( b) The serial number of each CAIR NOX allowance that is in the transferor account and is to be transferred; and ( c) The name and signature of the CAIR authorized account representative of the transferor account and the date signed.

§ 96.161 EPA recordation.

( a) Within 5 business days ( except as provided in paragraph ( b) of this section) of receiving a CAIR NOX allowance transfer,

the Administrator will record a CAIR NOX allowance transfer by DRAFT  12/ 2/ 04 moving each CAIR NOX allowance from the transferor account to the transferee account as specified by the request, provided that:

( 1) The transfer is correctly submitted under § 96.160; and ( 2) The transferor account includes each CAIR NOX allowance identified by serial number in the transfer.

( b) A CAIR NOX allowance transfer that is submitted for recordation after the allowance transfer deadline for a control period and that includes any CAIR NOX allowances allocated for any control period before such allowance transfer deadline will not be recorded until after the Administrator completes the deductions under § 96.154 for the control period immediately before such allowance transfer deadline.

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

§ 96.162 Notification.

( a) Notification of recordation. Within 5 business days of recordation of a CAIR NOX allowance transfer under § 96.161, the Administrator will notify the CAIR authorized account representatives of both the transferor and transferee accounts.

( b) Notification of non recordation. Within 10 business days of receipt of a CAIR NOX allowance transfer that fails to meet the requirements of § 96.161( a), the Administrator will notify the CAIR authorized account representatives of both DRAFT  12/ 2/ 04 accounts subject to the transfer of:

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

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

Subpart HH   Monitoring and Reporting § 96.170 General Requirements.

The owners and operators, and to the extent applicable, the CAIR designated representative, of a CAIR NOX unit, shall comply with the monitoring, recordkeeping, and reporting requirements as provided in this subpart and in subpart H of part 75 of this chapter. For purposes of complying with such requirements, the definitions in § 96.102 and in § 72.2 of this chapter shall apply, and the terms " affected unit," " designated representative," and " continuous emission monitoring system" ( or " CEMS") in part 75 of this chapter shall be deemed to refer to the terms " CAIR NOX unit," " CAIR designated representative," and " continuous emission monitoring system" ( or " CEMS") respectively,

as defined in § 96.102. The owner or operator of a unit that is not a CAIR NOX unit but that is monitored under § 75.72( b)( 2)( ii)

of this chapter shall comply with the same monitoring,

recordkeeping, and reporting requirements as a CAIR NOX unit.

( a) Requirements for installation, certification, and data DRAFT  12/ 2/ 04 accounting. The owner or operator of each CAIR NOX unit shall:

( 1) Install all monitoring systems required under this subpart for monitoring NOX mass emissions and individual unit heat input ( including all systems required to monitor NOX emission rate, NOX concentration, stack gas moisture content, stack gas flow rate, CO2 or O2 concentration, and fuel flow rate, as applicable, in accordance with § § 75.71 and 75.72 of this chapter);

( 2) Successfully complete all certification tests required under § 96.171 and meet all other requirements of this subpart and part 75 of this chapter applicable to the monitoring systems under paragraph ( a)( 1) of this section; and ( 3) Record, report, and quality assure the data from the monitoring systems under paragraph ( a)( 1) of this section.

( b) Compliance deadlines. The owner or operator shall meet the monitoring system certification and other requirements of paragraphs ( a)( 1) and ( 2) of this section on or before the following dates. The owner or operator shall record, report, and quality assure the data from the monitoring systems under paragraph ( a)( 1) of this section on and after the following dates.

( 1) For the owner or operator of a CAIR NOX unit that commences commercial operation before July 1, 2007, by January 1,

2008. DRAFT  12/ 2/ 04 ( 2) For the owner or operator of a CAIR NOX unit that commences commercial operation on or after July 1, 2007, by the later of the following dates:

( i) January 1, 2008; or ( ii) 90 unit operating days or 180 calendar days, whichever occurs first, after the date on which the unit commences commercial operation.

( 3) For the owner or operator of a CAIR NOX unit for which construction of a new stack or flue or installation of add on NOX emission controls is completed after the applicable deadline under paragraph ( b)( 1),( 2), ( 4), or ( 5) of this section, by 90 unit operating days or 180 calendar days, whichever occurs first,

after the date on which emissions first exit to the atmosphere through the new stack or flue or add on NOX emissions controls.

( 4) Notwithstanding the dates in paragraphs ( b)( 1) and ( 2)

of this section, for the owner or operator of a unit for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under subpart II of this part, by the date specified in § 96.184( b).

( 5) Notwithstanding the dates in paragraphs ( b)( 1), ( 2), and ( 4) of this section and solely for purposes of § 96.106( c)( 2),

for the owner or operator of a CAIR NOX opt in unit under subpart II of this part, by the date on which the CAIR NOX opt in unit enters the CAIR NOX Annual Trading Program as provided in § DRAFT  12/ 2/ 04 96.184( h).

( c) Reporting data.

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

the owner or operator of a CAIR NOX unit that does not meet the applicable compliance date set forth in paragraph ( b) of this section for any monitoring system under paragraph ( a)( 1) of this section shall, for each such monitoring system, determine,

record, and report maximum potential ( or, as appropriate, minimum potential) values for NOX concentration, NOX emission rate, stack gas flow rate, stack gas moisture content, fuel flow rate, and any other parameters required to determine NOX mass emissions and heat input in accordance with § 75.31( b)( 2) or ( c)( 3) of this chapter, section 2.4 of appendix D to part 75 of this chapter, or section 2.5 of appendix E to part 75 of this chapter, as applicable.

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

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

of this section shall, for each such monitoring system,

determine, record, and report substitute data using the applicable missing data procedures in subpart D or subpart H of,

or appendix D or appendix E to, part 75 of this chapter, in lieu of the maximum potential ( or, as appropriate, minimum potential)

values, for a parameter if the owner or operator demonstrates DRAFT  12/ 2/ 04 that there is continuity between the data streams for that parameter before and after the construction or installation under paragraph ( b)( 3) of this section.

( d) Prohibitions ( 1) No owner or operator of a CAIR NOX unit shall use any alternative monitoring system, alternative reference method, or any other alternative to any requirement of this subpart without having obtained prior written approval in accordance with § 96.175.

( 2) No owner or operator of a CAIR NOX unit shall operate the unit so as to discharge, or allow to be discharged, NOX emissions to the atmosphere without accounting for all such emissions in accordance with the applicable provisions of this subpart and part 75 of this chapter.

( 3) No owner or operator of a CAIR NOX unit shall disrupt the continuous emission monitoring system, any portion thereof, or any other approved emission monitoring method, and thereby avoid monitoring and recording NOX mass emissions discharged into the atmosphere, except for periods of recertification or periods when calibration, quality assurance testing, or maintenance is performed in accordance with the applicable provisions of this subpart and part 75 of this chapter.

( 4) No owner or operator of a CAIR NOX unit shall retire or permanently discontinue use of the continuous emission monitoring DRAFT  12/ 2/ 04 system, any component thereof, or any other approved monitoring system under this subpart, except under any one of the following circumstances:

( i) During the period that the unit is covered by an exemption under § 96.105 that is in effect;

( ii) The owner or operator is monitoring emissions from the unit with another certified monitoring system approved, in accordance with the applicable provisions of this subpart and part 75 of this chapter, by the permitting authority for use at that unit that provides emission data for the same pollutant or parameter as the retired or discontinued monitoring system; or ( iii) The CAIR designated representative submits notification of the date of certification testing of a replacement monitoring system for the retired or discontinued monitoring system in accordance with § 96.171( d)( 3)( i).

§ 96.171 Initial certification and recertification procedures.

( a) The owner or operator of a CAIR NOX unit shall be exempt from the initial certification requirements of this section for a monitoring system under § 96.170( a)( 1) if the following conditions are met:

( 1) The monitoring system has been previously certified in accordance with part 75 of this chapter; and ( 2) The applicable quality assurance and quality control requirements of § 75.21 of this chapter and appendix B, appendix DRAFT  12/ 2/ 04 D, and appendix E to part 75 of this chapter are fully met for the certified monitoring system described in paragraph ( a)( 1) of this section.

( b) The recertification provisions of this section shall apply to a monitoring system under § 96.170( a)( 1) exempt from initial certification requirements under paragraph ( a) of this section.

( c) If the Administrator has previously approved a petition under § 75.17( a) or ( b) of this chapter for apportioning the NOX emission rate measured in a common stack or a petition under § 75.66 of this chapter for an alternative to a requirement in § 75.12, § 75.17, or subpart H of part 75 of this chapter, the CAIR designated representative shall resubmit the petition to the Administrator under § 96.175( a) to determine whether the approval applies under the CAIR NOX Annual Trading Program.

( d) Except as provided in paragraph ( a) of this section, the owner or operator of a CAIR NOX unit shall comply with the following initial certification and recertification procedures for a continuous monitoring system ( i. e., a continuous emission monitoring system and an excepted monitoring system under appendices D and E to part 75 of this chapter) under § 96.170( a)( 1). The owner or operator of a unit that qualifies to use the low mass emissions excepted monitoring methodology under § 75.19 of this chapter or that qualifies to use an alternative DRAFT  12/ 2/ 04 monitoring system under subpart E of part 75 of this chapter shall comply with the procedures in paragraph ( e) or ( f) of this section respectively.

( 1) Requirements for initial certification. The owner or operator shall ensure that each continuous monitoring system under § 96.170( a)( 1)( including the automated data acquisition and handling system) successfully completes all of the initial certification testing required under § 75.20 of this chapter by the applicable deadline in § 96.170( b). In addition, whenever the owner or operator installs a monitoring system to meet the requirements of this subpart in a location where no such monitoring system was previously installed, initial certification in accordance with § 75.20 of this chapter is required.

( 2) Requirements for recertification. Whenever the owner or operator makes a replacement, modification, or change in any certified continuous emission monitoring system under § 96.170( a)( 1) that may significantly affect the ability of the system to accurately measure or record NOX mass emissions or heat input rate or to meet the quality assurance and quality control requirements of § 75.21 of this chapter or appendix B to part 75 of this chapter, the owner or operator shall recertify the monitoring system in accordance with § 75.20( b) of this chapter.

Furthermore, whenever the owner or operator makes a replacement,

modification, or change to the flue gas handling system or the DRAFT  12/ 2/ 04 unit's operation that may significantly change the stack flow or concentration profile, the owner or operator shall recertify each continuous emission monitoring system whose accuracy is potentially affected by the change, in accordance with § 75.20( b)

of this chapter. Examples of changes to a continuous emission monitoring system that require recertification include replacement of the analyzer, complete replacement of an existing continuous emission monitoring system, or change in location or orientation of the sampling probe or site. Any fuel flowmeter system, and any excepted NOX monitoring system under appendix E to part 75 of this chapter, under § 96.170( a)( 1) are subject to the recertification requirements in § 75.20( g)( 6) of this chapter.

( 3) Approval process for initial certification and recertification. Paragraphs ( d)( 3)( i) through ( iv) of this section apply to both initial certification and recertification of a continuous monitoring system under § 96.170( a)( 1). For recertifications, replace the words " certification" and " initial certification" with the word " recertification", replace the word " certified" with the word " recertified," and follow the procedures in § § 75.20( b)( 5) and ( g)( 7) of this chapter in lieu of the procedures in paragraph ( d)( 3)( v) of this section.

( i) Notification of certification. The CAIR designated representative shall submit to the permitting authority, the appropriate EPA Regional Office, and the Administrator written DRAFT  12/ 2/ 04 notice of the dates of certification testing, in accordance with § 96.173.

