Unit operating hour or hour of unit operation means an hour in
which a unit combusts any fuel.
    Useful power means electricity or mechanical energy that a unit
makes available for use, excluding any such energy used in the power
production process (which process includes, but is not limited to, any
on-site processing or treatment of fuel combusted at the unit and any
on-site emission controls).
    Useful thermal energy means thermal energy that is:
    (1) Made available to an industrial or commercial process (not a
power production process), excluding any heat contained in condensate
return or makeup water;
    (2) Used in a heating application (e.g., space heating or domestic
hot water heating); or
    (3) Used in a space cooling application (i.e., in an absorption
chiller).
    Utility power distribution system means the portion of an
electricity grid owned or operated by a utility and dedicated to
delivering electricity to customers.

Sec.  97.703  Measurements, abbreviations, and acronyms.

    Measurements, abbreviations, and acronyms used in this subpart are
defined as follows:

Btu--British thermal unit
CO2--carbon dioxide
H2O--water
hr--hour
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.  97.704  Applicability.

    (a) Except as provided in paragraph (b) of this section:
    (1) The following units in a State shall be TR SO2 Group
2 units, and any source that includes one or more such units shall be a
TR SO2 Group 2 source, subject to the requirements of this
subpart: Any stationary, fossil-fuel-fired boiler or stationary,
fossil-fuel-fired combustion turbine serving at any time, 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 TR SO2
Group 2 unit begins to combust fossil fuel or to serve a generator with
nameplate capacity of more than 25 MWe producing electricity for sale,
the unit shall become a TR SO2 Group 2 unit as provided in
paragraph (a)(1) of this section on the first date on which it both
combusts fossil fuel and serves such generator.
    (b) Any unit in a State that otherwise is a TR SO2 Group
2 unit under paragraph (a) of this section and that meets the
requirements set forth in paragraph (b)(1)(i), (b)(2)(i), or (b)(2)(ii)
of this section shall not be a TR SO2 Group 2 unit:
    (1)(i) Any unit:
    (A) Qualifying as a cogeneration unit during the later of 1990 or
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 later of
1990 or 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 such qualification and requirements, the unit shall become
a TR SO2 Group 2 unit starting on the earlier of January 1
after the first calendar year during which the unit first no longer
qualifies as a cogeneration unit or January 1 after the first calendar
year during which the unit no longer meets the requirements of
paragraph (b)(1)(i)(B) of this section.
    (2)(i) Any unit commencing operation before January 1, 1985:
    (A) Qualifying as a solid waste incineration unit during the later
of 1990 or the 12-month period starting on the date the unit first
produces electricity and continuing to qualify as a solid waste
incineration unit; and
    (B) With an average annual fuel consumption of fossil fuel for
1985-1987 less than 20 percent (on a Btu

basis) and an average annual fuel consumption of fossil fuel for any 3
consecutive calendar years after 1990 less than 20 percent (on a Btu
basis).
    (ii) Any unit commencing operation on or after January 1, 1985:
    (A) Qualifying as a solid waste incineration unit during the later
of 1990 or the 12-month period starting on the date the unit first
produces electricity and continuing to qualify as a solid waste
incineration unit; and
    (B) With an average annual fuel consumption of fossil fuel for the
first 3 calendar years of operation less than 20 percent (on a Btu
basis) and an average annual fuel consumption of fossil fuel for any 3
consecutive calendar years after 1990 less than 20 percent (on a Btu
basis).
    (iii) If a unit qualifies as a solid waste incineration unit during
the later of 1990 or the 12-month period starting on the date the unit
first produces electricity 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 such qualification and
requirements, the unit shall become a TR SO2 Group 2 unit
starting on the earlier of January 1 after the first calendar year
during which the unit first no longer qualifies as a solid waste
incineration unit or January 1 after the first 3 consecutive calendar
years after 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 or
other equipment may submit a petition (including any supporting
documents) to the Administrator at any time for a determination
concerning the applicability, under paragraphs (a) and (b) of this
section, of the TR SO2 Group 2 Trading Program to the unit
or other equipment.
    (1) Petition content. The petition shall be in writing and include
the identification of the unit or other equipment and the relevant
facts about the unit or other equipment. The petition and any other
documents provided to the Administrator in connection with the petition
shall include the following certification statement, signed by the
certifying official: ``I am authorized to make this submission on
behalf of the owners and operators of the unit or other equipment for
which the submission is made. I certify under penalty of law that I
have personally examined, and am familiar with, the statements and
information submitted in this document and all its attachments. Based
on my inquiry of those individuals with primary responsibility for
obtaining the information, I certify that the statements and
information are to the best of my knowledge and belief true, accurate,
and complete. I am aware that there are significant penalties for
submitting false statements and information or omitting required
statements and information, including the possibility of fine or
imprisonment.''
    (2) Response. The Administrator will issue a written response to
the petition and may request supplemental information determined by the
Administrator to be relevant to such petition. The Administrator's
determination concerning the applicability, under paragraphs (a) and
(b) of this section, of the TR SO2 Group 2 Trading Program
to the unit or other equipment shall be binding on any permitting
authority unless the Administrator determines that the petition or
other documents or information provided in connection with the petition
contained significant, relevant errors or omissions.

Sec.  97.705  Retired unit exemption.

    (a)(1) Any TR SO2 Group 2 unit that is permanently
retired and is not a TR SO2 Group 2 opt-in unit shall be
exempt from Sec.  97.706(b) and (c)(1), Sec.  97.724, and Sec. Sec.
97.730 through 97.735.
    (2) The exemption under paragraph (a)(1) of this section shall
become effective the day on which the TR SO2 Group 2 unit is
permanently retired. Within 30 days of the unit's permanent retirement,
the designated representative shall submit a statement to the
Administrator. The statement shall state, in a format prescribed by the
Administrator, that the unit was permanently retired on a specified
date and will comply with the requirements of paragraph (b) of this
section.
    (b) Special provisions. (1) A unit exempt under paragraph (a) of
this section shall not emit any SO2, starting on the date
that the exemption takes effect.
    (2) For a period of 5 years from the date the records are created,
the owners and operators of a unit exempt under paragraph (a) of this
section shall retain, at the source that includes the unit, records
demonstrating that the unit is permanently retired. The 5-year period
for keeping records may be extended for cause, at any time before the
end of the period, in writing by the Administrator. The owners and
operators bear the burden of proof that the unit is permanently
retired.
    (3) The owners and operators and, to the extent applicable, the
designated representative of a unit exempt under paragraph (a) of this
section shall comply with the requirements of the TR SO2
Group 2 Trading Program concerning all periods for which the exemption
is not in effect, even if such requirements arise, or must be complied
with, after the exemption takes effect.
    (4) A unit exempt under paragraph (a) of this section shall lose
its exemption on the first date on which the unit resumes operation.
Such unit shall be treated, for purposes of applying allocation,
monitoring, reporting, and recordkeeping requirements under this
subpart, as a unit that commences commercial operation on the first
date on which the unit resumes operation.

Sec.  97.706  Standard requirements.

    (a) Designated representative requirements. The owners and
operators shall comply with the requirement to have a designated
representative, and may have an alternate designated representative, in
accordance with Sec. Sec.  97.713 through 97.718.
    (b) Emissions monitoring, reporting, and recordkeeping
requirements. (1) The owners and operators, and the designated
representative, of each TR SO2 Group 2 source and each TR
SO2 Group 2 unit at the source shall comply with the
monitoring, reporting, and recordkeeping requirements of Sec. Sec.
97.730 through 97.735.
    (2) The emissions data determined in accordance with Sec. Sec.
97.730 through 97.735 shall be used to calculate allocations of TR
SO2 Group 2 allowances under Sec. Sec.  97.711(a)(2) and (b)
and 97.712 and to determine compliance with the TR SO2 Group
2 emissions limitation and assurance provisions under paragraph (c) of
this section, provided that, for each monitoring location from which
mass emissions are reported, the mass emissions amount used in
calculating such allocations and determining such compliance shall be
the mass emissions amount for the monitoring location determined in
accordance with Sec. Sec.  97.730 through 97.735 and rounded to the
nearest ton, with any fraction of a ton less than 0.50 being deemed to
be zero.
    (c) SO2 emissions requirements. (1) TR SO2 Group 2
emissions limitation. (i) As of the allowance transfer deadline for a
control period, the owners and operators of each TR SO2
Group 2 source and each TR SO2 Group 2 unit at the source
shall hold, in the source's compliance account, TR SO2 Group
2 allowances available for deduction for such control period under
Sec.  97.724(a) in an amount not less than the tons of total
SO2 emissions for such control period from all TR
SO2 Group 2 units at the source.

    (ii) If a TR SO2 Group 2 source emits SO2
during any control period in excess of the TR SO2 Group 2
emissions limitation set forth in paragraph (c)(1)(i) of this section,
then:
    (A) The owners and operators of the source and each TR
SO2 Group 2 unit at the source shall hold the TR
SO2 Group 2 allowances required for deduction under Sec.
97.724(d) and pay any fine, penalty, or assessment or comply with any
other remedy imposed, for the same violations, under the Clean Air Act;
and
    (B) Each ton of such excess emissions and each day of such control
period shall constitute a separate violation of this subpart and the
Clean Air Act.
    (2) TR SO2 Group 2 assurance provisions. (i) If the total amount of
SO2 emissions from all TR SO2 Group 2 units in a
State during a control period in 2014 or any year thereafter exceeds
the State assurance level as described in paragraph (c)(2)(iii) of this
section, then each owner whose share of such SO2 emissions
during such control period exceeds the owner's assurance level for the
State and such control period shall hold, in a compliance account
designated by the owner in accordance with Sec.  97.725(b)(4)(ii), TR
SO2 Group 2 allowances available for deduction for such
control period under Sec.  97.725(a) in an amount equal to the product,
as determined by the Administrator in accordance with Sec.  97.725(b),
of multiplying--
    (A) The quotient (rounded to the nearest whole number) of the
amount by which the owner's share of such SO2 emissions
exceeds the owner's assurance level divided by the sum of the amounts,
determined for all such owners, by which each owner's share of such
SO2 emissions exceeds that owner's assurance level; and
    (B) The amount by which total SO2 emissions for all TR
SO2 Group 2 units in the State for such control period
exceed the State assurance level as determined in accordance with
paragraph (c)(2)(iii) of this section.
    (ii) The owner shall hold the TR SO2 Group 2 allowances
required under paragraph (c)(2)(i) of this section, as of midnight of
November 1 (if it is a business day), or midnight of the first business
day thereafter (if November 1 is not a business day), immediately after
such control period.
    (iii) The total amount of SO2 emissions from all TR
SO2 Group 2 units in a State during a control period in 2014
or any year thereafter exceeds the State assurance level:
    (A) If such total amount of SO2 emissions exceeds the
sum, for such control period, of the State SO2 Group 2
trading budget and the State's one-year variability limit under Sec.
97.710(b); or
    (B) If, with regard to a control period in 2016 or any year
thereafter, the sum, divided by three, of such total amount of
SO2 emissions and the total amounts of SO2
emissions from all TR SO2 Group 2 units in the State during
the control periods in the immediately preceding two years exceeds the
sum, for such control period, of the State SO2 Group 2
trading budget and the State's three-year variability limit under Sec.
97.710(b);
    (C) Provided that the amount by which such total amount of
SO2 emissions exceeds the State assurance level shall be the
greater of the amounts of the exceedance calculated under paragraph
(c)(2)(iii)(A) of this section and under paragraph (c)(2)(iii)(B) of
this section.
    (iv) It shall not be a violation of this subpart or of the Clean
Air Act if the total amount of SO2 emissions from all TR
SO2 Group 2 units in a State during a control period exceeds
the State assurance level or if an owner's share of total
SO2 emissions from the TR SO2 Group 2 units in a
State during a control period exceeds the owner's assurance level.
    (v) To the extent an owner fails to hold TR SO2 Group 2
allowances for a control period in accordance with paragraphs (c)(2)(i)
and (ii) of this section,
    (A) The owner shall pay any fine, penalty, or assessment or comply
with any other remedy imposed under the Clean Air Act; and
    (B) Each TR SO2 Group 2 allowance that the owner fails
to hold for a control period in accordance with paragraphs (c)(2)(i)
and (ii) of this section and each day of such control period shall
constitute a separate violation of this subpart and the Clean Air Act.
    (3) Compliance periods. A TR SO2 Group 2 unit shall be
subject to the requirements:
    (i) Under paragraph (c)(1) of this section for the control period
starting on the later of January 1, 2012 or the deadline for meeting
the unit's monitor certification requirements under Sec.  97.730(b) and
for each control period thereafter; and
    (ii) Under paragraph (c)(2) of this section for the control period
starting on the later of January 1, 2014 or the deadline for meeting
the unit's monitor certification requirements under Sec.  97.730(b) and
for each control period thereafter.
    (4) Vintage of deducted allowances. A TR SO2 Group 2
allowance shall not be deducted, for compliance with the requirements
under paragraphs (c)(1) and (2) of this section, for a control period
in a calendar year before the year for which the TR SO2
Group 2 allowance was allocated.
    (5) Allowance Management System requirements. Each TR
SO2 Group 2 allowance shall be held in, deducted from, or
transferred into, out of, or between Allowance Management System
accounts in accordance with this subpart.
    (6) Limited authorization. (i) A TR SO2 Group 2
allowance is a limited authorization to emit one ton of SO2
in accordance with the TR SO2 Group 2 Trading Program.
    (ii) Notwithstanding any other provision of this subpart, the
Administrator has the authority to terminate or limit such
authorization to the extent the Administrator determines is necessary
or appropriate to implement any provision of the Clean Air Act.
    (7) Property right. A TR SO2 Group 2 allowance does not
constitute a property right.
    (d) Title V Permit requirements. (1) No title V permit revision
shall be required for any allocation, holding, deduction, or transfer
of TR SO2 Group 2 allowances in accordance with this
subpart.
    (2) A description of whether a unit is required to monitor and
report SO2 emissions using a continuous emission monitoring
system (under Sec. Sec.  75.10, 75.11, and 75.16 of this chapter), an
excepted monitoring system (under appendix D to part 75 of this
chapter), a low mass emissions excepted monitoring methodology (under
Sec.  75.19 of this chapter), or an alternative monitoring system
(under subpart E of part 75 of this chapter) in accordance with
Sec. Sec.  97.730 through 97.735 may be added to, or changed in, a
title V permit using minor permit modification procedures in accordance
with Sec. Sec.  70.7(e)(2) and 71.7(e)(1) of this chapter, provided
that the requirements applicable to the described monitoring and
reporting (as added or changed, respectively) are already incorporated
in such permit. This paragraph explicitly provides that the addition
of, or change to, a unit's description as described in the prior
sentence is eligible for minor permit modification procedures in
accordance with Sec. Sec.  70.7(e)(2)(i)(B) and 71.7(e)(1)(i)(B) of
this chapter.
    (e) Additional recordkeeping and reporting requirements. (1) Unless
otherwise provided, the owners and operators of each TR SO2
Group 2 source and each TR SO2 Group 2 unit at the source
shall keep on site at the source each of the following documents (in
hardcopy or electronic format) for a

