97.808 Administrative appeal procedures.
97.809 [Reserved]
97.810 State NOX Ozone Season Group 2 trading budgets, new unit set-
asides, Indian country new unit set-asides, and variability limits.
97.811 Timing requirements for CSAPR NOX Ozone Season Group 2
allowance allocations.
97.812 CSAPR NOX Ozone Season Group 2 allowance allocations to new
units.
97.813 Authorization of designated representative and alternate
designated representative.
97.814 Responsibilities of designated representative and alternate
designated representative.
97.815 Changing designated representative and alternate designated
representative; changes in owners and operators; changes in units at
the source.
97.816 Certificate of representation.
97.817 Objections concerning designated representative and alternate
designated representative.
97.818 Delegation by designated representative and alternate
designated representative.
97.819 [Reserved]
97.820 Establishment of compliance accounts, assurance accounts, and
general accounts.
97.821 Recordation of CSAPR NOX Ozone Season Group 2 allowance
allocations and auction results.
97.822 Submission of CSAPR NOX Ozone Season Group 2 allowance
transfers.
97.823 Recordation of CSAPR NOX Ozone Season Group 2 allowance
transfers.
97.824 Compliance with CSAPR NOX Ozone Season Group 2 emissions
limitation.

97.825 Compliance with CSAPR NOX Ozone Season Group 2 assurance
provisions.
97.826 Banking.
97.827 Account error.
97.828 Administrator's action on submissions.
97.829 [Reserved]
97.830 General monitoring, recordkeeping, and reporting
requirements.
97.831 Initial monitoring system certification and recertification
procedures.
97.832 Monitoring system out-of-control periods.
97.833 Notifications concerning monitoring.
97.834 Recordkeeping and reporting.
97.835 Petitions for alternatives to monitoring, recordkeeping, or
reporting requirements.

Subpart EEEEE--CSAPR NOX Ozone Season Group 2 Trading Program

Sec.  97.801  Purpose.

    This subpart sets forth the general, designated representative,
allowance, and monitoring provisions for the Cross-State Air Pollution
Rule (CSAPR) NOX Ozone Season Group 2 Trading Program, under
section 110 of the Clean Air Act and Sec.  52.38 of this chapter, as a
means of mitigating interstate transport of ozone and nitrogen oxides.

Sec.  97.802  Definitions.

    The terms used in this subpart shall have the meanings set forth in
this section as follows, provided that any term that includes the
acronym ``CSAPR'' shall be considered synonymous with a term that is
used in a SIP revision approved by the Administrator under Sec.  52.38
or Sec.  52.39 of this chapter and that is substantively identical
except for the inclusion of the acronym ``TR'' in place of the acronym
``CSAPR'':
    Acid Rain Program means a multi-state SO2 and
NOX air pollution control and emission reduction program
established by the Administrator under title IV of the Clean Air Act
and parts 72 through 78 of this chapter.
    Administrator means the Administrator of the United States
Environmental Protection Agency or the Director of the Clean Air
Markets Division (or its successor determined by the Administrator) of
the United States Environmental Protection Agency, the Administrator's
duly authorized representative under this subpart.
    Allocate or allocation means, with regard to CSAPR NOX
Ozone Season Group 2 allowances, the determination by the
Administrator, State, or permitting authority, in accordance with this
subpart, Sec.  97.526(c), and any SIP revision submitted by the State
and approved by the Administrator under Sec.  52.38(b)(6), (7), (8), or
(9) of this chapter, of the amount of such CSAPR NOX Ozone
Season Group 2 allowances to be initially credited, at no cost to the
recipient, to:
    (1) A CSAPR NOX Ozone Season Group 2 unit;
    (2) A new unit set-aside;
    (3) An Indian country new unit set-aside; or
    (4) An entity not listed in paragraphs (1) through (3) of this
definition;
    (5) Provided that, if the Administrator, State, or permitting
authority initially credits, to a CSAPR NOX Ozone Season
Group 2 unit qualifying for an initial credit, a credit in the amount
of zero CSAPR NOX Ozone Season Group 2 allowances, the CSAPR
NOX Ozone Season Group 2 unit will be treated as being
allocated an amount (i.e., zero) of CSAPR NOX Ozone Season
Group 2 allowances.
    Allowable NOX emission rate means, for a unit, the most stringent
State or federal NOX emission rate limit (in lb/MWh or, if
in lb/mmBtu, converted to lb/MWh by multiplying it by the unit's heat
rate in mmBtu/MWh) that is applicable to the unit and covers the
longest averaging period not exceeding one year.
    Allowance Management System means the system by which the
Administrator records allocations, auctions, transfers, and deductions
of CSAPR NOX Ozone Season Group 2 allowances under the CSAPR
NOX Ozone Season Group 2 Trading Program. Such allowances
are allocated, auctioned, recorded, held, transferred, or deducted only
as whole allowances.
    Allowance Management System account means an account in the
Allowance Management System established by the Administrator for
purposes of recording the allocation, auction, holding, transfer, or
deduction of CSAPR NOX Ozone Season Group 2 allowances.
    Allowance transfer deadline means, for a control period in a given
year, midnight of March 1 (if it is a business day), or midnight of the
first business day thereafter (if March 1 is not a business day),
immediately after such control period and is the deadline by which a
CSAPR NOX Ozone Season Group 2 allowance transfer must be
submitted for recordation in a CSAPR NOX Ozone Season Group
2 source's compliance account in order to be available for use in
complying with the source's CSAPR NOX Ozone Season Group 2
emissions limitation for such control period in accordance with
Sec. Sec.  97.806 and 97.824.
    Alternate designated representative means, for a CSAPR
NOX Ozone Season Group 2 source and each CSAPR
NOX Ozone Season Group 2 unit at the source, the natural
person who is authorized by the owners and operators of the source and
all such units at the source, in accordance with this subpart, to act
on behalf of the designated representative in matters pertaining to the
CSAPR NOX Ozone Season Group 2 Trading Program. If the CSAPR
NOX Ozone Season Group 2 source is also subject to the Acid
Rain Program, CSAPR NOX Annual Trading Program, CSAPR
SO2 Group 1 Trading Program, or CSAPR SO2 Group 2
Trading Program, then this natural person shall be the same natural
person as the alternate designated representative as defined in the
respective program.
    Assurance account means an Allowance Management System account,
established by the Administrator under Sec.  97.825(b)(3) for certain
owners and operators of a group of one or more base CSAPR
NOX Ozone Season Group 2 sources and units in a given State
(and Indian country within the borders of such State), in which are
held CSAPR NOX Ozone Season Group 2 allowances available for
use for a control period in a given year in complying with the CSAPR
NOX Ozone Season Group 2 assurance provisions in accordance
with Sec. Sec.  97.806 and 97.825.
    Auction means, with regard to CSAPR NOX Ozone Season
Group 2 allowances, the sale to any person by a State or permitting
authority, in accordance with a SIP revision submitted by the State and
approved by the Administrator under Sec.  52.38(b)(6), (8), or (9) of
this chapter, of such CSAPR NOX Ozone Season Group 2
allowances to be initially recorded in an Allowance Management System
account.
    Authorized account representative means, for a general account, the
natural person who is authorized, in accordance with this subpart, to
transfer and otherwise dispose of CSAPR NOX Ozone Season
Group 2 allowances held in the general account and, for a CSAPR
NOX Ozone Season Group 2 source's compliance account, the
designated representative of the source.
    Automated data acquisition and handling system or DAHS means the
component of the continuous emission monitoring system, or other
emissions monitoring system approved for use under this subpart,
designed to interpret and convert individual output signals from
pollutant concentration monitors, flow monitors, diluent gas monitors,
and other component parts of the monitoring system to produce a
continuous record of the measured

parameters in the measurement units required by this subpart.
    Base CSAPR NOX Ozone Season Group 2 source means a source that
includes one or more base CSAPR NOX Ozone Season Group 2
units.
    Base CSAPR NOX Ozone Season Group 2 unit means a CSAPR
NOX Ozone Season Group 2 unit, provided that any unit that
would not be a CSAPR NOX Ozone Season Group 2 unit under
Sec.  97.804(a) and (b) is not a base CSAPR NOX Ozone Season
Group 2 unit notwithstanding the provisions of any SIP revision
approved by the Administrator under Sec.  52.38(b)(6), (8), or (9) of
this chapter.
    Biomass means--
    (1) Any organic material grown for the purpose of being converted
to energy;
    (2) Any organic byproduct of agriculture that can be converted into
energy; or
    (3) Any material that can be converted into energy and is
nonmerchantable for other purposes, that is segregated from other
material that is nonmerchantable for other purposes, and that is;
    (i) A forest-related organic resource, including mill residues,
precommercial thinnings, slash, brush, or byproduct from conversion of
trees to merchantable material; or
    (ii) A wood material, including pallets, crates, dunnage,
manufacturing and construction materials (other than pressure-treated,
chemically-treated, or painted wood products), and landscape or right-
of-way tree trimmings.
    Boiler means an enclosed fossil- or other-fuel-fired combustion
device used to produce heat and to transfer heat to recirculating
water, steam, or other medium.
    Bottoming-cycle unit means a unit in which the energy input to the
unit is first used to produce useful thermal energy, where at least
some of the reject heat from the useful thermal energy application or
process is then used for electricity production.
    Business day means a day that does not fall on a weekend or a
federal holiday.
    Certifying official means a natural person who is:
    (1) For a corporation, a president, secretary, treasurer, or vice-
president of the corporation in charge of a principal business function
or any other person who performs similar policy- or decision-making
functions for the corporation;
    (2) For a partnership or sole proprietorship, a general partner or
the proprietor respectively; or
    (3) For a local government entity or State, federal, or other
public agency, a principal executive officer or ranking elected
official.
    Clean Air Act means the Clean Air Act, 42 U.S.C. 7401, et seq.
    Coal means ``coal'' as defined in Sec.  72.2 of this chapter.
    Coal-derived fuel means any fuel (whether in a solid, liquid, or
gaseous state) produced by the mechanical, thermal, or chemical
processing of coal.
    Cogeneration system means an integrated group, at a source, of
equipment (including a boiler, or combustion turbine, and a generator)
designed to produce useful thermal energy for industrial, commercial,
heating, or cooling purposes and electricity through the sequential use
of energy.
    Cogeneration unit means a stationary, fossil-fuel-fired boiler or
stationary, fossil-fuel-fired combustion turbine that is a topping-
cycle unit or a bottoming-cycle unit:
    (1) Operating as part of a cogeneration system; and
    (2) Producing on an annual average basis--
    (i) For a topping-cycle unit,
    (A) Useful thermal energy not less than 5 percent of total energy
output; and
    (B) Useful power that, when added to one-half of useful thermal
energy produced, is not less than 42.5 percent of total energy input,
if useful thermal energy produced is 15 percent or more of total energy
output, or not less than 45 percent of total energy input, if useful
thermal energy produced is less than 15 percent of total energy output.
    (ii) For a bottoming-cycle unit, useful power not less than 45
percent of total energy input;
    (3) Provided that the requirements in paragraph (2) of this
definition shall not apply to a calendar year referenced in paragraph
(2) of this definition during which the unit did not operate at all;
    (4) Provided that the total energy input under paragraphs (2)(i)(B)
and (2)(ii) of this definition shall equal the unit's total energy
input from all fuel, except biomass if the unit is a boiler; and
    (5) Provided that, if, throughout its operation during the 12-month
period or a calendar year referenced in paragraph (2) of this
definition, a unit is operated as part of a cogeneration system and the
cogeneration system meets on a system-wide basis the requirement in
paragraph (2)(i)(B) or (2)(ii) of this definition, the unit shall be
deemed to meet such requirement during that 12-month period or calendar
year.
    Combustion turbine means an enclosed device comprising:
    (1) If the device is simple cycle, a compressor, a combustor, and a
turbine and in which the flue gas resulting from the combustion of fuel
in the combustor passes through the turbine, rotating the turbine; and
    (2) If the device is combined cycle, the equipment described in
paragraph (1) of this definition and any associated duct burner, heat
recovery steam generator, and steam turbine.
    Commence commercial operation means, with regard to a unit:
    (1) To have begun to produce steam, gas, or other heated medium
used to generate electricity for sale or use, including test
generation, except as provided in Sec.  97.805.
    (i) For a unit that is a CSAPR NOX Ozone Season Group 2
unit under Sec.  97.804 on the later of January 1, 2005 or the date the
unit commences commercial operation as defined in the introductory text
of paragraph (1) of this definition and that subsequently undergoes a
physical change or is moved to a new location or source, such date
shall remain the date of commencement of commercial operation of the
unit, which shall continue to be treated as the same unit.
    (ii) For a unit that is a CSAPR NOX Ozone Season Group 2
unit under Sec.  97.804 on the later of January 1, 2005 or the date the
unit commences commercial operation as defined in the introductory text
of paragraph (1) of this definition and that is subsequently replaced
by a unit at the same or a different source, such date shall remain the
replaced unit's date of commencement of commercial operation, and the
replacement unit shall be treated as a separate unit with a separate
date for commencement of commercial operation as defined in paragraph
(1) or (2) of this definition as appropriate.
    (2) Notwithstanding paragraph (1) of this definition and except as
provided in Sec.  97.805, for a unit that is not a CSAPR NOX
Ozone Season Group 2 unit under Sec.  97.804 on the later of January 1,
2005 or the date the unit commences commercial operation as defined in
the introductory text of paragraph (1) of this definition, the unit's
date for commencement of commercial operation shall be the date on
which the unit becomes a CSAPR NOX Ozone Season Group 2 unit
under Sec.  97.804.
    (i) For a unit with a date for commencement of commercial operation
as defined in the introductory text of paragraph (2) of this definition
and that subsequently undergoes a physical change or is moved to a
different location or source, such date shall remain the date of
commencement of commercial operation of the unit,