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

( iii) Provisional certification date. The provisional certification date for a monitoring system shall be determined in accordance with § 75.20( a)( 3) of this chapter. A provisionally certified monitoring system may be used under the CAIR NOX Annual Trading Program for a period not to exceed 120 days after receipt by the permitting authority of the complete certification application for the monitoring system under paragraph ( d)( 3)( ii)

of this section. Data measured and recorded by the provisionally certified monitoring system, in accordance with the requirements of part 75 of this chapter, will be considered valid qualityassured data ( retroactive to the date and time of provisional certification), provided that the permitting authority does not invalidate the provisional certification by issuing a notice of disapproval within 120 days of the date of receipt of the complete certification application by the permitting authority.

( iv) Certification application approval process. The permitting authority will issue a written notice of approval or DRAFT  12/ 2/ 04 disapproval of the certification application to the owner or operator within 120 days of receipt of the complete certification application under paragraph ( d)( 3)( ii) of this section. In the event the permitting authority does not issue such a notice within such 120 day period, each monitoring system that meets the applicable performance requirements of part 75 of this chapter and is included in the certification application will be deemed certified for use under the CAIR NOX Annual Trading Program.

( A) Approval notice. If the certification application is complete and shows that each monitoring system meets the applicable performance requirements of part 75 of this chapter,

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

( B) Incomplete application notice. If the certification application is not complete, then the permitting authority will issue a written notice of incompleteness that sets a reasonable date by which the CAIR designated representative must submit the additional information required to complete the certification application. If the CAIR designated representative does not comply with the notice of incompleteness by the specified date,

then the permitting authority may issue a notice of disapproval under paragraph ( d)( 3)( iv)( C) of this section. The 120 day review period shall not begin before receipt of a complete DRAFT  12/ 2/ 04 certification application.

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

( D) Audit decertification. The permitting authority or, for a CAIR NOX opt in unit or a unit for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under subpart II of this part,

the Administrator may issue a notice of disapproval of the certification status of a monitor in accordance with § 96.172( b).

( v) Procedures for loss of certification. If the permitting DRAFT  12/ 2/ 04 authority or the Administrator issues a notice of disapproval of a certification application under paragraph ( d)( 3)( iv)( C) of this section or a notice of disapproval of certification status under paragraph ( d)( 3)( iv)( D) of this section, then:

( A) The owner or operator shall substitute the following values, for each disapproved monitoring system, for each hour of unit operation during the period of invalid data specified under § 75.20( a)( 4)( iii), § 75.20( b)( 5), § 75.20( g)( 7), or § 75.21( e)

of this chapter and continuing until the applicable date and hour specified under § 75.20( a)( 5)( i) or ( g)( 7) of this chapter:

( 1) For a disapproved NOX emission rate ( i. e., NOX diluent)

system, the maximum potential NOX emission rate, as defined in § 72.2 of this chapter.

( 2) For a disapproved NOX pollutant concentration monitor and disapproved flow monitor, respectively, the maximum potential concentration of NOX and the maximum potential flow rate, as defined in sections <IP_ADDRESS> and <IP_ADDRESS> of appendix A to part 75 of this chapter.

( 3) For a disapproved moisture monitoring system and disapproved diluent gas monitoring system, respectively, the minimum potential moisture percentage and either the maximum potential CO2 concentration or the minimum potential O2 concentration ( as applicable), as defined in sections <IP_ADDRESS>,

and <IP_ADDRESS>, and 2.1.5 of appendix A to part 75 of this chapter. DRAFT  12/ 2/ 04 ( 4) For a disapproved fuel flowmeter system, the maximum potential fuel flow rate, as defined in section <IP_ADDRESS> of appendix D to part 75 of this chapter.

( 5) For a disapproved excepted NOX monitoring system under appendix E to part 75 of this chapter, the fuel specific maximum potential NOX emission rate, as defined in § 72.2 of this chapter.

( B) The CAIR designated representative shall submit a notification of certification retest dates and a new certification application in accordance with paragraphs ( d)( 3)( i)

and ( ii) of this section.

( C) The owner or operator shall repeat all certification tests or other requirements that were failed by the monitoring system, as indicated in the permitting authority's or the Administrator's notice of disapproval, no later than 30 unit operating days after the date of issuance of the notice of disapproval.

( e) Initial certification and recertification procedures for units using the low mass emission excepted methodology under § 75.19 of this chapter. The owner or operator of a unit qualified to use the low mass emissions ( LME) excepted methodology under § 75.19 of this chapter shall meet the applicable certification and recertification requirements in § § 75.19( a)( 2) and 75.20( h) of this chapter. If the owner or operator of such a unit elects to certify a fuel flowmeter system for heat input determination, the DRAFT  12/ 2/ 04 owner or operator shall also meet the certification and recertification requirements in § 75.20( g) of this chapter.

( f) Certification/ recertification procedures for alternative monitoring systems. The CAIR designated representative of each unit for which the owner or operator intends to use an alternative monitoring system approved by the Administrator and,

if applicable, the permitting authority under subpart E of part 75 of this chapter shall comply with the applicable notification and application procedures of § 75.20( f) of this chapter.

§ 96.172 Out of control periods.

( a) Whenever any monitoring system fails to meet the quality assurance and quality control requirements or data validation requirements of part 75 of this chapter, data shall be substituted using the applicable missing data procedures in subpart D or subpart H of, or appendix D or appendix E to, part 75 of this chapter.

( b) Audit decertification. Whenever both an audit of a monitoring system and a review of the initial certification or recertification application reveal that any monitoring system should not have been certified or recertified because it did not meet a particular performance specification or other requirement under § 96.171 or the applicable provisions of part 75 of this chapter, both at the time of the initial certification or recertification application submission and at the time of the DRAFT  12/ 2/ 04 audit, the permitting authority or, for a CAIR NOX opt in unit or a unit for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under subpart II of this part, the Administrator will issue a notice of disapproval of the certification status of such monitoring system. For the purposes of this paragraph, an audit shall be either a field audit or an audit of any information submitted to the permitting authority or the Administrator. By issuing the notice of disapproval, the permitting authority or the Administrator revokes prospectively the certification status of the monitoring system. The data measured and recorded by the monitoring system shall not be considered valid quality assured data from the date of issuance of the notification of the revoked certification status until the date and time that the owner or operator completes subsequently approved initial certification or recertification tests for the monitoring system. The owner or operator shall follow the applicable initial certification or recertification procedures in § 96.171 for each disapproved monitoring system.

§ 96.173 Notifications.

The CAIR designated representative for a CAIR NOX unit shall submit written notice to the permitting authority and the Administrator in accordance with § 75.61 of this chapter, except that if the unit is not subject to an Acid Rain emissions DRAFT  12/ 2/ 04 limitation, the notification is only required to be sent to the permitting authority.

§ 96.174 Recordkeeping and reporting.

( a) General provisions. The CAIR designated representative shall comply with all recordkeeping and reporting requirements in this section, the applicable recordkeeping and reporting requirements under § 75.73 of this chapter, and the requirements of § 96.110( e)( 1).

( b) Monitoring Plans. The owner or operator of a CAIR NOX unit shall comply with requirements of § 75.73( c) and ( e) of this chapter and, for a unit for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under subpart II of this part,

§ § 96.183 and 96.184( a).

( c) Certification Applications. The CAIR designated representative shall submit an application to the permitting authority within 45 days after completing all initial certification or recertification tests required under § 96.171,

including the information required under § 75.63 of this chapter.

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

( 1) The CAIR designated representative shall report the NOX mass emissions data and heat input data for the CAIR NOX unit, in an electronic quarterly report in a format prescribed by the DRAFT  12/ 2/ 04 Administrator, for each calendar quarter beginning with:

( i) For a unit that commences commercial operation before July 1, 2007, the calendar quarter covering January 1, 2008 through March 31, 2008; or ( ii) For a unit that commences commercial operation on or after July 1, 2007, the calendar quarter corresponding to the earlier of the date of provisional certification or the applicable deadline for initial certification under § 96.170( b),

unless that quarter is the third or fourth quarter of 2007, in which case reporting shall commence in the quarter covering January 1, 2008 through March 31, 2008.

( 2) The CAIR designated representative shall submit each quarterly report to the Administrator within 30 days following the end of the calendar quarter covered by the report. Quarterly reports shall be submitted in the manner specified in § 75.73( f)

of this chapter.

( 3) For CAIR NOX units that are also subject to an Acid Rain emissions limitation or the CAIR NOX Ozone Season Trading Program or CAIR SO2 Trading Program, quarterly reports shall include the applicable data and information required by subparts F through H of part 75 of this chapter as applicable, in addition to the NOX mass emission data, heat input data, and other information required by this subpart.

( e) Compliance certification. The CAIR designated DRAFT  12/ 2/ 04 representative shall submit to the Administrator a compliance certification ( in a format prescribed by the Administrator) in support of each quarterly report based on reasonable inquiry of those persons with primary responsibility for ensuring that all of the unit's emissions are correctly and fully monitored. The certification shall state that:

( 1) The monitoring data submitted were recorded in accordance with the applicable requirements of this subpart and part 75 of this chapter, including the quality assurance procedures and specifications; and ( 2) For a unit with add on NOX emission controls and for all hours where NOX data are substituted in accordance with § 75.34( a)( 1) of this chapter, the add on emission controls were operating within the range of parameters listed in the quality assurance/ quality control program under appendix B to part 75 of this chapter and the substitute data values do not systematically underestimate NOX emissions.

§ 96.175 Petitions.

( a) Except as provided in paragraph ( b)( 2) of this section,

the CAIR designated representative of a CAIR NOX unit that is subject to an Acid Rain emissions limitation may submit a petition under § 75.66 of this chapter to the Administrator requesting approval to apply an alternative to any requirement of this subpart. Application of an alternative to any requirement DRAFT  12/ 2/ 04 of this subpart is in accordance with this subpart only to the extent that the petition is approved in writing by the Administrator, in consultation with the permitting authority.

( b)( 1) The CAIR designated representative of a CAIR NOX unit that is not subject to an Acid Rain emissions limitation may submit a petition under § 75.66 of this chapter to the permitting authority and the Administrator requesting approval to apply an alternative to any requirement of this subpart. Application of an alternative to any requirement of this subpart is in accordance with this subpart only to the extent that the petition is approved in writing by both the permitting authority and the Administrator.

( 2) The CAIR designated representative of a CAIR NOX unit that is subject to an Acid Rain emissions limitation may submit a petition under § 75.66 of this chapter to the permitting authority and the Administrator requesting approval to apply an alternative to a requirement concerning any additional continuous emission monitoring system required under § 75.72 of this chapter. Application of an alternative to any such requirement is in accordance with this subpart only to the extent that the petition is approved in writing by both the permitting authority and the Administrator.

§ 96.176 Additional Requirements to Provide Heat Input Data.

The owner or operator of a CAIR NOX unit that monitors and DRAFT  12/ 2/ 04 reports NOX mass emissions using a NOX concentration system and a flow system shall also monitor and report heat input rate at the unit level using the procedures set forth in part 75 of this chapter.

Subpart II  CAIR NOX Opt in Units § 96.180 Applicability.

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

( a) Is located in the State;

( b) Is not a CAIR NOX unit under § 96.104 and is not covered by a retired unit exemption under § 96.105 that is in effect;

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

( d) Has or is required or qualified to have a title V operating permit or other federally enforceable permit; and ( e) Vents all of its emissions to a stack and can meet the monitoring, recordkeeping, and reporting requirements of subpart HH of this part.

§ 96.181 General.

