( a) Once a complete certificate of representation under § 97.213 has been submitted and received, the permitting authority and the Administrator will rely on the certificate of representation unless and until a superseding complete certificate of representation under § 97.213 is received by the Administrator.

( b) Except as provided in § 97.212( a) or ( b), no objection or other communication submitted to the permitting authority or the Administrator concerning the authorization, or any representation,

action, inaction, or submission, of the CAIR designated representative shall affect any representation, action, inaction,

or submission of the CAIR designated representative or the finality of any decision or order by the permitting authority or the Administrator under the CAIR SO2 Trading Program. 7/ 29/ 05 Draft  Do Not Quote or Cite 289 ( c) Neither the permitting authority nor the Administrator will adjudicate any private legal dispute concerning the authorization or any representation, action, inaction, or submission of any CAIR designated representative, including private legal disputes concerning the proceeds of CAIR SO2 allowance transfers.

Subpart CCC   Permits § 97.220 General CAIR SO2 Trading Program permit requirements.

( a) For each CAIR SO2 source required to have a title V operating permit or required, under subpart III of this part, to have a title V operating permit or other federally enforceable permit, such permit shall include a CAIR permit administered by the permitting authority for the title V operating permit or the federally enforceable permit as applicable. The CAIR portion of the title V permit or other federally enforceable permit as applicable shall be administered in accordance with the permitting authority's title V operating permits regulations promulgated under part 70 or 71 of this chapter or the permitting authority's regulations for other federally enforceable permits as applicable,

except as provided otherwise by this subpart and subpart III of this part.

( b) Each CAIR permit shall contain, with regard to the CAIR SO2 source and the CAIR SO2 units at the source covered by the CAIR 7/ 29/ 05 Draft  Do Not Quote or Cite 290 permit, all applicable CAIR SO2 Trading Program, CAIR NOX Annual Trading Program, and CAIR NOX Ozone Season Trading Program requirements and shall be a complete and separable portion of the title V operating permit or other federally enforceable permit under paragraph ( a) of this section.

§ 97.221 Submission of CAIR permit applications.

( a) Duty to apply. The CAIR designated representative of any CAIR SO2 source required to have a title V operating permit shall submit to the permitting authority a complete CAIR permit application under § 97.222 for the source covering each CAIR SO2 unit at the source at least 18 months ( or such lesser time provided by the permitting authority) before the later of January 1, 2010 or the date on which the CAIR SO2 unit commences operation.

( b) Duty to Reapply. For a CAIR SO2 source required to have a title V operating permit, the CAIR designated representative shall submit a complete CAIR permit application under § 97.222 for the source covering each CAIR SO2 unit at the source to renew the CAIR permit in accordance with the permitting authority's title V operating permits regulations addressing permit renewal.

§ 97.222 Information requirements for CAIR permit applications.

A complete CAIR permit application shall include the following elements concerning the CAIR SO2 source for which the application is submitted, in a format prescribed by the permitting 7/ 29/ 05 Draft  Do Not Quote or Cite 291 authority:

( a) Identification of the CAIR SO2 source;

( b) Identification of each CAIR SO2 unit at the CAIR SO2 source; and ( c) The standard requirements under § 97.206.

§ 97.223 CAIR permit contents and term.

( a) Each CAIR permit will contain, in a format prescribed by the permitting authority, all elements required for a complete CAIR permit application under § 97.222.

( b) Each CAIR permit is deemed to incorporate automatically the definitions of terms under § 97.202 and, upon recordation by the Administrator under subpart FFF, GGG, or III of this part,

every allocation, transfer, or deduction of a CAIR SO2 allowance to or from the compliance account of the CAIR SO2 source covered by the permit.

( c) The term of the CAIR permit will be set by the permitting authority, as necessary to facilitate coordination of the renewal of the CAIR permit with issuance, revision, or renewal of the CAIR SO2 source's title V operating permit or other federally enforceable permit as applicable.

§ 97.224 CAIR permit revisions.

Except as provided in § 97.223( b), the permitting authority will revise the CAIR permit, as necessary, in accordance with the 7/ 29/ 05 Draft  Do Not Quote or Cite 292 permitting authority's title V operating permits regulations or the permitting authority's regulations for other federally enforceable permits as applicable addressing permit revisions.

Subpart DDD   [ Reserved]

Subpart EEE   [ Reserved]

Subpart FFF   CAIR SO2 Allowance Tracking System § 97.250 [ Reserved]

§ 97.251 Establishment of accounts.

( a) Compliance accounts. Except as provided in § 97.284( e),

upon receipt of a complete certificate of representation under § 97.213, the Administrator will establish a compliance account for the CAIR SO2 source for which the certificate of representation was submitted, unless the source already has a 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 CAIR SO2 allowances. An application for a general account may designate one and only one CAIR authorized account representative and one and only one alternate CAIR authorized account representative who may act on behalf of the CAIR authorized account representative. The agreement by which the alternate CAIR authorized account representative is selected shall include a procedure for 7/ 29/ 05 Draft  Do Not Quote or Cite 293 authorizing the alternate CAIR authorized account representative to act in lieu of the CAIR authorized account representative.

( ii) A complete application for a general account shall be submitted to the Administrator and 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 CAIR authorized account representative and any alternate CAIR authorized account representative;

( B) Organization name and type of organization, if applicable;

( C) A list of all persons subject to a binding agreement for the CAIR authorized account representative and any alternate CAIR authorized account representative to represent their ownership interest with respect to the CAIR SO2 allowances held in the general account;

( D) The following certification statement by the CAIR authorized account representative and any alternate CAIR authorized account representative: " I certify that I was selected as the CAIR authorized account representative or the alternate CAIR authorized account representative, as applicable, by an agreement that is binding on all persons who have an ownership interest with respect to CAIR SO2 allowances held in the general account. I certify that I have all the necessary authority to 7/ 29/ 05 Draft  Do Not Quote or Cite 294 carry out my duties and responsibilities under the CAIR SO2 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 or a court regarding the general account."

( E) The signature of the CAIR authorized account representative and any alternate CAIR authorized account representative and the dates signed.

( iii) Unless otherwise required by the permitting authority or the Administrator, documents of agreement referred to in the application for a general account shall not be submitted to the permitting authority or the Administrator. Neither the permitting authority nor the Administrator shall be under any obligation to review or evaluate the sufficiency of such documents, if submitted.

( 2) Authorization of CAIR authorized account representative.

( i) Upon receipt by the Administrator of a complete application for a general account under paragraph ( b)( 1) of this section:

( A) The Administrator will establish a general account for the person or persons for whom the application is submitted.

( B) The CAIR authorized account representative and any alternate CAIR authorized account representative for the general account shall represent and, by his or her representations, 7/ 29/ 05 Draft  Do Not Quote or Cite 295 actions, inactions, or submissions, legally bind each person who has an ownership interest with respect to CAIR SO2 allowances held in the general account in all matters pertaining to the CAIR SO2 Trading Program, notwithstanding any agreement between the CAIR authorized account representative or any alternate CAIR authorized account representative and such person. Any such person shall be bound by any order or decision issued to the CAIR authorized account representative or any alternate CAIR authorized account representative by the Administrator or a court regarding the general account.

( C) Any representation, action, inaction, or submission by any alternate CAIR authorized account representative shall be deemed to be a representation, action, inaction, or submission by the CAIR authorized account representative.

( ii) Each submission concerning the general account shall be submitted, signed, and certified by the CAIR authorized account representative or any alternate CAIR authorized account representative for the persons having an ownership interest with respect to CAIR SO2 allowances held in the general account. Each such submission shall include the following certification statement by the CAIR authorized account representative or any alternate CAIR authorized account representative: " I am authorized to make this submission on behalf of the persons having an ownership interest with respect to the CAIR SO2 allowances held in 7/ 29/ 05 Draft  Do Not Quote or Cite 296 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) The Administrator will accept or act on a submission concerning the general account only if the submission has been made, signed, and certified in accordance with paragraph ( b)( 2)( ii) of this section.

( 3) Changing CAIR authorized account representative and alternate CAIR authorized account representative; changes in persons with ownership interest.

( i) The CAIR authorized account representative for 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 CAIR authorized account representative before the time and date when the Administrator receives the 7/ 29/ 05 Draft  Do Not Quote or Cite 297 superseding application for a general account shall be binding on the new CAIR authorized account representative and the persons with an ownership interest with respect to the CAIR SO2 allowances in the general account.

( ii) The alternate CAIR authorized account representative for 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 CAIR 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 CAIR authorized account representative and the persons with an ownership interest with respect to the CAIR SO2 allowances in the general account.

( iii)( A) In the event a new person having an ownership interest with respect to CAIR SO2 allowances in the general account is not included in the list of such persons in the application for a general account, such new 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 CAIR authorized account representative and any alternate CAIR authorized account representative of the account, and the decisions and orders of the Administrator or a court, as if the 7/ 29/ 05 Draft  Do Not Quote or Cite 298 new person were included in such list.

( B) Within 30 days following any change in the persons having an ownership interest with respect to CAIR SO2 allowances in the general account, including the addition of persons, the CAIR authorized account representative or any alternate CAIR 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 CAIR SO2 allowances in the general account to include the change.

( 4) Objections concerning CAIR 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 CAIR authorized account representative or any alternative CAIR authorized account representative for a general account shall affect any representation, action, inaction, or submission of the CAIR authorized account representative or any alternative CAIR 7/ 29/ 05 Draft  Do Not Quote or Cite 299 authorized account representative or the finality of any decision or order by the Administrator under the CAIR SO2 Trading Program.

( iii) The Administrator will not adjudicate any private legal dispute concerning the authorization or any representation,

action, inaction, or submission of the CAIR authorized account representative or any alternative CAIR authorized account representative for a general account, including private legal disputes concerning the proceeds of CAIR SO2 allowance transfers.

( c) Account identification. The Administrator will assign a unique identifying number to each account established under paragraph ( a) or ( b) of this section.

§ 97.252 Responsibilities of CAIR authorized account representative.

Following the establishment of a CAIR SO2 Allowance Tracking System account, all submissions to the Administrator pertaining to the account, including, but not limited to, submissions concerning the deduction or transfer of CAIR SO2 allowances in the account,

shall be made only by the CAIR authorized account representative for the account.

§ 97.253 Recordation of CAIR SO2 allowances.

( a)( 1) After a compliance account is established under § 97.251( a) or § 73.31( a) or ( b) of this chapter, the Administrator will record in the compliance account any CAIR SO2 allowance 7/ 29/ 05 Draft  Do Not Quote or Cite 300 allocated to any CAIR SO2 unit at the source for each of the 30 years starting the later of 2010 or the year in which the compliance account is established and any CAIR SO2 allowance allocated for each of the 30 years starting the later of 2010 or the year in which the compliance account is established and transferred to the source in accordance with subpart GGG of this part or subpart D of part 73 of this chapter.

( 2) In 2011 and each year thereafter, after Administrator has completed all deductions under § 97.254( b), the Administrator will record in the compliance account any CAIR SO2 allowance allocated to any CAIR SO2 unit at the source for the new 30th year ( i. e., the year that is 30 years after the calendar year for which such deductions are or could be made) and any CAIR SO2 allowance allocated for the new 30th year and transferred to the source in accordance with subpart GGG of this part or subpart D of part 73 of this chapter.

( b)( 1) After a general account is established under § 97.251( b) or § 73.31( c) of this chapter, the Administrator will record in the general account any CAIR SO2 allowance allocated for each of the 30 years starting the later of 2010 or the year in which the general account is established and transferred to the general account in accordance with subpart GGG of this part or subpart D of part 73 of this chapter.

( 2) In 2011 and each year thereafter, after Administrator has 7/ 29/ 05 Draft  Do Not Quote or Cite 301 completed all deductions under § 97.254( b), the Administrator will record in the general account any CAIR SO2 allowance allocated for the new 30th year ( i. e., the year that is 30 years after the calendar year for which such deductions are or could be made) and transferred to the general account in accordance with subpart GGG of this part or subpart D of part 73 of this chapter.

( c) Serial numbers for allocated CAIR SO2 allowances. When recording the allocation of CAIR SO2 allowances issued by a permitting authority under § 97.288, the Administrator will assign each such CAIR SO2 allowance a unique identification number that will include digits identifying the year of the control period for which the CAIR SO2 allowance is allocated.

§ 97.254 Compliance with CAIR SO2 emissions limitation.

( a) Allowance transfer deadline. The CAIR SO2 allowances are available to be deducted for compliance with a source's CAIR SO2 emissions limitation for a control period in a given calendar year only if the CAIR SO2 allowances:

( 1) Were allocated for the control period in the year or a prior year;

( 2) Are held in the compliance account as of the allowance transfer deadline for the control period or are transferred into the compliance account by a CAIR SO2 allowance transfer correctly submitted for recordation under § 97.260 by the allowance transfer deadline for the control period; and 7/ 29/ 05 Draft  Do Not Quote or Cite 302 ( 3) Are not necessary for deductions for excess emissions for a prior control period under paragraph ( d) of this section or for deduction under part 77 of this chapter.

