1 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite PART 96   [ AMENDED]

1. Authority citation for Part 96 is amended to read as follows:

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

2. Part 96 is amended by adding subparts AA through CC,

adding and reserving subpart DD and adding subparts EE through II to read as follows:

Subpart AA   CAIR NOX Annual Trading Program General Provisions 96.101 Purpose.

96.102 Definitions.

96.103 Measurements, abbreviations, and acronyms.

96.104 Applicability.

96.105 Retired unit exemption.

96.106 Standard requirements.

96.107 Computation of time.

96.108 Appeal Procedures.

Subpart BB   CAIR Designated Representative for CAIR NOX Sources 96.110 Authorization and responsibilities of CAIR designated representative.

96.111 Alternate CAIR designated representative.

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

96.113 Certificate of representation. 2 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite 96.114 Objections concerning CAIR designated representative.

Subpart CC   Permits 96.120 General CAIR NOX Annual Trading Program permit requirements.

96.121 Submission of CAIR permit applications.

96.122 Information requirements for CAIR permit applications.

96.123 CAIR permit contents and term.

96.124 CAIR permit revisions.

Subpart DD   [ Reserved]

Subpart EE   CAIR NOX Allowance Allocations 96.140 State trading budgets.

96.141 Timing requirements for CAIR NOX allowance allocations.

96.142 CAIR NOX allowance allocations.

96.143 Compliance supplement pool.

Subpart FF   CAIR NOX Allowance Tracking System 96.150 [ Reserved]

96.151 Establishment of accounts.

96.152 Responsibilities of CAIR authorized account representative.

96.153 Recordation of CAIR NOX allowance allocations.

96.154 Compliance with CAIR NOX emissions limitation.

96.155 Banking.

96.156 Account error. 3 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite 96.157 Closing of general accounts.

Subpart GG   CAIR NOX Allowance Transfers 96.160 Submission of CAIR NOX allowance transfers.

96.161 EPA recordation.

96.162 Notification.

Subpart HH   Monitoring and Reporting 96.170 General requirements.

96.171 Initial certification and recertification procedures.

96.172 Out of control periods.

96.173 Notifications.

96.174 Recordkeeping and reporting.

96.175 Petitions.

96.176 Additional requirements to provide heat input data.

Subpart II   CAIR NOX Opt in Units 96.180 Applicability.

96.181 General.

96.182 CAIR designated representative.

96.183 Applying for CAIR opt in permit.

96.184 Opt in process.

96.185 CAIR opt in permit contents.

96.186 Withdrawal from CAIR NOX Annual Trading Program.

96.187 Change in regulatory status.

96.188 NOX allowance allocations to CAIR NOX opt in units. 4 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite Subpart AA   CAIR NOX Annual Trading Program General Provisions § 96.101 Purpose.

This subpart and subparts BB through II establish the model rule comprising general provisions and the designated representative,

permitting, allowance, monitoring, and opt in provisions for the State Clean Air Interstate Rule ( CAIR) NOX Annual Trading Program, under section 110 of the Clean Air Act and § 51.123 of this chapter, as a means of mitigating interstate transport of fine particulates and nitrogen oxides. The owner or operator of a unit or a source shall comply with the requirements of this subpart and subparts BB through II as a matter of federal law only if the State with jurisdiction over the unit and the source incorporates by reference such subparts or otherwise adopts the requirements of such subparts in accordance with § 51.123( o)( 1)

or ( 2) of this chapter, the State submits to the Administrator one or more revisions of the State implementation plan that include such adoption, and the Administrator approves such revisions. If the State adopts the requirements of such subparts in accordance with § 51.123( o)( 1) or ( 2) of this chapter, then the State authorizes the Administrator to assist the State in implementing the CAIR NOX Trading Program by carrying out the functions set forth for the Administrator in such subparts.

§ 96.102 Definitions. 5 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite The terms used in this subpart and subparts BB through II shall have the meanings set forth in this section as follows:

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

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

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

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

Allocate or allocation means, with regard to CAIR NOX allowances issued under subpart EE, the determination by the permitting authority or the Administrator of the amount of such CAIR NOX allowances to be initially credited to a CAIR NOX unit or a new unit set aside and, with regard to CAIR NOX allowances issued under § 96.188, the determination by the permitting authority of the amount of such CAIR NOX allowances to be initially credited to a CAIR NOX unit.

Allowance transfer deadline means, for a control period, midnight of March 1 or, if March 1 is not a business day, midnight of the 6 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite first business day thereafter immediately following the control period and is the deadline by which a CAIR NOX allowance transfer must be submitted for recordation in a CAIR NOX source's compliance account in order to be used to meet the source's CAIR NOX emissions limitation for such control period in accordance with § 96.154.

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

Automated data acquisition and handling system or DAHS means that 7 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite component of the continuous emission monitoring system, or other emissions monitoring system approved for use under subpart HH of this part, designed to interpret and convert individual output signals from pollutant concentration monitors, flow monitors,

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

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

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

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

in accordance with subpart BB and II of this part, to transfer and otherwise dispose of CAIR NOX allowances held in the general account or, with regard to a compliance account, the CAIR designated representative of the source.

CAIR designated representative means, for a CAIR NOX source and each CAIR NOX unit at the source, the natural person who is 8 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite authorized by the owners and operators of the source and all such units at the source, in accordance with subparts BB and II of this part, to represent and legally bind each owner and operator in matters pertaining to the CAIR NOX Annual Trading Program. If the CAIR NOX source is also a CAIR SO2 source, then this natural person shall be the same person as the CAIR designated representative under the CAIR SO2 Trading Program. If the CAIR NOX source is also a CAIR NOX Ozone Season source, then this natural person shall be the same person as the CAIR designated representative under the CAIR NOX Ozone Season Trading Program.

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

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

CAIR NOX allowance means a limited authorization issued by the permitting authority under subpart EE of this part or § 96.188 to emit one ton of nitrogen oxide during a control period of the specified calendar year for which the authorization is allocated or of any calendar year thereafter under the CAIR NOX Program.

An authorization to emit nitrogen oxides that is not issued under provisions of a State implementation plan that are approved under § 51.123( o)( 1) or ( 2) of this chapter shall not be a " CAIR NOX allowance."

CAIR NOX allowance deduction or deduct CAIR NOX allowances means 9 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite the permanent withdrawal of CAIR NOX allowances by the Administrator from a compliance account in order to account for a specified number of tons of total nitrogen oxide emissions from all CAIR NOX units at a CAIR NOX source for a control period,

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

CAIR NOX Allowance Tracking System means the system by which the Administrator records allocations, deductions, and transfers of CAIR NOX allowances under the CAIR NOX Annual Trading Program.

Such allowances will be allocated, held, deducted, or transferred only as whole allowances.

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

transferring, or deducting of CAIR NOX allowances.

CAIR NOX allowances held or hold CAIR NOX allowances means the CAIR NOX allowances recorded by the Administrator, or submitted to the Administrator for recordation, in accordance with subparts FF, GG, and II of this part, in a CAIR NOX Allowance Tracking System account.

CAIR NOX Annual Trading Program means a multi state nitrogen oxides air pollution control and emission reduction program approved and administered by the Administrator in accordance with 10 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite subparts AA through II of this part and § 51.123 of this chapter,

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

CAIR NOX emissions limitation means, for a CAIR NOX source, the tonnage equivalent of the CAIR NOX allowances available for deduction for the source under § 96.154( a) and ( b) for a control period.

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

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

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

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

CAIR NOX unit means a unit that is subject to the CAIR NOX Annual Trading Program under § 96.104 and, except for purposes of § 96.105 and subpart EE of this part, a CAIR NOX opt in unit under 11 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite subpart II of this part.

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

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

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

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

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

Coal means any solid fuel classified as anthracite, bituminous,

subbituminous, or lignite. 12 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite Coal derived fuel means any fuel ( whether in a solid, liquid, or gaseous state) produced by the mechanical, thermal, or chemical processing of coal.

Coal fired means, with regard to a unit, combusting any amount of coal or coal derived fuel, alone or in combination with any amount of any other fuel, during any year.

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

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

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

( ii) For a bottoming cycle cogeneration unit, useful power not 13 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite less than 45 percent of total energy input.

Combustion turbine means:

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

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

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

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

( 1) To have begun to produce steam, gas, or other heated medium used to generate electricity for sale or use, including test generation, except as provided in § 96.105.

( i) For a unit that is a CAIR NOX unit under § 96.104 on the date the unit commences commercial operation as defined in paragraph ( 1) of this definition and that subsequently undergoes a physical change ( other than replacement of the unit by a unit at the same source), such date shall remain the unit's date of commencement of commercial operation.

