic region). Common stack means a single flue through which emissions from 2 or more units are exhausted. Compliance account means an Allowance Transfer and Compliance System account, established by the Administrator f or an affected EGU under this subpart, in which any ERC allocations to the affected EGUs at the affected EGU are recorded and in which are held any CO 2 allowances available for use for a compliance period in a given year in complying with the affected
EGU's CO 2 emission standard in accordance with §§62.16420 and 62.16535. Compliance period means the multi

- year periods starting***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 422 of 447 January 1 of the first cale ndar year of the period, except as provided in §62.16420(c)(3), and ending on December 31 of the last calendar year, inclusive: (1 ) Compliance Period 1 means the period of three calendar years from January 1 2022 to December 31, 2024. (2) Compliance Period 2 means the period of three calendar years from January 1, 2025 to December 31, 2027. (3) Compliance Period 3 means the period of two calendar years from January 1, 2028 to December 31, 2029. Continuous emission monitoring system or CEMS means the equipme nt 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 CO 2 emissions, stack gas volumet ric flow rate, stack gas moisture content, and
O 2 concentration (as applicable), in a manner consistent with part 75 of this chapter and §§62.xx30 through 62.xx35. 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; (2) A moisture monitoring system, as defined in***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 423 of 447 §75.11(b)(2) of this chapter and providing a permanent, continuous record of the stack gas moisture content, in percent
H 2 O; (3) A CO 2 monitoring system, consisting of a CO 2 pollutant concentration monitor (or an O 2 monitor plus suitable mathematical equat ions from which the CO 2 concentration is derived) and an automated data acquisition and handling system and providing a permanent, continuous record of CO 2 emissions, in percent CO 2 ; and (4) An O 2 monitoring system, consisting of an
O 2 concentration monito r and an automated data acquisition and handling system and providing a permanent, continuous record of
O 2 , in percent O 2 . Control area operator means an electric system or systems, bounded by interconnection metering and telemetry, capable of controlling generation to maintain its interchange schedule with other control areas and contributing to frequency regulation of the interconnection. Deemed savings means estimates of average annual electricity savings for a single unit of an installed demand

side EE measure that (a) has been developed from data sources (such as prior metering studies) and analytical methods widely considered acceptable for the measure and (b) is applicable to the situation and conditions in which the measure is***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 424 of 447 implemented. Individual parameters or calculation methods also can be deemed, including EUL values. Common sources of deemed savings values are previous evaluations and studies that involved actual measurements and analyses. Deemed savings values are applicable for specific dema nd

- side EE measures. A single deemed savings value may not be used for a program as a whole, nor for a multi

- measure project, because of the degree of variation in how systems are used in different building types or market segments. Demand

- side Energy Eff iciency means energy efficiency projects, programs or measures resulting in electricity savings.
Derate means a decrease in the available capacity of an electric generating unit, due to a a system or equipment modification or to discounting a portion of a generating units capacity for planning purposes. Designated representative means, for a CO 2 Rate

- based Trading affected EGU and each affected EGU at the affected EGU, the natural person who is authorized by the owners and operators of the affected EGU and all such affected EGUs at the affected EGU, in accordance with this subpart, to represent a nd legally bind each owner and operator in matters pertaining to the CO 2 Rate