( b) Deductions for compliance. Following the recordation, in accordance with § 97.261, of CAIR SO2 allowance transfers submitted for recordation in a source's compliance account by the allowance transfer deadline for a control period, the Administrator will deduct from the compliance account CAIR SO2 allowances available under paragraph ( a) of this section in order to determine whether the source meets the CAIR SO2 emissions limitation for the control period as follows:

( 1) For a CAIR SO2 source subject to an Acid Rain emissions limitation, the Administrator will, in the following order:

( i) Deduct the amount of CAIR SO2 allowances, available under paragraph ( a) of this section and not issued by a permitting authority under § 97.288, that is required under § § 73.35( b) and ( c) of this part. If there are sufficient CAIR SO2 allowances to complete this deduction, the deduction will be treated as satisfying the requirements of § § 73.35( b) and ( c) of this chapter.

( ii) Deduct the amount of CAIR SO2 allowances, available under paragraph ( a) of this section and not issued by a permitting authority under § 97.288, that is required under § § 73.35( d) and 77.5 of this part. If there are sufficient CAIR SO2 allowances to 7/ 29/ 05 Draft  Do Not Quote or Cite 303 complete this deduction, the deduction will be treated as satisfying the requirements of § § 73.35( d) and 77.5 of this chapter.

( iii) Treating the CAIR SO2 allowances deducted under paragraph ( b)( 1)( i) of this section as also being deducted under this paragraph ( b)( 1)( iii), deduct CAIR SO2 allowances available under paragraph ( a) of this section ( including any issued by a permitting authority under § 97.288) in order to determine whether the source meets the CAIR SO2 emissions limitation for the control period, as follows:

( A) Until the tonnage equivalent of the CAIR SO2 allowances deducted equals, or exceeds in accordance with paragraphs ( c)( 1)

and ( 2) of this section, the number of tons of total sulfur dioxide emissions, determined in accordance with subpart HHH of this part, from all CAIR SO2 units at the source for the control period; or ( B) If there are insufficient CAIR SO2 allowances to complete the deductions in paragraph ( b)( 1)( iii)( A) of this section, until no more CAIR SO2 allowances available under paragraph ( a) of this section ( including any issued by a permitting authority under § 97.288) remain in the compliance account.

( 2) For a CAIR SO2 source not subject to an Acid Rain emissions limitation, the Administrator will deduct CAIR SO2 allowances available under paragraph ( a) of this section 7/ 29/ 05 Draft  Do Not Quote or Cite 304 ( including any issued by a permitting authority under § 97.288) in order to determine whether the source meets the CAIR SO2 emissions limitation for the control period, as follows:

( i) Until the tonnage equivalent of the CAIR SO2 allowances deducted equals, or exceeds in accordance with paragraphs ( c)( 1)

and ( 2) of this section, the number of tons of total sulfur dioxide emissions, determined in accordance with subpart HHH of this part, from all CAIR SO2 units at the source for the control period; or ( ii) If there are insufficient CAIR SO2 allowances to complete the deductions in paragraph ( b)( 2)( i) of this section, until no more CAIR SO2 allowances available under paragraph ( a) of this section ( including any issued by a permitting authority § 97.288)

remain in the compliance account.

( c)( 1) Identification of CAIR SO2 allowances by serial number.

The CAIR authorized account representative for a source's compliance account may request that specific CAIR SO2 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. Such request shall be submitted to the Administrator by the allowance transfer deadline for the control period and include, in a format prescribed by the Administrator, the identification of the CAIR SO2 source and the appropriate serial numbers. 7/ 29/ 05 Draft  Do Not Quote or Cite 305 ( 2) First in, first out. The Administrator will deduct CAIR SO2 allowances under paragraph ( b) or ( d) of this section from the source's compliance account, in the absence of an identification or in the case of a partial identification of CAIR SO2 allowances by serial number under paragraph ( c)( 1) of this section, on a first in, first out ( FIFO) accounting basis in the following order:

( i) Any CAIR SO2 allowances that were allocated to the units at the source for a control period before 2010, in the order of recordation;

( ii) Any CAIR SO2 allowances that were allocated to any entity for a control period before 2010 and transferred and recorded in the compliance account pursuant to subpart GGG of this part or subpart D of part 73 of this chapter, in the order of recordation;

( iii) Any CAIR SO2 allowances that were allocated to the units at the source for a control period during 2010 through 2014, in the order of recordation;

( iv) Any CAIR SO2 allowances that were allocated to any entity for a control period during 2010 through 2014 and transferred and recorded in the compliance account pursuant to subpart GGG of this part or subpart D of part 73 of this chapter, in the order of recordation;

( v) Any CAIR SO2 allowances that were allocated to the units at the source for a control period in 2015 or later, in the order 7/ 29/ 05 Draft  Do Not Quote or Cite 306 of recordation; and ( vi) Any CAIR SO2 allowances that were allocated to any entity for a control period in 2015 or later and transferred and recorded in the compliance account pursuant to subpart GGG of this part or subpart D of part 73 of this chapter, in the order of recordation.

( d) Deductions for excess emissions.

( 1) After making the deductions for compliance under paragraph ( b) of this section for a control period in a calendar year in which the CAIR SO2 source has excess emissions, the Administrator will deduct from the source's compliance account the tonnage equivalent in CAIR SO2 allowances, allocated for the control period in the immediately following calendar year ( including any issued by a permitting authority under § 97.288),

equal to, or exceeding in accordance with paragraphs ( c)( 1) and ( 2) of this section the sum of the following amounts:

( i) The number of tons of the source's excess emissions minus, if the source is subject to an Acid Rain emissions limitation, the amount of the CAIR SO2 allowances required to be deducted under paragraph ( b)( 1)( ii) of this section; and ( ii) Two times:

( A) The number of tons of the source's excess emissions, if the source is not subject to an Acid Rain emissions limitation; or ( B) The number of tons of the source's excess emissions minus the amount of the CAIR SO2 allowances required to be deducted under 7/ 29/ 05 Draft  Do Not Quote or Cite 307 paragraph ( b)( 1)( ii) of this section, if the source is subject to an Acid Rain emissions limitation.

( 2) Any allowance deduction required under paragraph ( d)( 1)

of this section shall not affect the liability of the owners and operators of the CAIR SO2 source or the CAIR SO2 units at the source for any fine, penalty, or assessment, or their obligation to comply with any other remedy, for the same violations, as ordered under the Clean Air Act or applicable State law.

( e) Recordation of deductions. The Administrator will record in the appropriate compliance account all deductions from such an account under paragraph ( b) or ( d) of this section.

( f) Administrator's action on submissions.

( 1) The Administrator may review and conduct independent audits concerning any submission under the CAIR SO2 Trading Program and make appropriate adjustments of the information in the submissions.

( 2) The Administrator may deduct CAIR SO2 allowances from or transfer CAIR SO2 allowances to a source's compliance account based on the information in the submissions, as adjusted under paragraph ( f)( 1) of this section.

§ 97.255 Banking.

( a) CAIR SO2 allowances may be banked for future use or transfer in a compliance account or a general account in accordance with paragraph ( b) of this section. 7/ 29/ 05 Draft  Do Not Quote or Cite 308 ( b) Any CAIR SO2 allowance that is held in a compliance account or a general account will remain in such account unless and until the CAIR SO2 allowance is deducted or transferred under § 97.254, § 97.256, or subpart GGG of this part.

§ 97.256 Account error.

The Administrator may, at his or her sole discretion and on his or her own motion, correct any error in any CAIR SO2 Allowance Tracking System account. Within 10 business days of making such correction, the Administrator will notify the CAIR authorized account representative for the account.

§ 97.257 Closing of general accounts.

( a) The CAIR authorized account representative of a general account may submit to the Administrator a request to close the account, which shall include a correctly submitted allowance transfer under § 97.260 for any CAIR SO2 allowances in the account to one or more other CAIR SO2 Allowance Tracking System accounts.

( b) If a general account has no allowance transfers in or out of the account for a 12 month period or longer and does not contain any CAIR SO2 allowances, the Administrator may notify the CAIR authorized account representative for the account that the account will be closed following 20 business days after the notice is sent. The account will be closed after the 20 day period unless, before the end of the 20 day period, the Administrator receives a correctly submitted transfer of CAIR SO2 allowances into 7/ 29/ 05 Draft  Do Not Quote or Cite 309 the account under § 97.260 or a statement submitted by the CAIR authorized account representative demonstrating to the satisfaction of the Administrator good cause as to why the account should not be closed.

Subpart GGG   CAIR SO2 Allowance Transfers § 97.260 Submission of CAIR SO2 allowance transfers.

( a) A CAIR authorized account representative seeking recordation of a CAIR SO2 allowance transfer shall submit the transfer to the Administrator. To be considered correctly submitted, the CAIR SO2 allowance transfer shall include the following elements, in a format specified by the Administrator:

( 1) The account numbers of both the transferor and transferee accounts;

( 2) The serial number of each CAIR SO2 allowance that is in the transferor account and is to be transferred; and ( 3) The name and signature of the CAIR authorized account representatives of the transferor and transferee accounts and the dates signed.

( b)( 1) The CAIR authorized account representative for the transferee account can meet the requirements in paragraph ( a)( 3)

of this section by submitting, in a format prescribed by the Administrator, a statement signed by the CAIR authorized account representative and identifying each account into which any transfer of allowances, submitted on or after the date on which 7/ 29/ 05 Draft  Do Not Quote or Cite 310 the Administrator receives such statement, is authorized. Such authorization shall be binding on any CAIR authorized account representative for such account and shall apply to all transfers into the account that are submitted on or after such date of receipt, unless and until the Administrator receives a statement signed by the CAIR authorized account representative retracting the authorization for the account.

( 2) The statement under paragraph ( b)( 1) of this section shall include the following: " By this signature I authorize any transfer of allowances into each account listed herein, except that I do not waive any remedies under State or Federal law to obtain correction of any erroneous transfers into such accounts.

This authorization shall be binding on any CAIR authorized account representative for such account unless and until a statement signed by the CAIR authorized account representative retracting this authorization for the account is received by the Administrator."

§ 97.261 EPA recordation.

( a) Within 5 business days ( except as necessary to perform a transfer in perpetuity of CAIR SO2 allowances allocated to a CAIR SO2 unit or as provided in paragraph ( b) of this section) of receiving a CAIR SO2 allowance transfer, the Administrator will record a CAIR SO2 allowance transfer by moving each CAIR SO2 allowance from the transferor account to the transferee account as 7/ 29/ 05 Draft  Do Not Quote or Cite 311 specified by the request, provided that:

( 1) The transfer is correctly submitted under § 97.260;

( 2) The transferor account includes each CAIR SO2 allowance identified by serial number in the transfer; and ( 3) The transfer is in accordance with the limitation on transfer under § 74.42 of this chapter and § 74.47( c) of this chapter, as applicable.

( b) A CAIR SO2 allowance transfer that is submitted for recordation after the allowance transfer deadline for a control period and that includes any CAIR SO2 allowances allocated for any control period before such allowance transfer deadline will not be recorded until after the Administrator completes the deductions under § 97.254 for the control period immediately before such allowance transfer deadline.

( c) Where a CAIR SO2 allowance transfer submitted for recordation fails to meet the requirements of paragraph ( a) of this section, the Administrator will not record such transfer.

§ 97.262 Notification.

( a) Notification of recordation. Within 5 business days of recordation of a CAIR SO2 allowance transfer under § 97.261, the Administrator will notify the CAIR authorized account representatives of both the transferor and transferee accounts.

( b) Notification of non recordation. Within 10 business days of receipt of a CAIR SO2 allowance transfer that fails to meet the 7/ 29/ 05 Draft  Do Not Quote or Cite 312 requirements of § 97.261( a), the Administrator will notify the CAIR authorized account representatives of both accounts subject to the transfer of:

( 1) A decision not to record the transfer, and ( 2) The reasons for such non recordation.

( c) Nothing in this section shall preclude the submission of a CAIR SO2 allowance transfer for recordation following notification of non recordation.

Subpart HHH   Monitoring and Reporting § 97.270 General Requirements.

The owners and operators, and to the extent applicable, the CAIR designated representative, of a CAIR SO2 unit, shall comply with the monitoring, recordkeeping, and reporting requirements as provided in this subpart and in subparts F and G of part 75 of this chapter. For purposes of complying with such requirements,

the definitions in § 97.202 and in § 72.2 of this chapter shall apply, and the terms " affected unit," " designated representative," and " continuous emission monitoring system" ( or " CEMS") in part 75 of this chapter shall be deemed to refer to the terms " CAIR SO2 unit," " CAIR designated representative," and " continuous emission monitoring system" ( or " CEMS") respectively,

as defined in § 97.202. The owner or operator of a unit that is not a CAIR SO2 unit but that is monitored under § 75.16( b)( 2) of this chapter shall comply with the same monitoring, recordkeeping, 7/ 29/ 05 Draft  Do Not Quote or Cite 313 and reporting requirements as a CAIR SO2 unit.