( ii) For a unit that is a CAIR NOX unit under § 96.104 on the date the unit commences commercial operation as defined in paragraph ( 1) of this definition and that is subsequently 14 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite replaced by a unit at the same source ( e. g., repowered), the replacement unit shall be treated as a separate unit with a separate date for commencement of commercial operation as defined in paragraph ( 1), ( 2), or ( 3) of this definition as appropriate.

( 2) Notwithstanding paragraph ( 1) of this definition and except as provided in § 96.105, for a unit that is not a CAIR NOX unit under § 96.104 on the date the unit commences commercial operation as defined in paragraph ( 1) of this definition and is not a unit under paragraph ( 3) of this definition, the unit's date for commencement of commercial operation shall be the date on which the unit becomes a CAIR NOX unit under § 96.104.

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

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

repowered), the replacement unit shall be treated as a separate unit with a separate date for commencement of commercial operation as defined in paragraph ( 1),( 2), or ( 3) of this definition as appropriate. 15 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite ( 3) Notwithstanding paragraph ( 1) of this definition and except as provided in § 96.184( h) or § 96.187( b)( 3), for a CAIR NOX optin unit or a unit for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under subpart II of this part, the unit's date for commencement of commercial operation shall be the date on which the owner or operator is required to start monitoring and reporting the NOX emissions rate and the heat input of the unit under § 96.184( b)( i)( 1).

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

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

( 4) Notwithstanding paragraphs ( 1) through ( 3) of this definition, for a unit not serving a generator producing electricity for sale, the unit's date of commencement of 16 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite operation shall also be the unit's date of commercial operation.

Commence operation means:

( 1) To have begun any mechanical, chemical, or electronic process, including, with regard to a unit, start up of a unit's combustion chamber, except as provided in § 96.105.

( i) For a unit that is a CAIR NOX unit under § 96.104 on the date the unit commences operation as defined in paragraph ( 1) of this definition and that subsequently undergoes a physical change ( other than replacement of the unit by a unit at the same source), such date shall remain the unit's date of commencement of operation.

( ii) For a unit that is a CAIR NOX unit under § 96.104 on the date the unit commences operation as defined in paragraph ( 1) of this definition and that is subsequently replaced by a unit at the same source ( e. g., repowered), the replacement unit shall be treated as a separate unit with a separate date for commencement of operation as defined in paragraph ( 1), ( 2), or ( 3) of this definition as appropriate.

( 2) Notwithstanding paragraph ( 1) of this definition and except as provided in § 96.105, for a unit that is not a CAIR NOX unit under § 96.104 on the date the unit commences operation as defined in paragraph ( 1) of this definition and is not a unit under paragraph ( 3) of this definition, the unit's date for 17 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite commencement of operation shall be the date on which the unit becomes a CAIR NOX unit under § 96.104.

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

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

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

( 3) Notwithstanding paragraph ( 1) of this definition and except as provided in § 96.184( h) or § 96.187( b)( 3), for a CAIR NOX optin unit or a unit for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under subpart II of this part, the unit's date for commencement of operation shall be the date on which the owner or operator is required to start monitoring and reporting the NOX emissions rate and the heat input of the unit under § 96.184( b)( i)( 1). 18 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite ( i) For a unit with a date for commencement of operation as defined in paragraph ( 3) of this definition and that subsequently undergoes a physical change ( other than replacement of the unit by a unit at the same source), such date shall remain the unit's date of commencement of operation.

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

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

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

Compliance account means a CAIR NOX Allowance Tracking System account, established by the Administrator for a CAIR NOX source under subpart FF or II of this part, in which any CAIR NOX allowance allocations for the CAIR NOX units at the source are initially recorded and in which are held any CAIR NOX allowances available for use for a control period in order to meet the source's CAIR NOX emissions limitation in accordance with § 96.154.

Continuous emission monitoring system or CEMS means the equipment 19 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite required under subpart HH of this part to sample, analyze,

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

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

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

( 2) A nitrogen oxides concentration monitoring system,

consisting of a NOX pollutant concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record of NOX emissions, in parts per million ( ppm);

( 3) A nitrogen oxides emission rate ( or NOX diluent) monitoring system, consisting of a NOX pollutant concentration monitor, a diluent gas ( CO2 or O2) monitor, and an automated data acquisition and handling system and providing a permanent, 20 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite continuous record of NOX concentration, in parts per million ( ppm), diluent gas concentration, in percent CO2 or O2; and NOX emission rate, in pounds per million British thermal units ( lb/ mmBtu);

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

of this chapter and providing a permanent, continuous record of the stack gas moisture content, in percent H2O;

( 5) A carbon dioxide monitoring system, consisting of a CO2 pollutant concentration monitor ( or an oxygen monitor plus suitable mathematical equations from which the CO2 concentration is derived) and the automated data acquisition and handling system and providing a permanent, continuous record of CO2 emissions, in percent CO2; and ( 6) An oxygen monitoring system, consisting of an O2 concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record of O2, in percent O2.

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

Emissions means air pollutants exhausted from a unit or source into the atmosphere, as measured, recorded, and reported to the Administrator by the CAIR designated representative and as determined by the Administrator in accordance with subpart HH of 21 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite this part.

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

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

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

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

Generator means a device that produces electricity.

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

Gross thermal energy means, with regard to a cogeneration unit,

useful thermal energy output plus, where such output is made available for an industrial or commercial process, any heat contained in condensate return or makeup water.

Heat input means, with regard to a specified period of time, the 22 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite product ( in mmBtu/ time) of the gross calorific value of the fuel ( in Btu/ lb) divided by 1,000,000 Btu/ mmBtu and multiplied by the fuel feed rate into a combustion device ( in lb of fuel/ time), as measured, recorded, and reported to the Administrator by the CAIR designated representative and determined by the Administrator in accordance with subpart HH of this part and excluding the heat derived from preheated combustion air, recirculated flue gases,

or exhaust from other sources.

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

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

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

( 1) For the life of the unit;

( 2) For a cumulative term of no less than 30 years, including contracts that permit an election for early termination; or ( 3) For a period no less than 25 years or 70 percent of the 23 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite economic useful life of the unit determined as of the time the unit is built, with option rights to purchase or release some portion of the nameplate capacity and associated energy generated by the unit at the end of the period.

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

Monitoring system means any monitoring system that meets the requirements of subpart HH of this part, including a continuous emissions monitoring system, an alternative monitoring system, or an excepted monitoring system under part 75 of this chapter.

Most stringent State or Federal NOX emissions limitation means,

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

Nameplate capacity means the maximum electrical generating output ( in MWe) that a generator is capable of producing on a steady state basis and during continuous operation ( when not restricted 24 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite by seasonal or other deratings), as specified by the manufacturer of the generator as of the initial installation of the generator or, if the generator subsequently undergoes a physical change resulting in an increase in such maximum electrical generating output, as specified by the person conducting the physical change.

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

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

Owner means any of the following persons:

( 1) Any holder of any portion of the legal or equitable title in a CAIR NOX unit; or ( 2) Any holder of a leasehold interest in a CAIR NOX unit; or ( 3) Any purchaser of power from a CAIR NOX unit under a life of the unit, firm power contractual arrangement; provided that, unless expressly provided for in a leasehold agreement,

owner shall not include a passive lessor, or a person who has an 25 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite equitable interest through such lessor, whose rental payments are not based ( either directly or indirectly) on the revenues or income from the CAIR NOX unit; or ( 4) With regard to any general account, any person who has an ownership interest with respect to the CAIR NOX allowances held in the general account and who is subject to the binding agreement for the CAIR authorized account representative to represent the person's ownership interest with respect to CAIR NOX allowances.

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

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

Receive or receipt of means, when referring to the permitting authority or the Administrator, to come into possession of a document, information, or correspondence ( whether sent in hard copy or by authorized electronic transmission), as indicated in an official correspondence log, or by a notation made on the 26 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite document, information, or correspondence, by the permitting authority or the Administrator in the regular course of business.

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

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

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

( 1) Atmospheric or pressurized fluidized bed combustion;

( 2) Integrated gasification combined cycle;

( 3) Magnetohydrodynamics ( 4) Direct and indirect coal fired turbines;

( 5) Integrated gasification fuel cells; or ( 6) As determined by the Administrator in consultation with the Secretary of Energy, a derivative of one or more of the technologies under paragraphs ( 1) through ( 5) of this definition and any other coal fired technology capable of controlling multiple combustion emissions simultaneously with improved boiler or generation efficiency and with significantly greater waste 27 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite reduction relative to the performance of technology in widespread commercial use as of January 1, 2005.

