while allowing a limited ability to shift emissions between facilities
or states. This approach ensures that emissions in each state that
significantly contribute to downwind nonattainment or maintenance areas
are controlled, while allowing power companies to adjust generation
based on fluctuations in electricity demand, weather, availability of
low-emitting power sources (e.g. temporary shut-down of a nuclear power
plant for maintenance or repairs), or other unanticipated factors
affecting the interconnected electricity grid.
    Any emissions above the state's allocated level must be offset by
emissions reductions from another state in the region below that
state's budget or by using extra ``banked'' allowances from earlier
years. All sources must hold enough allowances to cover their
emissions; therefore, if they emit more than their allocation they must
buy allowances from another source that emitted less than its
allocation. PM2.5 and ozone pollution from power plants have
both local and regional components: Part of the pollution in a given
location--even in locations near emissions sources--is due to emissions
from nearby sources and part is due to emissions that travel hundreds
of miles and mix with emissions from other sources. Therefore, in many
instances the exact location of the upwind reductions does not affect
the levels of air pollution downwind.
    It is important to recognize that the section of the Clean Air Act
providing authority for this rule, 110(a)(2)(D), unlike some other
provisions, does not dictate levels of control for particular
facilities. None of EPA's alternatives within this proposal can ensure
there will be no emission increases at any facility. Under the direct
control alternative, the emissions rate for each facility is reduced
but each facility could emit more by increasing their power output in
order to meet electricity reliability or other goals. Under the
intrastate trading option, state emissions must stay constant but
individual facilities within each state could increase their emissions
as long as another facility in the state had decreased theirs. By
strictly setting state budgets to eliminate significant contributions
to non-attainment and maintenance areas that EPA has identified in this
action, by limiting the amount of interstate trading possible and by
requiring any emissions above the level of the allocations to be offset
by emission decreases elsewhere in the region, the proposed remedy
options reduce ambient concentrations where they are most needed.
    EPA's emissions modeling data indicate that nationwide
SO2 emissions from electric generating units (EGUs) will be
approximately 6.4 million tons (60 percent) lower in 2014 than they
were in 2005 (which is the year that the Clean Air Interstate Rule was
finalized). Emissions would also decrease when compared to the base
case (the base case estimates of SO2 emissions in 2014 in
the absence of this proposed rule or the Clean Air Interstate Rule it
is replacing). SO2 emissions under this proposed rule are
projected to be approximately 4.4 million tons (50%) lower than they
would have been in 2014 in the base case (i.e. without this rule).
    EPA's modeling does project that some states not covered by one or
more aspects of the program may experience increases of SO2
emissions (i.e., their emissions are greater in the control case
modeling than in the base case modeling). These emission increases are
the result of forecasted changes in operation of units outside of the
controlled region (due to the interconnected nature of the utility grid
or influence of the rule on the market for lower sulfur coal). As shown
in Table IV.D.6, Arkansas, Mississippi, North Dakota, South Dakota, and
Texas all exhibit 2012 SO2 emissions increases over the base
case of more than 5,000 tons. Texas is projected to have by far the
largest increase (136,000 tons), while the other states' increases
ranges from 6,000 to 32,000 tons. Further analysis with the simplified
air quality assessment tool indicates that these projected increases in
the Texas SO2 emissions would increase Texas's contribution
to an amount that would exceed the 0.15 [mu]g/m3 threshold
for annual PM2.5. For this reason, EPA requests comment on
whether Texas should be included in the program as a group 2 state. For
additional details, see section IV.D of this preamble.
    With the exception noted above, EPA is not proposing for the
SO2 portion of this rule to cover the states where
SO2 emissions are projected to increase because EPA has not
found, at this time, that they contribute significantly to
nonattainment or interfere with maintenance of the PM2.5
NAAQS in downwind areas. EPA's authority under Sec.  110(a)(2)(d)(i)(I)
is limited to addressing any such significant contribution and
interference with maintenance. EPA anticipates that additional
rulemakings affecting utilities that will be proposed soon, such as the
CAA Section 112(d) standards, would apply nationwide and result in
significant additional SO2 reductions.
    EPA's emissions modeling data indicates that nationwide ozone
season NOX emissions from EGUs will be approximately 400,000
tons (30%) lower in 2014 than they were in 2005 (before implementation
of the Clean Air Interstate Rule). Emissions would also decrease
compared to the base case. Ozone season NOX emissions from
EGUs under this proposed rule are projected to be approximately 150,000
tons (15%) lower than they would have been in 2014 in the base case
(i.e. without this rule). EPA anticipates that additional upcoming
actions, and likely additional interstate transport reductions to help
states attain the proposed 2010 ozone NAAQS, will result in significant
additional NOX reductions.
    EPA anticipates that this proposed action will significantly
reduce, but not eliminate, the number of nonattainment and maintenance
areas for the 1997 ozone and PM2.5 and 2006 PM2.5
NAAQS. Table IX-1 lists the changes in number of nonattainment sites.
Most of these sites are located in urban areas. A single nonattainment
area usually contains multiple monitoring sites; therefore there are
more nonattainment sites than nonattainment counties or areas. As
discussed in detail in section IV.D of this preamble, where this
proposal does not fully quantify all of the significant contribution
and interference with maintenance, EPA intends to address these
additional requirements quickly. To the extent possible, EPA will
supplement this proposed notice with additional information so that we
can provide downwind states with all the certainty about upwind
emissions reductions they need to address their own local nonattainment
concerns. In addition, as stated above, elimination of these
nonattainment areas may require both local and regional emissions
reductions and this proposed action seeks only to address the regional
transport component.
    As a result of these SO2 and NOX reductions,
EPA's air quality modeling indicates that concentrations of fine
particles will decline throughout the eastern U.S. and in all the
states affected by this rule. These reductions are largest in the area
of the Ohio River valley and

neighboring states and extend east through New England, west to Texas,
south to Florida, and north through the Great Lakes states. ``Border''
states immediately outside the transport region are also predicted to
see reductions in air concentrations, even though emissions increase in
some of these states. This is because concentrations of fine particles
in most locations are composed of both local emissions and those
transported over hundreds of miles and emissions reductions far away
can cause significant improvements in local air quality.
    The modeling suggests also that there may be some small increases
in PM2.5 near locations in the western U.S. where
SO2 emissions are forecast to increase. These increases are
small compared to the reductions predicted to take place in the eastern
U.S. The increases are due to the regional nature of this rule (i.e.
these states are not covered because sources in these states have not
been found to contribute significantly to downwind nonattainment or
maintenance areas) and the national nature of both coal markets and the
Acid Rain Program allowance market. They are not the result of any
particular type of remedy option (e.g. trading). EPA anticipates that
future rulemakings, such as CAA section 112(d) standards and
anticipated revisions to the 2006 fine particulate standards, are
likely to reduce emissions in the areas not covered by this rule.
    EPA's air quality modeling also indicates that concentrations of
ozone will decline in much of the eastern U.S. These reductions are
largest along much of the Gulf Coast and in Florida and in a region
encompassing western Wisconsin, Iowa, Kansas, Missouri, Arkansas, and
northeastern Oklahoma. These areas with the largest reductions are
roughly the area immediately outside the boundaries of the
NOX SIP Call region. States in the SIP Call region were
required to make significant reductions in NOX beginning in
2003 and these emissions reductions are included in the baseline
modeling for this proposed Transport Rule and therefore not captured as
additional benefits of this rulemaking.
    As is common when modeling many NOX control strategies,
the air quality modeling for this proposed rule also suggests there may
be a few small, localized areas in the eastern U.S. where there are
small increases in ozone concentrations. These generally small
increases are a result of reductions in NOX emissions in
these local areas; they do not appear to represent a lack of
NOX emissions reductions or be the result of any specific
emission control strategy (e.g. any type of trading). Rather, this
phenomenon can result from complex atmospheric chemistry reactions
taking place among chemical constituents of air pollution in these
areas. Due to the complex photochemistry of ozone production,
NOX emissions lead to both the formation and destruction of
ozone, depending on the relative quantities of NOX, volatile
organic compounds, and ozone formation catalysts. In the 2014 base
case, NOX emissions from sources in a few locations act to
``quench'' (i.e., lower) ozone compared to ozone concentrations in
surrounding areas. The application of NOX controls in these
areas reduces this quenching effect, thereby increasing ozone to levels
generally on par with those of the surrounding area. In this case it is
uncertain whether the structure of the model itself is potentially
exacerbating the spatial extent or magnitude of any ozone increases
which might actually occur as a result of this rule. It should be noted
that these same NOX emissions reductions that might be
causing extremely localized ozone increases are certainly causing
larger, more widespread improvements in ozone concentrations in
downwind areas. Finally, as stated above, it is important to note that
EPA intends to promulgate additional rules over the next few years that
will further reduce concentrations of ozone and PM2.5 and
that the federal government and the states can and do use many
different legal authorities to limit exposure to ozone.
    Health benefits. This rule reduces concentrations of
PM2.5 and ozone pollution, exposure to which can cause, or
contribute to, adverse health effects including premature mortality and
many types of heart and lung diseases that affect many minority and
low-income individuals, and Tribal communities. PM2.5 and
ozone are particularly (but not exclusively) harmful to children, the
elderly, and people with existing heart and lung diseases, including
asthma. Exposure to these pollutants can cause premature death and
trigger heart attacks, asthma attacks in those with asthma, chronic and
acute bronchitis, emergency room visits and hospitalizations, as well
as milder illnesses that keep children home from school and adults home
from work. High rates of both heart disease and asthma are a cause for
concern in many environmental justice communities, making these
populations more susceptible to air pollution health impacts. In
addition, many individuals in these communities also lack access to
high quality health care to treat these illnesses.
    We estimate that in 2014 the PM-related annual benefits of the
proposed remedy option include approximately 14,000 to 36,000 fewer
premature mortalities, 9,200 fewer cases of chronic bronchitis, 22,000
fewer non-fatal heart attacks, 11,000 fewer hospitalizations (for
respiratory and cardiovascular disease combined), 10 million fewer days
of restricted activity due to respiratory illness and approximately 1.8
million fewer lost work days. We also estimate substantial health
improvements for children in the form of fewer cases of upper and lower
respiratory illness, acute bronchitis, and asthma attacks.
    Ozone health-related benefits are expected to occur during the
summer ozone season (usually ranging from May to September in the
eastern U.S.). Based upon modeling for 2014, annual ozone related
health benefits are expected to include between 50 and 230 fewer
premature mortalities, 690 fewer hospital admissions for respiratory
illnesses, 230 fewer emergency room admissions for asthma, 300,000
fewer days with restricted activity levels, and 110,000 fewer days
where children are absent from school due to illnesses. When adding the
PM and ozone-related mortalities together, we find that the proposed
remedy option for this rule will yield between 14,000 and 36,000 fewer
premature mortalities. EPA has also estimated the benefits of the
alternate remedies in this proposal using a benefit-per-ton estimation
approach and found they would provide similar benefits.
    It should be noted that, as discussed in the RIA for this action,
there are other benefits to the emissions reductions discussed here,
such as improved visibility and, indirectly, reduced mercury
deposition. Additional benefits of reducing emissions of SO2
include reduced acidification of lakes and streams, and reduced mercury
methylation; additional benefits of NOX reductions include
reduced acidification of lakes and streams and reduced coastal
eutrophication. Conversely, it is possible that the modest increases in
emissions modeled for this rule in some western areas could result in
limited increases of one or more of these effects in these locations.
3. Meaningful Public Participation
    As EPA began considering approaches to address the court remand of
the 2005 Clean Air Interstate Rule, the agency also began gathering
input from a larger range of stakeholders. In the spring of 2009, EPA
held a series of listening

