7/ 29/ 05 Draft  Do Not Quote or Cite 1 For the reasons set forth in the preamble, parts 51, 52, 72,

73, 74, 78, 96, and 97 of chapter 1 of title 40 of the Code of Federal Regulations are proposed to be amended as follows:

PART 51   [ Amended]

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

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

§ 51.123 [ Amended]

2. Section 51.123 is amended by:

a. In paragraph ( o)( 2)( ii)( B), replace the words " for the year after the year of" by the words " for the 4th year after the year of";

b. Add a new paragraph ( p);

c. In paragraph ( cc), revise the definition of " Electric generating unit" or " EGU" by:

i. In paragraph ( cc)( 1) of the definition, redesignate the paragraph as paragraph "( 1)( i)", replace the words " paragraph ( 2)" with the words " paragraph ( 3)", replace the words " since the start up" with the words " since the later of November 15, 1990 or the start up", and add a new paragraph ( 1)( ii); and ii. Revise paragraph ( 2) of the definition; and In paragraph ( cc)( 2), replace the words " at any time" with the words " at any time, since the later of November 15, 1990 or the start up of the 7/ 29/ 05 Draft  Do Not Quote or Cite 2 unit's combustion chamber,"; and iii. Add new paragraph ( cc)( 3); and d. In paragraph ( cc), add a new definition for " Solid waste incineration unit"; and e. Add a new paragraph ( ee) to read as follows:

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

( a) * * *

* * * * *

( p) Notwithstanding any other provision of this section, a State may adopt, and include in a SIP revision submitted by March 31, 2007, regulations relating to the Federal CAIR NOX Annual Trading Program under subparts AA through HH of part 97 of this chapter as follows:

( 1) The State may adopt, as CAIR NOX allowance allocation provisions replacing the provisions in subpart EE of part 97 of this chapter:

( i) Allocation provisions substantively identical to subpart EE of part 96 of this chapter, under which the permitting authority makes the allocations; or ( ii) Any methodology for allocating CAIR NOX allowances to individual sources under which the permitting authority makes the 7/ 29/ 05 Draft  Do Not Quote or Cite 3 allocations, provided that:

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

( B) The State's methodology must require that, for EGUs commencing operation before January 1, 2001, the permitting authority will determine, and notify the Administrator of, each unit's allocation of CAIR NOX allowances by September 30, 2007 for 2009, 2010, and 2011 and by October 31, 2008 and October 31 of each year thereafter for the 4th year after the year of the notification deadline. The State's methodology must also provide that, if the permitting authority fails to submit to the Administrator such allocations in accordance with such applicable deadline, 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, if the applicable control period is in 2015, the Administrator will assume that the allocations equal 83 percent of the allocations for the control period in 2014.

( C) The State's methodology must require that, for EGUs commencing operation on or after January 1, 2001, the permitting authority will determine, and notify the Administrator of, each unit's allocation of CAIR NOX allowances by October 31 of the 7/ 29/ 05 Draft  Do Not Quote or Cite 4 year for which the CAIR NOX allowances are allocated. The State's methodology must also provide that, if the permitting authority fails to submit to the Administrator such allocations in accordance with such applicable deadline, 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, if the applicable control period is in 2015, the Administrator will assume that the allocations equal 83 percent of the allocations for the control period in 2014 and except that any CAIR NOX unit that would otherwise be allocated CAIR NOX allowances under paragraph ( p)( 1)( ii)( B) of this section, as well as under this paragraph, for the applicable control period will be assumed to be allocated no CAIR NOX allowances under this paragraph for the applicable control period.

( 2) The State may adopt, as compliance supplement pool provisions replacing the provisions in § 97.143 of this chapter:

( i) Provisions for allocating the State's compliance supplement pool that are substantively identical to § 97.143 of this chapter, except that the permitting authority makes the allocations and the Administrator records the allocations made by the permitting authority; or ( ii) Provisions for allocating the State's compliance supplement pool that are substantively identical to § 96.143 of 7/ 29/ 05 Draft  Do Not Quote or Cite 5 this chapter.