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

Sequential use of energy means:

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

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

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

State means one of the States or the District of Columbia that adopts the CAIR NOX Annual Trading Program pursuant to § 51.123( o)( 1) or ( 2) of this chapter.

Submit or serve means to send or transmit a document,

information, or correspondence to the person specified in accordance with the applicable regulation: 28 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite ( 1) In person;

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

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

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

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

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

Topping cycle cogeneration unit means a cogeneration unit in which the energy input to the unit is first used to produce 29 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite useful power, including electricity, and at least some of the reject heat from the electricity production is then used to provide useful thermal energy.

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

total energy of all forms supplied to the cogeneration unit,

excluding energy produced by the cogeneration unit itself.

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

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

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

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

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

Useful power means, with regard to a cogeneration unit,

electricity or mechanical energy made available for use,

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

Useful thermal energy means, with regard to a cogeneration unit,

thermal energy that is: 30 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite ( 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., thermal energy used by an absorption chiller).

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

§ 96.103 Measurements, abbreviations, and acronyms.

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

Btu British thermal unit.

CO2 carbon dioxide.

NOX nitrogen oxide.

hr hour.

kW kilowatt electrical.

kWh kilowatt hour.

mmBtu million Btu.

MWe megawatt electrical.

MWh megawatt hour.

O2 oxygen. 31 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite ppm parts per million.

lb pound.

scfh standard cubic feet per hour.

SO2 sulfur dioxide.

H2O water.

yr year.

§ 96.104 Applicability.

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

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

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

( b) For a unit that qualifies as a cogeneration unit during the 12 month period starting on the date the unit first produces electricity and continues to qualify as a cogeneration unit, a cogeneration unit serving at any time a generator with nameplate capacity of more than 25 MWe and supplying in any calendar year more than one third of the unit's potential electric output capacity or 219,000 MWh, whichever is greater, to any utility 32 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite power distribution system for sale. If a unit that qualifies as a cogeneration unit during the 12 month period starting on the date the unit first produces electricity but subsequently no longer qualifies as a cogeneration unit, the unit shall be subject to paragraph ( a) of this section starting on the day on which the unit first no longer qualifies as a cogeneration unit.

§ 96.105 Retired unit exemption.

( a)( 1) Any CAIR NOX unit that is permanently retired and is not a CAIR NOX opt in unit under subpart II of this part shall be exempt from the CAIR NOX Annual Trading Program, except for the provisions of this section, § 96.102, § 96.103, § 96.104, § 96.106( c)( 5) through ( 8), § 96.107, and subparts EE through GG of this part.

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

( 3) After receipt of the notice under paragraph ( a)( 2) of 33 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite this section, the permitting authority will amend any permit under subpart CC of this part covering the source at which the unit is located to add the provisions and requirements of the exemption under paragraphs ( a)( 1) and ( b) of this section.

( b) Special provisions.

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

( 2) The permitting authority will allocate CAIR NOX allowances under subpart EE of this part to a unit exempt under paragraph ( a) of this section.

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

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

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

the CAIR designated representative of a unit exempt under paragraph ( a) of this section shall comply with the requirements of the CAIR NOX Annual Trading Program concerning all periods for 34 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite which the exemption is not in effect, even if such requirements arise, or must be complied with, after the exemption takes effect.

( 5) A unit exempt under paragraph ( a) of this section and located at a source that is required, or but for this exemption would be required, to have a title V operating permit shall not resume operation unless the CAIR designated representative of the source submits a complete CAIR permit application under § 96.122 for the unit not less than 18 months ( or such lesser time provided by the permitting authority) before the later of January 1, 2009 or the date on which the unit resumes operation.

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

( i) The date on which the CAIR designated representative submits a CAIR permit application for the unit under paragraph ( b)( 5) of this section;

( ii) The date on which the CAIR designated representative is required under paragraph ( b)( 5) of this section to submit a CAIR permit application for the unit; or ( iii) The date on which the unit resumes operation, if the CAIR designated representative is not required to submit a CAIR permit application for the unit.

( 7) For the purpose of applying monitoring, reporting, and recordkeeping requirements under subpart HH of this part, a unit 35 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite that loses its exemption under paragraph ( a) of this section shall be treated as a unit that commences operation and commercial operation on the first date on which the unit resumes operation.

§ 96.106 Standard requirements.

( a) Permit Requirements.

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

( i) Submit to the permitting authority a complete CAIR permit application under § 96.122 in accordance with the deadlines specified in § 96.121( b) and ( c); and ( ii) Submit in a timely manner any supplemental information that the permitting authority determines is necessary in order to review a CAIR permit application and issue or deny a CAIR permit.

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

( 3) Except as provided in subpart II of this part, the owners and operators of a CAIR NOX source that is not otherwise 36 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite required to have a title V operating permit and each CAIR NOX unit that is not otherwise required to have a title V operating permit are not required to submit a CAIR permit application, and to have a CAIR permit, under subpart CC of this part for such CAIR NOX source and such CAIR NOX unit.

( b) Monitoring, reporting, and recordkeeping requirements.

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

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

( c) Nitrogen oxide emission requirements.

( 1) As of the allowance transfer deadline for a control period, the owners and operators of each CAIR NOX source and each CAIR NOX unit at the source shall hold, in the source's compliance account, CAIR NOX allowances available for compliance deductions for the control period under § 96.154( a) in an amount not less than the tons of total nitrogen oxides emissions for the control period from all CAIR NOX units at the source, as determined in accordance with subpart HH of this part.

( 2) A CAIR NOX unit shall be subject to the requirements 37 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite under paragraph ( c)( 1) of this section starting on the later of January 1, 2009 or the deadline for meeting the unit's monitor certification requirements under § 96.170( b)( 1),( 2), or ( 5).

( 3) A CAIR NOX allowance shall not be deducted, for compliance with the requirements under paragraph ( c)( 1) of this section, for a control period in a calendar year before the year for which the CAIR NOX allowance was allocated.

( 4) CAIR NOX allowances shall be held in, deducted from, or transferred into or among CAIR NOX Allowance Tracking System accounts in accordance with subpart EE of this part.

( 5) A CAIR NOX allowance is a limited authorization to emit one ton of nitrogen oxide in accordance with the CAIR NOX Annual Trading Program. No provision of the CAIR NOX Annual Trading Program, the CAIR permit application, the CAIR permit, or an exemption under § 96.105 and no provision of law shall be construed to limit the authority of the State or the United States to terminate or limit such authorization.

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

( 7) Upon recordation by the Administrator under subparts FF,

GG, or II of this part, every allocation, transfer, or deduction of a CAIR NOX allowance to or from a CAIR NOX unit's compliance account is incorporated automatically in any CAIR permit of the source that includes the CAIR NOX unit. 38 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite ( d) Excess emissions requirements.

( 1) If a CAIR NOX source emits nitrogen oxides during any control period in excess of the CAIR NOX emissions limitation,

then:

( i) The owners and operators of the source and each CAIR NOX unit at the source shall surrender the CAIR NOX allowances required for deduction under § 96.154( d)( 1) and pay any fine,

penalty, or assessment or comply with any other remedy imposed under § 96.154( d)( 2); and ( ii) Each ton of such excess emissions and each day of such control period shall constitute a separate violation of this subpart, the Clean Air Act, and applicable State law.

( e) Recordkeeping and reporting requirements.

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

( i) The certificate of representation under § 96.113 for the CAIR designated representative for the source and each CAIR NOX unit at the source and all documents that demonstrate the truth of the statements in the certificate of representation; provided 39 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite that the certificate and documents shall be retained on site at the source beyond such 5 year period until such documents are superseded because of the submission of a new certificate of representation under § 96.113 changing the CAIR designated representative.

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

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

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

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

( f) Liability.

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

( 2) Any provision of the CAIR NOX Annual Trading Program 40 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite that applies to a CAIR NOX source or the CAIR designated representative of a CAIR NOX source shall also apply to the owners and operators of such source and of the CAIR NOX units at the source.

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

( g) Effect on other authorities. No provision of the CAIR NOX Annual Trading Program, a CAIR permit application, a CAIR permit, or an exemption under § 96.105 shall be construed as exempting or excluding the owners and operators, and the CAIR designated representative, of a CAIR NOX source or CAIR NOX unit from compliance with any other provision of the applicable,

approved State implementation plan, a federally enforceable permit, or the Clean Air Act.

