(2) Any allowance deduction required under paragraph (d)(1) of this
section shall not affect the liability of the owners and operators of
the CAIR NOX source or the CAIR NOX units at the
source for any fine, penalty, or assessment, or their obligation to
comply with any other remedy, for the same violations, as ordered under
the Clean Air Act or applicable State law.
    (e) Recordation of deductions. The Administrator will record in the
appropriate compliance account all deductions from such an account
under paragraphs (b) and (d) of this section and subpart II.
    (f) Administrator's action on submissions. (1) The Administrator
may review and conduct independent audits concerning any submission
under the CAIR NOX Annual Trading Program and make
appropriate adjustments of the information in the submissions.
    (2) The Administrator may deduct CAIR NOX allowances
from or transfer CAIR NOX allowances to a source's
compliance account based on the information in the submissions, as
adjusted under paragraph (f)(1) of this section, and record such
deductions and transfers.

Sec.  97.155  Banking.

    (a) CAIR NOX allowances may be banked for future use or
transfer in a compliance account or a general account in accordance
with paragraph (b) of this section.
    (b) Any CAIR NOX allowance that is held in a compliance
account or a general account will remain in such account unless and
until the CAIR NOX allowance is deducted or transferred
under Sec.  97.142, Sec.  97.154, Sec.  97.156, or subpart GG or II of
this part.

Sec.  97.156  Account error.

    The Administrator may, at his or her sole discretion and on his or
her own motion, correct any error in any CAIR NOX Allowance
Tracking System account. Within 10 business days of making such
correction, the Administrator will notify the CAIR authorized account
representative for the account.

Sec.  97.157  Closing of general accounts.

    (a) The CAIR authorized account representative of a general account
may submit to the Administrator a request to close the account, which
shall include a correctly submitted allowance transfer under Sec. Sec.
97.160 and 97.161 for any CAIR NOX allowances in the account
to one or more other CAIR NOX Allowance Tracking System
accounts.
    (b) If a general account has no allowance transfers in or out of
the account for a 12-month period or longer and does not contain any
CAIR NOX allowances, the Administrator may notify the CAIR
authorized account representative for the account that the account will
be closed following 20 business days after the notice is sent. The
account will be closed after the 20-day period unless, before the end
of the 20-day period, the Administrator receives a correctly submitted
transfer of CAIR NOX allowances into the account under
Sec. Sec.  97.160 and 97.161 or a statement submitted by the CAIR
authorized account representative demonstrating to the satisfaction of
the Administrator good cause as to why the account should not be
closed.

Subpart GG--CAIR NOX Allowance Transfers

Sec.  97.160  Submission of CAIR NOX allowance transfers.

    A CAIR authorized account representative seeking recordation of a
CAIR NOX allowance transfer shall submit the transfer to the
Administrator. To be considered correctly submitted, the CAIR
NOX allowance transfer shall include the following elements,
in a format specified by the Administrator:
    (a) The account numbers for both the transferor and transferee
accounts;
    (b) The serial number of each CAIR NOX allowance that is
in the transferor account and is to be transferred; and
    (c) The name and signature of the CAIR authorized account
representative of the transferor account and the date signed.

Sec.  97.161  EPA recordation.

    (a) Within 5 business days (except as provided in paragraph (b) of
this section) of receiving a CAIR NOX allowance transfer,
the Administrator will record a CAIR NOX allowance transfer
by moving each CAIR NOX allowance from the transferor
account to the transferee account as specified by the request, provided
that:
    (1) The transfer is correctly submitted under Sec.  97.160; and
    (2) The transferor account includes each CAIR NOX
allowance identified by serial number in the transfer.
    (b) A CAIR NOX allowance transfer that is submitted for
recordation after the allowance transfer deadline for a control period
and that includes any CAIR NOX allowances allocated for any
control period before such allowance transfer deadline will not be
recorded until after the Administrator completes the deductions under
Sec.  97.154 for the control period immediately before such allowance
transfer deadline.
    (c) Where a CAIR NOX allowance transfer submitted for
recordation fails to meet the requirements of paragraph (a) of this
section, the Administrator will not record such transfer.

Sec.  97.162  Notification.

    (a) Notification of recordation. Within 5 business days of
recordation of a CAIR NOX allowance transfer under Sec.
97.161, the Administrator will notify the CAIR authorized account
representatives of both the transferor and transferee accounts.
    (b) Notification of non-recordation. Within 10 business days of
receipt of a CAIR NOX allowance transfer that fails to meet
the requirements of Sec.  97.161(a), the Administrator will notify the
CAIR authorized account representatives of both accounts subject to the
transfer of:
    (1) A decision not to record the transfer, and
    (2) The reasons for such non-recordation.
    (c) Nothing in this section shall preclude the submission of a CAIR
NOX allowance transfer for recordation following
notification of non-recordation.

Subpart HH--Monitoring and Reporting

Sec.  97.170  General requirements.

    The owners and operators, and to the extent applicable, the CAIR
designated representative, of a CAIR NOX unit, shall comply
with the monitoring, recordkeeping, and reporting requirements as
provided in this subpart and in subpart H of part 75 of this chapter.
For purposes of complying with such requirements, the definitions in
Sec.  97.102 and in Sec.  72.2 of this chapter shall apply, and the
terms ``affected unit,'' ``designated representative,'' and
``continuous emission monitoring system'' or ``CEMS'') in part 75 of
this chapter shall be deemed to refer to the terms ``CAIR
NOX unit,`` ``CAIR designated representative,'' and
``continuous emission monitoring system'' (or ``CEMS'') respectively,
as defined in Sec.  97.102. The owner or operator of a unit that is not
a CAIR NOX unit but that is monitored under Sec.
75.72(b)(2)(ii) of this chapter shall comply with the same monitoring,
recordkeeping, and reporting requirements as a CAIR NOX
unit.
    (a) Requirements for installation, certification, and data
accounting. The owner or operator of each CAIR NOX unit
shall:
    (1) Install all monitoring systems required under this subpart for
monitoring NOX mass emissions and individual unit heat input
(including all systems required to monitor NOX emission
rate, NOX concentration, stack gas moisture content, stack
gas flow rate, CO2 or O2 concentration, and fuel
flow rate, as applicable, in accordance with (Sec. Sec.  75.71 and
75.72 of this chapter);
    (2) Successfully complete all certification tests required under
Sec.  97.171 and meet all other requirements of this subpart and part
75 of this chapter applicable to the monitoring systems under paragraph
(a)(1) of this section; and
    (3) Record, report, and quality-assure the data from the monitoring
systems under paragraph (a)(1) of this section.
    (b) Compliance deadlines. Except as provided in paragraph (e) of
this section, the owner or operator shall meet the monitoring system
certification and other requirements of paragraphs (a)(1) and (2) of
this section on or before the following dates. The owner or operator
shall record, report, and quality-assure the data from the monitoring
systems under paragraph (a)(1) of this section on and after the
following dates.
    (1) For the owner or operator of a CAIR NOX unit that
commences commercial operation before July 1, 2007, by January 1, 2008.
    (2) For the owner or operator of a CAIR NOX unit that
commences commercial operation on or after July 1, 2007, by the later
of the following dates:
    (i) January 1, 2008; or
    (ii) 90 unit operating days or 180 calendar days, whichever occurs
first, after the date on which the unit commences commercial operation.
    (3) For the owner or operator of a CAIR NOX unit for
which construction of a new stack or flue or installation of add-on
NOX emission controls is completed after the applicable
deadline

under paragraph (b)(1), (2), (4), or (5) of this section, by 90 unit
operating days or 180 calendar days, whichever occurs first, after the
date on which emissions first exit to the atmosphere through the new
stack or flue or add-on NOX emissions controls.
    (4) Notwithstanding the dates in paragraphs (b)(1) and (2) of this
section, for the owner or operator of a unit for which a CAIR opt-in
permit application is submitted and not withdrawn and a CAIR opt-in
permit is not yet issued or denied under subpart II of this part, by
the date specified in Sec.  97.184(b).
    (5) Notwithstanding the dates in paragraphs (b)(1) and (2) of this
section, for the owner or operator of a CAIR NOX opt-in unit
under subpart II of this part, by the date on which the CAIR
NOX opt-in unit enters the CAIR NOX Annual
Trading Program as provided in Sec.  97.184(g).
    (c) Reporting data. The owner or operator of a CAIR NOX
unit that does not meet the applicable compliance date set forth in
paragraph (b) of this section for any monitoring system under paragraph
(a)(1) of this section shall, for each such monitoring system,
determine, record, and report maximum potential (or, as appropriate,
minimum potential) values for NOX concentration,
NOX emission rate, stack gas flow rate, stack gas moisture
content, fuel flow rate, and any other parameters required to determine
NOX mass emissions and heat input in accordance with Sec.
75.31(b)(2) or (c)(3) of this chapter, section 2.4 of appendix D to
part 75 of this chapter, or section 2.5 of appendix E to part 75 of
this chapter, as applicable.
    (d) Prohibitions. (1) No owner or operator of a CAIR NOX
unit shall use any alternative monitoring system, alternative reference
method, or any other alternative to any requirement of this subpart
without having obtained prior written approval in accordance with Sec.
97.175.
    (2) No owner or operator of a CAIR NOX unit shall
operate the unit so as to discharge, or allow to be discharged,
NOX emissions to the atmosphere without accounting for all
such emissions in accordance with the applicable provisions of this
subpart and part 75 of this chapter.
    (3) No owner or operator of a CAIR NOX unit shall
disrupt the continuous emission monitoring system, any portion thereof,
or any other approved emission monitoring method, and thereby avoid
monitoring and recording NOX mass emissions discharged into
the atmosphere or heat input, except for periods of recertification or
periods when calibration, quality assurance testing, or maintenance is
performed in accordance with the applicable provisions of this subpart
and part 75 of this chapter.
    (4) No owner or operator of a CAIR NOX unit shall retire
or permanently discontinue use of the continuous emission monitoring
system, any component thereof, or any other approved monitoring system
under this subpart, except under any one of the following
circumstances:
    (i) During the period that the unit is covered by an exemption
under Sec.  97.105 that is in effect;
    (ii) The owner or operator is monitoring emissions from the unit
with another certified monitoring system approved, in accordance with
the applicable provisions of this subpart and part 75 of this chapter,
by the Administrator for use at that unit that provides emission data
for the same pollutant or parameter as the retired or discontinued
monitoring system; or
    (iii) The CAIR designated representative submits notification of
the date of certification testing of a replacement monitoring system
for the retired or discontinued monitoring system in accordance with
Sec.  97.171(d)(3)(i).
    (e) Long-term cold storage. The owner or operator of a CAIR
NOX unit is subject to the applicable provisions of part 75
of this chapter concerning units in long-term cold storage.

Sec.  97.171  Initial certification and recertification procedures.

    (a) The owner or operator of a CAIR NOX unit shall be
exempt from the initial certification requirements of this section for
a monitoring system under Sec.  97.170(a)(1) if the following
conditions are met:
    (1) The monitoring system has been previously certified in
accordance with part 75 of this chapter; and
    (2) The applicable quality-assurance and quality-control
requirements of Sec.  75.21 of this chapter and appendix B, appendix D,
and appendix E to part 75 of this chapter are fully met for the
certified monitoring system described in paragraph (a)(1) of this
section.
    (b) The recertification provisions of this section shall apply to a
monitoring system under Sec.  97.170(a)(1) exempt from initial
certification requirements under paragraph (a) of this section.
    (c) If the Administrator has previously approved a petition under
Sec.  75.17(a) or (b) of this chapter for apportioning the
NOX emission rate measured in a common stack or a petition
under Sec.  75.66 of this chapter for an alternative to a requirement
in Sec.  75.12 or Sec.  75.17 of this chapter, the CAIR designated
representative shall resubmit the petition to the Administrator under
Sec.  97.175 to determine whether the approval applies under the CAIR
NOX Annual Trading Program.
    (d) Except as provided in paragraph (a) of this section, the owner
or operator of a CAIR NOX unit shall comply with the
following initial certification and recertification procedures for a
continuous monitoring system (i.e., a continuous emission monitoring
system and an excepted monitoring system under appendices D and E to
part 75 of this chapter) under Sec.  97.170(a)(1). The owner or
operator of a unit that qualifies to use the low mass emissions
excepted monitoring methodology under Sec.  75.19 of this chapter or
that qualifies to use an alternative monitoring system under subpart E
of part 75 of this chapter shall comply with the procedures in
paragraph (e) or (f) of this section respectively.
    (1) Requirements for initial certification. The owner or operator
shall ensure that each continuous monitoring system under Sec.
97.170(a)(1) (including the automated data acquisition and handling
system) successfully completes all of the initial certification testing
required under Sec.  75.20 of this chapter by the applicable deadline
in Sec.  97.170(b). In addition, whenever the owner or operator
installs a monitoring system to meet the requirements of this subpart
in a location where no such monitoring system was previously installed,
initial certification in accordance with Sec.  75.20 of this chapter is
required.
    (2) Requirements for recertification. Whenever the owner or
operator makes a replacement, modification, or change in any certified
continuous emission monitoring system under Sec.  97.170(a)(1) that may
significantly affect the ability of the system to accurately measure or
record NOX mass emissions or heat input rate or to meet the
quality-assurance and quality-control requirements of Sec.  75.21 of
this chapter or appendix B to part 75 of this chapter, the owner or
operator shall recertify the monitoring system in accordance with Sec.
75.20(b) of this chapter. Furthermore, whenever the owner or operator
makes a replacement, modification, or change to the flue gas handling
system or the unit's operation that may significantly change the stack
flow or concentration profile, the owner or operator shall recertify
each continuous emission monitoring system whose accuracy is
potentially affected by the change, in accordance with Sec.  75.20(b)
of this chapter. Examples of changes to a continuous emission
monitoring system that require recertification include