( 3) The State may adopt CAIR opt in unit provisions as follows:

( i) Provisions for CAIR opt in units, including provisions for applications for CAIR opt in permits, approval of CAIR opt in permits, treatment of units as CAIR opt in units, and allocation and recordation of CAIR NOX allowances for CAIR opt in units,

that are substantively identical to subpart II of part 96 of this chapter and the provisions of subparts AA through HH that are applicable to CAIR opt in units or units for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR optin permit is not yet issued or denied;

( ii) Provisions for CAIR opt in units, including provisions for applications for CAIR opt in permits, approval of CAIR opt in permits, treatment of units as CAIR opt in units, and allocation and recordation of CAIR NOX allowances for CAIR opt in units,

that are substantively identical to subpart II of part 96 of this chapter and the provisions of subparts AA through HH that are applicable to CAIR opt in units or units for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR optin permit is not yet issued or denied, except that the provisions exclude § 96.188( b) of this chapter and the provisions of subpart II of part 96 of this chapter that apply only to units covered by § 96.188( b) of this chapter; or 7/ 29/ 05 Draft  Do Not Quote or Cite 6 ( iii) Provisions for applications for CAIR opt in units,

including provisions for CAIR opt in permits, approval of CAIR opt in permits, treatment of units as CAIR opt in units, and allocation and recordation of CAIR NOX allowances for CAIR opt in units, that are substantively identical to subpart II of part 96 of this chapter and the provisions of subparts AA through HH that are applicable to CAIR opt in units or units 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, except that the provisions exclude § 96.188( c) of this chapter and the provisions of subpart II of part 96 of this chapter that apply only to units covered by § 96.188( c) of this chapter.

( cc) * * *

* * * * *

Electric generating unit or EGU means:

( 1)( i) * * *

( ii) If a stationary, fossil fuel fired boiler or stationary, fossil fuel fired combustion turbine that, under paragraph ( 1)( i) of this definition, is not an electric generating unit begins to serve a generator with nameplate capacity of more than 25 MWe producing electricity for sale, the unit shall become an electric generating unit on the date on which it first serves such generator.

( 2) A unit that meets the requirements set forth in 7/ 29/ 05 Draft  Do Not Quote or Cite 7 paragraphs ( 2)( i)( A), ( ii)( A), or ( ii)( B) of this paragraph shall not be an electric generating unit:

( i)( A) A unit:

( 1) Qualifying as a cogeneration unit during the 12 month period starting on the date the unit first produces electricity and continuing to qualify as a cogeneration unit; and ( 2) Not serving at any time, since the later of November 15,

1990 or the start up of the unit's combustion chamber, a generator with nameplate capacity of more than 25 MWe supplying in any calendar year more than one third of the unit's potential electric output capacity or 219,000 MWh, whichever is greater, to any utility power distribution system for sale.

( B) If a unit qualifies as a cogeneration unit during the 12 month period starting on the date the unit first produces electricity and meets the requirements of paragraph ( 1)( i)( A) of this definition for at least one calendar year, but subsequently no longer meets all such requirements, the unit shall become an electric generating unit starting on the earlier of January 1 after the first calendar year during which the unit first no longer qualifies as a cogeneration unit or January 1 after the first calendar year during which the unit no longer meets the requirements of paragraph ( 1)( i)( A)( 2) of this definition.

( ii)( A) A unit commencing operation before January 1, 1985:

( 1) Qualifying as a solid waste incineration unit; and 7/ 29/ 05 Draft  Do Not Quote or Cite 8 ( 2) With an average annual fuel consumption of non fossil fuel for 1985 1987 exceeding 80 percent ( on a Btu basis) and an average annual fuel consumption of non fossil fuel for any 3 consecutive calendar years after 1990 exceeding 80 percent ( on a Btu basis).

( B) A unit commencing operation on or after January 1, 1985:

( 1) Qualifying as a solid waste incineration unit; and ( 2) With an average annual fuel consumption of non fossil fuel for the first 3 calendar years of operation exceeding 80 percent ( on a Btu basis) and an average annual fuel consumption of non fossil fuel for any 3 consecutive calendar years after 1990 exceeding 80 percent ( on a Btu basis).

( C) If a unit qualifies as a solid waste incineration unit and meets the requirements of paragraph ( 2)( ii)( A) or ( B) of this definition for at least 3 consecutive calendar years, but subsequently no longer meets all such requirements, the unit shall become an electric generating unit starting on the earlier of January 1 after the first calendar year during which the unit first no longer qualifies as a solid waste incineration unit or January 1 after the first 3 consecutive calendar years after 1990 for which the unit has an average annual fuel consumption of fossil fuel of 20 percent or more.