which shall continue to be treated as the same unit.
    (ii) For a unit with a date for commencement of commercial
operation as defined in the introductory text of paragraph (2) of this
definition and that is subsequently replaced by a unit at the same or a
different source, such date shall remain the replaced unit's date of
commencement of commercial operation, and the replacement unit shall be
treated as a separate unit with a separate date for commencement of
commercial operation as defined in paragraph (1) or (2) of this
definition as appropriate.
    Common designated representative means, with regard to a control
period in a given year, a designated representative where, as of April
1 immediately after the allowance transfer deadline for such control
period, the same natural person is authorized under Sec. Sec.
97.813(a) and 97.815(a) as the designated representative for a group of
one or more base CSAPR NOX Ozone Season Group 2 sources and
units located in a State (and Indian country within the borders of such
State).
    Common designated representative's assurance level means, with
regard to a specific common designated representative and a State (and
Indian country within the borders of such State) and control period in
a given year for which the State assurance level is exceeded as
described in Sec.  97.806(c)(2)(iii), the common designated
representative's share of the State NOX Ozone Season Group 2
trading budget with the variability limit for the State for such
control period.
    Common designated representative's share means, with regard to a
specific common designated representative for a control period in a
given year:
    (1) With regard to a total amount of NOX emissions from
all base CSAPR NOX Ozone Season Group 2 units in a State
(and Indian country within the borders of such State) during such
control period, the total tonnage of NOX emissions during
such control period from a group of one or more base CSAPR
NOX Ozone Season Group 2 units located in such State (and
such Indian country) and having the common designated representative
for such control period;
    (2) With regard to a State NOX Ozone Season Group 2
trading budget with the variability limit for such control period, the
amount (rounded to the nearest allowance) equal to the sum of the total
amount of CSAPR NOX Ozone Season Group 2 allowances
allocated for such control period to a group of one or more base CSAPR
NOX Ozone Season Group 2 units located in the State (and
Indian country within the borders of such State) and having the common
designated representative for such control period and the total amount
of CSAPR NOX Ozone Season Group 2 allowances purchased by an
owner or operator of such base CSAPR NOX Ozone Season Group
2 units in an auction for such control period and submitted by the
State or the permitting authority to the Administrator for recordation
in the compliance accounts for such base CSAPR NOX Ozone
Season Group 2 units in accordance with the CSAPR NOX Ozone
Season Group 2 allowance auction provisions in a SIP revision approved
by the Administrator under Sec.  52.38(b)(6), (8), or (9) of this
chapter, multiplied by the sum of the State NOX Ozone Season
Group 2 trading budget under Sec.  97.810(a) and the State's
variability limit under Sec.  97.810(b) for such control period and
divided by the greater of such State NOX Ozone Season Group
2 trading budget or the sum of all amounts of CSAPR NOX
Ozone Season Group 2 allowances for such control period treated for
purposes of this definition as having been allocated to or purchased in
the State's auction for all such base CSAPR NOX Ozone Season
Group 2 units, provided that--
    (i) The allocations of CSAPR NOX Ozone Season Group 2
allowances for any control period taken into account for purposes of
this definition exclude any CSAPR NOX Ozone Season Group 2
allowances allocated for such control period under Sec.  97.526(c)(1)
or (3), or under Sec.  97.526(c)(4) or (5) pursuant to an exception
under Sec.  97.526(c)(1) or (3);
    (ii) In the case of the base CSAPR NOX Ozone Season
Group 2 units at a base CSAPR NOX Ozone Season Group 2
source in a State with regard to which CSAPR NOX Ozone
Season Group 2 allowances have been allocated under Sec.  97.526(c)(2)
for a given control period, the units at each such source will be
treated, solely for purposes of this definition, as having been
allocated under Sec.  97.526(c)(2), or under Sec.  97.526(c)(4) or (5)
pursuant to an exception under Sec.  97.526(c)(2), an amount of CSAPR
NOX Ozone Season Group 2 allowances for such control period
equal to the sum of the total amount of CSAPR NOX Ozone
Season Group 1 allowances allocated for such control period to such
units and the total amount of CSAPR NOX Ozone Season Group 1
allowances purchased by an owner or operator of such units in an
auction for such control period and submitted by the State or the
permitting authority to the Administrator for recordation in the
compliance account for such source in accordance with the CSAPR
NOX Ozone Season Group 1 allowance auction provisions in a
SIP revision approved by the Administrator under Sec.  52.38(b)(4) or
(5) of this chapter, divided by the conversion factor determined under
Sec.  97.526(c)(2)(ii) with regard to the State's SIP revision under
Sec.  52.38(b)(6) of this chapter, and rounded up to the nearest whole
allowance; and
    (iii) In the case of a base CSAPR NOX Ozone Season Group
2 unit that operates during, but has no amount of CSAPR NOX
Ozone Season Group 2 allowances allocated under Sec. Sec.  97.811 and
97.812 for, such control period, the unit shall be treated, solely for
purposes of this definition, as being allocated an amount (rounded to
the nearest allowance) of CSAPR NOX Ozone Season Group 2
allowances for such control period equal to the unit's allowable
NOX emission rate applicable to such control period,
multiplied by a capacity factor of 0.92 (if the unit is a boiler
combusting any amount of coal or coal-derived fuel during such control
period), 0.32 (if the unit is a simple combustion turbine during such
control period), 0.71 (if the unit is a combined cycle turbine during
such control period), 0.73 (if the unit is an integrated coal
gasification combined cycle unit during such control period), or 0.44
(for any other unit), multiplied by the unit's maximum hourly load as
reported in accordance with this subpart and by 3,672 hours/control
period, and divided by 2,000 lb/ton.
    Common stack means a single flue through which emissions from 2 or
more units are exhausted.
    Compliance account means an Allowance Management System account,
established by the Administrator for a CSAPR NOX Ozone
Season Group 2 source under this subpart, in which any CSAPR
NOX Ozone Season Group 2 allowance allocations to the CSAPR
NOX Ozone Season Group 2 units at the source are recorded
and in which are held any CSAPR NOX Ozone Season Group 2
allowances available for use for a control period in a given year in
complying with the source's CSAPR NOX Ozone Season Group 2
emissions limitation in accordance with Sec. Sec.  97.806 and 97.824.
    Continuous emission monitoring system or CEMS means the equipment
required under this subpart to sample, analyze, measure, and provide,
by means of readings recorded at least once every 15 minutes and using
an automated data acquisition and handling system (DAHS), a permanent
record of NOX emissions, stack gas volumetric flow rate,
stack gas moisture

content, and O2 or CO2 concentration (as
applicable), in a manner consistent with part 75 of this chapter and
Sec. Sec.  97.830 through 97.835. The following systems are the
principal types of continuous emission monitoring systems:
    (1) A flow monitoring system, consisting of a stack flow rate
monitor and an automated data acquisition and handling system and
providing a permanent, continuous record of stack gas volumetric flow
rate, in standard cubic feet per hour (scfh);
    (2) A NOX concentration monitoring system, consisting of
a NOX pollutant concentration monitor and an automated data
acquisition and handling system and providing a permanent, continuous
record of NOX emissions, in parts per million (ppm);
    (3) A NOX emission rate (or NOX-diluent)
monitoring system, consisting of a NOX pollutant
concentration monitor, a diluent gas (CO2 or O2)
monitor, and an automated data acquisition and handling system and
providing a permanent, continuous record of NOX
concentration, in parts per million (ppm), diluent gas concentration,
in percent CO2 or O2, and NOX emission
rate, in pounds per million British thermal units (lb/mmBtu);
    (4) A moisture monitoring system, as defined in Sec.  75.11(b)(2)
of this chapter and providing a permanent, continuous record of the
stack gas moisture content, in percent H2O;
    (5) A CO2 monitoring system, consisting of a
CO2 pollutant concentration monitor (or an O2
monitor plus suitable mathematical equations from which the
CO2 concentration is derived) and an automated data
acquisition and handling system and providing a permanent, continuous
record of CO2 emissions, in percent CO2; and
    (6) An O2 monitoring system, consisting of an
O2 concentration monitor and an automated data acquisition
and handling system and providing a permanent, continuous record of
O2, in percent O2.
    Control period means the period starting May 1 of a calendar year,
except as provided in Sec.  97.806(c)(3), and ending on September 30 of
the same year, inclusive.
    CSAPR NOX Annual Trading Program means a multi-state NOX
air pollution control and emission reduction program established in
accordance with subpart AAAAA of this part and Sec.  52.38(a) of this
chapter (including such a program that is revised in a SIP revision
approved by the Administrator under Sec.  52.38(a)(3) or (4) of this
chapter or that is established in a SIP revision approved by the
Administrator under Sec.  52.38(a)(5) of this chapter), as a means of
mitigating interstate transport of fine particulates and
NOX.
    CSAPR NOX Ozone Season Group 1 allowance means a limited
authorization issued and allocated or auctioned by the Administrator
under subpart BBBBB of this part, or by a State or permitting authority
under a SIP revision approved by the Administrator under Sec.
52.38(b)(3), (4), or (5) of this chapter, to emit one ton of
NOX during a control period of the specified calendar year
for which the authorization is allocated or auctioned or of any
calendar year thereafter under the CSAPR NOX Ozone Season
Group 1 Trading Program.
    CSAPR NOX Ozone Season Group 1 Trading Program means a multi-state
NOX air pollution control and emission reduction program
established in accordance with subpart BBBBB of this part and Sec.
52.38(b)(1), (b)(2)(i) and (ii), (b)(3) through (5), and (b)(10)
through (12) of this chapter (including such a program that is revised
in a SIP revision approved by the Administrator under Sec.  52.38(b)(3)
or (4) of this chapter or that is established in a SIP revision
approved by the Administrator under Sec.  52.38(b)(5) of this chapter),
as a means of mitigating interstate transport of ozone and
NOX.
    CSAPR NOX Ozone Season Group 2 allowance means a limited
authorization issued and allocated or auctioned by the Administrator
under this subpart or Sec.  97.526(c), or by a State or permitting
authority under a SIP revision approved by the Administrator under
Sec.  52.38(b)(6), (7), (8), or (9) of this chapter, to emit one ton of
NOX during a control period of the specified calendar year
for which the authorization is allocated or auctioned or of any
calendar year thereafter under the CSAPR NOX Ozone Season
Group 2 Trading Program.
    CSAPR NOX Ozone Season Group 2 allowance deduction or deduct CSAPR
NOX Ozone Season Group 2 allowances means the permanent
withdrawal of CSAPR NOX Ozone Season Group 2 allowances by
the Administrator from a compliance account (e.g., in order to account
for compliance with the CSAPR NOX Ozone Season Group 2
emissions limitation) or from an assurance account (e.g., in order to
account for compliance with the assurance provisions under Sec. Sec.
97.806 and 97.825).
    CSAPR NOX Ozone Season Group 2 allowances held or hold CSAPR
NOX Ozone Season Group 2 allowances means the CSAPR
NOX Ozone Season Group 2 allowances treated as included in
an Allowance Management System account as of a specified point in time
because at that time they:
    (1) Have been recorded by the Administrator in the account or
transferred into the account by a correctly submitted, but not yet
recorded, CSAPR NOX Ozone Season Group 2 allowance transfer
in accordance with this subpart; and
    (2) Have not been transferred out of the account by a correctly
submitted, but not yet recorded, CSAPR NOX Ozone Season
Group 2 allowance transfer in accordance with this subpart.
    CSAPR NOX Ozone Season Group 2 emissions limitation means, for a
CSAPR NOX Ozone Season Group 2 source, the tonnage of
NOX emissions authorized in a control period in a given year
by the CSAPR NOX Ozone Season Group 2 allowances available
for deduction for the source under Sec.  97.824(a) for such control
period.
    CSAPR NOX Ozone Season Group 2 source means a source that includes
one or more CSAPR NOX Ozone Season Group 2 units.
    CSAPR NOX Ozone Season Group 2 Trading Program means a multi-state
NOX air pollution control and emission reduction program
established in accordance with this subpart and Sec.  52.38(b)(1),
(b)(2)(i) and (iii), (b)(6) through (11), and (b)(13) of this chapter
(including such a program that is revised in a SIP revision approved by
the Administrator under Sec.  52.38(b)(7) or (8) of this chapter or
that is established in a SIP revision approved by the Administrator
under Sec.  52.38(b)(6) or (9) of this chapter), as a means of
mitigating interstate transport of ozone and NOX.
    CSAPR NOX Ozone Season Group 2 unit means a unit that is subject to
the CSAPR NOX Ozone Season Group 2 Trading Program.
    CSAPR SO2 Group 1 Trading Program means a multi-state
SO2 air pollution control and emission reduction program
established in accordance with subpart CCCCC of this part and Sec.
52.39 (a), (b), (d) through (f), and (j) through (l) of this chapter
(including such a program that is revised in a SIP revision approved by
the Administrator under Sec.  52.39(d) or (e) of this chapter or that
is established in a SIP revision approved by the Administrator under
Sec.  52.39(f) of this chapter), as a means of mitigating interstate
transport of fine particulates and SO2.
    CSAPR SO2 Group 2 Trading Program means a multi-state
SO2 air pollution control and emission reduction program
established in accordance with subpart DDDDD of this part and Sec.
52.39(a), (c), (g) through (k), and (m) of this chapter (including such
a program that is revised in a SIP revision approved by