replacement of the analyzer, complete replacement of an existing
continuous emission monitoring system, or change in location or
orientation of the sampling probe or site. Any fuel flowmeter system,
and any excepted NOX monitoring system under appendix E to
part 75 of this chapter, under Sec.  97.170(a)(1) are subject to the
recertification requirements in Sec.  75.20(g)(6) of this chapter.
    (3) Approval process for initial certification and recertification.
Paragraphs (d)(3)(i) through (iv) of this section apply to both initial
certification and recertification of a continuous monitoring system
under Sec.  97.170(a)(1). For recertifications, replace the words
``certification'' and ``initial certification'' with the word
``recertification'', replace the word ``certified'' with the word
``recertified'', and follow the procedures in Sec. Sec.  75.20(b)(5)
and (g)(7) of this chapter in lieu of the procedures in paragraph
(d)(3)(v) of this section.
    (i) Notification of certification. The CAIR designated
representative shall submit to the appropriate EPA Regional Office and
the Administrator written notice of the dates of certification testing,
in accordance with Sec.  97.173.
    (ii) Certification application. The CAIR designated representative
shall submit to the Administrator a certification application for each
monitoring system. A complete certification application shall include
the information specified in Sec.  75.63 of this chapter.
    (iii) Provisional certification date. The provisional certification
date for a monitoring system shall be determined in accordance with
Sec.  75.20(a)(3) of this chapter. A provisionally certified monitoring
system may be used under the CAIR NOX Annual Trading Program
for a period not to exceed 120 days after receipt by the Administrator
of the complete certification application for the monitoring system
under paragraph (d)(3)(ii) of this section. Data measured and recorded
by the provisionally certified monitoring system, in accordance with
the requirements of part 75 of this chapter, will be considered valid
quality-assured data (retroactive to the date and time of provisional
certification), provided that the Administrator does not invalidate the
provisional certification by issuing a notice of disapproval within 120
days of the date of receipt of the complete certification application
by the Administrator.
    (iv) Certification application approval process. The Administrator
will issue a written notice of approval or disapproval of the
certification application to the owner or operator within 120 days of
receipt of the complete certification application under paragraph
(d)(3)(ii) of this section. In the event the Administrator does not
issue such a notice within such 120-day period, each monitoring system
that meets the applicable performance requirements of part 75 of this
chapter and is included in the certification application will be deemed
certified for use under the CAIR NOX Annual Trading Program.
    (A) Approval notice. If the certification application is complete
and shows that each monitoring system meets the applicable performance
requirements of part 75 of this chapter, then the Administrator will
issue a written notice of approval of the certification application
within 120 days of receipt.
    (B) Incomplete application notice. If the certification application
is not complete, then the Administrator will issue a written notice of
incompleteness that sets a reasonable date by which the CAIR designated
representative must submit the additional information required to
complete the certification application. If the CAIR designated
representative does not comply with the notice of incompleteness by the
specified date, then the Administrator may issue a notice of
disapproval under paragraph (d)(3)(iv)(C) of this section. The 120-day
review period shall not begin before receipt of a complete
certification application.
    (C) Disapproval notice. If the certification application shows that
any monitoring system does not meet the performance requirements of
part 75 of this chapter or if the certification application is
incomplete and the requirement for disapproval under paragraph
(d)(3)(iv)(B) of this section is met, then the Administrator will issue
a written notice of disapproval of the certification application. Upon
issuance of such notice of disapproval, the provisional certification
is invalidated by the Administrator and the data measured and recorded
by each uncertified monitoring system shall not be considered valid
quality-assured data beginning with the date and hour of provisional
certification (as defined under Sec.  75.20(a)(3) of this chapter). The
owner or operator shall follow the procedures for loss of certification
in paragraph (d)(3)(v) of this section for each monitoring system that
is disapproved for initial certification.
    (D) Audit decertification. The Administrator may issue a notice of
disapproval of the certification status of a monitor in accordance with
Sec.  97.172(b).
    (v) Procedures for loss of certification. If the Administrator
issues a notice of disapproval of a certification application under
paragraph (d)(3)(iv)(C) of this section or a notice of disapproval of
certification status under paragraph (d)(3)(iv)(D) of this section,
then:
    (A) The owner or operator shall substitute the following values,
for each disapproved monitoring system, for each hour of unit operation
during the period of invalid data specified under Sec.
75.20(a)(4)(iii), Sec.  75.20(g)(7), or Sec.  75.21(e) of this chapter
and continuing until the applicable date and hour specified under Sec.
75.20(a)(5)(i) or (g)(7) of this chapter:
    (1) For a disapproved NOX emission rate (i.e.,,
NOX-diluent) system, the maximum potential NOX
emission rate, as defined in Sec.  72.2 of this chapter.
    (2) For a disapproved NOX pollutant concentration
monitor and disapproved flow monitor, respectively, the maximum
potential concentration of NOX and the maximum potential
flow rate, as defined in sections <IP_ADDRESS> and <IP_ADDRESS> of appendix A to
part 75 of this chapter.
    (3) For a disapproved moisture monitoring system and disapproved
diluent gas monitoring system, respectively, the minimum potential
moisture percentage and either the maximum potential CO2
concentration or the minimum potential O2 concentration (as
applicable), as defined in sections 2.1.5, <IP_ADDRESS>, and <IP_ADDRESS> of
appendix A to part 75 of this chapter.
    (4) For a disapproved fuel flowmeter system, the maximum potential
fuel flow rate, as defined in section <IP_ADDRESS> of appendix D to part 75
of this chapter.
    (5) For a disapproved excepted NOX monitoring system
under appendix E to part 75 of this chapter, the fuel-specific maximum
potential NOX emission rate, as defined in Sec.  72.2 of
this chapter.
    (B) The CAIR designated representative shall submit a notification
of certification retest dates and a new certification application in
accordance with paragraphs (d)(3)(i) and (ii) of this section.
    (C) The owner or operator shall repeat all certification tests or
other requirements that were failed by the monitoring system, as
indicated in the Administrator's notice of disapproval, no later than
30 unit operating days after the date of issuance of the notice of
disapproval.
    (e) Initial certification and recertification procedures for units
using the low mass emission excepted methodology under Sec.  75.19 of
this chapter. The owner or operator of a unit qualified to use the low
mass emissions

(LME) excepted methodology under Sec.  75.19 of this chapter shall meet
the applicable certification and recertification requirements in
Sec. Sec.  75.19(a)(2) and 75.20(h) of this chapter. If the owner or
operator of such a unit elects to certify a fuel flowmeter system for
heat input determination, the owner or operator shall also meet the
certification and recertification requirements in Sec.  75.20(g) of
this chapter.
    (f) Certification/recertification procedures for alternative
monitoring systems. The CAIR designated representative of each unit for
which the owner or operator intends to use an alternative monitoring
system approved by the Administrator under subpart E of part 75 of this
chapter shall comply with the applicable notification and application
procedures of Sec.  75.20(f) of this chapter.

Sec.  97.172  Out of control periods.

    (a) Whenever any monitoring system fails to meet the quality-
assurance and quality-control requirements or data validation
requirements of part 75 of this chapter, data shall be substituted
using the applicable missing data procedures in subpart D or subpart H
of, or appendix D or appendix E to, part 75 of this chapter.
    (b) Audit decertification. Whenever both an audit of a monitoring
system and a review of the initial certification or recertification
application reveal that any monitoring system should not have been
certified or recertified because it did not meet a particular
performance specification or other requirement under Sec.  97.171 or
the applicable provisions of part 75 of this chapter, both at the time
of the initial certification or recertification application submission
and at the time of the audit, the Administrator will issue a notice of
disapproval of the certification status of such monitoring system. For
the purposes of this paragraph, an audit shall be either a field audit
or an audit of any information submitted to the permitting authority or
the Administrator. By issuing the notice of disapproval, the
Administrator revokes prospectively the certification status of the
monitoring system. The data measured and recorded by the monitoring
system shall not be considered valid quality-assured data from the date
of issuance of the notification of the revoked certification status
until the date and time that the owner or operator completes
subsequently approved initial certification or recertification tests
for the monitoring system. The owner or operator shall follow the
applicable initial certification or recertification procedures in Sec.
97.171 for each disapproved monitoring system.

Sec.  97.173  Notifications.

    The CAIR designated representative for a CAIR NOX unit
shall submit written notice to the Administrator in accordance with
Sec.  75.61 of this chapter.

Sec.  97.174  Recordkeeping and reporting.

    (a) General provisions. The CAIR designated representative shall
comply with all recordkeeping and reporting requirements in this
section, the applicable recordkeeping and reporting requirements under
Sec.  75.73 of this chapter, and the requirements of Sec.
97.110(e)(1).
    (b) Monitoring plans. The owner or operator of a CAIR
NOX unit shall comply with requirements of Sec.  75.73(c)
and (e) of this chapter and, for a unit for which a CAIR opt-in permit
application is submitted and not withdrawn and a CAIR opt-in permit is
not yet issued or denied under subpart II of this part, Sec. Sec.
97.183 and 97.184(a).
    (c) Certification applications. The CAIR designated representative
shall submit an application to the Administrator within 45 days after
completing all initial certification or recertification tests required
under Sec.  97.171, including the information required under Sec.
75.63 of this chapter.
    (d) Quarterly reports. The CAIR designated representative shall
submit quarterly reports, as follows:
    (1) The CAIR designated representative shall report the
NOX mass emissions data and heat input data for the CAIR
NOX unit, in an electronic quarterly report in a format
prescribed by the Administrator, for each calendar quarter beginning
with:
    (i) For a unit that commences commercial operation before July 1,
2007, the calendar quarter covering January 1, 2008 through March 31,
2008;
    (ii) For a unit that commences commercial operation on or after
July 1, 2007, the calendar quarter corresponding to the earlier of the
date of provisional certification or the applicable deadline for
initial certification under Sec.  97.170(b), unless that quarter is the
third or fourth quarter of 2007, in which case reporting shall commence
in the quarter covering January 1, 2008 through March 31, 2008;
    (iii) Notwithstanding paragraphs (d)(1)(i) and (ii) of this
section, for a unit for which a CAIR opt-in permit application is
submitted and not withdrawn and a CAIR opt-in permit is not yet issued
or denied under subpart II of this part, the calendar quarter
corresponding to the date specified in Sec.  97.184(b); and
    (iv) Notwithstanding paragraphs (d)(1)(i) and (ii) of this section,
for a CAIR NOX opt-in unit under subpart II of this part,
the calendar quarter corresponding to the date on which the CAIR
NOX opt-in unit enters the CAIR NOX Annual
Trading Program as provided in Sec.  97.184(g).
    (2) The CAIR designated representative shall submit each quarterly
report to the Administrator within 30 days following the end of the
calendar quarter covered by the report. Quarterly reports shall be
submitted in the manner specified in Sec.  75.73(f) of this chapter.
    (3) For CAIR NOX units that are also subject to an Acid
Rain emissions limitation or the CAIR NOX Ozone Season
Trading Program, CAIR SO2 Trading Program, or Hg Budget
Trading Program, quarterly reports shall include the applicable data
and information required by subparts F through I of part 75 of this
chapter as applicable, in addition to the NOX mass emission
data, heat input data, and other information required by this subpart.
    (e) Compliance certification. The CAIR designated representative
shall submit to the Administrator a compliance certification (in a
format prescribed by the Administrator) in support of each quarterly
report based on reasonable inquiry of those persons with primary
responsibility for ensuring that all of the unit's emissions are
correctly and fully monitored. The certification shall state that:
    (1) The monitoring data submitted were recorded in accordance with
the applicable requirements of this subpart and part 75 of this
chapter, including the quality assurance procedures and specifications;
and
    (2) For a unit with add-on NOX emission controls and for
all hours where NOX data are substituted in accordance with
Sec.  75.34(a)(1) of this chapter, the add-on emission controls were
operating within the range of parameters listed in the quality
assurance/quality control program under appendix B to part 75 of this
chapter and the substitute data values do not systematically
underestimate NOX emissions.

Sec.  97.175  Petitions.

    The CAIR designated representative of a CAIR NOX unit
may submit a petition under Sec.  75.66 of this chapter to the
Administrator requesting approval to apply an alternative to any
requirement of this subpart. Application of an alternative to any
requirement of this subpart is in accordance with this

subpart only to the extent that the petition is approved in writing by
the Administrator, in consultation with the permitting authority.

Subpart II--CAIR NOX Opt-In Units

Sec.  97.180  Applicability.

    A CAIR NOX opt-in unit must be a unit that:
    (a) Is located in a State that submits, and for which the
Administrator approves, a State implementation plan revision in
accordance with Sec.  51.123(p)(3)(i), (ii), or (iii) of this chapter
establishing procedures concerning CAIR opt-in units;
    (b) Is not a CAIR NOX unit under Sec.  97.104 and is not
covered by a retired unit exemption under Sec.  97.105 that is in
effect;
    (c) Is not covered by a retired unit exemption under Sec.  72.8 of
this chapter that is in effect;
    (d) Has or is required or qualified to have a title V operating
permit or other federally enforceable permit; and
    (e) Vents all of its emissions to a stack and can meet the
monitoring, recordkeeping, and reporting requirements of subpart HH of
this part.

Sec.  97.181  General.