( 3)( i) For a solid waste incineration unit meeting the criteria in paragraph ( 1) or ( 2) of this definition and 7/ 29/ 05 Draft  Do Not Quote or Cite 9 commencing operation before January 1, 1985, the average annual fuel consumption of non fossil fuels during 1985 1987 did not exceed 80 percent and during any 3 consecutive calendar years after 1990 the average annual fuel consumption of non fossil fuels does not exceed 80 percent.

( ii) For a solid waste incineration unit meeting the criteria in paragraph ( 1) or ( 2) of this definition and commencing operation on or after January 1, 1985, the average annual fuel consumption of non fossil fuels for the first 3 calendar years of operation does not exceed 80 percent and during any 3 consecutive calendar years after 1990 the average annual fuel consumption of non fossil fuels does not exceed 80 percent.

* * * * *

Solid waste incineration unit means a stationary, fossil

fuelfired boiler or stationary, fossil fuel fired combustion turbine that is a " solid waste incineration unit" as defined in section 129( g)( 1) of the Clean Air Act.

* * * * *

( ee) Notwithstanding any other provision of this section, a State may adopt, and include in a SIP revision submitted by March 31, 2007, regulations relating to the Federal CAIR NOX Ozone Season Trading Program under subparts AAAA through HHHH of part 97 of this chapter as follows:

( 1) The State adopt, as applicability provisions replacing 7/ 29/ 05 Draft  Do Not Quote or Cite 10 the provisions in § 97.304 of this chapter, provisions for applicability that are substantively identical to the provisions in § 96.304 of this chapter expanded to include all non EGUs subject to the State's emissions trading program approved under § 51.121( p).

( 2) The State may adopt, as CAIR NOX Ozone Season allowance allocation provisions replacing the provisions in subpart EEEE of part 97 of this chapter:

( i) Allocation provisions substantively identical to subpart EEEE of part 96 of this chapter, under which the permitting authority makes the allocations; or ( ii) Any methodology for allocating CAIR NOX Ozone Season allowances to individual sources under which the permitting authority makes the allocations, provided that:

( A) The State may provide for issuance of an amount of CAIR Ozone Season NOX allowances for an ozone season, in addition to the amount in the State's Ozone Season EGU NOX Budget for such ozone season, not exceeding the portion of the State's State trading program budget, under the State's emissions trading program approved under § 51.121( p), attributed to the non EGUs that the applicability provisions in § 96.304 of this chapter are expanded to include under paragraph ( ee)( 1) of this section.

( B) The State's methodology must not allow the State to allocate CAIR Ozone Season NOX allowances for an ozone season in 7/ 29/ 05 Draft  Do Not Quote or Cite 11 excess of the amount in the State's Ozone Season EGU NOX Budget for such ozone season plus any additional amount of CAIR Ozone Season NOX allowances issued under paragraph ( ee)( 2)( ii)( A) of this section for such ozone season.

( C) The State's methodology must require that, for EGUs commencing operation before January 1, 2001, the permitting authority will determine, and notify the Administrator of, each unit's allocation of CAIR NOX Ozone Season allowances by September 30, 2007 for 2009, 2010, and 2011 and by October 31,

2008 and October 31 of each year thereafter for the 4th year after the year of the notification deadline. The State's methodology must also provide that, if the permitting authority fails to submit to the Administrator such allocations in accordance with such applicable deadline, the Administrator will assume that the allocations of CAIR NOX Ozone Season allowances for the applicable control period are the same as for the control period that immediately precedes the applicable control period,

except that, if the applicable control period is in 2015, the Administrator will assume that the allocations equal 83 percent of the allocations for the control period in 2014.

( D) The State's methodology must require that, for EGUs commencing operation on or after January 1, 2001, the permitting authority will determine, and notify the Administrator of, each unit's allocation of CAIR NOX Ozone Season allowances by July 31 7/ 29/ 05 Draft  Do Not Quote or Cite 12 of the year for which the CAIR NOX Ozone Season allowances are allocated. The State's methodology must also provide that, if the permitting authority fails to submit to the Administrator such allocations in accordance with such applicable deadline, 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, if the applicable control period is in 2015, the Administrator will assume that the allocations equal 83 percent of the allocations for the control period in 2014 and except that any CAIR NOX unit that would otherwise be allocated CAIR NOX allowances under paragraph ( ee)( 2)( ii)( C) of this section, as well as under this paragraph, for the applicable control period will be assumed to be allocated no CAIR NOX allowances under this paragraph for the applicable control period.