( a) Requirements for installation, certification, and data accounting. The owner or operator of each CAIR SO2 unit shall:

( 1) Install all monitoring systems required under this subpart for monitoring SO2 mass emissions and individual unit heat input ( including all systems required to monitor SO2 concentration,

stack gas moisture content, stack gas flow rate, CO2 or O2 concentration, and fuel flow rate, as applicable, in accordance with § § 75.11 and 75.16 of this chapter);

( 2) Successfully complete all certification tests required under § 97.271 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. The owner or operator shall meet the monitoring system certification and other requirements of paragraphs ( a)( 1) and ( 2) of this section on or before the following dates. The owner or operator shall record, report, and quality assure the data from the monitoring systems under paragraph ( a)( 1) of this section on and after the following dates.

( 1) For the owner or operator of a CAIR SO2 unit that commences commercial operation before July 1, 2008, by January 1,

2009. 7/ 29/ 05 Draft  Do Not Quote or Cite 314 ( 2) For the owner or operator of a CAIR SO2 unit that commences commercial operation on or after July 1, 2008, by the later of the following dates:

( i) January 1, 2009; or ( ii) 90 unit operating days or 180 calendar days, whichever occurs first, after the date on which the unit commences commercial operation.

( 3) For the owner or operator of a CAIR SO2 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), ( 2), ( 4), or ( 5) of this section, by 90 unit operating days or 180 calendar days, whichever occurs first, after the date on which emissions first exit to the atmosphere through the new stack or flue or add on 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 CAIR opt in permit application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under subpart III of this part, by the date specified in § 97.284( b).

( 5) Notwithstanding the dates in paragraphs ( b)( 1) and ( 2) of this section, for the owner or operator of a CAIR SO2 opt in unit under subpart III of this part, by the date on which the CAIR SO2 opt in unit enters the CAIR SO2 Trading Program as provided in § 97.284( g). 7/ 29/ 05 Draft  Do Not Quote or Cite 315 ( c) Reporting data.

( 1) Except as provided in paragraph ( c)( 2) of this section,

the owner or operator of a CAIR SO2 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, SO2 emission rate, stack gas flow rate, stack gas moisture content, fuel flow rate, and any other parameters required to determine SO2 mass emissions and heat input in accordance with § 75.31( b)( 2) or ( c)( 3) of this chapter or section 2.4 of appendix D to part 75 of this chapter, as applicable.

( 2) The owner or operator of a CAIR SO2 unit that does not meet the applicable compliance date set forth in paragraph ( b)( 3)

of this section for any monitoring system under paragraph ( a)( 1)

of this section shall, for each such monitoring system, determine,

record, and report substitute data using the applicable missing data procedures in subpart D of or appendix D to part 75 of this chapter, in lieu of the maximum potential ( or, as appropriate,

minimum potential) values, for a parameter if the owner or operator demonstrates that there is continuity between the data streams for that parameter before and after the construction or installation under paragraph ( b)( 3) of this section. 7/ 29/ 05 Draft  Do Not Quote or Cite 316 ( d) Prohibitions ( 1) No owner or operator of a CAIR SO2 unit shall use any alternative monitoring system, alternative reference method, or any other alternative to any requirement of this subpart without having obtained prior written approval in accordance with § 97.275.

( 2) No owner or operator of a CAIR SO2 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 CAIR SO2 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, except for periods of recertification or periods when calibration, quality assurance testing, or maintenance is performed in accordance with the applicable provisions of this subpart and part 75 of this chapter.

( 4) No owner or operator of a CAIR SO2 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: 7/ 29/ 05 Draft  Do Not Quote or Cite 317 ( i) During the period that the unit is covered by an exemption under § 97.205 that is in effect;

( ii) The owner or operator is monitoring emissions from the unit with another certified monitoring system approved, in accordance with the applicable provisions of this subpart and part 75 of this chapter, by the Administrator for use at that unit that provides emission data for the same pollutant or parameter as the retired or discontinued monitoring system; or ( iii) The CAIR designated representative submits notification of the date of certification testing of a replacement monitoring system for the retired or discontinued monitoring system in accordance with § 97.271( d)( 3)( i).

( e) Long term cold storage. The owner or operator of a CAIR SO2 unit is subject to the applicable provisions of part 75 of this chapter concerning units in long term cold storage.

§ 97.271 Initial certification and recertification procedures.

( a) The owner or operator of a CAIR SO2 unit shall be exempt from the initial certification requirements of this section for a monitoring system under § 97.270( a)( 1) if the following conditions are met:

( 1) The monitoring system has been previously certified in accordance with part 75 of this chapter; and ( 2) The applicable quality assurance and quality control requirements of § 75.21 of this chapter and appendix B and 7/ 29/ 05 Draft  Do Not Quote or Cite 318 appendix D to part 75 of this chapter are fully met for the certified monitoring system described in paragraph ( a)( 1) of this section.

( b) The recertification provisions of this section shall apply to a monitoring system under § 97.270( 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 CAIR SO2 unit shall comply with the following initial certification and recertification procedures,

for a continuous monitoring system ( i. e., a continuous emission monitoring system and an excepted monitoring system under appendix D to part 75 of this chapter) under § 97.270( a)( 1). The owner or operator of a unit that qualifies to use the low mass emissions excepted monitoring methodology under § 75.19 of this chapter or that qualifies to use an alternative monitoring system under subpart E of part 75 of this chapter shall comply with the procedures in paragraph ( e) or ( f) of this section respectively.

( 1) Requirements for initial certification. The owner or operator shall ensure that each continuous monitoring system under § 97.270( a)( 1) ( including the automated data acquisition and handling system) successfully completes all of the initial certification testing required under § 75.20 of this chapter by 7/ 29/ 05 Draft  Do Not Quote or Cite 319 the applicable deadline in § 97.270( b). In addition, whenever the owner or operator installs a monitoring system to meet the requirements of this subpart in a location where no such monitoring system was previously installed, initial certification in accordance with § 75.20 of this chapter is required.

( 2) Requirements for recertification. Whenever the owner or operator makes a replacement, modification, or change in any certified continuous emission monitoring system under § 97.270( a)( 1) that may significantly affect the ability of the system to accurately measure or record SO2 mass emissions or heat input rate or to meet the quality assurance and quality control requirements of § 75.21 of this chapter or appendix B to part 75 of this chapter, the owner or operator shall recertify the monitoring system in accordance with § 75.20( b) of this chapter.

Furthermore, whenever the owner or operator makes a replacement,

modification, or change to the flue gas handling system or the unit's operation that may significantly change the stack flow or concentration profile, the owner or operator shall recertify each continuous emission monitoring system whose accuracy is potentially affected by the change, in accordance with § 75.20( b)

of this chapter. Examples of changes to a continuous emission monitoring system that require recertification include:

replacement of the analyzer, complete replacement of an existing continuous emission monitoring system, or change in location or 7/ 29/ 05 Draft  Do Not Quote or Cite 320 orientation of the sampling probe or site. Any fuel flowmeter system under § 97.270( a)( 1) is subject to the recertification requirements in § 75.20( g)( 6) of this chapter.

( 3) Approval process for initial certification and recertification. Paragraphs ( d)( 3)( i) through ( iv) of this section apply to both initial certification and recertification of a continuous monitoring system under § 97.270( a)( 1). For recertifications, replace the words " certification" and " initial certification" with the word " recertification", replace the word " certified" with the word " recertified," and follow the procedures in § § 75.20( b)( 5) and ( g)( 7) of this chapter in lieu of the procedures in paragraph ( d)( 3)( v) of this section.

( i) Notification of certification. The CAIR designated representative shall submit to the appropriate EPA Regional Office and the Administrator written notice of the dates of certification testing, in accordance with § 97.273.

( ii) Certification application. The CAIR designated representative shall submit to the Administrator a certification application for each monitoring system. A complete certification application shall include the information specified in § 75.63 of this chapter.

( iii) Provisional certification date. The provisional certification date for a monitoring system shall be determined in accordance with § 75.20( a)( 3) of this chapter. A provisionally 7/ 29/ 05 Draft  Do Not Quote or Cite 321 certified monitoring system may be used under the CAIR SO2 Trading Program for a period not to exceed 120 days after receipt by the Administrator of the complete certification application for the monitoring system under paragraph ( d)( 3)( ii) of this section.

Data measured and recorded by the provisionally certified monitoring system, in accordance with the requirements of part 75 of this chapter, will be considered valid quality assured data ( retroactive to the date and time of provisional certification),

provided that the Administrator does not invalidate the provisional certification by issuing a notice of disapproval within 120 days of the date of receipt of the complete certification application by the Administrator.

( iv) Certification application approval process. The Administrator will issue a written notice of approval or disapproval of the certification application to the owner or operator within 120 days of receipt of the complete certification application under paragraph ( d)( 3)( ii) of this section. In the event the Administrator does not issue such a notice within such 120 day period, each monitoring system that meets the applicable performance requirements of part 75 of this chapter and is included in the certification application will be deemed certified for use under the CAIR SO2 Trading Program.

( A) Approval notice. If the certification application is complete and shows that each monitoring system meets the 7/ 29/ 05 Draft  Do Not Quote or Cite 322 applicable performance requirements of part 75 of this chapter,

then the Administrator will issue a written notice of approval of the certification application within 120 days of receipt.

( B) Incomplete application notice. If the certification application is not complete, then the Administrator will issue a written notice of incompleteness that sets a reasonable date by which the CAIR designated representative must submit the additional information required to complete the certification application. If the CAIR designated representative does not comply with the notice of incompleteness by the specified date, then the Administrator may issue a notice of disapproval under paragraph ( d)( 3)( iv)( C) of this section. The 120 day review period shall not begin before receipt of a complete certification application.

( C) Disapproval notice. If the certification application shows that any monitoring system does not meet the performance requirements of part 75 of this chapter or if the certification application is incomplete and the requirement for disapproval under paragraph ( d)( 3)( iv)( B) of this section is met, then the Administrator will issue a written notice of disapproval of the certification application. Upon issuance of such notice of disapproval, the provisional certification is invalidated by the Administrator and the data measured and recorded by each uncertified monitoring system shall not be considered valid quality assured data beginning with the date and hour of 7/ 29/ 05 Draft  Do Not Quote or Cite 323 provisional certification ( as defined under § 75.20( a)( 3) of this chapter). The owner or operator shall follow the procedures for loss of certification in paragraph ( d)( 3)( v) of this section for each monitoring system that is disapproved for initial certification.

( D) Audit decertification. The Administrator may issue a notice of disapproval of the certification status of a monitor in accordance with § 97.272( b).

( v) Procedures for loss of certification. If the Administrator issues a notice of disapproval of a certification application under paragraph ( d)( 3)( iv)( C) of this section or a notice of disapproval of certification status under paragraph ( d)( 3)( iv)( D) of this section, then:

( A) The owner or operator shall substitute the following values, for each disapproved monitoring system, for each hour of unit operation during the period of invalid data specified under § 75.20( a)( 4)( iii), § 75.20( g)( 7), or § 75.21( e) of this chapter and continuing until the applicable date and hour specified under § 75.20( a)( 5)( i) or ( g)( 7) of this chapter:

( 1) For a disapproved SO2 pollutant concentration monitor and disapproved flow monitor, respectively, the maximum potential concentration of SO2 and the maximum potential flow rate, as defined in sections <IP_ADDRESS> and <IP_ADDRESS> of appendix A to part 75 of this chapter. 7/ 29/ 05 Draft  Do Not Quote or Cite 324 ( 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 CAIR designated representative shall submit a notification of certification retest dates and a new certification application in accordance with paragraphs ( d)( 3)( i) and ( ii) of this section.

( C) The owner or operator shall repeat all certification tests or other requirements that were failed by the monitoring system, as indicated in the Administrator's notice of disapproval,

no later than 30 unit operating days after the date of issuance of the notice of disapproval.

( e) Initial certification and recertification procedures for units using the low mass emission excepted methodology under § 75.19 of this chapter. The owner or operator of a unit qualified to use the low mass emissions ( LME) excepted methodology under § 75.19 of this chapter shall meet the applicable certification and recertification requirements in § § 75.19( a)( 2) and 75.20( h) of 7/ 29/ 05 Draft  Do Not Quote or Cite 325 this chapter. If the owner or operator of such a unit elects to certify a fuel flowmeter system for heat input determination, the owner or operator shall also meet the certification and recertification requirements in § 75.20( g) of this chapter.

( f) Certification/ recertification procedures for alternative monitoring systems. The CAIR designated representative of each unit for which the owner or operator intends to use an alternative monitoring system approved by the Administrator under subpart E of part 75 of this chapter shall comply with the applicable notification and application procedures of § 75.20( f) of this chapter.

§ 97.272 Out of control periods.

( a) Whenever any monitoring system fails to meet the qualityassurance 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 of or appendix D to part 75 of this chapter.