sessions to gather information and perspectives from stakeholders prior
to the formal start of the rulemaking process. These stakeholders
included a number of environmental groups who requested that EPA
consider several potential environmental justice issues during
development of this rule. In addition, many environmental justice
organizations were represented at a November 2009 EPA-Health and Human
Services White House Stakeholder Briefing entitled ``The Public Health
Benefits of Energy Reform'' in which EPA discussed our intention to
propose this rule in the spring of 2010 and participants had the
opportunity to respond. Finally, EPA notified tribes of our intent to
propose this rule in the fall of 2009 during a regularly scheduled
meeting to update the National Tribal Air Association members of
upcoming EPA policies and regulations and to receive input from them on
the effects of these efforts in Indian country. These were not
opportunities for stakeholders to comment on the specifics of this
proposal, as they took place prior to the development of this proposal,
but they provided valuable information that EPA used in developing this
proposal.
    Upon proposal of this action, the Agency will begin an outreach
effort with environmental justice communities, the public, the
regulated community, state air regulators, and others to (1) describe
the Transport Rule proposal, (2) provide information on the 2011 CAA
Section 112 (d) and other upcoming EPA rulemakings affecting the power
sector, and (3) listen to comments from stakeholders. The intent will
be to inform all stakeholders of the industry's obligations and
opportunities for the industry to use investments in SO2 and
NOX reductions to help smooth transition to the CAA Section
112(d) standards compliance in late 2014. EPA intends to continue these
efforts over time as more information becomes available in the
development of the various rulemakings under development for the power
sector.
    During the comment period for this proposed rule, EPA intends to
reach out specifically to environmental justice communities and
organizations to notify them of the opportunity to provide comments on
this rule and to solicit their comments on both this rule and the
upcoming actions described above and in section III.E. EPA will hold
public hearings on this rule; see the information at the very beginning
of this preamble for locations, times and dates. Comments can also be
submitted in writing or electronically by following the instructions at
the beginning of this preamble.
4. Summary
    EPA believes that the vast majority of communities and individuals
in areas covered by this rule, including numerous low-income, minority,
and Tribal communities in both rural areas and inner cities in the
East, will see significant improvements in air quality and resulting
improvements in health. EPA also recognizes that there is the potential
for a number of communities or individuals outside the region covered
by this rule to experience slightly worse air quality as an indirect
result of emissions reductions required under this proposal. EPA
requests comment on the impacts of this proposed action on low income,
minority, and Tribal communities. EPA will further analyze
environmental justice issues related to the impacts of the rule on
those communities based both on additional data that may be developed
and on comments on those issues prior to final action on this rule.

List of Subjects

40 CFR Part 51

    Administrative practice and procedure, Air pollution control,
Intergovernmental relations, Nitrogen oxides, Ozone, Particulate
matter, Regional haze, Reporting and recordkeeping requirements, Sulfur
dioxide.

40 CFR Part 52

    Administrative practice and procedure, Air pollution control,
Intergovernmental relations, Nitrogen oxides, Ozone, Particulate
matter, Regional haze, Reporting and recordkeeping requirements, Sulfur
dioxide.

40 CFR Parts 72

    Acid rain, Administrative practice and procedure, Air pollution
control, Electric utilities, Intergovernmental relations, Nitrogen
oxides, Reporting and recordkeeping requirements, Sulfur dioxide.

40 CFR Part 78

    Acid rain, Administrative practice and procedure, Air pollution
control, Electric utilities, Intergovernmental relations, Nitrogen
oxides, Reporting and recordkeeping requirements, Sulfur dioxide.

40 CFR Part 97

    Administrative practice and procedure, Air pollution control,
Electric utilities, Nitrogen oxides, Reporting and recordkeeping
requirements, Sulfur dioxide.

    Dated: July 6, 2010.
Lisa P. Jackson,
Administrator.
    For the reasons set forth in the preamble, parts 51, 52, 72, 78,
and 97 of chapter I of title 40 of the Code of Federal Regulations are
proposed to be amended as follows:

PART 51--[AMENDED]

    1. The authority citation for Part 51 continues to read as follows:

    Authority: 23 U.S.C. 101; 42 U.S.C. 7401-7671q.

Sec.  51.121  [Amended]

    2. Section 51.121 is amended by revising paragraph (r)(2) by
removing the words ``Sec.  51.123(bb)'' and adding, in their place, the
words ``Sec.  51.123(bb) with regard to an ozone season that occurs
before January 1, 2012''.

Sec.  51.123  [Amended]

    3. Section 51.123 is amended by adding a new paragraph (ff) to read
as follows:

Sec.  51.123  Findings and requirements for submission of State
implementation plan revisions relating to emissions of oxides of
nitrogen pursuant to the Clean Air Interstate Rule.

* * * * *
    (ff) Notwithstanding any provisions of paragraphs (a) through (ee)
of this section, subparts AA through II and AAA through III of part 96
of this chapter, subparts AA through II and AAAA through IIII of part
97 of this chapter, and any State's SIP to the contrary:
    (1) With regard to any control period that begins after December
31, 2011, the Administrator:
    (i) Rescinds the determination in paragraph (a) of this section
that the States identified in paragraph (c) of this section must submit
a SIP revision with respect to the fine particles (PM2.5)
NAAQS and the 8-hour ozone NAAQS meeting the requirements of paragraphs
(b) through (ee) of this section; and
    (ii) Will not carry out any of the functions set forth for the
Administrator in subparts AA through II and AAAA through IIII of part
96 of this chapter, subparts AA through II and AAAA through IIII of
part 97 of this chapter, or in any emissions trading program provisions
in a State's SIP approved under this section; and
    (2) The Administrator will not deduct for excess emissions any CAIR
NOX allowances or CAIR NOX Ozone Season
allowances allocated for 2012 or any year thereafter.

Sec.  51.124  [Amended]

    4. Section 51.124 is amended by adding a new paragraph (s) to read
as follows:

Sec.  51.124  Findings and requirements for submission of State
implementation plan revisions relating to emissions of sulfur dioxide
pursuant to the Clean Air Interstate Rule.

* * * * *
    (s) Notwithstanding any provisions of paragraphs (a) through (r) of
this section, subparts AAA through III of part 96 of this chapter,
subparts AAA through III of part 97 of this chapter, and any State's
SIP to the contrary:
    (1) With regard to any control period that begins after December
31, 2011, the Administrator:
    (i) Rescinds the determination in paragraph (a) of this section
that the States identified in paragraph (c) of this section must submit
a SIP revision with respect to the fine particles (PM2.5)
NAAQS meeting the requirements of paragraphs (b) through (r) of this
section; and
    (ii) Will not carry out any of the functions set forth for the
Administrator in subparts AAA through III of part 96 of this chapter,
subparts AAA through III of part 97 of this chapter, or in any
emissions trading program in a State's SIP approved under this section;
and
    (2) The Administrator will not deduct for excess emissions any CAIR
SO2 allowances allocated for 2012 or any year thereafter.

Sec.  51.125  [Reserved]

    5. Section 51.125 is removed and reserved.

PART 52--[AMENDED]

    6. The authority citation for Part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401, et seq.

Subpart A--General Provisions

Sec.  52.35  [Amended]

    7. Section 52.35 is amended by adding a new paragraph (f) to read
as follows:

Sec.  52.35  What are the requirements of the Federal Implementation
Plans (FIPs) for the Clean Air Interstate Rule (CAIR) relating to
emissions of nitrogen oxides?

* * * * *
    (f) Notwithstanding any provisions of paragraphs (a) through (d) of
this section, subparts AA through II and AAAA through IIII of part 97
of this chapter, and any State's SIP to the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions in paragraphs (a) through (d) of this section
relating to NOX annual or ozone season emissions shall not
be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AA through II and AAAA through
IIII of part 97 of this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
NOX allowances or CAIR NOX Ozone Season
allowances allocated for 2012 or any year thereafter.

Sec.  52.36  [Amended]

    8. Section 52.36 is amended by adding a new paragraph (e) to read
as follows:

Sec.  52.36  What are the requirements of the Federal Implementation
Plans (FIPs) for the Clean Air Interstate Rule (CAIR) relating to
emissions of sulfur dioxide?

* * * * *
    (e) Notwithstanding any provisions of paragraphs (a) through (c) of
this section, subparts AAA through III of part 97 of this chapter and
any State's SIP to the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions of paragraphs (a) through (e) of this section
relating to SO2 emissions shall not be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AAA through III of part 97 of
this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
SO2 allowances allocated for 2012 or any year thereafter.
    9. Subpart A is amended by adding Sec. Sec.  52.37 and 52.38 to
read as follows:

Sec.  52.37  What are the requirements of the Federal Implementation
Plans (FIPs) under the Transport Rule (TR) relating to emissions of
nitrogen oxides?

    (a)(1) The TR NOX Annual Trading Program provisions of
part 97 of this chapter constitute the TR Federal Implementation Plan
provisions that relate to annual emissions of nitrogen oxides
(NOX).
    (2) The provisions of subpart AAAAA of part 97 of this chapter,
regarding the TR NOX Annual Trading Program, apply to the
sources in the following States: Alabama, Connecticut, Delaware,
District of Columbia, Florida, Georgia, Illinois, Indiana, Iowa,
Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan,
Minnesota, Missouri, Nebraska, New Jersey, New York, North Carolina,
Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia,
and Wisconsin.
    (3) Following promulgation of an approval by the Administrator of a
State's SIP as correcting the SIP's deficiency that is the basis for
this Federal Implementation Plan, the provisions of paragraph (a)(2) of
this section will no longer apply to the sources in the State, unless
the Administrator's approval of the SIP is partial or conditional.
    (4) Notwithstanding the provisions of paragraph (a)(3) of this
section, if, at the time of such approval of the State's SIP, the
Administrator has already allocated any TR NOX Annual
allowances to sources in the State for any years, the provisions of
part 97 of this chapter authorizing the Administrator to complete the
allocation of TR NOX Annual allowances for those years shall
continue to apply, unless provided otherwise by such approval of the
State's SIP.
    (b)(1) The TR NOX Ozone Season Trading Program
provisions of part 97 of this chapter constitute the TR Federal
Implementation Plan provisions that relate to emissions of
NOX during the ozone season, defined as May 1 through
September 30 of a calendar year.
    (2) The provisions of subpart BBBBB of part 97 of this chapter,
regarding the TR NOX Ozone Season Trading Program, apply to
sources in each of the following States: Alabama, Arkansas,
Connecticut, Delaware, District of Columbia, Florida, Georgia,
Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan,
Mississippi, New Jersey, New York, North Carolina, Ohio, Oklahoma,
Pennsylvania, South Carolina, Tennessee, Texas, Virginia, and West
Virginia.
    (3) Following promulgation of an approval by the Administrator of a
State's SIP as correcting the SIP's deficiency that is the basis for
this Federal Implementation Plan, the provisions of paragraph (b)(2) of
this section will no longer apply to sources in the State, unless the
Administrator's approval of the SIP is partial or conditional.
    (4) Notwithstanding the provisions of paragraph (b)(3) of this
section, if, at the time of such approval of the State's SIP, the
Administrator has already allocated any TR NOX Ozone Season
allowances to sources in the State for any years, the provisions of
part 97 of this chapter authorizing the Administrator to complete the
allocation of TR NOX Ozone Season allowances for those years
shall continue to apply, unless provided otherwise by such approval of
the State's SIP.

Sec.  52.38  What are the requirements of the Federal Implementation
Plans (FIPs) for the Transport Rule (TR) relating to emissions of
sulfur dioxide?