    (a) Except as otherwise provided in Sec. Sec.  97.101 through
97.104, Sec. Sec.  97.106 through 97.108, and subparts BB and CC and
subparts FF through HH of this part, a CAIR NOX opt-in unit
shall be treated as a CAIR NOX unit for purposes of applying
such sections and subparts of this part.
    (b) Solely for purposes of applying, as provided in this subpart,
the requirements of subpart HH of this part to a unit for which a CAIR
opt-in permit application is submitted and not withdrawn and a CAIR
opt-in permit is not yet issued or denied under this subpart, such unit
shall be treated as a CAIR NOX unit before issuance of a
CAIR opt-in permit for such unit.

Sec.  97.182  CAIR designated representative.

    Any CAIR NOX opt-in unit, and any unit for which a CAIR
opt-in permit application is submitted and not withdrawn and a CAIR
opt-in permit is not yet issued or denied under this subpart, located
at the same source as one or more CAIR NOX units shall have
the same CAIR designated representative and alternate CAIR designated
representative as such CAIR NOX units.

Sec.  97.183  Applying for CAIR opt-in permit.

    (a) Applying for initial CAIR opt-in permit. The CAIR designated
representative of a unit meeting the requirements for a CAIR
NOX opt-in unit in Sec.  97.180 may apply for an initial
CAIR opt-in permit at any time, except as provided under Sec.
97.186(f) and (g), and, in order to apply, must submit the following:
    (1) A complete CAIR permit application under Sec.  97.122;
    (2) A certification, in a format specified by the permitting
authority, that the unit:
    (i) Is not a CAIR NOX unit under Sec.  97.104 and is not
covered by a retired unit exemption under Sec.  97.105 that is in
effect;
    (ii) Is not covered by a retired unit exemption under Sec.  72.8 of
this chapter that is in effect;
    (iii) Vents all of its emissions to a stack; and
    (iv) Has documented heat input for more than 876 hours during the 6
months immediately preceding submission of the CAIR permit application
under Sec.  97.122;
    (3) A monitoring plan in accordance with subpart HH of this part;
    (4) A complete certificate of representation under Sec.  97.113
consistent with Sec.  97.182, if no CAIR designated representative has
been previously designated for the source that includes the unit; and
    (5) A statement, in a format specified by the permitting authority,
whether the CAIR designated representative requests that the unit be
allocated CAIR NOX allowances under Sec.  97.188(b) or Sec.
97.188(c) (subject to the conditions in Sec. Sec.  97.184(h) and
97.186(g)), to the extent such allocation is provided in a State
implementation plan revision submitted in accordance with Sec.
51.123(p)(3)(i), (ii), or (iii) of this chapter and approved by the
Administrator. If allocation under Sec.  97.188(c) is requested, this
statement shall include a statement that the owners and operators of
the unit intend to repower the unit before January 1, 2015 and that
they will provide, upon request, documentation demonstrating such
intent.
    (b) Duty to reapply. (1) The CAIR designated representative of a
CAIR NOX opt-in unit shall submit a complete CAIR permit
application under Sec.  97.122 to renew the CAIR opt-in unit permit in
accordance with the permitting authority's regulations for title V
operating permits, or the permitting authority's regulations for other
federally enforceable permits if applicable, addressing permit renewal.
    (2) Unless the permitting authority issues a notification of
acceptance of withdrawal of the CAIR NOX opt-in unit from
the CAIR NOX Annual Trading Program in accordance with Sec.
97.186 or the unit becomes a CAIR NOX unit under Sec.
97.104, the CAIR NOX opt-in unit shall remain subject to the
requirements for a CAIR NOX opt-in unit, even if the CAIR
designated representative for the CAIR NOX opt-in unit fails
to submit a CAIR permit application that is required for renewal of the
CAIR opt-in permit under paragraph (b)(1) of this section.

Sec.  97.184  Opt-in process.

    The permitting authority will issue or deny a CAIR opt-in permit
for a unit for which an initial application for a CAIR opt-in permit
under Sec.  97.183 is submitted in accordance with the following, to
the extent provided in a State implementation plan revision submitted
in accordance with Sec.  51.123(p)(3)(i), (ii), or (iii) of this
chapter and approved by the Administrator:
    (a) Interim review of monitoring plan. The permitting authority and
the Administrator will determine, on an interim basis, the sufficiency
of the monitoring plan accompanying the initial application for a CAIR
opt-in permit under Sec.  97.183. A monitoring plan is sufficient, for
purposes of interim review, if the plan appears to contain information
demonstrating that the NOX emissions rate and heat input of
the unit and all other applicable parameters are monitored and reported
in accordance with subpart HH of this part. A determination of
sufficiency shall not be construed as acceptance or approval of the
monitoring plan.
    (b) Monitoring and reporting. (1)(i) If the permitting authority
and the Administrator determine that the monitoring plan is sufficient
under paragraph (a) of this section, the owner or operator shall
monitor and report the NOX emissions rate and the heat input
of the unit and all other applicable parameters, in accordance with
subpart HH of this part, starting on the date of certification of the
appropriate monitoring systems under subpart HH of this part and
continuing until a CAIR opt-in permit is denied under Sec.  97.184(f)
or, if a CAIR opt-in permit is issued, the date and time when the unit
is withdrawn from the CAIR NOX Annual Trading Program in
accordance with Sec.  97.186.
    (ii) The monitoring and reporting under paragraph (b)(1)(i) of this
section shall include the entire control period immediately before the
date on which the unit enters the CAIR NOX Annual Trading
Program under Sec.  97.184(g), during which period monitoring system
availability must not be less than 90 percent under subpart HH of this
part and the unit must be in full compliance with any applicable State
or Federal

emissions or emissions-related requirements.
    (2) To the extent the NOX emissions rate and the heat
input of the unit are monitored and reported in accordance with subpart
HH of this part for one or more control periods, in addition to the
control period under paragraph (b)(1)(ii) of this section, during which
control periods monitoring system availability is not less than 90
percent under subpart HH of this part and the unit is in full
compliance with any applicable State or Federal emissions or emissions-
related requirements and which control periods begin not more than 3
years before the unit enters the CAIR NOX Annual Trading
Program under Sec.  97.184(g), such information shall be used as
provided in paragraphs (c) and (d) of this section.
    (c) Baseline heat input. The unit's baseline heat rate shall equal:
    (1) If the unit's NOX emissions rate and heat input are
monitored and reported for only one control period, in accordance with
paragraph (b)(1) of this section, the unit's total heat input (in
mmBtu) for the control period; or
    (2) If the unit's NOX emissions rate and heat input are
monitored and reported for more than one control period, in accordance
with paragraphs (b)(1) and (2) of this section, the average of the
amounts of the unit's total heat input (in mmBtu) for the control
periods under paragraphs (b)(1)(ii) and (2) of this section.
    (d) Baseline NOX emission rate. The unit's baseline NOX
emission rate shall equal:
    (1) If the unit's NOX emissions rate and heat input are
monitored and reported for only one control period, in accordance with
paragraph (b)(1) of this section, the unit's NOX emissions
rate (in lb/mmBtu) for the control period;
    (2) If the unit's NOX emissions rate and heat input are
monitored and reported for more than one control period, in accordance
with paragraphs (b)(1) and (2) of this section, and the unit does not
have add-on NOX emission controls during any such control
periods, the average of the amounts of the unit's NOX
emissions rate (in lb/mmBtu) for the control periods under paragraphs
(b)(1)(ii) and (2) of this section; or
    (3) If the unit's NOX emissions rate and heat input are
monitored and reported for more than one control period, in accordance
with paragraphs (b)(1) and (2) of this section, and the unit has add-on
NOX emission controls during any such control periods, the
average of the amounts of the unit's NOX emissions rate (in
lb/mmBtu) for such control periods during which the unit has add-on
NOX emission controls.
    (e) Issuance of CAIR opt-in permit. After calculating the baseline
heat input and the baseline NOX emissions rate for the unit
under paragraphs (c) and (d) of this section and if the permitting
authority determines that the CAIR designated representative shows that
the unit meets the requirements for a CAIR NOX opt-in unit
in Sec.  97.180 and meets the elements certified in Sec.  97.183(a)(2),
the permitting authority will issue a CAIR opt-in permit. The
permitting authority will provide a copy of the CAIR opt-in permit to
the Administrator, who will then establish a compliance account for the
source that includes the CAIR NOX opt-in unit unless the
source already has a compliance account.
    (f) Issuance of denial of CAIR opt-in permit. Notwithstanding
paragraphs (a) through (e) of this section, if at any time before
issuance of a CAIR opt-in permit for the unit, the permitting authority
determines that the CAIR designated representative fails to show that
the unit meets the requirements for a CAIR NOX opt-in unit
in Sec.  97.180 or meets the elements certified in Sec.  97.183(a)(2),
the permitting authority will issue a denial of a CAIR opt-in permit
for the unit.
    (g) Date of entry into CAIR NOX Annual Trading Program.
A unit for which an initial CAIR opt-in permit is issued by the
permitting authority shall become a CAIR NOX opt-in unit,
and a CAIR NOX unit, as of the later of January 1, 2009 or
January 1 of the first control period during which such CAIR opt-in
permit is issued.
    (h) Repowered CAIR NOX opt-in unit. (1) If CAIR
designated representative requests, and the permitting authority issues
a CAIR opt-in permit providing for, allocation to a CAIR NOX
opt-in unit of CAIR NOX allowances under Sec.  97.188(c) and
such unit is repowered after its date of entry into the CAIR
NOX Annual Trading Program under paragraph (g) of this
section, the repowered unit shall be treated as a CAIR NOX
opt-in unit replacing the original CAIR NOX opt-in unit, as
of the date of start-up of the repowered unit's combustion chamber.
    (2) Notwithstanding paragraphs (c) and (d) of this section, as of
the date of start-up under paragraph (h)(1) of this section, the
repowered unit shall be deemed to have the same date of commencement of
operation, date of commencement of commercial operation, baseline heat
input, and baseline NOX emission rate as the original CAIR
NOX opt-in unit, and the original CAIR NOX opt-in
unit shall no longer be treated as a CAIR NOX opt-in unit or
a CAIR NOX unit.

Sec.  97.185  CAIR opt-in permit contents.

    (a) Each CAIR opt-in permit will contain:
    (1) All elements required for a complete CAIR permit application
under Sec.  97.122;
    (2) The certification in Sec.  97.183(a)(2);
    (3) The unit's baseline heat input under Sec.  97.184(c);
    (4) The unit's baseline NOX emission rate under Sec.
97.184(d);
    (5) A statement whether the unit is to be allocated CAIR
NOX allowances under Sec.  97.188(b) or Sec.  97.188(c)
(subject to the conditions in Sec. Sec.  97.184(h) and 97.186(g));
    (6) A statement that the unit may withdraw from the CAIR
NOX Annual Trading Program only in accordance with Sec.
97.186; and
    (7) A statement that the unit is subject to, and the owners and
operators of the unit must comply with, the requirements of Sec.
97.187.
    (b) Each CAIR opt-in permit is deemed to incorporate automatically
the definitions of terms under Sec.  97.102 and, upon recordation by
the Administrator under subpart FF or GG of this part or this subpart,
every allocation, transfer, or deduction of CAIR NOX
allowances to or from the compliance account of the source that
includes a CAIR NOX opt-in unit covered by the CAIR opt-in
permit.
    (c) The CAIR opt-in permit shall be included, in a format specified
by the permitting authority, in the CAIR permit for the source where
the CAIR NOX opt-in unit is located and in a title V
operating permit or other federally enforceable permit for the source.

Sec.  97.186  Withdrawal from CAIR NOX Annual Trading
Program.

    Except as provided under paragraph (g) of this section, a CAIR
NOX opt-in unit may withdraw from the CAIR NOX
Annual Trading Program, but only if the permitting authority issues a
notification to the CAIR designated representative of the CAIR
NOX opt-in unit of the acceptance of the withdrawal of the
CAIR NOX opt-in unit in accordance with paragraph (d) of
this section.
    (a) Requesting withdrawal. In order to withdraw a CAIR
NOX opt-in unit from the CAIR NOX Annual Trading
Program, the CAIR designated representative of the CAIR NOX
opt-in unit shall submit to the permitting authority a request to
withdraw effective as of midnight of December 31 of a specified
calendar year, which date must be at least 4 years after December 31 of
the year of entry into the CAIR NOX Annual Trading

