Title 40, chapter I, of the Code of Federal Regulations is revised as follows:

PART 51   [ AMENDED]

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

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

§ 51.121 [ AMENDED]

2. Section 51.121 is amended by adding a new paragraph ( r)

to read as follows:

§ 51.121 Findings and requirements for submission of State implementation plan revisions relating to emissions of oxides of nitrogen.

( a) * * *

* * * * *

( r)( 1) Notwithstanding any provisions of paragraph ( p) of this section, subparts A through I of part 96 of this chapter,

and any State's SIP to the contrary, the Administrator will not carry out any of the functions set for forth the Administrator in subparts A through I of part 96 of this chapter, or in any emissions trading program in a State's SIP approved under paragraph ( p) of this section, with regard to any ozone season that occurs after September 30, 2008.

( 2) Except as provided in § 51.123( bb), a State whose SIP is approved as meeting the requirements of this section and that includes an emissions trading program approved under paragraph ( p) of this section must revise the SIP to adopt control measures that satisfy the same portion of the State's NOX emission reduction requirements under this section as the State projected such emissions trading program would satisfy.

2. Part 51 is revised by revising § 51.122 of subpart G to read as follows:

§ 51.122 Emissions reporting requirements for SIP revisions relating to budgets for NOX emissions.

( a) For its transport SIP revision under § 51.121 of this part, each State must submit to EPA NOX emissions data as described in this section.

( b) Each revision must provide for periodic reporting by the State of NOX emissions data to demonstrate whether the State's emissions are consistent with the projections contained in its approved SIP submission.

( 1) Annual reporting. Each revision must provide for annual reporting of NOX emissions data as follows:

( i) The State must report to EPA emissions data from all NOX sources within the State for which the State specified control measures in its SIP submission under § 51.121( g) of this part.

This would include all sources for which the State has adopted measures that differ from the measures incorporated into the baseline inventory for the year 2007 that the State developed in accordance with § 51.121( g) of this part.

( ii) If sources report NOX emissions data to EPA annually pursuant to a trading program approved under § 51.121( p) of this part or pursuant to the monitoring and reporting requirements of subpart H of 40 CFR part 75, then the State need not provide annual reporting to EPA for such sources.

( 2) Triennial reporting. Each plan must provide for triennial ( i. e., every third year) reporting of NOX emissions data from all sources within the State.

( 3) The data availability requirements in § 51.116 of this part must be followed for all data submitted to meet the requirements of paragraphs ( b)( 1) and ( 2) of this section.

( c) The data reported in paragraph ( b) of this section for stationary point sources must meet the following minimum criteria:

( 1) For annual data reporting purposes the data must include the following minimum elements:

( i) Inventory year.

( ii) State Federal Information Placement System code.

( iii) County Federal Information Placement System code.

( iv) Federal ID code ( plant).

( v) Federal ID code ( point).

( vi) Federal ID code ( process).

( vii) Federal ID code ( stack).

( viii) Site name. ( ix) Physical address.

( x) SCC.

( xi) Pollutant code.

( xii) Ozone season emissions.

( xiii) Area designation.

( 2) In addition, the annual data must include the following minimum elements as applicable to the emissions estimation methodology.

( i) Fuel heat content ( annual).

( ii) Fuel heat content ( seasonal).

( iii) Source of fuel heat content data.

( iv) Activity throughput ( annual).

( v) Activity throughput ( seasonal).

( vi) Source of activity/ throughput data.

( vii) Spring throughput (%).

( viii) Summer throughput (%).

( ix) Fall throughput (%).

( x) Work weekday emissions.

( xi) Emission factor.

( xii) Source of emission factor.

( xiii) Hour/ day in operation.

( xiv) Operations Start time ( hour).

( xv) Day/ week in operation.

( xvi) Week/ year in operation.

( 3) The triennial inventories must include the following data elements:

( i) The data required in paragraphs ( c)( 1) and ( c)( 2) of this section.

( ii) X coordinate ( longitude).

( iii) Y coordinate ( latitude).

( iv) Stack height.

( v) Stack diameter.

( vi) Exit gas temperature.

( vii) Exit gas velocity.

( viii) Exit gas flow rate.

( ix) SIC.

( x) Boiler/ process throughput design capacity.

( xi) Maximum design rate.

( xii) Maximum capacity.

( xiii) Primary control efficiency.

( xiv) Secondary control efficiency.

( xv) Control device type.

( d) The data reported in paragraph ( b) of this section for non point sources must include the following minimum elements:

( 1) For annual inventories it must include:

( i) Inventory year.

( ii) State FIPS code.

( iii) County FIPS code.

( iv) SCC.

( v) Emission factor. ( vi) Source of emission factor.

( vii) Activity/ throughput level( annual).

( viii) Activity throughput level( seasonal).

( ix) Source of activity/ throughput data.

( x) Spring throughput (%).

( xi) Summer throughput (%).

( xii) Fall throughput (%).

( xiii) Control efficiency (%).

( xiv) Pollutant code.

( xv) Ozone season emissions.

( xvi) Source of emissions data.

( xvii) Hour/ day in operation.

( xviii) Day/ week in operation.

( xix) Week/ year in operations.

( 2) The triennial inventories must contain, at a minimum,

all the data required in paragraph ( d)( 1) of this section.

( e) The data reported in paragraph ( b) of this section for mobile sources must meet the following minimum criteria:

( 1) For the annual and triennial inventory purposes, the following data must be reported:

( i) Inventory year.

( ii) State FIPS code.

( iii) County FIPS code.

( iv) SCC.

( v) Emission factor. ( vi) Source of emission factor.

( vii) Activity ( this must be reported for both highway and nonroad activity. Submit nonroad activity in the form of hours of activity at standard load ( either full load or average load)

for each engine type, application, and horsepower range. Submit highway activity in the form of vehicle miles traveled ( VMT) by vehicle class on each roadway type. Report both highway and nonroad activity for a typical ozone season weekday day, if the State uses EPA's default weekday/ weekend activity ratio. If the State uses a different weekday/ weekend activity ratio, submit separate activity level information for weekday days and weekend days.)

( viii) Source of activity data.

( ix) Pollutant code.

( x) Summer work weekday emissions.

( xi) Ozone season emissions.

( xii) Source of emissions data.

( 2) [ Reserved.]

( f) Approval of ozone season calculation by EPA. Each State must submit for EPA approval an example of the calculation procedure used to calculate ozone season emissions along with sufficient information for EPA to verify the calculated value of ozone season emissions.

( g) Reporting schedules.

( 1) Data collection is to begin during the ozone season one year prior to the State's NOX SIP Call compliance date.

( 2) Reports are to be submitted according to paragraph ( b)

of this section and the schedule in Table 1. After 2008,

trienniel reports are to be submitted every third year and annual reports are to be submitted each year that a trienniel report is not required.

Table 1. Schedule for Submitting Reports Data Collection Year Type of Report Required 2002 Trienniel 2003 Annual 2004 Annual 2005 Trienniel 2006 Annual 2007 Annual 2008 Trienniel ( 3) States must submit data for a required year no later than 12 months after the end of the calendar year for which the data are collected.

( h) Data Reporting Procedures. When submitting a formal NOX budget emissions report and associated data, States shall notify the appropriate EPA Regional Office.

( 1) States are required to report emissions data in an electronic format to EPA. Several options are available for data reporting. States can obtain information on the current formats at the following Internet address: http:// www. epa. gov/ ttn/ chief, by calling the EPA Info CHIEF help desk at ( 919) 541 1000 or by sending an email to info. chief@ epa. gov. Because electronic reporting technology continually changes, States are to contact the Emission Inventory Group ( EIG) for the latest specific formats.

( 2) For annual reporting ( not for triennial reports), a State may have sources submit the data directly to EPA to the extent the sources are subject to a trading program that qualifies for approval under § 51.121( q) of this part, and the State has agreed to accept data in this format. The EPA will make both the raw data submitted in this format and summary data available to any State that chooses this option.

( i) Definitions. As used in this section, the following words and terms shall have the meanings set forth below:

( 1) Annual emissions. Actual emissions for a plant, point,

or process, either measured or calculated.

( 2) Ash content. Inert residual portion of a fuel.

( 3) Area designation. The designation of the area in which the reporting source is located with regard to the ozone NAAQS.

This would include attainment or nonattainment designations. For nonattainment designations, the classification of the nonattainment area must be specified, i. e., transitional,

marginal, moderate, serious, severe, or extreme.

( 4) Boiler design capacity. A measure of the size of a boiler, based on the reported maximum continuous steam flow. Capacity is calculated in units of MMBtu/ hr.

( 5) Control device type. The name of the type of control device ( e. g., wet scrubber, flaring, or process change).

( 6) Control efficiency. The emissions reduction efficiency of a primary control device, which shows the amount of reductions of a particular pollutant from a process's emissions due to controls or material change. Control efficiency is usually expressed as a percentage or in tenths.

( 7) Day/ week in operations. Days per week that the emitting process operates.

( 8) Emission factor. Ratio relating emissions of a specific pollutant to an activity or material throughput level.

( 9) Exit gas flow rate. Numeric value of stack gas flow rate.

( 10) Exit gas temperature. Numeric value of an exit gas stream temperature.

( 11) Exit gas velocity. Numeric value of an exit gas stream velocity.

( 12) Fall throughput (%). Portion of throughput for the 3 fall months ( September, October, November). This represents the expression of annual activity information on the basis of four seasons, typically spring, summer, fall, and winter. It can be represented either as a percentage of the annual activity ( e. g.,

production in summer is 40 percent of the year's production), or in terms of the units of the activity ( e. g., out of 600 units produced, spring = 150 units, summer = 250 units, fall = 150 units, and winter = 50 units).

( 13) Federal ID code ( plant). Unique codes for a plant or facility, containing one or more pollutant emitting sources.

( 14) Federal ID code ( point). Unique codes for the point of generation of emissions, typically a physical piece of equipment.

( 15) Federal ID code ( stack number). Unique codes for the point where emissions from one or more processes are released into the atmosphere.

( 16) Federal Information Placement System ( FIPS). The system of unique numeric codes developed by the government to identify States, counties, towns, and townships for the entire United States, Puerto Rico, and Guam.

( 17) Heat content. The thermal heat energy content of a solid, liquid, or gaseous fuel. Fuel heat content is typically expressed in units of Btu/ lb of fuel, Btu/ gal of fuel, joules/ kg of fuel, etc.

( 18) Hr/ day in operations. Hours per day that the emitting process operates.

( 19) Maximum design rate. Maximum fuel use rate based on the equipment's or process' physical size or operational capabilities.

( 20) Maximum nameplate capacity. A measure of the size of a generator which is put on the unit's nameplate by the manufacturer. The data element is reported in megawatts ( MW) or kilowatts ( KW).

( 21) Mobile source. A motor vehicle, nonroad engine or nonroad vehicle, where:

( i) Motor vehicle means any self propelled vehicle designed for transporting persons or property on a street or highway;

( ii) Nonroad engine means an internal combustion engine ( including the fuel system) that is not used in a motor vehicle or a vehicle used solely for competition, or that is not subject to standards promulgated under section 111 or section 202 of the CAA;

( iii) Nonroad vehicle means a vehicle that is powered by a nonroad engine and that is not a motor vehicle or a vehicle used solely for competition.

( 22) Ozone season. The period May 1 through September 30 of a year.

( 23) Physical address. Street address of facility.

( 24) Point source. A non mobile source which emits 100 tons of NOX or more per year unless the State designates as a point source a non mobile source emitting at a specified level lower than 100 tons of NOX per year. A non mobile source which emits less NOX per year than the point source threshold is a non point source.

( 25) Pollutant code. A unique code for each reported pollutant that has been assigned in the EIIP Data Model. Character names are used for criteria pollutants, while Chemical Abstracts Service ( CAS) numbers are used for all other pollutants. Some States may be using storage and retrieval of aerometric data ( SAROAD) codes for pollutants, but these should be able to be mapped to the EIIP Data Model pollutant codes.

( 26) Process rate/ throughput. A measurable factor or parameter that is directly or indirectly related to the emissions of an air pollution source. Depending on the type of source category, activity information may refer to the amount of fuel combusted, the amount of a raw material processed, the amount of a product that is manufactured, the amount of a material that is handled or processed, population, employment, number of units, or miles traveled. Activity information is typically the value that is multiplied against an emission factor to generate an emissions estimate.