    (a) The TR SO2 Group 1 Trading Program and TR
SO2 Group 2 Trading Program provisions of part 97 of this
chapter constitute the TR Federal Implementation Plan provisions that
relate to emissions of sulfur dioxide (SO2).
    (b) The provisions of subpart CCCCC of part 97 of this chapter,
regarding the TR SO2 Group 1 Trading Program, apply to
sources in each of the following States: Georgia, Illinois, Indiana,
Iowa, Kentucky, Michigan, Missouri, New York, North Carolina, Ohio,
Pennsylvania, Tennessee, Virginia, West Virginia, and Wisconsin.
    (c) The provisions of subpart DDDDD of part 97 of this chapter,
regarding the TR SO2 Group 2 Trading Program, apply to
sources in each of the following States: Alabama, Connecticut,
Delaware, District of Columbia, Florida, Kansas, Louisiana, Maryland,
Massachusetts, Minnesota, Nebraska, New Jersey, and South Carolina.
    (d) Following promulgation of an approval by the Administrator of a
State's SIP as correcting the SIP's deficiency that is the basis for
this Federal Implementation Plan, the provisions of paragraph (b) and
(c) of this section, as applicable, will no longer apply to sources in
the State, unless the Administrator's approval of the SIP is partial or
conditional.
    (e) Notwithstanding the provisions of paragraph (d) of this
section, if, at the time of such approval of the State's SIP, the
Administrator has already allocated any TR SO2 Group 1
allowances or any TR SO2 Group 2 allowances (as applicable)
to sources in the State for any years, the provisions of part 97 of
this chapter authorizing the Administrator to complete the allocation
of TR SO2 Group 1 allowances or TR SO2 Group 2
allowances (as applicable) for those years shall continue to apply,
unless provided otherwise by such approval of the State's SIP.

Subpart I--Delaware

    10. Section 52.440 is amended by adding a new paragraph (c) to read
as follows:

Sec.  52.440  Interstate pollutant transport provisions; What are the
FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *
    (c) Notwithstanding any provisions of paragraphs (a) and (b) of
this section and subparts AA through II and AAAA through IIII of part
97 of this chapter to the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions in paragraphs (a) and (b) of this section
relating to NOX annual or ozone season emissions shall not
be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AA through II and AAAA through
IIII of part 97 of this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
NOX allowances or CAIR NOX Ozone Season
allowances allocated for 2012 or any year thereafter.
    11. Section 52.441 is amended by designating the introductory text
as paragraph (a) and adding a new paragraph (b) to read as follows:

Sec.  52.441  Interstate pollutant transport provisions; What are the
FIP requirements for decreases in emissions of sulfur dioxide?

* * * * *
    (b) Notwithstanding any provisions of paragraph (a) of this section
and subparts AAA through III of part 97 of this chapter and any State's
SIP to the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions of paragraph (a) of this section relating to
SO2 emissions shall not be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AAA through III of part 97 of
this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
SO2 allowances allocated for 2012 or any year thereafter.

Subpart J--District of Columbia

    12. Section 52.484 is amended by adding a new paragraph (c) to read
as follows:

Sec.  52.484  Interstate pollutant transport provisions; What are the
FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *
    (c) Notwithstanding any provisions of paragraphs (a) and (b) of
this section and subparts AA through II and AAAA through IIII of part
97 of this chapter to the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions in paragraphs (a) and (b) of this section
relating to NOX annual or ozone season emissions shall not
be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AA through II and AAAA through
IIII of part 97 of this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
NOX allowances or CAIR NOX Ozone Season
allowances allocated for 2012 or any year thereafter.
    13. Section 52.485 is amended by designating the introductory text
as paragraph (a) and adding a new paragraph (b) to read as follows:

Sec.  52.485  Interstate pollutant transport provisions; What are the
FIP requirements for decreases in emissions of sulfur dioxide?

* * * * *
    (b) Notwithstanding any provisions of paragraph (a) of this section
and subparts AAA through III of part 97 of this chapter and any State's
SIP to the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions of paragraph (a) of this section relating to
SO2 emissions shall not be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AAA through III of part 97 of
this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
SO2 allowances allocated for 2012 or any year thereafter.

Subpart P--Indiana

    14. Section 52.789 is amended by adding a new paragraph (c) to read
as follows:

Sec.  52.789  Interstate pollutant transport provisions; What are the
FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *
    (c) Notwithstanding any provisions of paragraphs (a) and (b) of
this section and subparts AA through II and AAAA through IIII of part
97 of this chapter to the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions in paragraphs (a) and (b) of this section
relating to NOX annual or ozone season emissions shall not
be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AA through II and AAAA through
IIII of part 97 of this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
NOX allowances or CAIR NOX Ozone Season
allowances allocated for 2012 or any year thereafter.
    15. Section 52.790 is amended by designating the introductory text
as

paragraph (a) and adding a new paragraph (b) to read as follows:

Sec.  52.790  Interstate pollutant transport provisions; What are the
FIP requirements for decreases in emissions of sulfur dioxide?

* * * * *
    (b) Notwithstanding any provisions of paragraph (a) of this section
and subparts AAA through III of part 97 of this chapter and any State's
SIP to the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions of paragraph (a) of this section relating to
SO2 emissions shall not be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AAA through III of part 97 of
this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
SO2 allowances allocated for 2012 or any year thereafter.

Subpart T--Louisiana

    16. Section 52.984 is amended by adding a new paragraph (c) to read
as follows:

Sec.  52.984  Interstate pollutant transport provisions; What are the
FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *
    (c) Notwithstanding any provisions of paragraphs (a) and (b) of
this section and subparts AA through II and AAAA through IIII of part
97 of this chapter to the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions in paragraphs (a) and (b) of this section
relating to NOX annual or ozone season emissions shall not
be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AA through II and AAAA through
IIII of part 97 of this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
NOX allowances or CAIR NOX Ozone Season
allowances allocated for 2012 or any year thereafter.

Subpart X--Michigan

    17. Section 52.1186 is amended by adding a new paragraph (c) to
read as follows:

Sec.  52.1186  Interstate pollutant transport provisions; What are the
FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *
    (c) Notwithstanding any provisions of paragraphs (a) and (b) of
this section and subparts AA through II and AAAA through IIII of part
97 of this chapter to the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions in paragraphs (a) and (b) of this section
relating to NOX annual or ozone season emissions shall not
be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AA through II and AAAA through
IIII of part 97 of this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
NOX allowances or CAIR NOX Ozone Season
allowances allocated for 2012 or any year thereafter.
    18. Section 52.1187 is amended by designating the introductory text
as paragraph (a) and adding a new paragraph (b) to read as follows:

Sec.  52.1187  Interstate pollutant transport provisions; What are the
FIP requirements for decreases in emissions of sulfur dioxide?

* * * * *
    (b) Notwithstanding any provisions of paragraph (a) of this section
and subparts AAA through III of part 97 of this chapter and any State's
SIP to the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions of paragraph (a) of this section relating to
SO2 emissions shall not be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AAA through III of part 97 of
this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
SO2 allowances allocated for 2012 or any year thereafter.

Subpart FF--New Jersey

    19. Section 52.1584 is amended by adding a new paragraph (c) to
read as follows:

Sec.  52.1584  Interstate pollutant transport provisions; What are the
FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *
    (c) Notwithstanding any provisions of paragraphs (a) and (b) of
this section and subparts AA through II and AAAA through IIII of part
97 of this chapter to the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions in paragraphs (a) and (b) of this section
relating to NOX annual or ozone season emissions shall not
be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AA through II and AAAA through
IIII of part 97 of this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
NOX allowances or CAIR NOX Ozone Season
allowances allocated for 2012 or any year thereafter.
    20. Section 52.1185 is amended by designating the introductory text
as paragraph (a) and adding a new paragraph (b) to read as follows:

Sec.  52.1585  Interstate pollutant transport provisions; What are the
FIP requirements for decreases in emissions of sulfur dioxide?

* * * * *
    (b) Notwithstanding any provisions of paragraph (a) of this section
and subparts AAA through III of part 97 of this chapter and any State's
SIP to the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions of paragraph (a) of this section relating to
SO2 emissions shall not be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AAA through III of part 97 of
this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
SO2 allowances allocated for 2012 or any year thereafter.

Subpart RR--Tennessee

    21. Section 52.2240 is amended by adding a new paragraph (c) to
read as follows:

Sec.  52.2240  Interstate pollutant transport provisions; What are the
FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *
    (c) Notwithstanding any provisions of paragraphs (a) and (b) of
this section and subparts AA through II and AAAA through IIII of part
97 of this chapter to the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions in paragraphs (a) and (b) of this section
relating to NOX annual or ozone season emissions shall not
be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AA through II and AAAA through
IIII of part 97 of this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
NOX

allowances or CAIR NOX Ozone Season allowances allocated for
2012 or any year thereafter.
    22. Section 52.2241 is amended by designating the introductory text
as paragraph (a) and adding a new paragraph (b) to read as follows:

Sec.  52.2241  Interstate pollutant transport provisions; What are the
FIP requirements for decreases in emissions of sulfur dioxide?

* * * * *
    (b) Notwithstanding any provisions of paragraph (a) of this section
and subparts AAA through III of part 97 of this chapter and any State's
SIP to the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions of paragraph (a) of this section relating to
SO2 emissions shall not be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AAA through III of part 97 of
this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
SO2 allowances allocated for 2012 or any year thereafter.

Subpart SS--Texas

    23. Section 52.2283 is amended by adding a new paragraph (c) to
read as follows:

Sec.  52.2283  Interstate pollutant transport provisions; What are the
FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *
    (c) Notwithstanding any provisions of paragraphs (a) and (b) of
this section and subparts AA through II of part 97 of this chapter to
the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions in paragraph (a) of this section relating to
NOX annual emissions shall not be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AA through II of part 97 of
this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
NOX allowances allocated for 2012 or any year thereafter.
    24. Section 52.2284 is amended by designating the introductory text
as paragraph (a) and adding a new paragraph (b) to read as follows:

Sec.  52.2284  Interstate pollutant transport provisions; What are the
FIP requirements for decreases in emissions of sulfur dioxide?

* * * * *
    (b) Notwithstanding any provisions of paragraph (a) of this section
and subparts AAA through III of part 97 of this chapter and any State's
SIP to the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions of paragraph (a) of this section relating to
SO2 emissions shall not be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AAA through III of part 97 of
this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
SO2 allowances allocated for 2012 or any year thereafter.

Subpart YY--Wisconsin

    25. Section 52.8587 is amended by adding a new paragraph (c) to
read as follows:

Sec.  52.8587  Interstate pollutant transport provisions; What are the
FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *
    (c) Notwithstanding any provisions of paragraphs (a) and (b) of
this section and subparts AA through II and AAAA through IIII of part
97 of this chapter to the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions in paragraphs (a) and (b) of this section
relating to NOX annual or ozone season emissions shall not
be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AA through II and AAAA through
IIII of part 97 of this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
NOX allowances or CAIR NOX Ozone Season
allowances allocated for 2012 or any year thereafter.
    26. Section 52.8588 is amended by designating the introductory text
as paragraph (a) and adding a new paragraph (b) to read as follows:

Sec.  52.8588  Interstate pollutant transport provisions; What are the
FIP requirements for decreases in emissions of sulfur dioxide?

* * * * *
    (b) Notwithstanding any provisions of paragraph (a) of this section
and subparts AAA through III of part 97 of this chapter and any State's
SIP to the contrary:
    (1) With regard to any control period that begins after December
31, 2011,
    (i) The provisions of paragraph (a) of this section relating to
SO2 emissions shall not be applicable; and
    (ii) The Administrator will not carry out any of the functions set
forth for the Administrator in subparts AAA through III of part 97 of
this chapter; and
    (2) The Administrator will not deduct for excess emissions any CAIR
SO2 allowances allocated for 2012 or any year thereafter.

PART 72--[AMENDED]

    27. The authority citation for Part 72 is revised to read as
follows:

    Authority: 42 U.S.C. 7401, 7403, 7410, 7411, 7426, 7601, et seq.

Sec.  72.2  [Amended]

    28. Section 72.2 is amended by removing the definition of
``interested person''.

PART 78--[AMENDED]

    29. The authority citation for Part 78 continues to read as
follows:

    Authority: 42 U.S.C. 7401, 7403, 7410, 7411, 7426, 7601, et seq.

Sec.  78.1  [Amended]

    30. Section 78.1 is amended by adding paragraphs (b)(13) through
(b)(16) to read as follows:

Sec.  78.1  Purpose and scope.