period of 5 years from the date the document is created. This period
may be extended for cause, at any time before the end of 5 years, in
writing by the Administrator.
    (i) The certificate of representation under Sec.  97.716 for the
designated representative for the source and each TR SO2
Group 2 unit at the source and all documents that demonstrate the truth
of the statements in the certificate of representation; provided that
the certificate and documents shall be retained on site at the source
beyond such 5-year period until such documents are superseded because
of the submission of a new certificate of representation under Sec.
97.716 changing the designated representative.
    (ii) All emissions monitoring information, in accordance with this
subpart.
    (iii) Copies of all reports, compliance certifications, and other
submissions and all records made or required under, or to demonstrate
compliance with the requirements of, the TR SO2 Group 2
Trading Program, including any monitoring plans and monitoring system
certification and recertification applications.
    (2) The designated representative of a TR SO2 Group 2
source and each TR SO2 Group 2 unit at the source shall make
all submissions required under the TR SO2 Group 2 Trading
Program, including any submissions required for compliance with the TR
SO2 Group 2 assurance provisions. This requirement does not
change, create an exemption from, or otherwise affect the responsible
official submission requirements under a title V operating permit
program in parts 70 and 71 of this chapter.
    (f) Liability. (1) Any provision of the TR SO2 Group 2
Trading Program that applies to a TR SO2 Group 2 source or
the designated representative of a TR SO2 Group 2 source
shall also apply to the owners and operators of such source and of the
TR SO2 Group 2 units at the source.
    (2) Any provision of the TR SO2 Group 2 Trading Program
that applies to a TR SO2 Group 2 unit or the designated
representative of a TR SO2 Group 2 unit shall also apply to
the owners and operators of such unit.
    (g) Effect on other authorities. No provision of the TR
SO2 Group 2 Trading Program or exemption under Sec.  97.705
shall be construed as exempting or excluding the owners and operators,
and the designated representative, of a TR SO2 Group 2
source or TR SO2 Group 2 unit from compliance with any other
provision of the applicable, approved State implementation plan, a
federally enforceable permit, or the Clean Air Act.

Sec.  97.707  Computation of time.

    (a) Unless otherwise stated, any time period scheduled, under the
TR SO2 Group 2 Trading Program, to begin on the occurrence
of an act or event shall begin on the day the act or event occurs.
    (b) Unless otherwise stated, any time period scheduled, under the
TR SO2 Group 2 Trading Program, to begin before the
occurrence of an act or event shall be computed so that the period ends
the day before the act or event occurs.
    (c) Unless otherwise stated, if the final day of any time period,
under the TR SO2 Group 2 Trading Program, falls on a weekend
or a State or Federal holiday, the time period shall be extended to the
next business day.

Sec.  97.708  Administrative appeal procedures.

    The administrative appeal procedures for decisions of the
Administrator under the TR SO2 Group 2 Trading Program are
set forth in part 78 of this chapter.

Sec.  97.709  [Reserved]

Sec.  97.710  State SO2 Group 2 trading budgets, new-unit set-asides,
and variability limits.

    (a) The State SO2 Group 2 trading budgets and new-unit
set-asides for allocations of TR SO2 Group 2 allowances for
the control periods in 2012 and thereafter are as follows:

------------------------------------------------------------------------
                                         SO2 group 2      New-unit set-
                                       trading budget     aside  (tons)
                                          (tons) *     -----------------
                State                ------------------
                                        For 2012 and      For 2012 and
                                         thereafter        thereafter
------------------------------------------------------------------------
Alabama.............................           161,871             4,856
Connecticut.........................             3,059                92
Delaware............................             7,784               234
District of Columbia................               337                10
Florida.............................           161,739             4,852
Kansas..............................            57,275             1,718
Louisiana...........................            90,477             2,714
Maryland............................            39,665             1,190
Massachusetts.......................             7,902               237
Minnesota...........................            47,101             1,413
Nebraska............................            71,598             2,148
New Jersey..........................            11,291               339
South Carolina......................           116,483             3,494
                                     -----------------------------------
    Total...........................           776,582            23,297
------------------------------------------------------------------------
* Without variability limits.

    (b) The States' one-year and three-year variability limits for the
State SO2 Group 2 trading budgets for the control periods in
2014 and thereafter are as follows:

------------------------------------------------------------------------
                                          One-year         Three-year
                                         variability       variability
                                           limits            limits
                State                -----------------------------------
                                          2014 and          2016 and
                                         thereafter        thereafter
                                           (tons)            (tons)
------------------------------------------------------------------------
Alabama.............................            16,187             9,346
Connecticut.........................             1,700               981
Delaware............................             1,700               981
District of Columbia................             1,700               981
Florida.............................            16,174             9,338
Kansas..............................             5,728             3,307
Louisiana...........................             9,048             5,224
Maryland............................             3,967             2,290
Massachusetts.......................             1,700               981
Minnesota...........................             4,710             2,719
Nebraska............................             7,160             4,134
New Jersey..........................             1,700               981
South Carolina......................            11,648             6,725
------------------------------------------------------------------------

Sec.  97.711  Timing requirements for TR SO2 Group 2 allowance
allocations.

    (a) Existing units. (1) TR SO2 Group 2 allowances are
allocated, for the control periods in 2012 and each year thereafter, as
set forth in appendix A to this subpart. Listing a unit in such
appendix does not constitute a determination that the unit is a TR
SO2 Group 2 unit, and not listing a unit in such appendix
does not constitute a determination that the unit is not a TR
SO2 Group 2 unit.
    (2) Notwithstanding paragraph (a)(1) of this section, if a unit
listed in appendix A to this subpart as being allocated TR
SO2 Group 2 allowances does not operate, starting after
2011, during the control period in three consecutive years, such unit
will not be allocated the TR SO2 Group 2 allowances set
forth in appendix A to this subpart for the unit for the control
periods in the seventh year after the first such year and in each year
after that seventh year. All TR SO2 Group 2 allowances that
would otherwise have been allocated to such unit will be allocated to
the new unit set-aside for the respective years involved. If such unit
resumes operation, the Administrator will allocate TR SO2
Group 2 allowances to the unit in accordance with paragraph (b) of this
section.
    (b) New units. (1) By July 1, 2012, and July 1 of each year
thereafter, the Administrator will calculate the TR SO2
Group 2 allowance allocation for each TR SO2 Group 2 unit,
in accordance with Sec.  97.712, for the control period in the year of
the applicable calculation deadline under this paragraph and will
promulgate a notice of availability of the results of the calculations.
    (2) For each notice of data availability required in paragraph
(b)(1) of this section, the Administrator will provide an opportunity
for submission of objections to the calculations referenced in such
notice.
    (i) Objections shall be submitted by the deadline specified in such
notice and shall be limited to addressing whether the calculations are
in accordance with Sec.  97.712 and Sec. Sec.  97.706(b)(2) and 97.730
through 97.735.
    (ii) The Administrator will adjust the calculations to the extent
necessary to ensure that they are in accordance with the provisions
referenced in paragraph (b)(2)(i) of this section. By September 1
immediately after the promulgation of such notice, the Administrator
will promulgate a notice of availability of any adjustments that the
Administrator determines to be necessary and the reasons for accepting
or rejecting any objections submitted in accordance with paragraph
(b)(2)(i) of this section.
    (c) Units that are not TR SO2 Group 2 units. For each control
period in 2012 and thereafter, if the Administrator determines that TR
SO2 Group 2 allowances were allocated under paragraph (a) of
this section for the control period to a recipient that is not actually
a TR SO2 Group 2 unit under Sec.  97.704 as of January 1,
2012, or whose deadline for meeting monitor certification requirements
under Sec.  97.730(b)(1) and (2) is after January 1, 2012, or if the
Administrator determines that TR SO2 Group 2 allowances were
allocated under paragraph (b) of this section and Sec.  97.712 for the
control period to a recipient that is not actually a TR SO2
Group 2 unit under Sec.  97.704 as of January 1 of the control period,
then the Administrator will notify the designated representative and
will act in accordance with the following procedures:
    (1) Except as provided in paragraph (c)(2) or (3) of this section,
the Administrator will not record such TR SO2 Group 2
allowances under Sec.  97.721.
    (2) If the Administrator already recorded such TR SO2
Group 2 allowances under Sec.  97.721 and if the Administrator makes
such determination before making deductions for the source that
includes such recipient under Sec.  97.724(b) for such control period,
then the Administrator will deduct from the account in which such TR
SO2 Group 2 allowances were recorded an amount of TR
SO2 Group 2 allowances allocated for the same or a prior
control period equal to the amount of such already recorded TR
SO2 Group 2 allowances. The authorized account
representative shall ensure that there are sufficient TR SO2
Group 2 allowances in such account for completion of the deduction.
    (3) If the Administrator already recorded such TR SO2
Group 2 allowances under Sec.  97.721 and if the Administrator makes
such determination after making deductions for the source that includes
such recipient under Sec.  97.724(b) for such control period, then the
Administrator will not make any deduction to take account of such
already recorded TR SO2 Group 2 allowances.
    (4) The Administrator will transfer the TR SO2 Group 2
allowances that are not recorded, or that are deducted, in accordance
with paragraphs (c)(1) and (2) of this section to the new unit set-
aside, for the State in which such recipient is located, for the
control period in the year of such transfer if the notice required in
paragraph (b)(1) of this section for the control period in that year
has not been promulgated or, such notice has been promulgated, in the
next year.