( 3) The State may adopt CAIR opt in unit provisions as follows:

( i) Provisions for CAIR opt in units, including provisions for applications for CAIR opt in permits, approval of CAIR opt in permits, treatment of units as CAIR opt in units, and allocation and recordation of CAIR NOX Ozone Season allowances for CAIR optin units, that are substantively identical to subpart IIII of part 96 of this chapter and the provisions of subparts AAAA 7/ 29/ 05 Draft  Do Not Quote or Cite 13 through HHHH that are applicable to CAIR opt in units or units 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;

( ii) Provisions for CAIR opt in units, including provisions for applications for CAIR opt in permits, approval of CAIR opt in permits, treatment of units as CAIR opt in units, and allocation and recordation of CAIR NOX Ozone Season allowances for CAIR optin units, that are substantively identical to subpart IIII of part 96 of this chapter and the provisions of subparts AAAA through HHHH that are applicable to CAIR opt in units or units 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,

except that the provisions exclude § 96.388( b) of this chapter and the provisions of subpart IIII of part 96 of this chapter that apply only to units covered by § 96.388( b) of this chapter;

or ( iii) Provisions for applications for CAIR opt in units,

including provisions for CAIR opt in permits, approval of CAIR opt in permits, treatment of units as CAIR opt in units, and allocation and recordation of CAIR NOX allowances for CAIR opt in units, that are substantively identical to subpart IIII of part 96 of this chapter and the provisions of subparts AAAA through HHHH that are applicable to CAIR opt in units or units for which a CAIR opt in permit application is submitted and not withdrawn 7/ 29/ 05 Draft  Do Not Quote or Cite 14 and a CAIR opt in permit is not yet issued or denied, except that the provisions exclude § 96.388( c) of this chapter and the provisions of subpart IIII of part 96 of this chapter that apply only to units covered by § 96.388( c) of this chapter.

§ 51.124 [ Amended]

3. Section 51.124 is amended by:

a. In paragraph ( q), revise the definition of " Electric generating unit" or " EGU" by:

i. In paragraph ( q)( 1) of the definition, redesignate the paragraph as paragraph "( 1)( i)", replace the words " paragraph ( 2)" with the words " paragraph ( 3)", replace the words " since the start up" with the words " since the later of November 15, 1990 or the start up", and add a new paragraph ( 1)( ii); and ii. Revise paragraph ( 2) of the definition; and In paragraph ( cc)( 2), replace the words " at any time" with the words " at any time, since the later of November 15, 1990 or the start up of the unit's combustion chamber,"; and iii. Add new paragraph ( cc)( 3); and b. In paragraph ( q), add a new definition for " Solid waste incineration unit"; and c. Add a new paragraph ( r) to read as follows:

§ 51.124 Findings and requirements for submission of State implementation plan revisions relating to emissions of sulfur 7/ 29/ 05 Draft  Do Not Quote or Cite 15 dioxide pursuant to the Clean Air Interstate Rule.

( a) * * *

* * * * *

( q)

* * * * *

Electric generating unit or EGU means:

( 1)( i) * * *

( ii) If a stationary, fossil fuel fired boiler or stationary, fossil fuel fired combustion turbine that, under paragraph ( 1)( i) of this definition, is not an electric generating unit begins to serve a generator with nameplate capacity of more than 25 MWe producing electricity for sale, the unit shall become an electric generating unit on the date on which it first serves such generator.

( 2) A unit that meets the requirements set forth in paragraphs ( 2)( i)( A), ( ii)( A), or ( ii)( B) of this definition shall not be an electric generating unit:

( i)( A) A unit:

( 1) Qualifying as a cogeneration unit during the 12 month period starting on the date the unit first produces electricity and continuing to qualify as a cogeneration unit; and ( 2) Not serving at any time, since the later of November 15,

1990 or the start up of the unit's combustion chamber, a generator with nameplate capacity of more than 25 MWe supplying 7/ 29/ 05 Draft  Do Not Quote or Cite 16 in any calendar year more than one third of the unit's potential electric output capacity or 219,000 MWh, whichever is greater, to any utility power distribution system for sale.