the Administrator under Sec.  52.39(g) or (h) of this chapter or that
is established in a SIP revision approved by the Administrator under
Sec.  52.39(i) of this chapter), as a means of mitigating interstate
transport of fine particulates and SO2.
    Designated representative means, for a CSAPR NOX Ozone
Season Group 2 source and each CSAPR NOX Ozone Season Group
2 unit at the source, the natural person who is authorized by the
owners and operators of the source and all such units at the source, in
accordance with this subpart, to represent and legally bind each owner
and operator in matters pertaining to the CSAPR NOX Ozone
Season Group 2 Trading Program. If the CSAPR NOX Ozone
Season Group 2 source is also subject to the Acid Rain Program, CSAPR
NOX Annual Trading Program, CSAPR SO2 Group 1
Trading Program, or CSAPR SO2 Group 2 Trading Program, then
this natural person shall be the same natural person as the designated
representative as defined in the respective program.
    Emissions means air pollutants exhausted from a unit or source into
the atmosphere, as measured, recorded, and reported to the
Administrator by the designated representative, and as modified by the
Administrator:
    (1) In accordance with this subpart; and
    (2) With regard to a period before the unit or source is required
to measure, record, and report such air pollutants in accordance with
this subpart, in accordance with part 75 of this chapter.
    Excess emissions means any ton of emissions from the CSAPR
NOX Ozone Season Group 2 units at a CSAPR NOX
Ozone Season Group 2 source during a control period in a given year
that exceeds the CSAPR NOX Ozone Season Group 2 emissions
limitation for the source for such control period.
    Fossil fuel means--
    (1) Natural gas, petroleum, coal, or any form of solid, liquid, or
gaseous fuel derived from such material; or
    (2) For purposes of applying the limitation on ``average annual
fuel consumption of fossil fuel'' in Sec.  97.804(b)(2)(i)(B) and
(b)(2)(ii), natural gas, petroleum, coal, or any form of solid, liquid,
or gaseous fuel derived from such material for the purpose of creating
useful heat.
    Fossil-fuel-fired means, with regard to a unit, combusting any
amount of fossil fuel in 2005 or any calendar year thereafter.
    General account means an Allowance Management System account,
established under this subpart, that is not a compliance account or an
assurance account.
    Generator means a device that produces electricity.
    Heat input means, for a unit for a specified period of unit
operating time, the product (in mmBtu) of the gross calorific value of
the fuel (in mmBtu/lb) fed into the unit multiplied by the fuel feed
rate (in lb of fuel/time) and unit operating time, as measured,
recorded, and reported to the Administrator by the designated
representative and as modified by the Administrator in accordance with
this subpart and excluding the heat derived from preheated combustion
air, recirculated flue gases, or exhaust.
    Heat input rate means, for a unit, the quotient (in mmBtu/hr) of
the amount of heat input for a specified period of unit operating time
(in mmBtu) divided by unit operating time (in hr) or, for a unit and a
specific fuel, the amount of heat input attributed to the fuel (in
mmBtu) divided by the unit operating time (in hr) during which the unit
combusts the fuel.
    Heat rate means, for a unit, the quotient (in mmBtu/unit of load)
of the unit's maximum design heat input rate (in Btu/hr) divided by the
product of 1,000,000 Btu/mmBtu and the unit's maximum hourly load.
    Indian country means ``Indian country'' as defined in 18 U.S.C.
1151.
    Life-of-the-unit, firm power contractual arrangement means a unit
participation power sales agreement under which a utility or industrial
customer reserves, or is entitled to receive, a specified amount or
percentage of nameplate capacity and associated energy generated by any
specified unit and pays its proportional amount of such unit's total
costs, pursuant to a contract:
    (1) For the life of the unit;
    (2) For a cumulative term of no less than 30 years, including
contracts that permit an election for early termination; or
    (3) For a period no less than 25 years or 70 percent of the
economic useful life of the unit determined as of the time the unit is
built, with option rights to purchase or release some portion of the
nameplate capacity and associated energy generated by the unit at the
end of the period.
    Maximum design heat input rate means, for a unit, the maximum
amount of fuel per hour (in Btu/hr) that the unit is capable of
combusting on a steady state basis as of the initial installation of
the unit as specified by the manufacturer of the unit.
    Monitoring system means any monitoring system that meets the
requirements of this subpart, including a continuous emission
monitoring system, an alternative monitoring system, or an excepted
monitoring system under part 75 of this chapter.
    Nameplate capacity means, starting from the initial installation of
a generator, the maximum electrical generating output (in MWe, rounded
to the nearest tenth) that the generator is capable of producing on a
steady state basis and during continuous operation (when not restricted
by seasonal or other deratings) as of such installation as specified by
the manufacturer of the generator or, starting from the completion of
any subsequent physical change in the generator resulting in an
increase in the maximum electrical generating output 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 (in MWe, rounded to the nearest tenth) as of
such completion as specified by the person conducting the physical
change.
    Natural gas means ``natural gas'' as defined in Sec.  72.2 of this
chapter.
    Newly affected CSAPR NOX Ozone Season Group 2 unit means a unit
that was not a CSAPR NOX Ozone Season Group 2 unit when it
began operating but that thereafter becomes a CSAPR NOX
Ozone Season Group 2 unit.
    Operate or operation means, with regard to a unit, to combust fuel.
    Operator means, for a CSAPR NOX Ozone Season Group 2
source or a CSAPR NOX Ozone Season Group 2 unit at a source
respectively, any person who operates, controls, or supervises a CSAPR
NOX Ozone Season Group 2 unit at the source or the CSAPR
NOX Ozone Season Group 2 unit and shall include, but not be
limited to, any holding company, utility system, or plant manager of
such source or unit.
    Owner means, for a CSAPR NOX Ozone Season Group 2 source
or a CSAPR NOX Ozone Season Group 2 unit at a source
respectively, any of the following persons:
    (1) Any holder of any portion of the legal or equitable title in a
CSAPR NOX Ozone Season Group 2 unit at the source or the
CSAPR NOX Ozone Season Group 2 unit;
    (2) Any holder of a leasehold interest in a CSAPR NOX
Ozone Season Group 2 unit at the source or the CSAPR NOX
Ozone Season Group 2 unit, provided that, unless expressly provided for
in a leasehold agreement, ``owner'' shall not include a passive lessor,
or a person who has an equitable interest through such lessor, whose
rental payments are not based (either directly or indirectly)

on the revenues or income from such CSAPR NOX Ozone Season
Group 2 unit; and
    (3) Any purchaser of power from a CSAPR NOX Ozone Season
Group 2 unit at the source or the CSAPR NOX Ozone Season
Group 2 unit under a life-of-the-unit, firm power contractual
arrangement.
    Permanently retired means, with regard to a unit, a unit that is
unavailable for service and that the unit's owners and operators do not
expect to return to service in the future.
    Permitting authority means ``permitting authority'' as defined in
Sec. Sec.  70.2 and 71.2 of this chapter.
    Potential electrical output capacity means, for a unit (in MWh/yr),
33 percent of the unit's maximum design heat input rate (in Btu/hr),
divided by 3,413 Btu/kWh, divided by 1,000 kWh/MWh, and multiplied by
8,760 hr/yr.
    Receive or receipt of means, when referring to the Administrator,
to come into possession of a document, information, or correspondence
(whether sent in hard copy or by authorized electronic transmission),
as indicated in an official log, or by a notation made on the document,
information, or correspondence, by the Administrator in the regular
course of business.
    Recordation, record, or recorded means, with regard to CSAPR
NOX Ozone Season Group 2 allowances, the moving of CSAPR
NOX Ozone Season Group 2 allowances by the Administrator
into, out of, or between Allowance Management System accounts, for
purposes of allocation, auction, transfer, or deduction.
    Reference method means any direct test method of sampling and
analyzing for an air pollutant as specified in Sec.  75.22 of this
chapter.
    Replacement, replace, or replaced means, with regard to a unit, the
demolishing of a unit, or the permanent retirement and permanent
disabling of a unit, and the construction of another unit (the
replacement unit) to be used instead of the demolished or retired unit
(the replaced unit).
    Sequential use of energy means:
    (1) The use of reject heat from electricity production in a useful
thermal energy application or process; or
    (2) The use of reject heat from a useful thermal energy application
or process in electricity production.
    Serial number means, for a CSAPR NOX Ozone Season Group
2 allowance, the unique identification number assigned to each CSAPR
NOX Ozone Season Group 2 allowance by the Administrator.
    Solid waste incineration unit means a stationary, fossil-fuel-fired
boiler or stationary, fossil-fuel-fired combustion turbine that is a
``solid waste incineration unit'' as defined in section 129(g)(1) of
the Clean Air Act.
    Source means all buildings, structures, or installations located in
one or more contiguous or adjacent properties under common control of
the same person or persons. This definition does not change or
otherwise affect the definition of ``major source'', ``stationary
source'', or ``source'' as set forth and implemented in a title V
operating permit program or any other program under the Clean Air Act.
    State means one of the States that is subject to the CSAPR
NOX Ozone Season Group 2 Trading Program pursuant to Sec.
52.38(b)(1), (2)(i) and (iii), (6) through (11), and (13) of this
chapter.
    Submit or serve means to send or transmit a document, information,
or correspondence to the person specified in accordance with the
applicable regulation:
    (1) In person;
    (2) By United States Postal Service; or
    (3) By other means of dispatch or transmission and delivery;
    (4) Provided that compliance with any ``submission'' or ``service''
deadline shall be determined by the date of dispatch, transmission, or
mailing and not the date of receipt.
    Topping-cycle unit means a unit in which the energy input to the
unit is first used to produce useful power, including electricity,
where at least some of the reject heat from the electricity production
is then used to provide useful thermal energy.
    Total energy input means, for a unit, total energy of all forms
supplied to the unit, excluding energy produced by the unit. Each form
of energy supplied shall be measured by the lower heating value of that
form of energy calculated as follows:

LHV = HHV - 10.55 (W + 9H)

where:

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

    Total energy output means, for a unit, the sum of useful power and
useful thermal energy produced by the unit.
    Unit means a stationary, fossil-fuel-fired boiler, stationary,
fossil-fuel-fired combustion turbine, or other stationary, fossil-fuel-
fired combustion device. A unit that undergoes a physical change or is
moved to a different location or source shall continue to be treated as
the same unit. A unit (the replaced unit) that is replaced by another
unit (the replacement unit) at the same or a different source shall
continue to be treated as the same unit, and the replacement unit shall
be treated as a separate unit.
    Unit operating day means, with regard to a unit, a calendar day in
which the unit combusts any fuel.
    Unit operating hour or hour of unit operation means, with regard to
a unit, an hour in which the unit combusts any fuel.
    Useful power means, with regard to a unit, electricity or
mechanical energy that the unit makes available for use, excluding any
such energy used in the power production process (which process
includes, but is not limited to, any on-site processing or treatment of
fuel combusted at the unit and any on-site emission controls).
    Useful thermal energy means thermal energy that is:
    (1) Made available to an industrial or commercial process (not a
power production process), excluding any heat contained in condensate
return or makeup water;
    (2) Used in a heating application (e.g., space heating or domestic
hot water heating); or
    (3) Used in a space cooling application (i.e., in an absorption
chiller).
    Utility power distribution system means the portion of an
electricity grid owned or operated by a utility and dedicated to
delivering electricity to customers.

Sec.  97.803  Measurements, abbreviations, and acronyms.

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

Btu--British thermal unit
CO2--carbon dioxide
CSAPR--Cross-State Air Pollution Rule
H2O--water
hr--hour
kWh--kilowatt-hour
lb--pound
mmBtu--million Btu
MWe--megawatt electrical
MWh--megawatt-hour
NOX--nitrogen oxides
O2--oxygen
ppm--parts per million
scfh--standard cubic feet per hour
SIP--State implementation plan
SO2--sulfur dioxide
TR--Transport Rule
yr--year

Sec.  97.804  Applicability.

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

    (1) The following units in a State (and Indian country within the
borders of such State) shall be CSAPR NOX Ozone Season Group
2 units, and any source that includes one or more such units shall be a
CSAPR NOX Ozone Season Group 2 source, subject to the
requirements of this subpart: Any stationary, fossil-fuel-fired boiler
or stationary, fossil-fuel-fired combustion turbine serving at any
time, on or after January 1, 2005, a generator with nameplate capacity
of more than 25 MWe producing electricity for sale.
    (2) If a stationary boiler or stationary combustion turbine that,
under paragraph (a)(1) of this section, is not a CSAPR NOX
Ozone Season Group 2 unit begins to combust fossil fuel or to serve a
generator with nameplate capacity of more than 25 MWe producing
electricity for sale, the unit shall become a CSAPR NOX
Ozone Season Group 2 unit as provided in paragraph (a)(1) of this
section on the first date on which it both combusts fossil fuel and
serves such generator.
    (b) Any unit in a State (and Indian country within the borders of
such State) that otherwise is a CSAPR NOX Ozone Season Group
2 unit under paragraph (a) of this section and that meets the
requirements set forth in paragraph (b)(1)(i) or (b)(2)(i) of this
section shall not be a CSAPR NOX Ozone Season Group 2 unit:
    (1)(i) Any unit:
    (A) Qualifying as a cogeneration unit throughout the later of 2005
or the 12-month period starting on the date the unit first produces
electricity and continuing to qualify as a cogeneration unit throughout
each calendar year ending after the later of 2005 or such 12-month
period; and
    (B) Not supplying in 2005 or any calendar year thereafter more than
one-third of the unit's potential electrical output capacity or 219,000
MWh, whichever is greater, to any utility power distribution system for
sale.
    (ii) If, after qualifying under paragraph (b)(1)(i) of this section
as not being a CSAPR NOX Ozone Season Group 2 unit, a unit
subsequently no longer meets all the requirements of paragraph
(b)(1)(i) of this section, the unit shall become a CSAPR NOX
Ozone Season Group 2 unit starting on the earlier of January 1 after
the first calendar year during which the unit first no longer qualifies
as a cogeneration unit or January 1 after the first calendar year
during which the unit no longer meets the requirements of paragraph
(b)(1)(i)(B) of this section. The unit shall thereafter continue to be
a CSAPR NOX Ozone Season Group 2 unit.
    (2)(i) Any unit:
    (A) Qualifying as a solid waste incineration unit throughout the
later of 2005 or the 12-month period starting on the date the unit
first produces electricity and continuing to qualify as a solid waste
incineration unit throughout each calendar year ending after the later
of 2005 or such 12-month period; and
    (B) With an average annual fuel consumption of fossil fuel for the
first 3 consecutive calendar years of operation starting no earlier
than 2005 of less than 20 percent (on a Btu basis) and an average
annual fuel consumption of fossil fuel for any 3 consecutive calendar
years thereafter of less than 20 percent (on a Btu basis).
    (ii) If, after qualifying under paragraph (b)(2)(i) of this section
as not being a CSAPR NOX Ozone Season Group 2 unit, a unit
subsequently no longer meets all the requirements of paragraph
(b)(2)(i) of this section, the unit shall become a CSAPR NOX
Ozone Season Group 2 unit starting on the earlier of January 1 after
the first calendar year during which the unit first no longer qualifies
as a solid waste incineration unit or January 1 after the first 3
consecutive calendar years after 2005 for which the unit has an average
annual fuel consumption of fossil fuel of 20 percent or more. The unit
shall thereafter continue to be a CSAPR NOX Ozone Season
Group 2 unit.
    (c) A certifying official of an owner or operator of any unit or
other equipment may submit a petition (including any supporting
documents) to the Administrator at any time for a determination
concerning the applicability, under paragraphs (a) and (b) of this
section or a SIP revision approved under Sec.  52.38(b)(6), (8), or (9)
of this chapter, of the CSAPR NOX Ozone Season Group 2
Trading Program to the unit or other equipment.
    (1) Petition content. The petition shall be in writing and include
the identification of the unit or other equipment and the relevant
facts about the unit or other equipment. The petition and any other
documents provided to the Administrator in connection with the petition
shall include the following certification statement, signed by the
certifying official: ``I am authorized to make this submission on
behalf of the owners and operators of the unit or other equipment for
which the submission is made. I certify under penalty of law that I
have personally examined, and am familiar with, the statements and
information submitted in this document and all its attachments. Based
on my inquiry of those individuals with primary responsibility for
obtaining the information, I certify that the statements and
information are to the best of my knowledge and belief true, accurate,
and complete. I am aware that there are significant penalties for
submitting false statements and information or omitting required
statements and information, including the possibility of fine or
imprisonment.''
    (2) Response. The Administrator will issue a written response to
the petition and may request supplemental information determined by the
Administrator to be relevant to such petition. The Administrator's
determination concerning the applicability, under paragraphs (a) and
(b) of this section, of the CSAPR NOX Ozone Season Group 2
Trading Program to the unit or other equipment shall be binding on any
State or permitting authority unless the Administrator determines that
the petition or other documents or information provided in connection
with the petition contained significant, relevant errors or omissions.