- based Trading Program. If the CO 2 Rate

- based Trading affected EGU is also subject to the Acid Rain Program, TR
NO X Annual Trading Program, TR NO X Ozone Season Trading Program,***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 425 of 447
TR SO 2 Group 1 Trading Program, or TR SO 2 Group 2 Trading Program, then this natural person shall be the same natural person as the designated representative, as defined in the respective program. Design efficiency means the rated overall net efficiency (e.g., electric plus thermal output) on a higher heating value basis of the EGU at the base load rating and ISO conditions. Distillate oil means fuel oils that comply with the specifications for fuel oil numbers 1 and 2, as defined by the American Society of Testing and Materials in ASTM D396 (incorporated by reference, see §60.17); diesel fuel oil numbers 1 and 2, as defined by the American Society for Testing and Materials in ASTM D975 (incorporated by reference, see §60.17); kerosene, as defined by the American Society of Testing and Materials in ASTM D3699 (incorporated by reference, see §60.17); biodiesel as defined by the American Society of Testing and Materials in ASTM D6751 (incorporated by reference, see §60.17); or biodiesel blends as defined by the American Society of Testing and Materials in ASTM D7467 (incorporated by reference, see §60.17). Effective useful life or EUL means the duration over which electricity savings from an EE measure occur, reported in years. EUL values are typically speci fic to individual EE projects but also may be specified by EE program. Electricity savings means the savings that results from a***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 426 of 447 change in electricity use resulting from the implementation of
an EE measure. Eligibile resource means a resource that meets t he requirements of §62.16435. EM&V plan means a plan that meets the requirements of §62.16455. Emissions means air pollutants exhausted from an affected EGU or affected EGU into the atmosphere; emissions must be measured, recorded, and reported to the Admi nistrator 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 affected EGU or affected EGU is required to measure, record, and report such air pollutants in accordance with this subpart, in accordance with part 75 of this chapter. Eligible resource means a resource that meets the requirements of §62.16435 and has been registered with the EPA

administered ERC tracking system or an ERC tracking system approved in a state plan by the EPA . An eligible resource is not an affected EGU. ERC deduction or deduct ERCs means the permanent withdrawal of ERCs by the Administrator from a compliance account ( e.g. , in order to account for compliance with the applicable CO 2 em ission standard).***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 427 of 447 ERC held or hold ERCs means the ERCs treated as included in an Allowance Tracking and Compliance 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 trans ferred into the account by a correctly submitted, but not yet recorded, ERC transfer in accordance with this subpart; and (2) Have not been transferred out of the account by a correctly submitted, but not yet recorded, ERC transfer in accordance with this subpart. Essential generating characteristics means any characteristic that affects the eligibility of the qualifying energy generating resource for generating ERCs pursuant to this regulation, including the type of resource. Excess emissions means any ton of emissions from the affected EGUs at a affected EGU during a compliance period that exceeds the CO 2 emissions limitation for the affected EGU for such compliance period. Existing state program, requirement, or measure means, in the context of a state pl an, a regulation, requirement, program, or measure administered by a state, utility, or other entity that is currently established. This may include a regulation or other legal requirement that includes past, current, and future obligations, or current pro grams and measures that are in place***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 428 of 447 and are anticipated to be continued or expanded in the future, in accordance with established plans. An existing state program, requirement, or measure may have past, current, and future impacts on EGU CO 2 emissions.
Fa cility 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”, “sta tionary source”, or “source” as set forth and implemented in a title V operating permit program or any other program under the Clean Air Act. Final period means the period that begins on January 1, 2030 and continues thereafter. The final period is compris ed of final compliance periods, each of which is two calendar years (with a calendar year beginning on January 1 and ending on December 31). Final Compliance Period means a compliance period within the final period, each being two calendar years (with a calendar year beginning on January 1 and ending on December 31), and the first final compliance period beginning on January 1, 2030 and ending December 31, 2031.
Foss il fuel means natural gas, petroleum, coal, and any form of solid, liquid, or gaseous fuel derived from such material for the purpose of creating useful heat.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 429 of 447 Fossil

- fuel

- fired means, with regard to an affected EGU, combusting any amount of fossil fuel. Gaseous fuel means any fuel that is present as a gas at ISO conditions and includes, but is not limited to, natural gas, refinery fuel gas, process gas, coke

- oven gas, synthetic gas, and gasified coal. General account means an Allowance Management System account established under this subpart that is not a compliance
account.
Generator means a device that produces electricity. Gross electrical output means, for an affected EGU, 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 affected EGU and any on

- site emission controls).
GS

- ERC means an ERC issued to, but which may not be used for compliance b y, an affected EGU that is a stationary combustion turbine. Aside from this restriction on use for compliance, GS