Sec.  97.712  TR SO2 Group 2 allowance allocations for new units.

    (a) For each control period in 2012 and thereafter, the
Administrator will allocate, in accordance with the following
procedures, TR SO2 Group 2 allowances to TR SO2
Group 2 units in a State that are not listed in appendix A to this
subpart, to TR SO2 Group 2 units that are so listed and
whose allocation of SO2 Group 2 allowances for such control
period is covered by Sec.  97.711(c)(1) or (2), and to TR
SO2 Group 2 units that are so listed and, pursuant to Sec.
97.711(a)(2), are not allocated TR SO2 Group 2 allowances
for such control period but that operate during the immediately
preceding control period:
    (1) The Administrator will establish a separate new unit set-aside
for each State for each control period in a given year. Each new unit
set-aside will be allocated TR SO2 Group 2 allowances in an
amount equal to the applicable amount of tons of SO2
emissions as set forth in Sec.  97.710(a). Each new unit set-aside will
be allocated additional TR SO2 Group 2 allowances in
accordance with Sec.  97.711(a)(2) and (c)(4).
    (2) The designated representative of such TR SO2 Group 2
unit may submit to the Administrator a request, in a format prescribed
by the Administrator, to be allocated TR SO2 Group 2
allowances for a control period, starting with the later of the control
period in 2012, the first control period after the control period in
which the TR SO2 Group 2 unit commences commercial operation
(for a unit not listed in appendix A to this subpart), or the first
control period after the control period in which the unit resumes
operation (for a unit listed in appendix A of this subpart) and for
each subsequent control period.
    (i) The request must be submitted on or before May 1 of the first
control period for which TR SO2 Group 2 allowances are
sought and after the date on which the TR SO2 Group 2 unit
commences commercial operation (for a unit not listed in appendix A of
this subpart) or on which the unit resumes operation (for a unit listed
in appendix A of this subpart).
    (ii) For each control period for which an allocation is sought, the
request must be for TR SO2 Group 2 allowances in an amount
equal to the unit's total tons of SO2 emissions during the
immediately preceding control period.
    (3) The Administrator will review each TR SO2 Group 2
allowance allocation request under paragraph (a)(2) of this section and
will accept the request only if it meets the requirements of paragraph
(a)(2) of this section. The Administrator will allocate TR
SO2 Group 2 allowances for each control period pursuant to
an accepted request as follows:
    (i) After May 1 of such control period, the Administrator will
determine the sum of the TR SO2 Group 2 allowances requested
in all accepted allowance allocation requests for such control period.
    (ii) If the amount of TR SO2 Group 2 allowances in the
new unit set-aside for such control period is greater than or equal to
the sum under paragraph (a)(3)(i) of this section, then the
Administrator will allocate the amount of TR SO2 Group 2
allowances requested to each TR SO2 Group 2 unit covered by
an accepted allowance allocation request.
    (iii) If the amount of TR SO2 Group 2 allowances in the
new unit set-aside for such control period is less than the sum under
paragraph (a)(3)(i) of this section, then the Administrator will
allocate to each TR SO2 Group 2 unit covered by an accepted
allowance allocation request the amount of the TR SO2 Group
2 allowances requested, multiplied by the amount of TR SO2
Group 2 allowances in the new unit set-aside for such control period,
divided by the sum determined under paragraph (a)(3)(i) of this
section, and rounded to the nearest allowance.
    (iv) The Administrator will notify, through the promulgation of the
notices of data availability described in Sec.  97.711(b), each
designated representative that submitted an allowance allocation
request of the amount of TR SO2 Group 2 allowances (if any)
allocated for such control period to the TR SO2 Group 2 unit
covered by the request.
    (b) If, after completion of the procedures under paragraph (a)(4)
of this section for a control period, any unallocated TR SO2
Group 2 allowances remain in the new unit set-aside under paragraph (a)
of this section for a State for such control period, the Administrator
will allocate to each TR SO2 Group 2 unit that is in the
State, is listed in appendix A to this subpart, and continues to be
allocated TR SO2 Group 2 allowances for such control period
in accordance with Sec.  97.711(a)(2), an amount of TR SO2
Group 2 allowances equal to the following: The total amount of such
remaining unallocated TR SO2 Group 2 allowances in such new
unit set-aside, multiplied by the unit's allocation under Sec.
97.711(a) for such control period, divided by the remainder of the
amount of tons in the applicable State SO2 Group 2 trading
budget minus the amount of tons in such new unit set-aside, and rounded
to the nearest allowance.

Sec.  97.713  Authorization of designated representative and alternate
designated representative.

    (a) Except as provided under Sec.  97.715, each TR SO2
Group 2 source, including all TR SO2 Group 2 units at the
source, shall have one and only one designated representative, with
regard to all matters under the TR SO2 Group 2 Trading
Program.
    (1) The designated representative shall be selected by an agreement
binding on the owners and operators of the source and all TR
SO2 Group 2 units at the source and shall act in accordance
with the certification statement in Sec.  97.716(a)(4)(iii).
    (2) Upon and after receipt by the Administrator of a complete
certificate of representation under Sec.  97.716:
    (i) The designated representative shall be authorized and shall
represent and, by his or her representations, actions, inactions, or
submissions, legally bind each owner and operator of the source and
each TR SO2 Group 2 unit at the source in all matters
pertaining to the TR SO2 Group 2 Trading Program,
notwithstanding any agreement between the designated representative and
such owners and operators; and
    (ii) The owners and operators of the source and each TR
SO2 Group 2 unit at the source shall be bound by any
decision or order issued to the designated representative by the
Administrator regarding the source or any such unit.
    (b) Except as provided under Sec.  97.715, each TR SO2
Group 2 source may have one and only one alternate designated
representative, who may act on behalf of the designated representative.
The agreement by which the alternate designated representative is
selected shall include a procedure for authorizing the alternate
designated representative to act in lieu of the designated
representative.
    (1) The alternate designated representative shall be selected by an
agreement binding on the owners and operators of the source and all TR
SO2 Group 2 units at the source and shall act in accordance
with the certification statement in Sec.  97.716(a)(4)(iii).
    (2) Upon and after receipt by the Administrator of a complete
certificate of representation under Sec.  97.716,
    (i) The alternate designated representative shall be authorized;
    (ii) Any representation, action, inaction, or submission by the
alternate designated representative shall be deemed to be a
representation, action,

inaction, or submission by the designated representative; and
    (iii) The owners and operators of the source and each TR
SO2 Group 2 unit at the source shall be bound by any
decision or order issued to the alternate designated representative by
the Administrator regarding the source or any such unit.
    (c) Except in this section, Sec.  97.702, and Sec. Sec.  97.714
through 97.718, whenever the term ``designated representative'' is used
in this subpart, the term shall be construed to include the designated
representative or any alternate designated representative.

Sec.  97.714  Responsibilities of designated representative and
alternate designated representative.

    (a) Except as provided under Sec.  97.718 concerning delegation of
authority to make submissions, each submission under the TR
SO2 Group 2 Trading Program shall be made, signed, and
certified by the designated representative or alternate designated
representative for each TR SO2 Group 2 source and TR
SO2 Group 2 unit for which the submission is made. Each such
submission shall include the following certification statement by the
designated representative or alternate designated representative: ``I
am authorized to make this submission on behalf of the owners and
operators of the source or units for which the submission is made. I
certify under penalty of law that I have personally examined, and am
familiar with, the statements and information submitted in this
document and all its attachments. Based on my inquiry of those
individuals with primary responsibility for obtaining the information,
I certify that the statements and information are to the best of my
knowledge and belief true, accurate, and complete. I am aware that
there are significant penalties for submitting false statements and
information or omitting required statements and information, including
the possibility of fine or imprisonment.''
    (b) The Administrator will accept or act on a submission made for a
TR SO2 Group 2 source or a TR SO2 Group 2 unit
only if the submission has been made, signed, and certified in
accordance with paragraph (a) of this section and Sec.  97.718.

Sec.  97.715  Changing designated representative and alternate
designated representative; changes in owners and operators.

    (a) Changing designated representative. The designated
representative may be changed at any time upon receipt by the
Administrator of a superseding complete certificate of representation
under Sec.  97.716. Notwithstanding any such change, all
representations, actions, inactions, and submissions by the previous
designated representative before the time and date when the
Administrator receives the superseding certificate of representation
shall be binding on the new designated representative and the owners
and operators of the TR SO2 Group 2 source and the TR
SO2 Group 2 units at the source.
    (b) Changing alternate designated representative. The alternate
designated representative may be changed at any time upon receipt by
the Administrator of a superseding complete certificate of
representation under Sec.  97.716. Notwithstanding any such change, all
representations, actions, inactions, and submissions by the previous
alternate designated representative before the time and date when the
Administrator receives the superseding certificate of representation
shall be binding on the new alternate designated representative, the
designated representative, and the owners and operators of the TR
SO2 Group 2 source and the TR SO2 Group 2 units
at the source.
    (c) Changes in owners and operators. (1) In the event an owner or
operator of a TR SO2 Group 2 source or a TR SO2
Group 2 unit is not included in the list of owners and operators in the
certificate of representation under Sec.  97.716, such owner or
operator shall be deemed to be subject to and bound by the certificate
of representation, the representations, actions, inactions, and
submissions of the designated representative and any alternate
designated representative of the source or unit, and the decisions and
orders of the Administrator, as if the owner or operator were included
in such list.
    (2) Within 30 days after any change in the owners and operators of
a TR SO2 Group 2 source or a TR SO2 Group 2 unit,
including the addition of a new owner or operator, the designated
representative or any alternate designated representative shall submit
a revision to the certificate of representation under Sec.  97.716
amending the list of owners and operators to include the change.

Sec.  97.716  Certificate of representation.

    (a) A complete certificate of representation for a designated
representative or an alternate designated representative shall include
the following elements in a format prescribed by the Administrator:
    (1) Identification of the TR SO2 Group 2 source, and
each TR SO2 Group 2 unit at the source, for which the
certificate of representation is submitted, including source name,
source category and NAICS code (or, in the absence of a NAICS code, an
equivalent code), State, plant code, county, latitude and longitude,
unit identification number and type, identification number and
nameplate capacity (in MWe rounded to the nearest tenth) of each
generator served by each such unit, and actual or projected date of
commencement of commercial operation.
    (2) The name, address, e-mail address (if any), telephone number,
and facsimile transmission number (if any) of the designated
representative and any alternate designated representative.
    (3) A list of the owners and operators of the TR SO2
Group 2 source and of each TR SO2 Group 2 unit at the
source.
    (4) The following certification statements by the designated
representative and any alternate designated representative--
    (i) ``I certify that I was selected as the designated
representative or alternate designated representative, as applicable,
by an agreement binding on the owners and operators of the source and
each TR SO2 Group 2 unit at the source.''
    (ii) ``I certify that I have all the necessary authority to carry
out my duties and responsibilities under the TR SO2 Group 2
Trading Program on behalf of the owners and operators of the source and
of each TR SO2 Group 2 unit at the source and that each such
owner and operator shall be fully bound by my representations, actions,
inactions, or submissions and by any order issued to me by the
Administrator regarding the source or unit.''
    (iii) ``Where there are multiple holders of a legal or equitable
title to, or a leasehold interest in, a TR SO2 Group 2 unit,
or where a utility or industrial customer purchases power from a TR
SO2 Group 2 unit under a life-of-the-unit, firm power
contractual arrangement, I certify that: I have given a written notice
of my selection as the `designated representative' or `alternate
designated representative', as applicable, and of the agreement by
which I was selected to each owner and operator of the source and of
each TR SO2 Group 2 unit at the source; and TR
SO2 Group 2 allowances and proceeds of transactions
involving TR SO2 Group 2 allowances will be deemed to be
held or distributed in proportion to each holder's legal, equitable,
leasehold, or contractual reservation or entitlement, except that, if
such multiple holders have expressly provided for a different
distribution of TR SO2 Group 2 allowances by contract, TR
SO2 Group 2 allowances and proceeds of transactions
involving TR SO2 Group 2

allowances will be deemed to be held or distributed in accordance with
the contract.''
    (5) The signature of the designated representative and any
alternate designated representative and the dates signed.
    (b) Unless otherwise required by the Administrator, documents of
agreement referred to in the certificate of representation shall not be
submitted to the Administrator. The Administrator shall not be under
any obligation to review or evaluate the sufficiency of such documents,
if submitted.