Program under Sec.  97.184(g). The request must be submitted no later
than 90 days before the requested effective date of withdrawal.
    (b) Conditions for withdrawal. Before a CAIR NOX opt-in
unit covered by a request under paragraph (a) of this section may
withdraw from the CAIR NOX Annual Trading Program and the
CAIR opt-in permit may be terminated under paragraph (e) of this
section, the following conditions must be met:
    (1) For the control period ending on the date on which the
withdrawal is to be effective, the source that includes the CAIR
NOX opt-in unit must meet the requirement to hold CAIR
NOX allowances under Sec.  97.106(c) and cannot have any
excess emissions.
    (2) After the requirement for withdrawal under paragraph (b)(1) of
this section is met, the Administrator will deduct from the compliance
account of the source that includes the CAIR NOX opt-in unit
CAIR NOX allowances equal in amount to and allocated for the
same or a prior control period as any CAIR NOX allowances
allocated to the CAIR NOX opt-in unit under Sec.  97.188 for
any control period for which the withdrawal is to be effective. If
there are no remaining CAIR NOX units at the source, the
Administrator will close the compliance account, and the owners and
operators of the CAIR NOX opt-in unit may submit a CAIR
NOX allowance transfer for any remaining CAIR NOX
allowances to another CAIR NOX Allowance Tracking System in
accordance with subpart GG of this part.
    (c) Notification. (1) After the requirements for withdrawal under
paragraphs (a) and (b) of this section are met (including deduction of
the full amount of CAIR NOX allowances required), the
permitting authority will issue a notification to the CAIR designated
representative of the CAIR NOX opt-in unit of the acceptance
of the withdrawal of the CAIR NOX opt-in unit as of midnight
on December 31 of the calendar year for which the withdrawal was
requested.
    (2) If the requirements for withdrawal under paragraphs (a) and (b)
of this section are not met, the permitting authority will issue a
notification to the CAIR designated representative of the CAIR
NOX opt-in unit that the CAIR NOX opt-in unit's
request to withdraw is denied. Such CAIR NOX opt-in unit
shall continue to be a CAIR NOX opt-in unit.
    (d) Permit amendment. After the permitting authority issues a
notification under paragraph (c)(1) of this section that the
requirements for withdrawal have been met, the permitting authority
will revise the CAIR permit covering the CAIR NOX opt-in
unit to terminate the CAIR opt-in permit for such unit as of the
effective date specified under paragraph (c)(1) of this section. The
unit shall continue to be a CAIR NOX opt-in unit until the
effective date of the termination and shall comply with all
requirements under the CAIR NOX Annual Trading Program
concerning any control periods for which the unit is a CAIR
NOX opt-in unit, even if such requirements arise or must be
complied with after the withdrawal takes effect.
    (e) Reapplication upon failure to meet conditions of withdrawal. If
the permitting authority denies the CAIR NOX opt-in unit's
request to withdraw, the CAIR designated representative may submit
another request to withdraw in accordance with paragraphs (a) and (b)
of this section.
    (f) Ability to reapply to the CAIR NOX Annual Trading
Program. Once a CAIR NOX opt-in unit withdraws from the CAIR
NOX Annual Trading Program and its CAIR opt-in permit is
terminated under this section, the CAIR designated representative may
not submit another application for a CAIR opt-in permit under Sec.
97.183 for such CAIR NOX opt-in unit before the date that is
4 years after the date on which the withdrawal became effective. Such
new application for a CAIR opt-in permit will be treated as an initial
application for a CAIR opt-in permit under Sec.  97.184.
    (g) Inability to withdraw. Notwithstanding paragraphs (a) through
(f) of this section, a CAIR NOX opt-in unit shall not be
eligible to withdraw from the CAIR NOX Annual Trading
Program if the CAIR designated representative of the CAIR
NOX opt-in unit requests, and the permitting authority
issues a CAIR NOX opt-in permit providing for, allocation to
the CAIR NOX opt-in unit of CAIR NOX allowances
under Sec.  97.188(c).

Sec.  97.187  Change in regulatory status.

    (a) Notification. If a CAIR NOX opt-in unit becomes a
CAIR NOX unit under Sec.  97.104, then the CAIR designated
representative shall notify in writing the permitting authority and the
Administrator of such change in the CAIR NOX opt-in unit's
regulatory status, within 30 days of such change.
    (b) Permitting authority's and Administrator's actions. (1) If a
CAIR NOX opt-in unit becomes a CAIR NOX unit
under Sec.  97.104, the permitting authority will revise the CAIR
NOX opt-in unit's CAIR opt-in permit to meet the
requirements of a CAIR permit under Sec.  97.123, and remove the CAIR
opt-in permit provisions, as of the date on which the CAIR
NOX opt-in unit becomes a CAIR NOX unit under
Sec.  97.104.
    (2)(i) The Administrator will deduct from the compliance account of
the source that includes the CAIR NOX opt-in unit that
becomes a CAIR NOX unit under Sec.  97.104, CAIR
NOX allowances equal in amount to and allocated for the same
or a prior control period as:
    (A) Any CAIR NOX allowances allocated to the CAIR
NOX opt-in unit under Sec.  97.188 for any control period
after the date on which the CAIR NOX opt-in unit becomes a
CAIR NOX unit under Sec.  97.104; and
    (B) If the date on which the CAIR NOX opt-in unit
becomes a CAIR NOX unit under Sec.  97.104 is not December
31, the CAIR NOX allowances allocated to the CAIR
NOX opt-in unit under Sec.  97.188 for the control period
that includes the date on which the CAIR NOX opt-in unit
becomes a CAIR NOX unit under Sec.  97.104, multiplied by
the ratio of the number of days, in the control period, starting with
the date on which the CAIR NOX opt-in unit becomes a CAIR
NOX unit under Sec.  97.104 divided by the total number of
days in the control period and rounded to the nearest whole allowance
as appropriate.
    (ii) The CAIR designated representative shall ensure that the
compliance account of the source that includes the CAIR NOX
unit that becomes a CAIR NOX unit under Sec.  97.104
contains the CAIR NOX allowances necessary for completion of
the deduction under paragraph (b)(2)(i) of this section.
    (3)(i) For every control period after the date on which the CAIR
NOX opt-in unit becomes a CAIR NOX unit under
Sec.  97.104, the CAIR NOX opt-in unit will be allocated
CAIR NOX allowances under Sec.  97.142.
    (ii) If the date on which the CAIR NOX opt-in unit
becomes a CAIR NOX unit under Sec.  97.104 is not December
31, the following amount of CAIR NOX allowances will be
allocated to the CAIR NOX opt-in unit (as a CAIR
NOX unit) under ( 97.142 for the control period that
includes the date on which the CAIR NOX opt-in unit becomes
a CAIR NOX unit under Sec.  97.104:
    (A) The amount of CAIR NOX allowances otherwise
allocated to the CAIR NOX opt-in unit (as a CAIR
NOX unit) under Sec.  97.142 for the control period
multiplied by;
    (B) The ratio of the number of days, in the control period,
starting with the date on which the CAIR NOX opt-in unit
becomes a CAIR NOX unit under Sec.  97.104, divided by the
total number of days in the control period; and

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

Sec.  97.188  CAIR NOX allowance allocations to CAIR
NOX opt-in units.

    (a) Timing requirements. (1) When the CAIR opt-in permit is issued
under Sec.  97.184(e), the permitting authority will allocate CAIR
NOX allowances to the CAIR NOX opt-in unit, and
submit to the Administrator the allocation for the control period in
which a CAIR NOX opt-in unit enters the CAIR NOX
Annual Trading Program under Sec.  97.184(g), in accordance with
paragraph (b) or (c) of this section.
    (2) By no later than October 31 of the control period after the
control period in which a CAIR NOX opt-in unit enters the
CAIR NOX Annual Trading Program under Sec.  97.184(g) and
October 31 of each year thereafter, the permitting authority will
allocate CAIR NOX allowances to the CAIR NOX opt-
in unit, and submit to the Administrator the allocation for the control
period that includes such submission deadline and in which the unit is
a CAIR NOX opt-in unit, in accordance with paragraph (b) or
(c) of this section.
    (b) Calculation of allocation. For each control period for which a
CAIR NOX opt-in unit is to be allocated CAIR NOX
allowances, the permitting authority will allocate in accordance with
the following procedures, if provided in a State implementation plan
revision submitted in accordance with Sec.  51.123(p)(3)(i), (ii), or
(iii) of this chapter and approved by the Administrator:
    (1) The heat input (in mmBtu) used for calculating the CAIR
NOX allowance allocation will be the lesser of:
    (i) The CAIR NOX opt-in unit's baseline heat input
determined under Sec.  97.184(c); or
    (ii) The CAIR NOX opt-in unit's heat input, as
determined in accordance with subpart HH of this part, for the
immediately prior control period, except when the allocation is being
calculated for the control period in which the CAIR NOX opt-
in unit enters the CAIR NOX Annual Trading Program under
Sec.  97.184(g).
    (2) The NOX emission rate (in lb/mmBtu) used for
calculating CAIR NOX allowance allocations will be the
lesser of:
    (i) The CAIR NOX opt-in unit's baseline NOX
emissions rate (in lb/mmBtu) determined under Sec.  97.184(d) and
multiplied by 70 percent; or
    (ii) The most stringent State or Federal NOX emissions
limitation applicable to the CAIR NOX opt-in unit at any
time during the control period for which CAIR NOX allowances
are to be allocated.
    (3) The permitting authority will allocate CAIR NOX
allowances to the CAIR NOX opt-in unit in an amount equaling
the heat input under paragraph (b)(1) of this section, multiplied by
the NOX emission rate under paragraph (b)(2) of this
section, divided by 2,000 lb/ton, and rounded to the nearest whole
allowance as appropriate.
    (c) Notwithstanding paragraph (b) of this section and if the CAIR
designated representative requests, and the permitting authority issues
a CAIR opt-in permit (based on a demonstration of the intent to repower
stated under Sec.  97.183(a)(5)) providing for, allocation to a CAIR
NOX opt-in unit of CAIR NOX allowances under this
paragraph (subject to the conditions in Sec. Sec.  97.184(h) and
97.186(g)), the permitting authority will allocate to the CAIR
NOX opt-in unit as follows, if provided in a State
implementation plan revision submitted in accordance with (
51.123(p)(3)(i), (ii), or (iii) of this chapter and approved by the
Administrator:
    (1) For each control period in 2009 through 2014 for which the CAIR
NOX opt-in unit is to be allocated CAIR NOX
allowances,
    (i) The heat input (in mmBtu) used for calculating CAIR
NOX allowance allocations will be determined as described in
paragraph (b)(1) of this section.
    (ii) The NOX emission rate (in lb/mmBtu) used for
calculating CAIR NOX allowance allocations will be the
lesser of:
    (A) The CAIR NOX opt-in unit's baseline NOX
emissions rate (in lb/mmBtu) determined under Sec.  97.184(d); or
    (B) The most stringent State or Federal NOX emissions
limitation applicable to the CAIR NOX opt-in unit at any
time during the control period in which the CAIR NOX opt-in
unit enters the CAIR NOX Annual Trading Program under Sec.
97.184(g).
    (iii) The permitting authority will allocate CAIR NOX
allowances to the CAIR NOX opt-in unit in an amount equaling
the heat input under paragraph (c)(1)(i) of this section, multiplied by
the NOX emission rate under paragraph (c)(1)(ii) of this
section, divided by 2,000 lb/ton, and rounded to the nearest whole
allowance as appropriate.
    (2) For each control period in 2015 and thereafter for which the
CAIR NOX opt-in unit is to be allocated CAIR NOX
allowances,
    (i) The heat input (in mmBtu) used for calculating the CAIR
NOX allowance allocations will be determined as described in
paragraph (b)(1) of this section.
    (ii) The NOX emission rate (in lb/mmBtu) used for
calculating the CAIR NOX allowance allocation will be the
lesser of:
    (A) 0.15 lb/mmBtu;
    (B) The CAIR NOX opt-in unit's baseline NOX
emissions rate (in lb/mmBtu) determined under Sec.  97.184(d); or
    (C) The most stringent State or Federal NOX emissions
limitation applicable to the CAIR NOX opt-in unit at any
time during the control period for which CAIR NOX allowances
are to be allocated.
    (iii) The permitting authority will allocate CAIR NOX
allowances to the CAIR NOX opt-in unit in an amount equaling
the heat input under paragraph (c)(2)(i) of this section, multiplied by
the NOX emission rate under paragraph (c)(2)(ii) of this
section, divided by 2,000 lb/ton, and rounded to the nearest whole
allowance as appropriate.
    (d) Recordation. If provided in a State implementation plan
revision submitted in accordance with Sec.  51.123(p)(3)(i), (ii), or
(iii) of this chapter and approved by the Administrator:
    (1) The Administrator will record, in the compliance account of the
source that includes the CAIR NOX opt-in unit, the CAIR
NOX allowances allocated by the permitting authority to the
CAIR NOX opt-in unit under paragraph (a)(1) of this section.
    (2) By December 1 of the control period in which a CAIR
NOX opt-in unit enters the CAIR NOX Annual
Trading Program under Sec.  97.184(g) and December 1 of each year
thereafter, the Administrator will record, in the compliance account of
the source that includes the CAIR NOX opt-in unit, the CAIR
NOX allowances allocated by the permitting authority to the
CAIR NOX opt-in unit under paragraph (a)(2) of this section.

Appendix A to Subpart II of Part 97--States With Approved State
Implementation Plan Revisions Concerning CAIR NOX Opt-In
Units

    1. The following States have State Implementation Plan revisions
under Sec.  51.123(p)(3) of this chapter approved by the
Administrator and establishing procedures providing for CAIR
NOX opt-in units under subpart II of this part and
allocation of CAIR NOX allowances to such units under
Sec.  97.188(b):
    [Reserved]
    2. The following States have State Implementation Plan revisions
under Sec.  51.123(p)(3) of this chapter approved by the
Administrator and establishing procedures providing for CAIR
NOX opt-in units under subpart II of this part and
allocation of CAIR

NOX allowances to such units under Sec.  97.188(c):
    [Reserved]

0
4. Part 97 is amended by adding subparts AAA through CCC, adding and
reserving subparts DDD and EEE and adding subparts FFF through III to
read as follows:
Subpart AAA--CAIR SO2 Trading Program General Provisions
Sec.
97.201 Purpose.
97.202 Definitions.
97.203 Measurements, abbreviations, and acronyms.
97.204 Applicability.
97.205 Retired unit exemption.
97.206 Standard requirements.
97.207 Computation of time.
97.208 Appeal procedures.
Subpart BBB--CAIR Designated Representative for CAIR SO2 Sources
97.210 Authorization and responsibilities of CAIR designated
representative.
97.211 Alternate CAIR designated representative.
97.212 Changing CAIR designated representative and alternate CAIR
designated representative; changes in owners and operators.
97.213 Certificate of representation.
97.214 Objections concerning CAIR designated representative.
97.215 Delegation by CAIR designated representative and alternate
CAIR designated representative.
Subpart CCC--Permits
97.220 General CAIR SO2 Trading Program permit
requirements.
97.221 Submission of CAIR permit applications.
97.222 Information requirements for CAIR permit applications.
97.223 CAIR permit contents and term.
97.224 CAIR permit revisions.
Subpart DDD--[Reserved]
Subpart EEE--[Reserved]
Subpart FFF--CAIR SO2 Allowance Tracking System
97.250 [Reserved]
97.251 Establishment of accounts.
97.252 Responsibilities of CAIR authorized account representative.
97.253 Recordation of CAIR SO2 allowances.
97.254 Compliance with CAIR SO2 emissions limitation.
97.255 Banking.
97.256 Account error.
97.257 Closing of general accounts.
Subpart GGG--CAIR SO2 Allowance Transfers
97.260 Submission of CAIR SO2 allowance transfers.
97.261 EPA recordation.
97.262 Notification.
Subpart HHH--Monitoring and Reporting
97.270 General requirements.
97.271 Initial certification and recertification procedures.
97.272 Out of control periods.
97.273 Notifications.
97.274 Recordkeeping and reporting.
97.275 Petitions.
Subpart III--CAIR SO2 Opt-in Units
97.280 Applicability.
97.281 General.
97.282 CAIR designated representative.
97.283 Applying for CAIR opt-in permit.
97.284 Opt-in process.
97.285 CAIR opt-in permit contents.
97.286 Withdrawal from CAIR SO2 Trading Program.
97.287 Change in regulatory status.
97.288 CAIR SO2 allowance allocations to CAIR
SO2 opt-in units.