- ERCs are subject to all other provisions of this subpart related to ERCs. Heat input means, for an affected EGU 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 affected***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 430 of 447 EGU 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 an affected EGU, the amount of heat input (in mmBtu) divided by affected EGU operating time (in hr) or, for an affected EGU and a specific fuel, the amount of heat input attributed to the fuel (in mmBtu) divided by the affected EGU operating time (in hr) during which the affected EGU combusts the fuel.
Heat rate mea ns, for an affected EGU, the affected EGU's maximum design heat input (in Btu/hr), divided by the product of 1,000,000 Btu/mmBtu and the affected EGU's maximum hourly load. Heat recovery steam generating unit (HRSG) means a unit in which hot exhaust gases from the combustion turbine engine are routed in order to extract heat from the gases and generate useful output. Heat recovery steam generating units can be used with or without duct burners. Indian country means “Indian country” as defined in 18
U.S.C. 1151. Integrated gasification combined cycle facility or IGCC facility means a combined cycle facility that is designed to***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 431 of 447 burn fuels containing 50 percent (by heat input) or more solid

derived fuel not meeting the definition of natural gas plus any integ rated equipment that provides electricity or useful thermal output to either the affected facility or auxiliary equipment. The Administrator may waive the 50 percent solid

- derived fuel requirement during periods of the gasification system construction, sta rtup and commissioning, shutdown, or repair. No solid fuel is directly burned in the unit during operation. Interim period means the period of eight calendar years from January 1, 2022 to December 31, 2029. The interim period is comprised of three complian ce periods, compliance period 1, compliance period 2, and compliance period 3. ISO conditions means 288 Kelvin (15 o C), 60 percent relative humidity and 101.3 kilopascals pressure. Liquid fuel means any fuel that is present as a liquid at ISO conditions and includes, but is not limited to, distillate oil and residual oil. M&V report means a report that meets the requirements of §62.16460. Maximum design heat input means, for an affected EGU, t he maximum amount of fuel per hour (in Btu/hr) that the affected EGU is capable of combusting on a steady state basis as of the initial installation of the affected EGU as specified by the manufacturer of the affected EGU.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 432 of 447 Mechanical output means the usefu l mechanical energy that is not used to operate the affected facility, generate electricity and/or thermal output, or to enhance the performance of the affected facility. Mechanical energy measured in horsepower hour should be converted into MWh by multipl ying it by 745.7 then dividing by 1,000,000. 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 un der 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 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.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 433 of 447 Natural gas means a fluid mixture of hydrocarbons (e.g., methane, ethane, or propane), composed of at least 70 percent methane by volume or that has a g ross calorific value between 35 and 41 megajoules (MJ) per dry standard cubic meter (950 and 1,100 Btu per dry standard cubic foot), that maintains a gaseous state under ISO conditions. In addition, natural gas contains 20.0 grains or less of total sulfur per 100 standard cubic feet. Finally, natural gas does not include the following gaseous fuels: landfill gas, digester gas, refinery gas, sour gas, blast furnace gas, coal

- derived gas, producer gas, coke oven gas, or any gaseous fuel produced in a process which might result in highly variable sulfur content or heating value.
Net

- electric output means the amount of gross generation the generator(s) produce (including, but not limited to, output from steam turbine(s), combustion turbine(s), and gas expander(s)), as measured at the generator terminals, less the electricity used to operate the plant (i.e., auxiliary loads); such uses include fuel handling equipment, pumps, fans, pollution control equipment, other electricity needs, and transformer loss es as measured at the transmission side of the step up transformer (e.g., the point of sale). Net energy output means: (1) The net electric or mechanical output from the affected facility, plus 100 percent of the useful thermal output measured***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 434 of 447 relative to SATP conditions that is not used to generate additional electric or mechanical output or to enhance the performance of the affected EGU (e.g., steam delivered to an industrial process for a heating application). (2) For combined heat and power facilities w here at least 20.0 percent of the total net energy output consists of electric or direct mechanical output and at least 20.0 percent of the total net energy output consists of useful thermal output on a
12

- operating month rolling average basis, the net ele ctric or mechanical output from the affected EGU divided by 0.95, plus 100 percent of the useful thermal output; (e.g., steam delivered to an industrial process for a heating application). Net Summer Capacity means the maximum output, commonly expressed in megawatts (MW), that generating equipment can supply to system load, as demonstrated by a multi

- hour test, at the time of summer peak demand (period of June 1 through September 30.) This output reflects a reduction in capacity due to electricity use for s tation service or auxiliaries. Operate or operation means, with regard to an affected EGU, to combust fuel. Operator means, for a CO 2 Rate