§ 96.107 Computation of time.

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

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

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

under the CAIR NOX Annual Trading Program, to begin before the occurrence of an act or event shall be computed so that the 41 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite period ends the day before the act or event occurs.

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

§ 96.108 Appeal Procedures.

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

Subpart BB   CAIR designated representative for CAIR NOX sources § 96.110 Authorization and responsibilities of CAIR designated representative.

( a) Except as provided under § 96.111, each CAIR NOX source,

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

( b) The CAIR designated representative of the CAIR NOX source shall be selected by an agreement binding on the owners and operators of the source and all CAIR NOX units at the source and shall act in accordance with the certification statement in § 96.113( a)( 5)( iv).

( c) Upon receipt by the Administrator of a complete 42 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite certificate of representation under § 96.113, the CAIR designated representative of the source shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each owner and operator of the CAIR NOX source represented and each CAIR NOX unit at the source in all matters pertaining to the CAIR NOX Annual Trading Program, notwithstanding any agreement between the CAIR designated representative and such owners and operators. The owners and operators shall be bound by any decision or order issued to the CAIR designated representative by the permitting authority, the Administrator, or a court regarding the source or unit.

( d) No CAIR permit will be issued, no emissions data reports will be accepted, and no CAIR NOX Allowance Tracking System account will be established for a CAIR NOX unit at a source,

until the Administrator has received a complete certificate of representation under § 96.113 for a CAIR designated representative of the source and the CAIR NOX units at the source.

( e)( 1) Each submission under the CAIR NOX Annual Trading Program shall be submitted, signed, and certified by the CAIR designated representative for each CAIR NOX source on behalf of which the submission is made. Each such submission shall include the following certification statement by the CAIR designated representative: " I am authorized to make this submission on 43 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite 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."

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

§ 96.111 Alternate CAIR designated representative.

( a) A certificate of representation under § 96.113 may designate one and only one alternate CAIR designated representative, who may act on behalf of the CAIR designated representative. The agreement by which the alternate CAIR designated representative is selected shall include a procedure for authorizing the alternate CAIR designated representative to act in lieu of the CAIR designated representative. 44 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite ( b) Upon receipt by the Administrator of a complete certificate of representation under § 96.113, any representation,

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

inaction, or submission by the CAIR designated representative.

( c) Except in this section and § § 96.102, 96.110( a) and ( d),

96.112, 96.113, 96.151 and 96.182, whenever the term " CAIR designated representative" is used in subparts AA through II of this part, the term shall be construed to include the CAIR designated representative or any alternate CAIR designated representative.

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

( a) Changing CAIR designated representative. The CAIR designated representative may be changed at any time upon receipt by the Administrator of a superseding complete certificate of representation under § 96.113. Notwithstanding any such change,

all representations, actions, inactions, and submissions by the previous CAIR designated representative before the time and date when the Administrator receives the superseding certificate of representation shall be binding on the new CAIR designated representative and the owners and operators of the CAIR NOX source and the CAIR NOX units at the source. 45 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite ( b) Changing alternate CAIR designated representative. The alternate CAIR designated representative may be changed at any time upon receipt by the Administrator of a superseding complete certificate of representation under § 96.113. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous alternate CAIR designated representative before the time and date when the Administrator receives the superseding certificate of representation shall be binding on the new alternate CAIR designated representative and the owners and operators of the CAIR NOX source and the CAIR NOX units at the source.

( c) Changes in owners and operators.

( 1) In the event a new owner or operator of a CAIR NOX source or a CAIR NOX unit is not included in the list of owners and operators in the certificate of representation under § 96.113, such new owner or operator shall be deemed to be subject to and bound by the certificate of representation, the representations, actions, inactions, and submissions of the CAIR designated representative and any alternate CAIR designated representative of the source or unit, and the decisions and orders of the permitting authority, the Administrator, or a court, as if the new owner or operator were included in such list.

( 2) Within 30 days following any change in the owners and 46 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite operators of a CAIR NOX source or a CAIR NOX unit, including the addition of a new owner or operator, the CAIR designated representative or any alternate CAIR designated representative shall submit a revision to the certificate of representation under § 96.113 amending the list of owners and operators to include the change.

§ 96.113 Certificate of representation.

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

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

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

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

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

( i) " I certify that I was selected as the CAIR designated 47 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite representative or alternate CAIR designated representative, as applicable, by an agreement binding on the owners and operators of the source and each CAIR NOX unit at the source."

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

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

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

or where a customer purchases power from a CAIR NOX unit under a life of the unit, firm power contractual arrangement, I certify that: I have given a written notice of my selection as the ` CAIR designated representative' or ` alternate CAIR designated representative', as applicable, and of the agreement by which I was selected to each owner and operator of the source and of each CAIR NOX unit at the source; and CAIR NOX allowances and proceeds of transactions involving CAIR NOX allowances will be deemed to be held or distributed in proportion to each holder's legal, 48 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite equitable, leasehold, or contractual reservation or entitlement or, if such multiple holders have expressly provided for a different distribution of CAIR NOX allowances by contract, CAIR NOX allowances and proceeds of transactions involving CAIR NOX allowances will be deemed to be held or distributed in accordance with the contract."

( 5) The signature of the CAIR designated representative and any alternate CAIR designated representative and the dates signed.

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

§ 96.114 Objections concerning CAIR designated representative.

( a) Once a complete certificate of representation under § 96.113 has been submitted and received, the permitting authority and the Administrator will rely on the certificate of representation unless and until a superseding complete certificate of representation under § 96.113 is received by the Administrator.

( b) Except as provided in § 96.112( a) or ( b), no objection 49 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite or other communication submitted to the permitting authority or the Administrator concerning the authorization, or any representation, action, inaction, or submission, of the CAIR designated representative shall affect any representation,

action, inaction, or submission of the CAIR designated representative or the finality of any decision or order by the permitting authority or the Administrator under the CAIR NOX Annual Trading Program.

( c) Neither the permitting authority nor the Administrator will adjudicate any private legal dispute concerning the authorization or any representation, action, inaction, or submission of any CAIR designated representative, including private legal disputes concerning the proceeds of CAIR NOX allowance transfers.

Subpart CC   Permits § 96.120 General CAIR Annual Trading Program permit requirements.

( a) For each CAIR NOX source required to have a title V operating permit or required, under subpart II of this part, to have a title V operating permit or other federally enforceable permit, such permit shall include a CAIR permit administered by the permitting authority for the title V operating permit or the federally enforceable permit as applicable. The CAIR portion of 50 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite the title V permit or other federally enforceable permit as applicable shall be administered in accordance with the permitting authority's title V operating permits regulations promulgated under part 70 or 71 of this chapter or the permitting authority's regulations for other federally enforceable permits as applicable, except as provided otherwise by this subpart and subpart II of this part.

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

§ 96.121 Submission of CAIR permit applications.

( a) Duty to apply. The CAIR designated representative of any CAIR NOX source required to have a title V operating permit shall submit to the permitting authority a complete CAIR permit application under § 96.122 for the source covering each CAIR NOX unit at the source at least 18 months ( or such lesser time provided by the permitting authority) before the later of January 1, 2009 or the date on which the CAIR NOX unit commences operation.

( b) Duty to Reapply. For a CAIR NOX source required to have 51 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite a title V operating permit, the CAIR designated representative shall submit a complete CAIR permit application under § 96.122 for the source covering each CAIR NOX unit at the source to renew the CAIR permit in accordance with the permitting authority's title V operating permits regulations addressing permit renewal.

§ 96.122 Information requirements for CAIR permit applications.

A complete CAIR permit application shall include the following elements concerning the CAIR NOX source for which the application is submitted, in a format prescribed by the permitting authority:

( a) Identification of the CAIR NOX source;

( b) Identification of each CAIR NOX unit at the CAIR NOX source; and ( c) The standard requirements under § 96.106.

§ 96.123 CAIR permit contents and term.

( a) Each CAIR permit will contain, in a format prescribed by the permitting authority, all elements required for a complete CAIR permit application under § 96.122.

( b) Each CAIR permit is deemed to incorporate automatically the definitions of terms under § 96.102 and, upon recordation by the Administrator under subpart FF, GG, or II of this part, every allocation, transfer, or deduction of a CAIR NOX allowance to or from the compliance account of the CAIR NOX source covered by the 52 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite permit.

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

§ 96.124 CAIR permit revisions.

Except as provided in § 96.123( b), the permitting authority will revise the CAIR permit, as necessary, in accordance with the permitting authority's title V operating permits regulations or the permitting authority's regulations for other federally enforceable permits as applicable addressing permit revisions.