Sec.  97.805  Retired unit exemption.

    (a)(1) Any CSAPR NOX Ozone Season Group 2 unit that is
permanently retired shall be exempt from Sec.  97.806(b) and (c)(1),
Sec.  97.824, and Sec. Sec.  97.830 through 97.835.
    (2) The exemption under paragraph (a)(1) of this section shall
become effective the day on which the CSAPR NOX Ozone Season
Group 2 unit is permanently retired. Within 30 days of the unit's
permanent retirement, the designated representative shall submit a
statement to the Administrator. The statement shall state, in a format
prescribed by the Administrator, that the unit was permanently retired
on a specified date and will comply with the requirements of paragraph
(b) of this section.
    (b) Special provisions. (1) A unit exempt under paragraph (a) of
this section shall not emit any NOX, starting on the date
that the exemption takes effect.
    (2) For a period of 5 years from the date the records are created,
the owners and operators of a unit exempt under paragraph (a) of this
section shall retain, at the source that includes the unit, records
demonstrating that the unit is permanently retired. The 5-year period
for keeping records may be extended for cause, at any time before the
end of the period, in writing by the Administrator. The owners and
operators bear the burden of proof that the unit is permanently
retired.
    (3) The owners and operators and, to the extent applicable, the
designated representative of a unit exempt under paragraph (a) of this
section shall

comply with the requirements of the CSAPR NOX Ozone Season
Group 2 Trading Program concerning all periods for which the exemption
is not in effect, even if such requirements arise, or must be complied
with, after the exemption takes effect.
    (4) A unit exempt under paragraph (a) of this section shall lose
its exemption on the first date on which the unit resumes operation.
Such unit shall be treated, for purposes of applying allocation,
monitoring, reporting, and recordkeeping requirements under this
subpart, as a unit that commences commercial operation on the first
date on which the unit resumes operation.

Sec.  97.806  Standard requirements.

    (a) Designated representative requirements. The owners and
operators shall comply with the requirement to have a designated
representative, and may have an alternate designated representative, in
accordance with Sec. Sec.  97.813 through 97.818.
    (b) Emissions monitoring, reporting, and recordkeeping
requirements. (1) The owners and operators, and the designated
representative, of each CSAPR NOX Ozone Season Group 2
source and each CSAPR NOX Ozone Season Group 2 unit at the
source shall comply with the monitoring, reporting, and recordkeeping
requirements of Sec. Sec.  97.830 through 97.835.
    (2) The emissions data determined in accordance with Sec. Sec.
97.830 through 97.835 shall be used to calculate allocations of CSAPR
NOX Ozone Season Group 2 allowances under Sec. Sec.
97.811(a)(2) and (b) and 97.812 and to determine compliance with the
CSAPR NOX Ozone Season Group 2 emissions limitation and
assurance provisions under paragraph (c) of this section, provided
that, for each monitoring location from which mass emissions are
reported, the mass emissions amount used in calculating such
allocations and determining such compliance shall be the mass emissions
amount for the monitoring location determined in accordance with
Sec. Sec.  97.830 through 97.835 and rounded to the nearest ton, with
any fraction of a ton less than 0.50 being deemed to be zero.
    (c) NOX emissions requirements--(1) CSAPR NOX Ozone Season Group 2
emissions limitation. (i) As of the allowance transfer deadline for a
control period in a given year, the owners and operators of each CSAPR
NOX Ozone Season Group 2 source and each CSAPR
NOX Ozone Season Group 2 unit at the source shall hold, in
the source's compliance account, CSAPR NOX Ozone Season
Group 2 allowances available for deduction for such control period
under Sec.  97.824(a) in an amount not less than the tons of total
NOX emissions for such control period from all CSAPR
NOX Ozone Season Group 2 units at the source.
    (ii) If total NOX emissions during a control period in a
given year from the CSAPR NOX Ozone Season Group 2 units at
a CSAPR NOX Ozone Season Group 2 source are in excess of the
CSAPR NOX Ozone Season Group 2 emissions limitation set
forth in paragraph (c)(1)(i) of this section, then:
    (A) The owners and operators of the source and each CSAPR
NOX Ozone Season Group 2 unit at the source shall hold the
CSAPR NOX Ozone Season Group 2 allowances required for
deduction under Sec.  97.824(d); and
    (B) The owners and operators of the source and each CSAPR
NOX Ozone Season Group 2 unit at the source shall pay any
fine, penalty, or assessment or comply with any other remedy imposed,
for the same violations, under the Clean Air Act, and each ton of such
excess emissions and each day of such control period shall constitute a
separate violation of this subpart and the Clean Air Act.
    (2) CSAPR NOX Ozone Season Group 2 assurance provisions. (i) If
total NOX emissions during a control period in a given year
from all base CSAPR NOX Ozone Season Group 2 units at base
CSAPR NOX Ozone Season Group 2 sources in a State (and
Indian country within the borders of such State) exceed the State
assurance level, then the owners and operators of such sources and
units in each group of one or more sources and units having a common
designated representative for such control period, where the common
designated representative's share of such NOX emissions
during such control period exceeds the common designated
representative's assurance level for the State and such control period,
shall hold (in the assurance account established for the owners and
operators of such group) CSAPR NOX Ozone Season Group 2
allowances available for deduction for such control period under Sec.
97.825(a) in an amount equal to two times the product (rounded to the
nearest whole number), as determined by the Administrator in accordance
with Sec.  97.825(b), of multiplying--
    (A) The quotient of the amount by which the common designated
representative's share of such NOX emissions exceeds the
common designated representative's assurance level divided by the sum
of the amounts, determined for all common designated representatives
for such sources and units in the State (and Indian country within the
borders of such State) for such control period, by which each common
designated representative's share of such NOX emissions
exceeds the respective common designated representative's assurance
level; and
    (B) The amount by which total NOX emissions from all
base CSAPR NOX Ozone Season Group 2 units at base CSAPR
NOX Ozone Season Group 2 sources in the State (and Indian
country within the borders of such State) for such control period
exceed the State assurance level.
    (ii) The owners and operators shall hold the CSAPR NOX
Ozone Season Group 2 allowances required under paragraph (c)(2)(i) of
this section, as of midnight of November 1 (if it is a business day),
or midnight of the first business day thereafter (if November 1 is not
a business day), immediately after the year of such control period.
    (iii) Total NOX emissions from all base CSAPR
NOX Ozone Season Group 2 units at base CSAPR NOX
Ozone Season Group 2 sources in a State (and Indian country within the
borders of such State) during a control period in a given year exceed
the State assurance level if such total NOX emissions exceed
the sum, for such control period, of the State NOX Ozone
Season Group 2 trading budget under Sec.  97.810(a) and the State's
variability limit under Sec.  97.810(b).
    (iv) It shall not be a violation of this subpart or of the Clean
Air Act if total NOX emissions from all base CSAPR
NOX Ozone Season Group 2 units at base CSAPR NOX
Ozone Season Group 2 sources in a State (and Indian country within the
borders of such State) during a control period exceed the State
assurance level or if a common designated representative's share of
total NOX emissions from the base CSAPR NOX Ozone
Season Group 2 units at base CSAPR NOX Ozone Season Group 2
sources in a State (and Indian country within the borders of such
State) during a control period exceeds the common designated
representative's assurance level.
    (v) To the extent the owners and operators fail to hold CSAPR
NOX Ozone Season Group 2 allowances for a control period in
a given year in accordance with paragraphs (c)(2)(i) through (iii) of
this section,
    (A) The owners and operators shall pay any fine, penalty, or
assessment or comply with any other remedy imposed under the Clean Air
Act; and
    (B) Each CSAPR NOX Ozone Season Group 2 allowance that
the owners and operators fail to hold for such control

period in accordance with paragraphs (c)(2)(i) through (iii) of this
section and each day of such control period shall constitute a separate
violation of this subpart and the Clean Air Act.
    (3) Compliance periods. (i) A CSAPR NOX Ozone Season
Group 2 unit shall be subject to the requirements under paragraph
(c)(1) of this section for the control period starting on the later of
May 1, 2017 or the deadline for meeting the unit's monitor
certification requirements under Sec.  97.830(b) and for each control
period thereafter.
    (ii) A base CSAPR NOX Ozone Season Group 2 unit shall be
subject to the requirements under paragraph (c)(2) of this section for
the control period starting on the later of May 1, 2017 or the deadline
for meeting the unit's monitor certification requirements under Sec.
97.830(b) and for each control period thereafter.
    (4) Vintage of CSAPR NOX Ozone Season Group 2 allowances held for
compliance. (i) A CSAPR NOX Ozone Season Group 2 allowance
held for compliance with the requirements under paragraph (c)(1)(i) of
this section for a control period in a given year must be a CSAPR
NOX Ozone Season Group 2 allowance that was allocated or
auctioned for such control period or a control period in a prior year.
    (ii) A CSAPR NOX Ozone Season Group 2 allowance held for
compliance with the requirements under paragraphs (c)(1)(ii)(A) and
(c)(2)(i) through (iii) of this section for a control period in a given
year must be a CSAPR NOX Ozone Season Group 2 allowance that
was allocated or auctioned for a control period in a prior year or the
control period in the given year or in the immediately following year.
    (5) Allowance Management System requirements. Each CSAPR
NOX Ozone Season Group 2 allowance shall be held in,
deducted from, or transferred into, out of, or between Allowance
Management System accounts in accordance with this subpart.
    (6) Limited authorization. A CSAPR NOX Ozone Season
Group 2 allowance is a limited authorization to emit one ton of
NOX during the control period in one year. Such
authorization is limited in its use and duration as follows:
    (i) Such authorization shall only be used in accordance with the
CSAPR NOX Ozone Season Group 2 Trading Program; and
    (ii) Notwithstanding any other provision of this subpart, the
Administrator has the authority to terminate or limit the use and
duration of such authorization to the extent the Administrator
determines is necessary or appropriate to implement any provision of
the Clean Air Act.
    (7) Property right. A CSAPR NOX Ozone Season Group 2
allowance does not constitute a property right.
    (d) Title V permit requirements. (1) No title V permit revision
shall be required for any allocation, holding, deduction, or transfer
of CSAPR NOX Ozone Season Group 2 allowances in accordance
with this subpart.
    (2) A description of whether a unit is required to monitor and
report NOX emissions using a continuous emission monitoring
system (under subpart H of part 75 of this chapter), an excepted
monitoring system (under appendices D and E to part 75 of this
chapter), a low mass emissions excepted monitoring methodology (under
Sec.  75.19 of this chapter), or an alternative monitoring system
(under subpart E of part 75 of this chapter) in accordance with
Sec. Sec.  97.830 through 97.835 may be added to, or changed in, a
title V permit using minor permit modification procedures in accordance
with Sec. Sec.  70.7(e)(2) and 71.7(e)(1) of this chapter, provided
that the requirements applicable to the described monitoring and
reporting (as added or changed, respectively) are already incorporated
in such permit. This paragraph explicitly provides that the addition
of, or change to, a unit's description as described in the prior
sentence is eligible for minor permit modification procedures in
accordance with Sec. Sec.  70.7(e)(2)(i)(B) and 71.7(e)(1)(i)(B) of
this chapter.
    (e) Additional recordkeeping and reporting requirements. (1) Unless
otherwise provided, the owners and operators of each CSAPR
NOX Ozone Season Group 2 source and each CSAPR
NOX Ozone Season Group 2 unit at the source shall keep on
site at the source each of the following documents (in hardcopy or
electronic format) for a period of 5 years from the date the document
is created. This period may be extended for cause, at any time before
the end of 5 years, in writing by the Administrator.
    (i) The certificate of representation under Sec.  97.816 for the
designated representative for the source and each CSAPR NOX
Ozone Season Group 2 unit at the source and all documents that
demonstrate the truth of the statements in the certificate of
representation; provided that the certificate and documents shall be
retained on site at the source beyond such 5-year period until such
certificate of representation and documents are superseded because of
the submission of a new certificate of representation under Sec.
97.816 changing the designated representative.
    (ii) All emissions monitoring information, in accordance with this
subpart.
    (iii) Copies of all reports, compliance certifications, and other
submissions and all records made or required under, or to demonstrate
compliance with the requirements of, the CSAPR NOX Ozone
Season Group 2 Trading Program.
    (2) The designated representative of a CSAPR NOX Ozone
Season Group 2 source and each CSAPR NOX Ozone Season Group
2 unit at the source shall make all submissions required under the
CSAPR NOX Ozone Season Group 2 Trading Program, except as
provided in Sec.  97.818. This requirement does not change, create an
exemption from, or otherwise affect the responsible official submission
requirements under a title V operating permit program in parts 70 and
71 of this chapter.
    (f) Liability. (1) Any provision of the CSAPR NOX Ozone
Season Group 2 Trading Program that applies to a CSAPR NOX
Ozone Season Group 2 source or the designated representative of a CSAPR
NOX Ozone Season Group 2 source shall also apply to the
owners and operators of such source and of the CSAPR NOX
Ozone Season Group 2 units at the source.
    (2) Any provision of the CSAPR NOX Ozone Season Group 2
Trading Program that applies to a CSAPR NOX Ozone Season
Group 2 unit or the designated representative of a CSAPR NOX
Ozone Season Group 2 unit shall also apply to the owners and operators
of such unit.
    (g) Effect on other authorities. No provision of the CSAPR
NOX Ozone Season Group 2 Trading Program or exemption under
Sec.  97.805 shall be construed as exempting or excluding the owners
and operators, and the designated representative, of a CSAPR
NOX Ozone Season Group 2 source or CSAPR NOX
Ozone Season Group 2 unit from compliance with any other provision of
the applicable, approved State implementation plan, a federally
enforceable permit, or the Clean Air Act.