( a) Except as otherwise provided in § § 96.101 through 96.104, § § 96.106 through 96.108, and subparts BB and CC and subparts FF through HH of this part, a CAIR NOX opt in unit shall be treated as a CAIR NOX unit for purposes of applying such sections and subparts of this part.

( b) Solely for purposes of applying, as provided in this DRAFT  12/ 2/ 04 subpart, the requirements of subpart HH of this part to a unit for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under this subpart, such unit shall be treated as a CAIR NOX unit before issuance of a CAIR opt in permit for such unit.

§ 96.182 CAIR designated representative.

Any CAIR NOX opt in unit, and any unit for which a CAIR optin permit application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under this subpart,

located at the same source as one or more CAIR NOX units shall have the same CAIR designated representative and alternate CAIR designated representative as such CAIR NOX units.

§ 96.183 Applying for CAIR opt in permit.

( a) Applying for initial CAIR opt in permit. The CAIR designated representative of a unit meeting the requirements for a CAIR NOX opt in unit in § 96.180 may apply for an initial CAIR opt in permit at any time, except as provided under § 96.186( f)

and ( g), and, in order to apply, must submit the following:

( 1) A complete CAIR permit application under § 96.122;

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

( i) Is not a CAIR NOX unit under § 96.104 and is not covered by a retired unit exemption under § 96.105 that is in effect;

( ii) Is not covered by a retired unit exemption under § 72.8 DRAFT  12/ 2/ 04 of this chapter that is in effect;

( iii) Vents all of its emissions to a stack, and ( iv) Has documented heat input for more than 876 hours during the 6 months immediately preceding submission of the CAIR permit application under § 96.122;

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

( 4) A complete certificate of representation under § 96.113 consistent with § 96.182, if no CAIR designated representative has been previously designated for the source that includes the unit; and ( 5) A statement, in a format specified by the permitting authority, whether the CAIR designated representative requests that the unit be allocated CAIR NOX allowances under § 96.188( c)

( subject to the conditions in § § 96.184( h) and 96.186( g)).

( b) Duty to reapply. ( 1) The CAIR designated representative of a CAIR NOX opt in unit shall submit a complete CAIR permit application under § 96.122 to renew the CAIR opt in unit permit in accordance with the permitting authority's regulations for title V operating permits, or the permitting authority's regulations for other federally enforceable permits if applicable, addressing permit renewal.

( 2) Unless the permitting authority issues a notification of acceptance of withdrawal of the CAIR opt in unit from the CAIR NOX DRAFT  12/ 2/ 04 Annual Trading Program in accordance with § 96.186 or the unit becomes a CAIR NOX unit under § 96.104, the CAIR NOX opt in unit shall remain subject to the requirements for a CAIR NOX opt in unit, even if the CAIR designated representative for the CAIR NOX opt in unit fails to submit a CAIR permit application that is required for renewal of the CAIR opt in permit under paragraph ( b)( 1) of this section.

§ 96.184 Opt in process.

The permitting authority will issue or deny a CAIR opt in permit for a unit for which an initial application for a CAIR opt in permit under § 96.183 is submitted in accordance with the following:

( a) Interim review of monitoring plan. The permitting authority and the Administrator will determine, on an interim basis, the sufficiency of the monitoring plan accompanying the initial application for a CAIR opt in permit under § 96.183. A monitoring plan is sufficient, for purposes of interim review, if the plan appears to contain information demonstrating that the NOX emissions rate and heat input of the unit and all other applicable parameters are monitored and reported in accordance with subpart HH of this part. A determination of sufficiency shall not be construed as acceptance or approval of the monitoring plan.

( b) Monitoring and reporting. ( 1)( i) If the permitting DRAFT  12/ 2/ 04 authority and the Administrator determine that the monitoring plan is sufficient under paragraph ( a) of this section, the owner or operator shall monitor and report the NOX emissions rate and the heat input of the unit and all other applicable parameters,

in accordance with subpart HH of this part, starting on the date of certification of the appropriate monitoring systems under subpart HH of this part and continuing until a CAIR opt in permit is denied under § 96.184( f) or, if a CAIR opt in permit is issued, the date and time when the unit is withdrawn from the CAIR NOX Annual Trading Program in accordance with § 96.186.

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

of this section shall include the entire control period immediately before the date on which the unit enters the CAIR NOX Annual Trading Program under § 96.184( g), during which period monitoring system availability must not be less than 90 percent under subpart HH of this part and the unit must be in full compliance with any applicable State or Federal emissions or emissions related requirements.

( 2) To the extent the NOX emissions rate and the heat input of the unit are monitored and reported in accordance with subpart HH of this part for one or more control periods, in addition to the control period under paragraph ( b)( 1)( ii) of this section,

during which control periods monitoring system availability is not less than 90 percent under subpart HH of this part and the DRAFT  12/ 2/ 04 unit is in full compliance with any applicable State or Federal emissions or emissions related requirements and which control periods begin not more than 3 years before the unit enters the CAIR NOX Annual Trading Program under § 96.184( g), such information shall be used as provided in paragraphs ( c) and ( d)

of this section.

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

( 1) If the unit's NOX emissions rate and heat input are monitored and reported for only one control period, in accordance with paragraph ( b)( 1) of this section, the unit's total heat input ( in mmBtu) for the control period; or ( 2) If the unit's NOX emissions rate and heat input are monitored and reported for more than one control period, in accordance with paragraphs ( b)( 1) and ( 2) of this section, the average of the amounts of the unit's total heat input ( in mmBtu)

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

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

( 1) If the unit's NOX emissions rate and heat input are monitored and reported for only one control period, in accordance with paragraph ( b)( 1) of this section, the unit's NOX emissions DRAFT  12/ 2/ 04 rate ( in lb/ mmBtu) for the control period;

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

( e) Issuance of CAIR opt in permit. After calculating the baseline heat input and the baseline NOX emissions rate for the unit under paragraphs ( c) and ( d) of this section and if the permitting authority determines that the CAIR designated representative shows that the unit meets the requirements for a CAIR NOX opt in unit in § 96.180 and meets the elements certified in § 96.183( a)( 2), the permitting authority will issue a CAIR opt in permit. The permitting authority will provide a copy of DRAFT  12/ 2/ 04 the CAIR opt in permit to the Administrator, who will then establish a compliance account for the source that includes the CAIR NOX opt in unit unless the source already has a compliance account.

( f) Issuance of denial of CAIR opt in permit.

Notwithstanding paragraphs ( a) through ( e) of this section, if at any time before issuance of a CAIR opt in permit for the unit,

the permitting authority determines that the CAIR designated representative fails to show that the unit meets the requirements for a CAIR NOX opt in unit in § 96.180 or meets the elements certified in § 96.183( a)( 2), the permitting authority will issue a denial of a CAIR NOX opt in permit for the unit.

( g) Date of entry into CAIR NOX Annual Trading Program. A unit for which an initial CAIR opt in permit is issued by the permitting authority shall become a CAIR NOX opt in unit, and a CAIR NOX unit, as of the later of January 1, 2009 or January 1 of the first control period during which such CAIR opt in permit is issued.

( h) Repowered CAIR NOX opt in unit. ( 1) If CAIR designated representative requests, and the permitting authority issues a CAIR opt in permit providing for, allocation to a CAIR NOX opt in unit of CAIR NOX allowances under § 96.188( c) and such unit is repowered after its date of entry into the CAIR NOX Annual Trading Program under paragraph ( g) of this section, the repowered unit DRAFT  12/ 2/ 04 shall be treated as a CAIR NOX opt in unit replacing the original CAIR NOX opt in unit, as of the date of start up of the repowered unit's combustion chamber.

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

as of the date of start up under paragraph ( h)( 1) of this section, the repowered unit shall be deemed to have the same date of commencement of operation, date of commencement of commercial operation, baseline heat input, and baseline NOX emission rate as the original CAIR NOX opt in unit, and the original CAIR NOX optin unit shall no longer be treated as a CAIR opt in unit or a CAIR NOX unit.

§ 96.185 CAIR opt in permit contents.

( a) Each CAIR opt in permit will contain:

( 1) All elements required for a complete CAIR permit application under § 96.122;

( 2) The certification in § 96.183( a)( 2);

( 3) The unit's baseline heat input under § 96.184( c);

( 4) The unit's baseline NOX emission rate under § 96.184( d);

( 5) A statement whether the unit is to be allocated CAIR NOX allowances under § 96.188( c) ( subject to the conditions in § § 96.184( h) and 96.186( g));

( 6) A statement that the unit may withdraw from the CAIR NOX Annual Trading Program only in accordance with § 96.186; and ( 7) A statement that the unit is subject to, and the owners DRAFT  12/ 2/ 04 and operators of the unit must comply with, the requirements of § 96.187.

( b) Each CAIR opt in permit is deemed to incorporate automatically the definitions of terms under § 96.102 and, upon recordation by the Administrator under subpart FF or GG of this part or this subpart, every allocation, transfer, or deduction of CAIR NOX allowances to or from the compliance account of the source that includes a CAIR NOX opt in unit covered by the CAIR opt in permit.

§ 96.186 Withdrawal from CAIR NOX Annual Trading Program.

Except as provided under paragraph ( g) of this section, a CAIR NOX opt in unit may withdraw from the CAIR NOX Annual Trading Program,

but only if the permitting authority issues a notification to the CAIR designated representative of the CAIR NOX opt in unit of the acceptance of the withdrawal of the CAIR NOX opt in unit in accordance with paragraph ( d) of this section. ( a)

Requesting withdrawal. In order to withdraw a CAIR opt in unit from the CAIR NOX Annual Trading Program, the CAIR designated representative of the CAIR NOX opt in unit shall submit to the permitting authority a request to withdraw effective as of midnight of December 31 of a specified calendar year, which date must be at least 4 years after December 31 of the year of entry into the CAIR NOX Annual Trading Program under § 96.184( g). The request must be submitted no later than 90 days before the DRAFT  12/ 2/ 04 requested effective date of withdrawal.

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

( 1) For the control period ending on the date on which the withdrawal is to be effective, the source that includes the CAIR NOX opt in unit must meet the requirement to hold CAIR NOX allowances under § 96.106( c) and cannot have any excess emissions.

( 2) After the requirement for withdrawal under paragraph ( b)( 1) of this section is met, the Administrator will deduct from the compliance account of the source that includes the CAIR NOX opt in unit CAIR NOX allowances equal in number to and allocated for the same or a prior control period as any CAIR NOX allowances allocated to the CAIR NOX opt in unit under § 96.188 for any control period for which the withdrawal is to be effective. If there are no remaining CAIR NOX units at the source, the Administrator will close the compliance account, and the owners and operators of the CAIR NOX opt in unit may submit a CAIR NOX allowance transfer for any remaining CAIR NOX allowances to another CAIR NOX Allowance Tracking System in accordance with subpart GG of this part. DRAFT  12/ 2/ 04 ( c) Notification. ( 1) After the requirements for withdrawal under paragraphs ( a) and ( b) of this section are met ( including deduction of the full amount of CAIR NOX allowances required), the permitting authority will issue a notification to the CAIR designated representative of the CAIR NOX opt in unit of the acceptance of the withdrawal of the CAIR NOX opt in unit as of midnight on December 31 of the calendar year for which the withdrawal was requested.

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

and ( b) of this section are not met, the permitting authority will issue a notification to the CAIR designated representative of the CAIR NOX opt in unit that the CAIR NOX opt in unit's request to withdraw is denied. Such CAIR NOX opt in unit shall continue to be a CAIR NOX opt in unit.