( B) If a unit qualifies as a cogeneration unit during the 12 month period starting on the date the unit first produces electricity and meets the requirements of paragraph ( 1)( i)( A) of this definition for at least one calendar year but subsequently no longer meets all such requirements, the unit shall become an electric generating unit starting on the earlier of January 1 after the first calendar year during which the unit first no longer qualifies as a cogeneration unit or January 1 after the first calendar year during which the unit no longer meets the requirements of paragraph ( 1)( i)( A)( 2) of this definition.

( ii)( A) A unit commencing operation before January 1, 1985:

( 1) Qualifying as a solid waste incineration unit; and ( 2) With an average annual fuel consumption of non fossil fuel for 1985 1987 exceeding 80 percent ( on a Btu basis) and an average annual fuel consumption of non fossil fuel for any 3 consecutive calendar years after 1990 exceeding 80 percent ( on a Btu basis).

( B) A unit commencing operation on or after January 1, 1985:

( 1) Qualifying as a solid waste incineration unit; and ( 2) With an average annual fuel consumption of non fossil fuel for the first 3 calendar years of operation exceeding 80 7/ 29/ 05 Draft  Do Not Quote or Cite 17 percent ( on a Btu basis) and an average annual fuel consumption of non fossil fuel for any 3 consecutive calendar years after 1990 exceeding 80 percent ( on a Btu basis).

( C) If a unit qualifies as a solid waste incineration unit and meets the requirements of paragraph ( 2)( ii)( A) or ( B) of this definition for at least 3 consecutive calendar years, but subsequently no longer meets all such requirements, the unit shall become an electric generating unit starting on the earlier of January 1 after the first calendar year during which the unit first no longer qualifies as a solid waste incineration unit or January 1 after the first 3 consecutive calendar years after 1990 for which the unit has an average annual fuel consumption of fossil fuel of 20 percent or more.

( 3)( i) For a solid waste incineration unit meeting the criteria in paragraph ( 1) or ( 2) of this definition and commencing operation before January 1, 1985, the average annual fuel consumption of non fossil fuels during 1985 1987 did not exceed 80 percent and during any 3 consecutive calendar years after 1990 the average annual fuel consumption of non fossil fuels does not exceed 80 percent.

( ii) For a solid waste incineration unit meeting the criteria in paragraph ( 1) or ( 2) of this definition and commencing operation on or after January 1, 1985, the average annual fuel consumption of non fossil fuels for the first 3 calendar years of 7/ 29/ 05 Draft  Do Not Quote or Cite 18 operation does not exceed 80 percent and during any 3 consecutive calendar years after 1990 the average annual fuel consumption of non fossil fuels does not exceed 80 percent.

* * * * *

Solid waste incineration unit means a stationary, fossil

fuelfired boiler or stationary, fossil fuel fired combustion turbine that is a " solid waste incineration unit" as defined in section 129( g)( 1) of the Clean Air Act.

* * * * *

( r) Notwithstanding any other provision of this section, a State may adopt, and include in a SIP revision submitted by March 31, 2007, regulations relating to the Federal CAIR SO2 Trading Program under subparts AAA through HHH of part 97 of this chapter as follows. The State may adopt the following CAIR opt in unit provisions:

( 1) Provisions for CAIR opt in units, including provisions for applications for CAIR opt in permits, approval of CAIR opt in permits, treatment of units as CAIR opt in units, and allocation and recordation of CAIR SO2 allowances for CAIR opt in units,

that are substantively identical to subpart III of part 96 of this chapter and the provisions of subparts AAA through HHH that are applicable to CAIR opt in units or units 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; 7/ 29/ 05 Draft  Do Not Quote or Cite 19 ( 2) Provisions for CAIR opt in units, including provisions for applications for CAIR opt in permits, approval of CAIR opt in permits, treatment of units as CAIR opt in units, and allocation and recordation of CAIR SO2 allowances for CAIR opt in units,