Appendix A to Subpart III of Part 97--States With Approved State
Implementation Plan Revisions Concerning CAIR SO2 Opt-In
Units

Subpart AAA--CAIR SO2 Trading Program General Provisions

Sec.  97.201  Purpose.

    This subpart and subparts BBB through III set forth the general
provisions and the designated representative, permitting, allowance,
monitoring, and opt-in provisions for the Federal Clean Air Interstate
Rule (CAIR) SO2 Trading Program, under section 110 of the
Clean Air Act and Sec.  52.36 of this chapter, as a means of mitigating
interstate transport of fine particulates and sulfur dioxide.

Sec.  97.202  Definitions.

    The terms used in this subpart and subparts BBB through III shall
have the meanings set forth in this section as follows:
    Account number means the identification number given by the
Administrator to each CAIR SO2 Allowance Tracking System
account.
    Acid Rain emissions limitation means a limitation on emissions of
sulfur dioxide or nitrogen oxides under the Acid Rain Program.
    Acid Rain Program means a multi-state sulfur dioxide and nitrogen
oxides air pollution control and emission reduction program established
by the Administrator under title IV of the CAA and parts 72 through 78
of this chapter.
    Administrator means the Administrator of the United States
Environmental Protection Agency or the Administrator's duly authorized
representative.
    Allocate or allocation means, with regard to CAIR SO2
allowances issued under the Acid Rain Program, the determination by the
Administrator of the amount of such CAIR SO2 allowances to
be initially credited to a CAIR SO2 unit or other entity
and, with regard to CAIR SO2 allowances issued under Sec.
97.288 or provisions of a State implementation plan that are approved
under Sec.  51.124(o)(1) or (2) or (r) of this chapter, the
determination by a permitting authority of the amount of such CAIR
SO2 allowances to be initially credited to a CAIR
SO2 unit or other entity.
    Allowance transfer deadline means, for a control period, midnight
of March 1 (if it is a business day), or midnight of the first business
day thereafter (if March 1 is not a business day), immediately
following the control period and is the deadline by which a CAIR
SO2 allowance transfer must be submitted for recordation in
a CAIR SO2 source's compliance account in order to be used
to meet the source's CAIR SO2 emissions limitation for such
control period in accordance with Sec.  97.254.
    Alternate CAIR designated representative means, for a CAIR
SO2 source and each CAIR SO2 unit at the source,
the natural person who is authorized by the owners and operators of the
source and all such units at the source in accordance with subparts BBB
and III of this part, to act on behalf of the CAIR designated
representative in matters pertaining to the CAIR SO2 Trading
Program. If the CAIR SO2 source is also a CAIR
NOX source, then this natural person shall be the same
person as the alternate CAIR designated representative under the CAIR
NOX Annual Trading Program. If the CAIR SO2
source is also a CAIR NOX Ozone Season source, then this
natural person shall be the same person as the alternate CAIR
designated representative under the CAIR NOX Ozone Season
Trading Program. If the CAIR SO2 source is also subject to
the Acid Rain Program, then this natural person shall be the same
person as the alternate designated representative under the Acid Rain
Program. If the CAIR SO2 source is also subject to the Hg
Budget Trading Program, then this natural person shall be the same
person as the alternate Hg designated representative under the Hg
Budget Trading Program.
    Automated data acquisition and handling system or DAHS means that
component of the continuous emission monitoring system, or other
emissions monitoring system approved for use under subpart HHH of this
part, designed to interpret and convert individual output signals from
pollutant concentration monitors, flow monitors, diluent gas monitors,
and other component parts of the monitoring system to produce a
continuous record of the measured parameters in the measurement units
required by subpart HHH of this part.
    Boiler means an enclosed fossil- or other-fuel-fired combustion
device used

to produce heat and to transfer heat to recirculating water, steam, or
other medium.
    Bottoming-cycle cogeneration unit means a cogeneration unit in
which the energy input to the unit is first used to produce useful
thermal energy and at least some of the reject heat from the useful
thermal energy application or process is then used for electricity
production.
    CAIR authorized account representative means, with regard to a
general account, a responsible natural person who is authorized, in
accordance with subparts BBB, FFF, and III of this part, to transfer
and otherwise dispose of CAIR SO2 allowances held in the
general account and, with regard to a compliance account, the CAIR
designated representative of the source.
    CAIR designated representative means, for a CAIR SO2
source and each CAIR SO2 unit at the source, the natural
person who is authorized by the owners and operators of the source and
all such units at the source, in accordance with subparts BBB and III
of this part, to represent and legally bind each owner and operator in
matters pertaining to the CAIR SO2 Trading Program. If the
CAIR SO2 source is also a CAIR NOX source, then
this natural person shall be the same person as the CAIR designated
representative under the CAIR NOX Annual Trading Program. If
the CAIR SO2 source is also a CAIR NOX Ozone
Season source, then this natural person shall be the same person as the
CAIR designated representative under the CAIR NOX Ozone
Season Trading Program. If the CAIR SO2 source is also
subject to the Acid Rain Program, then this natural person shall be the
same person as the designated representative under the Acid Rain
Program. If the CAIR SO2 source is also subject to the Hg
Budget Trading Program, then this natural person shall be the same
person as the Hg designated representative under the Hg Budget Trading
Program.
    CAIR NOX Annual Trading Program means a multi-state nitrogen oxides
air pollution control and emission reduction program established by the
Administrator in accordance with subparts AA through II of this part
and (Sec.  51.123(p) and 52.35 of this chapter or approved and
administered by the Administrator in accordance with subparts AA
through II of part 96 of this chapter and Sec.  51.123(o)(1) or (2) of
this chapter, as a means of mitigating interstate transport of fine
particulates and nitrogen oxides.
    CAIR NOX Ozone Season source means a source that is subject to the
CAIR NOX Ozone Season Trading Program.
    CAIR NOX Ozone Season Trading Program means a multi-state nitrogen
oxides air pollution control and emission reduction program established
by the Administrator in accordance with subparts AAAA through IIII of
this part and (Sec.  51.123(ee) and 52.35 of this chapter or approved
and administered by the Administrator in accordance with under subparts
AAAA through IIII and Sec.  51.123(aa)(1) or (2) (and (bb)(1)),
(bb)(2), or (dd) of this chapter, as a means of mitigating interstate
transport of ozone and nitrogen oxides.
    CAIR NOX source means a source that is subject to the
CAIR NOX Annual Trading Program.
    CAIR permit means the legally binding and federally enforceable
written document, or portion of such document, issued by the permitting
authority under subpart CCC of this part, including any permit
revisions, specifying the CAIR SO2 Trading Program
requirements applicable to a CAIR SO2 source, to each CAIR
SO2 unit at the source, and to the owners and operators and
the CAIR designated representative of the source and each such unit.
    CAIR SO2 allowance means a limited authorization issued by the
Administrator under the Acid Rain Program, by a permitting authority
under Sec.  97.288, or by a permitting authority under provisions of a
State implementation plan that are approved under Sec.  51.124(o)(1) or
(2) or (r) of this chapter, to emit sulfur dioxide during the control
period of the specified calendar year for which the authorization is
allocated or of any calendar year thereafter under the CAIR
SO2 Trading Program as follows:
    (1) For one CAIR SO2 allowance allocated for a control
period in a year before 2010, one ton of sulfur dioxide, except as
provided in Sec.  97.254(b);
    (2) For one CAIR SO2 allowance allocated for a control
period in 2010 through 2014, 0.50 ton of sulfur dioxide, except as
provided in Sec.  97.254(b); and
    (3) For one CAIR SO2 allowance allocated for a control
period in 2015 or later, 0.35 ton of sulfur dioxide, except as provided
in Sec.  97.254(b).
    (4) An authorization to emit sulfur dioxide that is not issued
under the Acid Rain Program, Sec.  97.288, or provisions of a State
implementation plan that are approved under Sec.  51.124(o)(1) or (2)
or (r) of this chapter shall not be a CAIR SO2 allowance.
    CAIR SO2 allowance deduction or deduct CAIR SO2 allowances means
the permanent withdrawal of CAIR SO2 allowances by the
Administrator from a compliance account, e.g., in order to account for
a specified number of tons of total sulfur dioxide emissions from all
CAIR SO2 units at a CAIR SO2 source for a control
period, determined in accordance with subpart HHH of this part, or to
account for excess emissions.
    CAIR SO2 Allowance Tracking System means the system by which the
Administrator records allocations, deductions, and transfers of CAIR
SO2 allowances under the CAIR SO2 Trading
Program. This is the same system as the Allowance Tracking System under
Sec.  72.2 of this chapter by which the Administrator records
allocations, deduction, and transfers of Acid Rain SO2
allowances under the Acid Rain Program.
    CAIR SO2 Allowance Tracking System account means an account in the
CAIR SO2 Allowance Tracking System established by the Administrator for
purposes of recording the allocation, holding, transferring, or
deducting of CAIR SO2 allowances. Such allowances will be
allocated, held, deducted, or transferred only as whole allowances.
    CAIR SO2 allowances held or hold CAIR SO2 allowances means the CAIR
SO2 allowances recorded by the Administrator, or submitted
to the Administrator for recordation, in accordance with subparts FFF,
GGG, and III of this part or part 73 of this chapter, in a CAIR
SO2 Allowance Tracking System account.
    CAIR SO2 emissions limitation means, for a CAIR SO2
source, the tonnage equivalent, in SO2 emissions in a
control period, of the CAIR SO2 allowances available for
deduction for the source under Sec.  97.254(a) and (b) for the control
period.
    CAIR SO2 source means a source that includes one or more CAIR
SO2 units.
    CAIR SO2 Trading Program means a multi-state sulfur dioxide air
pollution control and emission reduction program established by the
Administrator in accordance with subparts AAA through III of this part
and Sec. Sec.  51.124(r) and 52.36 of this chapter or approved and
administered by the Administrator in accordance with subparts AAA
through III of part 96 of this chapter and Sec.  51.124(o) (1) or (2)
of this chapter, as a means of mitigating interstate transport of fine
particulates and sulfur dioxide.
    CAIR SO2 unit means a unit that is subject to the CAIR
SO2 Trading Program under Sec.  97.204 and, except for
purposes of Sec.  97.205, a CAIR SO2 opt-in unit under
subpart III of this part.
    Certifying official means:
    (1) For a corporation, a president, secretary, treasurer, or vice-
president or the corporation in charge of a principal business function
or any other person who performs similar policy or