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

The unit shall continue to be a CAIR NOX opt in unit until the effective date of the termination and shall comply with all requirements under the CAIR NOX Annual Trading Program concerning any control periods for which the unit is a CAIR NOX opt in unit, DRAFT  12/ 2/ 04 even if such requirements arise or must be complied with after the withdrawal takes effect.

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

( f) Ability to reapply to the CAIR NOX Annual Trading Program. Once a CAIR NOX opt in unit withdraws from the CAIR NOX Annual Trading Program and its CAIR opt in permit is terminated under this section, the CAIR designated representative may not submit another application for a CAIR opt in permit under § 96.183 for such CAIR NOX opt in unit before the date that is 4 years after the date on which the withdrawal became effective.

Such new application for a CAIR opt in permit will be treated as an initial application for a CAIR opt in permit under § 96.184.

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

through ( f) of this section, a CAIR NOX opt in unit shall not be eligible to withdraw from the CAIR NOX Annual Trading Program if the CAIR designated representative of the CAIR NOX opt in unit requests, and the permitting authority issues a CAIR NOX opt in permit providing for, allocation to the CAIR NOX opt in unit of CAIR NOX allowances under § 96.188( c).

§ 96.187 Change in regulatory status. DRAFT  12/ 2/ 04 ( a) Notification. If a CAIR NOX opt in unit becomes a CAIR NOX unit under § 96.104, then the CAIR designated representative shall notify in writing the permitting authority and the Administrator of such change in the CAIR NOX opt in unit's regulatory status, within 30 days of such change.

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

( 1) If a CAIR NOX opt in unit becomes a CAIR NOX unit under § 96.104, the permitting authority will revise the CAIR NOX opt in unit's CAIR opt in permit to meet the requirements of a CAIR permit under § 96.123 as of the date on which the CAIR NOX opt in unit becomes a CAIR NOX unit under § 96.104.

( 2)( i) The Administrator will deduct from the compliance account of the source that includes the CAIR NOX opt in unit that becomes a CAIR NOX unit under § 96.104, CAIR NOX allowances equal in number to and allocated for the same or a prior control period as:

( A) Any CAIR NOX allowances allocated to the CAIR NOX opt in unit under § 96.188 for any control period after the date on which the CAIR NOX opt in unit becomes a CAIR NOX unit under § 96.104; and ( B) If the date on which the CAIR NOX opt in unit becomes a CAIR NOX unit under § 96.104 is not December 31, the CAIR NOX allowances allocated to the CAIR NOX opt in unit under § 96.188 for the control period that includes the date on which the CAIR DRAFT  12/ 2/ 04 NOX opt in unit becomes a CAIR NOX unit under § 96.104, multiplied by the ratio of the number of days, in the control period,

starting with the date on which the CAIR NOX opt in unit becomes a CAIR NOX unit under § 96.104 divided by the total number of days in the control period and rounded to the nearest whole allowance as appropriate.

( ii) The CAIR designated representative shall ensure that the compliance account of the source that includes the CAIR NOX unit that becomes a CAIR NOX unit under § 96.104 contains the CAIR NOX allowances necessary for completion of the deduction under paragraph ( b)( 2)( i) of this section.

( 3)( i) For every control period after the date on which the CAIR NOX opt in unit becomes a CAIR NOX unit under § 96.104, the CAIR NOX opt in unit will be treated, solely for purposes of CAIR NOX allowance allocations under § 96.142, as a unit that commences operation on the date on which the CAIR NOX opt in unit becomes a CAIR NOX unit under § 96.104 and will be allocated CAIR NOX allowances under § 96.142.

( ii) Notwithstanding paragraph ( b)( 3)( i) of this section, if the date on which the CAIR NOX opt in unit becomes a CAIR NOX unit under § 96.104 is not January 1, the following number of CAIR NOX allowances will be allocated to the CAIR NOX opt in unit ( as a CAIR NOX unit) under § 96.142 for the control period that includes the date on which the CAIR NOX opt in unit becomes a CAIR NOX unit DRAFT  12/ 2/ 04 under § 96.104:

( A) The number of CAIR NOX allowances otherwise allocated to the CAIR NOX opt in unit ( as a CAIR NOX unit) under § 96.142 for the control period multiplied by;

( B) The ratio of the number of days, in the control period,

starting with the date on which the CAIR NOX opt in unit becomes a CAIR NOX unit under § 96.104, divided by the total number of days in the control period; and ( C) Rounded to the nearest whole allowance as appropriate.

§ 96.188 CAIR NOX allowance allocations to opt in units.

( a) Timing requirements. ( 1) When the CAIR opt in permit is issued under § 96.184( e), the permitting authority will allocate CAIR NOX allowances to the CAIR NOX opt in unit, and submit to the Administrator the allocation for the control period in which a CAIR NOX opt in unit enters the CAIR NOX Annual Trading Program under § 96.184( g), in accordance with paragraph ( b) or ( c) of this section.

( 2) By no later than October 31 after the control period in which a CAIR opt in unit enters the CAIR NOX Annual Trading Program under § 96.184( g), and October 31 of each year thereafter, the permitting authority will allocate CAIR NOX allowances to the CAIR NOX opt in unit, and submit to the Administrator the allocation for the control period that includes such submission deadline and in which the unit is a CAIR NOX opt DRAFT  12/ 2/ 04 in unit, in accordance with paragraph ( b) or ( c) of this section.

( b) Calculation of allocation. For each control period for which a CAIR NOX opt in unit is to be allocated CAIR NOX allowances, the permitting authority will allocate in accordance with the following procedures:

( 1) The heat input ( in mmBtu) used for calculating the CAIR NOX allowance allocation will be the lesser of:

( i) The CAIR NOX opt in unit's baseline heat input determined under § 96.184( c); or ( ii) The CAIR NOX opt in unit's heat input, as determined in accordance with subpart HH of this part, for immediately prior control period, except when the allocation is being calculated for the control period in which the CAIR NOX opt in unit enters the CAIR NOX Annual Trading Program under § 96.184( g).

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

( i) The CAIR NOX opt in unit's baseline NOX emissions rate ( in lb/ mmBtu) determined under § 96.184( d) and multiplied by 70 percent; or ( ii) The most stringent State or Federal NOX emissions limitation applicable to the CAIR NOX opt in unit at any time during the control period for which CAIR NOX allowances are to be allocated.

( 3) The permitting authority will allocate CAIR NOX DRAFT  12/ 2/ 04 allowances to the CAIR NOX opt in unit in an amount equaling the heat input under paragraph ( b)( 1) of this section, multiplied by the NOX emission rate under paragraph ( b)( 2) of this section,

divided by 2,000 lb/ ton, and rounded to the nearest whole allowance as appropriate.

( c) Notwithstanding paragraph ( b) of this section and if the CAIR designated representative requests, and the permitting authority issues a CAIR opt in permit providing for, allocation to a CAIR NOX opt in unit of CAIR NOX allowances under this paragraph ( subject to the conditions in § § 96.184( h) and 96.186( g)), the permitting authority will allocate to the CAIR NOX opt in unit as follows:

( 1) For each control period in 2009 through 2014 for which the CAIR NOX opt in unit is to be allocated CAIR NOX allowances,

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

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

( A) The CAIR NOX opt in unit's baseline NOX emissions rate ( in lb/ mmBtu) determined under § 96.184( d); or ( B) The most stringent State or Federal NOX emissions limitation applicable to the CAIR NOX opt in unit at any time during the control period in which the CAIR NOX opt in unit enters DRAFT  12/ 2/ 04 the CAIR NOX Annual Trading Program under § 96.184( g).

( iii) The permitting authority will allocate CAIR NOX allowances to the CAIR NOX opt in unit in an amount equaling the heat input under paragraph ( c)( 1)( i) of this section, multiplied by the NOX emission rate under paragraph ( c)( 1)( ii) of this section, divided by 2,000 lb/ ton, and rounded to the nearest whole allowance as appropriate.

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

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

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

( A) 0.12 lb/ mmBtu;

( B) The CAIR NOX opt in unit's baseline NOX emissions rate ( in lb/ mmBtu) determined under § 96.184( d); or ( C) The most stringent State or Federal NOX emissions limitation applicable to the CAIR NOX opt in unit at any time during the control period for which CAIR NOX allowances are to be allocated.

( iii) The permitting authority will allocate CAIR NOX allowances to the CAIR NOX opt in unit in an amount equaling the heat input under paragraph ( c)( 2)( i) of this section, multiplied DRAFT  12/ 2/ 04 by the NOX emission rate under paragraph ( c)( 2)( ii) of this section, divided by 2,000 lb/ ton, and rounded to the nearest whole allowance as appropriate.

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

( 2) By January 1, after the control period in which a CAIR opt in unit enters the CAIR NOX Annual Trading Program under § 96.184( g), and January 1 of each year thereafter, the Administrator will record, in the compliance account of the source that includes the CAIR NOX opt in unit, the CAIR NOX allowances allocated by the permitting authority to the CAIR NOX opt in unit under paragraph ( a)( 2) of this section.

3. Part 96 is amended by adding subparts AAA through CCC,

adding and reserving subparts DDD and EEE and adding subparts FFF through III to read as follows:

Subpart AAA   CAIR SO2 Trading Program General Provisions 96.201 Purpose.

96.202 Definitions.

96.203 Measurements, abbreviations, and acronyms.

96.204 Applicability.

96.205 Retired unit exemption. DRAFT  12/ 2/ 04 96.206 Standard requirements.

96.207 Computation of time.

96.208 Appeal Procedures.

Subpart BBB   CAIR Designated Representative for CAIR SO2 Sources 96.210 Authorization and responsibilities of CAIR designated representative.

96.211 Alternate CAIR designated representative.

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

96.213 Certificate of representation.

96.214 Objections concerning CAIR designated representative.

Subpart CCC   Permits 96.220 General CAIR SO2 Trading Program permit requirements.

96.221 Submission of CAIR permit applications.

96.222 Information requirements for CAIR permit applications.

96.223 CAIR permit contents and term.

96.224 CAIR permit revisions.

Subpart DDD   [ Reserved]

Subpart EEE   [ Reserved]

Subpart FFF   CAIR SO2 Allowance Tracking System 96.250 [ Reserved]

96.251 Establishment of accounts.

96.252 Responsibilities of CAIR authorized account representative. DRAFT  12/ 2/ 04 96.253 [ Reserved]

96.254 Compliance with CAIR SO2 emissions limitation.

96.255 Banking.

96.256 Account error.

96.257 Closing of general accounts.

Subpart GGG   CAIR SO2 Allowance Transfers 96.260 Submission of CAIR SO2 allowance transfers.

96.261 EPA recordation.

96.262 Notification.

Subpart HHH   Monitoring and Reporting 96.270 General requirements.

96.271 Initial certification and recertification procedures.

96.272 Out of control periods.

96.273 Notifications.

96.274 Recordkeeping and reporting.

96.275 Petitions.

96.276 Additional requirements to provide heat input data.

Subpart III   CAIR SO2 Opt in Units 96.280 Applicability.

96.281 General.

96.282 CAIR designated representative.

96.283 Applying for CAIR opt in permit.

96.284 Opt in process.

96.285 CAIR opt in permit contents. DRAFT  12/ 2/ 04 96.286 Withdrawal from CAIR SO2 Trading Program.

96.287 Change in regulatory status.

96.288 SO2 allowance allocations to CAIR SO2 opt in units.

Subpart AAA   CAIR SO2 Trading Program General Provisions § 96.201 Purpose.