that are substantively identical to subpart III of part 96 of this chapter and the provisions of subparts AAA through HHH that are applicable to CAIR opt in units or units 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, except that the provisions exclude § 96.288( b) of this chapter and the provisions of subpart III of part 96 of this chapter that apply only to units covered by § 96.288( b) of this chapter; or ( 3) Provisions for applications for CAIR opt in units,

including provisions for CAIR opt in permits, approval of CAIR opt in permits, treatment of units as CAIR opt in units, and allocation and recordation of CAIR SO2 allowances for CAIR opt in units, that are substantively identical to subpart III of part 96 of this chapter and the provisions of subparts AAA through HHH that are applicable to CAIR opt in units or units 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, except that the provisions exclude § 96.288( c) of this chapter and the provisions of subpart III of part 96 of this chapter that apply only to units covered by § 96.288( c) of this chapter. 7/ 29/ 05 Draft  Do Not Quote or Cite 20 PART 52 APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS 1. The authority citation for part 52 continues to read as follows:

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

Subpart A General Provisions 2. Subpart A is amended by adding § § 52.35 and 52.36 to read as follows:

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

The Federal CAIR NOX Annual Trading Program provisions of part 97 of this chapter constitute the Clean Air Interstate Rule Federal Implementation Plan provisions that relate to annual emissions of nitrogen oxides ( NOX). These provisions apply to sources in each State that is described in § 51.123( c)( 1) and ( 3)

of this chapter and is subject to a finding by the Administrator that the State failed to submit a State Implementation Plan ( SIP) to satisfy the requirements of section 110( a)( 2)( D)( I) of the Clean Air Act either for the PM2.5 NAAQS alone, or for both the PM2.5 NAAQS and the 8 hour ozone NAAQS. The Federal CAIR NOX Ozone Season Trading Program provisions of part 97 of this chapter constitute the Clean Air Interstate Rule Federal Implementation Plan provisions for emissions of nitrogen oxides 7/ 29/ 05 Draft  Do Not Quote or Cite 21 ( NOX) during the ozone season, as defined § 97.302 of this chapter. These provisions apply to sources in each State that is described in § 51.123( c)( 2) of this chapter and subject to a finding by the Administrator that the State failed to submit a State Implementation Plan ( SIP) to satisfy the requirements of section 110( a)( 2)( D)( I) of the Clean Air Act for the 8 hour ozone NAAQS alone. These provisions do not invalidate or otherwise affect the obligations of States, emissions sources, or other responsible entities with respect to all portions of plans approved or promulgated under this part, nor the obligations of States under the requirements of § § 51.123 and 51.125 of this chapter.

§ 52.36 What are the requirements of the Clean Air Interstate Rule Federal Implementation Plans relating to emissions of sulfur dioxide?

The Federal CAIR SO2 Trading Program provisions of part 97 of this chapter constitute the Clean Air Interstate Rule Federal Implementation Plan provisions for emissions of sulfur dioxide ( SO2). These provisions apply to sources in each State that is described in § 51.124( c) of this chapter and subject to an EPA finding that it failed to submit a State Implementation Plan ( SIP) to satisfy the requirements of section 110( a)( 2)( D)( I) of the Clean Air Act for the PM2.5 NAAQS. These provisions do not 7/ 29/ 05 Draft  Do Not Quote or Cite 22 invalidate or otherwise affect the obligations of States,

emissions sources, or other responsible entities with respect to all portions of plans approved or promulgated under this part,

nor the obligations of States under the requirements of § § 51.124 and 51.125 of this chapter.

Subpart B Alabama 3. Subpart B is amended by adding § § 52.54 and 52.55 to read as follows:

§ 52.54 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Alabama and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

§ 52.55 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide?

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Alabama and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart E Arkansas 7/ 29/ 05 Draft  Do Not Quote or Cite 23 4. Subpart E is amended by adding § § 52.184 and 52.185 to read as follows:

§ 52.184 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Arkansas and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

Subpart H Connecticut 5. Subpart H is amended by adding § § 52.386 to read as follows:

§ 52.386 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Connecticut and for which requirements are set forth under the Federal CAIR NOX Ozone Season Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart I Delaware 6. Subpart I is amended by adding § 52.440 to read as follows:

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

What are the FIP Regulations? The owner or operator of 7/ 29/ 05 Draft  Do Not Quote or Cite 24 each NOX source located within the State of Delaware and for which requirements are set forth under the Federal CAIR NOX Ozone Season Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart J District of Columbia 7. Subpart J is amended by adding § § 52.484 and 52.485 to read as follows:

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

What are the FIP Regulations? The owner or operator of each NOX source located within the District of Columbia and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

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

What are the FIP Regulations? The owner or operator of each SO2 source located within the District of Columbia and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart K Florida 8. Subpart K is amended by adding add § § 52.540 and 52.541 to 7/ 29/ 05 Draft  Do Not Quote or Cite 25 read as follows:

§ 52.540 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Florida and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

§ 52.541 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide?