Sec.  97.807  Computation of time.

    (a) Unless otherwise stated, any time period scheduled, under the
CSAPR NOX Ozone Season Group 2 Trading Program, to begin on
the occurrence of an act or event shall begin on the day the act or
event occurs.
    (b) Unless otherwise stated, any time period scheduled, under the
CSAPR NOX Ozone Season Group 2 Trading Program, to begin
before the occurrence of an act or event shall be computed so that the
period ends the day before the act or event occurs.
    (c) Unless otherwise stated, if the final day of any time period,
under the

CSAPR NOX Ozone Season Group 2 Trading Program, is not a
business day, the time period shall be extended to the next business
day.

Sec.  97.808  Administrative appeal procedures.

    The administrative appeal procedures for decisions of the
Administrator under the CSAPR NOX Ozone Season Group 2
Trading Program are set forth in part 78 of this chapter.

Sec.  97.809   [Reserved]

Sec.  97.810  State NOX Ozone Season Group 2 trading budgets, new unit
set-asides, Indian country new unit set-asides, and variability limits.

    (a) The State NOX Ozone Season Group 2 trading budgets,
new unit set-asides, and Indian country new unit set-asides for
allocations of CSAPR NOX Ozone Season Group 2 allowances for
the control periods in 2017 and thereafter are as follows:
    (1) Alabama. (i) The NOX Ozone Season Group 2 trading
budget is 13,211 tons.
    (ii) The new unit set-aside is 255 tons.
    (iii) The Indian country new unit set-aside is 13 tons.
    (2) Arkansas. (i) The NOX Ozone Season Group 2 trading
budget for 2017 is 12,048 tons and for 2018 and thereafter is 9,210
tons.
    (ii) The new unit set-aside for 2017 is 240 tons and for 2018 and
thereafter is 185 tons.
    (iii) [Reserved]
    (3) Georgia. (i) The NOX Ozone Season Group 2 trading
budget is 8,481 tons.
    (ii) The new unit set-aside is 168 tons.
    (iii) [Reserved]
    (4) Illinois. (i) The NOX Ozone Season Group 2 trading
budget is 14,601 tons.
    (ii) The new unit set-aside is 302 tons.
    (iii) [Reserved]
    (5) Indiana. (i) The NOX Ozone Season Group 2 trading
budget is 23,303 tons.
    (ii) The new unit set-aside is 468 tons.
    (iii) [Reserved]
    (6) Iowa. (i) The NOX Ozone Season Group 2 trading
budget is 11,272 tons.
    (ii) The new unit set-aside is 324 tons.
    (iii) The Indian country new unit set-aside is 11 tons.
    (7) Kansas. (i) The NOX Ozone Season Group 2 trading
budget is 8,027 tons.
    (ii) The new unit set-aside is 148 tons.
    (iii) The Indian country new unit set-aside is 8 tons.
    (8) Kentucky. (i) The NOX Ozone Season Group 2 trading
budget is 21,115 tons.
    (ii) The new unit set-aside is 426 tons.
    (iii) [Reserved]
    (9) Louisiana. (i) The NOX Ozone Season Group 2 trading
budget is 18,639 tons.
    (ii) The new unit set-aside is 352 tons.
    (iii) The Indian country new unit set-aside is 19 tons.
    (10) Maryland. (i) The NOX Ozone Season Group 2 trading
budget is 3,828 tons.
    (ii) The new unit set-aside is 152 tons.
    (iii) [Reserved]
    (11) Michigan. (i) The NOX Ozone Season Group 2 trading
budget is 17,023 tons.
    (ii) The new unit set-aside is 665 tons.
    (iii) The Indian country new unit set-aside is 17 tons.
    (12) Mississippi. (i) The NOX Ozone Season Group 2
trading budget is 6,315 tons.
    (ii) The new unit set-aside is 120 tons.
    (iii) The Indian country new unit set-aside is 6 tons.
    (13) Missouri. (i) The NOX Ozone Season Group 2 trading
budget is 15,780 tons.
    (ii) The new unit set-aside is 324 tons.
    (iii) [Reserved]
    (14) New Jersey. (i) The NOX Ozone Season Group 2
trading budget is 2,062 tons.
    (ii) The new unit set-aside is 192 tons.
    (iii) [Reserved]
    (15) New York. (i) The NOX Ozone Season Group 2 trading
budget is 5,135 tons.
    (ii) The new unit set-aside is 252 tons.
    (iii) The Indian country new unit set-aside is 5 tons.
    (16) Ohio. (i) The NOX Ozone Season Group 2 trading
budget is 19,522 tons.
    (ii) The new unit set-aside is 401 tons.
    (iii) [Reserved]
    (17) Oklahoma. (i) The NOX Ozone Season Group 2 trading
budget is 11,641 tons.
    (ii) The new unit set-aside is 221 tons.
    (iii) The Indian country new unit set-aside is 12 tons.
    (18) Pennsylvania. (i) The NOX Ozone Season Group 2
trading budget is 17,952 tons.
    (ii) The new unit set-aside is 541 tons.
    (iii) [Reserved]
    (19) Tennessee. (i) The NOX Ozone Season Group 2 trading
budget is 7,736 tons.
    (ii) The new unit set-aside is 156 tons.
    (iii) [Reserved]
    (20) Texas. (i) The NOX Ozone Season Group 2 trading
budget is 52,301 tons.
    (ii) The new unit set-aside is 998 tons.
    (iii) The Indian country new unit set-aside is 52 tons.
    (21) Virginia. (i) The NOX Ozone Season Group 2 trading
budget is 9,223 tons.
    (ii) The new unit set-aside is 562 tons.
    (iii) [Reserved]
    (22) West Virginia. (i) The NOX Ozone Season Group 2
trading budget is 17,815 tons.
    (ii) The new unit set-aside is 356 tons.
    (iii) [Reserved]
    (23) Wisconsin. (i) The NOX Ozone Season Group 2 trading
budget is 7,915 tons.
    (ii) The new unit set-aside is 151 tons.
    (iii) The Indian country new unit set-aside is 8 tons.
    (b) The States' variability limits for the State NOX
Ozone Season Group 2 trading budgets for the control periods in 2017
and thereafter are as follows:
    (1) The variability limit for Alabama is 2,774 tons.
    (2) The variability limit for Arkansas for 2017 is 2,530 tons and
for 2018 and thereafter is 1,934 tons.
    (3) The variability limit for Georgia is 1,781 tons.
    (4) The variability limit for Illinois is 3,066 tons.
    (5) The variability limit for Indiana is 4,894 tons.
    (6) The variability limit for Iowa is 2,367 tons.
    (7) The variability limit for Kansas is 1,686 tons.
    (8) The variability limit for Kentucky is 4,434 tons.
    (9) The variability limit for Louisiana is 3,914 tons.
    (10) The variability limit for Maryland is 804 tons.
    (11) The variability limit for Michigan is 3,575 tons.
    (12) The variability limit for Mississippi is 1,326 tons.
    (13) The variability limit for Missouri is 3,314 tons.
    (14) The variability limit for New Jersey is 433 tons.
    (15) The variability limit for New York is 1,078 tons.
    (16) The variability limit for Ohio is 4,100 tons.
    (17) The variability limit for Oklahoma is 2,445 tons.
    (18) The variability limit for Pennsylvania is 3,770 tons.
    (19) The variability limit for Tennessee is 1,625 tons.
    (20) The variability limit for Texas is 10,983 tons.
    (21) The variability limit for Virginia is 1,937 tons.
    (22) The variability limit for West Virginia is 3,741 tons.
    (23) The variability limit for Wisconsin is 1,662 tons.
    (c) Each State NOX Ozone Season Group 2 trading budget
in this section includes any tons in a new unit set-aside or Indian
country new unit set-aside but does not include any tons in a
variability limit.

Sec.  97.811  Timing requirements for CSAPR NOX Ozone Season Group 2
allowance allocations.

    (a) Existing units. (1) CSAPR NOX Ozone Season Group 2
allowances are

allocated, for the control periods in 2017 and each year thereafter, as
provided in a notice of data availability issued by the Administrator.
Providing an allocation to a unit in such notice does not constitute a
determination that the unit is a CSAPR NOX Ozone Season
Group 2 unit, and not providing an allocation to a unit in such notice
does not constitute a determination that the unit is not a CSAPR
NOX Ozone Season Group 2 unit.
    (2) Notwithstanding paragraph (a)(1) of this section, if a unit
provided an allocation in the notice of data availability issued under
paragraph (a)(1) of this section does not operate, starting after 2016,
during the control period in two consecutive years, such unit will not
be allocated the CSAPR NOX Ozone Season Group 2 allowances
provided in such notice for the unit for the control periods in the
fifth year after the first such year and in each year after that fifth
year. All CSAPR NOX Ozone Season Group 2 allowances that
would otherwise have been allocated to such unit will be allocated to
the new unit set-aside for the State where such unit is located and for
the respective years involved. If such unit resumes operation, the
Administrator will allocate CSAPR NOX Ozone Season Group 2
allowances to the unit in accordance with paragraph (b) of this
section.
    (b) New units--(1) New unit set-asides. (i) By June 1, 2017 and
June 1 of each year thereafter, the Administrator will calculate the
CSAPR NOX Ozone Season Group 2 allowance allocation to each
CSAPR NOX Ozone Season Group 2 unit in a State, in
accordance with Sec.  97.812(a)(2) through (7) and (12), for the
control period in the year of the applicable calculation deadline under
this paragraph and will promulgate a notice of data availability of the
results of the calculations.
    (ii) For each notice of data availability required in paragraph
(b)(1)(i) of this section, the Administrator will provide an
opportunity for submission of objections to the calculations referenced
in such notice.
    (A) Objections shall be submitted by the deadline specified in each
notice of data availability required in paragraph (b)(1)(i) of this
section and shall be limited to addressing whether the calculations
(including the identification of the CSAPR NOX Ozone Season
Group 2 units) are in accordance with Sec.  97.812(a)(2) through (7)
and (12) and Sec. Sec.  97.806(b)(2) and 97.830 through 97.835.
    (B) The Administrator will adjust the calculations to the extent
necessary to ensure that they are in accordance with the provisions
referenced in paragraph (b)(1)(ii)(A) of this section. By August 1
immediately after the promulgation of each notice of data availability
required in paragraph (b)(1)(i) of this section, the Administrator will
promulgate a notice of data availability of any adjustments that the
Administrator determines to be necessary with regard to allocations
under Sec.  97.812(a)(2) through (7) and (12) and the reasons for
accepting or rejecting any objections submitted in accordance with
paragraph (b)(1)(ii)(A) of this section.
    (iii) If the new unit set-aside for such control period contains
any CSAPR NOX Ozone Season Group 2 allowances that have not
been allocated in the applicable notice of data availability required
in paragraph (b)(1)(ii) of this section, the Administrator will
promulgate, by December 15 immediately after such notice, a notice of
data availability that identifies any CSAPR NOX Ozone Season
Group 2 units that commenced commercial operation during the period
starting January 1 of the year before the year of such control period
and ending November 30 of the year of such control period.
    (iv) For each notice of data availability required in paragraph
(b)(1)(iii) of this section, the Administrator will provide an
opportunity for submission of objections to the identification of CSAPR
NOX Ozone Season Group 2 units in such notice.
    (A) Objections shall be submitted by the deadline specified in each
notice of data availability required in paragraph (b)(1)(iii) of this
section and shall be limited to addressing whether the identification
of CSAPR NOX Ozone Season Group 2 units in such notice is in
accordance with paragraph (b)(1)(iii) of this section.
    (B) The Administrator will adjust the identification of CSAPR
NOX Ozone Season Group 2 units in each notice of data
availability required in paragraph (b)(1)(iii) of this section to the
extent necessary to ensure that it is in accordance with paragraph
(b)(1)(iii) of this section and will calculate the CSAPR NOX
Ozone Season Group 2 allowance allocation to each CSAPR NOX
Ozone Season Group 2 unit in accordance with Sec.  97.812(a)(9), (10),
and (12) and Sec. Sec.  97.806(b)(2) and 97.830 through 97.835. By
February 15 immediately after the promulgation of each notice of data
availability required in paragraph (b)(1)(iii) of this section, the
Administrator will promulgate a notice of data availability of any
adjustments of the identification of CSAPR NOX Ozone Season
Group 2 units that the Administrator determines to be necessary, the
reasons for accepting or rejecting any objections submitted in
accordance with paragraph (b)(1)(iv)(A) of this section, and the
results of such calculations.
    (v) To the extent any CSAPR NOX Ozone Season Group 2
allowances are added to the new unit set-aside after promulgation of
each notice of data availability required in paragraph (b)(1)(iv) of
this section, the Administrator will promulgate additional notices of
data availability, as deemed appropriate, of the allocation of such
CSAPR NOX Ozone Season Group 2 allowances in accordance with
Sec.  97.812(a)(10).
    (2) Indian country new unit set-asides. (i) By June 1, 2017 and
June 1 of each year thereafter, the Administrator will calculate the
CSAPR NOX Ozone Season Group 2 allowance allocation to each
CSAPR NOX Ozone Season Group 2 unit in Indian country within
the borders of a State, in accordance with Sec.  97.812(b)(2) through
(7) and (12), for the control period in the year of the applicable
calculation deadline under this paragraph and will promulgate a notice
of data availability of the results of the calculations.
    (ii) For each notice of data availability required in paragraph
(b)(2)(i) of this section, the Administrator will provide an
opportunity for submission of objections to the calculations referenced
in such notice.
    (A) Objections shall be submitted by the deadline specified in each
notice of data availability required in paragraph (b)(2)(i) of this
section and shall be limited to addressing whether the calculations
(including the identification of the CSAPR NOX Ozone Season
Group 2 units) are in accordance with Sec.  97.812(b)(2) through (7)
and (12) and Sec. Sec.  97.806(b)(2) and 97.830 through 97.835.
    (B) The Administrator will adjust the calculations to the extent
necessary to ensure that they are in accordance with the provisions
referenced in paragraph (b)(2)(ii)(A) of this section. By August 1
immediately after the promulgation of each notice of data availability
required in paragraph (b)(2)(i) of this section, the Administrator will
promulgate a notice of data availability of any adjustments that the
Administrator determines to be necessary with regard to allocations
under Sec.  97.812(b)(2) through (7) and (12) and the reasons for
accepting or rejecting any objections submitted in accordance with
paragraph (b)(2)(ii)(A) of this section.
    (iii) If the Indian country new unit set-aside for such control
period contains any CSAPR NOX Ozone Season