This subpart and subparts BBB through III establish the model rule comprising general provisions and the designated representative, permitting, allowance, monitoring, and opt in provisions for the State Clean Air Interstate Rule ( CAIR) SO2 Trading Program, under section 110 of the Clean Air Act and § 51.124 of this chapter, as a means of mitigating interstate transport of fine particulates and sulfur dioxide. The owner or operator of a unit or a source shall comply with the requirements of this subpart and subparts BBB through III as a matter of federal law only if the State with jurisdiction over the unit and the source incorporates by reference such subparts or otherwise adopts the requirements of such subparts in accordance with § 51.124( o)( 1) or ( 2) of this chapter, the State submits to the Administrator one or more revisions of the State implementation plan that include such adoption, and the Administrator approves such revisions. If the State adopts the requirements of such subparts in accordance with § 51.124( o)( 1) or ( 2) of this chapter, then the State authorizes the Administrator to assist the State in implementing the CAIR SO2 Trading Program by carrying DRAFT  12/ 2/ 04 out the functions set forth for the Administrator in such subparts.

§ 96.202 Definitions.

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

Account number means the identification number given by the Administrator to each CAIR SO2 Allowance Tracking System account.

Acid Rain emissions limitation means a limitation on emissions of sulfur dioxide or nitrogen oxides under the Acid Rain Program.

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

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

Allocate or allocation means, with regard to CAIR SO2 allowances issued under the Acid Rain Program, the determination by the Administrator of the amount of such CAIR SO2 allowances to be initially credited to a CAIR SO2 unit and, with regard to CAIR SO2 allowances issued under § 96.288, the determination by the permitting authority of the amount of such CAIR SO2 allowances to be initially credited to a CAIR SO2 unit.

Allowance transfer deadline means, for a control period, midnight DRAFT  12/ 2/ 04 of March 1, if it is a business day, or, if March 1 is not a business day, midnight of the first business day thereafter immediately following the control period and is the deadline by which a CAIR SO2 allowance transfer must be submitted for recordation in a CAIR SO2 source's compliance account in order to be used to meet the source's CAIR SO2 emissions limitation for such control period in accordance with § 96.254.

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

Automated data acquisition and handling system or DAHS means that DRAFT  12/ 2/ 04 component of the continuous emission monitoring system, or other emissions monitoring system approved for use under subpart HHH of this part, designed to interpret and convert individual output signals from pollutant concentration monitors, flow monitors,

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

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

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

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

in accordance with subparts BBB and III of this part, to transfer and otherwise dispose of CAIR SO2 allowances held in the general account and, with regard to a compliance account, the CAIR designated representative of the source.

CAIR designated representative means, for a CAIR SO2 source and each CAIR SO2 unit at the source, the natural person who is authorized by the owners and operators of the source and all such DRAFT  12/ 2/ 04 units at the source, in accordance with subparts BBB and III of this part, to represent and legally bind each owner and operator in matters pertaining to the CAIR SO2 Trading Program. If the CAIR SO2 source is also a CAIR NOX source, then this natural person shall be the same person as the CAIR designated representative under the CAIR NOX Annual Trading Program. If the CAIR SO2 source is also a CAIR NOX Ozone Season source, then this natural person shall be the same person as the CAIR designated representative under the CAIR NOX Ozone Season Trading Program.

If the CAIR SO2 source is also subject to the Acid Rain Program,

then this natural person shall be the same person as the designated representative under the Acid Rain Program.

CAIR NOX Annual Trading Program means a multi state nitrogen oxides air pollution control and emission reduction program approved and administered by the Administrator in accordance with subparts AA through II of this part and § 51.123 of this chapter,

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

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

CAIR NOX Ozone Season Trading Program means a multi state nitrogen oxides air pollution control and emission reduction program approved and administered by the Administrator in accordance with subparts AAAA through IIII of this part and § 51.123 of this DRAFT  12/ 2/ 04 chapter, as a means of mitigating interstate transport of ozone and nitrogen oxides.

CAIR NOX Ozone Season unit means a unit that is subject to the CAIR NOX Ozone Season Trading Program under § 96.304 and a CAIR NOX Ozone Season opt in unit under subpart IIII of this part.

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

CAIR NOX unit means a unit that is subject to the CAIR NOX Annual Trading Program under § 96.104 and a CAIR NOX opt in unit under subpart II of this part.

CAIR permit means the legally binding and federally enforceable written document, or portion of such document, issued by the permitting authority under subpart CCC of this part, including any permit revisions, specifying the CAIR SO2 Trading Program requirements applicable to a CAIR SO2 source, to each CAIR SO2 unit at the source, and to the owners and operators and the CAIR designated representative of the source and each such unit.

CAIR SO2 allowance means a limited authorization issued by the Administrator under the Acid Rain Program, or by a permitting authority under § 96.288, to emit sulfur dioxide during the control period of the specified calendar year for which the authorization is allocated or of any calendar year thereafter under the CAIR SO2 Trading Program as follows:

( 1) For one CAIR SO2 allowance allocated for a control period in DRAFT  12/ 2/ 04 a year before 2010, one ton of sulfur dioxide, except as provided in § 96.254( b);

( 2) For one CAIR SO2 allowance allocated for a control period in 2010 through 2014, 0.50 ton of sulfur dioxide, except as provided in § 96.254( b); and ( 3) For one CAIR SO2 allowance allocated for a control period in 2015 or later, 0.35 ton of sulfur dioxide, except as provided in § 96.254( b).

An authorization to emit sulfur dioxide that is not issued under the Acid Rain Program or under the provisions of a State implementation plan that is approved under § 51.124( o)( 1) or ( 2)

of this chapter shall not be a CAIR SO2 allowance.

CAIR SO2 allowance deduction or deduct CAIR SO2 allowances means the permanent withdrawal of CAIR SO2 allowances by the Administrator from a compliance account in order to account for a specified number of tons of total sulfur dioxide emissions from all CAIR SO2 units at a CAIR SO2 source for a control period,

determined in accordance with subpart HHH of this part, or to account for excess emissions.

CAIR SO2 Allowance Tracking System means the system by which the Administrator records allocations, deductions, and transfers of CAIR SO2 allowances under the CAIR SO2 Trading Program. This is the same system as the Allowance Tracking System under § 72.2 of this chapter by which the Administrator records allocations, DRAFT  12/ 2/ 04 deduction, and transfers of Acid Rain SO2 allowances under the Acid Rain Program.

CAIR SO2 Allowance Tracking System account means an account in the CAIR SO2 Allowance Tracking System established by the Administrator for purposes of recording the allocation, holding,

transferring, or deducting of CAIR SO2 allowances. Such allowances will be allocated, held, deducted, or transferred only as whole allowances.

CAIR SO2 allowances held or hold CAIR SO2 allowances means the CAIR SO2 allowances recorded by the Administrator, or submitted to the Administrator for recordation, in accordance with subparts FFF, GGG, and III of this part or part 73 of this chapter, in a CAIR SO2 Allowance Tracking System account.

CAIR SO2 emissions limitation means, for a CAIR SO2 source, the tonnage equivalent of the CAIR SO2 allowances available for deduction for the source under § 96.254( a) and ( b) for a control period.

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

CAIR SO2 Trading Program means a multi state sulfur dioxide air pollution control and emission reduction program approved and administered by the Administrator in accordance with subparts AAA through III of this part and § 51.124 of this chapter, as a means of mitigating interstate transport of fine particulates and DRAFT  12/ 2/ 04 sulfur dioxide.

CAIR SO2 unit means a unit that is subject to the CAIR SO2 Trading Program under § 96.204 and, except for purposes of § 96.205, a CAIR SO2 opt in unit under subpart III of this part.

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

Coal means any solid fuel classified as anthracite, bituminous,

subbituminous, or lignite.

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

Coal fired means combusting any amount of coal or coal derived fuel, alone, or in combination with any amount of any other fuel.

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

( 1) Having equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, or cooling purposes through the sequential use of energy; and ( 2) Producing during the 12 month period starting on the date the unit first produces electricity and during any calendar year after which the unit first produces electricity   ( i) For a topping cycle cogeneration unit,

( A) Useful thermal energy not less than 5 percent of total energy output; and DRAFT  12/ 2/ 04 ( B) Useful power that, when added to one half of useful thermal energy produced, is not less then 42.5 percent of total energy input, if useful thermal energy produced is 15 percent or more of total energy output, or not less than 45 percent of total energy input, if useful thermal energy produced is less than 15 percent of total energy output.

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

Combustion turbine means:

( 1) An enclosed device comprising a compressor, a combustor,

and a turbine and in which the flue gas resulting from the combustion of fuel in the combustor passes through the turbine,

rotating the turbine; and ( 2) If the enclosed device under paragraph ( 1) of this definition is combined cycle, any associated heat recovery steam generator and steam turbine.

Commence commercial operation means, with regard to a unit serving a generator:

( 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 § 96.205.

( i) For a unit that is a CAIR SO2 unit under § 96.204 on the date the unit commences commercial operation as defined in paragraph ( 1) of this definition and that subsequently undergoes DRAFT  12/ 2/ 04 a physical change ( other than replacement of the unit by a unit at the same source), such date shall remain the unit's date of commencement of commercial operation.

( ii) For a unit that is a CAIR SO2 unit under § 96.204 on the date the unit commences commercial operation as defined in paragraph ( 1) of this definition and that is subsequently replaced by a unit at the same source ( e. g., repowered), the replacement unit shall be treated as a separate unit with a separate date for commencement of commercial operation as defined in paragraph ( 1), ( 2), or ( 3) of this definition as appropriate.

( 2) Notwithstanding paragraph ( 1) of this definition and except as provided in § 96.205, for a unit that is not a CAIR SO2 unit under § 96.204 on the date the unit commences commercial operation as defined in paragraph ( 1) of this definition and is not a unit under paragraph ( 3) of this definition, the unit's date for commencement of commercial operation shall be the date on which the unit becomes a CAIR SO2 unit under § 96.204.

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

( ii) For a unit with a date for commencement of commercial operation as defined in paragraph ( 2) of this definition and that DRAFT  12/ 2/ 04 is subsequently replaced by a unit at the same source ( e. g.,

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

( 3) Notwithstanding paragraph ( 1) of this definition and except as provided in § 96.284( h) or § 96.287( b)( 3), for a CAIR SO2 optin unit or a unit for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under subpart III of this part, the unit's date for commencement of commercial operation shall be the date on which the owner or operator is required to start monitoring and reporting the SO2 emissions rate and the heat input of the unit under § 96.284( b)( i)( 1).

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

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

repowered), the replacement unit shall be treated as a separate unit with a separate date for commencement of commercial DRAFT  12/ 2/ 04 operation as defined in paragraph ( 1), ( 2), or ( 3) of this definition as appropriate.

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

Commence operation means:

( 1) To have begun any mechanical, chemical, or electronic process, including, with regard to a unit, start up of a unit's combustion chamber, except as provided in § 96.205.

( i) For a unit that is a CAIR SO2 unit under § 96.204 on the date the unit commences operation as defined in paragraph ( 1) of this definition and that subsequently undergoes a physical change ( other than replacement of the unit by a unit at the same source), such date shall remain the unit's date of commencement of operation.

( ii) For a unit that is a CAIR SO2 unit under § 96.204 on the date the unit commences operation as defined in paragraph ( 1) of this definition and that is subsequently replaced by a unit at the same source ( e. g., repowered), the replacement unit shall be treated as a separate unit with a separate date for commencement of operation as defined in paragraph ( 1), ( 2), or ( 3) of this definition as appropriate. DRAFT  12/ 2/ 04 ( 2) Notwithstanding paragraph ( 1) of this definition and except as provided in § 96.205, for a unit that is not a CAIR SO2 unit under § 96.204 on the date the unit commences operation as defined in paragraph ( 1) of this definition and is not a unit under paragraph ( 3) of this definition, the unit's date for commencement of operation shall be the date on which the unit becomes a CAIR SO2 unit under § 96.204.