( b) Audit decertification. Whenever both an audit of a monitoring system and a review of the initial certification or recertification application reveal that any monitoring system should not have been certified or recertified because it did not meet a particular performance specification or other requirement under § 97.271 or the applicable provisions of part 75 of this chapter, both at the time of the initial certification or 7/ 29/ 05 Draft  Do Not Quote or Cite 326 recertification application submission and at the time of the audit, the Administrator will issue a notice of disapproval of the certification status of such monitoring system. For the purposes of this paragraph, an audit shall be either a field audit or an audit of any information submitted to the permitting authority or the Administrator. By issuing the notice of disapproval, the Administrator revokes prospectively the certification status of the monitoring system. The data measured and recorded by the monitoring system shall not be considered valid quality assured data from the date of issuance of the notification of the revoked certification status until the date and time that the owner or operator completes subsequently approved initial certification or recertification tests for the monitoring system. The owner or operator shall follow the applicable initial certification or recertification procedures in § 97.271 for each disapproved monitoring system.

§ 97.273 Notifications.

The CAIR designated representative for a CAIR SO2 unit shall submit written notice to the Administrator in accordance with § 75.61 of this chapter.

§ 97.274 Recordkeeping and reporting.

( a) General provisions. The CAIR designated representative shall comply with all recordkeeping and reporting requirements in this section, the applicable recordkeeping and reporting 7/ 29/ 05 Draft  Do Not Quote or Cite 327 requirements in subparts F and G of part 75 of this chapter, and the requirements of § 97.210( e)( 1).

( b) Monitoring Plans. The owner or operator of a CAIR SO2 unit shall comply with requirements of § 75.62 of this chapter .

( c) Certification Applications. The CAIR designated representative shall submit an application to the Administrator within 45 days after completing all initial certification or recertification tests required under § 97.271, including the information required under § 75.63 of this chapter.

( d) Quarterly reports. The CAIR designated representative shall submit quarterly reports, as follows:

( 1) The CAIR designated representative shall report the SO2 mass emissions data and heat input data for the CAIR SO2 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, 2008, the calendar quarter covering January 1, 2009 through March 31, 2009;

( ii) For a unit that commences commercial operation on or after July 1, 2008, the calendar quarter corresponding to the earlier of the date of provisional certification or the applicable deadline for initial certification under § 97.270( b), unless that quarter is the third or fourth quarter of 2008, in which case reporting shall commence in the quarter covering January 1, 2009 7/ 29/ 05 Draft  Do Not Quote or Cite 328 through March 31, 2009;

( iii) Notwithstanding paragraphs ( d)( 1)( i) and ( ii) of this section, for a unit for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under subpart III of this part, the calendar quarter corresponding to the date specified in § 97.284( b); and ( iv) Notwithstanding paragraphs ( d)( 1)( i) and ( ii) of this section, for a CAIR NOX opt in unit under subpart III of this part,

the calendar quarter corresponding to the date on which the CAIR NOX opt in unit enters the CAIR SO2 Trading Program as provided in § 97.284( g).

( 2) The CAIR designated representative shall submit each quarterly report to the Administrator within 30 days following the end of the calendar quarter covered by the report. Quarterly reports shall be submitted in the manner specified in § 75.64 of this chapter.

( 3) For CAIR SO2 units that are also subject to an Acid Rain emissions limitation or the CAIR NOX Annual Trading Program , CAIR NOX Ozone Season Trading Program, or Hg Budget Trading Program,

quarterly reports shall include the applicable data and information required by subparts F through I of part 75 of this chapter as applicable, in addition to the SO2 mass emission data,

heat input data, and other information required by this subpart.

( e) Compliance certification. The CAIR designated 7/ 29/ 05 Draft  Do Not Quote or Cite 329 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 § 75.34( a)( 1) of this chapter, the add on emission controls were operating within the range of parameters listed in the quality assurance/ quality control program under appendix B to part 75 of this chapter and the substitute data values do not systematically underestimate SO2 emissions.

§ 97.275 Petitions.

The CAIR designated representative of a CAIR SO2 unit may submit a petition under § 75.66 of this chapter to the Administrator requesting approval to apply an alternative to any requirement of this subpart. Application of an alternative to any requirement of this subpart is in accordance with this subpart only to the extent that the petition is approved in writing by the 7/ 29/ 05 Draft  Do Not Quote or Cite 330 Administrator, in consultation with the permitting authority.

§ 97.276 Additional requirements to provide heat input data.

The owner or operator of a CAIR SO2 unit that monitors and reports SO2 mass emissions using a SO2 concentration system and a flow system shall also monitor and report heat input rate at the unit level using the procedures set forth in part 75 of this chapter.

Subpart III  CAIR SO2 Opt in Units § 97.280 Applicability.

A CAIR SO2 opt in unit must be a unit that:

( a) Is located in a State that submits, and for which the Administrator approves, a State implementation plan revision in accordance with § 51.124( r)( 1), ( 2), or ( 3) of this chapter establishing procedures concerning CAIR opt in units;

( b) Is not a CAIR SO2 unit under § 97.204 and is not covered by a retired unit exemption under § 97.205 that is in effect;

( c) Is not covered by a retired unit exemption under § 72.8 of this chapter that is in effect and is not an opt in source under part 74 of this chapter;

( d) Has or is required or qualified to have a title V operating permit or other federally enforceable permit; and ( e) Vents all of its emissions to a stack and can meet the monitoring, recordkeeping, and reporting requirements of subpart 7/ 29/ 05 Draft  Do Not Quote or Cite 331 HH of this part.

§ 97.281 General.

( a) Except as otherwise provided in § § 97.201 through 97.204,

§ § 97.206 through 97.208, and subparts BBB and CCC and subparts FFF through HHH of this part, a CAIR SO2 opt in unit shall be treated as a CAIR SO2 unit for purposes of applying such sections and subparts of this part.

( b) Solely for purposes of applying, as provided in this subpart, the requirements of subpart HHH of this part to a unit for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under this subpart, such unit shall be treated as a CAIR SO2 unit before issuance of a CAIR opt in permit for such unit.

§ 97.282 CAIR designated representative.

Any CAIR SO2 opt in unit, and any unit for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR optin permit is not yet issued or denied under this subpart, located at the same source as one or more CAIR SO2 units shall have the same CAIR designated representative and alternate CAIR designated representative as such CAIR SO2 units.

§ 97.283 Applying for CAIR opt in permit.

( a) Applying for initial CAIR opt in permit. The CAIR designated representative of a unit meeting the requirements for a CAIR NOX opt in unit in § 97.280 may apply for an initial CAIR opt 7/ 29/ 05 Draft  Do Not Quote or Cite 332 in permit at any time, except as provided under § 97.286( f) and ( g), and, in order to apply, must submit the following:

( 1) A complete CAIR permit application under § 97.222;

( 2) A certification, in a format specified by the permitting authority, that the unit:

( i) Is not a CAIR SO2 unit under § 97.204 and is not covered by a retired unit exemption under § 97.205 that is in effect;

( ii) Is not covered by a retired unit exemption under § 72.8 of this chapter that is in effect;

( iii) Is not, and so long as the unit is a CAIR SO2 opt in unit, will not become, an opt in source under part 74 of this chapter;

( iv) Vents all of its emissions to a stack, and ( v) Has documented heat input for more than 876 hours during the 6 months immediately preceding submission of the CAIR permit application under § 97.222;

( 3) A monitoring plan in accordance with subpart HHH of this part;

( 4) A complete certificate of representation under § 97.213 consistent with § 97.282, if no CAIR designated representative has been previously designated for the source that includes the unit;

and ( 5) A statement, in a format specified by the permitting authority, whether the CAIR designated representative requests 7/ 29/ 05 Draft  Do Not Quote or Cite 333 that the unit be allocated CAIR NOX allowances under § 97.280( b) or § 97.288( c) ( subject to the conditions in § § 97.284( h) and 97.286( g)), to the extent such allocation is provided in a State implementation plan revision submitted in accordance with § 51.124( r)( 1), ( 2), or ( 3) of this chapter and approved by the Administrator.

( b) Duty to reapply. ( 1) The CAIR designated representative of a CAIR SO2 opt in unit shall submit a complete CAIR permit application under § 97.222 to renew the CAIR opt in unit permit in accordance with the permitting authority's regulations for title V operating permits, or the permitting authority's regulations for other federally enforceable permits if applicable, addressing permit renewal.

( 2) Unless the permitting authority issues a notification of acceptance of withdrawal of the CAIR SO2 opt in unit from the CAIR SO2 Annual Trading Program in accordance with § 97.286 or the unit becomes a CAIR SO2 unit under § 97.204, the CAIR SO2 opt in unit shall remain subject to the requirements for a CAIR SO2 opt in unit, even if the CAIR designated representative for the CAIR SO2 opt in unit fails to submit a CAIR permit application that is required for renewal of the CAIR opt in permit under paragraph ( b)( 1) of this section.

§ 97.284 Opt in process.

The permitting authority will issue or deny a CAIR opt in permit 7/ 29/ 05 Draft  Do Not Quote or Cite 334 for a unit for which an initial application for a CAIR opt in permit under § 97.183 is submitted in accordance with the following, to the extent provided in a State implementation plan revision submitted in accordance with § 51.124( r)( 1), ( 2) or ( 3)

of this chapter and approved by the Administrator:

( a) Interim review of monitoring plan. The permitting authority and the Administrator will determine, on an interim basis, the sufficiency of the monitoring plan accompanying the initial application for a CAIR opt in permit under § 97.283. A monitoring plan is sufficient, for purposes of interim review, if the plan appears to contain information demonstrating that the NOX emissions rate and heat input of the unit and all other applicable parameters are monitored and reported in accordance with subpart HH of this part. A determination of sufficiency shall not be construed as acceptance or approval of the monitoring plan.

( b) Monitoring and reporting. ( 1)( i) If the permitting authority and the Administrator determines that the monitoring plan is sufficient under paragraph ( a) of this section, the owner or operator shall monitor and report the SO2 emissions rate and the heat input of the unit and all other applicable parameters, in accordance with subpart HHH of this part, starting on the date of certification of the appropriate monitoring systems under subpart HH of this part and continuing until a CAIR opt in permit is denied under § 97.284( f) or, if a CAIR opt in permit is issued, 7/ 29/ 05 Draft  Do Not Quote or Cite 335 the date and time when the unit is withdrawn from the CAIR SO2 Trading Program in accordance with § 97.286.

( ii) The monitoring and reporting under paragraph ( b)( 1)( i)

of this section shall include the entire control period immediately before the date on which the unit enters the CAIR SO2 Trading Program under § 97.284( g), during which period monitoring system availability must not be less than 90 percent under subpart HHH of this part and the unit must be in full compliance with any applicable State or Federal emissions or emissions related requirements.

( 2) To the extent the SO2 emissions rate and the heat input of the unit are monitored and reported in accordance with subpart HHH of this part for one or more control periods, in addition to the control period under paragraph ( b)( 1)( ii) of this section, during which control periods monitoring system availability is not less than 90 percent under subpart HHH of this part and the unit is in full compliance with any applicable State or Federal emissions or emissions related requirements and which control periods begin not more than 3 years before the unit enters the CAIR SO2 Trading Program under § 97.284( g), such information shall be used as provided in paragraphs ( c) and ( d) of this section.

( c) Baseline heat input. The unit's baseline heat rate shall equal:

( 1) If the unit's SO2 emissions rate and heat input are 7/ 29/ 05 Draft  Do Not Quote or Cite 336 monitored and reported for only one control period, in accordance with paragraph ( b)( 1) of this section, the unit's total heat input ( in mmBtu) for the control period; or ( 2) If the unit's SO2 emissions rate and heat input are monitored and reported for more than one control period, in accordance with paragraphs ( b)( 1) and ( 2) of this section, the average of the amounts of the unit's total heat input ( in mmBtu)

for the control periods under paragraphs ( b)( 1)( ii) and ( b)( 2) of this section.

( d) Baseline SO2 emission rate. The unit's baseline SO2 emission rate shall equal:

( 1) If the unit's SO2 emissions rate and heat input are monitored and reported for only one control period, in accordance with paragraph ( b)( 1) of this section, the unit's NOX emissions rate ( in lb/ mmBtu) for the control period;

( 2) If the unit's SO2 emissions rate and heat input are monitored and reported for more than one control period, in accordance with paragraphs ( b)( 1) and ( 2) of this section, and the unit does not have add on SO2 emission controls during any such control periods, the average of the amounts of the unit's SO2 emissions rate ( in lb/ mmBtu) for the control periods under paragraphs ( b)( 1)( ii) and ( b)( 2) of this section; or ( 3) If the unit's SO2 emissions rate and heat input are monitored and reported for more than one control period, in 7/ 29/ 05 Draft  Do Not Quote or Cite 337 accordance with paragraphs ( b)( 1) and ( 2) of this section, and the unit has add on SO2 emission controls during any such control periods, the average of the amounts of the unit's SO2 emissions rate ( in lb/ mmBtu) for such control periods during which the unit has add on SO2 emission controls.

