(2) If the unit's SO2 emission rate and heat input are
monitored and reported for more than one entire control period, in
accordance with paragraph (c) of this section, and the unit does not
have add-on SO2 emission controls during any such control
periods, the average of the amounts of the unit's SO2
emission rate (in lb/mmBtu) for such control periods; or
    (3) If the unit's SO2 emission rate and heat input are
monitored and reported for more than one entire control period, in
accordance with paragraph (c) of this section, and the unit has add-on
SO2 emission controls during any such control periods, the
average of the amounts of the unit's SO2 emission rate (in
lb/mmBtu) for such control periods during which the unit has add-on
SO2 emission controls.
    (g) Review of TR opt-in application.
    (1) After the designated representative submits the complete TR
opt-in application, quarterly reports, and statement required in
paragraphs (a), (c), and (d) of this section and if the Administrator
determines that the designated representative shows that the unit meets
the requirements for a TR SO2 Group 2 opt-in unit in Sec.
97.640, the element certified in paragraph (a)(2)(iv) of this section,
and the monitoring and reporting requirements of paragraph (c) of this
section, the Administrator will issue a written approval of the TR opt-
in application for the unit. The written approval will state the unit's
baseline heat input and baseline SO2 emission rate. The
Administrator will thereafter establish a compliance account for the
source that includes the unit unless the source already has a
compliance account.
    (2) Notwithstanding paragraphs (a) through (f) of this section, if,
at any time before the TR opt-in application is approved under
paragraph (g)(1) of this section, the Administrator determines that the
unit cannot meet the requirements for a TR SO2 Group 2 opt-
in unit in Sec.  97.740, the element certified in paragraph (a)(2)(iv)
of this section, or the monitoring and reporting requirements in
paragraph (c) of this section, the Administrator will issue a written
disapproval of the TR opt-in application for the unit.
    (h) Date of entry into TR SO2 Group 2 Trading Program. A unit for
which a

TR opt-in application is approved under paragraph (g)(1) of this
section shall become a TR SO2 Group 2 opt-in unit, and a TR
SO2 Group 2 unit, effective as of the later of January 1,
2012 or January 1 of the first control period during which such
approval is issued.

Sec.  97.742  Withdrawal of TR SO2 Group 2 opt-in unit from TR SO2
Group 2 Trading Program.

    A TR SO2 Group 2 opt-in unit may withdraw from the TR
SO2 Group 2 Trading Program only if, in accordance with this
section, the designated representative of the unit submits a request to
withdraw the unit and the Administrator issues a written approval of
the request.
    (a) Requesting withdrawal. In order to withdraw the TR
SO2 Group 2 opt-in unit from the TR SO2 Group 2
Trading Program, the designated representative of the unit shall submit
to the Administrator a request to withdraw the unit effective as of
midnight of December 31 of a specified calendar year, which date must
be at least 4 years after December 31 of the year of the unit's entry
into the TR SO2 Group 2 Trading Program under Sec.
97.741(h). The request shall be in a format prescribed by the
Administrator and shall be submitted no later than 90 days before the
requested effective date of withdrawal.
    (b) Conditions for withdrawal. Before a TR SO2 Group 2
opt-in unit covered by the request to withdraw may withdraw from the TR
SO2 Group 2 Trading Program, the following conditions must
be met:
    (1) For the control period ending on the date on which the
withdrawal is to be effective, the source that includes the TR
SO2 Group 2 opt-in unit must meet the requirement to hold TR
SO2 Group 2 allowances under Sec. Sec.  97.724 and 97.725
and cannot have any excess emissions.
    (2) After the requirement under paragraph (b)(1) of this section is
met, the Administrator will deduct from the compliance account of the
source that includes the TR SO2 Group 2 opt-in unit TR
SO2 Group 2 allowances equal in amount to and allocated for
the same or a prior control period as any TR SO2 Group 2
allowances allocated to the TR SO2 Group 2 opt-in unit under
Sec.  97.744 for any control period after the date on which the
withdrawal is to be effective. If there are no other TR SO2
Group 2 units at the source, the Administrator will close the
compliance account, and the owners and operators of the TR
SO2 Group 2 opt-in unit may submit a TR SO2 Group
2 allowance transfer for any remaining TR SO2 Group 2
allowances to another Allowance Management System account in accordance
with Sec. Sec.  97.722 and 97.723.
    (c) Approving withdrawal. (1) After the requirements for withdrawal
under paragraphs (a) and (b) of this section are met (including
deduction of the full amount of TR SO2 Group 2 allowances
required), the Administrator will issue a written approval of the
request to withdraw, which will become effective as of midnight on
December 31 of the calendar year for which the withdrawal was
requested. The unit covered by the request shall continue to be a TR
SO2 Group 2 opt-in unit until the effective date of the
withdrawal and shall comply with all requirements under the TR
SO2 Group 2 Trading Program concerning any control periods
for which the unit is a TR SO2 Group 2 opt-in unit, even if
such requirements arise or must be complied with after the withdrawal
takes effect.
    (2) If the requirements for withdrawal under paragraphs (a) and (b)
of this section are not met, the Administrator will issue a written
disapproval of the request to withdraw. The unit covered by the request
shall continue to be a TR SO2 Group 2 opt-in unit.
    (d) Reapplication upon failure to meet conditions of withdrawal. If
the Administrator disapproves the request to withdraw, the designated
representative of the unit may submit another request to withdraw in
accordance with paragraphs (a) and (b) of this section.
    (e) Ability to reapply to the TR SO2 Group 2 Trading Program. Once
a TR SO2 Group 2 opt-in unit withdraws from the TR
SO2 Group 2 Trading Program, the designated representative
may not submit another opt-in application under Sec.  97.741 for such
unit before the date that is 4 years after the date on which the
withdrawal became effective.