( 27) SCC. Source category code. A process level code that describes the equipment or operation emitting pollutants.

( 28) Secondary control efficiency (%). The emissions reductions efficiency of a secondary control device, which shows the amount of reductions of a particular pollutant from a process' emissions due to controls or material change. Control efficiency is usually expressed as a percentage or in tenths.

( 29) SIC. Standard Industrial Classification code. U. S.

Department of Commerce's categorization of businesses by their products or services. ( 30) Site name. The name of the facility.

( 31) Spring throughput (%). Portion of throughput or activity for the 3 spring months ( March, April, May). See the definition of Fall Throughput.

( 32) Stack diameter. Stack physical diameter.

( 33) Stack height. Stack physical height above the surrounding terrain.

( 34) Start date ( inventory year). The calendar year that the emissions estimates were calculated for and are applicable to.

( 35) Start time ( hour). Start time ( if available) that was applicable and used for calculations of emissions estimates.

( 36) Summer throughput (%). Portion of throughput or activity for the 3 summer months ( June, July, August). See the definition of Fall Throughput.

( 37) Summer work weekday emissions. Average day's emissions for a typical day.

( 38) VMT by Roadway Class. This is an expression of vehicle activity that is used with emission factors. The emission factors are usually expressed in terms of grams per mile of travel. Since VMT does not directly correlate to emissions that occur while the vehicle is not moving, these non moving emissions are incorporated into EPA's MOBILE model emission factors.

( 39) Week/ year in operation. Weeks per year that the emitting process operates. ( 40) Work Weekday. Any day of the week except Saturday or Sunday.

( 41) X coordinate ( longitude). An object's east west geographical coordinate.

( 42) Y coordinate ( latitude). An object's north south geographical coordinate.

3. Part 51 is amended by adding § 51.123 to Subpart G to read as follows:

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

( a)( 1) Under section 110( a)( 1) of the CAA, 42 U. S. C.

7410( a)( 1), the Administrator determines that each State identified in paragraph ( c)( 1) and ( 2) of this section must submit a SIP revision to comply with the requirements of section 110( a)( 2)( D)( i)( I) of the CAA, 42 U. S. C. 7410( a)( 2)( D)( i)( I),

through the adoption of adequate provisions prohibiting sources and other activities from emitting NOX in amounts that will contribute significantly to nonattainment in, or interfere with maintenance by, one or more other States with respect to the fine particles ( PM2.5) NAAQS.

( 2)( a) Under section 110( a)( 1) of the CAA, 42 U. S. C.

7410( a)( 1), the Administrator determines that each State identified in paragraph ( c)( 1) and ( 3) of this section must submit a SIP revision to comply with the requirements of section 110( a)( 2)( D)( i)( I) of the CAA, 42 U. S. C. 7410( a)( 2)( D)( i)( I),

through the adoption of adequate provisions prohibiting sources and other activities from emitting NOX in amounts that will contribute significantly to nonattainment in, or interfere with maintenance by, one or more other States with respect to the 8

hour ozone NAAQS.

( b) For each State identified in paragraph ( c) of this section, the SIP revision required under paragraph ( a) will contain adequate provisions, for purposes of complying with section 110( a)( 2)( D)( i)( I) of the CAA, 42 U. S. C.

7410( a)( 2)( D)( i)( I), only if the SIP revision contains control measures that assure compliance with the applicable requirements of this section.

( c) In addition to being subject to the requirements in paragraphs ( b) and ( d) of this section:

( 1) Alabama, Florida, Illinois, Indiana, Iowa, Kentucky,

Louisiana, Maryland, Michigan, Mississippi, Missouri, New York,

North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee,

Virginia, West Virginia, Wisconsin, and the District of Columbia shall be subject to the requirements contained in paragraphs ( e)

through ( cc) of this section;

( 2) Georgia, Minnesota, and Texas shall be subject to the requirements in paragraphs ( e) through ( o) and ( cc) of this section; and ( 3) Arkansas, Connecticut, Delaware, Massachusetts, and New Jersey shall be subject to the requirements contained in paragraphs ( q) through ( cc) of this section.

( d)( 1) The State's SIP revision under paragraph ( a) of this section must be submitted to EPA by no later than [ Insert the date 18 months ( 548 days) from the date on which the Administrator signs the final Clean Air Interstate Rule].

( 2) The requirements of appendix V to this part shall apply to the SIP revision under paragraph ( a) of this section.

( 3) The State shall deliver 5 copies of the SIP revision under paragraph ( a) of this section to the appropriate Regional Office, with a letter giving notice of such action.

( e) The State's SIP revision shall contain control measures and demonstrate that they will result in compliance with the State's Annual EGU NOX Budget, if applicable, and achieve the State's Annual Non EGU NOX Reduction Requirement, if applicable,

for the appropriate periods. The amounts of the State's Annual EGU NOX Budget and Annual Non EGU NOX Reduction Requirement shall be determined as follows:

( 1)( i) The Annual EGU NOX Budget for the State is defined as the total amount of NOX emissions from all EGUs in that State for a year, if the State meets the requirements of paragraph ( a)( 1)

of this section by imposing control measures, at least in part,

on EGUs. If the State imposes control measures under this section on only EGUs, the Annual EGU NOX Budget for the State shall not exceed the amount, during the indicated periods, specified in paragraph ( e)( 2) of this section.

( ii) The Annual Non EGU NOX Reduction Requirement, if applicable, is defined as the total amount of NOX emission reductions that the State demonstrates, in accordance with paragraph ( g) of this section, it will achieve from non EGUs during the appropriate period. If the State meets the requirements of paragraph ( a)( 1) of this section by imposing control measures on only non EGUs, then the State's Annual Non

EGU NOX Reduction Requirement shall equal or exceed, during the appropriate periods, the amount determined in accordance with paragraph ( e)( 3) of this section.

( iii) If a State meets the requirements of paragraph ( a)( 1)

of this section by imposing control measures on both EGUs and non EGUs, then:

( A) The Annual Non EGU NOX Reduction Requirement shall equal or exceed the difference between the amount specified in paragraph ( e)( 2) of this section for the appropriate period and the amount of the State's Annual EGU NOX Budget specified in the SIP revision for the appropriate period; and ( B) The Annual EGU NOX Budget shall not exceed, during the indicated periods, the amount specified in paragraph ( e)( 2) of this section plus the amount of the Annual Non EGU NOX Reduction Requirement under paragraph ( e)( 1)( iii)( A) of this section for the appropriate period.

( 2) For a State that complies with the requirements of paragraph ( a)( 1) of this section by imposing control measures on only EGUs, the amount of the Annual EGU NOX Budget, in tons of NOX per year, shall be as follows, for the indicated State for the indicated period:

State Annual EGU NOX Budget for 2009 2014 ( tons) Annual EGU NOX Budget for 2015 and thereafter ( tons) Alabama 69,020 57,517 District of Columbia 144 120 Florida 99,445 82,871 Georgia 66,321 55,268 Illinois 76,230 63,525 Indiana 108,935 90,779 Iowa 32,692 27,243 Kentucky 83,205 69,337 Louisiana 35,512 29,593 Maryland 27,724 23,104 Michigan 65,304 54,420 Minnesota 31,443 26,203 Mississippi 17,807 14,839 Missouri 59,871 49,892 New York 45,617 38,014 North Carolina 62,183 51,819 Ohio 108,667 90,556 Pennsylvania 99,049 82,541 South Carolina 32,662 27,219 Tennessee 50,973 42,478 Texas 181,014 150,845 Virginia 36,074 30,062 West Virginia 74,220 61,850 Wisconsin 40,759 33,966 ( 3) For a State that complies with the requirements of paragraph ( a)( 1) of this section by imposing control measures on only non EGUs, the amount of the Annual Non EGU NOX Reduction Requirement, in tons of NOX per year, shall be determined, for the State for 2009 and thereafter, by subtracting the amount of the State's Annual EGU NOX Budget for the appropriate year,

specified in paragraph ( e)( 2) of this section from the amount of the State's NOX baseline EGU emissions inventory projected for the appropriate year, specified in Table 5 of " Regional and State SO2 and NOX Budgets", March 2005 ( available at www. epa. gov/ cleanairinterstaterule).

( 4)( i) Notwithstanding the State's obligation to comply with paragraph ( e)( 2) or ( 3) of this section, the State's SIP revision may allow sources required by the revision to implement control measures to demonstrate compliance using credit issued from the State's compliance supplement pool, as set forth in paragraph ( e)( 4)( ii) of this section.

( ii) The State by State amounts of the compliance supplement pool are as follows:

State Compliance Supplement Pool Alabama 10,166 District Of Columbia 0 Florida 8,335 Georgia 12,397 Illinois 11,299 Indiana 20,155 Iowa 6,978 Kentucky 14,935 Louisiana 2,251 Maryland 4,670 Michigan 8,347 Minnesota 6,528 Mississippi 3,066 Missouri 9,044 New York 0 North Carolina 0 Ohio 25,037 Pennsylvania 16,009 South 2,600 Carolina Tennessee 8,944 Texas 772 Virginia 5,134 West Virginia 16,929 Wisconsin 4,898 ( iii) The SIP revision may provide for the distribution of credits from the compliance supplement pool to sources that are required to implement control measures using one or both of the following two mechanisms:

( A) The State may issue credit from compliance supplement pool to sources that are required by the SIP revision to implement NOX emission control measures and that implement NOX emission reductions in 2007 and 2008 that are not necessary to comply with any State or federal emissions limitation applicable at any time during such years. Such a source may be issued one credit from the compliance supplement pool for each ton of such emission reductions in 2007 and 2008.

( 1) The State shall complete the issuance process by January 1, 2010.

( 2) The emissions reductions for which credits are issued must have been demonstrated by the owners and operators of the source to have occurred during 2007 and 2008 and not to be necessary to comply with any applicable State or federal emissions limitation.

( 3) The emissions reductions for which credits are issued must have been quantified by the owners and operators of the source: ( i) For EGUs and for fossil fuel fired non EGUs that are boilers or combustion turbines with a maximum design heat input greater than 250 mmBut/ hr, using emissions data determined in accordance with subpart H of part 75 of this chapter; and ( ii) For non EGUs not described in paragraph ( e)( 4)( iii)( A)( 3)( i) of this section, using emissions data determined in accordance with subpart H of part 75 of this chapter or, if the State demonstrates that compliance with subpart H of part 75 of this chapter is not practicable,

determined, to the extent practicable, with the same degree of assurance with which emissions data are determined for sources subject to subpart H of part 75.

( 4) If the SIP revision contains approved provisions for an emissions trading program, the owners and operators of sources that receive credit according to the requirements of this paragraph may transfer the credit to other sources or persons according to the provisions in the emissions trading program.

( B) The State may issue credit from the compliance supplement pool to sources that are required by the SIP revision to implement NOX emission control measures and whose owners and operators demonstrate a need for an extension, beyond 2009, of the deadline for the source for implementing such emission controls.

( 1) The State shall complete the issuance process by January 1, 2010.

( 2) The State shall issue credit to a source only if the owners and operators of the source demonstrate that:

( i) For a source used to generate electricity,

implementation of the SIP revision's applicable control measures by 2009 would create undue risk for the reliability of the electricity supply. This demonstration must include a showing that it would not be feasible for the owners and operators of the source to obtain a sufficient amount of electricity, to prevent such undue risk, from other electricity generation facilities during the installation of control technology at the source necessary to comply with the SIP revision.

( ii) For a source not used to generate electricity,

compliance with the SIP revision's applicable control measures by 2009 would create undue risk for the source or its associated industry to a degree that is comparable to the risk described in paragraph ( e)( 4)( iii)( B)( 2)( i) of this section ( f) Each SIP revision must set forth control measures to meet the amounts specified in paragraph ( e) of this section, as applicable, including the following:

( 1) A description of enforcement methods including, but not limited to: ( i) Procedures for monitoring compliance with each of the selected control measures;

( ii) Procedures for handling violations; and ( iii) A designation of agency responsibility for enforcement of implementation.

( 2)( i) If a State elects to impose control measures on EGUs,

then those measures must impose an annual NOX mass emissions cap on all such sources in the State.