Sec.  97.717  Objections concerning designated representative and
alternate designated representative.

    (a) Once a complete certificate of representation under Sec.
97.716 has been submitted and received, the Administrator will rely on
the certificate of representation unless and until a superseding
complete certificate of representation under Sec.  97.716 is received
by the Administrator.
    (b) Except as provided in Sec.  97.715(a) or (b), no objection or
other communication submitted to the Administrator concerning the
authorization, or any representation, action, inaction, or submission,
of a designated representative or alternate designated representative
shall affect any representation, action, inaction, or submission of the
designated representative or alternate designated representative or the
finality of any decision or order by the Administrator under the TR
SO2 Group 2 Trading Program.
    (c) The Administrator will not adjudicate any private legal dispute
concerning the authorization or any representation, action, inaction,
or submission of any designated representative or alternate designated
representative, including private legal disputes concerning the
proceeds of TR SO2 Group 2 allowance transfers.

Sec.  97.718  Delegation by designated representative and alternate
designated representative.

    (a) A designated representative may delegate, to one or more
natural persons, his or her authority to make an electronic submission
to the Administrator provided for or required under this subpart.
    (b) An alternate designated representative may delegate, to one or
more natural persons, his or her authority to make an electronic
submission to the Administrator provided for or required under this
subpart.
    (c) In order to delegate authority to make an electronic submission
to the Administrator in accordance with paragraph (a) or (b) of this
section, the designated representative or alternate designated
representative, as appropriate, must submit to the Administrator a
notice of delegation, in a format prescribed by the Administrator, that
includes the following elements:
    (1) The name, address, e-mail address, telephone number, and
facsimile transmission number (if any) of such designated
representative or alternate designated representative;
    (2) The name, address, e-mail address, telephone number, and
facsimile transmission number (if any) of each such natural person
(referred to as an ``agent'');
    (3) For each such natural person, a list of the type or types of
electronic submissions under paragraph (a) or (b) of this section for
which authority is delegated to him or her; and
    (4) The following certification statements by such designated
representative or alternate designated representative:
    (i) ``I agree that any electronic submission to the Administrator
that is made by an agent identified in this notice of delegation and of
a type listed for such agent in this notice of delegation and that is
made when I am a designated representative or alternate designated
representative, as appropriate, and before this notice of delegation is
superseded by another notice of delegation under 40 CFR 97.718(d) shall
be deemed to be an electronic submission by me.''
    (ii) ``Until this notice of delegation is superseded by another
notice of delegation under 40 CFR 97.718(d), I agree to maintain an e-
mail account and to notify the Administrator immediately of any change
in my e-mail address unless all delegation of authority by me under 40
CFR 97.718 is terminated.''.
    (d) A notice of delegation submitted under paragraph (c) of this
section shall be effective, with regard to the designated
representative or alternate designated representative identified in
such notice, upon receipt of such notice by the Administrator and until
receipt by the Administrator of a superseding notice of delegation
submitted by such designated representative or alternate designated
representative, as appropriate. The superseding notice of delegation
may replace any previously identified agent, add a new agent, or
eliminate entirely any delegation of authority.
    (e) Any electronic submission covered by the certification in
paragraph (c)(4)(i) of this section and made in accordance with a
notice of delegation effective under paragraph (d) of this section
shall be deemed to be an electronic submission by the designated
representative or alternate designated representative submitting such
notice of delegation.

Sec.  97.719  [Reserved]

Sec.  97.720  Establishment of Allowance Management System accounts.

    (a) Compliance accounts. Upon receipt of a complete certificate of
representation under Sec.  97.716, the Administrator will establish a
compliance account for the TR SO2 Group 2 source for which
the certificate of representation was submitted, unless the source
already has a compliance account. The designated representative and any
alternate designated representative of the source shall be the
authorized account representative and the alternate authorized account
representative respectively of the compliance account.
    (b) General accounts--(1) Application for general account. (i) Any
person may apply to open a general account, for the purpose of holding
and transferring TR SO2 Group 2 allowances, by submitting to
the Administrator a complete application for a general account. Such
application shall designate one and only one authorized account
representative and may designate one and only one alternate authorized
account representative who may act on behalf of the authorized account
representative.
    (A) The authorized account representative and alternate authorized
account representative shall be selected by an agreement binding on the
persons who have an ownership interest with respect to TR
SO2 Group 2 allowances held in the general account.
    (B) The agreement by which the alternate authorized account
representative is selected shall include a procedure for authorizing
the alternate authorized account representative to act in lieu of the
authorized account representative.
    (ii) A complete application for a general account shall include the
following elements in a format prescribed by the Administrator:
    (A) Name, mailing address, e-mail address (if any), telephone
number, and facsimile transmission number (if any) of the authorized
account representative and any alternate authorized account
representative;
    (B) An identifying name for the general account;
    (C) A list of all persons subject to a binding agreement for the
authorized account representative and any alternate authorized account
representative to

represent their ownership interest with respect to the TR
SO2 Group 2 allowances held in the general account;
    (D) The following certification statement by the authorized account
representative and any alternate authorized account representative: ``I
certify that I was selected as the authorized account representative or
the alternate authorized account representative, as applicable, by an
agreement that is binding on all persons who have an ownership interest
with respect to TR SO2 Group 2 allowances held in the
general account. I certify that I have all the necessary authority to
carry out my duties and responsibilities under the TR SO2
Group 2 Trading Program on behalf of such persons and that each such
person shall be fully bound by my representations, actions, inactions,
or submissions and by any order or decision issued to me by the
Administrator regarding the general account.''
    (E) The signature of the authorized account representative and any
alternate authorized account representative and the dates signed.
    (iii) Unless otherwise required by the Administrator, documents of
agreement referred to in the application for a general account shall
not be submitted to the Administrator. The Administrator shall not be
under any obligation to review or evaluate the sufficiency of such
documents, if submitted.
    (2) Authorization of authorized account representative and
alternate authorized account representative. (i) Upon receipt by the
Administrator of a complete application for a general account under
paragraph (b)(1) of this section, the Administrator will establish a
general account for the person or persons for whom the application is
submitted and upon and after such receipt by the Administrator:
    (A) The authorized account representative of the general account
shall be authorized and shall represent and, by his or her
representations, actions, inactions, or submissions, legally bind each
person who has an ownership interest with respect to TR SO2
Group 2 allowances held in the general account in all matters
pertaining to the TR SO2 Group 2 Trading Program,
notwithstanding any agreement between the authorized account
representative and such person.
    (B) Any alternate authorized account representative shall be
authorized, and any representation, action, inaction, or submission by
any alternate authorized account representative shall be deemed to be a
representation, action, inaction, or submission by the authorized
account representative.
    (C) Each person who has an ownership interest with respect to TR
SO2 Group 2 allowances held in the general account shall be
bound by any order or decision issued to the authorized account
representative or alternate authorized account representative by the
Administrator regarding the general account.
    (ii) Except as provided in paragraph (b)(5) of this section
concerning delegation of authority to make submissions, each submission
concerning the general account shall be made, signed, and certified by
the authorized account representative or any alternate authorized
account representative for the persons having an ownership interest
with respect to TR SO2 Group 2 allowances held in the
general account. Each such submission shall include the following
certification statement by the authorized account representative or any
alternate authorized account representative: ``I am authorized to make
this submission on behalf of the persons having an ownership interest
with respect to the TR SO2 Group 2 allowances held in the
general account. I certify under penalty of law that I have personally
examined, and am familiar with, the statements and information
submitted in this document and all its attachments. Based on my inquiry
of those individuals with primary responsibility for obtaining the
information, I certify that the statements and information are to the
best of my knowledge and belief true, accurate, and complete. I am
aware that there are significant penalties for submitting false
statements and information or omitting required statements and
information, including the possibility of fine or imprisonment.''
    (iii) Except in this section, whenever the term ``authorized
account representative'' is used in this subpart, the term shall be
construed to include the authorized account representative or any
alternate authorized account representative.
    (3) Changing authorized account representative and alternate
authorized account representative; changes in persons with ownership
interest. (i) The authorized account representative of a general
account may be changed at any time upon receipt by the Administrator of
a superseding complete application for a general account under
paragraph (b)(1) of this section. Notwithstanding any such change, all
representations, actions, inactions, and submissions by the previous
authorized account representative before the time and date when the
Administrator receives the superseding application for a general
account shall be binding on the new authorized account representative
and the persons with an ownership interest with respect to the TR
SO2 Group 2 allowances in the general account.
    (ii) The alternate authorized account representative of a general
account may be changed at any time upon receipt by the Administrator of
a superseding complete application for a general account under
paragraph (b)(1) of this section. Notwithstanding any such change, all
representations, actions, inactions, and submissions by the previous
alternate authorized account representative before the time and date
when the Administrator receives the superseding application for a
general account shall be binding on the new alternate authorized
account representative, the authorized account representative, and the
persons with an ownership interest with respect to the TR
SO2 Group 2 allowances in the general account.
    (iii)(A) In the event a person having an ownership interest with
respect to TR SO2 Group 2 allowances in the general account
is not included in the list of such persons in the application for a
general account, such person shall be deemed to be subject to and bound
by the application for a general account, the representation, actions,
inactions, and submissions of the authorized account representative and
any alternate authorized account representative of the account, and the
decisions and orders of the Administrator, as if the person were
included in such list.
    (B) Within 30 days after any change in the persons having an
ownership interest with respect to SO2 Group 2 allowances in
the general account, including the addition of a new person, the
authorized account representative or any alternate authorized account
representative shall submit a revision to the application for a general
account amending the list of persons having an ownership interest with
respect to the TR SO2 Group 2 allowances in the general
account to include the change.
    (4) Objections concerning authorized account representative and
alternate authorized account representative. (i) Once a complete
application for a general account under paragraph (b)(1) of this
section has been submitted and received, the Administrator will rely on
the application unless and until a superseding complete application for
a general account under paragraph (b)(1) of this section is received by
the Administrator.
    (ii) Except as provided in paragraph (b)(3)(i) or (ii) of this
section, no objection or other communication submitted to the
Administrator concerning the authorization, or any