decision-making functions for the corporation;
    (2) For a partnership or sole proprietorship, a general partner or
the proprietor respectively; or
    (3) For a local government entity or State, Federal, or other
public agency, a principal executive officer or ranking elected
official.
    Clean Air Act or CAA means the Clean Air Act, 42 U.S.C. 7401, et
seq.
    Coal means any solid fuel classified as anthracite, bituminous,
subbituminous, or lignite.
    Coal-derived fuel means any fuel (whether in a solid, liquid, or
gaseous state) produced by the mechanical, thermal, or chemical
processing of coal.
    Coal-fired means combusting any amount of coal or coal-derived
fuel, alone, or in combination with any amount of any other fuel.
    Cogeneration unit means a stationary, fossil-fuel-fired boiler or
stationary, fossil-fuel-fired combustion turbine:
    (1) Having equipment used to produce electricity and useful thermal
energy for industrial, commercial, heating, or cooling purposes through
the sequential use of energy; and
    (2) Producing during the 12-month period starting on the date the
unit first produces electricity and during any calendar year after the
calendar year in which the unit first produces electricity--
    (i) For a topping-cycle cogeneration unit,
    (A) Useful thermal energy not less than 5 percent of total energy
output; and
    (B) Useful power that, when added to one-half of useful thermal
energy produced, is not less then 42.5 percent of total energy input,
if useful thermal energy produced is 15 percent or more of total energy
output, or not less than 45 percent of total energy input, if useful
thermal energy produced is less than 15 percent of total energy output.
    (ii) For a bottoming-cycle cogeneration unit, useful power not less
than 45 percent of total energy input.
    Combustion turbine means:
    (1) An enclosed device comprising a compressor, a combustor, and a
turbine and in which the flue gas resulting from the combustion of fuel
in the combustor passes through the turbine, rotating the turbine; and
    (2) If the enclosed device under paragraph (1) of this definition
is combined cycle, any associated duct burner, heat recovery steam
generator, and steam turbine.
    Commence commercial operation means, with regard to a unit:
    (1) To have begun to produce steam, gas, or other heated medium
used to generate electricity for sale or use, including test
generation, except as provided in Sec.  97.205 and Sec.  97.284(h).
    (i) For a unit that is a CAIR SO2 unit under Sec.
97.204 on the later of November 15, 1990 or the date the unit commences
commercial operation as defined in paragraph (1) of this definition and
that subsequently undergoes a physical change (other than replacement
of the unit by a unit at the same source), such date shall remain the
date of commencement of commercial operation of the unit, which shall
continue to be treated as the same unit.
    (ii) For a unit that is a CAIR SO2 unit under Sec.
97.204 on the later of November 15, 1990 or the date the unit commences
commercial operation as defined in paragraph (1) of this definition and
that is subsequently replaced by a unit at the same source (e.g.,
repowered), such date shall remain the replaced unit's date of
commencement of commercial operation, and the replacement unit shall be
treated as a separate unit with a separate date for commencement of
commercial operation as defined in paragraph (1) or (2) of this
definition as appropriate.
    (2) Notwithstanding paragraph (1) of this definition and except as
provided in Sec.  97.205, for a unit that is not a CAIR SO2
unit under Sec.  97.204 on the later of November 15, 1990 or the date
the unit commences commercial operation as defined in paragraph (1) of
this definition, the unit's date for commencement of commercial
operation shall be the date on which the unit becomes a CAIR
SO2 unit under Sec.  97.204.
    (i) For a unit with a date for commencement of commercial operation
as defined in paragraph (2) of this definition and that subsequently
undergoes a physical change (other than replacement of the unit by a
unit at the same source), such date shall remain the date of
commencement of commercial operation of the unit, which shall continue
to be treated as the same unit.
    (ii) For a unit with a date for commencement of commercial
operation as defined in paragraph (2) of this definition and that is
subsequently replaced by a unit at the same source (e.g., repowered),
such date shall remain the replaced unit's date of commencement of
commercial operation, and the replacement unit shall be treated as a
separate unit with a separate date for commencement of commercial
operation as defined in paragraph (1) or (2) of this definition as
appropriate.
    Commence operation means:
    (1) To have begun any mechanical, chemical, or electronic process,
including, with regard to a unit, start-up of a unit's combustion
chamber, except as provided in Sec.  97.284(h).
    (2) For a unit that undergoes a physical change (other than
replacement of the unit by a unit at the same source) after the date
the unit commences operation as defined in paragraph (1) of this
definition, such date shall remain the date of commencement of
operation of the unit, which shall continue to be treated as the same
unit.
    (3) For a unit that is replaced by a unit at the same source (e.g.,
repowered) after the date the unit commences operation as defined in
paragraph (1) of this definition, such date shall remain the replaced
unit's date of commencement of operation, and the replacement unit
shall be treated as a separate unit with a separate date for
commencement of operation as defined in paragraph (1), (2), or (3) of
this definition as appropriate, except as provided in Sec.  97.284(h).
    Common stack means a single flue through which emissions from 2 or
more units are exhausted.
    Compliance account means a CAIR SO2 Allowance Tracking
System account, established by the Administrator for a CAIR
SO2 source subject to an Acid Rain emissions limitations
under Sec.  73.31(a) or (b) of this chapter or for any other CAIR
SO2 source under subpart FFF or III of this part, in which
any CAIR SO2 allowance allocations for the CAIR
SO2 units at the source are initially recorded and in which
are held any CAIR SO2 allowances available for use for a
control period in order to meet the source's CAIR SO2
emissions limitation in accordance with Sec.  97.254.
    Continuous emission monitoring system or CEMS means the equipment
required under subpart HHH of this part to sample, analyze, measure,
and provide, by means of readings recorded at least once every 15
minutes (using an automated data acquisition and handling system
(DAHS)), a permanent record of sulfur dioxide emissions, stack gas
volumetric flow rate, stack gas moisture content, and oxygen or carbon
dioxide concentration (as applicable), in a manner consistent with part
75 of this chapter. The following systems are the principal types of
continuous emission monitoring systems required under subpart HHH of
this part:
    (1) A flow monitoring system, consisting of a stack flow rate
monitor and an automated data acquisition and handling system and
providing a permanent, continuous record of stack gas volumetric flow
rate, in standard cubic feet per hour (scfh);

    (2) A sulfur dioxide monitoring system, consisting of a
SO2 pollutant concentration monitor and an automated data
acquisition and handling system and providing a permanent, continuous
record of SO2 emissions, in parts per million (ppm);
    (3) A moisture monitoring system, as defined in Sec.  75.11(b)(2)
of this chapter and providing a permanent, continuous record of the
stack gas moisture content, in percent H2O;
    (4) A carbon dioxide monitoring system, consisting of a
CO2 pollutant concentration monitor (or an oxygen monitor
plus suitable mathematical equations from which the CO2
concentration is derived) and an automated data acquisition and
handling system and providing a permanent, continuous record of
CO2 emissions, in percent CO2; and
    (5) An oxygen monitoring system, consisting of an O2
concentration monitor and an automated data acquisition and handling
system and providing a permanent, continuous record of O2 in
percent O2.
    Control period means the period beginning January 1 of a calendar
year, except as provided in Sec.  97.206(c)(2), and ending on December
31 of the same year, inclusive.
    Emissions means air pollutants exhausted from a unit or source into
the atmosphere, as measured, recorded, and reported to the
Administrator by the CAIR designated representative and as determined
by the Administrator in accordance with subpart HHH of this part.
    Excess emissions means any ton, or portion of a ton, of sulfur
dioxide emitted by the CAIR SO2 units at a CAIR
SO2 source during a control period that exceeds the CAIR
SO2 emissions limitation for the source, provided that any
portion of a ton of excess emissions shall be treated as one ton of
excess emissions.
    Fossil fuel means natural gas, petroleum, coal, or any form of
solid, liquid, or gaseous fuel derived from such material.
    Fossil-fuel-fired means, with regard to a unit, combusting any
amount of fossil fuel in any calendar year.
    General account means a CAIR SO2 Allowance Tracking
System account, established under subpart FFF of this part, that is not
a compliance account.
    Generator means a device that produces electricity.
    Heat input means, with regard to a specified period of time, the
product (in mmBtu/time) of the gross calorific value of the fuel (in
Btu/lb) divided by 1,000,000 Btu/mmBtu and multiplied by the fuel feed
rate into a combustion device (in lb of fuel/time), as measured,
recorded, and reported to the Administrator by the CAIR designated
representative and determined by the Administrator in accordance with
subpart HHH of this part and excluding the heat derived from preheated
combustion air, recirculated flue gases, or exhaust from other sources.
    Heat input rate means the amount of heat input (in mmBtu) divided
by unit operating time (in hr) or, with regard to a specific fuel, the
amount of heat input attributed to the fuel (in mmBtu) divided by the
unit operating time (in hr) during which the unit combusts the fuel.
    Hg Budget Trading Program means a multi-state Hg air pollution
control and emission reduction program approved and administered by the
Administrator in accordance subpart HHHH of part 60 of this chapter and
Sec.  60.24(h)(6), or established by the Administrator under section
111 of the Clean Air Act, as a means of reducing national Hg emissions.
    Life-of-the-unit, firm power contractual arrangement means a unit
participation power sales agreement under which a utility or industrial
customer reserves, or is entitled to receive, a specified amount or
percentage of nameplate capacity and associated energy generated by any
specified unit and pays its proportional amount of such unit's total
costs, pursuant to a contract:
    (1) For the life of the unit;
    (2) For a cumulative term of no less than 30 years, including
contracts that permit an election for early termination; or
    (3) For a period no less than 25 years or 70 percent of the
economic useful life of the unit determined as of the time the unit is
built, with option rights to purchase or release some portion of the
nameplate capacity and associated energy generated by the unit at the
end of the period.
    Maximum design heat input means the maximum amount of fuel per hour
(in Btu/hr) that a unit is capable of combusting on a steady state
basis as of the initial installation of the unit as specified by the
manufacturer of the unit.
    Monitoring system means any monitoring system that meets the
requirements of subpart HHH of this part, including a continuous
emissions monitoring system, an alternative monitoring system, or an
excepted monitoring system under part 75 of this chapter.
    Most stringent State or Federal SO2 emissions limitation means,
with regard to a unit, the lowest SO2 emissions limitation
(in terms of lb/mmBtu) that is applicable to the unit under State or
Federal law, regardless of the averaging period to which the emissions
limitation applies.
    Nameplate capacity means, starting from the initial installation of
a generator, the maximum electrical generating output (in MWe) that the
generator is capable of producing on a steady state basis and during
continuous operation (when not restricted by seasonal or other
deratings) as 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 (in MWe) that the generator is
capable of producing on a steady state basis and during continuous
operation (when not restricted by seasonal or other deratings), such
increased maximum amount as of such completion as specified by the
person conducting the physical change.
    Operator means any person who operates, controls, or supervises a
CAIR SO2 unit or a CAIR SO2 source and shall
include, but not be limited to, any holding company, utility system, or
plant manager of such a unit or source.
    Owner means any of the following persons:
    (1) With regard to a CAIR SO2 source or a CAIR
SO2 unit at a source, respectively:
    (i) Any holder of any portion of the legal or equitable title in a
CAIR SO2 unit at the source or the CAIR SO2 unit;
    (ii) Any holder of a leasehold interest in a CAIR SO2
unit at the source or the CAIR SO2 unit; or
    (iii) Any purchaser of power from a CAIR SO2 unit at the
source or the CAIR SO2 unit under a life-of-the-unit, firm
power contractual arrangement; provided that, unless expressly provided
for in a leasehold agreement, owner shall not include a passive lessor,
or a person who has an equitable interest through such lessor, whose
rental payments are not based (either directly or indirectly) on the
revenues or income from such CAIR SO2 unit; or
    (2) With regard to any general account, any person who has an
ownership interest with respect to the CAIR SO2 allowances
held in the general account and who is subject to the binding agreement
for the CAIR authorized account representative to represent the
person's ownership interest with respect to CAIR SO2
allowances.
    Permitting authority means the State air pollution control agency,
local agency, other State agency, or other

agency authorized by the Administrator to issue or revise permits to
meet the requirements of the CAIR SO2 Trading Program in
accordance with subpart CCC of this part or, if no such agency has been
so authorized, the Administrator.
    Potential electrical output capacity means 33 percent of a unit's
maximum design heat input, divided by 3,413 Btu/kWh, divided by 1,000
kWh/MWh, and multiplied by 8,760 hr/yr.
    Receive or receipt of means, when referring to the permitting
authority or the Administrator, to come into possession of a document,
information, or correspondence (whether sent in hard 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 permitting authority or the Administrator in the regular course
of business.
    Recordation, record, or recorded means, with regard to CAIR
SO2 allowances, the movement of CAIR SO2
allowances by the Administrator into or between CAIR SO2
Allowance Tracking System accounts, for purposes of allocation,
transfer, or deduction.
    Reference method means any direct test method of sampling and
analyzing for an air pollutant as specified in Sec.  75.22 of this
chapter.
    Replacement, replace, or replaced means, with regard to a unit, the
demolishing of a unit, or the permanent shutdown and permanent
disabling of a unit, and the construction of another unit (the
replacement unit) to be used instead of the demolished or shutdown unit
(the replaced unit).
    Repowered means, with regard to a unit, replacement of a coal-fired
boiler with one of the following coal-fired technologies at the same
source as the coal-fired boiler:
    (1) Atmospheric or pressurized fluidized bed combustion;
    (2) Integrated gasification combined cycle;
    (3) Magnetohydrodynamics;
    (4) Direct and indirect coal-fired turbines;
    (5) Integrated gasification fuel cells; or
    (6) As determined by the Administrator in consultation with the
Secretary of Energy, a derivative of one or more of the technologies
under paragraphs (1) through (5) of this definition and any other coal-
fired technology capable of controlling multiple combustion emissions
simultaneously with improved boiler or generation efficiency and with
significantly greater waste reduction relative to the performance of
technology in widespread commercial use as of January 1, 2005.
    Sequential use of energy means:
    (1) For a topping-cycle cogeneration unit, the use of reject heat
from electricity production in a useful thermal energy application or
process; or
    (2) For a bottoming-cycle cogeneration unit, the use of reject heat
from useful thermal energy application or process in electricity
production.
    Serial number means, for a CAIR SO2 allowance, the
unique identification number assigned to each CAIR SO2
allowance by the Administrator.
    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.
    Source means all buildings, structures, or installations located in
one or more contiguous or adjacent properties under common control of
the same person or persons. For purposes of section 502(c) of the Clean
Air Act, a ``source,'' including a ``source'' with multiple units,
shall be considered a single ``facility.''
    State means one of the States or the District of Columbia that is
subject to the CAIR SO2 Trading Program pursuant to Sec.
52.35 of this chapter.
    Submit or serve means to send or transmit a document, information,
or correspondence to the person specified in accordance with the
applicable regulation:
    (1) In person;
    (2) By United States Postal Service; or
    (3) By other means of dispatch or transmission and delivery.
Compliance with any ``submission'' or ``service'' deadline shall be
determined by the date of dispatch, transmission, or mailing and not
the date of receipt.
    Title V operating permit means a permit issued under title V of the
Clean Air Act and part 70 or part 71 of this chapter.
    Title V operating permit regulations means the regulations that the
Administrator has approved or issued as meeting the requirements of
title V of the Clean Air Act and part 70 or 71 of this chapter.
    Ton means 2,000 pounds. For the purpose of determining compliance
with the CAIR SO2 emissions limitation, total tons of sulfur
dioxide emissions for a control period shall be calculated as the sum
of all recorded hourly emissions (or the mass equivalent of the
recorded hourly emission rates) in accordance with subpart HHH of this
part, but with any remaining fraction of a ton equal to or greater than
0.50 tons deemed to equal one ton and any remaining fraction of a ton
less than 0.50 tons deemed to equal zero tons.
    Topping-cycle cogeneration unit means a cogeneration unit in which
the energy input to the unit is first used to produce useful power,
including electricity, and at least some of the reject heat from the
electricity production is then used to provide useful thermal energy.
    Total energy input means, with regard to a cogeneration unit, total
energy of all forms supplied to the cogeneration unit, excluding energy
produced by the cogeneration unit itself.
    Total energy output means, with regard to a cogeneration unit, the
sum of useful power and useful thermal energy produced by the
cogeneration unit.
    Unit means a stationary, fossil-fuel-fired boiler or combustion
turbine or other stationary, fossil-fuel-fired combustion device. Unit
operating day means a calendar day in which a unit combusts any fuel.
    Unit operating hour or hour of unit operation means an hour in
which a unit combusts any fuel.
    Useful power means, with regard to a cogeneration unit, electricity
or mechanical energy made available for use, excluding any such energy
used in the power production process (which process includes, but is
not limited to, any on-site processing or treatment of fuel combusted
at the unit and any on-site emission controls).
    Useful thermal energy means, with regard to a cogeneration unit,
thermal energy that is:
    (1) Made available to an industrial or commercial process (not a
power production process), excluding any heat contained in condensate
return or makeup water;
    (2) Used in a heating application (e.g., space heating or domestic
hot water heating); or
    (3) Used in a space cooling application (i.e., thermal energy used
by an absorption chiller).
    Utility power distribution system means the portion of an
electricity grid owned or operated by a utility and dedicated to
delivering electricity to customers.