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

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

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

( 3) Notwithstanding paragraph ( 1) of this definition and except as provided in § 96.284( h) or § 96.287( b)( 3), for a CAIR SO2 optin unit or a unit for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under subpart III of this part, the unit's date DRAFT  12/ 2/ 04 for commencement of operation shall be the date on which the owner or operator is required to start monitoring and reporting the SO2 emissions rate and the heat input of the unit under § 96.284( b)( i)( 1).

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

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

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

Common stack means a single flue through which emissions from 2 or more units are exhausted.

Compliance account means a CAIR SO2 Allowance Tracking System account, established by the Administrator for a CAIR SO2 source subject to an Acid Rain emissions limitations under § 73.31( a) or ( b) of this chapter or for any other CAIR SO2 source under subpart FFF or III of this part, in which any CAIR SO2 allowance allocations for the CAIR SO2 units at the source are initially DRAFT  12/ 2/ 04 recorded and in which are held any CAIR SO2 allowances available for use for a control period in order to meet the source's CAIR SO2 emissions limitation in accordance with § 96.254.

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

measure, and provide, by means of readings recorded at least once every 15 minutes ( using an automated data acquisition and handling system ( DAHS)), a permanent record of sulfur dioxide emissions, stack gas volumetric flow rate, stack gas moisture content, and oxygen or carbon dioxide concentration ( as applicable), in a manner consistent with part 75 of this chapter.

The following systems are the principal types of continuous emission monitoring systems required under subpart HHH of this part:

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

( 2) A sulfur dioxide monitoring system, consisting of a SO2 pollutant concentration monitor and an automated data acquisition handling system and providing a permanent, continuous record of SO2 emissions, in parts per million ( ppm);

( 3) A moisture monitoring system, as defined in § 75.11( b)( 2)

of this chapter and providing a permanent, continuous record of DRAFT  12/ 2/ 04 the stack gas moisture content, in percent H2O;

( 4) A carbon dioxide monitoring system, consisting of a CO2 pollutant concentration monitor ( or an oxygen monitor plus suitable mathematical equations from which the CO2 concentration is derived) and an automated data acquisition and handling system and providing a permanent, continuous record of CO2 emissions, in percent CO2; and ( 5) An oxygen monitoring system, consisting of an O2 concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record of O2 in percent O2.

Control period means the period beginning January 1 of a calendar year and ending on December 31 of the same year, inclusive.

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

Excess emissions means any ton, or portion of a ton, of sulfur dioxide emitted by the CAIR SO2 units at a CAIR SO2 source during a control period that exceeds the CAIR SO2 emissions limitation for the source, provided that any portion of a ton of excess emissions shall be treated as one ton of excess emissions.

Fossil fuel means natural gas, petroleum, coal, or any form of DRAFT  12/ 2/ 04 solid, liquid, or gaseous fuel derived from such material.

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

General account means a CAIR SO2 Allowance Tracking System account, established under subpart FFF of this part, that is not a compliance account.

Generator means a device that produces electricity.

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

or exhaust from other sources.

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

divided by the unit operating time ( in hr) during which the unit combusts the fuel.

Life of the unit, firm power contractual arrangement means a unit participation power sales agreement under which a customer reserves, or is entitled to receive, a specified amount or DRAFT  12/ 2/ 04 percentage of nameplate capacity and associated energy from any specified unit and pays its proportional amount of such unit's total costs, pursuant to a contract:

( 1) For the life of the unit;

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

Maximum design heat input means, starting from the initial installation of a unit, the maximum amount of fuel per hour ( in Btu/ hr) that a unit is capable of combusting on a steady state basis as specified by the manufacturer of the unit, or, starting from the completion of any subsequent physical change in the unit resulting in a decrease in the maximum amount of fuel per hour ( in Btu/ hr) that a unit is capable of combusting on a steady state basis, such decreased maximum amount as specified by the person conducting the physical change.

Monitoring system means any monitoring system that meets the requirements of subpart HHH of this part, including a continuous emissions monitoring system, an alternative monitoring system, or an excepted monitoring system under part 75 of this chapter. DRAFT  12/ 2/ 04 Most stringent State or Federal SO2 emissions limitation means,

with regard to a unit, the lowest SO2 emissions limitation ( in terms of lb/ mmBtu) that is applicable to the unit under State or Federal law, regardless of the averaging period to which the emissions limitation applies.

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

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

Operator means any person who operates, controls, or supervises a CAIR SO2 unit or a CAIR SO2 source and shall include, but not be limited to, any holding company, utility system, or plant manager of such a unit or source.

Owner means any of the following persons:

( 1) With regard to a CAIR SO2 source or a CAIR SO2 unit at a source, respectively: DRAFT  12/ 2/ 04 ( i) Any holder of any portion of the legal or equitable title in a CAIR SO2 unit at the source or the CAIR SO2 unit;

( ii) Any holder of a leasehold interest in a CAIR SO2 unit at the source or the CAIR SO2 unit; or ( iii) Any purchaser of power from a CAIR SO2 unit at the source or the CAIR SO2 unit under a life of the unit, firm power contractual arrangement; provided that, unless expressly provided for in a leasehold agreement, owner shall not include a passive lessor, or a person who has an equitable interest through such lessor, whose rental payments are not based ( either directly or indirectly) on the revenues or income from such CAIR SO2 unit; or ( 2) With regard to any general account, any person who has an ownership interest with respect to the CAIR SO2 allowances held in the general account and who is subject to the binding agreement for the CAIR authorized account representative to represent the person's ownership interest with respect to CAIR SO2 allowances.

Permitting authority means the State air pollution control agency, local agency, other State agency, or other agency authorized by the Administrator to issue or revise permits to meet the requirements of the CAIR SO2 Trading Program in accordance with subpart CCC of this part or, if no such agency has been so authorized, the Administrator.

Potential electrical output capacity means 33 percent of a unit's maximum design heat input, divided by 3,413 Btu/ kWh, divided by DRAFT  12/ 2/ 04 1,000 kWh/ MWh, and multiplied by 8,760 hr/ yr.

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

Recordation, record, or recorded means, with regard to CAIR SO2 allowances, the movement of CAIR SO2 allowances by the Administrator into or between CAIR SO2 Allowance Tracking System accounts, for purposes of allocation, transfer, or deduction.

Reference method means any direct test method of sampling and analyzing for an air pollutant as specified in § 75.22 of this chapter.

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

( 1) Atmospheric or pressurized fluidized bed combustion;

( 2) Integrated gasification combined cycle;

( 3) Magnetohydrodynamics;

( 4) Direct and indirect coal fired turbines;

( 5) Integrated gasification fuel cells; or ( 6) As determined by the Administrator in consultation with the DRAFT  12/ 2/ 04 Secretary of Energy, a derivative of one or more of the technologies under paragraphs ( 1) through ( 5) of this definition and any other coal fired technology capable of controlling multiple combustion emissions simultaneously with improved boiler or generation efficiency and with significantly greater waste reduction relative to the performance of technology in widespread commercial use as of January 1, 2005.

Serial number means, for a CAIR SO2 allowance, the unique identification number assigned to each CAIR SO2 allowance by the Administrator.

Sequential use of energy means:

( 1) For a topping cycle cogeneration unit, the use of reject heat from electricity production in a useful thermal energy application or process; or ( 2) For a bottoming cycle cogeneration unit, the use of reject heat from useful thermal energy application or process in electricity production.

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

with multiple units, shall be considered a single " facility."

State means one of the States or the District of Columbia that adopts the CAIR SO2 Trading Program pursuant to § 51.124 ( o)( 1) or DRAFT  12/ 2/ 04 ( 2) of this chapter.

Submit or serve means to send or transmit a document,

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

( 1) In person;

( 2) By United States Postal Service; or ( 3) By other means of dispatch or transmission and delivery.

Compliance with any " submission" or " service" deadline shall be determined by the date of dispatch, transmission, or mailing and not the date of receipt.

Title V operating permit means a permit issued under title V of the Clean Air Act and part 70 or part 71 of this chapter.

Title V operating permit regulations means the regulations that the Administrator has approved or issued as meeting the requirements of title V of the Clean Air Act and part 70 or 71 of this chapter.

Ton means 2,000 pounds. For the purpose of determining compliance with the CAIR SO2 emissions limitation, total tons of sulfur dioxide emissions for a control period shall be calculated as the sum of all recorded hourly emissions ( or the mass equivalent of the recorded hourly emission rates) in accordance with subpart HHH of this part, but with any remaining fraction of a ton equal to or greater than 0.50 tons deemed to equal one ton and any remaining fraction of a ton less than 0.50 tons deemed to DRAFT  12/ 2/ 04 equal zero tons.

Topping cycle cogeneration unit means a cogeneration unit in which the energy input to the unit is first used to produce useful power, including electricity, and at least some of the reject heat from the electricity production is then used to provide useful thermal energy.

Total energy input means, with regard to a cogeneration unit,

total energy of all forms supplied to the cogeneration unit,

excluding energy produced by the cogeneration unit itself.

Total energy output means, with regard to a cogeneration unit,

the sum of useful power and useful thermal energy produced by the cogeneration unit.

Unit means a stationary, fossil fuel fired boiler or combustion turbine or other stationary, fossil fuel fired combustion device.

Unit operating day means a calendar day in which a unit combusts any fuel.

Unit operating hour or hour of unit operation means an hour in which a unit combusts any fuel.

Useful power means, with regard to a cogeneration unit,

electricity or mechanical energy made available for use,

excluding any such energy used in the power production process ( which process includes, but is not limited to, any on site processing or treatment of fuel combusted at the unit and any onsite emission controls). DRAFT  12/ 2/ 04 Useful thermal energy means, with regard to a cogeneration unit,

thermal energy that is:

( 1) Made available to an industrial or commercial process ( not a power production process), excluding any heat contained in condensate return or makeup water;

( 2) Used in a heat application ( e. g., space heating or domestic hot water heating); or ( 3) Used in a space cooling application ( i. e., thermal energy used by an absorption chiller).

Utility power distribution system means the portion of an electricity grid owned or operated by a utility and dedicated to delivering electricity to customers.

§ 96.203 Measurements, abbreviations, and acronyms.

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

Btu British thermal unit.

CO2 carbon dioxide.

NOX nitrogen oxide.

hr hour.

kW kilowatt electrical.

kWh kilowatt hour.

mmBtu million Btu.

MWe megawatt electrical.

MWh megawatt hour. DRAFT  12/ 2/ 04 O2 oxygen.

ppm parts per million.

lb pound.

scfh standard cubic feet per hour.

SO2 sulfur dioxide.

H2O water.

yr year.

§ 96.204 Applicability.

The following units in a State shall be CAIR SO2 units, and any source that includes one or more such units shall be a CAIR SO2 source, subject to the requirements of this subpart and subparts BBB through HHH of this part:

( a) Except as provided in paragraph ( b) of this section, a stationary, fossil fuel fired boiler or stationary, fossil

fuelfired combustion turbine serving at any time, since the start up of a unit's combustion chamber, a generator with nameplate capacity of more than 25 MWe producing electricity for sale.