( e) Issuance of CAIR opt in permit. After calculating the baseline heat input and the baseline SO2 emissions rate for the unit under paragraphs ( c) and ( d) of this section and if the permitting authority determines that the CAIR designated representative shows that the unit meets the requirements for a CAIR SO2 opt in unit in § 97.280 and meets the elements certified in § 97.283( a)( 2), the permitting authority will issue a CAIR optin permit. The permitting authority will provide a copy of the CAIR opt in permit to the Administrator, who will then establish a compliance account for the source that includes the CAIR SO2 opt in unit unless the source already has a compliance account.

( f) Issuance of denial of CAIR opt in permit. Notwithstanding paragraphs ( a) through ( e) of this section, if at any time before issuance of a CAIR opt in permit for the unit, the permitting authority determines that the CAIR designated representative fails to show that the unit meets the requirements for a CAIR SO2 opt in unit in § 97.280 or meets the elements certified in § 97.283( a)( 2), the permitting authority will issue a denial of a CAIR opt in permit for the unit. 7/ 29/ 05 Draft  Do Not Quote or Cite 338 ( g) Date of entry into CAIR SO2 Annual Trading Program. A unit for which an initial CAIR opt in permit is issued by the permitting authority shall become a CAIR SO2 opt in unit, and a CAIR SO2 unit, as of the later of January 1, 2009 or January 1 of the first control period during which such CAIR opt in permit is issued.

( h) Repowered CAIR SO2 opt in unit. ( 1) If CAIR designated representative requests, and the permitting authority issues a CAIR opt in permit providing for, allocation to a CAIR SO2 opt in unit of CAIR SO2 allowances under § 97.288( c) and such unit is repowered after its date of entry into the CAIR SO2 Trading Program under paragraph ( g) of this section, the repowered unit shall be treated as a CAIR SO2 opt in unit replacing the original CAIR SO2 opt in unit, as of the date of start up of the repowered unit's combustion chamber.

( 2) Notwithstanding paragraphs ( c) and ( d) of this section,

as of the date of start up under paragraph ( h)( 1) of this section,

the repowered unit shall be deemed to have the same date of commencement of operation, date of commencement of commercial operation, baseline heat input, and baseline NOX emission rate as the original CAIR SO2 opt in unit, and the original CAIR SO2 opt in unit shall no longer be treated as a CAIR SO2 opt in unit or a CAIR SO2 unit.

§ 97.285 CAIR opt in permit contents. 7/ 29/ 05 Draft  Do Not Quote or Cite 339 ( a) Each CAIR opt in permit will contain:

( 1) All elements required for a complete CAIR permit application under § 97.222;

( 2) The certification in § 97.283( a)( 2);

( 3) The unit's baseline heat input under § 97.284( c);

( 4) The unit's baseline SO2 emission rate under § 97.284( d);

( 5) A statement whether the unit is to be allocated CAIR SO2 allowances under § 97.280( b) or § 97.288( c) ( subject to the conditions in § § 97.284( h) and 97.286( g));

( 6) A statement that the unit may withdraw from the CAIR SO2 Trading Program only in accordance with § 97.286; and ( 7) A statement that the unit is subject to, and the owners and operators of the unit must comply with, the requirements of § 97.287.

( b) Each CAIR opt in permit is deemed to incorporate automatically the definitions of terms under § 97.202 and, upon recordation by the Administrator under subpart FFF, GGG, or III of this part or this subpart, every allocation, transfer, or deduction of CAIR SO2 allowances to or from the compliance account of the source that includes a CAIR SO2 opt in unit covered by the CAIR opt in permit.

( c) The CAIR opt in permit shall be included, in a format prescribed by the permitting authority, in the CAIR permit for the source where the CAIR SO2 opt in unit is located. 7/ 29/ 05 Draft  Do Not Quote or Cite 340 § 97.286 Withdrawal from CAIR SO2 Trading Program.

Except as provided under paragraph ( g) of this section, a CAIR SO2 opt in unit may withdraw from the CAIR SO2 Trading Program, but only if the permitting authority issues a notification to the CAIR designated representative of the CAIR SO2 opt in unit of the acceptance of the withdrawal of the CAIR SO2 opt in unit in accordance with paragraph ( d) of this section.

( a) Requesting withdrawal. In order to withdraw a CAIR SO2 opt in unit from the CAIR SO2 Trading Program, the CAIR designated representative of the CAIR SO2 opt in unit shall submit to the permitting authority a request to withdraw effective as of midnight of December 31 of a specified calendar year, which date must be at least 4 years after December 31 of the year of entry into the CAIR SO2 Trading Program under § 97.284( g). The request must be submitted no later than 90 days before the requested effective date of withdrawal.

( b) Conditions for withdrawal. Before a CAIR SO2 opt in unit covered by a request under paragraph ( a) of this section may withdraw from the CAIR SO2 Trading Program and the CAIR opt in permit may be terminated under paragraph ( e) of this section, the following conditions must be met:

( 1) For the control period ending on the date on which the withdrawal is to be effective, the source that includes the CAIR SO2 opt in unit must meet the requirement to hold CAIR SO2 7/ 29/ 05 Draft  Do Not Quote or Cite 341 allowances under § 97.206( c) and cannot have any excess emissions.

( 2) After the requirement for withdrawal under paragraph ( b)( 1) of this section is met, the Administrator will deduct from the compliance account of the source that includes the CAIR SO2 opt in unit CAIR SO2 allowances equal in amount to and allocated for the same or a prior control period as any CAIR SO2 allowances allocated to the CAIR SO2 opt in unit under § 97.288 for any control period for which the withdrawal is to be effective. If there are no remaining CAIR SO2 units at the source, the Administrator will close the compliance account, and the owners and operators of the CAIR SO2 opt in unit may submit a CAIR SO2 allowance transfer for any remaining CAIR SO2 allowances to another CAIR SO2 Allowance Tracking System in accordance with subpart GGG of this part.

( c) Notification. ( 1) After the requirements for withdrawal under paragraphs ( a) and ( b) of this section are met ( including deduction of the full amount of CAIR SO2 allowances required), the permitting authority will issue a notification to the CAIR designated representative of the CAIR SO2 opt in unit of the acceptance of the withdrawal of the CAIR SO2 opt in unit as of midnight on December 31 of the calendar year for which the withdrawal was requested.

( 2) If the requirements for withdrawal under paragraphs ( a)

and ( b) of this section are not met, the permitting authority will 7/ 29/ 05 Draft  Do Not Quote or Cite 342 issue a notification to the CAIR designated representative of the CAIR SO2 opt in unit that the CAIR SO2 opt in unit's request to withdraw is denied. Such CAIR SO2 opt in unit shall continue to be a CAIR SO2 opt in unit.

( d) Permit amendment. After the permitting authority issues a notification under paragraph ( c)( 1) of this section that the requirements for withdrawal have been met, the permitting authority will revise the CAIR permit covering the CAIR SO2 opt in unit to terminate the CAIR opt in permit for such unit as of the effective date specified under paragraph ( c)( 1) of this section.

The unit shall continue to be a CAIR SO2 opt in unit until the effective date of the termination and shall comply with all requirements under the CAIR SO2 Trading Program concerning any control periods for which the unit is a CAIR SO2 opt in unit, even if such requirements arise or must be complied with after the withdrawal takes effect.

( e) Reapplication upon failure to meet conditions of withdrawal. If the permitting authority denies the CAIR SO2 opt in unit's request to withdraw, the CAIR designated representative may submit another request to withdraw in accordance with paragraphs ( a) and ( b) of this section.

( f) Ability to reapply to the CAIR SO2 Annual Trading Program.

Once a CAIR SO2 opt in unit withdraws from the CAIR SO2 Trading Program and its CAIR opt in permit is terminated under this 7/ 29/ 05 Draft  Do Not Quote or Cite 343 section, the CAIR designated representative may not submit another application for a CAIR opt in permit under § 97.283 for such CAIR SO2 opt in unit before the date that is 4 years after the date on which the withdrawal became effective. Such new application for a CAIR opt in permit will be treated as an initial application for a CAIR opt in permit under § 97.284.

( g) Inability to withdraw. Notwithstanding paragraphs ( a)

through ( f) of this section, a CAIR SO2 opt in unit shall not be eligible to withdraw from the CAIR SO2 Trading Program if the CAIR designated representative of the CAIR SO2 opt in unit requests, and the permitting authority issues a CAIR SO2 opt in permit providing for, allocation to the CAIR SO2 opt in unit of CAIR SO2 allowances under § 97.288( c).

§ 97.187 Change in regulatory status.

( a) Notification. If a CAIR SO2 opt in unit becomes a CAIR SO2 unit under § 97.204, then the CAIR designated representative shall notify in writing the permitting authority and the Administrator of such change in the CAIR SO2 opt in unit's regulatory status, within 30 days of such change.

( b) Permitting authority's and Administrator's actions.

( 1) If a CAIR SO2 opt in unit becomes a CAIR SO2 unit under § 97.204, the permitting authority will revise the CAIR SO2 opt in unit's CAIR opt in permit to meet the requirements of a CAIR permit under § 97.223 as of the date on which the CAIR SO2 opt in 7/ 29/ 05 Draft  Do Not Quote or Cite 344 unit becomes a CAIR SO2 unit under § 97.204.

( 2)( i) The Administrator will deduct from the compliance account of the source that includes the CAIR SO2 opt in unit that becomes a CAIR SO2 unit under § 97.204, CAIR SO2 allowances equal in amount to and allocated for the same or a prior control period as:

( A) Any CAIR SO2 allowances allocated to the CAIR SO2 opt in unit under § 97.288 for any control period after the date on which the CAIR SO2 opt in unit becomes a CAIR SO2 unit under § 97.204;

and ( B) If the date on which the CAIR SO2 opt in unit becomes a CAIR SO2 unit under § 97.204 is not December 31, the CAIR SO2 allowances allocated to the CAIR SO2 opt in unit under § 97.288 for the control period that includes the date on which the CAIR SO2 opt in unit becomes a CAIR SO2 unit under § 97.204, multiplied by the ratio of the number of days, in the control period, starting with the date on which the CAIR SO2 opt in unit becomes a CAIR SO2 unit under § 97.204 divided by the total number of days in the control period and rounded to the nearest whole allowance as appropriate.

( ii) The CAIR designated representative shall ensure that the compliance account of the source that includes the CAIR SO2 unit that becomes a CAIR SO2 unit under § 97.204 contains the CAIR SO2 allowances necessary for completion of the deduction under 7/ 29/ 05 Draft  Do Not Quote or Cite 345 paragraph ( b)( 2)( i) of this section.

§ 97.288 CAIR SO2 allowance allocations to CAIR SO2 opt in units.

( a) Timing requirements. ( 1) When the CAIR opt in permit is issued under § 97.284( e), the permitting authority will allocate CAIR SO2 allowances to the CAIR SO2 opt in unit, and submit to the Administrator the allocation for the control period in which a CAIR SO2 opt in unit enters the CAIR SO2 Trading Program under § 97.284( g), in accordance with paragraph ( b) or ( c) of this section.

( 2) By no later than October 31 of the control period in which a CAIR opt in unit enters the CAIR SO2 Trading Program under § 97.284( g) and October 31 of each year thereafter, the permitting authority will allocate CAIR SO2 allowances to the CAIR SO2 opt in unit, and submit to the Administrator the allocation for the control period that includes such submission deadline and in which the unit is a CAIR SO2 opt in unit, in accordance with paragraph ( b) or ( c) of this section.

( b) Calculation of allocation. For each control period for which a CAIR SO2 opt in unit is to be allocated CAIR SO2 allowances, the permitting authority will allocate in accordance with the following procedures, if provided in a State implementation plan revision submitted in accordance with § 51.124( r)( 1), ( 2), or ( 3) of this chapter and approved by the Administrator: 7/ 29/ 05 Draft  Do Not Quote or Cite 346 ( 1) The heat input ( in mmBtu) used for calculating the CAIR SO2 allowance allocation will be the lesser of:

( i) The CAIR SO2 opt in unit's baseline heat input determined under § 97.284( c); or ( ii) The CAIR SO2 opt in unit's heat input, as determined in accordance with subpart HHH of this part, for the immediately prior control period, except when the allocation is being calculated for the control period in which the CAIR SO2 opt in unit enters the CAIR SO2 Trading Program under § 97.284( g).

( 2) The SO2 emission rate ( in lb/ mmBtu) used for calculating CAIR SO2 allowance allocations will be the lesser of:

( i) The CAIR SO2 opt in unit's baseline SO2 emissions rate ( in lb/ mmBtu) determined under § 97.284( d) and multiplied by 70 percent; or ( ii) The most stringent State or Federal SO2 emissions limitation applicable to the CAIR SO2 opt in unit at any time during the control period for which CAIR SO2 allowances are to be allocated.