( ii) If a State elects to impose control measures on fossil fuel fired non EGUs that are boilers or combustion turbines with a maximum design heat input greater than 250 mmBtu/ hr, then those measures must impose an annual NOX mass emissions cap on all such sources in the State.

( iii) If a State elects to impose control measures on non

EGUs other than those described in paragraph ( f)( 2)( ii) of this section, then those measures must impose an annual NOX mass emissions cap on all such sources in the State or the State must demonstrate why such emissions cap is not practicable and adopt alternative requirements that ensure that the State will comply with its requirements under paragraph ( e) of this section, as applicable, in 2009 and subsequent years.

( g)( 1) Each SIP revision that contains control measures covering non EGUs as part or all of a State's obligation in meeting its requirement under paragraph ( a)( 1) of this section must demonstrate that such control measures are adequate to provide for the timely compliance with the State's Annual Non EGU NOX Reduction Requirement under paragraph ( e) of this section and are not adopted or implemented by the State, as of [ Insert the date of publication of the final Clean Air Interstate Rule], and are not adopted or implemented by the federal government, as of the date of submission of the SIP revision by the State to EPA.

( 2) The demonstration under paragraph ( g)( 1) of this section must include the following, with respect to each source category of non EGUs for which the SIP revision requires control measures:

( i) A detailed historical baseline inventory of NOX mass emissions from the source category in a representative year consisting, at the State's election, of 2002, 2003, 2004, or 2005, or an average of 2 or more of those years, absent the control measures specified in the SIP revision.

( A) This inventory must represent estimates of actual emissions based on monitoring data in accordance with subpart H of part 75 of this chapter, if the source category is subject to monitoring requirements in accordance with subpart H of part 75 of this chapter.

( B) In the absence of monitoring data in accordance with subpart H of part 75 of this chapter, actual emissions must be quantified, to the maximum extent practicable, with the same degree of assurance with which emissions are quantified for sources subject to subpart H of part 75 of this chapter and using source specific or source category specific assumptions that ensure a source's or source category's actual emissions are not overestimated. If a State uses factors to estimate emissions,

production or utilization, or effectiveness of controls or rules for a source category, such factors must be chosen to ensure that emissions are not overestimated.

( C) For measures to reduce emissions from motor vehicles,

emission estimates must be based on an emissions model that has been approved by EPA for use in SIP development and must be consistent with the planning assumptions regarding vehicle miles traveled and other factors current at the time of the SIP development.

( D) For measures to reduce emissions from nonroad engines or vehicles, emission estimates methodologies must be approved by EPA.

( ii) A detailed baseline inventory of NOX mass emissions from the source category in the years 2009 and 2015, absent the control measures specified in the SIP revision and reflecting changes in these emissions from the historical baseline year to the years 2009 and 2015, based on projected changes in the production input or output, population, vehicle miles traveled,

economic activity, or other factors as applicable to this source category.

( A) These inventories must account for implementation of any control measures that are otherwise required by final rules already promulgated, as of [ Insert the date of publication of the final Clean Air Interstate Rule], or adopted or implemented by any federal agency, as of the date of submission of the SIP revision by the State to EPA, and must exclude any control measures specified in the SIP revision to meet the NOX emissions reduction requirements of this section.

( B) Economic and population forecasts must be as specific as possible to the applicable industry, State, and county of the source or source category and must be consistent with both national projections and relevant official planning assumptions,

including estimates of population and vehicle miles traveled developed through consultation between State and local transportation and air quality agencies. However, if these official planning assumptions are inconsistent with official U. S.

Census projections of population or with energy consumption projections contained in the U. S. Department of Energy's most recent Annual Energy Outlook, then the SIP revision must make adjustments to correct the inconsistency or must demonstrate how the official planning assumptions are more accurate.

( C) These inventories must account for any changes in production method, materials, fuels, or efficiency that are expected to occur between the historical baseline year and 2009 or 2015, as appropriate.

( iii) A projection of NOX mass emissions in 2009 and 2015 from the source category assuming the same projected changes as under paragraph ( g)( 2)( ii) of this section and resulting from implementation of each of the control measures specified in the SIP revision.

( A) These inventories must address the possibility that the State's new control measures may cause production or utilization,

and emissions, to shift to unregulated or less stringently regulated sources in the source category in the same or another State, and these inventories must include any such amounts of emissions that may shift to such other sources.

( B) The State must provide EPA with a summary of the computations, assumptions, and judgments used to determine the degree of reduction in projected 2009 and 2015 NOX emissions that will be achieved from the implementation of the new control measures compared to the relevant baseline emissions inventory.

( iv) The result of subtracting the amounts in paragraph ( g)( 2)( iii) of this section for 2009 and 2015, respectively, from the lower of the amounts in paragraph ( g)( 2)( i) or ( g)( 2)( ii) of this section for 2009 and 2015, respectively, may be credited towards the State's Annual Non EGU NOX Reduction Requirement in paragraph ( e)( 3) of this section for the appropriate period.

( v) Each SIP revision must identify the sources of the data used in each estimate and each projection of emissions.

( h) Each SIP revision must comply with § 51.116 ( regarding data availability).

( i) Each SIP revision must provide for monitoring the status of compliance with any control measures adopted to meet the State's requirements under paragraph ( e) of this section as follows:

( 1) The SIP revision must provide for legally enforceable procedures for requiring owners or operators of stationary sources to maintain records of, and periodically report to the State:

( i) Information on the amount of NOX emissions from the stationary sources; and ( ii) Other information as may be necessary to enable the State to determine whether the sources are in compliance with applicable portions of the control measures;

( 2) The SIP revision must comply with § 51.212 ( regarding testing, inspection, enforcement, and complaints);

( 3) If the SIP revision contains any transportation control measures, then the SIP revision must comply with § 51.213 ( regarding transportation control measures);

( 4)( i) If the SIP revision contains measures to control EGUs, then the SIP revision must require such sources to comply with the monitoring, recordkeeping, and reporting provisions of subpart H of part 75 of this chapter.

( ii) If the SIP revision contains measures to control fossil fuel fired non EGUs that are boilers or combustion turbines with a maximum design heat input greater than 250 mmBtu/ hr, then the SIP revision must require such sources to comply with the monitoring, recordkeeping, and reporting provisions of subpart H of part 75 of this chapter.

( iii) If the SIP revision contains measures to control any other non EGUs that are not described in paragraph ( i)( 4)( ii) of this section, then the SIP revision must require such sources to comply with the monitoring, recordkeeping, and reporting provisions of subpart H of part 75 of this chapter, or the State must demonstrate why such requirements are not practicable and adopt alternative requirements that ensure that the required emissions reductions will be quantified, to the maximum extent practicable, with the same degree of assurance with which emissions are quantified for sources subject to subpart H of part 75 of this chapter.

( j) Each SIP revision must show that the State has legal authority to carry out the SIP revision, including authority to:

( 1) Adopt emissions standards and limitations and any other measures necessary for attainment and maintenance of the State's relevant Annual EGU NOX Budget or the Annual Non EGU NOX Reduction Requirement, as applicable, under paragraph ( e);

( 2) Enforce applicable laws, regulations, and standards and seek injunctive relief;

( 3) Obtain information necessary to determine whether air pollution sources are in compliance with applicable laws,

regulations, and standards, including authority to require recordkeeping and to make inspections and conduct tests of air pollution sources; and ( 4)( i) Require owners or operators of stationary sources to install, maintain, and use emissions monitoring devices and to make periodic reports to the State on the nature and amounts of emissions from such stationary sources; and ( ii) Make the data described in paragraph ( j)( 4)( i) of this section available to the public within a reasonable time after being reported and as correlated with any applicable emissions standards or limitations.

( k)( 1) The provisions of law or regulation that the State determines provide the authorities required under this section must be specifically identified, and copies of such laws or regulations must be submitted with the SIP revision.

( 2) Legal authority adequate to fulfill the requirements of paragraphs ( j)( 3) and ( 4) of this section may be delegated to the State under section 114 of the CAA.

( l)( 1) A SIP revision may assign legal authority to local agencies in accordance with § 51.232.

( 2) Each SIP revision must comply with § 51.240 ( regarding general plan requirements).

( m) Each SIP revision must comply with § 51.280 ( regarding resources).

( n) Each SIP revision must provide for State compliance with the reporting requirements in § 51.125.

( o)( 1) Notwithstanding any other provision of this section,

if a State adopts regulations substantively identical to subparts AA through II of part 96 of this chapter ( CAIR NOX Annual Trading Program), incorporates such subparts by reference into its regulations, or adopts regulations that differ substantively from such subparts only as set forth in paragraph ( o)( 2) of this section, then such emissions trading program in the State's SIP revision is automatically approved as meeting the requirements of paragraph ( e) of this section, provided that the State has the legal authority to take such action and to implement its responsibilities under such regulations.

( 2) If a State adopts an emissions trading program that differs substantively from subparts AA through II of part 96 of this chapter only as follows, then the emissions trading program is approved as set forth in paragraph ( o)( 1) of this section.

( i) The State may decline to adopt the CAIR NOX opt in provisions of:

( A) Subpart II of this part and the provisions applicable only to CAIR NOX opt in units in subparts AA through HH of this part;

( B) § 96.188( b) and the provisions of subpart II of this part applicable only to CAIR NOX opt in units under § 96.188( b); or ( C) § 96.188( c) and the provisions of subpart II of this part applicable only to CAIR NOX opt in units under § 96.188( c).

( ii) The State may decline to adopt the allocation provisions set forth in subpart EE of part 96 of this chapter and may instead adopt any methodology for allocating CAIR NOX allowances to individual sources, as follows:

( A) The State's methodology must not allow the State to allocate CAIR NOX allowances for a year in excess of the amount in the State's Annual EGU NOX Budget for such year;

( B) The State's methodology must require that, for EGUs commencing operation before January 1, 2000, the State will determine, and notify the Administrator of, each unit's allocation of CAIR NOX allowances by October 31, 2006 for 2009,

2010, and 2011 and by October 31, 2008 and October 31 of each year thereafter for the year 4 years after the notification deadline; and ( C) The State's methodology must require that, for EGUs commencing operation on or after January 1, 2000, the State will determine, and notify the Administrator of, each unit's allocation of CAIR NOX allowances by October 31 of the year immediately after the year for which the CAIR NOX allowances are allocated.

( 3) A State that adopts an emissions trading program in accordance with paragraph ( o)( 1) or ( 2) of this section is not required to adopt an emissions trading program in accordance with paragraph ( aa)( 1) or ( 2) of this section or § 96.124( o)( 1) or ( 2).

( 4) If a State adopts an emissions trading program that differs substantively from subparts AA through HH of part 96 of this chapter, other than as set forth in paragraph ( o)( 2) of this section, then such emissions trading program is not automatically approved as set forth in paragraph ( o)( 1) or ( 2) of this section and will be reviewed by the Administrator for approvability in accordance with the other provisions of this section, provided that the NOX allowances issued under such emissions trading program shall not, and the SIP revision shall state that such NOX allowances shall not, qualify as CAIR NOX allowances or CAIR NOX Ozone Season allowances under any emissions trading program approved under paragraphs ( o)( 1) or ( 2) or ( aa)( 1) or ( 2) of this section.

( q) The State's SIP revision shall contain control measures and demonstrate that they will result in compliance with the State's Ozone Season EGU NOX Budget, if applicable, and achieve the State's Ozone Season Non EGU NOX Reduction Requirement, if applicable, for the appropriate periods. The amounts of the State's Ozone Season EGU NOX Budget and Ozone Season Non EGU NOX Reduction Requirement shall be determined as follows:

( 1)( i) The Ozone Season EGU NOX Budget for the State is defined as the total amount of NOX emissions from all EGUs in that State for an ozone season, if the State meets the requirements of paragraph ( a)( 2) of this section by imposing control measures, at least in part, on EGUs. If the State imposes control measures under this section on only EGUs, the Ozone Season EGU NOX Budget for the State shall not exceed the amount, during the indicated periods, specified in paragraph ( q)( 2) of this section.

( ii) The Ozone Season Non EGU NOX Reduction Requirement, if applicable, is defined as the total amount of NOX emission reductions that the State demonstrates, in accordance with paragraph ( s) of this section, it will achieve from non EGUs during the appropriate period. If the State meets the requirements of paragraph ( a)( 2) of this section by imposing control measures on only non EGUs, then the State's Ozone Season Non EGU NOX Reduction Requirement shall equal or exceed, during the appropriate periods, the amount determined in accordance with paragraph ( q)( 3) of this section.