Subpart DD   [ Reserved]

Subpart EE   CAIR NOX Allowance Allocations § 96.140 State trading budgets.

The State trading budgets for annual allocations of CAIR NOX allowances for the control periods in 2009 through 2014 and in 2015 and thereafter are respectively as follows:

State State Trading Budget for 2009 2014 ( tons) State Trading Budget for 2015 and thereafter ( tons) Alabama 69,020 57,517 District of Columbia 144 120 Florida 99,445 82,871 53 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite Georgia 66,321 55,268 Illinois 76,230 63,525 Indiana 108,935 90,779 Iowa 32,692 27,243 Kentucky 83,205 69,337 Louisiana 35,512 29,593 Maryland 27,724 23,104 Michigan 65,304 54,420 Minnesota 31,443 26,203 Mississippi 17,807 14,839 Missouri 59,871 49,892 New York 45,617 38,014 North Carolina 62,183 51,819 Ohio 108,667 90,556 Pennsylvania 99,049 82,541 South Carolina 32,662 27,219 Tennessee 50,973 42,478 Texas 181,014 150,845 Virginia 36,074 30,062 West Virginia 74,220 61,850 Wisconsin 40,759 33,966 § 96.141 Timing requirements for CAIR NOX allowance allocations.

( a) By October 31, 2006, the permitting authority will submit to the Administrator the CAIR NOX allowance allocations,

in a format prescribed by the Administrator and in accordance with § 96.142( a) and ( b), for the control periods in 2009, 2010,

2011, 2012, 2013, and 2014.

( b)( 1) By October 31, 2009 and October 31 of each year thereafter, the permitting authority will submit to the Administrator the CAIR NOX allowance allocations, in a format prescribed by the Administrator and in accordance with § 96.142( a) and ( b), for the control period in the sixth year after the year of the applicable deadline for submission under this paragraph.

( 2) If the permitting authority fails to submit to the 54 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite Administrator the CAIR NOX allowance allocations in accordance with paragraph ( b)( 1), the Administrator will assume that the allocations of CAIR NOX allowances for the applicable control period are the same as for the control period that immediately precedes the applicable control period.

( c)( 1) By October 31, 2009 and October 31 of each year thereafter, the permitting authority will submit to the Administrator the CAIR NOX allowance allocations, in a format prescribed by the Administrator and in accordance with § 96.142( c) and ( d), for the control period in the year of the applicable deadline for submission under this paragraph.

( 2) If the permitting authority fails to submit to the Administrator the CAIR NOX allowance allocations in accordance with paragraph ( c)( 1), the Administrator will assume that the allocations of CAIR NOX allowances for the applicable control period are the same as for the control period that immediately precedes the applicable control period, except that any CAIR NOX unit that would otherwise be allocated CAIR NOX allowances under § 96.142( a) and ( b), as well as under § 96.142( c) and ( d), for the applicable control period will be assumed to be allocated no CAIR NOX allowances under § 96.142( c) and ( d) for the applicable control period.

§ 96.142 CAIR NOX allowance allocations.

( a)( 1) The baseline heat input ( in mmBtu) used with respect 55 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite to CAIR NOX allowance allocations under paragraph ( b) of this section for each CAIR NOX unit will be:

( i) For units commencing operation before January 1, 2001 the average of the 3 highest amounts of the unit's adjusted control period heat input for 2000 through 2004, with the adjusted control period heat input for each year calculated as follows:

( A) If the unit is a coal fired unit, the unit's control period heat input for such year is multiplied by 100 percent; and ( B) If the unit not a coal fired unit, the unit's control period heat input for such year is multiplied by 40 percent.

( ii) For units commencing operation on or after January 1,

2001 and operating each calendar year during a period of 5 or more consecutive calendar years, the average of the 3 highest amounts of the unit's total converted control period heat input over the first such 5 years.

( 2)( i) A unit's control period heat input for a calendar year under paragraphs ( a)( 1)( i) and ( a)( 2)( ii)( A) of this section, and a unit's total tons of NOX emissions during a calendar year under paragraph ( c)( 3) of this section, will be determined in accordance with part 75 of this chapter, to the extent the unit was otherwise subject to the requirements of part 75 of this chapter for the year, or will be based on the best available data reported to the permitting authority for the unit, 56 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite to the extent the unit was not otherwise subject to the requirements of part 75 of this chapter for the year.

( ii) A unit's converted control period heat input for a calendar year specified under paragraph ( a)( 1)( ii) of this section equals:

( A) The control period gross electrical output of the generator or generators served by the unit multiplied by 8,000 Btu/ kWh, provided that if a generator is served by 2 or more units, then the gross electrical output of the generator will be attributed to each unit in proportion to the unit's share of the total control period heat input of such units for the year; plus ( B) For a cogeneration unit, one half of the unit's control period gross thermal energy multiplied by 8,000 Btu/ kWh.

( b)( 1) For each control period in 2009 and thereafter, the permitting authority will allocate to all CAIR NOX units in the State that have a baseline heat input ( as determined under paragraph ( a) of this section) a total amount of CAIR NOX allowances equal to 95 percent for a control period during 2009 through 2014, and 97 percent for a control period during 2015 and thereafter, of the tons of NOX emissions in the State trading budget under § 96.140 ( except as provided in paragraph ( d) of this section).

( 2) The permitting authority will allocate CAIR NOX allowances to each CAIR NOX unit under paragraph ( b)( 1) of this 57 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite section in an amount determined by multiplying the total amount of CAIR NOX allowances allocated under paragraph ( b)( 1) of this section by the ratio of the baseline heat input of such unit to the total amount of baseline heat input of all CAIR NOX units in the State and rounding to the nearest whole allowance as appropriate.

( c) For each control period in 2009 and thereafter, the permitting authority will allocate CAIR NOX allowances to CAIR NOX units in the State that commenced operation on or after January 1, 2000 and do not yet have a baseline heat input ( as determined under paragraph ( a) of this section), in accordance with the following procedures:

( 1) The permitting authority will establish a separate new unit set aside for each control period. Each new unit set aside will be allocated CAIR NOX allowances equal to 5 percent for a control period in 2009 through 2013, and 3 percent for a control period in 2014 and thereafter, of the amount of tons of NOX emissions in the State trading budget under § 96.140.

( 2) The CAIR designated representative of such a CAIR NOX unit may submit to the permitting authority a request, in a format specified by the permitting authority, to be allocated CAIR NOX allowances, starting with the later of the control period in 2009 or the first control period after the control period in which the CAIR NOX unit commences commercial operation 58 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite and until the first control period for which the unit is allocated CAIR NOX allowances under paragraph ( b) of this section. The CAIR NOX allowance allocation request must be submitted on or before March 1 of the first control period for which the CAIR NOX allowances are requested and after the date on which the CAIR NOX unit commences commercial operation.

( 3) In a CAIR NOX allowance allocation request under paragraph ( c)( 2) of this section, the CAIR designated representative may request for a control period CAIR NOX allowances in an amount not exceeding the CAIR NOX unit's total tons of NOX emissions during the calendar year immediately before such control period.

( 4) The permitting authority will review each CAIR NOX allowance allocation request under paragraph ( c)( 2) of this section and will allocate CAIR NOX allowances for each control period pursuant to such request as follows:

( i) The permitting authority will accept an allowance allocation request only if the request meets, or is adjusted by the permitting authority as necessary to meet, the requirements of paragraphs ( c)( 2) and ( 3) of this section.

( ii) On or after March 1 of the control period, the permitting authority will determine the sum of the CAIR NOX allowances requested ( as adjusted under paragraph ( c)( 4)( i) of this section) in all allowance allocation requests accepted under 59 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite paragraph ( c)( 4)( i) of this section for the control period.

( iii) If the amount of CAIR NOX allowances in the new unit set aside for the control period is greater than or equal to the sum under paragraph ( c)( 4)( ii) of this section, then the permitting authority will allocate the amount of CAIR NOX allowances requested ( as adjusted under paragraph ( c)( 4)( i) of this section) to each CAIR NOX unit covered by an allowance allocation request accepted under paragraph ( c)( 4)( i) of this section.

( iv) If the amount of CAIR NOX allowances in the new unit set aside for the control period is less than the sum under paragraph ( c)( 4)( ii) of this section, then the permitting authority will allocate to each CAIR NOX unit covered by an allowance allocation request accepted under paragraph ( c)( 4)( i)

of this section the amount of the CAIR NOX allowances requested ( as adjusted under paragraph ( c)( 4)( i) of this section),

multiplied by the number of CAIR NOX allowances in the new unit set aside for the control period, divided by the sum determined under paragraph ( c)( 4)( ii) of this section, and rounded to the nearest whole allowance as appropriate.