( 3) The permitting authority will allocate CAIR SO2 allowances to the CAIR SO2 opt in unit in an amount equaling the heat input under paragraph ( b)( 1) of this section, multiplied by the SO2 emission rate under paragraph ( b)( 2) of this section, divided by 2,000 lb/ ton, and rounded to the nearest whole allowance as appropriate. 7/ 29/ 05 Draft  Do Not Quote or Cite 347 ( c) Notwithstanding paragraph ( b) of this section and if the CAIR designated representative requests, and the permitting authority issues a CAIR opt in permit providing for, allocation to a CAIR SO2 opt in unit of CAIR SO2 allowances under this paragraph ( subject to the conditions in § § 97.284( h) and 97.286( g)), the permitting authority will allocate to the CAIR SO2 opt in unit as follows, if provided in a State implementation plan revision submitted in accordance with § 51.124( r)( 1), ( 2), or ( 3) of this chapter and approved by the Administrator:

( 1) For each control period in 2010 through 2014 for which the CAIR SO2 opt in unit is to be allocated CAIR SO2 allowances,

( i) The heat input ( in mmBtu) used for calculating CAIR SO2 allowance allocations will be determined as described in paragraph ( b)( 1) of this section.

( ii) The SO2 emission rate ( in lb/ mmBtu) used for calculating CAIR SO2 allowance allocations will be the lesser of:

( A) The CAIR SO2 opt in unit's baseline SO2 emissions rate ( in lb/ mmBtu) determined under § 97.284( d); or ( B) The most stringent State or Federal SO2 emissions limitation applicable to the CAIR SO2 opt in unit at any time during the control period in which the CAIR SO2 opt in unit enters the CAIR SO2 Trading Program under § 97.284( g).

( iii) The permitting authority will allocate CAIR SO2 allowances to the CAIR SO2 opt in unit in an amount equaling the 7/ 29/ 05 Draft  Do Not Quote or Cite 348 heat input under paragraph ( c)( 1)( i) of this section, multiplied by the SO2 emission rate under paragraph ( c)( 1)( ii) of this section, divided by 2,000 lb/ ton, and rounded to the nearest whole allowance as appropriate.

( 2) For each control period in 2015 and thereafter for which the CAIR SO2 opt in unit is to be allocated CAIR SO2 allowances,

( i) The heat input ( in mmBtu) used for calculating the CAIR SO2 allowance allocations will be determined as described in paragraph ( b)( 1) of this section.

( ii) The SO2 emission rate ( in lb/ mmBtu) used for calculating the CAIR NOX allowance allocation will be the lesser of:

( A) The CAIR SO2 opt in unit's baseline SO2 emissions rate ( in lb/ mmBtu) determined under § 97.284( d) multiplied by 10 percent;

or ( B) The most stringent State or Federal SO2 emissions limitation applicable to the CAIR SO2 opt in unit at any time during the control period for which CAIR SO2 allowances are to be allocated.

( iii) The permitting authority will allocate CAIR SO2 allowances to the CAIR SO2 opt in unit in an amount equaling the heat input under paragraph ( c)( 2)( i) of this section, multiplied by the SO2 emission rate under paragraph ( c)( 2)( ii) of this section, divided by 2,000 lb/ ton, and rounded to the nearest whole allowance as appropriate. 7/ 29/ 05 Draft  Do Not Quote or Cite 349 ( d) Recordation. If provided in a State implementation plan revision submitted in accordance with § 51.124( r)( 1), ( 2), or ( 3)

of this chapter and approved by the Administrator:

( 1) The Administrator will record, in the compliance account of the source that includes the CAIR SO2 opt in unit, the CAIR SO2 allowances allocated by the permitting authority to the CAIR SO2 opt in unit under paragraph ( a)( 1) of this section.

( 2) By December 1 of the control period in which a CAIR SO2 opt in unit enters the CAIR SO2 Trading Program under § 97.284( g)

and December 1 of each year thereafter, the Administrator will record, in the compliance account of the source that includes the CAIR SO2 opt in unit, the CAIR SO2 allowances allocated by the permitting authority to the CAIR SO2 opt in unit under paragraph ( a)( 2) of this section.

APPENDIX A TO SUBPART III OF PART 97    STATES WITH APPROVED STATE IMPLEMENTATION PLAN REVISIONS CONCERNING CAIR SO2 OPT IN UNITS 1. The following States have State Implementation Plan revisions under § 51.124( r) of this chapter approved by the Administrator and establishing procedures providing for CAIR SO2 opt in units under subpart III of this part and allocation of CAIR SO2 allowances to such units under § 97.288( b):

2. The following States have State Implementation Plan revisions under § 51.124( r) of this chapter approved by the Administrator and establishing procedures providing for CAIR SO2 opt in units 7/ 29/ 05 Draft  Do Not Quote or Cite 350 under subpart III of this part and allocation of CAIR SO2 allowances to such units under § 97.288( c):

5. Part 97 is amended by adding subparts AAAA through CCCC,

adding and reserving subpart DDDD and adding subparts EEEE through IIII to read as follows:

Subpart AAAA   CAIR NOX Ozone Season Trading Program General Provisions 97.301 Purpose.

97.302 Definitions.

97.303 Measurements, abbreviations, and acronyms.

97.304 Applicability.

97.305 Retired unit exemption.

97.306 Standard requirements.

97.307 Computation of time.

97.308 Appeal Procedures.

APPENDIX A TO SUBPART AAAA OF PART 97    STATES WITH APPROVED STATE IMPLEMENTATION PLAN REVISIONS CONCERNING APPLICABILITY Subpart BBBB   CAIR Designated Representative for CAIR NOX Ozone Season Sources 97.310 Authorization and responsibilities of CAIR designated representative.

97.311 Alternate CAIR designated representative.

97.312 Changing CAIR designated representative and alternate CAIR designated representative; changes in owners and operators. 7/ 29/ 05 Draft  Do Not Quote or Cite 351 97.313 Certificate of representation.

97.314 Objections concerning CAIR designated representative.

Subpart CCCC   Permits 97.320 General CAIR NOX Ozone Season Trading Program permit requirements.

97.321 Submission of CAIR permit applications.

97.322 Information requirements for CAIR permit applications.

97.323 CAIR permit contents and term.

97.324 CAIR permit revisions.

Subpart DDDD   [ Reserved]

Subpart EEEE   CAIR NOX Ozone Season Allowance Allocations 97.340 State trading budgets.

97.341 Timing requirements for CAIR NOX Ozone Season allowance allocations.

97.342 CAIR NOX Ozone Season allowance allocations.

97.343 Alternative of allocation of CAIR NOX Ozone Season allowances by permitting authority.

APPENDIX A TO SUBPART EEEE OF PART 97    STATES WITH APPROVED STATE IMPLEMENTATION PLAN REVISIONS CONCERNING ALLOCATIONS Subpart FFFF   CAIR NOX Ozone Season Allowance Tracking System 97.350 [ Reserved]

97.351 Establishment of accounts.

97.352 Responsibilities of CAIR authorized account representative. 7/ 29/ 05 Draft  Do Not Quote or Cite 352 97.353 Recordation of CAIR NOX Ozone Season allowance allocations.

97.354 Compliance with CAIR NOX emissions limitation.

97.355 Banking.

97.356 Account error.

97.357 Closing of general accounts.

Subpart GGGG   CAIR NOX Ozone Season Allowance Transfers 97.360 Submission of CAIR NOX Ozone Season allowance transfers.

97.361 EPA recordation.

97.362 Notification.

Subpart HHHH   Monitoring and Reporting 97.370 General requirements.

97.371 Initial certification and recertification procedures.

97.372 Out of control periods.

97.373 Notifications.

97.374 Recordkeeping and reporting.

97.375 Petitions.

97.376 Additional requirements to provide heat input data.

Subpart IIII   CAIR NOX Ozone Season Opt in Units 97.380 Applicability.

97.381 General.

97.382 CAIR designated representative.

97.383 Applying for CAIR opt in permit.

97.384 Opt in process.

97.385 CAIR opt in permit contents. 7/ 29/ 05 Draft  Do Not Quote or Cite 353 97.386 Withdrawal from CAIR NOX Ozone Season Trading Program.

97.387 Change in regulatory status.

97.388 CAIR NOX Ozone Season allowance allocations to CAIR NOX Ozone Season opt in units.

APPENDIX A TO SUBPART IIII OF PART 97    STATES WITH APPROVED STATE IMPLEMENTATION PLAN REVISIONS CONCERNING CAIR NOX OZONE SEASON OPT IN UNITS Subpart AAAA   CAIR NOX Ozone Season Trading Program General Provisions § 97.301 Purpose.

This subpart and subparts BBBB through HHHH set forth the general provisions and the designated representative, permitting,

allowance, monitoring, and opt in provisions for the  Federal Clean Air Interstate Rule ( CAIR) NOX Ozone Season Trading Program,

under section 110 of the Clean Air Act and § 52.35 of this chapter, as a means of mitigating interstate transport of ozone and nitrogen oxides.

§ 97.302 Definitions.

The terms used in this subpart and subparts BBBB through IIII shall have the meanings set forth in this section as follows:

Account number means the identification number given by the Administrator to each CAIR NOX Ozone Season Allowance Tracking System account.

Acid Rain emissions limitation means a limitation on emissions of 7/ 29/ 05 Draft  Do Not Quote or Cite 354 sulfur dioxide or nitrogen oxides under the Acid Rain Program.

Acid Rain Program means a multi state sulfur dioxide and nitrogen oxides air pollution control and emission reduction program established by the Administrator under title IV of the CAA and parts 72 through 78 of this chapter.

Administrator means the Administrator of the United States Environmental Protection Agency or the Administrator's duly authorized representative.

Allocate or allocation means, with regard to CAIR NOX Ozone Season allowances issued under subpart EEEE, the determination by the permitting authority or the Administrator of the amount of such CAIR NOX Ozone Season allowances to be initially credited to a CAIR NOX Ozone Season unit or a new unit set aside and, with regard to CAIR NOX Ozone Season allowances issued under § 97.388, the determination by the permitting authority of the amount of such CAIR NOX Ozone Season allowances to be initially credited to a CAIR NOX Ozone Season unit.

Allowance transfer deadline means, for a control period, midnight of November 30, if it is a business day, or, if November 30 is not a business day, midnight of the first business day thereafter immediately following the control period and is the deadline by which a CAIR NOX Ozone Season allowance transfer must be submitted for recordation in a CAIR NOX Ozone Season source's compliance account in order to be used to meet the source's CAIR NOX Ozone 7/ 29/ 05 Draft  Do Not Quote or Cite 355 Season emissions limitation for such control period in accordance with § 97.354.

Alternate CAIR designated representative means, for a CAIR NOX Ozone Season source and each CAIR NOX Ozone Season unit at the source, the natural person who is authorized by the owners and operators of the source and all such units at the source in accordance with subparts BBBB and IIII of this part, to act on behalf of the CAIR designated representative in matters pertaining to the CAIR NOX Ozone Season Trading Program. If the CAIR NOX Ozone Season source is also a CAIR NOX source, then this natural person shall be the same person as the alternate CAIR designated representative under the CAIR NOX Annual Trading Program. If the CAIR NOX Ozone Season source is also a CAIR SO2 source, then this natural person shall be the same person as the alternate CAIR designated representative under the CAIR SO2 Trading Program. If the CAIR NOX Ozone Season source is also subject to the Acid Rain Program, then this natural person shall be the same person as the alternate designated representative under the Acid Rain Program.

If the CAIR NOX Ozone Season source is also subject to the Hg Budget Trading Program, then this natural person shall be the same person as the alternate designated representative under the Hg Budget Trading Program.

Automated data acquisition and handling system or DAHS means that component of the continuous emission monitoring system, or other 7/ 29/ 05 Draft  Do Not Quote or Cite 356 emissions monitoring system approved for use under subpart HHHH of this part, designed to interpret and convert individual output signals from pollutant concentration monitors, flow monitors,

diluent gas monitors, and other component parts of the monitoring system to produce a continuous record of the measured parameters in the measurement units required by subpart HHHH of this part.

Boiler means an enclosed fossil or other fuel fired combustion device used to produce heat and to transfer heat to recirculating water, steam, or other medium.

Bottoming cycle cogeneration unit means a cogeneration unit in which the energy input to the unit is first used to produce useful thermal energy and at least some of the reject heat from the useful thermal energy application or process is then used for electricity production.

CAIR authorized account representative means, with regard to a general account, a responsible natural person who is authorized,

in accordance with subparts BBBB and IIII of this part, to transfer and otherwise dispose of CAIR NOX Ozone Season allowances held in the general account and, with regard to a compliance account, the CAIR designated representative of the source.

CAIR designated representative means, for a CAIR NOX Ozone Season source and each CAIR NOX Ozone Season unit at the source, the natural person who is authorized by the owners and operators of the source and all such units at the source, in accordance with 7/ 29/ 05 Draft  Do Not Quote or Cite 357 subparts BBBB and IIII of this part, to represent and legally bind each owner and operator in matters pertaining to the CAIR NOX Ozone Season Trading Program. If the CAIR NOX Ozone Season source is also a CAIR NOX source, then this natural person shall be the same person as the CAIR designated representative under the CAIR NOX Annual Trading Program. If the CAIR NOX Ozone Season source is also a CAIR SO2 source, then this natural person shall be the same person as the CAIR designated representative under the CAIR SO2 Trading Program. If the CAIR NOX Ozone Season source is also subject to the Acid Rain Program, then this natural person shall be the same person as the designated representative under the Acid Rain Program. If the CAIR NOX Ozone Season source is also subject to the Hg Budget Trading Program, then this natural person shall be the same person as the designated representative under the Hg Budget Trading Program.