( iii) If a State meets the requirements of paragraph ( a)( 2)

of this section by imposing control measures on both EGUs and non EGUs, then:

( A) The Ozone Season Non EGU NOX Reduction Requirement shall equal or exceed the difference between the amount specified in paragraph ( q)( 2) of this section for the appropriate period and the amount of the State's Ozone Season EGU NOX Budget specified in the SIP revision for the appropriate period; and ( B) The Ozone Season EGU NOX Budget shall not exceed, during the indicated periods, the amount specified in paragraph ( e)( 2)

of this section plus the amount of the Ozone Season Non EGU NOX Reduction Requirement under paragraph ( q)( 1)( iii)( A) of this section for the appropriate period. ( 2) For a State that complies with the requirements of paragraph ( a)( 2) of this section by imposing control measures on only EGUs, the amount of the Ozone Season EGU NOX Budget, in tons of NOX per ozone season, shall be as follows, for the indicated State for the indicated period:

State Ozone Season EGU NOX Budget for 2009

2014 ( tons) Ozone Season EGU NOX Budget for 2015 and thereafter ( tons) Alabama 32,182 26,818 Arkansas 11,515 9,596 Connecticut 2,559 2,559 Delaware 2,226 1,855 District of Columbia 112 94 Florida 47,912 39,926 Illinois 30,701 28,981 Indiana 45,952 39,273 Iowa 14,263 11,886 Kentucky 36,045 30,587 Louisiana 17,085 14,238 Maryland 12,834 10,695 Massachusetts 7,551 6,293 Michigan 28,971 24,142 Mississippi 8,714 7,262 Missouri 26,678 22,231 New Jersey 6,654 5,545 New York 20,632 17,193 North Carolina 28,392 23,660 Ohio 45,664 39,945 Pennsylvania 42,171 35,143 South Carolina 15,249 12,707 Tennessee 22,842 19,035 Virginia 15,994 13,328 West Virginia 26,859 26,525 Wisconsin 17,987 14,989 ( 3) For a State that complies with the requirements of paragraph ( a)( 2) of this section by imposing control measures on only non EGUs, the amount of the Ozone Season Non EGU NOX Reduction Requirement, in tons of NOX per ozone season, shall be determined, for the State for 2009 and thereafter, by subtracting the amount of the State's Ozone Season EGU NOX Budget for the appropriate year, specified in paragraph ( e)( 2) of this section, from the amount of the State's NOX baseline EGU emissions inventory projected for the ozone season in the appropriate year,

specified in Table 7 of " Regional and State SO2 and NOX Budgets",

March 2005 ( available at: www. epa. gov/ cleanairinterstaterule).

( 4) Notwithstanding the State's obligation to comply with paragraph ( q)( 2) or ( 3) of this section, the State's SIP revision may allow sources required by the revision to implement NOX emission control measures to demonstrate compliance using NOx SIP Call allowances allocated under the NOX Budget Trading Program for any ozone season during 2003 through 2008 that have not been deducted by the Administrator under the NOX Budget Trading Program, if the SIP revision ensures that such allowances will not be available for such deduction under the NOX Budget Trading Program.

( r) Each SIP revision must set forth control measures to meet the amounts specified in paragraph ( q) of this section, as applicable, including the following:

( 1) A description of enforcement methods including, but not limited to:

( i) Procedures for monitoring compliance with each of the selected control measures;

( ii) Procedures for handling violations; and ( iii) A designation of agency responsibility for enforcement of implementation.

( 2)( i) If a State elects to impose control measures on EGUs, then those measures must impose an ozone season NOX mass emissions cap on all such sources in the State.

( ii) If a State elects to impose control measures on fossil fuel fired non EGUs that are boilers or combustion turbines with a maximum design heat input greater than 250 mmBtu/ hr, then those measures must impose an ozone season NOX mass emissions cap on all such sources in the State.

( iii) If a State elects to impose control measures on non

EGUs other than those described in paragraph ( r)( 2)( ii) of this section, then those measures must impose an ozone season NOX mass emissions cap on all such sources in the State or the State must demonstrate why such emissions cap is not practicable and adopt alternative requirements that ensure that the State will comply with its requirements under paragraph ( q) of this section, as applicable, in 2009 and subsequent years.

( s)( 1) Each SIP revision that contains control measures covering non EGUs as part or all of a State's obligation in meeting its requirement under paragraph ( a)( 2) of this section must demonstrate that such control measures are adequate to provide for the timely compliance with the State's Ozone Season Non EGU NOX Reduction Requirement under paragraph ( q) of this section and are not adopted or implemented by the State, as of [ Insert the date of publication of the final Clean Air Interstate Rule], and are not adopted or implemented by the federal government, as of the date of submission of the SIP revision by the State to EPA.

( 2) The demonstration under paragraph ( s)( 1) of this section must include the following, with respect to each source category of non EGUs for which the SIP revision requires control measures:

( i) A detailed historical baseline inventory of NOX mass emissions from the source category in a representative ozone season consisting, at the State's election, of the ozone season in 2002, 2003, 2004, or 2005, or an average of 2 or more of those ozone seasons, absent the control measures specified in the SIP revision.

( A) This inventory must represent estimates of actual emissions based on monitoring data in accordance with subpart H of part 75 of this chapter, if the source category is subject to monitoring requirements in accordance with subpart H of part 75 of this chapter.

( B) In the absence of monitoring data in accordance with subpart H of part 75 of this chapter, actual emissions must be quantified, to the maximum extent practicable, with the same degree of assurance with which emissions are quantified for sources subject to subpart H of part 75 of this chapter and using source specific or source category specific assumptions that ensure a source's or source category's actual emissions are not overestimated. If a State uses factors to estimate emissions,

production or utilization, or effectiveness of controls or rules for a source category, such factors must be chosen to ensure that emissions are not overestimated.

( C) For measures to reduce emissions from motor vehicles,

emission estimates must be based on an emissions model that has been approved by EPA for use in SIP development and must be consistent with the planning assumptions regarding vehicle miles traveled and other factors current at the time of the SIP development.

( D) For measures to reduce emissions from nonroad engines or vehicles, emission estimates methodologies must be approved by EPA.

( ii) A detailed baseline inventory of NOX mass emissions from the source category in ozone seasons 2009 and 2015, absent the control measures specified in the SIP revision and reflecting changes in these emissions from the historical baseline ozone season to the ozone seasons 2009 and 2015, based on projected changes in the production input or output, population, vehicle miles traveled, economic activity, or other factors as applicable to this source category.

( A) These inventories must account for implementation of any control measures that are adopted or implemented by the State, as of [ Insert the date of publication of the final Clean Air Interstate Rule], or adopted or implemented by the federal government, as of the date of submission of the SIP revision by the State to EPA, and must exclude any control measures specified in the SIP revision to meet the NOX emissions reduction requirements of this section.

( B) Economic and population forecasts must be as specific as possible to the applicable industry, State, and county of the source or source category and must be consistent with both national projections and relevant official planning assumptions,

including estimates of population and vehicle miles traveled developed through consultation between State and local transportation and air quality agencies. However, if these official planning assumptions are inconsistent with official U. S.

Census projections of population or with energy consumption projections contained in the U. S. Department of Energy's most recent Annual Energy Outlook, then the SIP revision must make adjustments to correct the inconsistency or must demonstrate how the official planning assumptions are more accurate.

( C) These inventories must account for any changes in production method, materials, fuels, or efficiency that are expected to occur between the historical baseline ozone season and ozone season 2009 or ozone season 2015, as appropriate.

( iii) A projection of NOX mass emissions in ozone season 2009 and ozone season 2015 from the source category assuming the same projected changes as under paragraph ( s)( 2)( ii) of this section and resulting from implementation of each of the control measures specified in the SIP revision.

( A) These inventories must address the possibility that the State's new control measures may cause production or utilization, and emissions, to shift to unregulated or less stringently regulated sources in the source category in the same or another State, and these inventories must include any such amounts of emissions that may shift to such other sources.

( B) The State must provide EPA with a summary of the computations, assumptions, and judgments used to determine the degree of reduction in projected ozone season 2009 and ozone season 2015 NOX emissions that will be achieved from the implementation of the new control measures compared to the relevant baseline emissions inventory.

( iv) The result of subtracting the amounts in paragraph ( s)( 2)( iii) of this section for ozone season 2009 and ozone season 2015, respectively, from the lower of the amounts in paragraph ( s)( 2)( i) or ( s)( 2)( ii) of this section for ozone season 2009 and ozone season 2015, respectively, may be credited towards the State's Ozone Season Non EGU NOX Reduction Requirement in paragraph ( q)( 3) of this section for the appropriate period.

( v) Each SIP revision must identify the sources of the data used in each estimate and each projection of emissions.

( t) Each SIP revision must comply with § 51.116 ( regarding data availability).

( u) Each SIP revision must provide for monitoring the status of compliance with any control measures adopted to meet the State's requirements under paragraph ( q) of this section as follows:

( 1) The SIP revision must provide for legally enforceable procedures for requiring owners or operators of stationary sources to maintain records of, and periodically report to the State:

( i) Information on the amount of NOX emissions from the stationary sources; and ( ii) Other information as may be necessary to enable the State to determine whether the sources are in compliance with applicable portions of the control measures;

( 2) The SIP revision must comply with § 51.212 ( regarding testing, inspection, enforcement, and complaints);

( 3) If the SIP revision contains any transportation control measures, then the SIP revision must comply with § 51.213 ( regarding transportation control measures);

( 4)( i) If the SIP revision contains measures to control EGUs, then the SIP revision must require such sources to comply with the monitoring, recordkeeping, and reporting provisions of subpart H of part 75 of this chapter.

( ii) If the SIP revision contains measures to control fossil fuel fired non EGUs that are boilers or combustion turbines with a maximum design heat input greater than 250 mmBtu/ hr, then the SIP revision must require such sources to comply with the monitoring, recordkeeping, and reporting provisions of subpart H of part 75 of this chapter. ( iii) If the SIP revision contains measures to control any other non EGUs that are not described in paragraph ( u)( 4)( ii) of this section, then the SIP revision must require such sources to comply with the monitoring, recordkeeping, and reporting provisions of subpart H of part 75 of this chapter, or the State must demonstrate why such requirements are not practicable and adopt alternative requirements that ensure that the required emissions reductions will be quantified, to the maximum extent practicable, with the same degree of assurance with which emissions are quantified for sources subject to subpart H of part 75 of this chapter.

( v) Each SIP revision must show that the State has legal authority to carry out the SIP revision, including authority to:

( 1) Adopt emissions standards and limitations and any other measures necessary for attainment and maintenance of the State's relevant Ozone Season EGU NOX Budget or the Ozone Season Non EGU NOX Reduction Requirement, as applicable, under paragraph ( q);

( 2) Enforce applicable laws, regulations, and standards and seek injunctive relief;

( 3) Obtain information necessary to determine whether air pollution sources are in compliance with applicable laws,

regulations, and standards, including authority to require recordkeeping and to make inspections and conduct tests of air pollution sources; and ( 4)( i) Require owners or operators of stationary sources to install, maintain, and use emissions monitoring devices and to make periodic reports to the State on the nature and amounts of emissions from such stationary sources; and ( ii) Make the data described in paragraph ( v)( 4)( i) of this section available to the public within a reasonable time after being reported and as correlated with any applicable emissions standards or limitations.

( w)( 1) The provisions of law or regulation that the State determines provide the authorities required under this section must be specifically identified, and copies of such laws or regulations must be submitted with the SIP revision.

( 2) Legal authority adequate to fulfill the requirements of paragraphs ( v)( 3) and ( 4) of this section may be delegated to the State under section 114 of the CAA.

( x)( 1) A SIP revision may assign legal authority to local agencies in accordance with § 51.232.

( 2) Each SIP revision must comply with § 51.240 ( regarding general plan requirements).

( y) Each SIP revision must comply with § 51.280 ( regarding resources).

( z) Each SIP revision must provide for State compliance with the reporting requirements in § 51.125.