( v) The permitting authority will notify each CAIR designated representative that submitted an allowance allocation request of the amount of CAIR NOX allowances ( if any) allocated for the control period to the CAIR NOX unit covered by the 60 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite request.

( d) If, after completion of the procedures under paragraph ( c)( 4) of this section for a control period, any unallocated CAIR NOX allowances remain in the new unit set aside for the control period, the permitting authority will allocate to each CAIR NOX unit that was allocated CAIR NOX allowances under paragraph ( b)

of this section an amount of CAIR NOX allowances equal to the total amount of such remaining unallocated CAIR NOX allowances,

multiplied by the unit's allocation under paragraph ( b) of this section, divided by 95 percent for a control period during 2009 through 2014, and 97 percent for a control period during 2015 and thereafter, of the amount of tons of NOX emissions in the State trading budget under § 96.140, and rounded to the nearest whole allowance as appropriate.

§ 97.143 Compliance supplement pool.

( a) In addition to the CAIR NOX allowances allocated under § 96.142, the permitting authority may allocate for the control period in 2009 up to the following amount of CAIR NOX allowances to CAIR NOX units in the respective State:

State Compliance Supplement Pool Alabama 10,179 District Of Columbia 0 61 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite Florida 8,345 Georgia 12,412 Illinois 11,313 Indiana 20,180 Iowa 6,987 Kentucky 14,953 Louisiana 2,254 Maryland 4,676 Michigan 8,358 Minnesota 6,536 Mississippi 3,070 Missouri 9,055 New York 0 North Carolina 0 Ohio 25,068 Pennsylvania 16,029 South Carolina 2,604 Tennessee 8,955 Texas 773 Virginia 5,141 West Virginia 16,950 Wisconsin 4,904 ( b) For any CAIR NOX unit in the State that achieves NOX emission reductions in 2007 and 2008 that are not necessary to comply with any State or federal emissions limitation applicable during such years, the CAIR designated representative of the unit may request early reduction credits, and allocation of CAIR NOX allowances from the compliance supplement pool under paragraph ( a) of this section for such early reduction credits, in accordance with the following:

( 1) The owners and operators of such CAIR NOX unit shall monitor and report the NOX emissions rate and the heat input of the unit in accordance with subpart HH of this part in each 62 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite control period for which early reduction credit is requested.

( 2) The CAIR designated representative of such CAIR NOX unit shall submit to the permitting authority by May 31, 2009 a request, in a format specified by the permitting authority, for allocation of an amount of CAIR NOX allowances from the compliance supplement pool not exceeding the sum of the amounts ( in tons) of the unit's NOX emission reductions in 2007 and 2008 that are not necessary to comply with any State or federal emissions limitation applicable during such years, determined in accordance with subpart HH of this part.

( c) For any CAIR NOX unit in the State whose compliance with CAIR NOX emissions limitation for the control period in 2009 would create an undue risk to the reliability of electricity supply during such control period, the CAIR designated representative of the unit may request the allocation of CAIR NOX allowances from the compliance supplement pool under paragraph ( a) of this section, in accordance with the following:

( 1) The CAIR designated representative of such CAIR NOX unit shall submit to the permitting authority by May 31, 2009 a request, in a format specified by the permitting authority, for allocation of an amount of CAIR NOX allowances from the compliance supplement pool not exceeding the minimum amount of CAIR NOX allowances necessary to remove such undue risk to the reliability of electricity supply. 63 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite ( 2) In the request under paragraph ( c)( 1) of this section,

the CAIR designated representative of such CAIR NOX unit shall demonstrate that, in the absence of allocation to the unit of the amount of CAIR NOX allowances requested, the unit's compliance with CAIR NOX emissions limitation for the control period in 2009 would create an undue risk to the reliability of electricity supply during such control period. This demonstration must include a showing that it would not be feasible to:

( i) For the owners and operators of the unit to obtain a sufficient amount of electricity from other electricity generation facilities, during the installation of control technology at the unit for compliance with the CAIR NOX emissions limitation, to prevent such undue risk; or ( ii) Obtain under paragraphs ( b) and ( d) of this section, or otherwise obtain, a sufficient amount of CAIR NOX allowances to prevent such undue risk.

( d) The permitting authority will review each request under paragraph ( b) or ( c) of this section submitted by May 31, 2009 and will allocate CAIR NOX allowances for the control period in 2009 to CAIR NOX units in the State and covered by such request as follows:

( 1) Upon receipt of each such request, the permitting authority will make any necessary adjustments to the request to 64 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite ensure that the amount of the CAIR NOX allowances requested meets the requirements of paragraph ( b) or ( c) of this section.

( 2) If the State's compliance supplement pool under paragraph ( a) of this section has an amount of CAIR NOX allowances not less than the total amount of CAIR NOX allowances in all such requests ( as adjusted under paragraph ( d)( 1) of this section), the permitting authority will allocate to each CAIR NOX unit covered by such requests the amount of CAIR NOX allowances requested ( as adjusted under paragraph ( d)( 1) of this section).

( 4) If the State's compliance supplement pool under paragraph ( a) of this section has a smaller amount of CAIR NOX allowances than the total amount of CAIR NOX allowances in all such requests ( as adjusted under paragraph ( d)( 1) of this section), the permitting authority will allocate CAIR NOX allowances to each CAIR NOX unit covered by such requests according to the following formula and rounding to the nearest whole CAIR NOX allowance as appropriate:

Unit's allocation = Unit's adjusted allocation × ( State's compliance supplement pool ÷ Total adjusted allocations for all units)

Where:

" Unit's allocation" is the number of CAIR NOX allowances allocated to the unit from the State's compliance supplement pool. 65 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite " Unit's adjusted allocation" is the amount of CAIR NOX allowances requested for the unit under paragraph ( b) or ( c) of this section, as adjusted under paragraph ( d)( 1) of this section.

" State's compliance supplement pool" is the amount of CAIR NOX allowances in the State's compliance supplement pool.

" Total adjusted allocations for all units" is the sum of the amounts of allocations requested for all units under paragraph ( b) or ( c) of this section, as adjusted under paragraph ( d)( 1) of this section.

( 5) By November 30, 2009, the permitting authority will determine the allocations under paragraph ( d)( 3) or ( 4) of this section.

( 6) By January 1, 2010, the Administrator will record the allocations under paragraph ( d)( 5) of this section.

Subpart FF   CAIR NOX Allowance Tracking System § 96.150 [ Reserved]

§ 96.151 Establishment of accounts.

( a) Compliance accounts. Except as provided in § 96.184( h),

upon receipt of a complete certificate of representation under § 96.113, the Administrator will establish a compliance account for the CAIR NOX source for which the certificate of representation was submitted unless the source already has a compliance account.

( b) General accounts. 66 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite ( 1) Application for general account.

( i) Any person may apply to open a general account for the purpose of holding and transferring CAIR NOX allowances. An application for a general account may designate one and only one CAIR authorized account representative and one and only one alternate CAIR authorized account representative who may act on behalf of the CAIR authorized account representative. The agreement by which the alternate CAIR authorized account representative is selected shall include a procedure for authorizing the alternate CAIR authorized account representative to act in lieu of the CAIR authorized account representative.

( ii) A complete application for a general account shall be submitted to the Administrator and shall include the following elements in a format prescribed by the Administrator:

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

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

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

( C) A list of all persons subject to a binding agreement for the CAIR authorized account representative and any alternate CAIR authorized account representative to represent their ownership interest with respect to the allowances held in the general 67 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite account;

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

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

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

( iii) Unless otherwise required by the permitting authority or the Administrator, documents of agreement referred to in the application for a general account shall not be submitted to the permitting authority or the Administrator. Neither the permitting authority nor the Administrator shall be under any obligation to review or evaluate the sufficiency of such documents, if submitted. 68 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite ( 2) Authorization of CAIR authorized account representative.

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

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

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

actions, inactions, or submissions, legally bind each person who has an ownership interest with respect to CAIR NOX allowances held in the general account in all matters pertaining to the CAIR NOX Annual Trading Program, notwithstanding any agreement between the CAIR authorized account representative or any alternate CAIR authorized account representative and such person. Any such person shall be bound by any order or decision issued to the CAIR authorized account representative or any alternate CAIR authorized account representative by the Administrator or a court regarding the general account.