representation, action, inaction, or submission of the authorized
account representative or any alternate authorized account
representative of a general account shall affect any representation,
action, inaction, or submission of the authorized account
representative or any alternate authorized account representative or
the finality of any decision or order by the Administrator under the TR
SO2 Group 2 Trading Program.
    (iii) The Administrator will not adjudicate any private legal
dispute concerning the authorization or any representation, action,
inaction, or submission of the authorized account representative or any
alternate authorized account representative of a general account,
including private legal disputes concerning the proceeds of TR
SO2 Group 2 allowance transfers.
    (5) Delegation by authorized account representative and alternate
authorized account representative. (i) An authorized account
representative of a general account may delegate, to one or more
natural persons, his or her authority to make an electronic submission
to the Administrator provided for or required under this subpart.
    (ii) An alternate authorized account representative of a general
account may delegate, to one or more natural persons, his or her
authority to make an electronic submission to the Administrator
provided for or required under this subpart.
    (iii) In order to delegate authority to make an electronic
submission to the Administrator in accordance with paragraph (b)(5)(i)
or (ii) of this section, the authorized account representative or
alternate authorized account representative, as appropriate, must
submit to the Administrator a notice of delegation, in a format
prescribed by the Administrator, that includes the following elements:
    (A) The name, address, e-mail address, telephone number, and
facsimile transmission number (if any) of such authorized account
representative or alternate authorized account representative;
    (B) The name, address, e-mail address, telephone number, and
facsimile transmission number (if any) of each such natural person
(referred to as an ``agent'');
    (C) For each such natural person, a list of the type or types of
electronic submissions under paragraph (b)(5)(i) or (ii) of this
section for which authority is delegated to him or her;
    (D) The following certification statement by such authorized
account representative or alternate authorized account representative:
``I agree that any electronic submission to the Administrator that is
made by an agent identified in this notice of delegation and of a type
listed for such agent in this notice of delegation and that is made
when I am an authorized account representative or alternate authorized
representative, as appropriate, and before this notice of delegation is
superseded by another notice of delegation under 40 CFR
97.720(b)(5)(iv) shall be deemed to be an electronic submission by
me.''; and
    (E) The following certification statement by such authorized
account representative or alternate authorized account representative:
``Until this notice of delegation is superseded by another notice of
delegation under 40 CFR 97.720(b)(5)(iv), I agree to maintain an e-mail
account and to notify the Administrator immediately of any change in my
e-mail address unless all delegation of authority by me under 40 CFR
97.720(b)(5) is terminated.''.
    (iv) A notice of delegation submitted under paragraph (b)(5)(iii)
of this section shall be effective, with regard to the authorized
account representative or alternate authorized account representative
identified in such notice, upon receipt of such notice by the
Administrator and until receipt by the Administrator of a superseding
notice of delegation submitted by such authorized account
representative or alternate authorized account representative, as
appropriate. The superseding notice of delegation may replace any
previously identified agent, add a new agent, or eliminate entirely any
delegation of authority.
    (v) Any electronic submission covered by the certification in
paragraph (b)(5)(iii)(D) of this section and made in accordance with a
notice of delegation effective under paragraph (b)(5)(iv) of this
section shall be deemed to be an electronic submission by the
designated representative or alternate designated representative
submitting such notice of delegation.
    (6)(i) The authorized account representative or alternate
authorized account representative of a general account may submit to
the Administrator a request to close the account. Such request shall
include a correctly submitted TR SO2 Group 2 allowance
transfer under Sec.  97.722 for any TR SO2 Group 2
allowances in the account to one or more other Allowance Management
System accounts.
    (ii) If a general account has no TR SO2 Group 2
allowance transfers to or from the account for a 12-month period or
longer and does not contain any TR SO2 Group 2 allowances,
the Administrator may notify the authorized account representative for
the account that the account will be closed 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 TR SO2 Group 2 allowance transfer
under Sec.  97.722 to the account or a statement submitted by the
authorized account representative or alternate authorized account
representative demonstrating to the satisfaction of the Administrator
good cause as to why the account should not be closed.
    (c) Account identification. The Administrator will assign a unique
identifying number to each account established under paragraph (a) or
(b) of this section.
    (d) Responsibilities of authorized account representative and
alternate authorized account representative. After the establishment of
an Allowance Management System account, the Administrator will accept
or act on a submission pertaining to the account, including, but not
limited to, submissions concerning the deduction or transfer of TR
SO2 Group 2 allowances in the account, only if the
submission has been made, signed, and certified in accordance with
Sec. Sec.  97.714(a) and 97.718 or paragraphs (b)(2)(ii) and (b)(5) of
this section.

Sec.  97.721  Recordation of TR SO2 Group 2 allowance allocations.

    (a) By September 1, 2011, the Administrator will record in each TR
SO2 Group 2 source's compliance account the TR
SO2 Group 2 allowances allocated for the TR SO2
Group 2 units at the source in accordance with Sec. Sec.  97.711(a) for
the control periods in 2012, 2013, and 2014.
    (b) By June 1, 2012 and June 1 of each year thereafter, the
Administrator will record in each TR SO2 Group 2 source's
compliance account the TR SO2 Group 2 allowances allocated
for the TR SO2 Group 2 units at the source in accordance
with Sec.  97.711(a) for the control period in the third year after the
year of the applicable recordation deadline under this paragraph.
    (c) By September 1, 2012 and September 1 of each year thereafter,
the Administrator will record in each TR SO2 Group 2
source's compliance account the TR SO2 Group 2 allowances
allocated for the TR SO2 Group 2 units at the source in
accordance with Sec.  97.712 for the control period in the year of the
applicable recordation deadline under this paragraph.
    (d) When recording the allocation of TR SO2 Group 2
allowances for a TR SO2 Group 2 unit in a compliance

account, the Administrator will assign each TR SO2 Group 2
allowance a unique identification number that will include digits
identifying the year of the control period for which the TR
SO2 Group 2 allowance is allocated.

Sec.  97.722  Submission of TR SO2 Group 2 allowance transfers.

    (a) An authorized account representative seeking recordation of a
TR SO2 Group 2 allowance transfer shall submit the transfer
to the Administrator.
    (b) A TR SO2 Group 2 allowance transfer shall be
correctly submitted if:
    (1) The transfer includes the following elements, in a format
prescribed by the Administrator:
    (i) The account numbers established by the Administrator for both
the transferor and transferee accounts;
    (ii) The serial number of each TR SO2 Group 2 allowance
that is in the transferor account and is to be transferred; and
    (iii) The name and signature of the authorized account
representative of the transferor account and the date signed; and
    (2) When the Administrator attempts to record the transfer, the
transferor account includes each TR SO2 Group 2 allowance
identified by serial number in the transfer.

Sec.  97.723  Recordation of TR SO2 Group 2 allowance transfers.

    (a) Within 5 business days (except as provided in paragraph (b) of
this section) of receiving a TR SO2 Group 2 allowance
transfer, the Administrator will record a TR SO2 Group 2
allowance transfer by moving each TR SO2 Group 2 allowance
from the transferor account to the transferee account as specified by
the request, provided that the transfer is correctly submitted under
Sec.  97.722.
    (b)(1) A TR SO2 Group 2 allowance transfer that is
submitted for recordation after the allowance transfer deadline for a
control period and that includes any TR SO2 Group 2
allowances allocated for any control period before such allowance
transfer deadline will not be recorded until after the Administrator
completes the deductions under Sec.  97.724 for the control period
immediately before such allowance transfer deadline.
    (2) A TR SO2 Group 2 allowance transfer that is
submitted for recordation after the deadline for holding TR
SO2 Group 2 allowances described in Sec.  97.725(b)(5) and
that includes any TR SO2 Group 2 allowances allocated for a
control period before the year of such deadline will not be recorded
until after the Administrator completes the deductions under Sec.
97.725 for the control period immediately before the year of such
deadline.
    (c) Where a TR SO2 Group 2 allowance transfer is not
correctly submitted under Sec.  97.722, the Administrator will not
record such transfer.
    (d) Within 5 business days of recordation of a TR SO2
Group 2 allowance transfer under paragraphs (a) and (b) of the section,
the Administrator will notify the authorized account representatives of
both the transferor and transferee accounts.
    (e) Within 10 business days of receipt of a TR SO2 Group
2 allowance transfer that is not correctly submitted under Sec.
97.722, the Administrator will notify the authorized account
representatives of both accounts subject to the transfer of:
    (1) A decision not to record the transfer, and
    (2) The reasons for such non-recordation.

Sec.  97.724  Compliance with TR SO2 Group 2 emissions limitation.

    (a) Availability for deduction for compliance. TR SO2
Group 2 allowances are available to be deducted for compliance with a
source's TR SO2 Group 2 emissions limitation for a control
period in a given year only if the TR SO2 Group 2
allowances:
    (1) Were allocated for the control period in the year or a prior
year; and
    (2) Are held in the source's compliance account as of the allowance
transfer deadline for such control period.
    (b) Deductions for compliance. After the recordation, in accordance
with Sec.  97.723, of TR SO2 Group 2 allowance transfers
submitted by the allowance transfer deadline for a control period, the
Administrator will deduct from the compliance account TR SO2
Group 2 allowances available under paragraph (a) of this section in
order to determine whether the source meets the TR SO2 Group
2 emissions limitation for such control period, as follows:
    (1) Until the amount of TR SO2 Group 2 allowances
deducted equals the number of tons of total SO2 emissions
from all TR SO2 Group 2 units at the source for such control
period; or
    (2) If there are insufficient TR SO2 Group 2 allowances
to complete the deductions in paragraph (b)(1) of this section, until
no more TR SO2 Group 2 allowances available under paragraph
(a) of this section remain in the compliance account.
    (c)(1) Identification of TR SO2 Group 2 allowances by
serial number. The authorized account representative for a source's
compliance account may request that specific TR SO2 Group 2
allowances, identified by serial number, in the compliance account be
deducted for emissions or excess emissions for a control period in
accordance with paragraph (b) or (d) of this section. In order to be
complete, such request shall be submitted to the Administrator by the
allowance transfer deadline for such control period and include, in a
format prescribed by the Administrator, the identification of the TR
SO2 Group 2 source and the appropriate serial numbers.
    (2) First-in, first-out. The Administrator will deduct TR
SO2 Group 2 allowances under paragraph (b) or (d) of this
section from the source's compliance account in accordance with a
complete request under paragraph (c)(1) of this section or, in the
absence of such request or in the case of identification of an
insufficient amount of TR SO2 Group 2 allowances in such
request, on a first-in, first-out (FIFO) accounting basis in the
following order:
    (i) Any TR SO2 Group 2 allowances that were allocated to
the units at the source and not transferred out of the compliance
account, in the order of recordation; and then
    (ii) Any TR SO2 Group 2 allowances that were allocated
to any unit and transferred to and recorded in the compliance account
pursuant to this subpart, in the order of recordation.
    (d) Deductions for excess emissions. After making the deductions
for compliance under paragraph (b) of this section for a control period
in a year in which the TR SO2 Group 2 source has excess
emissions, the Administrator will deduct from the source's compliance
account an amount of TR SO2 Group 2 allowances, allocated
for the control period in the immediately following year, equal to two
times the number of tons of the source's excess emissions.
    (e) Recordation of deductions. The Administrator will record in the
appropriate compliance account all deductions from such an account
under paragraphs (b) and (d) of this section.

Sec.  97.725  Compliance with TR SO2 Group 2 assurance provisions.

    (a) Availability for deduction. TR SO2 Group 2
allowances are available to be deducted for compliance with the TR
SO2 Group 2 assurance provisions for a control period in a
given year by an owner of one or more TR SO2 Group 2 units
in a State only if the TR SO2 Group 2 allowances:
    (1) Were allocated for the control period in the year or a prior
year; and
    (2) Are held in a compliance account, designated by the owner in
accordance with paragraph (b)(4)(ii) of this section,