( aa)( 1) Notwithstanding any other provision of this section,

if a State adopts regulations substantively identical to subparts AAAA through IIII of part 96 of this chapter ( CAIR Ozone Season NOX Trading Program), incorporates such subparts by reference into its regulations, or adopts regulations that differ substantively from such subparts only as set forth in paragraph ( aa)( 2) of this section, then such emissions trading program in the State's SIP revision is automatically approved as meeting the requirements of paragraph ( q) of this section, provided that the State has the legal authority to take such action and to implement its responsibilities under such regulations.

( 2) If a State adopts an emissions trading program that differs substantively from subparts AAAA through IIII of part 96 of this chapter only as follows, then the emissions trading program is approved as set forth in paragraph ( aa)( 1) of this section.

( i) The State may expand the applicability provisions in § 96.104 to include all non EGUs subject to the State's emissions trading program approved under § 51.121( p).

( ii) The State may decline to adopt the CAIR NOX Ozone Season opt in provisions of:

( A) Subpart IIII of this part and the provisions applicable only to CAIR NOX Ozone Season opt in units in subparts AAAA through HHHH of this part;

( B) § 96.388( b) and the provisions of subpart IIII of this part applicable only to CAIR NOX Ozone Season opt in units under § 96.388( b); or ( C) § 96.388( c) and the provisions of subpart IIII of this part applicable only to CAIR NOX Ozone Season opt in units under § 96.388( c).

( iii) The State may decline to adopt the allocation provisions set forth in subpart EEEE of part 96 of this chapter and may instead adopt any methodology for allocating CAIR NOX Ozone Season allowances to individual sources, as follows:

( A) The State may provide for issuance of an amount of CAIR Ozone Season NOX allowances for an ozone season, in addition to the amount in the State's Ozone Season EGU NOX Budget for such ozone season, not exceeding the amount of NOX SIP Call allowances allocated for the ozone season under the NOX Budget Trading Program to non EGUs that the applicability provisions in § 96.104 are expanded to include under paragraph ( aa)( 2)( i) of this section;

( B) The State's methodology must not allow the State to allocate CAIR Ozone Season NOX allowances for an ozone season in excess of the amount in the State's Ozone Season EGU NOX Budget for such ozone season plus any additional amount of CAIR Ozone Season NOX allowances issued under paragraph ( aa)( 2)( iii)( A) of this section for such ozone season;

( C) The State's methodology must require that, for EGUs commencing operation before January 1, 2000, the State will determine, and notify the Administrator of, each unit's allocation of CAIR NOX allowances by October 31, 2006 for the ozone seasons 2009, 2010, and 2011 and by October 31, 2008 and October 31 of each year thereafter for the ozone season 4 years after the notification deadline; and ( D) The State's methodology must require that, for EGUs commencing operation on or after January 1, 2000, the State will determine, and notify the Administrator of, each unit's allocation of CAIR Ozone Season NOX allowances by July 31 of the calendar year of the ozone season for which the CAIR Ozone Season NOX allowances are allocated.

( 3) A State that adopts an emissions trading program in accordance with paragraph ( aa)( 1) or ( 2) of this section is not required to adopt an emissions trading program in accordance with paragraph ( o)( 1) or ( 2) of this section or § 51.153( o)( 1) or ( 2).

( 4) If a State adopts an emissions trading program that differs substantively from subparts AAAA through IIII of part 96 of this chapter, other than as set forth in paragraph ( aa)( 2) of this section, then such emissions trading program is not automatically approved as set forth in paragraph ( aa)( 1) or ( 2)

of this section and will be reviewed by the Administrator for approvability in accordance with the other provisions of this section, provided that the NOX allowances issued under such emissions trading program shall not, and the SIP revision shall state that such NOX allowances shall not, qualify as CAIR NOX allowances or CAIR Ozone Season NOX allowances under any emissions trading program approved under paragraphs ( o)( 1) or ( 2)

or ( aa)( 1) or ( 2) of this section. ( bb)( 1)( i) The State may revise its SIP to provide that, for each ozone season during which a State implements control measures on EGUs or non EGUs through an emissions trading program approved under paragraph ( aa)( 1) or ( 2) of this section, such EGUs and non EGUs shall not be subject to the requirements of the State's SIP meeting the requirements of § 51.121, if the State meets the requirement in paragraph ( bb)( 1)( ii) of this section.

( ii) For a State under paragraph ( bb)( 1)( i) of this section,

if the State's amount of tons specified in paragraph ( q)( 2) of this section exceeds the State's amount of NOX SIP Call allowances allocated for the ozone season in 2009 or in any year thereafter for the same types and sizes of units as those covered by the amount of tons specified in paragraph ( q)( 2) of this section, then the State must replace the former amount for such ozone season by the latter amount for such ozone season in applying paragraph ( q) of this section.

( 2) Rhode Island may revise its SIP to provide that, for each ozone season during which Rhode Island implements control measures on EGUs and non EGUs through an emissions trading program adopted in regulations that differ substantively from subparts AAAA through IIII of part 96 of this chapter as set forth in this paragraph, such EGUs and non EGUs shall not be subject to the requirements of the State's SIP meeting the requirements of § 51.121.

( i) Rhode Island must expand the applicability provisions in § 96.104 to include all non EGUs subject to Rhode Island's emissions trading program approved under § 51.121( p).

( ii) Rhode Island may decline to adopt the CAIR NOX Ozone Season opt in provisions of:

( A) Subpart IIII of this part and the provisions applicable only to CAIR NOX Ozone Season opt in units in subparts AAAA through HHHH of this part;

( B) § 96.388( b) and the provisions of subpart IIII of this part applicable only to CAIR NOX Ozone Season opt in units under § 96.388( b); or ( C) § 96.388( c) and the provisions of subpart IIII of this part applicable only to CAIR NOX Ozone Season opt in units under § 96.388( c).

( iii) Rhode Island may adopt the allocation provisions set forth in subpart EEEE of part 96 of this chapter, provided that Rhode Island must provide for issuance of an amount of CAIR Ozone Season NOX allowances for an ozone season not exceeding 936 tons for 2009 and thereafter;

( iv) Rhode Island may adopt any methodology for allocating CAIR NOX Ozone Season allowances to individual sources, as follows:

( A) Rhode Island's methodology must not allow Rhode Island to allocate CAIR Ozone Season NOX allowances for an ozone season in excess of 936 tons for 2009 and thereafter;

( B) Rhode Island's methodology must require that, for EGUs DRAFT  12/ 2/ 04 commencing operation before January 1, 2000, Rhode Island will determine, and notify the Administrator of, each unit's allocation of CAIR NOX allowances by October 31, 2006 for the ozone seasons 2009, 2010, and 2011 and by October 31, 2008 and October 31 of each year thereafter for the ozone season 4 years after the notification deadline; and ( C) Rhode Island's methodology must require that, for EGUs commencing operation on or after January 1, 2000, Rhode Island will determine, and notify the Administrator of, each unit's allocation of CAIR Ozone Season NOX allowances by July 31 of the calendar year of the ozone season for which the CAIR Ozone Season NOX allowances are allocated.

( 3) Notwithstanding a SIP revision by a State authorized under paragraph ( bb)( 1) of this section or by Rhode Island, if the State's or Rhode Island's SIP that, without such SIP revision, imposes control measures on EGUs or non EGUs under § 51.121 is determined by the Administrator to meet the requirements of § 51.121, such SIP shall be deemed to continue to meet the requirements of § 51.121.

( cc) The terms used in this section shall have the following meanings:

Administrator means the Administrator of the United States Environmental Protection Agency or the Administrator's duly authorized representative. DRAFT  12/ 2/ 04 Allocate or allocation means, with regard to allowances, the determination of the amount of allowances to be initially credited to a source.

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.

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

7401, et seq.

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 operation means to have begun any mechanical,

chemical, or electronic process, including, with regard to a unit, start up of a unit's combustion chamber.

Electric generating unit or EGU means:

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

a stationary, fossil fuel fired boiler or stationary,

fossilfuel fired combustion turbine serving at any time, since the start up of a unit's combustion chamber, a generator with DRAFT  12/ 2/ 04 nameplate capacity of more than 25 MWe producing electricity for sale.

( 2) 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 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 ( 1) of this definition starting on the day on which the unit first no longer qualifies as a cogeneration unit.

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

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

Generator means a device that produces electricity.

Maximum design heat input means:

( 1) Starting with the initial installation of a unit, the maximum amount of fuel per hour ( in Btu/ hr) that a unit is DRAFT  12/ 2/ 04 capable of combusting on a steady state basis as specified by the manufacturer of the unit;

( 2)( i) Except as provided in paragraph ( 2)( ii) of this definition, starting with the completion of any subsequent physical change in the unit resulting in an increase in the maximum amount of fuel per hour ( in Btu/ hr) that a unit is capable of combusting on a steady state basis as of such completion, such increased maximum amount as specified by the person conducting the physical change; or ( ii) For purposes of applying the definition of the term " potential electrical output capacity," starting with 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 as of such completion, such decreased maximum amount as specified by the person conducting the physical change.

NAAQS means National Ambient Qir Quality Standard.

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 DRAFT  12/ 2/ 04 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.

Non EGU means a source of NOX emissions that is not an EGU.

NOX Budget Trading Program means a multi state nitrogen oxide air pollution control and emission reduction program approved and administered by the Administrator in accordance with subparts A through I of this part and § 51.121 of this chapter,

as a means of mitigating interstate transport of ozone and nitrogen oxides.

NOX SIP Call allowance means a limited authorization issued by the Administrator under the NOX Budget Trading Program to emit up to one ton of nitrogen oxides during the ozone season of the specified year or any year thereafter, provided that the provision in § 51.121( b)( 2)( ii)( E) of this chapter shall not be used in applying this definition.

Ozone season means the period, which begins May 1 and ends September 30 of any year.

Potential electrical output capacity means 33 percent of a unit's maximum design heat input, divided by 3,413 Btu/ kWh,

divided by 1,000 kWh/ MWh, and multiplied by 8,760 hr/ yr.

Sequential use of energy means: DRAFT  12/ 2/ 04 ( 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.

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 a stationary, fossil fuel fired combustion turbine.

Useful power means, with regard to a cogeneration unit,

electricity or mechanical energy made available for use,

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

Useful thermal energy means, with regard to a cogeneration unit, thermal energy that is:

( 1) Made available to an industrial or commercial process,

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.

( dd) New Hampshire may revise its SIP to implements control measures on EGUs and non EGUs through an emissions trading program adopted in regulations that differ substantively from subparts AAAA through IIII of part 96 of this chapter as set forth in this paragraph.

( 1) New Hampshire must expand the applicability provisions in § 96.104 to include all non EGUs subject to New Hampshire's emissions trading program at New Hampshire Code of Administrative Rules, chapter Env A 3200 ( 2004).

( 2) New Hampshire may decline to adopt the CAIR NOX Ozone Season opt in provisions of: DRAFT  12/ 2/ 04 ( i) Subpart IIII of this part and the provisions applicable only to CAIR NOX Ozone Season opt in units in subparts AAAA through HHHH of this part;

( ii) § 96.388( b) and the provisions of subpart IIII of this part applicable only to CAIR NOX Ozone Season opt in units under § 96.388( b); or ( iii) § 96.388( c) and the provisions of subpart IIII of this part applicable only to CAIR NOX Ozone Season opt in units under § 96.388( c).

( 3) New Hampshire may adopt the allocation provisions set forth in subpart EEEE of part 96 of this chapter, provided that New Hampshire must provide for issuance of an amount of CAIR Ozone Season NOX allowances for an ozone season not exceeding 3,000 tons for 2009 and thereafter;

( 4) New Hampshire may adopt any methodology for allocating CAIR NOX Ozone Season allowances to individual sources, as follows:

( i) New Hampshire's methodology must not allow New Hampshire to allocate CAIR Ozone Season NOX allowances for an ozone season in excess of 3,000 tons for 2009 and thereafter;

( ii) New Hampshire's methodology must require that, for EGUs commencing operation before January 1, 2000, New Hampshire will determine, and notify the Administrator of, each unit's allocation of CAIR NOX allowances by October 31, 2006 for the DRAFT  12/ 2/ 04 ozone seasons 2009, 2010, and 2011 and by October 31, 2008 and October 31 of each year thereafter for the ozone season 4 years after the notification deadline; and ( iii) New Hampshire's methodology must require that, for EGUs commencing operation on or after January 1, 2000, New Hampshire will determine, and notify the Administrator of, each unit's allocation of CAIR Ozone Season NOX allowances by July 31 of the calendar year of the ozone season for which the CAIR Ozone Season NOX allowances are allocated.