Sec.  97.203  Measurements, abbreviations, and acronyms.

    Measurements, abbreviations, and acronyms used in this subpart and
subparts BBB through III are defined as follows:

Btu--British thermal unit.
CO2--carbon dioxide.
H2O--water.
Hg--mercury.

[[Continued on page 25427]]

]

[[pp. 25427-25469]] Rulemaking on Section 126 Petition From North Carolina To Reduce
Interstate Transport of Fine Particulate Matter and Ozone; Federal
Implementation Plans To Reduce Interstate Transport of Fine Particulate
Matter and Ozone; Revisions to the Clean Air Interstate R[[Page 25427]]

[[Continued from page 25426]]

hr--hour.
kW--kilowatt electrical.
kWh--kilowatt hour.
lb--pound.
mmBtu--million Btu.
MWe--megawatt electrical.
MWh--megawatt hour.
NOX--nitrogen oxides.
O2--oxygen.
ppm--parts per million.
scfh--standard cubic feet per hour.
SO2--sulfur dioxide.
yr--year.

Sec.  97.204  Applicability.

    (a) Except as provided in paragraph (b) of this section:
    (1) The following units in a State shall be CAIR SO2
units, and any source that includes one or more such units shall be a
CAIR SO2 source, subject to the requirements of this subpart
and subparts BBB through HHH of this part: any stationary, fossil-fuel-
fired boiler or stationary, fossil-fuel-fired combustion turbine
serving at any time, since the later of November 15, 1990 or the start-
up of the unit's combustion chamber, a generator with nameplate
capacity of more than 25 MWe producing electricity for sale.
    (2) If a stationary boiler or stationary combustion turbine that,
under paragraph (a)(1) of this section, is not a CAIR SO2
unit begins to combust fossil fuel or to serve a generator with
nameplate capacity of more than 25 MWe producing electricity for sale,
the unit shall become a CAIR SO2 unit as provided in
paragraph (a)(1) of this section on the first date on which it both
combusts fossil fuel and serves such generator.
    (b) The units in a State that meet the requirements set forth in
paragraph (b)(1)(i), (b)(2)(i), or (b)(2)(ii) of this section shall not
be CAIR SO2 units:
    (1)(i) Any unit that is a CAIR SO2 unit under paragraph
(a)(1) or (2) of this section:
    (A) Qualifying as a cogeneration unit during the 12-month period
starting on the date the unit first produces electricity and continuing
to qualify as a cogeneration unit; and
    (B) Not serving at any time, since the later of November 15, 1990
or the start-up of the unit's combustion chamber, a generator with
nameplate capacity of more than 25 MWe supplying in any calendar year
more than one-third of the unit's potential electric output capacity or
219,000 MWh, whichever is greater, to any utility power distribution
system for sale.
    (ii) If a unit qualifies as a cogeneration unit during the 12-month
period starting on the date the unit first produces electricity and
meets the requirements of paragraphs (b)(1)(i) of this section for at
least one calendar year, but subsequently no longer meets all such
requirements, the unit shall become a CAIR SO2 unit starting
on the earlier of January 1 after the first calendar year during which
the unit first no longer qualifies as a cogeneration unit or January 1
after the first calendar year during which the unit no longer meets the
requirements of paragraph (b)(1)(i)(B) of this section.
    (2)(i) Any unit that is a CAIR SO2 unit under paragraph
(a)(1) or (2) of this section commencing operation before January 1,
1985:
    (A) Qualifying as a solid waste incineration unit; and
    (B) With an average annual fuel consumption of non-fossil fuel for
1985-1987 exceeding 80 percent (on a Btu basis) and an average annual
fuel consumption of non-fossil fuel for any 3 consecutive calendar
years after 1990 exceeding 80 percent (on a Btu basis).
    (ii) Any unit that is a CAIR SO2 unit under paragraph
(a)(1) or (2) of this section commencing operation on or after January
1, 1985:
    (A) Qualifying as a solid waste incineration unit; and
    (B) With an average annual fuel consumption of non-fossil fuel for
the first 3 calendar years of operation exceeding 80 percent (on a Btu
basis) and an average annual fuel consumption of non-fossil fuel for
any 3 consecutive calendar years after 1990 exceeding 80 percent (on a
Btu basis).
    (iii) If a unit qualifies as a solid waste incineration unit and
meets the requirements of paragraph (b)(2)(i) or (ii) of this section
for at least 3 consecutive calendar years, but subsequently no longer
meets all such requirements, the unit shall become a CAIR
SO2 unit starting on the earlier of January 1 after the
first calendar year during which the unit first no longer qualifies as
a solid waste incineration unit or January 1 after the first 3
consecutive calendar years after 1990 for which the unit has an average
annual fuel consumption of fossil fuel of 20 percent or more.
    (c) A certifying official of an owner or operator of any unit may
petition the Administrator at any time for a determination concerning
the applicability, under paragraphs (a) and (b) of this section, of the
CAIR SO2 Trading Program to the unit.
    (1) Petition content. The petition shall be in writing and include
the identification of the unit and the relevant facts about the unit.
The petition and any other documents provided to the Administrator in
connection with the petition shall include the following certification
statement, signed by the certifying official: ``I am authorized to make
this submission on behalf of the owners and operators of the unit for
which the submission is made. I certify under penalty of law that I
have personally examined, and am familiar with, the statements and
information submitted in this document and all its attachments. Based
on my inquiry of those individuals with primary responsibility for
obtaining the information, I certify that the statements and
information are to the best of my knowledge and belief true, accurate,
and complete. I am aware that there are significant penalties for
submitting false statements and information or omitting required
statements and information, including the possibility of fine or
imprisonment.''
    (2) Submission. The petition and any other documents provided in
connection with the petition shall be submitted to the Director of the
Clean Air Markets Division (or its successor), U.S. Environmental
Protection Agency, who will act on the petition as the Administrator's
duly authorized representative.
    (3) Response. The Administrator will issue a written response to
the petition and may request supplemental information relevant to such
petition. The Administrator's determination concerning the
applicability, under paragraphs (a) and (b) of this section, of the
CAIR SO2 Trading Program to the unit shall be binding on the
permitting authority unless the petition or other information or
documents provided in connection with the petition are found to have
contained significant, relevant errors or omissions.

Sec.  97.205  Retired unit exemption.

    (a)(1) Any CAIR SO2 unit that is permanently retired and
is not a CAIR SO2 opt-in unit under subpart III of this part
shall be exempt from the CAIR SO2 Trading Program, except
for the provisions of this section, Sec. Sec.  97.202, 97.203, 97.204,
97.206(c)(4) through (7), 97.207, 97.208, and subparts BBB, FFF, and
GGG of this part.
    (2) The exemption under paragraph (a)(1) of this section shall
become effective the day on which the CAIR SO2 unit is
permanently retired. Within 30 days of the unit's permanent retirement,
the CAIR designated representative shall submit a statement to the
permitting authority otherwise responsible for administering any CAIR
permit for the unit and shall submit a copy of the statement to the
Administrator. The statement shall state, in a format prescribed by the
permitting authority, that the unit was permanently retired on

a specific date and will comply with the requirements of paragraph (b)
of this section.
    (3) After receipt of the statement under paragraph (a)(2) of this
section, the permitting authority will amend any permit under subpart
CCC of this part covering the source at which the unit is located to
add the provisions and requirements of the exemption under paragraphs
(a)(1) and (b) of this section.
    (b) Special provisions. (1) A unit exempt under paragraph (a) of
this section shall not emit any sulfur dioxide, starting on the date
that the exemption takes effect.
    (2) For a period of 5 years from the date the records are created,
the owners and operators of a unit exempt under paragraph (a) of this
section shall retain, at the source that includes the unit, records
demonstrating that the unit is permanently retired. The 5-year period
for keeping records may be extended for cause, at any time before the
end of the period, in writing by the permitting authority or the
Administrator. The owners and operators bear the burden of proof that
the unit is permanently retired.
    (3) The owners and operators and, to the extent applicable, the
CAIR designated representative of a unit exempt under paragraph (a) of
this section shall comply with the requirements of the CAIR
SO2 Trading Program concerning all periods for which the
exemption is not in effect, even if such requirements arise, or must be
complied with, after the exemption takes effect.
    (4) A unit exempt under paragraph (a) of this section and located
at a source that is required, or but for this exemption would be
required, to have a title V operating permit shall not resume operation
unless the CAIR designated representative of the source submits a
complete CAIR permit application under Sec.  97.222 for the unit not
less than 18 months (or such lesser time provided by the permitting
authority) before the later of January 1, 2010 or the date on which the
unit resumes operation.
    (5) On the earlier of the following dates, a unit exempt under
paragraph (a) of this section shall lose its exemption:
    (i) The date on which the CAIR designated representative submits a
CAIR permit application for the unit under paragraph (b)(4) of this
section;
    (ii) The date on which the CAIR designated representative is
required under paragraph (b)(4) of this section to submit a CAIR permit
application for the unit; or
    (iii) The date on which the unit resumes operation, if the CAIR
designated representative is not required to submit a CAIR permit
application for the unit.
    (6) For the purpose of applying monitoring, reporting, and
recordkeeping requirements under subpart HHH of this part, a unit that
loses its exemption under paragraph (a) of this section shall be
treated as a unit that commences commercial operation on the first date
on which the unit resumes operation.

Sec.  97.206  Standard requirements.

    (a) Permit requirements. (1) The CAIR designated representative of
each CAIR SO2 source required to have a title V operating
permit and each CAIR SO2 unit required to have a title V
operating permit at the source shall:
    (i) Submit to the permitting authority a complete CAIR permit
application under Sec.  97.222 in accordance with the deadlines
specified in Sec.  97.221; and
    (ii) Submit in a timely manner any supplemental information that
the permitting authority determines is necessary in order to review a
CAIR permit application and issue or deny a CAIR permit.
    (2) The owners and operators of each CAIR SO2 source
required to have a title V operating permit and each CAIR
SO2 unit required to have a title V operating permit at the
source shall have a CAIR permit issued by the permitting authority
under subpart CCC of this part for the source and operate the source
and the unit in compliance with such CAIR permit.
    (3) Except as provided in subpart III of this part, the owners and
operators of a CAIR SO2 source that is not otherwise
required to have a title V operating permit and each CAIR
SO2 unit that is not otherwise required to have a title V
operating permit are not required to submit a CAIR permit application,
and to have a CAIR permit, under subpart CCC of this part for such CAIR
SO2 source and such CAIR SO2 unit.
    (b) Monitoring, reporting, and recordkeeping requirements. (1) The
owners and operators, and the CAIR designated representative, of each
CAIR SO2 source and each CAIR SO2 unit at the
source shall comply with the monitoring, reporting, and recordkeeping
requirements of subpart HHH of this part.
    (2) The emissions measurements recorded and reported in accordance
with subpart HHH of this part shall be used to determine compliance by
each CAIR SO2 source with the CAIR SO2 emissions
limitation under paragraph (c) of this section.
    (c) Sulfur dioxide emission requirements. (1) As of the allowance
transfer deadline for a control period, the owners and operators of
each CAIR SO2 source and each CAIR SO2 unit at
the source shall hold, in the source's compliance account, a tonnage
equivalent in CAIR SO2 allowances available for compliance
deductions for the control period, as determined in accordance with
Sec.  97.254(a) and (b), not less than the tons of total sulfur dioxide
emissions for the control period from all CAIR SO2 units at
the source, as determined in accordance with subpart HHH of this part.
    (2) A CAIR SO2 unit shall be subject to the requirements
under paragraph (c)(1) of this section for the control period starting
on the later of January 1, 2010 or the deadline for meeting the unit(s
monitor certification requirements under Sec.  97.270(b)(1),(2), or (5)
and for each control period thereafter.
    (3) A CAIR SO2 allowance shall not be deducted, for
compliance with the requirements under paragraph (c)(1) of this
section, for a control period in a calendar year before the year for
which the CAIR SO2 allowance was allocated.
    (4) CAIR SO2 allowances shall be held in, deducted from,
or transferred into or among CAIR SO2 Allowance Tracking
System accounts in accordance with subparts FFF, GGG, and III of this
part.
    (5) A CAIR SO2 allowance is a limited authorization to
emit sulfur dioxide in accordance with the CAIR SO2 Trading
Program. No provision of the CAIR SO2 Trading Program, the
CAIR permit application, the CAIR permit, or an exemption under Sec.
97.205 and no provision of law shall be construed to limit the
authority of the United States to terminate or limit such
authorization.
    (6) A CAIR SO2 allowance does not constitute a property
right.
    (7) Upon recordation by the Administrator under subpart FFF, GGG,
or III of this part, every allocation, transfer, or deduction of a CAIR
SO2 allowance to or from a CAIR SO2 source's
compliance account is incorporated automatically in any CAIR permit of
the source.
    (d) Excess emissions requirements. If a CAIR SO2 source
emits sulfur dioxide during any control period in excess of the CAIR
SO2 emissions limitation, then:
    (1) The owners and operators of the source and each CAIR
SO2 unit at the source shall surrender the CAIR
SO2 allowances required for deduction under Sec.
97.254(d)(1) and pay any fine, penalty, or assessment or comply with
any other remedy imposed, for the same violations, under the Clean Air
Act or applicable State law; and
    (2) Each ton of such excess emissions and each day of such control
period