Sec.  97.743  Change in regulatory status.

    (a) Notification. If a TR SO2 Group 2 opt-in unit
becomes a TR SO2 Group 2 unit under Sec.  97.704, then the
designated representative of the unit shall notify the Administrator in
writing of such change in the TR SO2 Group 2 opt-in unit's
regulatory status, within 30 days of such change.
    (b) Administrator's actions. (1) If a TR SO2 Group 2
opt-in unit becomes a TR SO2 Group 2 unit under Sec.
97.604, the Administrator will deduct, from the compliance account of
the source that includes the TR SO2 Group 2 opt-in unit that
becomes a TR SO2 Group 2 unit under Sec.  97.704, TR
SO2 Group 2 allowances equal in amount to and allocated for
the same or a prior control period as:
    (i) Any TR SO2 Group 2 allowances allocated to the TR
SO2 Group 2 opt-in unit under Sec.  97.744 for any control
period starting after the date on which the TR SO2 Group 2
opt-in unit becomes a TR SO2 Group 2 unit under Sec.
97.704; and
    (ii) If the date on which the TR SO2 Group 2 opt-in unit
becomes a TR SO2 Group 2 unit under Sec.  97.704 is not
December 31, the TR SO2 Group 2 allowances allocated to the
TR SO2 Group 2 opt-in unit under Sec.  97.744 for the
control period that includes the date on which the TR SO2
Group 2 opt-in unit becomes a TR SO2 Group 2 unit under
Sec.  97.704--
    (A) Multiplied by the ratio of the number of days, in the control
period, starting with the date on which the TR SO2 Group 2
opt-in unit becomes a TR SO2 Group 2 unit under Sec.
97.704, divided by the total number of days in the control period, and
    (B) Rounded to the nearest allowance.
    (2) The designated representative shall ensure that the compliance
account of the source that includes the TR SO2 Group 2 opt-
in unit that becomes a TR SO2 Group 2 unit under Sec.
97.704 contains the TR SO2 Group 2 allowances necessary for
completion of the deduction under paragraph (b)(1) of this section.
    (3)(i) For control periods starting after the date on which the TR
SO2 Group 2 opt-in unit becomes a TR SO2 Group 2
unit under Sec.  97.704, the TR SO2 Group 2 opt-in unit will
be allocated TR SO2 Group 2 allowances in accordance with
Sec.  97.712.
    (ii) If the date on which the TR SO2 Group 2 opt-in unit
becomes a TR SO2 Group 2 unit under Sec.  97.704 is not
December 31, the following amount of TR SO2 Group 2
allowances will be allocated to the TR SO2 Group 2 opt-in
unit (as a TR SO2 Group 2 unit) in accordance with Sec.
97.712 for the control period that includes the date on which the TR
SO2 Group 2 opt-in unit becomes a TR SO2 Group 2
unit under Sec.  97.704:
    (A) The amount of TR SO2 Group 2 allowances otherwise
allocated to the TR SO2 Group 2 opt-in unit (as a TR
SO2 Group 2 unit) in accordance with Sec.  97.712 for the
control period;
    (B) Multiplied by the ratio of the number of days, in the control
period, starting with the date on which the TR SO2 Group 2
opt-in unit becomes a TR SO2 Group 2 unit under Sec.
97.704, divided by the total number of days in the control period; and
    (C) Rounded to the nearest allowance.