4. Part 51 is amended by adding § 51.124 to Subpart G to read as follows:

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

( a) Under section 110( a)( 1) of the CAA, 42 U. S. C.

7410( a)( 1), the Administrator determines that each State identified in paragraph ( c) of this section must submit a SIP revision to comply with the requirements of section 110( a)( 2)( D)( i)( I) of the CAA, 42 U. S. C. 7410( a)( 2)( D)( i)( I),

through the adoption of adequate provisions prohibiting sources and other activities from emitting SO2 in amounts that will contribute significantly to nonattainment in, or interfere with maintenance by, one or more other States with respect to the fine particles ( PM2.5) NAAQS. DRAFT  12/ 2/ 04 ( b) For each State identified in paragraph ( c) of this section, the SIP revision required under paragraph ( a) will contain adequate provisions, for purposes of complying with section 110( a)( 2)( D)( i)( I) of the CAA, 42 U. S. C.

7410( a)( 2)( D)( i)( I), only if the SIP revision contains control measures that assure compliance with the applicable requirements of this section.

( c) The following States are subject to the requirements of this section: Alabama, Florida, Georgia, Illinois, Indiana, Iowa,

Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi,

Missouri, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia, and Wisconsin, and the District of Columbia.

( d)( 1) The SIP revision under paragraph ( a) of this section must be submitted to EPA by no later than [ Insert the date 18 months ( 548 days) from the date on which the Administrator signs the final Clean Air Interstate Rule].

( 2) The requirements of appendix V to this part shall apply to the SIP revision under paragraph ( a) of this section.

( 3) The State shall deliver 5 copies of the SIP revision under paragraph ( a) of this section to the appropriate Regional Office, with a letter giving notice of such action.

( e) The State's SIP revision shall contain control measures and demonstrate that they will result in compliance with the DRAFT  12/ 2/ 04 State's Annual EGU SO2 Budget, if applicable, and achieve the State's Annual Non EGU SO2 Reduction Requirement, if applicable,

for the appropriate periods. The amounts of the State's Annual EGU SO2 Budget and Annual Non EGU SO2 Reduction Requirement shall be determined as follows:

( 1)( i) The Annual EGU SO2 Budget for the State is defined as the total amount of SO2 emissions from all EGUs in that State for a year, if the State meets the requirements of paragraph ( a) of this section by imposing control measures, at least in part, on EGUs. If the State imposes control measures under this section on only EGUs, the Annual EGU SO2 Budget for the State shall not exceed the amount, during the indicated periods, specified in paragraph ( e)( 2) of this section.

( ii) The Annual Non EGU SO2 Reduction Requirement, if applicable, is defined as the total amount of SO2 emission reductions that the State demonstrates, in accordance with paragraph ( g) of this section, it will achieve from non EGUs during the appropriate period. If the State meets the requirements of paragraph ( a) of this section by imposing control measures on only non EGUs, then the State's Annual Non EGU SO2 Reduction Requirement shall equal or exceed, during the appropriate periods, the amount determined in accordance with paragraph ( e)( 3) of this section.

( iii) If a State meets the requirements of paragraph ( a) of DRAFT  12/ 2/ 04 this section by imposing control measures on both EGUs and non

EGUs, then:

( A) The Annual Non EGU SO2 Reduction Requirement shall equal or exceed the difference between the amount specified in paragraph ( e)( 2) of this section for the appropriate period and the amount of the State's Annual EGU SO2 Budget specified in the SIP revision for the appropriate period; and ( B) The Annual EGU SO2 Budget shall not exceed, during the indicated periods, the amount specified in paragraph ( e)( 2) of this section plus the amount of the Annual Non EGU SO2 Reduction Requirement under paragraph ( e)( 1)( iii)( A) of this section for the appropriate period.

( 2) For a State that complies with the requirements of paragraph ( a) of this section by imposing control measures on only EGUs, the amount of the Annual EGU SO2 Budget, in tons of SO2 per year, shall be as follows, for the indicated State for the indicated period:

State Annual EGU SO2 Budget for 2010 2014 ( tons) Annual EGU SO2 Budget for 2015 and thereafter ( tons) Alabama 157,582 110,307 District of Columbia 708 495 Florida 253,450 177,415 Georgia 213,057 149,140 Illinois 192,671 134,869 Indiana 254,599 178,219 Iowa 64,095 44,866 Kentucky 188,773 132,141 Louisiana 59,948 41,963 Maryland 70,697 49,488 DRAFT  12/ 2/ 04 Michigan 178,605 125,024 Minnesota 49,987 34,991 Mississippi 33,763 23,634 Missouri 137,214 96,050 New York 135,139 94,597 North Carolina 137,342 96,139 Ohio 333,520 233,464 Pennsylvania 275,990 193,193 South Carolina 57,271 40,089 Tennessee 137,216 96,051 Texas 320,946 224,662 Virginia 63,478 44,435 West Virginia 215,881 151,117 Wisconsin 87,264 61,085 ( 3) For a State that complies with the requirements of paragraph ( a) of this section by imposing control measures on only non EGUs, the amount of the Annual Non EGU SO2 Reduction Requirement, in tons of SO2 per year, shall be determined, for the State for 2010 and thereafter, by subtracting the amount of the State's Annual EGU SO2 Budget for the appropriate year,

specified in paragraph ( e)( 2) of this section, from an amount equal to 2 times the State's Annual EGU SO2 Budget for 2010 through 2014, specified in paragraph ( e)( 2) of this section.

( f) Each SIP revision must set forth control measures to meet the amounts specified in paragraph ( e) of this section, as applicable, including the following:

( 1) A description of enforcement methods including, but not limited to:

( i) Procedures for monitoring compliance with each of the selected control measures;

( ii) Procedures for handling violations; and ( iii) A designation of agency responsibility for enforcement DRAFT  12/ 2/ 04 of implementation.

( 2)( i) If a State elects to impose control measures on EGUs,

then those measures must impose an annual SO2 mass emissions cap on all such sources in the State.

( ii) If a State elects to impose control measures on fossil fuel fired non EGUs that are boilers or combustion turbines with a maximum design heat input greater than 250 mmBtu/ hr, then those measures must impose an annual SO2 mass emissions cap on all such sources in the State.

( iii) If a State elects to impose control measures on non

EGUs other than those described in paragraph ( f)( 2)( ii) of this section, then those measures must impose an annual SO2 mass emissions cap on all such sources in the State, or the State must demonstrate why such emissions cap is not practicable, and adopt alternative requirements that ensure that the State will comply with its requirements under paragraph ( e) of this section, as applicable, in 2010 and subsequent years.

( g)( 1) Each SIP revision that contains control measures covering non EGUs as part or all of a State's obligation in meeting its requirement under paragraph ( a) of this section must demonstrate that such control measures are adequate to provide for the timely compliance with the State's Annual Non EGU SO2 Reduction Requirement under paragraph ( e) of this section and are not adopted or implemented by the State, as of [ Insert the date DRAFT  12/ 2/ 04 of publication of the final Clean Air Interstate Rule], and are not adopted or implemented by the federal government, as of the date of submission of the SIP revision by the State to EPA.

( 2) The demonstration under paragraph ( g)( 1) of this section must include the following, with respect to each source category of non EGUs for which the SIP revision requires control measures:

( i) A detailed historical baseline inventory of SO2 mass emissions from the source category in a representative year consisting, at the State's election, of 2002, 2003, 2004, or 2005, or an average of 2 or more of those years, absent the control measures specified in the SIP revision.

( A) This inventory must represent estimates of actual emissions based on monitoring data in accordance with part 75 of this chapter, if the source category is subject to part 75 monitoring requirements in accordance with part 75 of this chapter.

( B) In the absence of monitoring data in accordance with part 75 of this chapter, actual emissions must be quantified, to the maximum extent practicable, with the same degree of assurance with which emissions are quantified for sources subject to part 75 of this chapter and using source specific or source

categoryspecific assumptions that ensure a source's or source category's actual emissions are not overestimated. If a State uses factors to estimate emissions, production or utilization, or DRAFT  12/ 2/ 04 effectiveness of controls or rules for a source category, such factors must be chosen to ensure that emissions are not overestimated.

( C) For measures to reduce emissions from motor vehicles,

emission estimates must be based on an emissions model that has been approved by EPA for use in SIP development and must be consistent with the planning assumptions regarding vehicle miles traveled and other factors current at the time of the SIP development.

( D) For measures to reduce emissions from nonroad engines or vehicles, emission estimates methodologies must be approved by EPA.

( ii) A detailed baseline inventory of SO2 mass emissions from the source category in the years 2010 and 2015, absent the control measures specified in the SIP revision and reflecting changes in these emissions from the historical baseline year to the years 2010 and 2015, based on projected changes in the production input or output, population, vehicle miles traveled,

economic activity, or other factors as applicable to this source category.

( A) These inventories must account for implementation of any control measures that are adopted or implemented by the State, as of [ Insert the date of publication of the final Clean Air Interstate Rule], or adopted or implemented by the federal DRAFT  12/ 2/ 04 government, as of the date of submission of the SIP revision by the State to EPA, and must exclude any control measures specified in the SIP revision to meet the SO2 emissions reduction requirements of this section.

( B) Economic and population forecasts must be as specific as possible to the applicable industry, State, and county of the source or source category and must be consistent with both national projections and relevant official planning assumptions,

including estimates of population and vehicle miles traveled developed through consultation between State and local transportation and air quality agencies. However, if these official planning assumptions are inconsistent with official U. S.

Census projections of population or with energy consumption projections contained in the U. S. Department of Energy's most recent Annual Energy Outlook, then the SIP revision must make adjustments to correct the inconsistency or must demonstrate how the official planning assumptions are more accurate.

( C) These inventories must account for any changes in production method, materials, fuels, or efficiency that are expected to occur between the historical baseline year and 2010 or 2015, as appropriate.

( iii) A projection of SO2 mass emissions in 2010 and 2015 from the source category assuming the same projected changes as under paragraph ( g)( 2)( ii) of this section and resulting from DRAFT  12/ 2/ 04 implementation of each of the control measures specified in the SIP revision.

( A) These inventories must address the possibility that the State's new control measures may cause production or utilization,

and emissions, to shift to unregulated or less stringently regulated sources in the source category in the same or another State, and these inventories must include any such amounts of emissions that may shift to such other sources.

( B) The State must provide EPA with a summary of the computations, assumptions, and judgments used to determine the degree of reduction in projected 2010 and 2015 SO2 emissions that will be achieved from the implementation of the new control measures compared to the relevant baseline emissions inventory.

( iv) The result of subtracting the amounts in paragraph ( g)( 2)( iii) of this section for 2010 and 2015, respectively, from the lower of the amounts in paragraph ( g)( 2)( i) or ( g)( 2)( ii) of this section for 2010 and 2015, respectively, may be credited towards the State's Annual Non EGU SO2 Reduction Requirement in paragraph ( e)( 3) of this section for the appropriate period.

( v) Each SIP revision must identify the sources of the data used in each estimate and each projection of emissions.

( h) Each SIP revision must comply with § 51.116 ( regarding data availability).

( i) Each SIP revision must provide for monitoring the status DRAFT  12/ 2/ 04 of compliance with any control measures adopted to meet the State's requirements under paragraph ( e) of this section, as follows:

( 1) The SIP revision must provide for legally enforceable procedures for requiring owners or operators of stationary sources to maintain records of, and periodically report to the State:

( i) Information on the amount of SO2 emissions from the stationary sources; and ( ii) Other information as may be necessary to enable the State to determine whether the sources are in compliance with applicable portions of the control measures;

( 2) The SIP revision must comply with § 51.212 ( regarding testing, inspection, enforcement, and complaints);

( 3) If the SIP revision contains any transportation control measures, then the SIP revision must comply with § 51.213 ( regarding transportation control measures);

( 4)( i) If the SIP revision contains measures to control EGUs, then the SIP revision must require such sources to comply with the monitoring, recordkeeping, and reporting provisions of part 75 of this chapter.