( b) For a unit that qualifies as a cogeneration unit during the 12 month period starting on the date the unit first produces electricity and continues to qualify as a cogeneration unit, a cogeneration unit serving at any time a generator with nameplate capacity of more than 25 MWe and 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 DRAFT  12/ 2/ 04 power distribution system for sale. If a unit that qualifies as a cogeneration unit during the 12 month period starting on the date the unit first produces electricity but subsequently no longer qualifies as a cogeneration unit, the unit shall be subject to paragraph ( a) of this section starting on the day on which the unit first no longer qualifies as a cogeneration unit.

§ 96.205 Retired unit exemption.

( a)( 1) Any CAIR SO2 unit that is permanently retired and is not a CAIR SO2 opt in unit under subpart III of this part shall be exempt from the CAIR SO2 Trading Program, except for the provisions of this section, § 96.202, § 96.203, § 96.204, § 96.206( c)( 4) through ( 8), § 96.207, and subparts FFF and GGG of this part.

( 2) The exemption under paragraph ( a)( 1) of this section shall become effective the day on which the CAIR SO2 unit is permanently retired. Within 30 days of the unit's permanent retirement, the CAIR designated representative shall submit a statement to the permitting authority otherwise responsible for administering any CAIR permit for the unit and shall submit a copy of the statement to the Administrator. The statement shall state, in a format prescribed by the permitting authority, that the unit was permanently retired on a specific date and will comply with the requirements of paragraph ( b) of this section.

( 3) After receipt of the notice under paragraph ( a)( 2) of DRAFT  12/ 2/ 04 this section, the permitting authority will amend any permit under subpart CCC of this part covering the source at which the unit is located to add the provisions and requirements of the exemption under paragraphs ( a)( 1) and ( b) of this section.

( b) Special provisions.

( 1) A unit exempt under paragraph ( a) of this section shall not emit any sulfur dioxide, starting on the date that the exemption takes effect.

( 2) For a period of 5 years from the date the records are created, the owners and operators of a unit exempt under paragraph ( a) of this section shall retain at the source that includes the unit, records demonstrating that the unit is permanently retired. The 5 year period for keeping records may be extended for cause, at any time before the end of the period,

in writing by the permitting authority or the Administrator. The owners and operators bear the burden of proof that the unit is permanently retired.

( 3) The owners and operators and, to the extent applicable,

the CAIR designated representative of a unit exempt under paragraph ( a) of this section shall comply with the requirements of the CAIR SO2 Trading Program concerning all periods for which the exemption is not in effect, even if such requirements arise,

or must be complied with, after the exemption takes effect.

( 4) A unit exempt under paragraph ( a) of this section and DRAFT  12/ 2/ 04 located at a source that is required, or but for this exemption would be required, to have a title V operating permit shall not resume operation unless the CAIR designated representative of the source submits a complete CAIR permit application under § 96.222 for the unit not less than 18 months ( or such lesser time provided by the permitting authority) before the later of January 1, 2010 or the date on which the unit resumes operation.

( 5) On the earlier of the following dates, a unit exempt under paragraph ( a) of this section shall lose its exemption:

( i) The date on which the CAIR designated representative submits a CAIR permit application for the unit under paragraph ( b)( 4) of this section;

( ii) The date on which the CAIR designated representative is required under paragraph ( b)( 4) of this section to submit a CAIR permit application for the unit; or ( iii) The date on which the unit resumes operation, if the CAIR designated representative is not required to submit a CAIR permit application for the unit.

( 6) For the purpose of applying monitoring, reporting, and recordkeeping requirements under subpart HHH of this part, a unit that loses its exemption under paragraph ( a) of this section shall be treated as a unit that commences operation and commercial operation on the first date on which the unit resumes operation. DRAFT  12/ 2/ 04 § 96.206 Standard requirements.

( a) Permit Requirements.

( 1) The CAIR designated representative of each CAIR SO2 source required to have a title V operating permit and each CAIR SO2 unit required to have a title V operating permit at the source shall:

( i) Submit to the permitting authority a complete CAIR permit application under § 96.222 in accordance with the deadlines specified in § 96.221( a) and ( b); and ( ii) Submit in a timely manner any supplemental information that the permitting authority determines is necessary in order to review a CAIR permit application and issue or deny a CAIR permit.

( 2) The owners and operators of each CAIR SO2 source required to have a title V operating permit and each CAIR SO2 unit required to have a title V operating permit at the source shall have a CAIR permit issued by the permitting authority under subpart CCC of this part for the source and operate the source and the unit in compliance with such CAIR permit.

( 3) Except as provided in subpart III of this part, the owners and operators of a CAIR SO2 source that is not otherwise required to have a title V operating permit and each CAIR SO2 unit that is not otherwise required to have a title V operating permit are not required to submit a CAIR permit application, and to have a CAIR permit, under subpart CCC of this part for such CAIR SO2 DRAFT  12/ 2/ 04 source and such CAIR SO2 unit.

( b) Monitoring, reporting, and recordkeeping requirements.

( 1) The owners and operators, and the CAIR designated representative, of each CAIR SO2 source and each CAIR SO2 unit at the source shall comply with the monitoring, reporting, and recordkeeping requirements of subpart HHH of this part.

( 2) The emissions measurements recorded and reported in accordance with subpart HHH of this part shall be used to determine compliance by each CAIR SO2 source with the CAIR SO2 emissions limitation under paragraph ( c) of this section.

( c) Sulfur dioxide emission requirements.

( 1) As of the allowance transfer deadline for a control period, the owners and operators of each CAIR SO2 source and each CAIR SO2 unit at the source shall hold, in the source's compliance account, a tonnage equivalent in CAIR SO2 allowances available for compliance deductions for the control period, as determined in accordance with § 96.254( a) and ( b), not less than the tons of total sulfur dioxide emissions for the control period from all CAIR SO2 units at the source, as determined in accordance with subpart HHH of this part.

( 2) A CAIR SO2 unit shall be subject to the requirements under paragraph ( c)( 1) of this section starting on the later of January 1, 2010 or the deadline for meeting the unit's monitor certification requirements under § 96.270( b)( 1),( 2), or ( 5). DRAFT  12/ 2/ 04 ( 3) A CAIR SO2 allowance shall not be deducted, for compliance with the requirements under paragraph ( c)( 1) of this section, for a control period in a calendar year before the year for which the CAIR SO2 allowance was allocated.

( 4) CAIR SO2 allowances shall be held in, deducted from, or transferred into or among CAIR SO2 Allowance Tracking System accounts in accordance with subparts FFF and GGG of this part.

( 5) A CAIR SO2 allowance is a limited authorization to emit sulfur dioxide in accordance with the CAIR SO2 Trading Program.

No provision of the CAIR SO2 Trading Program, the CAIR permit application, the CAIR permit, or an exemption under § 96.205 and no provision of law shall be construed to limit the authority of the State or the United States to terminate or limit such authorization.

( 6) A CAIR SO2 allowance does not constitute a property right.

( 7) Upon recordation by the Administrator under subparts FFF, GGG, or III of this part, every allocation, transfer, or deduction of a CAIR SO2 allowance to or from a CAIR SO2 unit's compliance account is incorporated automatically in any CAIR permit of the source that includes the CAIR SO2 unit.

( d) Excess emissions requirements.

( 1) If a CAIR SO2 source emits sulfur dioxide during any control period in excess of the CAIR SO2 emissions limitation, DRAFT  12/ 2/ 04 then:

( i) The owners and operators of the source and each CAIR SO2 unit at the source shall surrender the CAIR SO2 allowances required for deduction under § 96.254( d)( 1) and pay any fine,

penalty, or assessment or comply with any other remedy imposed,

for the same violations, under the Clean Air Act or applicable State law; and ( ii) Each ton of such excess emissions and each day of such control period shall constitute a separate violation of this subpart, the Clean Air Act, and applicable State law.

( e) Recordkeeping and reporting requirements.

( 1) Unless otherwise provided, the owners and operators of the CAIR SO2 source and each CAIR SO2 unit at the source shall keep on site at the source each of the following documents for a period of 5 years from the date the document is created. This period may be extended for cause, at any time before the end of 5 years, in writing by the permitting authority or the Administrator.

( i) The certificate of representation under § 96.213 for the CAIR designated representative for the source and each CAIR SO2 unit at the source and all documents that demonstrate the truth of the statements in the certificate of representation; provided that the certificate and documents shall be retained on site at the source beyond such 5 year period until such documents are DRAFT  12/ 2/ 04 superseded because of the submission of a new certificate of representation under § 96.213 changing the CAIR designated representative.

( ii) All emissions monitoring information, in accordance with subpart HHH of this part, provided that to the extent that subpart HHH of this part provides for a 3 year period for recordkeeping, the 3 year period shall apply.

( iii) Copies of all reports, compliance certifications, and other submissions and all records made or required under the CAIR SO2 Trading Program.

( iv) Copies of all documents used to complete a CAIR permit application and any other submission under the CAIR SO2 Trading Program or to demonstrate compliance with the requirements of the CAIR SO2 Trading Program.

( 2) The CAIR designated representative of a CAIR SO2 source and each CAIR SO2 unit at the source shall submit the reports required under the CAIR SO2 Trading Program, including those under subpart HHH of this part.

( f) Liability.

( 1) Each CAIR SO2 source and each CAIR SO2 unit shall meet the requirements of the CAIR SO2 Trading Program.

( 2) Any provision of the CAIR SO2 Trading Program that applies to a CAIR SO2 source or the CAIR designated representative of a CAIR SO2 source shall also apply to the owners and operators DRAFT  12/ 2/ 04 of such source and of the CAIR SO2 units at the source.

( 3) Any provision of the CAIR SO2 Trading Program that applies to a CAIR SO2 unit or the CAIR designated representative of a CAIR SO2 unit shall also apply to the owners and operators of such unit.

( g) Effect on other authorities. No provision of the CAIR SO2 Trading Program, a CAIR permit application, a CAIR permit, or an exemption under § 96.205 shall be construed as exempting or excluding the owners and operators, and the CAIR designated representative, of a CAIR SO2 source or CAIR SO2 unit from compliance with any other provision of the applicable, approved State implementation plan, a federally enforceable permit, or the Clean Air Act.

§ 96.207 Computation of time.

( a) Unless otherwise stated, any time period scheduled,

under the CAIR SO2 Trading Program, to begin on the occurrence of an act or event shall begin on the day the act or event occurs.

( b) Unless otherwise stated, any time period scheduled,

under the CAIR SO2 Trading Program, to begin before the occurrence of an act or event shall be computed so that the period ends the day before the act or event occurs.

( c) Unless otherwise stated, if the final day of any time period, under the CAIR SO2 Trading Program, falls on a weekend or a State or Federal holiday, the time period shall be extended to DRAFT  12/ 2/ 04 the next business day.

§ 96.208 Appeal Procedures.

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

Subpart BBB   CAIR designated representative for CAIR SO2 sources § 96.210 Authorization and responsibilities of CAIR designated representative.

( a) Except as provided under § 96.211, each CAIR SO2 source,

including all CAIR SO2 units at the source, shall have one and only one CAIR designated representative, with regard to all matters under the CAIR SO2 Trading Program concerning the source or any CAIR SO2 unit at the source.

( b) The CAIR designated representative of the CAIR SO2 source shall be selected by an agreement binding on the owners and operators of the source and all CAIR SO2 units at the source and shall act in accordance with the certification statement in § 96.213( a)( 5)( iv).

( c) Upon receipt by the Administrator of a complete certificate of representation under § 96.213, the CAIR designated representative of the source shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each owner and operator of the CAIR SO2 source represented and each CAIR SO2 unit at the source in all matters pertaining to the DRAFT  12/ 2/ 04 CAIR SO2 Trading Program, notwithstanding any agreement between the CAIR designated representative and such owners and operators.