of one of the owner's TR SO2 Group 2 sources in the State as
of the deadline established in paragraph (b)(5) of this section.
    (b) Deductions for compliance. The Administrator will deduct TR
SO2 Group 2 allowances available under paragraph (a) of this
section for compliance with the TR SO2 Group 2 assurance
provisions for a State for a control period in a given year in
accordance with the following procedures:
    (1) By June 1, 2015 and June 1 of each year thereafter, the
Administrator will:
    (i) Calculate, separately for each State, the total amount of
SO2 emissions from all TR SO2 Group 2 units in
the State during the control period in the year before the year of this
calculation deadline and the amount, if any, by which such total amount
of NOX emissions exceeds the State assurance level as
described in Sec.  97.706(c)(2)(iii); and
    (ii) Promulgate a notice of availability of the results of the
calculations required in paragraph (b)(1)(i) of this section, including
separate calculations of the SO2 emissions for each TR
SO2 Group 2 unit and of the amounts described in Sec. Sec.
97.706(c)(2)(iii)(A) and (B) for each State.
    (2) The Administrator will provide an opportunity for submission of
objections to the calculations referenced by each notice described in
paragraph (b)(1) of this section.
    (i) Objections shall be submitted by the deadline specified in such
notice and shall be limited to addressing whether the calculations for
each TR SO2 Group 2 unit and each State for the control
period in the year involved are in accordance with Sec.
97.706(c)(2)(iii) and Sec. Sec.  97.706(b) and 97.730 through 97.735.
    (ii) The Administrator will adjust the calculations to the extent
necessary to ensure that they are in accordance with the provisions
referenced in paragraph (b)(2)(i) of this section. By August 1
immediately after the promulgation of such notice, the Administrator
will promulgate a notice of availability of any adjustments that the
Administrator determines to be necessary and the reasons for accepting
or rejecting any objections submitted in accordance with paragraph
(b)(2)(i) of this section.
    (3) For each notice of data availability required in paragraph
(b)(2)(ii) of this section and for any State identified in such notice
as having TR SO2 Group 2 sources with total SO2
emissions exceeding the State assurance level for a control period, as
described in Sec.  97.706(c)(2)(iii):
    (i) By August 15 immediately after the promulgation of such notice,
the designated representative of each TR SO2 Group 2 source
in each such State shall submit a statement, in a format prescribed by
the Administrator:
    (A) Listing all the owners of each TR SO2 Group 2 unit
at the source, explaining how the selection of each owner for inclusion
on the list is consistent with the definition of ``owner'' in Sec.
97.702, and listing, separately for each unit, the percentage of the
legal, equitable, leasehold, or contractual reservation or entitlement
for each such owner as of midnight of December 31 of the control period
in the year involved; and
    (B) For each TR SO2 Group 2 unit at the source that
operates during, but is allocated no TR SO2 Group 2
allowances for, the control period in the year involved, identifying
whether the unit is a coal-fired boiler, simple combustion turbine, or
combined cycle turbine cycle and providing the unit's allowable
SO2 emission rate for such control period.
    (ii) By September 15 immediately after the promulgation of such
notice, the Administrator will calculate, for each such State and each
owner of one or more TR SO2 Group 2 units in the State and
for the control period in the year involved, each owner's share of the
total SO2 emissions from all TR SO2 Group 2 units
in the State, each owner's assurance level, and the amount (if any) of
TR SO2 Group 2 allowances that each owner must hold in
accordance with the calculation formula in Sec.  97.706(c)(2)(i) and
will promulgate a notice of availability of the results of these
calculations.
    (iii) The Administrator will provide an opportunity for submission
of objections to the calculations referenced by the notice of data
availability required in paragraph (b)(3)(ii) of this section.
    (A) Objections shall be submitted by the deadline specified in such
notice and shall be limited to addressing whether the calculations for
each owner for the control period in the year involved are consistent
with the SO2 emissions for the relevant TR SO2
Group 2 units as set forth in the notice required in paragraph
(b)(2)(ii) of this section, the definitions of ``owner'', ``owner's
assurance level'', and ``owner's share'' in Sec.  97.702, and the
calculation formula in Sec.  97.706(c)(2)(i) and shall not raise any
issues about any data used in the notice of data availability required
in paragraph (b)(2)(ii) of this section.
    (B) The Administrator will adjust the calculations to the extent
necessary to ensure that they are consistent with the data and
provisions referenced in paragraph (b)(3)(iii)(A) of this section. By
November 15 immediately after the promulgation of such notice, the
Administrator will promulgate a notice of availability of any
adjustments that the Administrator determines to be necessary and the
reasons for accepting or rejecting any objections submitted in
accordance with paragraph (b)(3)(iii)(A) of this section.
    (4) By December 1 immediately after the promulgation of each notice
of data availability required in paragraph (b)(3)(iii)(B) of this
section:
    (i) Each owner identified, in such notice, as owning one or more TR
SO2 Group 2 units in a State and as being required to hold
TR SO2 Group 2 allowances shall designate the compliance
account of one of the sources at which such unit or units are located
to hold such required TR SO2 Group 2 allowances;
    (ii) The authorized account representative for the compliance
account designated under paragraph (b)(4)(i) of this section shall
submit to the Administrator a statement, in a format prescribed by the
Administrator, making this designation.
    (5)(i) As of midnight of December 15 immediately after the
promulgation of each notice of data availability required in paragraph
(b)(3)(iii)(B) of this section, each owner described in paragraph
(b)(4)(i) of this section shall hold in the compliance account
designated by the owner in accordance with paragraph (b)(4)(ii) of this
section the total amount of TR SO2 Group 2 allowances,
available for deduction under paragraph (a) of this section, equal to
the amount the owner is required to hold as calculated by the
Administrator and referenced in such notice.
    (ii) Notwithstanding the allowance-holding deadline specified in
paragraph (b)(5)(i) of this section, if December 15 is not a business
day, then such allowance-holding deadline shall be midnight of the
first business day thereafter.
    (6) After December 15 (or the date described in paragraph
(b)(5)(ii) of this section) immediately after the promulgation of each
notice of data availability required in paragraph (b)(3)(iii)(B) of
this section and after the recordation, in accordance with Sec.
97.723, of TR SO2 Group 2 allowance transfers submitted by
midnight of such date, the Administrator will deduct from each
compliance account designated in accordance with paragraph (b)(4)(ii)
of this section, TR SO2 Group 2 allowances available under
paragraph (a) of this section, as follows:
    (i) Until the amount of TR SO2 Group 2 allowances
deducted equals the

amount that the owner designating the compliance account is required to
hold as calculated by the Administrator and referenced in the notice
required in paragraph (b)(3)(iii)(B) of this section; or
    (ii) If there are insufficient TR SO2 Group 2 allowances
to complete the deductions in paragraph (b)(6)(i) of this section,
until no more TR SO2 Group 2 allowances available under
paragraph (a) of this section remain in the compliance account.
    (7) Notwithstanding any other provision of this subpart and any
revision, made by or submitted to the Administrator after the
promulgation of the notices of data availability required in paragraphs
(b)(2)(ii) and (b)(3)(iii)(B) of this section respectively for a
control period, of any data used in making the calculations referenced
in such notice, the amount of TR SO2 Group 2 allowances that
each owner is required to hold in accordance with Sec.  97.706(c)(2)(i)
for the control period in the year involved shall continue to be such
amount as calculated by the Administrator and referenced in such notice
required in paragraph (b)(3)(iii)(B) of this section, except as
follows:
    (i) If any such data are revised by the Administrator as a result
of a decision in or settlement of litigation concerning such data on
appeal under part 78 of this chapter of such notice, or on appeal under
section 307 of the Clean Air Act of a decision rendered under part 78
of this chapter on appeal of such notice, then the Administrator will
use the data as so revised to recalculate the amounts of TR
SO2 Group 2 allowances that owners are required to hold in
accordance with the calculation formula in Sec.  97.706(c)(2)(i) for
the control period in the year involved with regard to the State
involved, provided that--
    (A) With regard to such litigation involving such notice required
in paragraph (b)(2)(ii) of this section, such litigation under part 78
of this chapter, or the proceeding under part 78 of this chapter that
resulted in the decision appealed in such litigation under section 307
of the Clean Air Act, was initiated no later than 30 days after
promulgation of such notice required in paragraph (b)(2)(ii) of this
section; and
    (B) With regard to such litigation involving such notice required
in paragraph (b)(3)(iii) of this section, such litigation under part 78
of this chapter, or the proceeding under part 78 of this chapter that
resulted in the decision appealed in such litigation under section 307
of the Clean Air Act, was initiated no later than 30 days after
promulgation of such notice required in paragraph (b)(3)(iii) of this
section.
    (ii) If any such data are revised by the owners and operators of a
source whose designated representative submitted such data under
paragraph (b)(3)(i) of this section, as a result of a decision in or
settlement of litigation concerning such submission, then the
Administrator will use the data as so revised to recalculate the
amounts of TR SO2 Group 2 allowances that owners are
required to hold in accordance with the calculation formula in Sec.
97.706(c)(2)(i) for the control period in the year involved with regard
to the State involved, provided that such litigation was initiated no
later than 30 days after promulgation of such notice required in
paragraph (b)(3)(iii)(B) of this section.
    (iii) If the revised data are used to recalculate, in accordance
with paragraphs (b)(7)(i) and (b)(7)(ii) of this section, the amount of
TR SO2 Group 2 allowances that an owner is required to hold
for the control period in the year involved with regard to the State
involved--
    (A) Where the amount of TR SO2 Group 2 allowances that
an owner is required to hold increases as a result of the use of all
such revised data, the Administrator will establish a new, reasonable
deadline on which the owner shall hold the additional amount of TR
SO2 Group 2 allowances in the compliance account designated
by the owner in accordance with paragraph (b)(4)(ii) of this section.
The owner's failure to hold such additional amount, as required, before
the new deadline shall not be a violation of the Clean Air Act. The
owner's failure to hold such additional amount, as required, as of the
new deadline shall be a violation of the Clean Air Act. Each TR
SO2 Group 2 allowance that the owner fails to hold as
required as of the new deadline, and each day in the control period in
the year involved, shall be a separate violation of the Clean Air Act.
After such deadline, the Administrator will make the appropriate
deductions from the compliance account.
    (B) For an owner for which the amount of TR SO2 Group 2
allowances required to be held decreases as a result of the use of all
such revised data, the Administrator will record, in the compliance
account that the owner designated in accordance with paragraph
(b)(4)(ii) of this section, an amount of TR SO2 Group 2
allowances equal to the amount of the decrease to the extent such
amount was previously deducted from the compliance account under
paragraph (b)(6) of this section (and has not already been restored to
the compliance account) for the control period in the year involved.
    (C) Each TR SO2 Group 2 allowance held and deducted
under paragraph (b)(7)(iii)(A) of this section, or recorded under
paragraph (b)(7)(iii)(B) of this section, as a result of recalculation
of requirements under the TR SO2 Group 2 assurance
provisions for a control period in a given year must be a TR
SO2 Group 2 allowance allocated for a control period in the
same or a prior year.
    (c)(1) Identification of TR SO2 Group 2 allowances by serial
number. The authorized account representative for each source's
compliance account designated in accordance with paragraph (b)(4)(ii)
of this section may request that specific TR SO2 Group 2
allowances, identified by serial number, in the compliance account be
deducted in accordance with paragraph (b)(6) or (7) of this section. In
order to be complete, such request shall be submitted to the
Administrator by the allowance-holding deadline described in paragraph
(b)(5) of this section and include, in a format prescribed by the
Administrator, the identification of the compliance account and the
appropriate serial numbers.
    (2) First-in, first-out. The Administrator will deduct TR
SO2 Group 2 allowances under paragraphs (b)(6) and (7) of
this section from each source's compliance account designated under
paragraph (b)(4)(ii) of this section in accordance with a complete
request under paragraph (c)(1) of this section or, in the absence of
such request or in the case of identification of an insufficient amount
of TR SO2 Group 2 allowances in such request, on a first-in,
first-out (FIFO) accounting basis in the following order:
    (i) Any TR SO2 Group 2 allowances that were allocated to
the units at the source and not transferred out of the compliance
account, in the order of recordation; and then
    (ii) Any TR SO2 Group 2 allowances that were allocated
to any unit and transferred to and recorded in the compliance account
pursuant to this subpart, in the order of recordation.
    (d) Recordation of deductions. The Administrator will record in the
appropriate compliance account all deductions from such an account
under paragraph (b) of this section.

Sec.  97.726  Banking.

    (a) A TR SO2 Group 2 allowance may be banked for future
use or transfer in a compliance account or a general account in
accordance with paragraph (b) of this section.
    (b) Any TR SO2 Group 2 allowance that is held in a
compliance account or a general account will remain in such

account unless and until the TR SO2 Group 2 allowance is
deducted or transferred under Sec.  97.711(c), Sec.  97.723, Sec.
97.724, Sec.  97.725, 97.727, 97.728, 97.742, or 97.743.

Sec.  97.727  Account error.

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

Sec.  97.728  Administrator's action on submissions.

    (a) The Administrator may review and conduct independent audits
concerning any submission under the TR SO2 Group 2 Trading
Program and make appropriate adjustments of the information in the
submission.
    (b) The Administrator may deduct TR SO2 Group 2
allowances from or transfer TR SO2 Group 2 allowances to a
source's compliance account based on the information in a submission,
as adjusted under paragraph (a)(1) of this section, and record such
deductions and transfers.