- based Trading affected EGU or an affected EGU at a affected EGU respectively, any person who operates, controls, or supervises an affected EGU at the affected EGU or the affected EGU and shall include, but not be***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 435 of 447 limited to, any holding company, util ity system, or plant manager of such affected EGU or affected EGU.
Owner means, for a CO 2 Rate

- based Trading affected EGU or an affected EGU at a affected EGU respectively, any of the following persons: (1) Any holder of any portion of the legal or equitab le title in an affected EGU at the affected EGU or the affected
EGU; (2) Any holder of a leasehold interest in an affected EGU at the affected EGU or the affected EGU, 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 affected EGU; and 3) Any purchaser of power from a affected EG U at the affected EGU or the affected EGU under a life

- of

- the

- unit, firm power contractual arrangement. Permitting authority means “permitting authority” as defined in §§70.2 and 71.2 of this chapter. Petroleum means crude oil or a fuel derived from crude oil, including, but not limited to, distillate and residual oil. Qualifying biomass means a biomass feedstock that is demonstrated to qualify as a method to control increases of CO 2 levels in the atmosphere.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 436 of 447 Random error means errors occurring by chance that may cause electricity savings values to be inconsistently overestimated or underestimated, and may result from a change in electricity use due to unaccounted

- for factors that affect electricity use. The magnitude of random error can be quantified base d on the variations observed across different units. 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 transmissio n), 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 ERCs, the moving of ERCs by the Admin istrator into, out of, or between Allowance Management System accounts, for purposes of allocation, transfer, or deduction. Reference method means any direct test method of sampling and analyzing for an air pollutant as specified in §75.22 of this chapter. Replacement , replace , or replaced means, with regard to an affected EGU, the demolishing of an affected EGU, or the permanent retirement and permanent disabling of an affected EGU, and the construction of another affected EGU (the replacement***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 437 of 447 affected EGU ) to be used instead of the demolished or retired affected EGU (the replaced affected EGU). Solid fuel means any fuel that has a definite shape and volume, has no tendency to flow or disperse under moderate stress, and is not liquid or gaseous at ISO conditions. This includes, but is not limited to, coal, biomass, and pulverized solid fuels. Solid waste i ncineration unit means a stationary, fossil

fuel

- fired boiler or stationary, fossil

- fuel

- fired combustion turbine that is a “solid waste incineration unit” as defined in section 129(g)(1) of the Clean Air Act. Systematic error means inaccuracies in the sam e direction, causing electricity savings values to be consistently either overestimated or underestimated, and may result from factors such as incorrect assumptions, a methodological issue, or a flawed reporting system. Standard ambient temperature and pre ssure (SATP) conditions means 298.15 Kelvin (25 o C, 77 o F)) and 100.0 kilopascals (14.504 psi, 0.987 atm) pressure. The enthalpy of water at SATP conditions is 50 Btu/lb. State agent means an entity acting on behalf of the state, with the legal authority o f the state
State measures means measures that the state adopts and implements as a matter of state law. Such measures are***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 438 of 447 enforceable only per state law, and are not included in and codified as part of the federally enforceable state plan. Stationary combustion turbine means all equipment, including but not limited to the turbine engine, the fuel, air, lubrication and exhaust gas systems, control systems (except emissions control equipment), heat recovery system, fuel compressor, heater, and /or pump, post

- combustion emissions control technology, and any ancillary components and sub

components comprising any simple cycle stationary combustion turbine, any combined cycle combustion turbine, and any combined heat and power combustion turbine bas ed system plus any integrated equipment that provides electricity or useful thermal output to the combustion turbine engine, heat recovery system or auxiliary equipment. Stationary means that the combustion turbine is not self

- propelled or intended to be p ropelled while performing its function. It may, however, be mounted on a vehicle for portability. If a stationary combustion turbine burns any solid fuel directly it is considered a steam generating unit. Steam generating unit means any furnace, boiler, or other device used for combusting fuel and producing steam (nuclear steam generators are not included) plus any integrated equipment that provides electricity or useful thermal output to the affected facility or auxiliary equipment.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 439 of 447 Submit or serve means t o 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) Prov ided 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. Transmission and distribution loss means the difference between the quantity of electricity that serves a load (measured at the busbar of the generator) and the actual electricity use at the final distribution location (measured at the on