( ii) If the SIP revision contains measures to control fossil fuel fired non EGUs that are boilers or combustion turbines with a maximum design heat input greater than 250 mmBtu/ hr, then the DRAFT  12/ 2/ 04 SIP revision must require such sources to comply with the monitoring, recordkeeping, and reporting provisions of part 75 of this chapter.

( iii) If the SIP revision contains measures to control any other non EGUs that are not described in paragraph ( i)( 4)( ii) of this section, then the SIP revision must require such sources to comply with the monitoring, recordkeeping, and reporting provisions of part 75 of this chapter, or the State must demonstrate why such requirements are not practicable and adopt alternative requirements that ensure that the required emissions reductions will be quantified, to the maximum extent practicable,

with the same degree of assurance with which emissions are quantified for sources subject to part 75 of this chapter.

( j) Each SIP revision must show that the State has legal authority to carry out the SIP revision, including authority to:

( 1) Adopt emissions standards and limitations and any other measures necessary for attainment and maintenance of the State's relevant Annual EGU SO2 Budget or the Annual Non EGU SO2 Reduction Requirement, as applicable, under paragraph ( e);

( 2) Enforce applicable laws, regulations, and standards and seek injunctive relief;

( 3) Obtain information necessary to determine whether air pollution sources are in compliance with applicable laws,

regulations, and standards, including authority to require DRAFT  12/ 2/ 04 recordkeeping and to make inspections and conduct tests of air pollution sources; and ( 4)( i) Require owners or operators of stationary sources to install, maintain, and use emissions monitoring devices and to make periodic reports to the State on the nature and amounts of emissions from such stationary sources; and ( ii) Make the data described in paragraph ( j)( 4)( i) of this section available to the public within a reasonable time after being reported and as correlated with any applicable emissions standards or limitations.

( k)( 1) The provisions of law or regulation that the State determines provide the authorities required under this section must be specifically identified, and copies of such laws or regulations must be submitted with the SIP revision.

( 2) Legal authority adequate to fulfill the requirements of paragraphs ( j)( 3) and ( 4) of this section may be delegated to the State under section 114 of the CAA.

( l)( 1) A SIP revision may assign legal authority to local agencies in accordance with § 51.232.

( 2) Each SIP revision must comply with § 51.240 ( regarding general plan requirements).

( m) Each SIP revision must comply with § 51.280 ( regarding resources).

( n) Each SIP revision must provide for State compliance with DRAFT  12/ 2/ 04 the reporting requirements in § 51.125.

( o)( 1) Notwithstanding any other provision of this section,

if a State adopts regulations substantively identical to subparts AAA through III of part 96 of this chapter ( CAIR SO2 Trading Program), incorporates such subparts by reference into its regulations, or adopts regulations that differ substantively from such subparts only as set forth in paragraph ( o)( 2) of this section, then such emissions trading program in the State's SIP revision is automatically approved as meeting the requirements of paragraph ( e) of this section, provided that the State has the legal authority to take such action and to implement its responsibilities under such regulations.

( 2) If a State adopts an emissions trading program that differs substantively from subparts AAA through III of part 96 of this chapter only as follows, then the emissions trading program is approved as set forth in paragraph ( o)( 1) of this section.

( i) The State may decline to adopt the CAIR SO2 opt in provisions of subpart III of this part and the provisions applicable only to CAIR SO2 opt in units in subparts AAA through HHH of this part.

( ii) The State may decline to adopt the CAIR SO2 opt in provisions of § 96.288( b) and the provisions of subpart III of this part applicable only to CAIR SO2 opt in units under § 96.288( b). DRAFT  12/ 2/ 04 ( iii) The State may decline to adopt the CAIR SO2 opt in provisions of § 96.288( c) and the provisions of subpart II of this part applicable only to CAIR SO2 opt in units under § 96.288( c).

( 3) A State that adopts an emissions trading program in accordance with paragraph ( o)( 1) or ( 2) of this section is not required to adopt an emissions trading program in accordance with § 96.123 ( o)( 1) or ( 2) or ( aa)( 1) or ( 2).

( 4) If a State adopts an emissions trading program that differs substantively from subparts AAA through III of part 96 of this chapter, other than as set forth in paragraph ( o)( 2)( ii) of this section, then such emissions trading program is not automatically approved as set forth in paragraph ( o)( 1) or ( 2) of this section and will be reviewed by the Administrator for approvability in accordance with the other provisions of this section, provided that the SO2 allowances issued under such emissions trading program shall not, and the SIP revision shall state that such SO2 allowances shall not, qualify as CAIR SO2 allowances under any emissions trading program approved under paragraph ( o)( 1) or ( 2) of this section.

( p) If a State's SIP revision does not contain an emissions trading program approved under paragraph ( o)( 1) or ( 2) of this section but contains control measures on EGUs as part or all of a State's obligation in meeting its requirement under paragraph ( a) DRAFT  12/ 2/ 04 of this section:

( 1) The SIP revision shall provide, for each year that the State has such obligation, for the permanent retirement of an amount of Acid Rain allowances allocated to sources in the State for that year and not deducted by the Administrator under the Acid Rain Program and any emissions trading program approved under paragraph ( o)( 1) or ( 2) of this section, equal to the difference between

( A) The total amount of Acid Rain allowances allocated under the Acid Rain Program to the sources in the State for that year;

and ( B) If the State's SIP revision contains only control measures on EGUs, the State's Annual EGU SO2 Budget for the appropriate period as specified in paragraph ( e)( 2) of this section or, if the State's SIP revision contains control measures on EGUs and non EGUs, the State's Annual EGU SO2 Budget for the appropriate period as specified in the SIP revision.

( 2) The SIP revision providing for permanent retirement of Acid Rain allowances under paragraph ( p)( 1) of this section must ensure that such allowances are not available for deduction by the Administrator under the Acid Rain Program and any emissions trading program approved under paragraph ( o)( 1) or ( 2) of this section.

( q) The terms used in this section shall have the following DRAFT  12/ 2/ 04 meanings:

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

Acid Rain allowance means a limited authorization issued by the Administrator under the Acid Rain Program to emit up to one ton of sulfur dioxide during the specified year or any year thereafter, except as otherwise provided by the Administrator.

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 allowances, the determination of the amount of allowances to be initially credited to a source.

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.

Clean Air Act or CAA means the Clean Air Act, 42 U. S. C. DRAFT  12/ 2/ 04 7401, et seq.

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 ( 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, DRAFT  12/ 2/ 04 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 operation means to have begun any mechanical,

chemical, or electronic process, including, with regard to a unit, start up of a unit's combustion chamber.

Electric generating unit or EGU means:

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

a stationary, fossil fuel fired boiler or stationary,

fossilfuel fired 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.

( 2) 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 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 DRAFT  12/ 2/ 04 longer qualifies as a cogeneration unit, the unit shall be subject to paragraph ( 1) of this definition starting on the day on which the unit first no longer qualifies as a cogeneration unit.

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

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

Generator means a device that produces electricity.

Maximum design heat input means:

( 1) Starting with 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;

( 2)( i) Except as provided in paragraph ( 2)( ii) of this definition, starting with the completion of any subsequent physical change in the unit resulting in an increase in the maximum amount of fuel per hour ( in Btu/ hr) that a unit is capable of combusting on a steady state basis as of such completion, such increased maximum amount as specified by the person conducting the physical change; or ( ii) For purposes of applying the definition of the term " potential electrical output capacity," starting with the completion of any subsequent physical change in the unit DRAFT  12/ 2/ 04 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 as of such completion, such decreased maximum amount as specified by the person conducting the physical change.

NAAQS means National Ambient Qir Quality Standard.

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.

Non EGU means a source of SO2 emissions that is not an EGU.

Potential electrical output capacity means 33 percent of a unit's maximum design heat input, divided by 3,413 Btu/ kWh,

divided by 1,000 kWh/ MWh, and multiplied by 8,760 hr/ yr.

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 DRAFT  12/ 2/ 04 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.

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 a stationary, fossil fuel fired combustion turbine .

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).

Useful thermal energy means, with regard to a cogeneration DRAFT  12/ 2/ 04 unit, thermal energy that is:

( 1) Made available to an industrial or commercial 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.

3. Part 51 is revised by adding § 51.125 to Subpart G to read as follows:

§ 51.125 Emissions reporting requirements for SIP revisions relating to budgets for SO2 and NOX emissions.

( a) For its transport SIP revision under § 51.123 and/ or 51.124 of this part, each State must submit to EPA SO2 and/ or NOX emissions data as described in this section.

( 1) Alabama, Florida, Georgia, Illinois, Indiana, Iowa,

Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi,

Missouri, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia, Wisconsin and the District of Columbia, must report annual ( 12 months)

emissions of SO2 and NOX. DRAFT  12/ 2/ 04 ( 2) Alabama, Arkansas, Connecticut, Deleware, Florida,

Illinois, Indinia, Iowa, Kentucky, Lousianna, Maryland,

Massachusetts, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina,

Tennessee, Virginia, West Virginia, Wisconsin and the District of Columbia must report ozone season ( May 1 through September 30)

emissions of NOX.

( b) Each revision must provide for periodic reporting by the State of SO2 and/ or NOX emissions data as specified in paragraph ( a) of this section to demonstrate whether the State's emissions are consistent with the projections contained in its approved SIP submission.

( 1) Every year reporting cycle. As applicable, each revision must provide for reporting of SO2 and NOX emissions data every year as follows:

( i) The States identified in paragraph ( a)( 1) of this section must report to EPA annual emissions data every year from all SO2 and NOX sources within the State for which the State specified control measures in its SIP submission under § § 51.123 and/ or 51.124 of this part.

( ii) The States identified in paragraph ( a)( 2) of this section must report to EPA ozone season and summer daily emissions data every year from all NOX sources within the State for which the State specified control measures in its SIP DRAFT  12/ 2/ 04 submission under § 51.123 of this part.

( iii) If sources report SO2 and NOX emissions data to EPA in a given year pursuant to a trading program approved under § 51.123( o) or § 51.124( o) of this part or pursuant to the monitoring and reporting requirements of 40 CFR part 75, then the State need not provide annual reporting of these pollutants to EPA for such sources.

( 2) Three year reporting cycle. As applicable, each plan must provide for triennial ( i. e., every third year) reporting of SO2 and NOX emissions data from all sources within the State.

( i) The States identified in paragraph ( a)( 1) of this section must report to EPA annual emissions data every third year from all SO2 and NOX sources within the State.

( ii) The States identified in paragraph ( a)( 2) of this section must report to EPA ozone season and ozone daily emissions data every third year from all NOX sources within the State.

( 3) The data availability requirements in § 51.116 of this part must be followed for all data submitted to meet the requirements of paragraphs ( b)( 1) and( 2) of this section.

( c) The data reported in paragraph ( b) of this section must meet the requirements of subpart A of this part.

( d) Approval of annual and ozone season calculation by EPA.

Each State must submit for EPA approval an example of the calculation procedure used to calculate annual and ozone season DRAFT  12/ 2/ 04 emissions along with sufficient information for EPA to verify the calculated value of annual and ozone season emissions.

( e) Reporting schedules.

( 1) Reports are to begin with data for emissions occurring in the year 2008, which is the first year of the 3 year cycle.

( 2) After 2008, 3 year cycle reports are to be submitted every third year and every year cycle reports are to be submitted each year that a triennial report is not required.

( 3) States must submit data for a required year no later than 17 months after the end of the calendar year for which the data are collected.

( f) Data reporting procedures are given in subpart A. When submitting a formal NOX budget emissions report and associated data, States shall notify the appropriate EPA Regional Office.

( g) Definitions. As used in this section, " ozone season" is defined as follows:

( 1) Ozone season.  The five month period from May 1 through September 30.

Other words and terms shall have the meanings set forth in appendix A of subpart A of this part.

PART 72   PERMITS REGULATION 1. The authority citation for part 72 continues to read as follows: DRAFT  12/ 2/ 04 Authority: 42 U. S. C. 7601 and 7651, et seq.