Sec.  97.729  [Reserved]

Sec.  97.730  General monitoring, recordkeeping, and reporting
requirements.

    The owners and operators, and to the extent applicable, the
designated representative, of a TR SO2 Group 2 unit, shall
comply with the monitoring, recordkeeping, and reporting requirements
as provided in this subpart and subparts F and G of part 75 of this
chapter. For purposes of applying such requirements, the definitions in
Sec.  97.702 and in Sec.  72.2 of this chapter shall apply, the terms
``affected unit,'' ``designated representative,'' and ``continuous
emission monitoring system'' (or ``CEMS'') in part 75 of this chapter
shall be deemed to refer to the terms ``TR SO2 Group 2
unit,'' ``designated representative,'' and ``continuous emission
monitoring system'' (or ``CEMS'') respectively as defined in Sec.
97.702, and the term ``newly affected unit'' shall be deemed to mean
``newly affected TR SO2 Group 2 unit''. The owner or
operator of a unit that is not a TR SO2 Group 2 unit but
that is monitored under Sec.  75.16(b)(2) of this chapter shall comply
with the same monitoring, recordkeeping, and reporting requirements as
a TR SO2 Group 2 unit.
    (a) Requirements for installation, certification, and data
accounting. The owner or operator of each TR SO2 Group 2
unit shall:
    (1) Install all monitoring systems required under this subpart for
monitoring SO2 mass emissions and individual unit heat input
(including all systems required to monitor SO2
concentration, stack gas moisture content, stack gas flow rate,
CO2 or O2 concentration, and fuel flow rate, as
applicable, in accordance with Sec. Sec.  75.11 and 75.16 of this
chapter);
    (2) Successfully complete all certification tests required under
Sec.  97.731 and meet all other requirements of this subpart and part
75 of this chapter applicable to the monitoring systems under paragraph
(a)(1) of this section; and
    (3) Record, report, and quality-assure the data from the monitoring
systems under paragraph (a)(1) of this section.
    (b) Compliance deadlines. Except as provided in paragraph (e) of
this section, the owner or operator shall meet the monitoring system
certification and other requirements of paragraphs (a)(1) and (2) of
this section on or before the following dates. 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 TR SO2 Group 2 unit
that commences commercial operation before July 1, 2011, by January 1,
2012.
    (2) For the owner or operator of a TR SO2 Group 2 unit
that commences commercial operation on or after July 1, 2011, by the
later of the following dates:
    (i) January 1, 2012; or
    (ii) 180 calendar days, whichever occurs first, after the date on
which the unit commences commercial operation.
    (3) For the owner or operator of a TR SO2 Group 2 unit
for which construction of a new stack or flue or installation of add-on
SO2 emission controls is completed after the applicable
deadline under paragraph (b)(1) or (2) of this section, 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 SO2 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 TR opt-in
application is submitted and not withdrawn and is not yet approved or
disapproved, by the date specified in Sec.  97.741(c).
    (5) Notwithstanding the dates in paragraphs (b)(1) and (2) of this
section, for the owner or operator of a TR SO2 Group 2 opt-
in unit, by the date on which the TR SO2 Group 2 opt-in unit
enters the TR SO2 Group 2 Trading Program as provided in
Sec.  97.741(h).
    (c) Reporting data. The owner or operator of a TR SO2
Group 2 unit that does not meet the applicable compliance date set
forth in paragraph (b) of this section for any monitoring system under
paragraph (a)(1) of this section shall, for each such monitoring
system, determine, record, and report maximum potential (or, as
appropriate, minimum potential) values for SO2
concentration, stack gas flow rate, stack gas moisture content, fuel
flow rate, and any other parameters required to determine
SO2 mass emissions and heat input in accordance with Sec.
75.31(b)(2) or (c)(3) of this chapter or section 2.4 of appendix D to
part 75 of this chapter, as applicable.
    (d) Prohibitions. (1) No owner or operator of a TR SO2
Group 2 unit shall use any alternative monitoring system, alternative
reference method, or any other alternative to any requirement of this
subpart without having obtained prior written approval in accordance
with Sec.  97.735.
    (2) No owner or operator of a TR SO2 Group 2 unit shall
operate the unit so as to discharge, or allow to be discharged,
SO2 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 TR SO2 Group 2 unit shall
disrupt the continuous emission monitoring system, any portion thereof,
or any other approved emission monitoring method, and thereby avoid
monitoring and recording SO2 mass 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 TR SO2 Group 2 unit shall
retire or permanently discontinue use of the continuous emission
monitoring system, any component thereof, or any other approved
monitoring system under this subpart, except under any one of the
following circumstances:
    (i) During the period that the unit is covered by an exemption
under Sec.  97.705 that is in effect;
    (ii) The owner or operator is monitoring emissions from the unit
with another certified monitoring system approved, in accordance with
the applicable provisions of this subpart and part 75 of this chapter,
by the Administrator for use at that unit that provides emission data
for the same

pollutant or parameter as the retired or discontinued monitoring
system; or
    (iii) The designated representative submits notification of the
date of certification testing of a replacement monitoring system for
the retired or discontinued monitoring system in accordance with Sec.
97.731(d)(3)(i).
    (e) Long-term cold storage. The owner or operator of a TR
SO2 Group 2 unit is subject to the applicable provisions of
Sec.  75.4(d) of this chapter concerning units in long-term cold
storage.

Sec.  97.731  Initial monitoring system certification and
recertification procedures.

    (a) The owner or operator of a TR SO2 Group 2 unit shall
be exempt from the initial certification requirements of this section
for a monitoring system under Sec.  97.730(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 appendices B and D to
part 75 of this chapter are fully met for the certified monitoring
system described in paragraph (a)(1) of this section.
    (b) The recertification provisions of this section shall apply to a
monitoring system under Sec.  97.730(a)(1) exempt from initial
certification requirements under paragraph (a) of this section.
    (c) [Reserved]
    (d) Except as provided in paragraph (a) of this section, the owner
or operator of a TR SO2 Group 2 unit shall comply with the
following initial certification and recertification procedures, for a
continuous monitoring system (i.e., a continuous emission monitoring
system and an excepted monitoring system under appendix D to part 75 of
this chapter) under Sec.  97.730(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.
97.730(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.  97.730(b). In addition, whenever the owner or operator
installs a monitoring system to meet the requirements of this subpart
in a location where no such monitoring system was previously installed,
initial certification in accordance with 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.  97.730(a)(1) that may
significantly affect the ability of the system to accurately measure or
record SO2 mass emissions or heat input rate or to meet the
quality-assurance and quality-control requirements of 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 under Sec.  97.730(a)(1) is
subject to the recertification requirements in Sec.  75.20(g)(6) of
this chapter.
    (3) Approval process for initial certification and recertification.
For initial certification of a continuous monitoring system under Sec.
97.730(a)(1), paragraphs (d)(3)(i) through (v) of this section apply.
For recertifications of such monitoring systems, paragraphs (d)(3)(i)
through (iv) of this section and the procedures in 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) apply, provided that in applying
paragraphs (d)(3)(i) through (iv) of this section, the words
``certification'' and ``initial certification'' are replaced by the
word ``recertification'' and the word ``certified'' is replaced by the
word ``recertified''.
    (i) Notification of certification. The designated representative
shall submit to the appropriate EPA Regional Office and the
Administrator written notice of the dates of certification testing, in
accordance with Sec.  97.733.
    (ii) Certification application. The designated representative shall
submit to the Administrator a certification application for each
monitoring system. A complete certification application shall include
the information specified in 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 TR SO2 Group 2 Trading Program
for a period not to exceed 120 days after receipt by the Administrator
of the complete certification application for the monitoring system
under paragraph (d)(3)(ii) of this section. Data measured and recorded
by the provisionally certified monitoring system, in accordance with
the requirements of part 75 of this chapter, will be considered valid
quality-assured data (retroactive to the date and time of provisional
certification), provided that the Administrator does not invalidate the
provisional certification by issuing a notice of disapproval within 120
days of the date of receipt of the complete certification application
by the Administrator.
    (iv) Certification application approval process. The Administrator
will issue a written notice of approval or disapproval of the
certification application to the owner or operator within 120 days of
receipt of the complete certification application under paragraph
(d)(3)(ii) of this section. In the event the Administrator does not
issue such a notice within such 120-day period, each monitoring system
that meets the applicable performance requirements of part 75 of this
chapter and is included in the certification application will be deemed
certified for use under the TR SO2 Group 2 Trading Program.
    (A) Approval notice. If the certification application is complete
and shows that each monitoring system meets the applicable performance
requirements of part 75 of this chapter, then the Administrator will
issue a written notice of approval of the certification application
within 120 days of receipt.
    (B) Incomplete application notice. If the certification application
is not complete, then the Administrator will issue a written notice of
incompleteness that sets a reasonable date by which the designated
representative must submit the additional information required to
complete the certification application. If the designated
representative does not comply with the notice of incompleteness by the
specified date, then the Administrator may issue a notice of
disapproval under paragraph (d)(3)(iv)(C) of this section. The 120-day
review period specified in paragraph

(d)(3) of this section 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).
    (D) Audit decertification. The Administrator may issue a notice of
disapproval of the certification status of a monitor in accordance with
Sec.  97.732(b).
    (v) Procedures for loss of certification. If the Administrator
issues a notice of disapproval of a certification application under
paragraph (d)(3)(iv)(C) of this section or a notice of disapproval of
certification status under paragraph (d)(3)(iv)(D) of this section,
then:
    (A) The owner or operator shall substitute the following values,
for each disapproved monitoring system, for each hour of unit operation
during the period of invalid data specified under 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 SO2 pollutant concentration
monitor and disapproved flow monitor, respectively, the maximum
potential concentration of SO2 and the maximum potential
flow rate, as defined in sections <IP_ADDRESS> and <IP_ADDRESS> of appendix A to
part 75 of this chapter.
    (2) For a disapproved moisture monitoring system and disapproved
diluent gas monitoring system, respectively, the minimum potential
moisture percentage and either the maximum potential CO2
concentration or the minimum potential O2 concentration (as
applicable), as defined in sections 2.1.5, <IP_ADDRESS>, and <IP_ADDRESS> of
appendix A to part 75 of this chapter.
    (3) For a disapproved fuel flowmeter system, the maximum potential
fuel flow rate, as defined in section <IP_ADDRESS> of appendix D to part 75
of this chapter.
    (B) The designated representative shall submit a notification of
certification retest dates and a new certification application in
accordance with paragraphs (d)(3)(i) and (ii) of this section.
    (C) The owner or operator shall repeat all certification tests or
other requirements that were failed by the monitoring system, as
indicated in the Administrator's notice of disapproval, no later than
30 unit operating days after the date of issuance of the notice of
disapproval.
    (e) The owner or operator of a unit qualified to use the low mass
emissions (LME) excepted methodology under 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) The designated representative of each unit for which the owner
or operator intends to use an alternative monitoring system approved by
the Administrator under subpart E of part 75 of this chapter shall
comply with the applicable notification and application procedures of
Sec.  75.20(f) of this chapter.

Sec.  97.732  Monitoring system out-of-control periods.

    (a) General provisions. Whenever any monitoring system fails to
meet the quality-assurance and quality-control requirements or data
validation requirements of part 75 of this chapter, data shall be
substituted using the applicable missing data procedures in subpart D
or appendix D to part 75 of this chapter.
    (b) Audit decertification. Whenever both an audit of a monitoring
system and a review of the initial certification or recertification
application reveal that any monitoring system should not have been
certified or recertified because it did not meet a particular
performance specification or other requirement under Sec.  97.731 or
the applicable provisions of part 75 of this chapter, both at the time
of the initial certification or recertification application submission
and at the time of the audit, the Administrator will issue a notice of
disapproval of the certification status of such monitoring system. For
the purposes of this paragraph, an audit shall be either a field audit
or an audit of any information submitted to the Administrator or any
permitting authority. By issuing the notice of disapproval, the
Administrator revokes prospectively the certification status of the
monitoring system. The data measured and recorded by the monitoring
system shall not be considered valid quality-assured data from the date
of issuance of the notification of the revoked certification status
until the date and time that the owner or operator completes
subsequently approved initial certification or recertification tests
for the monitoring system. The owner or operator shall follow the
applicable initial certification or recertification procedures in Sec.
97.731 for each disapproved monitoring system.