Group 2 allowances that have not been allocated in the applicable
notice of data availability required in paragraph (b)(2)(ii) of this
section, the Administrator will promulgate, by December 15 immediately
after such notice, a notice of data availability that identifies any
CSAPR NOX Ozone Season Group 2 units that commenced
commercial operation during the period starting January 1 of the year
before the year of such control period and ending November 30 of the
year of such control period.
    (iv) For each notice of data availability required in paragraph
(b)(2)(iii) of this section, the Administrator will provide an
opportunity for submission of objections to the identification of CSAPR
NOX Ozone Season Group 2 units in such notice.
    (A) Objections shall be submitted by the deadline specified in each
notice of data availability required in paragraph (b)(2)(iii) of this
section and shall be limited to addressing whether the identification
of CSAPR NOX Ozone Season Group 2 units in such notice is in
accordance with paragraph (b)(2)(iii) of this section.
    (B) The Administrator will adjust the identification of CSAPR
NOX Ozone Season Group 2 units in each notice of data
availability required in paragraph (b)(2)(iii) of this section to the
extent necessary to ensure that it is in accordance with paragraph
(b)(2)(iii) of this section and will calculate the CSAPR NOX
Ozone Season Group 2 allowance allocation to each CSAPR NOX
Ozone Season Group 2 unit in accordance with Sec.  97.812(b)(9), (10),
and (12) and Sec. Sec.  97.806(b)(2) and 97.830 through 97.835. By
February 15 immediately after the promulgation of each notice of data
availability required in paragraph (b)(2)(iii) of this section, the
Administrator will promulgate a notice of data availability of any
adjustments of the identification of CSAPR NOX Ozone Season
Group 2 units that the Administrator determines to be necessary, the
reasons for accepting or rejecting any objections submitted in
accordance with paragraph (b)(2)(iv)(A) of this section, and the
results of such calculations.
    (v) To the extent any CSAPR NOX Ozone Season Group 2
allowances are added to the Indian country new unit set-aside after
promulgation of each notice of data availability required in paragraph
(b)(2)(iv) of this section, the Administrator will promulgate
additional notices of data availability, as deemed appropriate, of the
allocation of such CSAPR NOX Ozone Season Group 2 allowances
in accordance with Sec.  97.812(b)(10).
    (c) Units incorrectly allocated CSAPR NOX Ozone Season
Group 2 allowances. (1) For each control period in 2017 and thereafter,
if the Administrator determines that CSAPR NOX Ozone Season
Group 2 allowances were allocated under paragraph (a) of this section,
or under a provision of a SIP revision approved under Sec.
52.38(b)(6), (7), (8), or (9) of this chapter, where such control
period and the recipient are covered by the provisions of paragraph
(c)(1)(i) of this section or were allocated under Sec.  97.812(a)(2)
through (7), (9), and (12) and (b)(2) through (7), (9), and (12), or
under a provision of a SIP revision approved under Sec.  52.38(b)(6),
(8), or (9) of this chapter, where such control period and the
recipient are covered by the provisions of paragraph (c)(1)(ii) of this
section, then the Administrator will notify the designated
representative of the recipient and will act in accordance with the
procedures set forth in paragraphs (c)(2) through (5) of this section:
    (i)(A) The recipient is not actually a CSAPR NOX Ozone
Season Group 2 unit under Sec.  97.804 as of May 1, 2017 and is
allocated CSAPR NOX Ozone Season Group 2 allowances for such
control period or, in the case of an allocation under a provision of a
SIP revision approved under Sec.  52.38(b)(6), (7), (8), or (9) of this
chapter, the recipient is not actually a CSAPR NOX Ozone
Season Group 2 unit as of May 1, 2017 and is allocated CSAPR
NOX Ozone Season Group 2 allowances for such control period
that the SIP revision provides should be allocated only to recipients
that are CSAPR NOX Ozone Season Group 2 units as of May 1,
2017; or
    (B) The recipient is not located as of May 1 of the control period
in the State from whose NOX Ozone Season Group 2 trading
budget the CSAPR NOX Ozone Season Group 2 allowances
allocated under paragraph (a) of this section, or under a provision of
a SIP revision approved under Sec.  52.38(b)(6), (7), (8), or (9) of
this chapter, were allocated for such control period.
    (ii) The recipient is not actually a CSAPR NOX Ozone
Season Group 2 unit under Sec.  97.804 as of May 1 of such control
period and is allocated CSAPR NOX Ozone Season Group 2
allowances for such control period or, in the case of an allocation
under a provision of a SIP revision approved under Sec.  52.38(b)(6),
(8), or (9) of this chapter, the recipient is not actually a CSAPR
NOX Ozone Season Group 2 unit as of May 1 of such control
period and is allocated CSAPR NOX Ozone Season Group 2
allowances for such control period that the SIP revision provides
should be allocated only to recipients that are CSAPR NOX
Ozone Season Group 2 units as of May 1 of such control period.
    (2) Except as provided in paragraph (c)(3) or (4) of this section,
the Administrator will not record such CSAPR NOX Ozone
Season Group 2 allowances under Sec.  97.821.
    (3) If the Administrator already recorded such CSAPR NOX
Ozone Season Group 2 allowances under Sec.  97.821 and if the
Administrator makes the determination under paragraph (c)(1) of this
section before making deductions for the source that includes such
recipient under Sec.  97.824(b) for such control period, then the
Administrator will deduct from the account in which such CSAPR
NOX Ozone Season Group 2 allowances were recorded an amount
of CSAPR NOX Ozone Season Group 2 allowances allocated for
the same or a prior control period equal to the amount of such already
recorded CSAPR NOX Ozone Season Group 2 allowances. The
authorized account representative shall ensure that there are
sufficient CSAPR NOX Ozone Season Group 2 allowances in such
account for completion of the deduction.
    (4) If the Administrator already recorded such CSAPR NOX
Ozone Season Group 2 allowances under Sec.  97.821 and if the
Administrator makes the determination under paragraph (c)(1) of this
section after making deductions for the source that includes such
recipient under Sec.  97.824(b) for such control period, then the
Administrator will not make any deduction to take account of such
already recorded CSAPR NOX Ozone Season Group 2 allowances.
    (5)(i) With regard to the CSAPR NOX Ozone Season Group 2
allowances that are not recorded, or that are deducted as an incorrect
allocation, in accordance with paragraphs (c)(2) and (3) of this
section for a recipient under paragraph (c)(1)(i) of this section, the
Administrator will:
    (A) Transfer such CSAPR NOX Ozone Season Group 2
allowances to the new unit set-aside for such control period for the
State from whose NOX Ozone Season Group 2 trading budget the
CSAPR NOX Ozone Season Group 2 allowances were allocated; or
    (B) If the State has a SIP revision approved under Sec.
52.38(b)(6), (8), or (9) of this chapter covering such control period,
include such CSAPR NOX Ozone Season Group 2 allowances in
the portion of the State NOX Ozone Season Group 2 trading
budget that may

be allocated for such control period in accordance with such SIP
revision.
    (ii) With regard to the CSAPR NOX Ozone Season Group 2
allowances that were not allocated from the Indian country new unit
set-aside for such control period and that are not recorded, or that
are deducted as an incorrect allocation, in accordance with paragraphs
(c)(2) and (3) of this section for a recipient under paragraph
(c)(1)(ii) of this section, the Administrator will:
    (A) Transfer such CSAPR NOX Ozone Season Group 2
allowances to the new unit set-aside for such control period; or
    (B) If the State has a SIP revision approved under Sec.
52.38(b)(6), (8), or (9) of this chapter covering such control period,
include such CSAPR NOX Ozone Season Group 2 allowances in
the portion of the State NOX Ozone Season Group 2 trading
budget that may be allocated for such control period in accordance with
such SIP revision.
    (iii) With regard to the CSAPR NOX Ozone Season Group 2
allowances that were allocated from the Indian country new unit set-
aside for such control period and that are not recorded, or that are
deducted as an incorrect allocation, in accordance with paragraphs
(c)(2) and (3) of this section for a recipient under paragraph
(c)(1)(ii) of this section, the Administrator will transfer such CSAPR
NOX Ozone Season Group 2 allowances to the Indian country
new unit set-aside for such control period.

Sec.  97.812  CSAPR NOX Ozone Season Group 2 allowance allocations to
new units.

    (a) For each control period in 2017 and thereafter and for the
CSAPR NOX Ozone Season Group 2 units in each State, the
Administrator will allocate CSAPR NOX Ozone Season Group 2
allowances to the CSAPR NOX Ozone Season Group 2 units as
follows:
    (1) The CSAPR NOX Ozone Season Group 2 allowances will
be allocated to the following CSAPR NOX Ozone Season Group 2
units, except as provided in paragraph (a)(10) of this section:
    (i) CSAPR NOX Ozone Season Group 2 units that are not
allocated an amount of CSAPR NOX Ozone Season Group 2
allowances in the notice of data availability issued under Sec.
97.811(a)(1);
    (ii) CSAPR NOX Ozone Season Group 2 units whose
allocation of an amount of CSAPR NOX Ozone Season Group 2
allowances for such control period in the notice of data availability
issued under Sec.  97.811(a)(1) is covered by Sec.  97.811(c)(2) or
(3);
    (iii) CSAPR NOX Ozone Season Group 2 units that are
allocated an amount of CSAPR NOX Ozone Season Group 2
allowances for such control period in the notice of data availability
issued under Sec.  97.811(a)(1), which allocation is terminated for
such control period pursuant to Sec.  97.811(a)(2), and that operate
during the control period immediately preceding such control period; or
    (iv) For purposes of paragraph (a)(9) of this section, CSAPR
NOX Ozone Season Group 2 units under Sec.  97.811(c)(1)(ii)
whose allocation of an amount of CSAPR NOX Ozone Season
Group 2 allowances for such control period in the notice of data
availability issued under Sec.  97.811(b)(1)(ii)(B) is covered by Sec.
97.811(c)(2) or (3).
    (2) The Administrator will establish a separate new unit set-aside
for the State for each such control period. Each such new unit set-
aside will be allocated CSAPR NOX Ozone Season Group 2
allowances in an amount equal to the applicable amount of tons of
NOX emissions as set forth in Sec.  97.810(a) and will be
allocated additional CSAPR NOX Ozone Season Group 2
allowances (if any) in accordance with Sec.  97.811(a)(2) and (c)(5)
and paragraph (b)(10) of this section.
    (3) The Administrator will determine, for each CSAPR NOX
Ozone Season Group 2 unit described in paragraph (a)(1) of this
section, an allocation of CSAPR NOX Ozone Season Group 2
allowances for the later of the following control periods and for each
subsequent control period:
    (i) The control period in 2017;
    (ii) The first control period after the control period in which the
CSAPR NOX Ozone Season Group 2 unit commences commercial
operation;
    (iii) For a unit described in paragraph (a)(1)(ii) of this section,
the first control period in which the CSAPR NOX Ozone Season
Group 2 unit operates in the State after operating in another
jurisdiction and for which the unit is not already allocated one or
more CSAPR NOX Ozone Season Group 2 allowances; and
    (iv) For a unit described in paragraph (a)(1)(iii) of this section,
the first control period after the control period in which the unit
resumes operation.
    (4)(i) The allocation to each CSAPR NOX Ozone Season
Group 2 unit described in paragraphs (a)(1)(i) through (iii) of this
section and for each control period described in paragraph (a)(3) of
this section will be an amount equal to the unit's total tons of
NOX emissions during the immediately preceding control
period.
    (ii) The Administrator will adjust the allocation amount in
paragraph (a)(4)(i) of this section in accordance with paragraphs
(a)(5) through (7) and (12) of this section.
    (5) The Administrator will calculate the sum of the CSAPR
NOX Ozone Season Group 2 allowances determined for all such
CSAPR NOX Ozone Season Group 2 units under paragraph
(a)(4)(i) of this section in the State for such control period.
    (6) If the amount of CSAPR NOX Ozone Season Group 2
allowances in the new unit set-aside for the State for such control
period is greater than or equal to the sum under paragraph (a)(5) of
this section, then the Administrator will allocate the amount of CSAPR
NOX Ozone Season Group 2 allowances determined for each such
CSAPR NOX Ozone Season Group 2 unit under paragraph
(a)(4)(i) of this section.
    (7) If the amount of CSAPR NOX Ozone Season Group 2
allowances in the new unit set-aside for the State for such control
period is less than the sum under paragraph (a)(5) of this section,
then the Administrator will allocate to each such CSAPR NOX
Ozone Season Group 2 unit the amount of the CSAPR NOX Ozone
Season Group 2 allowances determined under paragraph (a)(4)(i) of this
section for the unit, multiplied by the amount of CSAPR NOX
Ozone Season Group 2 allowances in the new unit set-aside for such
control period, divided by the sum under paragraph (a)(5) of this
section, and rounded to the nearest allowance.
    (8) The Administrator will notify the public, through the
promulgation of the notices of data availability described in Sec.
97.811(b)(1)(i) and (ii), of the amount of CSAPR NOX Ozone
Season Group 2 allowances allocated under paragraphs (a)(2) through (7)
and (12) of this section for such control period to each CSAPR
NOX Ozone Season Group 2 unit eligible for such allocation.
    (9) If, after completion of the procedures under paragraphs (a)(5)
through (8) of this section for such control period, any unallocated
CSAPR NOX Ozone Season Group 2 allowances remain in the new
unit set-aside for the State for such control period, the Administrator
will allocate such CSAPR NOX Ozone Season Group 2 allowances
as follows--
    (i) The Administrator will determine, for each unit described in
paragraph (a)(1) of this section that commenced commercial operation
during the period starting January 1 of the year before the year of
such control period and ending November 30 of the year of such control
period, the positive difference (if any) between the unit's emissions
during such control period and the amount of CSAPR NOX Ozone
Season Group 2 allowances referenced in the notice of data availability
required under