The owners and operators shall be bound by any decision or order issued to the CAIR designated representative by the permitting authority, the Administrator, or a court regarding the source or unit.

( d) No CAIR permit will be issued, no emissions data reports will be accepted, and no CAIR SO2 Allowance Tracking System account will be established for a CAIR SO2 unit at a source, until the Administrator has received a complete certificate of representation under § 96.213 for a CAIR designated representative of the source and the CAIR SO2 units at the source.

( e)( 1) Each submission under the CAIR SO2 Trading Program shall be submitted, signed, and certified by the CAIR designated representative for each CAIR SO2 source on behalf of which the submission is made. Each such submission shall include the following certification statement by the CAIR designated representative: " I am authorized to make this submission on behalf of the owners and operators of the source or units for which the submission is made. I certify under penalty of law that I have personally examined, and am familiar with, the statements and information submitted in this document and all its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify DRAFT  12/ 2/ 04 that the statements and information are to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment."

( 2) The permitting authority and the Administrator will accept or act on a submission made on behalf of owner or operators of a CAIR SO2 source or a CAIR SO2 unit only if the submission has been made, signed, and certified in accordance with paragraph ( e)( 1) of this section.

§ 96.211 Alternate CAIR designated representative.

( a) A certificate of representation under § 96.213 may designate one and only one alternate CAIR designated representative, who may act on behalf of the CAIR designated representative. The agreement by which the alternate CAIR designated representative is selected shall include a procedure for authorizing the alternate CAIR designated representative to act in lieu of the CAIR designated representative.

( b) Upon receipt by the Administrator of a complete certificate of representation under § 96.213, any representation,

action, inaction, or submission by the alternate CAIR designated representative shall be deemed to be a representation, action,

inaction, or submission by the CAIR designated representative.

( c) Except in this section and § § 96.202, 96.210( a) and ( d), DRAFT  12/ 2/ 04 96.212, 96.213, 96.251, and 96.282, whenever the term " CAIR designated representative" is used in subparts AAA through III of this part, the term shall be construed to include the CAIR designated representative or any alternate CAIR designated representative.

§ 96.212 Changing CAIR designated representative and alternate CAIR designated representative; changes in owners and operators.

( a) Changing CAIR designated representative. The CAIR designated representative may be changed at any time upon receipt by the Administrator of a superseding complete certificate of representation under § 96.213. Notwithstanding any such change,

all representations, actions, inactions, and submissions by the previous CAIR designated representative before the time and date when the Administrator receives the superseding certificate of representation shall be binding on the new CAIR designated representative and the owners and operators of the CAIR SO2 source and the CAIR SO2 units at the source.

( b) Changing alternate CAIR designated representative. The alternate CAIR designated representative may be changed at any time upon receipt by the Administrator of a superseding complete certificate of representation under § 96.213. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous alternate CAIR designated representative before the time and date when the Administrator DRAFT  12/ 2/ 04 receives the superseding certificate of representation shall be binding on the new alternate CAIR designated representative and the owners and operators of the CAIR SO2 source and the CAIR SO2 units at the source.

( c) Changes in owners and operators.

( 1) In the event a new owner or operator of a CAIR SO2 source or a CAIR SO2 unit is not included in the list of owners and operators in the certificate of representation under § 96.213,

such new owner or operator shall be deemed to be subject to and bound by the certificate of representation, the representations,

actions, inactions, and submissions of the CAIR designated representative and any alternate CAIR designated representative of the source or unit, and the decisions and orders of the permitting authority, the Administrator, or a court, as if the new owner or operator were included in such list.

( 2) Within 30 days following any change in the owners and operators of a CAIR SO2 source or a CAIR SO2 unit, including the addition of a new owner or operator, the CAIR designated representative or any alternate CAIR designated representative shall submit a revision to the certificate of representation under § 96.213 amending the list of owners and operators to include the change.

§ 96.213 Certificate of representation.

( a) A complete certificate of representation for a CAIR DRAFT  12/ 2/ 04 designated representative or an alternate CAIR designated representative shall include the following elements in a format prescribed by the Administrator:

( 1) Identification of the CAIR SO2 source, and each CAIR SO2 unit at the source, for which the certificate of representation is submitted.

( 2) The name, address, e mail address ( if any), telephone number, and facsimile transmission number ( if any) of the CAIR designated representative and any alternate CAIR designated representative.

( 3) A list of the owners and operators of the CAIR SO2 source and of each CAIR SO2 unit at the source.

( 4) The following certification statements by the CAIR designated representative and any alternate CAIR designated representative

( i) " I certify that I was selected as the CAIR designated representative or alternate CAIR designated representative, as applicable, by an agreement binding on the owners and operators of the source and each CAIR SO2 unit at the source."

( ii) " I certify that I have all the necessary authority to carry out my duties and responsibilities under the CAIR SO2 Trading Program on behalf of the owners and operators of the source and of each CAIR SO2 unit at the source and that each such owner and operator shall be fully bound by my representations, DRAFT  12/ 2/ 04 actions, inactions, or submissions."

( iii) " I certify that the owners and operators of the source and of each CAIR SO2 unit at the source shall be bound by any order issued to me by the Administrator, the permitting authority, or a court regarding the source or unit."

( iv) " Where there are multiple holders of a legal or equitable title to, or a leasehold interest in, a CAIR SO2 unit,

or where a customer purchases power from a CAIR SO2 unit under a life of the unit, firm power contractual arrangement, I certify that: I have given a written notice of my selection as the ` CAIR designated representative' or ` alternate CAIR designated representative', as applicable, and of the agreement by which I was selected to each owner and operator of the source and of each CAIR SO2 unit at the source; and CAIR SO2 allowances and proceeds of transactions involving CAIR SO2 allowances will be deemed to be held or distributed in proportion to each holder's legal,

equitable, leasehold, or contractual reservation or entitlement,

except that, if such multiple holders have expressly provided for a different distribution of CAIR SO2 allowances by contract, CAIR SO2 allowances and proceeds of transactions involving CAIR SO2 allowances will be deemed to be held or distributed in accordance with the contract."

( 5) The signature of the CAIR designated representative and any alternate CAIR designated representative and the dates DRAFT  12/ 2/ 04 signed.

( b) Unless otherwise required by the permitting authority or the Administrator, documents of agreement referred to in the certificate of representation shall not be submitted to the permitting authority or the Administrator. Neither the permitting authority nor the Administrator shall be under any obligation to review or evaluate the sufficiency of such documents, if submitted.

§ 96.214 Objections concerning CAIR designated representative.

( a) Once a complete certificate of representation under § 96.213 has been submitted and received, the permitting authority and the Administrator will rely on the certificate of representation unless and until a superseding complete certificate of representation under § 96.213 is received by the Administrator.

( b) Except as provided in § 96.212( a) or ( b), no objection or other communication submitted to the permitting authority or the Administrator concerning the authorization, or any representation, action, inaction, or submission, of the CAIR designated representative shall affect any representation,

action, inaction, or submission of the CAIR designated representative or the finality of any decision or order by the permitting authority or the Administrator under the CAIR SO2 Trading Program. DRAFT  12/ 2/ 04 ( c) Neither the permitting authority nor the Administrator will adjudicate any private legal dispute concerning the authorization or any representation, action, inaction, or submission of any CAIR designated representative, including private legal disputes concerning the proceeds of CAIR SO2 allowance transfers.

Subpart CCC   Permits § 96.220 General CAIR Trading Program permit requirements.

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

( b) Each CAIR permit shall contain, with regard to the CAIR SO2 source and the CAIR SO2 units at the source, all applicable CAIR SO2 Trading Program, CAIR NOX Annual Trading Program, and DRAFT  12/ 2/ 04 CAIR NOX Ozone Season Trading Program requirements and shall be a complete and separable portion of the title V operating permit or other federally enforceable permit under paragraph ( a) of this section.

§ 96.221 Submission of CAIR permit applications.

( a) Duty to apply. The CAIR designated representative of any CAIR SO2 source required to have a title V operating permit shall submit to the permitting authority a complete CAIR permit application under § 96.222 for the source covering each CAIR SO2 unit at the source at least 18 months ( or such lesser time provided by the permitting authority) before the later of January 1, 2010 or the date on which the CAIR SO2 unit commences operation.

( b) Duty to Reapply. For a CAIR SO2 source required to have a title V operating permit, the CAIR designated representative shall submit a complete CAIR permit application under § 96.222 for the source covering each CAIR SO2 unit at the source to renew the CAIR permit in accordance with the permitting authority's title V operating permits regulations addressing permit renewal.

§ 96.222 Information requirements for CAIR permit applications.

A complete CAIR permit application shall include the following elements concerning the CAIR SO2 source for which the application is submitted, in a format prescribed by the permitting authority: DRAFT  12/ 2/ 04 ( a) Identification of the CAIR SO2 source;

( b) Identification of each CAIR SO2 unit at the CAIR SO2 source; and ( c) The standard requirements under § 96.206.

§ 96.223 CAIR permit contents and term.

( a) Each CAIR permit will contain, in a format prescribed by the permitting authority, all elements required for a complete CAIR permit application under § 96.222.

( b) Each CAIR permit is deemed to incorporate automatically the definitions of terms under § 96.202 and, upon recordation by the Administrator under subpart FFF, GGG, or III of this part,

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

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

§ 96.224 CAIR permit revisions.

Except as provided in § 96.223( b), the permitting authority will revise the CAIR permit, as necessary, in accordance with the permitting authority's title V operating permits regulations or the permitting authority's regulations for other federally DRAFT  12/ 2/ 04 enforceable permits as applicable addressing permit revisions.

Subpart DDD   [ Reserved]

Subpart EEE   [ Reserved]

Subpart FFF   CAIR SO2 Allowance Tracking System § 96.250 [ Reserved]

§ 96.251 Establishment of accounts.

( a) Compliance accounts. Except as provided in § 96.284( e),

upon receipt of a complete certificate of representation under § 96.213, the Administrator will establish a compliance account for the CAIR SO2 source for which the certificate of representation was submitted, unless the source already has a compliance account.

( b) General accounts.

( 1) Application for general account.

( i) Any person may apply to open a general account for the purpose of holding and transferring CAIR SO2 allowances. An application for a general account may designate one and only one CAIR authorized account representative and one and only one alternate CAIR authorized account representative who may act on behalf of the CAIR authorized account representative. The agreement by which the alternate CAIR authorized account representative is selected shall include a procedure for authorizing the alternate CAIR authorized account representative to act in lieu of the CAIR authorized account representative. DRAFT  12/ 2/ 04 ( ii) A complete application for a general account shall be submitted to the Administrator and shall include the following elements in a format prescribed by the Administrator:

( A) Name, mailing address, e mail address ( if any),

telephone number, and facsimile transmission number ( if any) of the CAIR authorized account representative and any alternate CAIR authorized account representative;

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

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

( D) The following certification statement by the CAIR authorized account representative and any alternate CAIR authorized account representative: " I certify that I was selected as the CAIR authorized account representative or the alternate CAIR authorized account representative, as applicable, by an agreement that is binding on all persons who have an ownership interest with respect to allowances held in the general account.

I certify that I have all the necessary authority to carry out my duties and responsibilities under the CAIR SO2 Trading Program on behalf of such persons and that each such person shall be fully DRAFT  12/ 2/ 04 bound by my representations, actions, inactions, or submissions and by any order or decision issued to me by the Administrator or a court regarding the general account."

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

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

( 2) Authorization of CAIR authorized account representative.

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

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

( B) The CAIR authorized account representative and any alternate CAIR authorized account representative for the general account shall represent and, by his or her representations,