Sec.  97.733  Notifications concerning monitoring.

    The designated representative of a TR SO2 Group 2 unit
shall submit written notice to the Administrator in accordance with
Sec.  75.61 of this chapter.

Sec.  97.734  Recordkeeping and reporting.

    (a) General provisions. The designated representative shall comply
with all recordkeeping and reporting requirements in this section, the
applicable recordkeeping and reporting requirements in subparts F and G
of part 75 of this chapter, and the requirements of Sec.  97.714(a).
    (b) Monitoring plans. The owner or operator of a TR SO2
Group 2 unit shall comply with requirements of Sec.  75.62 of this
chapter.
    (c) Certification applications. The designated representative shall
submit an application to the Administrator within 45 days after
completing all initial certification or recertification tests required
under Sec.  97.731, including the information required under Sec.
75.63 of this chapter.
    (d) Quarterly reports. The designated representative shall submit
quarterly reports, as follows:
    (1) The designated representative shall report the SO2
mass emissions data and heat input data for the TR SO2 Group
2 unit, in an electronic quarterly report in a format prescribed by the
Administrator, for each calendar quarter beginning with:
    (i) For a unit that commences commercial operation before July 1,
2011, the calendar quarter covering January 1, 2012 through March 31,
2012;
    (ii) For a unit that commences commercial operation on or after
July 1, 2011, the calendar quarter corresponding to the earlier of the
date of provisional certification or the applicable deadline for
initial certification under Sec.  97.730(b), unless that quarter is the
third or fourth quarter of 2011, in which case reporting shall

commence in the quarter covering January 1, 2012 through March 31,
2012;
    (iii) Notwithstanding paragraphs (d)(1)(i) and (ii) of this
section, for a unit for which a TR opt-in application is submitted and
not withdrawn and is not yet approved or disapproved, the calendar
quarter corresponding to the date specified in Sec.  97.741(c); and
    (iv) Notwithstanding paragraphs (d)(1)(i) and (ii) of this section,
for a TR SO2 Group 2 opt-in unit, the calendar quarter
corresponding to the date on which the TR SO2 Group 1 opt-in
unit enters the TR SO2 Group 2 Trading Program as provided
in Sec.  97.71(h).
    (2) The designated representative shall submit each quarterly
report to the Administrator within 30 days after the end of the
calendar quarter covered by the report. Quarterly reports shall be
submitted in the manner specified in Sec.  75.64 of this chapter.
    (3) For TR SO2 Group 2 units that are also subject to
the Acid Rain Program, TR NOX Annual Trading Program, or TR
NOX Ozone Season Trading Program, quarterly reports shall
include the applicable data and information required by subparts F
through H of part 75 of this chapter as applicable, in addition to the
SO2 mass emission data, heat input data, and other
information required by this subpart.
    (4) The Administrator may review and conduct independent audits of
any quarterly report in order to determine whether the quarterly report
meets the requirements of this subpart and part 75 of this chapter,
including the requirement to use substitute data.
    (i) The Administrator will notify the designated representative of
any determination that the quarterly report fails to meet any such
requirements and specify in such notification any corrections that the
Administrator believes are necessary to make through resubmission of
the quarterly report and a reasonable time period within which the
designated representative must respond. Upon request by the designated
representative, the Administrator may specify reasonable extensions of
such time period. Within the time period (including any such
extensions) specified by the Administrator, the designated
representative shall resubmit the quarterly report with the corrections
specified by the Administrator, except to the extent the designated
representative provides information demonstrating that a specified
correction is not necessary because the quarterly report already meets
the requirements of this subpart and part 75 of this chapter that are
relevant to the specified correction.
    (ii) Any resubmission of a quarterly report shall meet the
requirements applicable to the submission of a quarterly report under
this subpart and part 75 of this chapter, except for the deadline set
forth in paragraph (d)(2) of this section.
    (e) Compliance certification. The designated representative shall
submit to the Administrator a compliance certification (in a format
prescribed by the Administrator) in support of each quarterly report
based on reasonable inquiry of those persons with primary
responsibility for ensuring that all of the unit's emissions are
correctly and fully monitored. The certification shall state that:
    (1) The monitoring data submitted were recorded in accordance with
the applicable requirements of this subpart and part 75 of this
chapter, including the quality assurance procedures and specifications;
and
    (2) For a unit with add-on SO2 emission controls and for
all hours where SO2 data are substituted in accordance with
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 SO2 emissions.

Sec.  97.735  Petitions for alternatives to monitoring, recordkeeping,
or reporting requirements.

    (a) The designated representative of a TR SO2 Group 2
unit may submit a petition under Sec.  75.66 of this chapter to the
Administrator, requesting approval to apply an alternative to any
requirement of Sec. Sec.  97.730 through 97.734 or paragraph (5)(i) or
(ii) of the definition of ``owner's share'' in Sec.  97.702.
    (b) A petition submitted under paragraph (a) of this section shall
include sufficient information for the evaluation of the petition,
including, at a minimum, the following information:
    (i) Identification of each unit and source covered by the petition;
    (ii) A detailed explanation of why the proposed alternative is
being suggested in lieu of the requirement;
    (iii) A description and diagram of any equipment and procedures
used in the proposed alternative;
    (iv) A demonstration that the proposed alternative is consistent
with the purposes of the requirement for which the alternative is
proposed and with the purposes of this subpart and part 75 of this
chapter and that any adverse effect of approving the alternative will
be de minimis; and
    (v) Any other relevant information that the Administrator may
require.
    (c) Use of an alternative to any requirement referenced in
paragraph (a) of this section is in accordance with this subpart only
to the extent that the petition is approved in writing by the
Administrator and that such use is in accordance with such approval.

Sec.  97.740  General requirements for TR SO2 Group 2 opt-in units.

    (a) A TR SO2 Group 2 opt-in unit must be a unit that:
    (1) Is located in a State;
    (2) Is not a TR SO2 Group 2 unit under Sec.  97.704;
    (3) Is not covered by a retired unit exemption under Sec.  72.8 of
this chapter that is in effect; and
    (4) Vents all of its emissions to a stack and can meet the
monitoring, recordkeeping, and reporting requirements of this subpart.
    (b) A TR SO2 Group 2 opt-in unit shall be deemed to be a
TR SO2 Group 2 unit for purposes of applying this subpart,
except for Sec. Sec.  97.705, 97.711, and 97.712.
    (c) Solely for purposes of applying the requirements of Sec. Sec.
97.713 through 97.718 and Sec. Sec.  97.730 through 97.735, a unit for
which a TR opt-in application is submitted and not withdrawn and is not
yet approved or disapproved under Sec.  97.742 shall be deemed to be a
TR SO2 Group 2 unit.
    (d) Any TR SO2 Group 2 opt-in unit, and any unit for
which a TR opt-in application is submitted and not withdrawn and is not
yet approved or disapproved under Sec.  97.742, located at the same
source as one or more TR SO2 Group 2 units shall have the
same designated representative and alternate designated representative
as such TR SO2 Group 2 units.

Sec.  97.741  Opt-in process.

    A unit meeting the requirements for a TR SO2 Group 2
opt-in unit in Sec.  97.740(a) may become a TR SO2 Group 2
opt-in unit only if, in accordance with this section, the designated
representative of the unit submits a complete TR opt-in application for
the unit and the Administrator approves the application.
    (a) Applying to opt-in. The designated representative of the unit
may submit a complete TR opt-in application for the unit at any time,
except as provided under Sec.  97.742(e). A complete TR opt-in
application shall include the following elements in a format prescribed
by the Administrator:
    (1) Identification of the unit and the source where the unit is
located,

including source name, source category and NAICS code (or, in the
absence of a NAICS code, an equivalent code), State, plant code,
county, latitude and longitude, and unit identification number and
type;
    (2) A certification that the unit:
    (i) Is not a TR SO2 Group 2 unit under Sec.  97.704;
    (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 (greater than 0 mmBtu) for more than
876 hours during the 6 months immediately preceding submission of the
TR opt-in application;
    (3) A monitoring plan in accordance with Sec. Sec.  97.730 through
97.735;
    (4) A statement that the unit, if approved to become a TR
SO2 Group 2 unit under paragraph (g) of this section, may
withdraw from the TR SO2 Group 2 Trading Program only in
accordance with Sec.  97.742;
    (5) A statement that the unit, if approved to become a TR
SO2 Group 2 unit under paragraph (g) of this section, is
subject to, and the owners and operators of the unit must comply with,
the requirements of Sec.  97.743;
    (6) A complete certificate of representation under Sec.  97.716
consistent with Sec.  97.740, if no designated representative has been
previously designated for the source that includes the unit; and
    (7) The signature of the designated representative and the date
signed.
    (b) Interim review of monitoring plan. The Administrator will
determine, on an interim basis, the sufficiency of the monitoring plan
submitted under paragraph (a)(3) of this section. The monitoring plan
is sufficient, for purposes of interim review, if the plan appears to
contain information demonstrating that the SO2 emission rate
and heat input of the unit and all other applicable parameters are
monitored and reported in accordance with Sec. Sec.  97.730 through
97.735. A determination of sufficiency shall not be construed as
acceptance or approval of the monitoring plan.
    (c) Monitoring and reporting. (1)(i) If the Administrator
determines that the monitoring plan is sufficient under paragraph (b)
of this section, the owner or operator of the unit shall monitor and
report the SO2 emission rate and the heat input of the unit
and all other applicable parameters, in accordance with Sec. Sec.
97.730 through 97.735, starting on the date of certification of the
necessary monitoring systems under Sec. Sec.  97.730 through 97.735 and
continuing until the TR opt-in application submitted under paragraph
(a) of this section is disapproved under this section or, if such TR
opt-in application is approved, the date and time when the unit is
withdrawn from the TR SO2 Group 2 Trading Program in
accordance with Sec.  97.742.
    (ii) The monitoring and reporting under paragraph (c)(1)(i) of this
section shall cover the entire control period immediately before the
date on which the unit enters the TR SO2 Group 2 Trading
Program under paragraph (h) of this section, during which period
monitoring system availability must not be less than 98 percent under
Sec. Sec.  97.730 through 97.735 and the unit must be in full
compliance with any applicable State or Federal emissions or emissions-
related requirements.
    (2) To the extent the SO2 emission rate and the heat
input of the unit are monitored and reported in accordance with
Sec. Sec.  97.730 through 97.735 for one or more entire control
periods, in addition to the control period under paragraph (c)(1)(ii)
of this section, during which control periods monitoring system
availability is not less than 98 percent under Sec. Sec.  97.730
through 97.735 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
TR SO2 Group 2 Trading Program under paragraph (h) of this
section, such information shall be used as provided in paragraphs (e)
and (f) of this section.
    (d) Statement on compliance. After submitting to the Administrator
all quarterly reports required for the unit under paragraph (c) of this
section, the designated representative shall submit, in a format
prescribed by the Administrator, to the Administrator a statement that,
for the years covered by such quarterly reports, the unit was in full
compliance with any applicable State or Federal emissions or emissions-
related requirements.
    (e) Baseline heat input. The unit's baseline heat input shall
equal:
    (1) If the unit's SO2 emission rate and heat input are
monitored and reported for only one entire control period, in
accordance with paragraph (c) of this section, the unit's total heat
input (in mmBtu) for such control period; or
    (2) If the unit's SO2 emission rate and heat input are
monitored and reported for more than one entire control period, in
accordance with paragraph (c) of this section, the average of the
amounts of the unit's total heat input (in mmBtu) for such control
periods.
    (f) Baseline SO2 emission rate. The unit's baseline SO2
emission rate shall equal:
    (1) If the unit's SO2 emission rate and heat input are
monitored and reported for only one entire control period, in
accordance with paragraph (c) of this section, the unit's
SO2 emission rate (in lb/mmBtu) for such control period;