Sec.  97.811(b)(1)(ii) for the unit for such control period;
    (ii) The Administrator will determine the sum of the positive
differences determined under paragraph (a)(9)(i) of this section;
    (iii) If the amount of unallocated CSAPR NOX Ozone
Season Group 2 allowances remaining in the new unit set-aside for the
State for such control period is greater than or equal to the sum
determined under paragraph (a)(9)(ii) of this section, then the
Administrator will allocate the amount of CSAPR NOX Ozone
Season Group 2 allowances determined for each such CSAPR NOX
Ozone Season Group 2 unit under paragraph (a)(9)(i) of this section;
and
    (iv) If the amount of unallocated CSAPR NOX Ozone Season
Group 2 allowances remaining in the new unit set-aside for the State
for such control period is less than the sum under paragraph (a)(9)(ii)
of this section, then the Administrator will allocate to each such
CSAPR NOX Ozone Season Group 2 unit the amount of the CSAPR
NOX Ozone Season Group 2 allowances determined under
paragraph (a)(9)(i) of this section for the unit, multiplied by the
amount of unallocated CSAPR NOX Ozone Season Group 2
allowances remaining in the new unit set-aside for such control period,
divided by the sum under paragraph (a)(9)(ii) of this section, and
rounded to the nearest allowance.
    (10) If, after completion of the procedures under paragraphs (a)(9)
and (12) of this section for such control period, any unallocated CSAPR
NOX Ozone Season Group 2 allowances remain in the new unit
set-aside for the State for such control period, the Administrator will
allocate to each CSAPR NOX Ozone Season Group 2 unit that is
in the State, is allocated an amount of CSAPR NOX Ozone
Season Group 2 allowances in the notice of data availability issued
under Sec.  97.811(a)(1), and continues to be allocated CSAPR
NOX Ozone Season Group 2 allowances for such control period
in accordance with Sec.  97.811(a)(2), an amount of CSAPR
NOX Ozone Season Group 2 allowances equal to the following:
The total amount of such remaining unallocated CSAPR NOX
Ozone Season Group 2 allowances in such new unit set-aside, multiplied
by the unit's allocation under Sec.  97.811(a) for such control period,
divided by the remainder of the amount of tons in the applicable State
NOX Ozone Season Group 2 trading budget minus the sum of the
amounts of tons in such new unit set-aside and the Indian country new
unit set-aside for the State for such control period, and rounded to
the nearest allowance.
    (11) The Administrator will notify the public, through the
promulgation of the notices of data availability described in Sec.
97.811(b)(1)(iii), (iv), and (v), of the amount of CSAPR NOX
Ozone Season Group 2 allowances allocated under paragraphs (a)(9),
(10), and (12) of this section for such control period to each CSAPR
NOX Ozone Season Group 2 unit eligible for such allocation.
    (12)(i) Notwithstanding the requirements of paragraphs (a)(2)
through (11) of this section, if the calculations of allocations of a
new unit set-aside for a control period in a given year under paragraph
(a)(7) of this section, paragraphs (a)(6) and (a)(9)(iv) of this
section, or paragraphs (a)(6), (a)(9)(iii), and (a)(10) of this section
would otherwise result in total allocations of such new unit set-aside
exceeding the total amount of such new unit set-aside, then the
Administrator will adjust the results of the calculations under
paragraph (a)(7), (a)(9)(iv), or (a)(10) of this section, as
applicable, as follows. The Administrator will list the CSAPR
NOX Ozone Season Group 2 units in descending order based on
the amount of such units' allocations under paragraph (a)(7),
(a)(9)(iv), or (a)(10) of this section, as applicable, and, in cases of
equal allocation amounts, in alphabetical order of the relevant
source's name and numerical order of the relevant unit's identification
number, and will reduce each unit's allocation under paragraph (a)(7),
(a)(9)(iv), or (a)(10) of this section, as applicable, by one CSAPR
NOX Ozone Season Group 2 allowance (but not below zero) in
the order in which the units are listed and will repeat this reduction
process as necessary, until the total allocations of such new unit set-
aside equal the total amount of such new unit set-aside.
    (ii) Notwithstanding the requirements of paragraphs (a)(10) and
(11) of this section, if the calculations of allocations of a new unit
set-aside for a control period in a given year under paragraphs (a)(6),
(a)(9)(iii), and (a)(10) of this section would otherwise result in a
total allocations of such new unit set-aside less than the total amount
of such new unit set-aside, then the Administrator will adjust the
results of the calculations under paragraph (a)(10) of this section, as
follows. The Administrator will list the CSAPR NOX Ozone
Season Group 2 units in descending order based on the amount of such
units' allocations under paragraph (a)(10) of this section and, in
cases of equal allocation amounts, in alphabetical order of the
relevant source's name and numerical order of the relevant unit's
identification number, and will increase each unit's allocation under
paragraph (a)(10) of this section by one CSAPR NOX Ozone
Season Group 2 allowance in the order in which the units are listed and
will repeat this increase process as necessary, until the total
allocations of such new unit set-aside equal the total amount of such
new unit set-aside.
    (b) For each control period in 2017 and thereafter and for the
CSAPR NOX Ozone Season Group 2 units located in Indian
country within the borders of each State, the Administrator will
allocate CSAPR NOX Ozone Season Group 2 allowances to the
CSAPR NOX Ozone Season Group 2 units as follows:
    (1) The CSAPR NOX Ozone Season Group 2 allowances will
be allocated to the following CSAPR NOX Ozone Season Group 2
units, except as provided in paragraph (b)(10) of this section:
    (i) CSAPR NOX Ozone Season Group 2 units that are not
allocated an amount of CSAPR NOX Ozone Season Group 2
allowances in the notice of data availability issued under Sec.
97.811(a)(1); or
    (ii) For purposes of paragraph (b)(9) of this section, CSAPR
NOX Ozone Season Group 2 units under Sec.  97.811(c)(1)(ii)
whose allocation of an amount of CSAPR NOX Ozone Season
Group 2 allowances for such control period in the notice of data
availability issued under Sec.  97.811(b)(2)(ii)(B) is covered by Sec.
97.811(c)(2) or (3).
    (2) The Administrator will establish a separate Indian country new
unit set-aside for the State for each such control period. Each such
Indian country new unit set-aside will be allocated CSAPR
NOX Ozone Season Group 2 allowances in an amount equal to
the applicable amount of tons of NOX emissions as set forth
in Sec.  97.810(a) and will be allocated additional CSAPR
NOX Ozone Season Group 2 allowances (if any) in accordance
with Sec.  97.811(c)(5).
    (3) The Administrator will determine, for each CSAPR NOX
Ozone Season Group 2 unit described in paragraph (b)(1) of this
section, an allocation of CSAPR NOX Ozone Season Group 2
allowances for the later of the following control periods and for each
subsequent control period:
    (i) The control period in 2017; and
    (ii) The first control period after the control period in which the
CSAPR NOX Ozone Season Group 2 unit commences commercial
operation.
    (4)(i) The allocation to each CSAPR NOX Ozone Season
Group 2 unit described in paragraph (b)(1)(i) of this section and for
each control period described in paragraph (b)(3) of this

section will be an amount equal to the unit's total tons of
NOX emissions during the immediately preceding control
period.
    (ii) The Administrator will adjust the allocation amount in
paragraph (b)(4)(i) of this section in accordance with paragraphs
(b)(5) through (7) and (12) of this section.
    (5) The Administrator will calculate the sum of the CSAPR
NOX Ozone Season Group 2 allowances determined for all such
CSAPR NOX Ozone Season Group 2 units under paragraph
(b)(4)(i) of this section in Indian country within the borders of the
State for such control period.
    (6) If the amount of CSAPR NOX Ozone Season Group 2
allowances in the Indian country new unit set-aside for the State for
such control period is greater than or equal to the sum under paragraph
(b)(5) of this section, then the Administrator will allocate the amount
of CSAPR NOX Ozone Season Group 2 allowances determined for
each such CSAPR NOX Ozone Season Group 2 unit under
paragraph (b)(4)(i) of this section.
    (7) If the amount of CSAPR NOX Ozone Season Group 2
allowances in the Indian country new unit set-aside for the State for
such control period is less than the sum under paragraph (b)(5) of this
section, then the Administrator will allocate to each such CSAPR
NOX Ozone Season Group 2 unit the amount of the CSAPR
NOX Ozone Season Group 2 allowances determined under
paragraph (b)(4)(i) of this section for the unit, multiplied by the
amount of CSAPR NOX Ozone Season Group 2 allowances in the
Indian country new unit set-aside for such control period, divided by
the sum under paragraph (b)(5) of this section, and rounded to the
nearest allowance.
    (8) The Administrator will notify the public, through the
promulgation of the notices of data availability described in Sec.
97.811(b)(2)(i) and (ii), of the amount of CSAPR NOX Ozone
Season Group 2 allowances allocated under paragraphs (b)(2) through (7)
and (12) of this section for such control period to each CSAPR
NOX Ozone Season Group 2 unit eligible for such allocation.
    (9) If, after completion of the procedures under paragraphs (b)(5)
through (8) of this section for such control period, any unallocated
CSAPR NOX Ozone Season Group 2 allowances remain in the
Indian country new unit set-aside for the State for such control
period, the Administrator will allocate such CSAPR NOX Ozone
Season Group 2 allowances as follows--
    (i) The Administrator will determine, for each unit described in
paragraph (b)(1) of this section that commenced commercial operation
during the period starting January 1 of the year before the year of
such control period and ending November 30 of the year of such control
period, the positive difference (if any) between the unit's emissions
during such control period and the amount of CSAPR NOX Ozone
Season Group 2 allowances referenced in the notice of data availability
required under Sec.  97.811(b)(2)(ii) for the unit for such control
period;
    (ii) The Administrator will determine the sum of the positive
differences determined under paragraph (b)(9)(i) of this section;
    (iii) If the amount of unallocated CSAPR NOX Ozone
Season Group 2 allowances remaining in the Indian country new unit set-
aside for the State for such control period is greater than or equal to
the sum determined under paragraph (b)(9)(ii) of this section, then the
Administrator will allocate the amount of CSAPR NOX Ozone
Season Group 2 allowances determined for each such CSAPR NOX
Ozone Season Group 2 unit under paragraph (b)(9)(i) of this section;
and
    (iv) If the amount of unallocated CSAPR NOX Ozone Season
Group 2 allowances remaining in the Indian country new unit set-aside
for the State for such control period is less than the sum under
paragraph (b)(9)(ii) of this section, then the Administrator will
allocate to each such CSAPR NOX Ozone Season Group 2 unit
the amount of the CSAPR NOX Ozone Season Group 2 allowances
determined under paragraph (b)(9)(i) of this section for the unit,
multiplied by the amount of unallocated CSAPR NOX Ozone
Season Group 2 allowances remaining in the Indian country new unit set-
aside for such control period, divided by the sum under paragraph
(b)(9)(ii) of this section, and rounded to the nearest allowance.
    (10) If, after completion of the procedures under paragraphs (b)(9)
and (12) of this section for such control period, any unallocated CSAPR
NOX Ozone Season Group 2 allowances remain in the Indian
country new unit set-aside for the State for such control period, the
Administrator will:
    (i) Transfer such unallocated CSAPR NOX Ozone Season
Group 2 allowances to the new unit set-aside for the State for such
control period; or
    (ii) If the State has a SIP revision approved under Sec.
52.38(b)(6), (8), or (9) of this chapter covering such control period,
include such unallocated CSAPR NOX Ozone Season Group 2
allowances in the portion of the State NOX Ozone Season
Group 2 trading budget that may be allocated for such control period in
accordance with such SIP revision.
    (11) The Administrator will notify the public, through the
promulgation of the notices of data availability described in Sec.
97.811(b)(2)(iii), (iv), and (v), of the amount of CSAPR NOX
Ozone Season Group 2 allowances allocated under paragraphs (b)(9),
(10), and (12) of this section for such control period to each CSAPR
NOX Ozone Season Group 2 unit eligible for such allocation.
    (12)(i) Notwithstanding the requirements of paragraphs (b)(2)
through (11) of this section, if the calculations of allocations of an
Indian country new unit set-aside for a control period in a given year
under paragraph (b)(7) of this section, paragraphs (b)(6) and
(b)(9)(iv) of this section, or paragraphs (b)(6), (b)(9)(iii), and
(b)(10) of this section would otherwise result in total allocations of
such Indian country new unit set-aside exceeding the total amount of
such Indian country new unit set-aside, then the Administrator will
adjust the results of the calculations under paragraph (b)(7),
(b)(9)(iv), or (b)(10) of this section, as applicable, as follows. The
Administrator will list the CSAPR NOX Ozone Season Group 2
units in descending order based on the amount of such units'
allocations under paragraph (b)(7), (b)(9)(iv), or (b)(10) of this
section, as applicable, and, in cases of equal allocation amounts, in
alphabetical order of the relevant source's name and numerical order of
the relevant unit's identification number, and will reduce each unit's
allocation under paragraph (b)(7), (b)(9)(iv), or (b)(10) of this
section, as applicable, by one CSAPR NOX Ozone Season Group
2 allowance (but not below zero) in the order in which the units are
listed and will repeat this reduction process as necessary, until the
total allocations of such Indian country new unit set-aside equal the
total amount of such Indian country new unit set-aside.
    (ii) Notwithstanding the requirements of paragraphs (b)(10) and
(11) of this section, if the calculations of allocations of an Indian
country new unit set-aside for a control period in a given year under
paragraphs (b)(6), (b)(9)(iii), and (b)(10) of this section would
otherwise result in a total allocations of such Indian country new unit
set-aside less than the total amount of such Indian country new unit
set-aside, then the Administrator will adjust the results of the
calculations under paragraph (b)(10) of this section, as follows. The
Administrator will list the CSAPR NOX Ozone Season Group 2
units in descending order based on the amount of such units'
allocations under