CAIR NOX Annual Trading Program means a multi state nitrogen oxides air pollution control and emission reduction program approved and administered established by the Administrator in accordance with subparts AA through II of this part and § 52.35 of this chapter or administered by the Administrator under the provisions of a State implementation plan that are approved under § 51.123( o)( 1) or ( 2)

of this chapter, as a means of mitigating interstate transport of fine particulates and nitrogen oxides.

CAIR NOX Ozone Season allowance means a limited authorization 7/ 29/ 05 Draft  Do Not Quote or Cite 358 issued by the permitting authority or the Administrator under subpart EEEE of this part, § 97.388, or 51.123( aa)( 2)( iii)( A),( bb)( 2)( iii) or ( iv), or ( dd)( 3) or ( 4) of this chapter under provisions of a State implementation plan that are approved under § 51.123( aa)( 1) or ( 2) ( and ( bb)( 1)), ( bb)( 2),

or ( dd) of this chapter to emit one ton of nitrogen oxides during a control period of the specified calendar year for which the authorization is allocated or of any calendar year thereafter under the CAIR NOX Ozone Season Trading Program or a limited authorization issued by the permitting authority for a control period during 2003 through 2008 under the NOX Budget Trading Program in accordance with § 51.121( p) of this chapter to emit one ton of nitrogen oxides during a control period, provided that the provision in § 51.121( b)( 2)( i)( E) of this chapter shall not be used in applying this definition. An authorization to emit nitrogen oxides that is not issued under subpart EEEE of this part, § 97.388, or under provisions of a State implementation plan that are approved under § 51.123( aa)( 1) or ( 2) ( and ( bb)( 1)),

( bb)( 2), or ( dd) of this chapter or that meet the requirements of § 51.121( p) of this chapter shall not be a CAIR NOX Ozone Season allowance.

CAIR NOX Ozone Season allowance deduction or deduct CAIR NOX Ozone Season allowances means the permanent withdrawal of CAIR NOX Ozone Season allowances by the Administrator from a compliance account, 7/ 29/ 05 Draft  Do Not Quote or Cite 359 e. g., in order to account for a specified number of tons of total nitrogen oxides emissions from all CAIR NOX Ozone Season units at a CAIR NOX Ozone Season source for a control period, determined in accordance with subpart HHHH of this part, or to account for excess emissions.

CAIR NOX Ozone Season Allowance Tracking System means the system by which the Administrator records allocations, deductions, and transfers of CAIR NOX Ozone Season allowances under the CAIR NOX Ozone Season Trading Program. Such allowances will be allocated,

held, deducted, or transferred only as whole allowances.

CAIR NOX Ozone Season Allowance Tracking System account means an account in the CAIR NOX Ozone Season Allowance Tracking System established by the Administrator for purposes of recording the allocation, holding, transferring, or deducting of CAIR NOX Ozone Season allowances.

CAIR NOX Ozone Season allowances held or hold CAIR NOX Ozone Season allowances means the CAIR NOX Ozone Season allowances recorded by the Administrator, or submitted to the Administrator for recordation, in accordance with subparts FFFF, GGGG, and IIII of this part, in a CAIR NOX Ozone Season Allowance Tracking System account.

CAIR NOX Ozone Season emissions limitation means, for a CAIR NOX Ozone Season source, the tonnage equivalent of the CAIR NOX Ozone Season allowances available for deduction for the source under § 7/ 29/ 05 Draft  Do Not Quote or Cite 360 97.354( a) and ( b) for a control period.

CAIR NOX Ozone Season Trading Program means a multi state nitrogen oxides air pollution control and emission reduction program approved and administered established by the Administrator in accordance with subparts AAAA through IIII of this part and § 52.35 of this chapter or administered by the Administrator under the provisions of a State implementation plan that are approved under § 51.123( aa)( 1) or ( 2) ( and ( bb)( 1)), ( bb)( 2), or ( dd) of this chapter, as a means of mitigating interstate transport of ozone and nitrogen oxides.

CAIR NOX Ozone Season source means a source that includes one or more CAIR NOX Ozone Season units.

CAIR NOX Ozone Season unit means a unit that is subject to the CAIR NOX Ozone Season Trading Program under § 97.304 and, except for purposes of § 97.305 and subpart EEEE of this part, a CAIR NOX Ozone Season opt in unit under subpart IIII of this part.

CAIR NOX source means a source that includes one or more CAIR NOX units.

CAIR NOX unit means a unit that is subject to the CAIR NOX Annual Trading Program under § 97.104 and a CAIR NOX opt in unit under subpart II of this part.

CAIR permit means the legally binding and federally enforceable written document, or portion of such document, issued by the permitting authority under subpart CCCC of this part, including 7/ 29/ 05 Draft  Do Not Quote or Cite 361 any permit revisions, specifying the CAIR NOX Ozone Season Trading Program requirements applicable to a CAIR NOX Ozone Season source,

to each CAIR NOX Ozone Season unit at the source, and to the owners and operators and the CAIR designated representative of the source and each such unit.

CAIR SO2 source means a source that includes one or more CAIR SO2 units.

CAIR SO2 Trading Program means a multi state sulfur dioxide air pollution control and emission reduction program approved and administered established by the Administrator in accordance with subparts AAA through III of this part and § 52.36 of this chapter or administered by the Administrator under the provisions of a State implementation plan that are approved under § 51.124( o)( 1)

or ( 2) of this chapter, as a means of mitigating interstate transport of fine particulates and sulfur dioxide.

CAIR SO2 unit means a unit that is subject to the CAIR SO2 Trading Program under § 97.204 and a CAIR SO2 opt in unit under subpart III of this part.

Certifying official means:

( 1) For a corporation, a president, secretary, treasurer, or vice president or the corporation in charge of a principal business function or any other person who performs similar policy or decision making functions for the corporation;

( 2) For a partnership or sole proprietorship, a general partner 7/ 29/ 05 Draft  Do Not Quote or Cite 362 or the proprietor respectively; or ( 3) For a local government entity or State, Federal, or other public agency, a principal executive officer or ranking elected official.

Clean Air Act or CAA means the Clean Air Act, 42 U. S. C. 7401, et seq.

Coal means any solid fuel classified as anthracite, bituminous,

subbituminous, or lignite.

Coal derived fuel means any fuel ( whether in a solid, liquid, or gaseous state) produced by the mechanical, thermal, or chemical processing of coal.

Coal fired means:

( 1) Except for purposes of subpart EEEE of this part,

combusting any amount of coal or coal derived fuel, alone or in combination with any amount of any other fuel, during any year; or ( 2) For purposes of subpart EEEE of this part, combusting any amount of coal or coal derived fuel, alone or in combination with any amount of any other fuel, during a specified year.

Cogeneration unit means a stationary, fossil fuel fired boiler or stationary, fossil fuel fired combustion turbine:

( 1) Having equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, or cooling purposes through the sequential use of energy; and ( 2) Producing during the 12 month period starting on the date 7/ 29/ 05 Draft  Do Not Quote or Cite 363 the unit first produces electricity and during any calendar year after the calendar year in which the unit first produces electricity   ( i) For a topping cycle cogeneration unit,

( A) Useful thermal energy not less than 5 percent of total energy output; and ( B) Useful power that, when added to one half of useful thermal energy produced, is not less then 42.5 percent of total energy input, if useful thermal energy produced is 15 percent or more of total energy output, or not less than 45 percent of total energy input, if useful thermal energy produced is less than 15 percent of total energy output.

( ii) For a bottoming cycle cogeneration unit, useful power not less than 45 percent of total energy input.

Combustion turbine means:

( 1) An enclosed device comprising a compressor, a combustor, and a turbine and in which the flue gas resulting from the combustion of fuel in the combustor passes through the turbine, rotating the turbine; and ( 2) If the enclosed device under paragraph ( 1) of this definition is combined cycle, any associated heat recovery steam generator and steam turbine.

Commence commercial operation means, with regard to a unit serving a generator: 7/ 29/ 05 Draft  Do Not Quote or Cite 364 ( 1) To have begun to produce steam, gas, or other heated medium used to generate electricity for sale or use, including test generation, except as provided in § 97.305.

( i) For a unit that is a CAIR NOX Ozone Season unit under § 97.304 on the later of November 15, 1990 or the date the unit commences commercial operation as defined in paragraph ( 1) of this definition and that subsequently undergoes a physical change ( other than replacement of the unit by a unit at the same source),

such date shall remain the unit's date of commencement of commercial operation.

( ii) For a unit that is a CAIR NOX Ozone Season unit under § 97.304 on the later of November 15, 1990 or the date the unit commences commercial operation as defined in paragraph ( 1) of this definition and that is subsequently replaced by a unit at the same source ( e. g., repowered), the replacement unit shall be treated as a separate unit with a separate date for commencement of commercial operation as defined in paragraph ( 1), ( 2), or ( 3) of this definition as appropriate.

( 2) Notwithstanding paragraph ( 1) of this definition and except as provided in § 97.305, for a unit that is not a CAIR NOX Ozone Season unit under § 97.304 on the later of November 15, 1990 or the date the unit commences commercial operation as defined in paragraph ( 1) of this definition and is not a unit under paragraph ( 3) of this definition, the unit's date for commencement of 7/ 29/ 05 Draft  Do Not Quote or Cite 365 commercial operation shall be the date on which the unit becomes a CAIR NOX Ozone Season unit under § 97.304.

( i) For a unit with a date for commencement of commercial operation as defined in paragraph ( 2) of this definition and that subsequently undergoes a physical change ( other than replacement of the unit by a unit at the same source), such date shall remain the unit's date of commencement of commercial operation.

( ii) For a unit with a date for commencement of commercial operation as defined in paragraph ( 2) of this definition and that is subsequently replaced by a unit at the same source ( e. g.,

repowered), the replacement unit shall be treated as a separate unit with a separate date for commencement of commercial operation as defined in paragraph ( 1),( 2), or ( 3) of this definition as appropriate.

( 3) Notwithstanding paragraph ( 1) of this definition and except as provided in § 97.384( h) or § 97.387( b)( 3), for a CAIR NOX Ozone Season opt in unit or a unit for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under subpart IIII of this part, the unit's date for commencement of commercial operation shall be the date on which the owner or operator is required to start monitoring and reporting the NOX emissions rate and the heat input of the unit under § 97.384( b)( 1)( i).

( i) For a unit with a date for commencement of commercial 7/ 29/ 05 Draft  Do Not Quote or Cite 366 operation as defined in paragraph ( 3) of this definition and that subsequently undergoes a physical change ( other than replacement of the unit by a unit at the same source), such date shall remain the unit's date of commencement of commercial operation.

( ii) For a unit with a date for commencement of commercial operation as defined in paragraph ( 3) of this definition and that is subsequently replaced by a unit at the same source ( e. g.,

repowered), the replacement unit shall be treated as a separate unit with a separate date for commencement of commercial operation as defined in paragraph ( 1), ( 2), or ( 3) of this definition as appropriate.

( 4) Notwithstanding paragraphs ( 1) through ( 3) of this definition, for a unit not serving a generator producing electricity for sale, the unit's date of commencement of operation shall also be the unit's date of commencement of commercial operation.

Commence operation means:

( 1) To have begun any mechanical, chemical, or electronic process, including, with regard to a unit, start up of a unit's combustion chamber, except as provided in § 97.305.

( i) For a unit that undergoes a physical change ( other than replacement of the unit by a unit at the same source) after the date the unit commences operation as defined in paragraph ( 1) of this definition, such date shall remain the unit's date of 7/ 29/ 05 Draft  Do Not Quote or Cite 367 commencement of operation.

( ii) For a unit that is replaced by a unit at the same source ( e. g., repowered) after the date the unit commences operation as defined in paragraph ( 1) of this definition, the replacement unit shall be treated as a separate unit with a separate date for commencement of operation as defined in paragraph ( 1), ( 2), or ( 3)

or ( 2) of this definition as appropriate.

( 2) Notwithstanding paragraph ( 1) of this definition and except as provided in § 97.305, for a unit that is a CAIR NOX Ozone Season unit under § 97.304( d), but not on the later of November 15, 1990 or the date the unit commences operation as defined in paragraph ( 1) of this definition, and is not a unit under paragraph ( 3) of this definition, the unit's date for commencement of operation shall be the date on which the unit becomes a CAIR NOX Ozone Season unit under § 97.304( d).

( i) For a unit with a date for commencement of commercial operation as defined in paragraph ( 2) of this definition and that subsequently undergoes a physical change ( other than replacement of the unit by a unit at the same source), such date shall remain the unit's date of commencement of commercial operation.