§ 72.2 [ Amended]

2. Section 72.2 is amended by:

a. Amend the definition of " Acid rain emissions limitation"

by replacing, in paragraph ( 1)( i), the words " an affected unit'

by the words " the affected units at a source" and replacing, in paragraph ( 1)( ii)( C), the words " compliance subaccount for that unit" by the words " compliance account for that source";

b. Amend the definition of " Advance allowance" by replacing the word " unit's" by the word " source's";

c. Amend the definition of " Allocate or allocation" by replacing the words " unit account" by the words " compliance account";

d. Amend the definition of " Allowance deduction, or deduct"

by replacing the words " compliance subaccount, or future year subaccount," by the words " compliance account" and replacing the words " from an affected unit" by the words " from the affected units at an affected source";

e. Amend the definition of " Allowance transfer deadline" by replacing the words " affected unit's compliance subaccount" by the words " an affected source's compliance account" and replacing the words " the unit's" by the words " the source's";

f. Amend the definition of " Authorized account representative" by replacing the words " unit account" by the DRAFT  12/ 2/ 04 words " compliance account" and replacing the words " affected unit" by the words " affected source and the affected units at the source";

g. Amend the definition of " Compliance use date" by replacing the word " unit's" by the word " source's";

h. Amend the definition of " Excess emissions" by, in paragraph ( 1), replacing the words " an affected unit" by the words " the affected units at an affected source" and replacing the words " for the unit" by the words " for the source";

i. Amend the definition of " General account" by replacing the words " unit account" by the words " compliance account";

j. Amend the definition of " Offset Plan" by replacing the word " unit" by the word " source";

K. Amend the definition of " Recordation, record, or recorded" by removing the words " or subaccount";

l. Amend the definition of " Source" by replacing the words " under the Act." by the words " under the Act, provided that one or more combustion or process sources that have, under § 74.4( c)

of this chapter, a different designated representative than the designated representative for one or more affected utility units at a source shall be treated as being included in a separate source from the source that includes such utility units for purposes of parts 72 through 78 but shall be treated as being included in the same source as the source that includes such DRAFT  12/ 2/ 04 utility units for purposes of section 502( c) of the Act."

m. Amend the definition of " Spot allowance" by replacing the word " unit's" by the word " source's"; and n. Revise the definition of " Cogeneration unit", adding a new definition of " Compliance account", and removing the definitions of " Compliance subaccount", " Current year subaccount", " Direct sale subaccount", " Future year subaccount",

and " Unit account" to read as follows:

§ 72.2 Definitions.

* * * * *

Cogeneration unit means a unit that has equipment used to produce electric energy and forms of useful thermal energy ( such as heat or steam) for industrial, commercial, heating, or cooling purposes, through sequential use of energy.

* * * * *

Compliance account means an Allowance Tracking System account,

established by the Administrator under § 73.31( a) or ( b) of this chapter or § 74.40( a) of this chapter for an affected source and for each affected unit at the source.

* * * * *

§ 72.7 [ Amended]

3. Section 72.7 is amended in paragraph ( c)( 1)( ii), in the first sentence, replace the word " unit's Allowance Tracking System account" by the words " compliance account of the source DRAFT  12/ 2/ 04 that includes the unit" and remove the third sentence.

§ 72.9 [ Amended]

4. Section 72.9 is amended by:

a. In paragraph ( b)( 2), replace the word " unit" by the words " source or unit, as appropriate,";

b. In paragraph ( c)( 1)( i), replace the words " unit's compliance subaccount" with the words " source's compliance account" and replace the words " from the unit" by the words " from the affected units at the source";

c. In paragraphs ( e)( 1) and ( e)( 2) introductory text,

replace the words " an affected unit" by the words " an affected source";

d. In paragraph ( g)( 6), remove the second sentence; and e. In paragraph ( h)( 2), replace the word " unit" by the word " source" wherever it appears.

§ 72.21 [ Amended]

5. Section 72.21 is amended by:

a. In paragraph ( b)( 1), remove the word " affected" wherever it appears; and b. In paragraph ( e)( 2), replace the words " unit account" by the words " compliance account".

§ 72.24 [ Amended]

6. Section 72.24 is amended by removing and reserving paragraphs ( a)( 5), ( a)( 7), and ( a)( 10). DRAFT  12/ 2/ 04 § 72.27 [ Amended]

7. Section 72.27 is amended by, in paragraphs ( c)( 3) and ( c)( 5), by replacing the words " unit's Allowance Tracking System account" by the words " for the unit in the compliance account for the source that includes the unit".

§ 72.40 [ Amended]

8. Section 72.40 is amended, in paragraph ( a)( 1), replace the words " unit's compliance subaccount" with the words " compliance account of the source where the unit is located ",

remove the words ", or in the compliance subaccount of another affected unit at the source to the extent provided in § 73.35( b)( 3),", and replace the words " from the unit" by the words " from the affected units at the source".

§ 72.72 [ Amended]

9. Section 72.72 is amended by:

a. In paragraph ( a)( 1), add, after the words " affected unit", the words " or affected source";

b. In paragraph ( a)( 2), add, after the words " affected unit's" the words " or an affected source's"; and c. In paragraph ( a)( 3), add, after the words " affected unit", the words " or affected source" whenever they appear.

§ 72.73 [ Amended]

10. Section 72.73 is amended by, in paragraph ( b)( 2),

replace the words " the first Acid Rain permit" by the words " an DRAFT  12/ 2/ 04 Acid Rain permit".

§ 72.90 [ Amended]

11. Section 72.90 is amended by, in paragraph ( a), add,

after the words " each calendar year", the words " during 1995 through 2005".

§ 72.95 [ Amended]

12. Section 72.95 is amended by:

a. In the introductory text, replace the words " an affected unit's compliance subaccount" with the words " an affected source's compliance account"; and b. In paragraph ( a), replace the words " by the unit" by the words " by the affected units at the source".

§ 72.96 [ Amended]

13. Section 72.96 is amended by, in paragraph ( b), replace the words " unit's Allowance Tracking System account" by the words " source's compliance account".

PART 73   SULFUR DIOXIDE ALLOWANCE SYSTEM 1. The authority citation continues to read as follows:

Authority: 42 U. S. C. 7601 and 7651, et seq.

§ 73.10 [ Amended]

2. Section 73.10 is amended by:

a. In paragraph ( a), replace the words " unit account for each" by the words " compliance account for each source that includes a" and remove the words " in each future year DRAFT  12/ 2/ 04 subaccount"; and b. In paragraphs ( b)( 1) and ( b)( 2), replace the words " unit account for each" by the words " compliance account for each source that includes a" and replace the words " in the future year subaccounts representing calendar years" with the words " for the years".

§ 73.27 [ Amended]

3. Section 73.27 is amended by, in paragraphs ( c)( 3) and ( c)( 5), replace the words " unit's Allowance Tracking System account" by the words " compliance account of the source that includes the unit".

§ 73.30 [ Amended]

4. Section 73.30 is amended by:

a. In paragraph ( a), add, after the word " establish", the word " compliance", replace the words " affected units" by the words " affected sources", and replace the words " unit's Allowance Tracking System account" by the words " source's compliance account" ; and b. In paragraph ( b), replace the word " unit" by the word " source" and replace the words " Allowance Tracking System account" by the words " general account".

§ 73.31 [ Amended]

5. Section 73.31 is amended by:

a. In paragraph ( a), replace the words " an Allowance DRAFT  12/ 2/ 04 Tracking System account" by the words " a compliance account" and replace the words " each unit" with the words " each source that includes a unit";

b. In paragraph ( b), replace the words " an Allowance Tracking System account for the unit." by the words " a compliance account for the source that includes the unit, unless the source already has a compliance account."; and c. In paragraph ( c)( 1)( v), replace the words " Allowance Tracking System account" by the words " general account" and remove the words " I shall abide by any fiduciary responsibilities assigned pursuant to the binding agreement.".

§ 73.32 [ Amended]

6. Section 73.32 is removed and reserved.

§ 73.33 [ Amended]

7. Section 73.33 is amended by remove and reserve paragraphs ( b) and ( c).

§ 73.34 [ Amended]

8. Section 73.34 is amended by:

a. Revise paragraphs ( a) and ( b) to read as set forth below;

b. In paragraph ( c) introductory text, remove the words " Recordation in subaccounts" and replace the words " compliance,

current year, and future year" with the words " compliance account and general account".

§ 73.34 Recordation in accounts. DRAFT  12/ 2/ 04 ( a) After a compliance account is established under § 73.31( a) or ( b), the Administrator will record in the compliance account any allowance allocated to any affected unit at the source for 30 years starting with the later of 1995 or the year in which the compliance account is established and any allowance allocated for 30 years starting with the later of 1995 or the year in which the compliance account is established and transferred to the source with the transfer submitted in accordance with § 73.50. In 1996 and each year thereafter, after Administrator has completed the deductions pursuant to § 73.35( b), the Administrator will record in the compliance account any allowance allocated to any affected unit at the source for the new 30th year ( i. e., the year that is 30 years after the calendar year for which such deductions are made) and any allowance allocated for the new 30th year and transferred to the source with the transfer submitted in accordance with § 73.50.

( b) After a general account is established under § 73.31( c),

the Administrator will record in the general account any allowance allocated for 30 years starting with the later of 1995 or the year in which the general account is established and transferred to the general account with the transfer submitted in accordance with § 73.50. In 1996 and each year thereafter, after the Administrator has completed the deductions pursuant to § 73.35( b), the Administrator will record in the general account DRAFT  12/ 2/ 04 any allowance allocated for the new 30th year ( i. e., the year that is 30 years after the calendar year for which such deductions are made) and transferred to the general account with the transfer submitted in accordance with § 73.50.

* * * * *

§ 73.35 [ Amended]

9. Section 73.35 is amended by:

a. In paragraph ( a) introductory text and paragraph ( a)( 1),

replace the words " unit's" by the word " source's";

b. In paragraph ( a)( 2), replace the word " Such" by the word " The";

c. In paragraph ( a)( 2)( i), replace the words " the unit's compliance subaccount" with the words " the source's compliance account";

d. In paragraph ( a)( 2)( ii), replace the words " the unit's compliance subaccount" with the words " the source's compliance account", replace the words " compliance subaccount for the unit"

by the words " source's compliance account", and replace the word " or" with the word " and";

e. Remove paragraph ( a)( 2)( iii);

f. Add a new paragraph ( a)( 3);

g. In paragraph ( b)( 1), replace the words " compliance subaccount" by the words " compliance account", add, after the words " deduct allowances", the words " available for deduction DRAFT  12/ 2/ 04 under paragraph ( a) of this section", and replace the words " each affected unit's compliance subaccount" with the words " each affected source's compliance account";

h. In paragraph ( b)( 2), replace the words " allowances remain in the compliance subaccount" with the words " allowances available for deduction under paragraph ( a) of this section remain in the compliance account";

i. Remove paragraph ( b)( 3);

j. Revise paragraph ( c)( 1) to read as set forth below;

k. In paragraph ( c)( 2), replace the words " for the unit"

with the words " for the units at the source", replace the words " in its compliance subaccount." by the words ` in the source's compliance account.", replace the words " from the compliance subaccount" by the words " from the compliance account", and replace the words " unit's compliance subaccount" by the words " source's compliance account";

l. In paragraph ( d), replace the words " for each unit" by the words " for each source" and replace the word " unit's" by the word " source's"; and m. Remove paragraph ( e).

§ 73.35 Compliance.

( a) * * *

( 1) * * *

( 2) * * * DRAFT  12/ 2/ 04 ( 3) The allowance was not previously deducted by the Administrator in accordance with a State SO2 mass emissions reduction program under § 51.124( o) of this chapter or otherwise permanently retired in accordance with § 51.124( p) of this chapter.

( b) * * *

( c)( 1) Identification of allowances by serial number. The authorized account representative for a source's compliance account may request that specific allowances, identified by serial number, in the compliance account be deducted for a calendar year in accordance with paragraph ( b) or ( d) of this section. Such request shall be submitted to the Administrator by the allowance transfer deadline for the year and include, in a format prescribed by the Administrator, the identification of the source and the appropriate serial numbers.

* * * * *

§ 73.36 [ Amended]

10. Section 73.36 is amended by:

a. In paragraph ( a), replace the words " Unit accounts." with the words " Compliance accounts." and replace with words " compliance subaccount" with the words " compliance account"

whenever they appear; and b. In paragraph ( b), replace the words " current year subaccount" with the words " general account" whenever they appear DRAFT  12/ 2/ 04 and replace the words " at the end of the current calendar year"