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

( ii) Each submission concerning the general account shall 69 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite be submitted, signed, and certified by the CAIR authorized account representative or any alternate CAIR authorized account representative for the persons having an ownership interest with respect to CAIR NOX allowances held in the general account. Each such submission shall include the following certification statement by the CAIR authorized account representative or any alternate CAIR authorized account representative: " I am authorized to make this submission on behalf of the persons having an ownership interest with respect to the CAIR NOX allowances held in the general account. I certify under penalty of law that I have personally examined, and am familiar with, the statements and information submitted in this document and all its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify that the statements and information are to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment."

( iii) The Administrator will accept or act on a submission concerning the general account only if the submission has been made, signed, and certified in accordance with paragraph ( b)( 2)( ii) of this section.

( 3) Changing CAIR authorized account representative and 70 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite alternate CAIR authorized account representative; changes in persons with ownership interest.

( i) The CAIR authorized account representative for a general account may be changed at any time upon receipt by the Administrator of a superseding complete application for a general account under paragraph ( b)( 1) of this section. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous CAIR authorized account representative before the time and date when the Administrator receives the superseding application for a general account shall be binding on the new CAIR authorized account representative and the persons with an ownership interest with respect to the CAIR NOX allowances in the general account.

( ii) The alternate CAIR authorized account representative for a general account may be changed at any time upon receipt by the Administrator of a superseding complete application for a general account under paragraph ( b)( 1) of this section.

Notwithstanding any such change, all representations, actions,

inactions, and submissions by the previous alternate CAIR authorized account representative before the time and date when the Administrator receives the superseding application for a general account shall be binding on the new alternate CAIR authorized account representative and the persons with an ownership interest with respect to the CAIR NOX allowances in the 71 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite general account.

( iii)( A) In the event a new person having an ownership interest with respect to CAIR NOX allowances in the general account is not included in the list of such persons in the application for a general account, such new person shall be deemed to be subject to and bound by the application for a general account, the representation, actions, inactions, and submissions of the CAIR authorized account representative and any alternate CAIR authorized account representative of the account,

and the decisions and orders of the Administrator or a court, as if the new person were included in such list.

( B) Within 30 days following any change in the persons having an ownership interest with respect to CAIR NOX allowances in the general account, including the addition of persons, the CAIR authorized account representative or any alternate CAIR authorized account representative shall submit a revision to the application for a general account amending the list of persons having an ownership interest with respect to the CAIR NOX allowances in the general account to include the change.

( 4) Objections concerning CAIR authorized account representative.

( i) Once a complete application for a general account under paragraph ( b)( 1) of this section has been submitted and received,

the Administrator will rely on the application unless and until a 72 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite superseding complete application for a general account under paragraph ( b)( 1) of this section is received by the Administrator.

( ii) Except as provided in paragraph ( b)( 3)( i) or ( ii) of this section, no objection or other communication submitted to the Administrator concerning the authorization, or any representation, action, inaction, or submission of the CAIR authorized account representative or any alternative CAIR authorized account representative for a general account shall affect any representation, action, inaction, or submission of the CAIR authorized account representative or any alternative CAIR authorized account representative or the finality of any decision or order by the Administrator under the CAIR NOX Annual Trading Program.

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

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

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

§ 96.152 Responsibilities of CAIR authorized account 73 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite representative.

Following the establishment of a CAIR NOX Allowance Tracking System account, all submissions to the Administrator pertaining to the account, including, but not limited to, submissions concerning the deduction or transfer of CAIR NOX allowances in the account, shall be made only by the CAIR authorized account representative for the account.

§ 96.153 Recordation of CAIR NOX allowance allocations.

( a) By January 1, 2007, the Administrator will record in the CAIR NOX source's compliance account the CAIR NOX allowances allocated for the CAIR NOX units at a source, as submitted by the permitting authority in accordance with § 96.141( a), for the control periods in 2009, 2010, 2011, 2012, 2013, and 2014.

( b) By January 1, 2010, the Administrator will record in the CAIR NOX source's compliance account the CAIR NOX allowances allocated for the CAIR NOX units at the source, as submitted by the permitting authority or as determined by the Administrator in accordance with § 96.141( b), for the control period in 2015.

( c) By January 1, 2011 and January 1 of each year thereafter, after the Administrator has made all deductions ( if any) from a CAIR NOX source's compliance account under § 96.154,

the Administrator will record in the CAIR NOX source's compliance account the CAIR NOX allowances allocated for the CAIR NOX units 74 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite at the source, as submitted by the permitting authority or determined by the Administrator in accordance with § 96.141( b),

for the control period in the sixth year after the year of the control period for which such deductions were or could have been made.

( d) By January 1, 2010 and January 1 of each year thereafter, the Administrator will record in the CAIR NOX source's compliance account the CAIR NOX allowances allocated for the CAIR NOX units at the source, as submitted by the permitting authority or determined by the Administrator in accordance with § 96.141( c), for the control period in the year immediately before the year of the applicable deadline for recordation under this paragraph.

( e) Serial numbers for allocated CAIR NOX allowances. When recording the allocation of CAIR NOX allowances for a CAIR NOX unit in a compliance account, the Administrator will assign each CAIR NOX allowance a unique identification number that will include digits identifying the year of the control period for which the CAIR NOX allowance is allocated.

§ 96.154 Compliance with CAIR NOX emissions limitation.

( a) Allowance transfer deadline. The CAIR NOX allowances are available to be deducted for compliance with a source's CAIR NOX emissions limitation for a control period in a given calendar year only if the CAIR NOX allowances: 75 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite ( 1) Were allocated for the control period in the year or a prior year;

( 2) Are held in the compliance account as of the allowance transfer deadline for the control period or are transferred into the compliance account by a CAIR NOX allowance transfer correctly submitted for recordation under § 96.160 by the allowance transfer deadline for the control period; and ( 3) Are not necessary for deductions for excess emissions for a prior control period under paragraph ( d) of this section.

( b) Deductions for compliance. Following the recordation, in accordance with § 96.161, of CAIR NOX allowance transfers submitted for recordation in a source's compliance account by the allowance transfer deadline for a control period, the Administrator will deduct from the compliance account CAIR NOX allowances available under paragraph ( a) of this section in order to determine whether the source meets the CAIR NOX emissions limitation for the control period, as follows:

( 1) Until the amount of CAIR NOX allowances deducted equals the number of tons of total nitrogen oxides emissions, determined in accordance with subpart HH of this part, from all CAIR NOX units at the source for the control period; or ( 2) Until no more CAIR NOX allowances available under paragraph ( a) of this section remain in the compliance account.

( c)( 1) Identification of CAIR NOX allowances by serial 76 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite number. The CAIR authorized account representative for a source's compliance account may request that specific CAIR NOX allowances, identified by serial number, in the compliance account be deducted for emissions or excess emissions for a control period in accordance with paragraph ( b) or ( d) of this section. Such request shall be submitted to the Administrator by the allowance transfer deadline for the control period and include, in a format prescribed by the Administrator, the identification of the CAIR NOX source and the appropriate serial numbers.

( 2) First in, first out. The Administrator will deduct CAIR NOX allowances under paragraph ( b) or ( d) of this section from the source's compliance account, in the absence of an identification or in the case of a partial identification of CAIR NOX allowances by serial number under paragraph ( c)( 1) of this section, on a first in, first out ( FIFO) accounting basis in the following order:

( i) Any CAIR NOX allowances that were allocated to the units at the source, in the order of recordation; and then ( ii) Any CAIR NOX allowances that were allocated to any unit and transferred and recorded in the compliance account pursuant to subpart GG of this part, in the order of recordation.

( d) Deductions for excess emissions.

( 1) After making the deductions for compliance under 77 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite paragraph ( b) of this section for a control period in a calendar year in which the CAIR NOX source has excess emissions, the Administrator will deduct from the source's compliance account an amount of CAIR NOX allowances, allocated for the control period in the immediately following calendar year, equal to 3 times the number of tons of the source's excess emissions.

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

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

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

( f) Administrator's action on submissions.

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

( 2) The Administrator may deduct CAIR NOX allowances from or transfer CAIR NOX allowances to a source's compliance account based on the information in the submissions, as adjusted under paragraph ( f)( 1) of this section. 78 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite § 96.155 Banking.

( a) CAIR NOX allowances may be banked for future use or transfer in a compliance account or a general account in accordance with paragraph ( b) of this section.

( b) Any CAIR NOX allowance that is held in a compliance account or a general account will remain in such account unless and until the CAIR NOX allowance is deducted or transferred under § 96.154, § 96.156, or subpart GG of this part.