* * * * *
    (b) * * *
    (13) Under subpart AAAAA of part 97 of this chapter,
    (i) The decision on allocation of TR NOX Annual
allowances under Sec.  97.411(a)(2) and (b) of this chapter.
    (ii) The decision on the transfer of TR NOX Annual
allowances under Sec.  97.423 of this chapter.
    (iii) The decision on the deduction of TR NOX Annual
allowances under Sec. Sec.  97.424 and 97.425 of this chapter.
    (iv) The correction of an error in an Allowance Management System
account under Sec.  97.427 of this chapter.
    (iv) The adjustment of information in a submission and the decision
on the deduction and transfer of TR NOX Annual allowances
based on the information as adjusted under Sec.  97.428 of this
chapter.
    (vi) The finalization of control period emissions data, including
retroactive adjustment based on audit.
    (vii) The approval or disapproval of a petition under Sec.  97.435
of this chapter.
    (viii) The approval or disapproval of a TR opt-in application, the
approval or disapproval of a request to withdraw, the decision on
allocation of TR NOX Annual allowances, and the decision on
the deduction of TR NOX Annual allowances under Sec. Sec.
97.441 through 97.444.
    (14) Under subpart BBBBB of part 97 of this chapter, (i) The
decision on allocation of TR NOX Ozone Season

allowances under Sec.  97.511(a)(2) and (b) of this chapter.
    (ii) The decision on the transfer of TR NOX Ozone Season
allowances under Sec.  97.523 of this chapter.
    (iii) The decision on the deduction of TR NOX Ozone
Season allowances under Sec. Sec.  97.524 and 97.525 of this chapter.
    (iv) The correction of an error in an Allowance Management System
account under Sec.  97.527 of this chapter.
    (iv) The adjustment of information in a submission and the decision
on the deduction and transfer of TR NOX Ozone Season
allowances based on the information as adjusted under Sec.  97.528 of
this chapter.
    (vi) The finalization of control period emissions data, including
retroactive adjustment based on audit.
    (vii) The approval or disapproval of a petition under Sec.  97.535
of this chapter.
    (viii) The approval or disapproval of a TR opt-in application, the
approval or disapproval of a request to withdraw, the decision on
allocation of TR NOX Ozone Season allowances, and the
decision on the deduction of TR NOX Ozone Season allowances
under Sec. Sec.  97.541 through 97.544.
    (15) Under subpart CCCCC of part 97 of this chapter,
    (i) The decision on allocation of TR SO2 Group 1
allowances under Sec.  97.611(a)(2) and (b) of this chapter.
    (ii) The decision on the transfer of TR SO2 Group 1
allowances under Sec.  97.623 of this chapter.
    (iii) The decision on the deduction of TR SO2 Group 1
allowances under Sec. Sec.  97.624 and 97.625 of this chapter.
    (iv) The correction of an error in an Allowance Management System
account under Sec.  97.627 of this chapter.
    (iv) The adjustment of information in a submission and the decision
on the deduction and transfer of TR SO2 Group 1 allowances
based on the information as adjusted under Sec.  97.628 of this
chapter.
    (vi) The finalization of control period emissions data, including
retroactive adjustment based on audit.
    (vii) The approval or disapproval of a petition under Sec.  97.635
of this chapter.
    (viii) The approval or disapproval of a TR opt-in application, the
approval or disapproval of a request to withdraw, the decision on
allocation of TR SO2 Group 1 allowances, and the decision on
the deduction of TR SO2 Group 1 allowances under Sec. Sec.
97.641 through 97.644.
    (16) Under subpart DDDDD of part 97 of this chapter,
    (i) The decision on allocation of TR SO2 Group 2
allowances under Sec.  97.711(a)(2) and (b) of this chapter.
    (ii) The decision on the transfer of TR SO2 Group 1
allowances under Sec.  97.723 of this chapter.
    (iii) The decision on the deduction of TR SO2 Group 1
allowances under Sec. Sec.  97.724 and 97.725 of this chapter.
    (iv) The correction of an error in an Allowance Management System
account under Sec.  97.727 of this chapter.
    (iv) The adjustment of information in a submission and the decision
on the deduction and transfer of TR SO2 Group 1 allowances
based on the information as adjusted under Sec.  97.728 of this
chapter.
    (vi) The finalization of control period emissions data, including
retroactive adjustment based on audit.
    (vii) The approval or disapproval of a petition under Sec.  97.735
of this chapter.
    (viii) The approval or disapproval of a TR opt-in application, the
approval or disapproval of a request to withdraw, the decision on
allocation of TR SO2 Group 2 allowances, and the decision on
the deduction of TR SO2 Group 2 allowances under Sec. Sec.
97.741 through 97.744.
* * * * *

Sec.  78.2  [Amended]

    31. Section 78.2 is revised to read as follows:

Sec.  78.2  General.

    (a) Definitions. (1) The terms used in this subpart with regard to
a decision of the Administrator that is appealed under this section
shall have the meaning as set forth in the regulations under which the
Administrator made such decision and as set forth in paragraph (a)(2)
of this section.
    (2) Interested person means, with regard to a decision of the
Administrator, any person who submitted comments, or testified at a
public hearing, pursuant to an opportunity for comment provided by the
Administrator as part of the process of making such decision, who
submitted objections pursuant to an opportunity for objections provided
by the Administrator as part of the process of making such decision, or
who submitted his or her name to the Administrator to be placed on a
list of persons interested in such decision. The Administrator may
update the list of interested persons from time to time by requesting
additional written indication of continued interest from the persons
listed and may delete from the list the name of any person failing to
respond as requested.
    (b) Availability of information. The availability to the public of
information provided to, or otherwise obtained by, the Administrator
under this subpart shall be governed by part 2 of this chapter.
    (c) Computation of time. (1) In computing any period of time
prescribed or allowed under this part, except as otherwise provided,
the day of the event from which the period begins to run shall not be
included, and Saturdays, Sundays, and federal holidays shall be
included. When the period ends on a Saturday, Sunday, or Federal
holiday, the stated period shall be extended to include the next
business day.
    (2) Where a document is served by first class mail or commercial
delivery service, but not by overnight or same-day delivery, 5 days
shall be added to the time prescribed or allowed under this part for
the filing of a responsive document or for otherwise responding.

Sec.  78.3  [Amended]

    32. Section 78.3 is amended by:
    a. In paragraphs (a)(1)(iii), (a)(3)(ii), (a)(4)(ii), (a)(5)(ii),
(a)(6)(ii), (a)(7)(ii), (a)(8)(ii), and (a)(9)(ii), adding, after the
word ``person'', the words ``with regard to the decision''.
    b. Adding paragraph (a)(10);
    c. In paragraph (b)(3)(i), removing the words ``paragraph (a)(1)
and (2)'' and adding, in their place, the words ``paragraph (a)(1),
(2), and (10)''; and
    d. Adding paragraph (d)(11) to read as follows:

Sec.  78.3  Petition for administrative review and request or
evidentiary hearing.

    (a) * * *
    (10) The following persons may petition for administrative review
of a decision of the Administrator that is made under subparts AAAAA,
BBBBB, CCCCC, and DDDDD of part 97 of this chapter:
    (i) The designated representative for a unit or source, or the
authorized account representative for any Allowance Management System
account, covered by the decision; or
    (ii) Any interested person with regard to the decision.
* * * * *
    (d) * * *
    (11) Any provision or requirement of subparts AAAAA, BBBBB, CCCCC,
or DDDDD of part 97 of this chapter, including the standard
requirements under Sec.  97.406, Sec.  97.506, Sec.  97.606, or Sec.
97.706 of this chapter and any emission monitoring or reporting
requirements.

Sec.  78.4  [Amended]

    33. Section 78.4 is amended by:
    a. Revising paragraph (a) by:
    i. Removing the first, second, third, fourth, fifth, and last
sentences;

    ii. In the sixth and seventh sentences, removing the words
``interest in'' and adding, in their place, the words ``ownership
interest with respect to''; and
    iii. Redesignating the paragraph as paragraph (a)(1)(iii); and
    b. Adding paragraphs (a)(1) introductory text, (a)(1)(i),
(a)(1)(ii) and (a)(2) to read as follows:

Sec.  78.4  Filings.

    (a)(1) All original filings made under this part shall be signed by
the person making the filing or by an attorney or authorized
representative, in accordance with the following requirements:
    (i) Any filings on behalf of owners and operators of a affected
unit or affected source, TR NOX Annual unit or TR
NOX Annual source, TR NOX Ozone Season unit or TR
NOX Ozone Season source, TR SO2 Group 1 unit or
TR SO2 Group 1 source, TR SO2 Group 2 unit or TR
SO2 Group 2 source, or a unit for which a TR opt-in
application is submitted and not withdrawn shall be signed by the
designated representative. Any filing on behalf of persons with an
ownership interest with respect to allowances, TR NOX Annual
allowances, TR NOX Ozone Season allowances, TR
SO2 Group 1 allowances, or TR SO2 Group 2
allowances in a general account shall be signed by the authorized
account representative.
    (ii) Any filings on behalf of owners and operators of a
NOX Budget unit or NOX Budget source shall be
signed by the NOX authorized account representative. Any
filing on behalf of persons with an ownership interest with respect to
NOX allowances in a general account shall be signed by the
NOX authorized account representative.
* * * * *
    (2) The name, address, e-mail address (if any), telephone number,
and facsimile number (if any) of the person making the filing shall be
provided with the filing.
* * * * *

PART 97--[AMENDED]

    34. The authority citation for part 97 continues to read as
follows:

    Authority: 42 U.S.C. 7401, 7403, 7410, 7426, 7601, and 7651, et
seq.

    35. Part 97 is amended by adding subpart AAAAA to read as follows:
Subpart AAAAA TR NOX Annual Trading Program
Sec.
97.401 Purpose.
97.402 Definitions.
97.403 Measurements, abbreviations, and acronyms.
97.404 Applicability.
97.405 Retired unit exemption.
97.406 Standard requirements.
97.407 Computation of time.
97.408 Administrative appeal procedures.
97.409 [Reserved]
97.410 State NOX Annual trading budgets, new-unit set-
asides, and variability limits.
97.411 Timing requirements for TR NOX Annual allowance
allocations.
97.412 TR NOX Annual allowance allocations for new units.
97.413 Authorization of designated representative and alternate
designated representative.
97.414 Responsibilities of designated representative and alternate
designated representative.
97.415 Changing designated representative and alternate designated
representative; changes in owners and operators.
97.416 Certificate of representation.
97.417 Objections concerning designated representative and alternate
designated representative.
97.418 Delegation by designated representative and alternate
designated representative.
97.419 [Reserved]
97.420 Establishment of Allowance Management System accounts.
97.421 Recordation of TR NOX Annual allowance
allocations.
97.422 Submission of TR NOX Annual allowance transfers.
97.423 Recordation of TR NOX Annual allowance transfers.
97.424 Compliance with TR NOX Annual emissions
limitation.
97.425 Compliance with TR NOX Annual assurance
provisions.
97.426 Banking.
97.427 Account error.
97.428 Administrator's action on submissions.
97.429 [Reserved]
97.430 General monitoring, recordkeeping, and reporting
requirements.
97.431 Initial monitoring system certification and recertification
procedures.
97.432 Monitoring system out-of-control periods.
97.433 Notifications concerning monitoring.
97.434 Recordkeeping and reporting.
97.435 Petitions for alternatives to monitoring, recordkeeping, or
reporting requirements.
97.440 General requirements for TR NOX Annual opt-in
units.
97.441 Opt-in process.
97.442 Withdrawal of TR NOX Annual opt-in unit from TR
NOX Annual Trading Program.
97.443 Change in regulatory status.
97.444 TR NOX Annual allowance allocations to TR
NOX Annual opt-in units.

Subpart AAAAA--TR NOX Annual Trading Program

Sec.  97.401  Purpose.