Sec.  97.744  TR SO2 Group 2 allowance allocations to TR SO2 Group 2
opt-in units.

    (a) Timing requirements. (1) When the TR opt-in application is
approved for a unit under Sec.  97.741(g), the Administrator will issue
TR SO2 Group 2 allowances and allocate them to the unit for
the control period in which the unit enters the TR SO2 Group
2 Trading Program under Sec.  97.741(h), in accordance with paragraph
(b) of this section.
    (2) By no later than October 31 of the control period after the
control period in which a TR SO2 Group 2 opt-in unit enters
the TR SO2 Group 2 Trading Program under Sec.  97.741(h) and
October 31 of each year thereafter, the Administrator will issue TR
SO2 Group 2 allowances and allocate them to the TR
SO2 Group 2 opt-in unit for the control period that includes
such allocation deadline and in which the unit is a TR SO2
Group 2 opt-in unit, in accordance with paragraph (b) of this section.
    (b) Calculation of allocation. For each control period for which a
TR SO2 Group 2 opt-in unit is to be allocated TR
SO2 Group 2 allowances, the Administrator will issue and
allocate TR SO2 Group 2 allowances in accordance with the
following procedures:
    (1) The heat input (in mmBtu) used for calculating the TR
SO2 Group 2 allowance allocation will be the lesser of:
    (i) The TR SO2 Group 2 opt-in unit's baseline heat input
determined under Sec.  97.741(g); or
    (ii) The TR SO2 Group 2 opt-in unit's heat input, as
determined in accordance with Sec. Sec.  97.730 through 97.735, for the
immediately prior control period, except when the allocation is being
calculated for the control period in which the TR SO2 Group
2 opt-in unit enters the TR SO2 Group 2 Trading Program
under Sec.  97.741(h).
    (2) The SO2 emission rate (in lb/mmBtu) used for
calculating TR SO2 Group 2 allowance allocations will be the
lesser of:
    (i) The TR SO2 Group 2 opt-in unit's baseline
SO2 emission rate (in lb/mmBtu) determined under Sec.
97.741(g) and multiplied by 70 percent; or
    (ii) The most stringent State or Federal SO2 emissions
limitation applicable to the TR SO2 Group 2 opt-in unit at
any time during the control period for which TR SO2 Group 2
allowances are to be allocated.
    (3) The Administrator will issue TR SO2 Group 2
allowances and allocate them to the TR SO2 Group 2 opt-in
unit in an amount equaling the heat input under paragraph (b)(1) of
this section, multiplied by the SO2 emission rate under
paragraph (b)(2) of this section, divided by 2,000 lb/ton, and rounded
to the nearest allowance.
    (c) Recordation. (1) The Administrator will record, in the
compliance account of the source that includes the TR SO2
Group 2 opt-in unit, the TR SO2 Group 2 allowances allocated
to the TR SO2 Group 2 opt-in unit under paragraph (a)(1) of
this section.
    (2) By December 1 of the control period after the control period in
which a TR SO2 Group 2 opt-in unit enters the TR
SO2 Group 2 Trading Program under Sec.  97.741(h) and
December 1 of each year thereafter, the Administrator will record, in
the compliance account of the source that includes the TR
SO2 Group 2 opt-in unit, the TR SO2 Group 2
allowances allocated to the TR SO2 Group 2 opt-in unit under
paragraph (a)(2) of this section.

[FR Doc. 2010-17007 Filed 7-30-10; 8:45 am]
BILLING CODE 6560-50-P