- site meter). Transmission and distribution measures or T&D measures means EE measures intended to improve the efficiency of the electrical transmission and distribution system by decreasing electricity loses on the system. Unit operating day means, with regard to an affected EGU, a calendar day in which the affected EGU combusts any fuel. Unit operating hour or hour of unit operation means, with regard to an affected EGU, an hour in which the affected EGU combusts any fuel.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 440 of 447 Uprate means an increase in available electric generating unit power capacity due to a system or equipment modification. Useful thermal outp ut means the thermal energy made available for use in any heating application (e.g., steam delivered to an industrial process for a heating application, including thermal cooling applications) that is not used for electric generation, mechanical output at the affected EGU, to directly enhance the performance of the affected EGU (e.g., economizer output is not useful thermal output, but thermal energy used to reduce fuel moisture is considered useful thermal output), or to supply energy to a pollution contro l device at the affected EGU. Useful thermal output for affected EGU(s) with no condensate return (or other thermal energy input to the affected EGU(s)) or where measuring the energy in the condensate (or other thermal energy input to the affected EGU(s)) would not meaningfully impact the emission rate calculation is measured against the energy in the thermal output at SATP conditions. Affected EGU(s) with meaningful energy in the condensate return (or other thermal energy input to the affected EGU) must me asure the energy in the condensate and subtract that energy relative to SATP conditions from the measured thermal output. Utility power distribution system means the portion of an electricity grid owned or operated by a utility and dedicated to delivering electricity to customers.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 441 of 447 Valid data means quality

- assured data generated by continuous monitoring systems that are installed, operated, and maintained according to part 75 of this chapter. For CEMS, the initial certification requirements in §75.20 of thi s chapter and appendix A to part 75 of this chapter must be met before quality

- assured data are reported under this subpart; for on

going quality assurance, the daily, quarterly, and semiannual/annual test requirements in sections 2.1, 2.2, and 2.3 of appe ndix B to part 75 of this chapter must be met and the data validation criteria in sections 2.1.5, 2.2.3, and 2.3.2 of appendix B to part 75 of this chapter apply. For fuel flow meters, the initial certification requirements in section 2.1.5 of appendix D t o part 75 of this chapter must be met before quality

- assured data are reported under this subpart (except for qualifying commercial billing meters under section 2.1.4.2 of appendix D), and for on

- going quality assurance, the provisions in section 2.1.6 of appendix D to part 75 of this chapter apply (except for qualifying commercial billing meters). Verification report means a report that meets the requirements of § 6 2.16465. Waste to Energy or WTE means a process or unit (e.g., solid waste incineration uni t) that burns recovers energy from the biogenic fraction conversion or combustion of waste stream materials, such as municipal solid waste (which is considered a***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 442 of 447 qualifying biomass feedstock) , to generate electricity and/ or heat. **§ 6 2.16575 Measurements, abb**  **reviations, and acronyms.** The measurements, abbreviations, and acronyms used in this subpart are defined as follows:
ADR

- — alternated designated representative
Btu

— British thermal unit
CPP

— clean power plan
CO 2 — carbon dioxide
COI

— conflict of interest
CVR

— conservative voltage regulation
DR

- — designated representative
EE

— energy efficiency
EGU

- electric generating unit
EM&V

- - evaluation, measurement, and verification
GCV

- gross calorific value
GJ

- giga joule
H 2 O

— water hr

— hour
IGCC

— integrated gasification combined cycle kg

- — kilogram kW

— kilowatt electrical kWh

— kilowatt hour lb

— pound***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 443 of 447
M&V

– —measurement and verification
mmBtu

—million Btu
MWe

—megawatt electrical MWh

—megawatt hour
T&D

— transmission and distribution
O 2 — oxygen PSD

- prevention of significant deterioration
yr — year

**Table 1 to Subpart NNN of Part 62 —**  **CO 2**  **Emission Standards (Pounds**  **of CO 2**  **Per Net MWh)**

**Compliance Period Affected steam generating**  **unit or integrated gasification combined**  **cycle (IGCC) emission standards**  **Affected stationary combustion**  **turbine emission standard**  Compliance Period 1 (2022