    This subpart sets forth the general, designated representative,
allowance, and monitoring provisions for the Transport Rule (TR)
NOX Annual Trading Program, under section 110 of the Clean
Air Act and Sec.  52.37(a) of this chapter, as a means of mitigating
interstate transport of fine particulates and nitrogen oxides.

Sec.  97.402  Definitions.

    The terms used in this subpart shall have the meanings set forth in
this section as follows:
    Acid Rain Program means a multi-state SO2 and
NOX air pollution control and emission reduction program
established by the Administrator under title IV of the Clean Air Act
and parts 72 through 78 of this chapter.
    Administrator means the Administrator of the United States
Environmental Protection Agency or the Director of the Clean Air
Markets Division (or its successor) of the United States Environmental
Protection Agency, the Administrator's duly authorized representative
under this subpart.
    Allocate or allocation means, with regard to TR NOX
Annual allowances, the determination by the Administrator of the amount
of such TR NOX Annual allowances to be initially credited to
a TR NOX Annual source or a new unit set-aside.
    Allowable NOX emission rate means, with regard to a unit, the
NOX emission rate limit that is applicable to the unit and
covers the longest averaging period not exceeding one year.
    Allowance Management System means the system by which the
Administrator records allocations, deductions, and transfers of TR
NOX Annual allowances under the TR NOX Annual
Trading Program. Such allowances are allocated, held, deducted, or
transferred only as whole allowances. The Allowance Management System
is a component of the CAMD Business System, which is the system used by
the Administrator to handle TR NOX Annual allowances and
data related to NOX emissions.
    Allowance Management System account means an account in the
Allowance Management System established by the Administrator for
purposes of recording the allocation, holding, transfer, or deduction
of TR NOX Annual allowances.
    Allowance transfer deadline means, for a control period, midnight
of March 1 (if it is a business day), or midnight of the first business
day thereafter (if March 1 is not a business day), immediately after
such control period and is the deadline by which a TR NOX
Annual allowance transfer must be submitted for recordation in a TR
NOX

Annual source's compliance account in order to be available for use in
complying with the source's TR NOX Annual emissions
limitation for such control period in accordance with Sec.  97.424.
    Alternate designated representative means, for a TR NOX
Annual source and each TR NOX Annual 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 this
subpart, to act on behalf of the designated representative in matters
pertaining to the TR NOX Annual Trading Program. If the TR
NOX Annual source is also subject to the Acid Rain Program,
TR NOX Ozone Season Trading Program, TR SO2 Group
1 Trading Program, or TR SO2 Group 2 Trading Program, then
this natural person shall be the same natural person as the alternate
designated representative as defined in Sec.  72.2 of this chapter,
Sec.  97.502, Sec.  97.602, or Sec.  97.702 respectively.
    Authorized account representative means, with regard to a general
account, the natural person who is authorized, in accordance with this
subpart, to transfer and otherwise dispose of TR NOX Annual
allowances held in the general account and, with regard to a TR
NOX Annual source's compliance account, the designated
representative of the source.
    Automated data acquisition and handling system or DAHS means the
component of the continuous emission monitoring system, or other
emissions monitoring system approved for use under this subpart,
designed to interpret and convert individual output signals from
pollutant concentration monitors, flow monitors, diluent gas monitors,
and other component parts of the monitoring system to produce a
continuous record of the measured parameters in the measurement units
required by this subpart.
    Biomass means--
    (1) Any organic material grown for the purpose of being converted
to energy;
    (2) Any organic byproduct of agriculture that can be converted into
energy; or
    (3) Any material that can be converted into energy and is
nonmerchantable for other purposes, that is segregated from other
material that is nonmerchantable for other purposes, and that is;
    (i) A forest-related organic resource, including mill residues,
precommercial thinnings, slash, brush, or byproduct from conversion of
trees to merchantable material; or
    (ii) A wood material, including pallets, crates, dunnage,
manufacturing and construction materials (other than pressure-treated,
chemically-treated, or painted wood products), and landscape or right-
of-way tree trimmings.
    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 unit means a unit in which the energy input to the
unit is first used to produce useful thermal energy, where at least
some of the reject heat from the useful thermal energy application or
process is then used for electricity production.
    Certifying official means a natural person who is:
    (1) For a corporation, a president, secretary, treasurer, or vice-
president or the corporation in charge of a principal business function
or any other person who performs similar policy or decision-making
functions for the corporation;
    (2) For a partnership or sole proprietorship, a general partner or
the proprietor respectively; or
    (3) For a local government entity or State, federal, or other
public agency, a principal executive officer or ranking elected
official.
    Clean Air Act means the Clean Air Act, 42 U.S.C. 7401, et seq.
    Coal means any solid fuel classified as anthracite, bituminous,
subbituminous, or lignite.
    Coal-derived fuel means any fuel (whether in a solid, liquid, or
gaseous state) produced by the mechanical, thermal, or chemical
processing of coal.
    Coal-fired means combusting any amount of coal or coal-derived
fuel, alone or in combination with any amount of any other fuel, during
1990 or any year thereafter.
    Cogeneration system means an integrated group, at a source, of
equipment (including a boiler, or combustion turbine, and a steam
turbine generator) designed to produce useful thermal energy for
industrial, commercial, heating, or cooling purposes and electricity
through the sequential use of energy.
    Cogeneration unit means a stationary, fossil-fuel-fired boiler or
stationary, fossil-fuel-fired combustion turbine--
    (1) Operating as part of a cogeneration system; and
    (2) Producing during the later of 1990 or the 12-month period
starting on the date that the unit first produces electricity and
during each calendar year after the later of 1990 or the calendar year
in which the unit first produces electricity--
    (i) For a topping-cycle 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 unit, useful power not less than 45
percent of total energy input;
    (3) Provided that the total energy input under paragraphs (2)(i)(B)
and (2)(ii) of this definition shall equal the unit's total energy
input from all fuel, except biomass if the unit is a boiler; and
    (4) Provided that, if a topping-cycle unit is operated as part of a
cogeneration system during a calendar year and the cogeneration system
meets on a system-wide basis the requirement in paragraph (2)(i)(B) of
this definition, the topping-cycle unit shall be deemed to meet such
requirement during that calendar year.
    Combustion turbine means an enclosed device comprising:
    (1) If the device is simple cycle, 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 device is combined cycle, the equipment described in
paragraph (1) of this definition and any associated duct burner, heat
recovery steam generator, and steam turbine.
    Commence commercial operation means, with regard to a unit:
    (1) To have begun to produce steam, gas, or other heated medium
used to generate electricity for sale or use, including test
generation, except as provided in Sec.  97.405.
    (i) For a unit that is a TR NOX Annual unit under Sec.
97.404 on the later of November 15, 1990 or the date the unit commences
commercial operation as defined in the introductory text of paragraph
(1) of this definition and that subsequently undergoes a physical
change (other than replacement of the unit by a unit at the same
source), such date shall remain the date of commencement of commercial
operation of the unit, which shall continue to be treated as the same
unit.
    (ii) For a unit that is a TR NOX Annual unit under Sec.
97.404 on the later of November 15, 1990 or the date the unit commences
commercial operation as defined in the introductory text of paragraph
(1) of this definition and that is subsequently replaced by a unit at
the same source, such date shall remain the replaced unit's date of
commencement of commercial operation, and the