( ii) For a unit with a date for commencement of commercial operation as defined in paragraph ( 2) of this definition and that is subsequently replaced by a unit at the same source ( e. g.,

repowered), the replacement unit shall be treated as a separate 7/ 29/ 05 Draft  Do Not Quote or Cite 368 unit with a separate date for commencement of commercial operation as defined in paragraph ( 1),( 2), or ( 3) of this definition as appropriate.

( 3) Notwithstanding paragraph ( 1) of this definition and except as provided in § 97.384( h) or § 97.387( b)( 3), for a CAIR NOX Ozone Season opt in unit or a unit for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under subpart IIII of this part, the unit's date for commencement of operation shall be the date on which the owner or operator is required to start monitoring and reporting the NOX emissions rate and the heat input of the unit under § 97.384( b)( 1)( i).

( i) For a unit with a date for commencement of operation as defined in paragraph ( 3) of this definition and that subsequently undergoes a physical change ( other than replacement of the unit by a unit at the same source), such date shall remain the unit's date of commencement of operation.

( ii) For a unit with a date for commencement of operation as defined in paragraph ( 3) of this definition and that is subsequently replaced by a unit at the source ( e. g., repowered),

the replacement unit shall be treated as a separate unit with a separate date for commencement of operation as defined in paragraph ( 1), ( 2), or ( 3) of this definition as appropriate.

Common stack means a single flue through which emissions from 2 or 7/ 29/ 05 Draft  Do Not Quote or Cite 369 more units are exhausted.

Compliance account means a CAIR NOX Ozone Season Allowance Tracking System account, established by the Administrator for a CAIR NOX Ozone Season source under subpart FFFF or IIII of this part, in which any CAIR NOX Ozone Season allowance allocations for the CAIR NOX Ozone Season units at the source are initially recorded and in which are held any CAIR NOX Ozone Season allowances available for use for a control period in order to meet the source's CAIR NOX Ozone Season emissions limitation in accordance with § 97.354.

Continuous emission monitoring system or CEMS means the equipment required under subpart HHHH of this part to sample, analyze,

measure, and provide, by means of readings recorded at least once every 15 minutes ( using an automated data acquisition and handling system ( DAHS)), a permanent record of nitrogen oxides emissions,

stack gas volumetric flow rate, stack gas moisture content, and oxygen or carbon dioxide concentration ( as applicable), in a manner consistent with part 75 of this chapter. The following systems are the principal types of continuous emission monitoring systems required under subpart HHHH of this part:

( 1) A flow monitoring system, consisting of a stack flow rate monitor and an automated data acquisition and handling system and providing a permanent, continuous record of stack gas volumetric flow rate, in standard cubic feet per hour ( scfh);

( 2) A nitrogen oxides concentration monitoring system, 7/ 29/ 05 Draft  Do Not Quote or Cite 370 consisting of a NOX pollutant concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record of NOX emissions, in parts per million ( ppm);

( 3) A nitrogen oxides emission rate ( or NOX diluent) monitoring system, consisting of a NOX pollutant concentration monitor, a diluent gas ( CO2 or O2) monitor, and an automated data acquisition and handling system and providing a permanent, continuous record of NOX concentration, in parts per million ( ppm), diluent gas concentration, in percent CO2 or O2, and NOX emission rate, in pounds per million British thermal units ( lb/ mmBtu);

( 4) A moisture monitoring system, as defined in § 75.11( b)( 2) of this chapter and providing a permanent, continuous record of the stack gas moisture content, in percent H2O;

( 5) A carbon dioxide monitoring system, consisting of a CO2 pollutant concentration monitor ( or an oxygen monitor plus suitable mathematical equations from which the CO2 concentration is derived) and an automated data acquisition and handling system and providing a permanent, continuous record of CO2 emissions, in percent CO2; and ( 6) An oxygen monitoring system, consisting of an O2 concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record of O2, in percent O2. 7/ 29/ 05 Draft  Do Not Quote or Cite 371 Control period or ozone season means the period beginning May 1 of a calendar year, except as provided in § 97.306( c)( 2) and ending on September 30 of the same year, inclusive.

Emissions means air pollutants exhausted from a unit or source into the atmosphere, as measured, recorded, and reported to the Administrator by the CAIR designated representative and as determined by the Administrator in accordance with subpart HHHH of this part.

Excess emissions means any ton of nitrogen oxides emitted by the CAIR NOX Ozone Season units at a CAIR NOX Ozone Season source during a control period that exceeds the CAIR NOX Ozone Season emissions limitation for the source.

Fossil fuel means natural gas, petroleum, coal, or any form of solid, liquid, or gaseous fuel derived from such material.

Fossil fuel fired means, with regard to a unit, combusting any amount of fossil fuel in any calendar year.

Fuel oil means any petroleum based fuel ( including diesel fuel or petroleum derivatives such as oil tar) and any recycled or blended petroleum products or petroleum by products used as a fuel whether in a liquid, solid, or gaseous state.

General account means a CAIR NOX Ozone Season Allowance Tracking System account, established under subpart FFFF of this part, that is not a compliance account.

Generator means a device that produces electricity. 7/ 29/ 05 Draft  Do Not Quote or Cite 372 Gross electrical output means, with regard to a cogeneration unit,

electricity made available for use, including any such electricity used in the power production process ( which process includes, but is not limited to, any on site processing or treatment of fuel combusted at the unit and any on site emission controls).

Heat input means, with regard to a specified period of time, the product ( in mmBtu/ time) of the gross calorific value of the fuel ( in Btu/ lb) divided by 1,000,000 Btu/ mmBtu and multiplied by the fuel feed rate into a combustion device ( in lb of fuel/ time), as measured, recorded, and reported to the Administrator by the CAIR designated representative and determined by the Administrator in accordance with subpart HHHH of this part and excluding the heat derived from preheated combustion air, recirculated flue gases, or exhaust from other sources.

Heat input rate means the amount of heat input ( in mmBtu) divided by unit operating time ( in hr) or, with regard to a specific fuel,

the amount of heat input attributed to the fuel ( in mmBtu) divided by the unit operating time ( in hr) during which the unit combusts the fuel.

Hg Budget Trading Program means a multi state Hg air pollution control and emission reduction program approved and administered by the Administrator in accordance subpart HHHH of part 60 of this chapter and § 60.24( h)( 6), or established by the Administrator, as a means of reduction national Hg emissions. 7/ 29/ 05 Draft  Do Not Quote or Cite 373 Life of the unit, firm power contractual arrangement means a unit participation power sales agreement under which a utility or industrial customer reserves, or is entitled to receive, a specified amount or percentage of nameplate capacity and associated energy generated by any specified unit and pays its proportional amount of such unit's total costs, pursuant to a contract:

( 1) For the life of the unit;

( 2) For a cumulative term of no less than 30 years, including contracts that permit an election for early termination; or ( 3) For a period no less than 25 years or 70 percent of the economic useful life of the unit determined as of the time the unit is built, with option rights to purchase or release some portion of the nameplate capacity and associated energy generated by the unit at the end of the period.

Maximum design heat input means, starting from the initial installation of a unit, the maximum amount of fuel per hour ( in Btu/ hr) that a unit is capable of combusting on a steady state basis as specified by the manufacturer of the unit, or, starting from the completion of any subsequent physical change in the unit resulting in a decrease in the maximum amount of fuel per hour ( in Btu/ hr) that a unit is capable of combusting on a steady state basis, such decreased maximum amount as specified by the person conducting the physical change. 7/ 29/ 05 Draft  Do Not Quote or Cite 374 Monitoring system means any monitoring system that meets the requirements of subpart HHHH of this part, including a continuous emissions monitoring system, an alternative monitoring system, or an excepted monitoring system under part 75 of this chapter.

Most stringent State or Federal NOX emissions limitation means,

with regard to a unit, the lowest NOX emissions limitation ( in terms of lb/ mmBtu) that is applicable to the unit under State or Federal law, regardless of the averaging period to which the emissions limitation applies.

Nameplate capacity means, starting from the initial installation of a generator, the maximum electrical generating output ( in MWe)

that the generator is capable of producing on a steady state basis and during continuous operation ( when not restricted by seasonal or other deratings) as specified by the manufacturer of the generator or, starting from the completion of any subsequent physical change in the generator resulting in an increase in the maximum electrical generating output ( in MWe) that the generator is capable of producing on a steady state basis and during continuous operation ( when not restricted by seasonal or other deratings), such increased maximum amount as specified by the person conducting the physical change.

Oil fired means, for purposes of subpart EEEE of this part,

combusting fuel oil for more than 15.0 percent of the annual heat input in a specified year and not qualifying as coal fired. 7/ 29/ 05 Draft  Do Not Quote or Cite 375 Operator means any person who operates, controls, or supervises a CAIR NOX Ozone Season unit or a CAIR NOX Ozone Season source and shall include, but not be limited to, any holding company, utility system, or plant manager of such a unit or source.

Owner means any of the following persons:

( 1) With regard to a CAIR NOX Ozone Season source or a CAIR NOX Ozone Season unit at a source, respectively:

( i) Any holder of any portion of the legal or equitable title in a CAIR NOX Ozone Season unit at the source or the CAIR NOX Ozone Season unit;

( ii) Any holder of a leasehold interest in a CAIR NOX Ozone Season unit at the source or the CAIR NOX Ozone Season unit; or ( iii) Any purchaser of power from a CAIR NOX Ozone Season unit at the source or the CAIR NOX Ozone Season unit under a life of the unit, firm power contractual arrangement; provided that, unless expressly provided for in a leasehold agreement,

owner shall not include a passive lessor, or a person who has an equitable interest through such lessor, whose rental payments are not based ( either directly or indirectly) on the revenues or income from such CAIR NOX Ozone Season unit; or ( 2) With regard to any general account, any person who has an ownership interest with respect to the CAIR NOX Ozone Season allowances held in the general account and who is subject to the binding agreement for the CAIR authorized account representative 7/ 29/ 05 Draft  Do Not Quote or Cite 376 to represent the person's ownership interest with respect to CAIR NOX Ozone Season allowances.

Permitting authority means the State air pollution control agency,

local agency, other State agency, or other agency authorized by the Administrator to issue or revise permits to meet the requirements of the CAIR NOX Ozone Season Trading Program in accordance with subpart CCCC of this part or, if no such agency has been so authorized, the Administrator.

Potential electrical output capacity means 33 percent of a unit's maximum design heat input, divided by 3,413 Btu/ kWh, divided by 1,000 kWh/ MWh, and multiplied by 8,760 hr/ yr.

Receive or receipt of means, when referring to the permitting authority or the Administrator, to come into possession of a document, information, or correspondence ( whether sent in hard copy or by authorized electronic transmission), as indicated in an official correspondence log, or by a notation made on the document, information, or correspondence, by the permitting authority or the Administrator in the regular course of business.

Recordation, record, or recorded means, with regard to CAIR NOX Ozone Season allowances, the movement of CAIR NOX Ozone Season allowances by the Administrator into or between CAIR NOX Ozone Season Allowance Tracking System accounts, for purposes of allocation, transfer, or deduction.

Reference method means any direct test method of sampling and 7/ 29/ 05 Draft  Do Not Quote or Cite 377 analyzing for an air pollutant as specified in § 75.22 of this chapter.

Repowered means, with regard to a unit, replacement of a coalfired boiler with one of the following coal fired technologies at the same source as the coal fired boiler:

( 1) Atmospheric or pressurized fluidized bed combustion;

( 2) Integrated gasification combined cycle;

( 3) Magnetohydrodynamics;

( 4) Direct and indirect coal fired turbines;

( 5) Integrated gasification fuel cells; or ( 6) As determined by the Administrator in consultation with the Secretary of Energy, a derivative of one or more of the technologies under paragraphs ( 1) through ( 5) of this definition and any other coal fired technology capable of controlling multiple combustion emissions simultaneously with improved boiler or generation efficiency and with significantly greater waste reduction relative to the performance of technology in widespread commercial use as of January 1, 2005.

Serial number means, for a CAIR NOX Ozone Season allowance, the unique identification number assigned to each CAIR NOX Ozone Season allowance by the Administrator.

Sequential use of energy means:

( 1) For a topping cycle cogeneration unit, the use of reject heat from electricity production in a useful thermal energy 7/ 29/ 05 Draft  Do Not Quote or Cite 378 application or process; or ( 2) For a bottoming cycle cogeneration unit, the use of reject heat from useful thermal energy application or process in electricity production.

Solid waste incineration unit means a stationary, fossil

fuelfired boiler or stationary, fossil fuel fired combustion turbine that is a " solid waste incineration unit" as defined in section 129( g)( 1) of the Clean Air Act.

Source means all buildings, structures, or installations located in one or more contiguous or adjacent properties under common control of the same person or persons. For purposes of section 502( c) of the Clean Air Act, a " source," including a " source" with multiple units, shall be considered a single " facility."

State means one of the States or the District of Columbia that is subject to the CAIR NOX Ozone Season Trading Program pursuant to § 52.35 of this chapter.

Submit or serve means to send or transmit a document, information,

or correspondence to the person specified in accordance with the applicable regulation:

( 1) In person;