- 2024) 1,671 877 Compliance Period 2 (2025

- 2027) 1,500 817 Compliance Period 3 (2028

- 2029) 1,380 784 Final Compliance Periods 1,305 771
**Table 2 to Subpart NNN of Part 62 —**  **Incremental Generation Factor for Emission Rate Credits (dimensionless)**  **Compliance Period Incremental Generation Factor**  Compliance Period 1 (2022

- 2024) .22 Compliance Period 2 (2025

- 2027) .32 Compliance Period 3 (2028

- 2029) .28 Final Compliance Periods .26***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 444 of 447

* * * * * **PART 78 --**  **APPEAL PROCEDURES** 6. The authority citation for Part 78 continues to read as follows: **Authority:** 42 U.S.C. 7401 et seq. 7. Section 78.1 .27 is amended as follow:

a. by revising paragraphs paragraph (a)(1 ) ; ) and b. by adding paragraphs (b)( 16 18 ) and (b)( 17). 19) to read as follows: **§ 78.1 Purpose and scope.**  (a)(1) This part shall govern appeals of any final decision of the Administrator under subparts MMM and NNN of part 62 of this chapter, p art 72, 73, 74, 75, 76, or 77 of this chapter, subparts AA through II of part 96 of this chapter or State regulations approved under § 5 1.123(o)(1) or (2) of this chapter, subparts AAA through III of part 96 of this chapter or State regulations approved un der § 5 1.124(o)(1) or (2) of this chapter, subparts AAAA through IIII of part 96 of this chapter or State regulations approved under § 5 1.123(aa)(1) or (2) of this chapter, part 97 of this chapter, or subpart RR of part 98 of this chapter ; provided that ma tters listed in § 7 8.3(d) and preliminary, procedural, or intermediate decisions, such as draft Acid Rain permits, may not be appealed. All references in paragraph (b) of this section and in § 7 8.3 to subparts AA***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 44 5 of 447 through II of part 96 of this chapter, subparts AAA through III of part 96 of this chapter, and subparts AAAA through IIII of part 96 of this chapter shall be read to include the comparable provisions in State regulations approved under § 5 1.123(o)(1) or (2) of this chapter, § 5 1.124(o)(1) or (2) of this chapter, and § 5 1.123(aa)(1) or (2) of this chapter, respectively.

* * * * * (b) * * * ( 16 18 ) Under subpart MMM of part 62 of this chapter, (i) The decision on allocation of CO 2 allowanc es under § 6 2.16240 of this chapter. (ii)The decision on allocation of CO 2 allowances from set

asides under § 6 2.16245 of this chapter. (iii) The decision on the transfer of CO 2 allowances under § 6 2.16330 of this chapter. (iv) The decision on the deductio n of CO 2 allowances under § 6 2.16340 of this chapter. (v) The correction of an error in an Allowance Tracking and Compliance System account under § 6 2.16355 of this chapter. (vi) The adjustment of information in a submission and the decision on the deducti on and transfer of CO 2 allowances based on the information as adjusted under § 6 2.16370 of this chapter. (vii) The finalization of compliance period emissions data, including retroactive adjustment based on audit.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 446 of 447 ( 17 19 ) Under subpart NNN of part 62 of this chapter, (i) The decision on emission rate credit issuance, adjustment , and revocation under § 6 2.16435 (ii) The decision on qualification status of eligible resources to receive emission reduction credits under § 6 2.16460. (iii) The decision on rev ocation of qualification status of an eligible resource under § 6 2.16440. (iv) The decision on Adjustments for error or misstatement, suspension of ERC issuance under § 6 2.16450. (v) The decision on accreditation of independent verifiers under § 62.16470. (vi) The decision on revocation of accreditation status under § 62.16480. (vii) The decision on the transfer of emission reduction credits under § 6 2.16530 of this chapter. (viii) The decision on the deduction of emission reduction credits under § 6 2. 16 535 1616535 of this chapter. (ix) The correction of an error in an Allowance Tracking and Compliance System account under § 6 2.16550 of this chapter. (x) The adjustment of information in a submission and the decision on the deduction and transfer of emissio n reduction credits based on the information as adjusted under § 6 2.16565 of this chapter.***E.O. 12866 Review

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– Do Not Cite, Quote or Release During Review*** Page 447 of 447 (xi) The finalization of compliance period emissions data, including retroactive adjustment based on audit.

* * * * *