replacement unit shall be treated as a separate unit with a separate
date for commencement of commercial operation as defined in paragraph
(1) or (2) of this definition as appropriate.
    (2) Notwithstanding paragraph (1) of this definition and except as
provided in Sec.  97.405, for a unit that is not a TR NOX
Annual unit under Sec.  97.404 on the later of November 15, 1990 or the
date the unit commences commercial operation as defined in introductory
text of paragraph (1) of this definition, the unit's date for
commencement of commercial operation shall be the date on which the
unit becomes a TR NOX Annual unit under Sec.  97.404.
    (i) For a unit with a date for commencement of commercial operation
as defined in the introductory text of paragraph (2) of this definition
and that subsequently undergoes a physical change (other than
replacement of the unit by a unit at the same source), such date shall
remain the date of commencement of commercial operation of the unit,
which shall continue to be treated as the same unit.
    (ii) For a unit with a date for commencement of commercial
operation as defined in the introductory text of paragraph (2) of this
definition and that is subsequently replaced by a unit at the same
source, such date shall remain the replaced unit's date of commencement
of commercial operation, and the replacement unit shall be treated as a
separate unit with a separate date for commencement of commercial
operation as defined in paragraph (1) or (2) of this definition as
appropriate.
    Commence operation means, with regard to a unit:
    (1) To have begun any mechanical, chemical, or electronic process,
including start-up of the unit's combustion chamber.
    (2) For a unit that undergoes a physical change (other than
replacement of the unit by a unit at the same source) after the date
the unit commences operation as defined in paragraph (1) of this
definition, such date shall remain the date of commencement of
operation of the unit, which shall continue to be treated as the same
unit.
    (3) For a unit that is replaced by a unit at the same source after
the date the unit commences operation as defined in paragraph (1) of
this definition, such date shall remain the replaced unit's date of
commencement of operation, and the replacement unit shall be treated as
a separate unit with a separate date for commencement of operation as
defined in paragraph (1), (2), or (3) of this definition as
appropriate.
    Common stack means a single flue through which emissions from 2 or
more units are exhausted.
    Compliance account means an Allowance Management System account,
established by the Administrator for a TR NOX Annual source
under this subpart, in which any TR NOX Annual allowance
allocations for the TR NOX Annual units at the source are
recorded and in which are held any TR NOX Annual allowances
available for use for a control period in complying with the source's
TR NOX Annual emissions limitation in accordance with Sec.
97.424 and the TR NOX Annual assurance provisions in
accordance with Sec.  97.425.
    Continuous emission monitoring system or CEMS means the equipment
required under this subpart to sample, analyze, measure, and provide,
by means of readings recorded at least once every 15 minutes and using
an automated data acquisition and handling system (DAHS), a permanent
record of NOX emissions, stack gas volumetric flow rate,
stack gas moisture content, and O2 or CO2
concentration (as applicable), in a manner consistent with part 75 of
this chapter and Sec. Sec.  97.430 through 97.435. The following
systems are the principal types of continuous emission monitoring
systems:
    (1) A flow monitoring system, consisting of a stack flow rate
monitor and an automated data acquisition and handling system and
providing a permanent, continuous record of stack gas volumetric flow
rate, in standard cubic feet per hour (scfh);
    (2) A NOX concentration monitoring system, 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 NOX 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 Sec.  75.11(b)(2)
of this chapter and providing a permanent, continuous record of the
stack gas moisture content, in percent H2O;
    (5) A CO2 monitoring system, consisting of a
CO2 pollutant concentration monitor (or an O2
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 O2 monitoring system, consisting of an
O2 concentration monitor and an automated data acquisition
and handling system and providing a permanent, continuous record of
O2, in percent O2.
    Control period means the period starting January 1 of a calendar
year, except as provided in Sec.  97.406(c)(3), and ending on December
31 of the same year, inclusive.
    Designated representative means, for a TR NOX Annual
source and each TR NOX Annual 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 this
subpart, to represent and legally bind each owner and operator in
matters pertaining to the TR NOX Annual Trading Program. If
the TR NOX Annual source is also subject to the Acid Rain
Program, TR NOX Ozone Season Trading Program, TR
SO2 Group 1 Trading Program, or TR SO2 Group 2
Trading Program, then this natural person shall be the same natural
person as the designated representative, as defined in Sec.  72.2 of
this chapter, Sec.  97.502, Sec.  97.602, or Sec.  97.702 respectively.
    Emissions means air pollutants exhausted from a unit or source into
the atmosphere, as measured, recorded, and reported to the
Administrator by the designated representative and as modified by the
Administrator in accordance with this subpart.
    Excess emissions means any ton of NOX emitted from the
TR NOX Annual units at a TR NOX Annual source
during a control period that exceeds the TR NOX Annual
emissions limitation for the source.
    Fossil fuel means--
    (1) Natural gas, petroleum, coal, or any form of solid, liquid, or
gaseous fuel derived from such material; or
    (2) For purposes of applying Sec. Sec.  97.404(b)(2)(i)(B),
97.404(b)(2)(ii)(B), and 97.404(b)(2)(iii), natural gas, petroleum,
coal, or any form of solid, liquid, or gaseous fuel derived from such
material for the purpose of creating useful heat.
    Fossil-fuel-fired means, with regard to a unit, combusting any
amount of fossil fuel in 1990 or any calendar year thereafter.
    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 an Allowance Management System account,
established under this subpart, that is not a compliance account.
    Generator means a device that produces electricity.
    Gross electrical output means, with regard to a 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 unit for a specified period of
time, the product (in mmBtu/time) of the gross calorific value of the
fuel (in mmBtu/lb) 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 designated representative and as modified by the
Administrator in accordance with this subpart and excluding the heat
derived from preheated combustion air, recirculated flue gases, or
exhaust.
    Heat input rate means 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.
    Life-of-the-unit, firm power contractual arrangement means a unit
participation power sales agreement under which a utility or industrial
customer reserves, or is entitled to receive, a specified amount or
percentage of nameplate capacity and associated energy generated by any
specified unit and pays its proportional amount of such unit's total
costs, pursuant to a contract:
    (1) For the life of the unit;
    (2) For a cumulative term of no less than 30 years, including
contracts that permit an election for early termination; or
    (3) For a period no less than 25 years or 70 percent of the
economic useful life of the unit determined as of the time the unit is
built, with option rights to purchase or release some portion of the
nameplate capacity and associated energy generated by the unit at the
end of the period.
    Maximum design heat input means the maximum amount of fuel per hour
(in Btu/hr) that a unit is capable of combusting on a steady state
basis as of the initial installation of the unit as specified by the
manufacturer of the unit.
    Monitoring system means any monitoring system that meets the
requirements of this subpart, including a continuous emission
monitoring system, an alternative monitoring system, or an excepted
monitoring system under part 75 of this chapter.
    Nameplate capacity means, starting from the initial installation of
a generator, the maximum electrical generating output (in MWe) that the
generator is capable of producing on a steady state basis and during
continuous operation (when not restricted by seasonal or other
deratings) as of such installation as specified by the manufacturer of
the generator or, starting from the completion of any subsequent
physical change in the generator resulting in an increase in the
maximum electrical generating output (in MWe) that the generator is
capable of producing on a steady state basis and during continuous
operation (when not restricted by seasonal or other deratings), such
increased maximum amount as of such completion as specified by the
person conducting the physical change.
    Newly affected TR NOX Annual unit means a unit that was not a TR
NOX Annual unit when it began operating but that thereafter
becomes a TR NOX Annual unit.
    Operate or operation means, with regard to a unit, to combust fuel.
    Operator means any person who operates, controls, or supervises a
TR NOX Annual unit or a TR NOX Annual 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, with regard to a TR NOX Annual source or a
TR NOX Annual unit at a source respectively, any of the
following persons:
    (1) Any holder of any portion of the legal or equitable title in a
TR NOX Annual unit at the source or the TR NOX
Annual unit;
    (2) Any holder of a leasehold interest in a TR NOX
Annual unit at the source or the TR NOX Annual unit,
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 TR NOX Annual unit;
    (3) Any purchaser of power from a TR NOX Annual unit at
the source or the TR NOX Annual unit under a life-of-the-
unit, firm power contractual arrangement;
    (4) Provided that, for purposes of applying the TR NOX
Annual assurance provisions in Sec. Sec.  97.406(c)(2) and 97.425, if
one or more owners (as defined in paragraphs (1) through (3) of this
definition) of one or more TR NOX Annual units in a State
are wholly owned by another, common owner, all such owners shall be
treated collectively as a single owner in the State.
    Owner's assurance level means:
    (1) With regard to a State and control period for which the State
assurance level is exceeded as described in Sec.  97.406(c)(2)(iii)(A)
and not as described in Sec.  97.406(c)(2)(iii)(B), the owner's share
of the State NOX Annual trading budget with the one-year
variability limit for the State for such control period; or
    (2) With regard to a State and control period for which the State
assurance level is exceeded as described in Sec.  97.406(c)(2)(iii)(B),
the owner's share of the State NOX Annual trading budget
with the three-year variability limit for the State for such control
period.
    Owner's share means:
    (1) With regard to a total amount of NOX emissions from
all TR NOX Annual units in a State during a control period,
the total tonnage of NOX emissions during such control
period from all of the owner's TR NOX Annual units in the
State;
    (2) With regard to a State NOX Annual trading budget
with a one-year variability limit for a control period, the amount
(rounded to the nearest allowance) equal to the total amount of TR
NOX Annual allowances allocated for such control period to
all of the owner's TR NOX Annual units in the State,
multiplied by the sum of the State NOX Annual trading budget
under Sec.  97.410(a) and the State's one-year variability limit under
Sec.  97.410(b) and divided by such State NOX Annual trading
budget;
    (3) With regard to a State NOX Annual trading budget
with a three-year variability limit for a control period, the amount
(rounded to the nearest allowance) equal to the total amount of TR
NOX Annual allowances allocated for such control period to
all of the owner's TR NOX Annual units in the State,
multiplied by the sum of the State NOX Annual trading budget
under Sec.  97.410(a) and the State's three-year variability limit
under Sec.  97.410(b) and divided by such State NOX Annual
trading budget;
    (4) Provided that, in the case of a unit with more than one owner,
the amount of tonnage of NOX emissions and of TR
NOX Annual allowances allocated for a control period, with
regard to such unit, used in determining each owner's share

shall be the amount (rounded to the nearest ton and the nearest
allowance) equal to the unit's NOX emissions and allocation
of such allowances, respectively, for such control period multiplied by
the percentage of ownership in the unit that the owner's legal,
equitable, leasehold, or contractual reservation or entitlement in the
unit comprises as of December 31 of such control period;
    (5) Provided that, where two or more units emit through a common
stack that is the monitoring location from which NOX mass
emissions are reported for a control period for a year, the amount of
tonnage of each unit's NOX emissions used in determining
each owner's share for such control period shall be:
    (i) The amount (rounded to the nearest ton) of NOX
emissions reported at the common stack multiplied by the quotient of
such unit's heat input for such control period divided by the total
heat input reported from the common stack for such control period;
    (ii) An amount determined in accordance with a methodology that the
Administrator determines is consistent with the purposes of this
definition and whose adverse effect (if any) the Administrator
determines will be de minimis; or
    (iii) An amount approved by the Administrator in response to a
petition for an alternative requirement submitted in accordance with
Sec.  97.435; and
    (6) Provided that, in the case of a unit that operates during, but
is allocated no TR NOX Annual allowances for, a control
period, the unit shall be treated, solely for purposes of this
definition, as being allocated an amount (rounded to the nearest
allowance) of TR NOX Annual allowances for such control
period equal to the lesser of--
    (i) The unit's allowable NOX emission rate (in lb per
MWe) applicable to such control period, multiplied by a capacity factor
of 0.84 (if the unit is a coal-fired boiler), 0.15 (if the unit is a
simple combustion turbine), or 0.66 (if the unit is a combined cycle
turbine), multiplied by the unit's maximum hourly load as reported in
accordance with this subpart and by 8,760 hours/control period, and
divided by 2,000 lb/ton; or
    (ii) For a unit listed in appendix A to this subpart, the sum of
the unit's NOX emissions in the control period in the last
three years during which the unit operated during the control period,
divided by three.
    Permanently retired means, with regard to a unit, a unit that is
unavailable for service and that the unit's owners and operators do not
expect to return to service in the future.
    Permitting authority means ``permitting authority'' as defined in
Sec. Sec.  70.2 and 71.2 of this chapter.
    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 Administrator,
to come into possession of a document, information, or correspondence
(whether sent in hard copy or by authorized electronic transmission),
as indicated in an official log, or by a notation made on the document,
information, or correspondence, by the Administrator in the regular
course of business.
    Recordation, record, or recorded means, with regard to TR
NOX Annual allowances, the moving of TR NOX
Annual allowances by the Administrator into, out of, or between
Allowance Management System accounts, for purposes of allocation,
transfer, or deduction.
    Reference method means any direct test method of sampling and
analyzing for an air pollutant as specified in Sec.  75.22 of this
chapter.
    Replacement, replace, or replaced means, with regard to a unit, the
demolishing of a unit, or the permanent retirement and permanent
disabling of a unit, and the construction of another unit (the
replacement unit) to be used instead of the demolished or retired unit
(the replaced unit).
    Sequential use of energy means:
    (1) For a topping-cycle unit, the use of reject heat from
electricity production in a useful thermal energy application or
process; or
    (2) For a bottoming-cycle unit, the use of reject heat from useful
thermal energy application or process in electricity production.
    Serial number means, for a TR NOX Annual allowance, the
unique identification number assigned to each TR NOX Annual
allowance by the Administrator.
    Solid waste incineration unit means a stationary, fossil-fuel-fired
boiler or stationary, fossil-fuel-fired combustion turbine that is a
``solid waste incineration unit'' as defined in section 129(g)(1) of
the Clean Air Act.
    Source means all buildings, structures, or installations located in
one or more contiguous or adjacent properties under common control of
the same person or persons. This definition does not change or
otherwise affect the definition of ``major source,'' ``stationary
source,'' or ``source'' as set forth and implemented in a title V
operating permit program or any other program under the Clean Air Act.
    State means one of the States or the District of Columbia that is
subject to the TR NOX Annual Trading Program pursuant to
Sec.  52.37(a) of this chapter.
    Submit or serve means to send or transmit a document, information,
or correspondence to the person specified in accordance with the
applicable regulation:
    (1) In person;
    (2) By United States Postal Service; or
    (3) By other means of dispatch or transmission and delivery;
    (4) Provided that compliance with any ``submission'' or ``service''
deadline shall be determined by the date of dispatch, transmission, or
mailing and not the date of receipt.
    Topping-cycle unit means a unit in which the energy input to the
unit is first used to produce useful power, including electricity,
where at least some of the reject heat from the electricity production
is then used to provide useful thermal energy.
    Total energy input means total energy of all forms supplied to a
unit, excluding energy produced by the unit. Each form of energy
supplied shall be measured by the lower heating value of that form of
energy calculated as follows:

LHV = HHV - 10.55(W + 9H)

Where:
LHV = lower heating value of the form of energy in Btu/lb,
HHV = higher heating value of the form of energy in Btu/lb,
W = weight % of moisture in the form of energy, and
H = weight % of hydrogen in the form of energy.