shall constitute a separate violation of this subpart, the Clean Air
Act, and applicable State law.
    (e) Recordkeeping and reporting requirements. (1) Unless otherwise
provided, the owners and operators of the CAIR SO2 source
and each CAIR SO2 unit at the source shall keep on site at
the source each of the following documents for a period of 5 years from
the date the document is created. This period may be extended for
cause, at any time before the end of 5 years, in writing by the
permitting authority or the Administrator.
    (i) The certificate of representation under Sec.  97.213 for the
CAIR designated representative for the source and each CAIR
SO2 unit at the source and all documents that demonstrate
the truth of the statements in the certificate of representation;
provided that the certificate and documents shall be retained on site
at the source beyond such 5-year period until such documents are
superseded because of the submission of a new certificate of
representation under Sec.  97.213 changing the CAIR designated
representative.
    (ii) All emissions monitoring information, in accordance with
subpart HHH of this part, provided that to the extent that subpart HHH
of this part provides for a 3-year period for recordkeeping, the 3-year
period shall apply.
    (iii) Copies of all reports, compliance certifications, and other
submissions and all records made or required under the CAIR
SO2 Trading Program.
    (iv) Copies of all documents used to complete a CAIR permit
application and any other submission under the CAIR SO2
Trading Program or to demonstrate compliance with the requirements of
the CAIR SO2 Trading Program.
    (2) The CAIR designated representative of a CAIR SO2
source and each CAIR SO2 unit at the source shall submit the
reports required under the CAIR SO2 Trading Program,
including those under subpart HHH of this part.
    (f) Liability. (1) Each CAIR SO2 source and each CAIR
SO2 unit shall meet the requirements of the CAIR
SO2 Trading Program.
    (2) Any provision of the CAIR SO2 Trading Program that
applies to a CAIR SO2 source or the CAIR designated
representative of a CAIR SO2 source shall also apply to the
owners and operators of such source and of the CAIR SO2
units at the source.
    (3) Any provision of the CAIR SO2 Trading Program that
applies to a CAIR SO2 unit or the CAIR designated
representative of a CAIR SO2 unit shall also apply to the
owners and operators of such unit.
    (g) Effect on other authorities. No provision of the CAIR
SO2 Trading Program, a CAIR permit application, a CAIR
permit, or an exemption under Sec.  97.205 shall be construed as
exempting or excluding the owners and operators, and the CAIR
designated representative, of a CAIR SO2 source or CAIR
SO2 unit from compliance with any other provision of the
applicable, approved State implementation plan, a federally enforceable
permit, or the Clean Air Act.

Sec.  97.207  Computation of time.

    (a) Unless otherwise stated, any time period scheduled, under the
CAIR SO2 Trading Program, to begin on the occurrence of an
act or event shall begin on the day the act or event occurs.
    (b) Unless otherwise stated, any time period scheduled, under the
CAIR SO2 Trading Program, to begin before the occurrence of
an act or event shall be computed so that the period ends the day
before the act or event occurs.
    (c) Unless otherwise stated, if the final day of any time period,
under the CAIR SO2 Trading Program, falls on a weekend or a
State or Federal holiday, the time period shall be extended to the next
business day.

Sec.  97.208  Appeal procedures.

    The appeal procedures for decisions of the Administrator under the
CAIR SO2 Trading Program are set forth in part 78 of this
chapter.

Subpart BBB--CAIR Designated Representative for CAIR SO2
Sources

Sec.  97.210  Authorization and responsibilities of CAIR designated
representative.

    (a) Except as provided under Sec.  97.211, each CAIR SO2
source, including all CAIR SO2 units at the source, shall
have one and only one CAIR designated representative, with regard to
all matters under the CAIR SO2 Trading Program concerning
the source or any CAIR SO2 unit at the source.
    (b) The CAIR designated representative of the CAIR SO2
source shall be selected by an agreement binding on the owners and
operators of the source and all CAIR SO2 units at the source
and shall act in accordance with the certification statement in Sec.
97.213(a)(4)(iv).
    (c) Upon receipt by the Administrator of a complete certificate of
representation under Sec.  97.213, the CAIR designated representative
of the source shall represent and, by his or her representations,
actions, inactions, or submissions, legally bind each owner and
operator of the CAIR SO2 source represented and each CAIR
SO2 unit at the source in all matters pertaining to the CAIR
SO2 Trading Program, notwithstanding any agreement between
the CAIR designated representative and such owners and operators. The
owners and operators shall be bound by any decision or order issued to
the CAIR designated representative by the permitting authority, the
Administrator, or a court regarding the source or unit.
    (d) No CAIR permit will be issued, no emissions data reports will
be accepted, and no CAIR SO2 Allowance Tracking System
account will be established for a CAIR SO2 unit at a source,
until the Administrator has received a complete certificate of
representation under Sec.  97.213 for a CAIR designated representative
of the source and the CAIR SO2 units at the source.
    (e)(1) Each submission under the CAIR SO2 Trading
Program shall be submitted, signed, and certified by the CAIR
designated representative for each CAIR SO2 source on behalf
of which the submission is made. Each such submission shall include the
following certification statement by the CAIR designated
representative: ``I am authorized to make this submission on behalf of
the owners and operators of the source or units for which the
submission is made. I certify under penalty of law that I have
personally examined, and am familiar with, the statements and
information submitted in this document and all its attachments. Based
on my inquiry of those individuals with primary responsibility for
obtaining the information, I certify that the statements and
information are to the best of my knowledge and belief true, accurate,
and complete. I am aware that there are significant penalties for
submitting false statements and information or omitting required
statements and information, including the possibility of fine or
imprisonment.''
    (2) The permitting authority and the Administrator will accept or
act on a submission made on behalf of owner or operators of a CAIR
SO2 source or a CAIR SO2 unit only if the
submission has been made, signed, and certified in accordance with
paragraph (e)(1) of this section.

Sec.  97.211  Alternate CAIR designated representative.

    (a) A certificate of representation under Sec.  97.213 may
designate one and only one alternate CAIR designated representative,
who may act on behalf of the CAIR designated representative. The
agreement by which the alternate CAIR designated representative is
selected shall include a procedure for authorizing the alternate CAIR

designated representative to act in lieu of the CAIR designated
representative.
    (b) Upon receipt by the Administrator of a complete certificate of
representation under Sec.  97.213, any representation, action,
inaction, or submission by the alternate CAIR designated representative
shall be deemed to be a representation, action, inaction, or submission
by the CAIR designated representative.
    (c) Except in this section and Sec. Sec.  97.202, 97.210(a) and
(d), 97.212, 97.213, 97.215, 97.251 and 97.282, whenever the term
``CAIR designated representative'' is used in subparts AAA through III
of this part, the term shall be construed to include the CAIR
designated representative or any alternate CAIR designated
representative.

Sec.  97.212  Changing CAIR designated representative and alternate
CAIR designated representative; changes in owners and operators.

    (a) Changing CAIR designated representative. The CAIR designated
representative may be changed at any time upon receipt by the
Administrator of a superseding complete certificate of representation
under Sec.  97.213. Notwithstanding any such change, all
representations, actions, inactions, and submissions by the previous
CAIR designated representative before the time and date when the
Administrator receives the superseding certificate of representation
shall be binding on the new CAIR designated representative and the
owners and operators of the CAIR SO2 source and the CAIR
SO2 units at the source.
    (b) Changing alternate CAIR designated representative. The
alternate CAIR designated representative may be changed at any time
upon receipt by the Administrator of a superseding complete certificate
of representation under Sec.  97.213. Notwithstanding any such change,
all representations, actions, inactions, and submissions by the
previous alternate CAIR designated representative before the time and
date when the Administrator receives the superseding certificate of
representation shall be binding on the new alternate CAIR designated
representative and the owners and operators of the CAIR SO2
source and the CAIR SO2 units at the source.
    (c) Changes in owners and operators. (1) In the event an owner or
operator of a CAIR SO2 source or a CAIR SO2 unit
is not included in the list of owners and operators in the certificate
of representation under Sec.  97.213, 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 CAIR
designated representative and any alternate CAIR designated
representative of the source or unit, and the decisions and orders of
the permitting authority, the Administrator, or a court, as if the
owner or operator were included in such list.
    (2) Within 30 days following any change in the owners and operators
of a CAIR SO2 source or a CAIR SO2 unit,
including the addition of a new owner or operator, the CAIR designated
representative or any alternate CAIR designated representative shall
submit a revision to the certificate of representation under Sec.
97.213 amending the list of owners and operators to include the change.

Sec.  97.213  Certificate of representation.

    (a) A complete certificate of representation for a CAIR designated
representative or an alternate CAIR designated representative shall
include the following elements in a format prescribed by the
Administrator:
    (1) Identification of the CAIR SO2 source, and each CAIR
SO2 unit at the source, for which the certificate of
representation is submitted, including identification and nameplate
capacity of each generator served by each such unit.
    (2) The name, address, e-mail address (if any), telephone number,
and facsimile transmission number (if any) of the CAIR designated
representative and any alternate CAIR designated representative.
    (3) A list of the owners and operators of the CAIR SO2
source and of each CAIR SO2 unit at the source.
    (4) The following certification statements by the CAIR designated
representative and any alternate CAIR designated representative--
    (i) ``I certify that I was selected as the CAIR designated
representative or alternate CAIR designated representative, as
applicable, by an agreement binding on the owners and operators of the
source and each CAIR SO2 unit at the source.''
    (ii) ``I certify that I have all the necessary authority to carry
out my duties and responsibilities under the CAIR SO2
Trading Program on behalf of the owners and operators of the source and
of each CAIR SO2 unit at the source and that each such owner
and operator shall be fully bound by my representations, actions,
inactions, or submissions.''
    (iii) ``I certify that the owners and operators of the source and
of each CAIR SO2 unit at the source shall be bound by any
order issued to me by the Administrator, the permitting authority, or a
court regarding the source or unit.''
    (iv) ``Where there are multiple holders of a legal or equitable
title to, or a leasehold interest in, a CAIR SO2 unit, or
where a utility or industrial customer purchases power from a CAIR
SO2 unit under a life-of-the-unit, firm power contractual
arrangement, I certify that: I have given a written notice of my
selection as the `CAIR designated representative' or `alternate CAIR
designated representative', as applicable, and of the agreement by
which I was selected to each owner and operator of the source and of
each CAIR SO2 unit at the source; and CAIR SO2
allowances and proceeds of transactions involving CAIR SO2
allowances will be deemed to be held or distributed in proportion to
each holder's legal, equitable, leasehold, or contractual reservation
or entitlement, except that, if such multiple holders have expressly
provided for a different distribution of CAIR SO2 allowances
by contract, CAIR SO2 allowances and proceeds of
transactions involving CAIR SO2 allowances will be deemed to
be held or distributed in accordance with the contract.''
    (5) The signature of the CAIR designated representative and any
alternate CAIR designated representative and the dates signed.
    (b) Unless otherwise required by the permitting authority or the
Administrator, documents of agreement referred to in the certificate of
representation shall not be submitted to the permitting authority or
the Administrator. Neither the permitting authority nor the
Administrator shall be under any obligation to review or evaluate the
sufficiency of such documents, if submitted.

Sec.  97.214  Objections concerning CAIR designated representative.

    (a) Once a complete certificate of representation under Sec.
97.213 has been submitted and received, the permitting authority and
the Administrator will rely on the certificate of representation unless
and until a superseding complete certificate of representation under
Sec.  97.213 is received by the Administrator.
    (b) Except as provided in Sec.  97.212(a) or (b), no objection or
other communication submitted to the permitting authority or the
Administrator concerning the authorization, or any representation,
action, inaction, or submission, of the CAIR designated representative
shall affect any representation, action, inaction, or submission of the
CAIR designated representative or the finality

of any decision or order by the permitting authority or the
Administrator under the CAIR SO2 Trading Program.
    (c) Neither the permitting authority nor the Administrator will
adjudicate any private legal dispute concerning the authorization or
any representation, action, inaction, or submission of any CAIR