paragraph (b)(10) of this section and, in cases of equal allocation
amounts, in alphabetical order of the relevant source's name and
numerical order of the relevant unit's identification number, and will
increase each unit's allocation under paragraph (b)(10) of this section
by one CSAPR NOX Ozone Season Group 2 allowance in the order
in which the units are listed and will repeat this increase process as
necessary, until the total allocations of such Indian country new unit
set-aside equal the total amount of such Indian country new unit set-
aside.

Sec.  97.813  Authorization of designated representative and alternate
designated representative.

    (a) Except as provided under Sec.  97.815, each CSAPR
NOX Ozone Season Group 2 source, including all CSAPR
NOX Ozone Season Group 2 units at the source, shall have one
and only one designated representative, with regard to all matters
under the CSAPR NOX Ozone Season Group 2 Trading Program.
    (1) The designated representative shall be selected by an agreement
binding on the owners and operators of the source and all CSAPR
NOX Ozone Season Group 2 units at the source and shall act
in accordance with the certification statement in Sec.
97.816(a)(4)(iii).
    (2) Upon and after receipt by the Administrator of a complete
certificate of representation under Sec.  97.816:
    (i) The designated representative shall be authorized and shall
represent and, by his or her representations, actions, inactions, or
submissions, legally bind each owner and operator of the source and
each CSAPR NOX Ozone Season Group 2 unit at the source in
all matters pertaining to the CSAPR NOX Ozone Season Group 2
Trading Program, notwithstanding any agreement between the designated
representative and such owners and operators; and
    (ii) The owners and operators of the source and each CSAPR
NOX Ozone Season Group 2 unit at the source shall be bound
by any decision or order issued to the designated representative by the
Administrator regarding the source or any such unit.
    (b) Except as provided under Sec.  97.815, each CSAPR
NOX Ozone Season Group 2 source may have one and only one
alternate designated representative, who may act on behalf of the
designated representative. The agreement by which the alternate
designated representative is selected shall include a procedure for
authorizing the alternate designated representative to act in lieu of
the designated representative.
    (1) The alternate designated representative shall be selected by an
agreement binding on the owners and operators of the source and all
CSAPR NOX Ozone Season Group 2 units at the source and shall
act in accordance with the certification statement in Sec.
97.816(a)(4)(iii).
    (2) Upon and after receipt by the Administrator of a complete
certificate of representation under Sec.  97.816,
    (i) The alternate designated representative shall be authorized;
    (ii) Any representation, action, inaction, or submission by the
alternate designated representative shall be deemed to be a
representation, action, inaction, or submission by the designated
representative; and
    (iii) The owners and operators of the source and each CSAPR
NOX Ozone Season Group 2 unit at the source shall be bound
by any decision or order issued to the alternate designated
representative by the Administrator regarding the source or any such
unit.
    (c) Except in this section, Sec.  97.802, and Sec. Sec.  97.814
through 97.818, whenever the term ``designated representative'' (as
distinguished from the term ``common designated representative'') is
used in this subpart, the term shall be construed to include the
designated representative or any alternate designated representative.

Sec.  97.814  Responsibilities of designated representative and
alternate designated representative.

    (a) Except as provided under Sec.  97.818 concerning delegation of
authority to make submissions, each submission under the CSAPR
NOX Ozone Season Group 2 Trading Program shall be made,
signed, and certified by the designated representative or alternate
designated representative for each CSAPR NOX Ozone Season
Group 2 source and CSAPR NOX Ozone Season Group 2 unit for
which the submission is made. Each such submission shall include the
following certification statement by the designated representative or
alternate designated representative: ``I am authorized to make this
submission on behalf of the owners and operators of the source or units
for which the submission is made. I certify under penalty of law that I
have personally examined, and am familiar with, the statements and
information submitted in this document and all its attachments. Based
on my inquiry of those individuals with primary responsibility for
obtaining the information, I certify that the statements and
information are to the best of my knowledge and belief true, accurate,
and complete. I am aware that there are significant penalties for
submitting false statements and information or omitting required
statements and information, including the possibility of fine or
imprisonment.''
    (b) The Administrator will accept or act on a submission made for a
CSAPR NOX Ozone Season Group 2 source or a CSAPR
NOX Ozone Season Group 2 unit only if the submission has
been made, signed, and certified in accordance with paragraph (a) of
this section and Sec.  97.818.

Sec.  97.815  Changing designated representative and alternate
designated representative; changes in owners and operators; changes in
units at the source.

    (a) Changing designated representative. The designated
representative may be changed at any time upon receipt by the
Administrator of a superseding complete certificate of representation
under Sec.  97.816. Notwithstanding any such change, all
representations, actions, inactions, and submissions by the previous
designated representative before the time and date when the
Administrator receives the superseding certificate of representation
shall be binding on the new designated representative and the owners
and operators of the CSAPR NOX Ozone Season Group 2 source
and the CSAPR NOX Ozone Season Group 2 units at the source.
    (b) Changing alternate designated representative. The alternate
designated representative may be changed at any time upon receipt by
the Administrator of a superseding complete certificate of
representation under Sec.  97.816. Notwithstanding any such change, all
representations, actions, inactions, and submissions by the previous
alternate designated representative before the time and date when the
Administrator receives the superseding certificate of representation
shall be binding on the new alternate designated representative, the
designated representative, and the owners and operators of the CSAPR
NOX Ozone Season Group 2 source and the CSAPR NOX
Ozone Season Group 2 units at the source.
    (c) Changes in owners and operators. (1) In the event an owner or
operator of a CSAPR NOX Ozone Season Group 2 source or a
CSAPR NOX Ozone Season Group 2 unit at the source is not
included in the list of owners and operators in the certificate of
representation under Sec.  97.816, such owner or operator shall be
deemed to be subject to and bound by the certificate of representation,
the representations, actions, inactions, and submissions of the
designated representative and any alternate designated representative
of

the source or unit, and the decisions and orders of the Administrator,
as if the owner or operator were included in such list.
    (2) Within 30 days after any change in the owners and operators of
a CSAPR NOX Ozone Season Group 2 source or a CSAPR
NOX Ozone Season Group 2 unit at the source, including the
addition or removal of an owner or operator, the designated
representative or any alternate designated representative shall submit
a revision to the certificate of representation under Sec.  97.816
amending the list of owners and operators to reflect the change.
    (d) Changes in units at the source. Within 30 days of any change in
which units are located at a CSAPR NOX Ozone Season Group 2
source (including the addition or removal of a unit), the designated
representative or any alternate designated representative shall submit
a certificate of representation under Sec.  97.816 amending the list of
units to reflect the change.
    (1) If the change is the addition of a unit that operated (other
than for purposes of testing by the manufacturer before initial
installation) before being located at the source, then the certificate
of representation shall identify, in a format prescribed by the
Administrator, the entity from whom the unit was purchased or otherwise
obtained (including name, address, telephone number, and facsimile
number (if any)), the date on which the unit was purchased or otherwise
obtained, and the date on which the unit became located at the source.
    (2) If the change is the removal of a unit, then the certificate of
representation shall identify, in a format prescribed by the
Administrator, the entity to which the unit was sold or that otherwise
obtained the unit (including name, address, telephone number, and
facsimile number (if any)), the date on which the unit was sold or
otherwise obtained, and the date on which the unit became no longer
located at the source.

Sec.  97.816  Certificate of representation.

    (a) A complete certificate of representation for a designated
representative or an alternate designated representative shall include
the following elements in a format prescribed by the Administrator:
    (1) Identification of the CSAPR NOX Ozone Season Group 2
source, and each CSAPR NOX Ozone Season Group 2 unit at the
source, for which the certificate of representation is submitted,
including source name, source category and NAICS code (or, in the
absence of a NAICS code, an equivalent code), State, plant code,
county, latitude and longitude, unit identification number and type,
identification number and nameplate capacity (in MWe, rounded to the
nearest tenth) of each generator served by each such unit, actual or
projected date of commencement of commercial operation, and a statement
of whether such source is located in Indian country. If a projected
date of commencement of commercial operation is provided, the actual
date of commencement of commercial operation shall be provided when
such information becomes available.
    (2) The name, address, email address (if any), telephone number,
and facsimile transmission number (if any) of the designated
representative and any alternate designated representative.
    (3) A list of the owners and operators of the CSAPR NOX
Ozone Season Group 2 source and of each CSAPR NOX Ozone
Season Group 2 unit at the source.
    (4) The following certification statements by the designated
representative and any alternate designated representative--
    (i) ``I certify that I was selected as the designated
representative or alternate designated representative, as applicable,
by an agreement binding on the owners and operators of the source and
each CSAPR NOX Ozone Season Group 2 unit at the source.''
    (ii) ``I certify that I have all the necessary authority to carry
out my duties and responsibilities under the CSAPR NOX Ozone
Season Group 2 Trading Program on behalf of the owners and operators of
the source and of each CSAPR NOX Ozone Season Group 2 unit
at the source and that each such owner and operator shall be fully
bound by my representations, actions, inactions, or submissions and by
any decision or order issued to me by the Administrator regarding the
source or unit.''
    (iii) ``Where there are multiple holders of a legal or equitable
title to, or a leasehold interest in, a CSAPR NOX Ozone
Season Group 2 unit, or where a utility or industrial customer
purchases power from a CSAPR NOX Ozone Season Group 2 unit
under a life-of-the-unit, firm power contractual arrangement, I certify
that: I have given a written notice of my selection as the `designated
representative' or `alternate designated representative', as
applicable, and of the agreement by which I was selected to each owner
and operator of the source and of each CSAPR NOX Ozone
Season Group 2 unit at the source; and CSAPR NOX Ozone
Season Group 2 allowances and proceeds of transactions involving CSAPR
NOX Ozone Season Group 2 allowances will be deemed to be
held or distributed in proportion to each holder's legal, equitable,
leasehold, or contractual reservation or entitlement, except that, if
such multiple holders have expressly provided for a different
distribution of CSAPR NOX Ozone Season Group 2 allowances by
contract, CSAPR NOX Ozone Season Group 2 allowances and
proceeds of transactions involving CSAPR NOX Ozone Season
Group 2 allowances will be deemed to be held or distributed in
accordance with the contract.''
    (5) The signature of the designated representative and any
alternate designated representative and the dates signed.
    (b) Unless otherwise required by the Administrator, documents of
agreement referred to in the certificate of representation shall not be
submitted to the Administrator. The Administrator shall not be under
any obligation to review or evaluate the sufficiency of such documents,
if submitted.
    (c) A certificate of representation under this section or Sec.
97.516 that complies with the provisions of paragraph (a) of this
section except that it contains the phrase ``TR NOX Ozone
Season'' in place of the phrase ``CSAPR NOX Ozone Season
Group 2'' in the required certification statements will be considered a
complete certificate of representation under this section, and the
certification statements included in such certificate of representation
will be interpreted for purposes of this subpart as if the phrase
``CSAPR NOX Ozone Season Group 2'' appeared in place of the
phrase ``TR NOX Ozone Season''.

Sec.  97.817  Objections concerning designated representative and
alternate designated representative.

    (a) Once a complete certificate of representation under Sec.
97.816 has been submitted and received, the Administrator will rely on
the certificate of representation unless and until a superseding
complete certificate of representation under Sec.  97.816 is received
by the Administrator.
    (b) Except as provided in paragraph (a) of this section, no
objection or other communication submitted to the Administrator
concerning the authorization, or any representation, action, inaction,
or submission, of a designated representative or alternate designated
representative shall affect any representation, action, inaction, or
submission of the designated representative or alternate designated
representative or the finality of any decision or order by the
Administrator under the CSAPR NOX Ozone Season Group 2
Trading Program.

    (c) The Administrator will not adjudicate any private legal dispute
concerning the authorization or any representation, action, inaction,
or submission of any designated representative or alternate designated