    Total energy output means the sum of useful power and useful
thermal energy produced by the unit.
    TR NOX Annual allowance means a limited authorization issued and
allocated by the Administrator under this subpart to emit one ton of
NOX during a control period of the specified calendar year
for which the authorization is allocated or of any calendar year
thereafter under the TR NOX Annual Program.
    TR NOX Annual allowance deduction or deduct TR NOX Annual
allowances means the permanent withdrawal of TR NOX Annual
allowances by the Administrator from a compliance account, e.g., in
order to account for compliance with the TR NOX Annual
emissions limitation or assurance provisions.
    TR NOX Annual allowances held or hold TR NOX Annual allowances
means the TR NOX Annual allowances treated

as included in an Allowance Management System account as of a specified
point in time because at that time they:
    (1) Have been recorded by the Administrator in the account or
transferred into the account by a correctly submitted, but not yet
recorded, TR NOX Annual allowance transfer in accordance
with this subpart; and
    (2) Have not been transferred out of the account by a correctly
submitted, but not yet recorded, TR NOX Annual allowance
transfer in accordance with this subpart.
    TR NOX Annual Trading Program means a multi-state NOX
air pollution control and emission reduction program established by the
Administrator in accordance with this subpart and 52.37(a) of this
chapter, as a means of mitigating interstate transport of fine
particulates and NOX.
    TR NOX Annual emissions limitation means, for a TR NOX
Annual source, the tonnage of NOX emissions authorized in a
control period by the TR NOX Annual allowances available for
deduction for the source under Sec.  97.424(a) for such control period.
    TR NOX Annual source means a source that includes one or more TR
NOX Annual units.
    TR NOX Annual unit means a unit that is subject to the TR
NOX Annual Trading Program under Sec.  97.404.
    TR NOX Ozone Season Trading Program means a multi-state
NOX air pollution control and emission reduction program
established by the Administrator in accordance with subpart BBBBB of
this part and 52.37(b) of this chapter, as a means of mitigating
interstate transport of ozone and NOX.
    TR SO2 Group 1 Trading Program means a multi-state SO2
air pollution control and emission reduction program established by the
Administrator in accordance with subpart CCCCC of this part and
52.38(b) of this chapter, as a means of mitigating interstate transport
of fine particulates and SO2.
    TR SO2 Group 2 Trading Program means a multi-state SO2
air pollution control and emission reduction program established by the
Administrator in accordance with subpart DDDDD of this part and
52.38(c) of this chapter, as a means of mitigating interstate transport
of fine particulates and SO2.
    Unit means a stationary, fossil-fuel-fired boiler, stationary,
fossil-fuel-fired combustion turbine, or other stationary, fossil-fuel-
fired combustion device.
Unit operating day means a calendar day in which a unit combusts any
fuel.
    Unit operating hour or hour of unit operation means an hour in
which a unit combusts any fuel.
    Useful power means electricity or mechanical energy that a unit
makes available for use, excluding any such energy used in the power
production process (which process includes, but is not limited to, any
on-site processing or treatment of fuel combusted at the unit and any
on-site emission controls).
    Useful thermal energy means thermal energy that is:
    (1) Made available to an industrial or commercial process (not a
power production process), excluding any heat contained in condensate
return or makeup water;
    (2) Used in a heating application (e.g., space heating or domestic
hot water heating); or
    (3) Used in a space cooling application (i.e., in an absorption
chiller).
    Utility power distribution system means the portion of an
electricity grid owned or operated by a utility and dedicated to
delivering electricity to customers.

Sec.  97.403  Measurements, abbreviations, and acronyms.

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

Btu--British thermal unit
CO2--carbon dioxide
H2O--water
hr--hour
kW--kilowatt electrical
kWh--kilowatt hour
lb--pound
mmBtu--million Btu
MWe--megawatt electrical
MWh--megawatt hour
NOX--nitrogen oxides
O2--oxygen
ppm--parts per million
scfh--standard cubic feet per hour
SO2--sulfur dioxide
yr--year

Sec.  97.404  Applicability.

    (a) Except as provided in paragraph (b) of this section:
    (1) The following units in a State shall be TR NOX
Annual units, and any source that includes one or more such units shall
be a TR NOX Annual source, subject to the requirements of
this subpart: Any stationary, fossil-fuel-fired boiler or stationary,
fossil-fuel-fired combustion turbine serving at any time, since the
later of November 15, 1990 or the start-up of the unit's combustion
chamber, a generator with nameplate capacity of more than 25 MWe
producing electricity for sale.
    (2) If a stationary boiler or stationary combustion turbine that,
under paragraph (a)(1) of this section, is not a TR NOX
Annual unit begins to combust fossil fuel or to serve a generator with
nameplate capacity of more than 25 MWe producing electricity for sale,
the unit shall become a TR NOX Annual unit as provided in
paragraph (a)(1) of this section on the first date on which it both
combusts fossil fuel and serves such generator.
    (b) Any unit in a State that otherwise is a TR NOX
Annual unit under paragraph (a) of this section and that meets the
requirements set forth in paragraph (b)(1)(i), (b)(2)(i), or (b)(2)(ii)
of this section shall not be a TR NOX Annual unit:
    (1)(i) Any unit:
    (A) Qualifying as a cogeneration unit during the later of 1990 or
the 12-month period starting on the date the unit first produces
electricity and continuing to qualify as a cogeneration unit; and
    (B) Not serving at any time, since the later of November 15, 1990
or the start-up of the unit's combustion chamber, a generator with
nameplate capacity of more than 25 MWe supplying in any calendar year
more than one-third of the unit's potential electric output capacity or
219,000 MWh, whichever is greater, to any utility power distribution
system for sale.
    (ii) If a unit qualifies as a cogeneration unit during the later of
1990 or the 12-month period starting on the date the unit first
produces electricity and meets the requirements of paragraphs (b)(1)(i)
of this section for at least one calendar year, but subsequently no
longer meets such qualification and requirements, the unit shall become
a TR NOX Annual unit starting on the earlier of January 1
after the first calendar year during which the unit first no longer
qualifies as a cogeneration unit or January 1 after the first calendar
year during which the unit no longer meets the requirements of
paragraph (b)(1)(i)(B) of this section.
    (2)(i) Any unit commencing operation before January 1, 1985:
    (A) Qualifying as a solid waste incineration unit during the later
of 1990 or the 12-month period starting on the date the unit first
produces electricity and continuing to qualify as a solid waste
incineration unit; and
    (B) With an average annual fuel consumption of fossil fuel for
1985-1987 less than 20 percent (on a Btu basis) and an average annual
fuel consumption of fossil fuel for any 3 consecutive calendar years
after 1990 less than 20 percent (on a Btu basis).
    (ii) Any unit commencing operation on or after January 1, 1985:

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

Sec.  97.405  Retired unit exemption.

    (a)(1) Any TR NOX Annual unit that is permanently
retired and is not a TR NOX Annual opt-in unit shall be
exempt from Sec.  97.406(b) and (c)(1), Sec.  97.424, and Sec. Sec.
97.430 through 97.435.
    (2) The exemption under paragraph (a)(1) of this section shall
become effective the day on which the TR NOX Annual unit is
permanently retired. Within 30 days of the unit's permanent retirement,
the designated representative shall submit a statement to the
Administrator. The statement shall state, in a format prescribed by the
Administrator, that the unit was permanently retired on a specified
date and will comply with the requirements of paragraph (b) of this
section.
    (b) Special provisions. (1) A unit exempt under paragraph (a) of
this section shall not emit any NOX, starting on the date
that the exemption takes effect.
    (2) For a period of 5 years from the date the records are created,
the owners and operators of a unit exempt under paragraph (a) of this
section shall retain, at the source that includes the unit, records
demonstrating that the unit is permanently retired. The 5-year period
for keeping records may be extended for cause, at any time before the
end of the period, in writing by the Administrator. The owners and
operators bear the burden of proof that the unit is permanently
retired.
    (3) The owners and operators and, to the extent applicable, the
designated representative of a unit exempt under paragraph (a) of this
section shall comply with the requirements of the TR NOX
Annual Trading Program concerning all periods for which the exemption
is not in effect, even if such requirements arise, or must be complied
with, after the exemption takes effect.
    (4) A unit exempt under paragraph (a) of this section shall lose
its exemption on the first date on which the unit resumes operation.
Such unit shall be treated, for purposes of applying allocation,
monitoring, reporting, and recordkeeping requirements under this
subpart, as a unit that commences commercial operation on the first
date on which the unit resumes operation.

Sec.  97.406  Standard requirements.

    (a) Designated representative requirements. The owners and
operators shall comply with the requirement to have a designated
representative, and may have an alternate designated representative, in
accordance with Sec. Sec.  97.413 through 97.418.
    (b) Emissions monitoring, reporting, and recordkeeping
requirements. (1) The owners and operators, and the designated
representative, of each TR NOX Annual source and each TR
NOX Annual unit at the source shall comply with the
monitoring, reporting, and recordkeeping requirements of Sec. Sec.
97.430 through 97.435.
    (2) The emissions data determined in accordance with Sec. Sec.
97.430 through 97.435 shall be used to calculate allocations of TR
NOX Annual allowances under Sec. Sec.  97.411(a)(2) and (b)
and 97.412 and to determine compliance with the TR NOX
Annual emissions limitation and assurance provisions under paragraph
(c) of this section, provided that, for each monitoring location from
which mass emissions are reported, the mass emissions amount used in
calculating such allocations and determining such compliance shall be
the mass emissions amount for the monitoring location determined in
accordance with Sec. Sec.  97.430 through 97.435 and rounded to the
nearest ton, with any fraction of a ton less than 0.50 being deemed to
be zero.
    (c) NOX emissions requirements. (1) TR NOX Annual
emissions limitation. (i) As of the allowance transfer deadline for a
control period, the owners and operators of each TR NOX
Annual source and each TR NOX Annual unit at the source
shall hold, in the source's compliance account, TR NOX
Annual allowances available for deduction for such control period under
Sec.  97.424(a) in an amount not less than the tons of total
NOX emissions for such control period from all TR
NOX Annual units at the source.
    (ii) If a TR NOX Annual source emits NOX
during any control period in excess of the TR NOX Annual
emissions limitation set forth in paragraph (c)(1)(i) of this section,
then:

    (A) The owners and operators of the source and each TR
NOX Annual unit at the source shall hold the TR
NOX Annual allowances required for deduction under Sec.
97.424(d) and pay any fine, penalty, or assessment or comply with any
other remedy imposed, for the same violations, under the Clean Air Act;
and
    (B) Each ton of such excess emissions and each day of such control
period shall constitute a separate violation of this subpart and the
Clean Air Act.
    (2) TR NOX Annual assurance provisions. (i) If the total
amount of NOX emissions from all TR NOX Annual
units in a State during a control period in 2014 or any year thereafter
exceeds the State assurance level as described in paragraph (c)(2)(iii)
of this section, then each owner whose share of such NOX
emissions during such control period exceeds the owner's assurance
level for the State and such control period shall hold, in a compliance
account designated by the owner in accordance with Sec.
97.425(b)(4)(ii), TR NOX Annual allowances available for
deduction for such control period under Sec.  97.425(a) in an amount
equal to the product, as determined by the Administrator in accordance
with Sec.  97.425(b), of multiplying--
    (A) The quotient (rounded to the nearest whole number) of the
amount by which the owner's share of such NOX emissions
exceeds the owner's assurance level divided by the sum of the amounts,
determined for all such owners, by which each owner's share of such
NOX emissions exceeds that owner's assurance level; and
    (B) The amount by which total NOX emissions for all TR
NOX Annual units in the State for such control period exceed
the State assurance level as determined in accordance with paragraph
(c)(2)(iii) of this section.
    (ii) The owner shall hold the TR NOX Annual allowances
required under paragraph (c)(2)(i) of this section, as of midnight of
November 1 (if it is a business day), or midnight of the first business
day thereafter (if November 1 is not a business day), immediately after
such control period.
    (iii) The total amount of NOX emissions from all TR
NOX Annual units in a State during a control period in 2014
or any year thereafter exceeds the State assurance level:
    (A) If such total amount of NOX emissions exceeds the
sum, for such control period, of the State NOX Annual
trading budget and the State's one-year variability limit under Sec.
97.410(b); or
    (B) If, with regard to a control period in 2016 or any year
thereafter, the sum, divided by three, of such total amount of
NOX emissions and the total amounts of NOX
emissions from all TR NOX Annual units in the State during
the control periods in the immediately preceding two years exceeds the
sum, for such control period, of the State NOX Annual
trading budget and the State's three-year variability limit under Sec.
97.410(b);
    (C) Provided that the amount by which such total amount of
NOX emissions exceeds the State assurance level shall be the
greater of the amounts of the exceedance calculated under paragraph
(c)(2)(iii)(A) of this section and under paragraph (c)(2)(iii)(B) of
this section.
    (iv) It shall not be a violation of this subpart or of the Clean
Air Act if the total amount of NOX emissions from all TR
NOX Annual units in a State during a control period exceeds
the State assurance level or if an owner's share of total
NOX emissions from the TR NOX Annual units in a
State during a control period exceeds the owner's assurance level.
    (v) To the extent an owner fails to hold TR NOX Annual
allowances for a control period in accordance with paragraphs (c)(2)(i)
and (ii) of this section,
    (A) The owner shall pay any fine, penalty, or assessment or comply
with any other remedy imposed under the Clean Air Act; and
    (B) Each TR NOX Annual allowance that the owner fails to
hold for a control period in accordance with paragraphs (c)(2)(i) and
(ii) of this section and each day of such control period shall
constitute a separate violation of this subpart and the Clean Air Act.
    (3) Compliance periods. A TR NOX Annual unit shall be
subject to the requirements:
    (i) Under paragraph (c)(1) of this section for the control period
starting on the later of January 1, 2012 or the deadline for meeting
the unit's monitor certification requirements under Sec.  97.430(b) and
for each control period thereafter; and
    (ii) Under paragraph (c)(2) of this section for the control period
starting on the later of January 1, 2014 or the deadline for meeting
the unit's monitor certification requirements under Sec.  97.430(b) and
for each control period thereafter.
    (4) Vintage of deducted allowances. A TR NOX Annual
allowance shall not be deducted, for compliance with the requirements
under paragraphs (c)(1) and (2) of this section, for a control period
in a calendar year before the year for which the TR NOX
Annual allowance was allocated.
    (5) Allowance Management System requirements. Each TR
NOX Annual allowance shall be held in, deducted from, or
transferred into, out of, or between Allowance Management System
accounts in accordance with this subpart.
    (6) Limited authorization. (i) A TR NOX Annual allowance
is a limited authorization to emit one ton of NOX in
accordance with the TR NOX Annual Trading Program.
    (ii) Notwithstanding any other provision of this subpart, the
Administrator has the authority to terminate or limit such
authorization to the extent the Administrator determines is necessary
or appropriate to implement any provision of the Clean Air Act.
    (7) Property right. A TR NOX Annual allowance does not
constitute a property right.
    (d) Title V Permit requirements. (1) No title V permit revision
shall be required for any allocation, holding, deduction, or transfer
of TR NOX Annual allowances in accordance with this subpart.
    (2) A description of whether a unit is required to monitor and
report NOX emissions using a continuous emission monitoring
system (under subpart H of part 75 of this chapter), an excepted
monitoring system (under appendices D and E to part 75 of this
chapter), a low mass emissions excepted monitoring methodology (under
Sec.  75.19 of this chapter), or an alternative monitoring system
(under subpart E of part 75 of this chapter) in accordance with
Sec. Sec.  97.430 through 97.435 may be added to, or changed in, a
title V permit using minor permit modification procedures in accordance
with Sec. Sec.  70.7(e)(2) and 71.7(e)(1) of this chapter, provided
that the requirements applicable to the described monitoring and
reporting (as added or changed, respectively) are already incorporated
in such permit. This paragraph explicitly provides that the addition
of, or change to, a unit's description as described in the prior
sentence is eligible for minor permit modification procedures in
accordance with Sec. Sec.  70.7(e)(2)(i)(B) and 71.7(e)(1)(i)(B) of
this chapter.
    (e) Additional recordkeeping and reporting requirements. (1) Unless
otherwise provided, the owners and operators of each TR NOX
Annual source and each TR NOX Annual unit at the source
shall keep on site at the source each of the following documents (in
hardcopy or electronic format) for a period of 5 years from the date
the document is created. This period may be extended for cause, at any
time

before the end of 5 years, in writing by the Administrator.
    (i) The certificate of representation under Sec.  97.416 for the
designated representative for the source and each TR NOX
Annual unit at the source and all documents that demonstrate the truth
of the statements in the certificate of representation; provided that
the certificate and documents shall be retained on site at the source
beyond such 5-year period until such documents are superseded because
of the submission of a new certificate of representation under Sec.
97.416 changing the designated representative.
    (ii) All emissions monitoring information, in accordance with this
subpart.
    (iii) Copies of all reports, compliance certifications, and other
submissions and all records made or required under, or to demonstrate
compliance with the requirements of, the TR NOX Annual
Trading Program, including any monitoring plans and monitoring system
certification and recertification applications.
    (2) The designated representative of a TR NOX Annual
source and each TR NOX Annual unit at the source shall make
all submissions required under the TR NOX Annual Trading
Program, including any submissions required for compliance with the TR
NOX Annual assurance provisions. This requirement does not
change, create an exemption from, or or otherwise affect the
responsible official submission requirements under a title V operating
permit program in parts 70 and 71 of this chapter.
    (f) Liability. (1) Any provision of the TR NOX Annual
Trading Program that applies to a TR NOX Annual source or
the designated representative of a TR NOX Annual source
shall also apply to the owners and operators of such source and of the
TR NOX Annual units at the source.
    (2) Any provision of the TR NOX Annual Trading Program
that applies to a TR NOX Annual unit or the designated
representative of a TR NOX Annual unit shall also apply to
the owners and operators of such unit.
    (g) Effect on other authorities. No provision of the TR
NOX Annual Trading Program or exemption under Sec.  97.405
shall be construed as exempting or excluding the owners and operators,
and the designated representative, of a TR NOX Annual source
or TR NOX Annual unit from compliance with any other
provision of the applicable, approved State implementation plan, a
federally enforceable permit, or the Clean Air Act.

Sec.  97.407  Computation of time.

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

Sec.  97.408  Administrative appeal procedures.

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

Sec.  97.409  [Reserved]

Sec.  97.410  State NOX Annual trading budgets, new-unit set-asides,
and variability limits.

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

------------------------------------------------------------------------
                                            NOX annual    New-unit  set-
                                          trading budget   aside  (tons)
                                              (tons) *   ---------------
                  State                  ----------------
                                           For 2012 and    For 2012 and
                                            thereafter      thereafter
------------------------------------------------------------------------
Alabama.................................          69,169           2,075
Connecticut.............................           2,775              83
Delaware................................           6,206             186
District of Columbia....................             170               5
Florida.................................         120,001           3,600
Georgia.................................          73,801           2,214
Illinois................................          56,040           1,681
Indiana.................................         115,687           3,471
Iowa....................................          46,068           1,382
Kansas..................................          51,321           1,540
Kentucky................................          74,117           2,224
Louisiana...............................          43,946           1,318
Maryland................................          17,044             511
Massachusetts...........................           5,960             179
Michigan................................          64,932           1,948
Minnesota...............................          41,322           1,240
Missouri................................          57,681           1,730
Nebraska................................          43,228           1,297
New Jersey..............................          11,826             355
New York................................          23,341             700
North Carolina..........................          51,800           1,554
Ohio....................................          97,313           2,919
Pennsylvania............................         113,903           3,417
South Carolina..........................          33,882           1,016
Tennessee...............................          28,362             851
Virginia................................          29,581             887
West Virginia...........................          51,990           1,560
Wisconsin...............................          44,846           1,345
¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤

    Total...............................       1,376,312          41,288
------------------------------------------------------------------------
* Without variability limits.

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

------------------------------------------------------------------------
                                             One-year       Three-year
                                            variability     variability
                                              limits          limits
                  State                  -------------------------------
                                             2014 and        2016 and
                                            thereafter      thereafter
                                              (tons)          (tons)
------------------------------------------------------------------------
Alabama.................................           6,917           3,993
Connecticut.............................           5,000           2,887
Delaware................................           5,000           2,887
District of Columbia....................           5,000           2,887
Florida.................................          12,000           6,928
Georgia.................................           7,380           4,261
Illinois................................           5,604           3,235
Indiana.................................          11,569           6,679
Iowa....................................           5,000           2,887
Kansas..................................           5,132           2,963
Kentucky................................           7,412           4,279
Louisiana...............................           5,000           2,887
Maryland................................           5,000           2,887
Massachusetts...........................           5,000           2,887
Michigan................................           6,493           3,749
Minnesota...............................           5,000           2,887
Missouri................................           5,768           3,330
Nebraska................................           5,000           2,887
New Jersey..............................           5,000           2,887
New York................................           5,000           2,887
North Carolina..........................           5,180           2,991
Ohio....................................           9,731           5,618
Pennsylvania............................          11,390           6,576
South Carolina..........................           5,000           2,887
Tennessee...............................           5,000           2,887
Virginia................................           5,000           2,887
West Virginia...........................           5,199           3,002
Wisconsin...............................           5,000           2,887
------------------------------------------------------------------------

Sec.  97.411  Timing requirements for TR NOX Annual allowance
allocations.

    (a) Existing units. (1) TR NOX Annual allowances are
allocated, for the control periods in 2012 and each year thereafter, as
set forth in appendix A to this subpart. Listing a unit in such
appendix does not constitute a determination that the unit is a TR
NOX Annual unit, and not listing a unit in such appendix
does not constitute a determination that the unit is not a TR
NOX Annual unit.
    (2) Notwithstanding paragraph (a)(1) of this section, if a unit
listed in appendix A to this subpart as being allocated TR
NOX Annual allowances does not operate, starting after 2011,
during the control period in three consecutive years, such unit will
not be allocated the TR NOX Annual allowances set forth in
appendix A to this subpart for the unit for the control periods in the
seventh year after the first such year and in each year after that
seventh year. All TR NOX Annual allowances that would
otherwise have been allocated to such unit will be allocated to the new
unit set-aside for the respective years involved. If such unit resumes
operation, the Administrator will allocate TR NOX Annual
allowances to the unit in accordance with paragraph (b) of this
section.
    (b) New units. (1) By July 1, 2012 and July 1 of each year
thereafter, the Administrator will calculate the TR NOX
Annual allowance allocation for each TR NOX Annual unit, in
accordance with Sec.  97.412, for the control period in the year of the
applicable calculation deadline under this paragraph and will
promulgate a notice of availability of the results of the calculations.
    (2) For each notice of data availability required in paragraph
(b)(1) of this section, the Administrator will provide an opportunity
for submission of objections to the calculations referenced in such
notice.
    (i) Objections shall be submitted by the deadline specified in such
notice and shall be limited to addressing whether the calculations are
in accordance with Sec.  97.412 and Sec. Sec.  97.406(b)(2) and 97.430
through 97.435.

    (ii) The Administrator will adjust the calculations to the extent
necessary to ensure that they are in accordance with the provisions
referenced in paragraph (b)(2)(i) of this section. By September 1
immediately after the promulgation of such notice, the Administrator
will promulgate a notice of availability of any adjustments that the
Administrator determines to be necessary and the reasons for accepting
or rejecting any objections submitted in accordance with paragraph
(b)(2)(i) of this section.
    (c) Units that are not TR NOX Annual units. For each control period
in 2012 and thereafter, if the Administrator determines that TR
NOX Annual allowances were allocated under paragraph (a) of
this section for the control period to a recipient that is not actually
a TR NOX Annual unit under Sec.  97.404 as of January 1,
2012 or whose deadline for meeting monitor certification requirements
under Sec.  97.430(b)(1) and (2) is after January 1, 2012 or if the
Administrator determines that TR NOX Annual allowances were
allocated under paragraph (b) of this section and Sec.  97.412 for the
control period to a recipient that is not actually a TR NOX
Annual unit under Sec.  97.404 as of January 1 of the control period,
then the Administrator will notify the designated representative and
will act in accordance with the following procedures:
    (1) Except as provided in paragraph (c)(2) or (3) of this section,
the Administrator will not record such TR NOX Annual
allowances under Sec.  97.421.
    (2) If the Administrator already recorded such TR NOX
Annual allowances under Sec.  97.421 and if the Administrator makes
such determination before making deductions for the source that
includes such recipient under Sec.  97.424(b) for such control period,
then the Administrator will deduct from the account in which such TR
NOX Annual allowances were recorded an amount of TR
NOX Annual allowances allocated for the same or a prior
control period equal to the amount of such already recorded TR
NOX Annual allowances. The authorized account representative
shall ensure that there are sufficient TR NOX Annual