§ 96.156 Account error.

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

§ 96.157 Closing of general accounts.

( a) The CAIR authorized account representative of a general account may submit to the Administrator a request to close the account, which shall include a correctly submitted allowance transfer under § 96.160 for any CAIR NOX allowances in the account to one or more other CAIR NOX Allowance Tracking System accounts.

( b) If a general account has no allowance transfers in or out of the account for a 12 month period or longer and does not 79 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite contain any CAIR NOX allowances, the Administrator may notify the CAIR authorized account representative for the account that the account will be closed following 20 business days after the notice is sent. The account will be closed after the 20 day period unless, before the end of the 20 day period, the Administrator receives a correctly submitted transfer of CAIR NOX allowances into the account under § 96.160 or a statement submitted by the CAIR authorized account representative demonstrating to the satisfaction of the Administrator good cause as to why the account should not be closed.

Subpart GG   CAIR NOX Allowance Transfers § 96.160 Submission of CAIR NOX allowance transfers.

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

( a) The account numbers for both the transferor and transferee accounts;

( b) The serial number of each CAIR NOX allowance that is in the transferor account and is to be transferred; and ( c) The name and signature of the CAIR authorized account representative of the transferor account and the date signed. 80 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite § 96.161 EPA recordation.

( a) Within 5 business days ( or longer as provided in paragraph ( b) of this section) of receiving a CAIR NOX allowance transfer, the Administrator will record a CAIR NOX allowance transfer by moving each CAIR NOX allowance from the transferor account to the transferee account as specified by the request,

provided that:

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

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

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

§ 96.162 Notification.

( a) Notification of recordation. Within 5 business days of recordation of a CAIR NOX allowance transfer under § 96.161, the 81 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite Administrator will notify the CAIR authorized account representatives of both the transferor and transferee accounts.

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

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

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

Subpart HH   Monitoring and Reporting § 96.170 General Requirements.

The owners and operators, and to the extent applicable, the CAIR designated representative, of a CAIR NOX unit, shall comply with the monitoring, recordkeeping, and reporting requirements as provided in this subpart and in subpart H of part 75 of this chapter. For purposes of complying with such requirements, the definitions in § 96.102 and in § 72.2 of this chapter shall apply, and the terms " affected unit," " designated representative," and " continuous emission monitoring system" ( or " CEMS") in part 75 of this chapter shall be deemed to refer to 82 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite the terms " CAIR NOX unit," " CAIR designated representative," and " continuous emission monitoring system" ( or " CEMS") respectively,

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

of this chapter shall comply with the same monitoring,

recordkeeping, and reporting requirements as a CAIR NOX unit.

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

( 1) Install all monitoring systems required under this subpart for monitoring NOX mass emissions and individual unit heat input ( including all systems required to monitor NOX emission rate, NOX concentration, stack gas moisture content,

stack gas flow rate, CO2 or O2 concentration, and fuel flow rate,

as applicable, in accordance with § § 75.71 and 75.72 of this chapter);

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

( b) Compliance deadlines. The owner or operator shall meet the monitoring system certification and other requirements of 83 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite paragraphs ( a)( 1) and ( 2) of this section on or before the following dates. The owner or operator shall record, report, and quality assure the data from the monitoring systems under paragraph ( a)( 1) of this section on and after the following dates.

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

2008.

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

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

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

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

( 4) Notwithstanding the dates in paragraphs ( b)( 1) and ( 2) 84 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite of this section, for the owner or operator of a unit for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under subpart II of this part, by the date specified in § 96.184( b).

( 5) Notwithstanding the dates in paragraphs ( b)( 1), ( 2), and ( 4) of this section and solely for purposes of § 96.106( c)( 3),

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

( c) Reporting data before initial certification. The owner or operator of a CAIR NOX unit that does not meet the applicable compliance date set forth in paragraph ( b) of this section for any monitoring system under paragraph ( a)( 1) of this section shall, for each such monitoring system, determine, record, and report maximum potential ( or, as appropriate, minimum potential)

values for NOX concentration, NOX emission rate, stack gas flow rate, stack gas moisture content, fuel flow rate, and any other parameters required to determine NOX mass emissions and heat input in accordance with § 75.31( b)( 2) or( c)( 3) of this chapter,

section 2.4 of appendix D to part 75 of this chapter, or section 2.5 of appendix E to part 75 of this chapter, as applicable.

( d) Prohibitions 85 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite ( 1) No owner or operator of a CAIR NOX unit shall use any alternative monitoring system, alternative reference method, or any other alternative to any requirement of this subpart without having obtained prior written approval in accordance with § 96.175.

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

( 3) No owner or operator of a CAIR NOX unit shall disrupt the continuous emission monitoring system, any portion thereof,

or any other approved emission monitoring method, and thereby avoid monitoring and recording NOX mass emissions discharged into the atmosphere, except for periods of recertification or periods when calibration, quality assurance testing, or maintenance is performed in accordance with the applicable provisions of this subpart and part 75 of this chapter.

( 4) No owner or operator of a CAIR NOX unit shall retire or permanently discontinue use of the continuous emission monitoring system, any component thereof, or any other approved monitoring system under this subpart, except under any one of the following circumstances: 86 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite ( i) During the period that the unit is covered by an exemption under § 96.105 that is in effect;

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

§ 96.171 Initial certification and recertification procedures.

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

( 1) The monitoring system has been previously certified in accordance with part 75 of this chapter; and ( 2) The applicable quality assurance and quality control requirements of § 75.21 of this chapter and appendix B, appendix D, and appendix E to part 75 of this chapter are fully met for the certified monitoring system described in paragraph ( a)( 1) of 87 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite this section.

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

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

( d) Except as provided in paragraph ( a) of this section, the owner or operator of a CAIR NOX unit shall comply with the following initial certification and recertification procedures for a continuous monitoring system ( i. e., a continuous emission monitoring system and an excepted monitoring system under appendices D and E to part 75 of this chapter) under § 96.170( a)( 1). The owner or operator of a unit that qualifies to use the low mass emissions excepted monitoring methodology under § 75.19 of this chapter or that qualifies to use an alternative monitoring system under subpart E of part 75 of this chapter 88 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite shall comply with the procedures in paragraph ( e) or ( f) of this section respectively.

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

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

Furthermore, whenever the owner or operator makes a replacement,

modification, or change to the flue gas handling system or the 89 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite unit's operation that may significantly change the stack flow or concentration profile, the owner or operator shall recertify each continuous emission monitoring system whose accuracy is potentially affected by the change, in accordance with § 75.20( b)

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

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

( i) Notification of certification. The CAIR designated 90 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite representative shall submit to the permitting authority, the appropriate EPA Regional Office, and the Administrator written notice of the dates of certification testing, in accordance with § 96.173.

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

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

of this section. Data measured and recorded by the provisionally certified monitoring system, in accordance with the requirements of part 75 of this chapter, will be considered valid qualityassured data ( retroactive to the date and time of provisional certification), provided that the permitting authority does not invalidate the provisional certification by issuing a notice of disapproval within 120 days of the date of receipt of the 91 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite complete certification application by the permitting authority.

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

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

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

( B) Incomplete application notice. If the certification application is not complete, then the permitting authority will issue a written notice of incompleteness that sets a reasonable date by which the CAIR designated representative must submit the additional information required to complete the certification application. If the CAIR designated representative does not 92 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite comply with the notice of incompleteness by the specified date,

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

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

( D) Audit decertification. The permitting authority or, for a CAIR NOX opt in unit or a unit for which a CAIR opt in permit 93 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under subpart II of this part,

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

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

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

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

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

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

( 2) For a disapproved NOX pollutant concentration monitor and disapproved flow monitor, respectively, the maximum potential concentration of NOX and the maximum potential flow rate, as defined in sections <IP_ADDRESS> and <IP_ADDRESS> of appendix A to part 75 of this chapter. 94 Section I 3/ 4/ 2005 DRAFT Do Not Quote or Cite ( 3) For a disapproved moisture monitoring system and disapproved diluent gas monitoring system, respectively, the minimum potential moisture percentage and either the maximum potential CO2 concentration or the minimum potential O2 concentration ( as applicable), as defined in sections <IP_ADDRESS>,

and <IP_ADDRESS>, and 2.1.5 of appendix A to part 75 of this chapter.

( 4) For a disapproved fuel flowmeter system, the maximum potential fuel flow rate, as defined in section <IP_ADDRESS> of appendix D to part 75 of this chapter.

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

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

and ( ii) of this section.

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