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Florida and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart L Georgia 9. Subpart L is amended by adding § § 52.584 and 52.585 to read as follows:

§ 52.584 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Georgia and for which requirements are set forth under Federal CAIR NOX Annual and Ozone 7/ 29/ 05 Draft  Do Not Quote or Cite 26 Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

§ 52.585 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide?

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Georgia and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart O Illinois 10. Subpart O is amended by adding § § 52.745 and 52.746 to read as follows:

§ 52.745 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Illinois and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

§ 52.746 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide?

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Illinois and for which 7/ 29/ 05 Draft  Do Not Quote or Cite 27 requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart P Indiana 11. Subpart P is amended by adding § § 52.789 and 52.790 to read as follows:

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

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Indiana and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

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

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Indiana and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart Q Iowa 12. Subpart Q is amended by adding § 52.840 and 52.841 to read as follows: 7/ 29/ 05 Draft  Do Not Quote or Cite 28 § 52.840 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Iowa and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

§ 52.841 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide?

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Iowa and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart S Kentucky 14. Subpart S is amended by adding § § 52.940 and 52.941 to read as follows:

§ 52.940 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Kentucky and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must 7/ 29/ 05 Draft  Do Not Quote or Cite 29 comply with such applicable requirements.

§ 52.941 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide?

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Kentucky and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart T Louisiana 15. Subpart T is amended by adding § § 52.984 and 52.985 to read as follows:

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

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Louisiana and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

§ 52.985 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide?

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Louisiana and for which requirements are set forth under the Federal CAIR SO2 7/ 29/ 05 Draft  Do Not Quote or Cite 30 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart V Maryland 16. Subpart V is amended by adding § § 52.1084 and 52.1085 to read as follows:

§ 52.1084 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Maryland and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

§ 52.1085 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide?

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Maryland and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart W Massachusetts 17. Subpart W is amended by adding § § 52.1140 to read as follows:

§ 52.1140 Interstate pollutant transport provisions; What are the 7/ 29/ 05 Draft  Do Not Quote or Cite 31 requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Massachusetts and for which requirements are set forth under the Federal CAIR NOX Ozone Season Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart X Michigan 18. Subpart X is amended by adding § § 52.1186 and 52.1187 to read as follows:

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

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Michigan and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

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

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Michigan and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements. 7/ 29/ 05 Draft  Do Not Quote or Cite 32 Subpart Y Minnesota 19. Subpart Y is amended by adding § § 52.1240 and 52.1241 to read as follows:

§ 52.1240 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Minnesota and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

§ 52.1241 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide?

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Minnesota and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart Z Mississippi 20. Subpart Z is amended by adding § § 52.1284 and 52.1285 to read as follows:

§ 52.1284 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of 7/ 29/ 05 Draft  Do Not Quote or Cite 33 each NOX source located within the State of Mississippi and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

§ 52.1285 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide?

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Mississippi and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart AA Missouri 21. Subpart AA is amended by adding § § 52.1341 and 52.1342 to read as follows:

§ 52.1341 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Missouri and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

§ 52.1342 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide? 7/ 29/ 05 Draft  Do Not Quote or Cite 34 What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Missouri and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart FF New Jersey 22. Subpart FF is amended by adding § § 52.1584 to read as follows:

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

What are the FIP Regulations? The owner or operator of each NOX source located within the State of New Jersey and for which requirements are set forth under the Federal CAIR NOX Ozone Season Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart HH New York 23. Subpart HH is amended by adding § § 52.1684 and 52.1685 to read as follows:

§ 52.1684 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of New York and for which requirements are set forth under the Federal CAIR NOX Annual and 7/ 29/ 05 Draft  Do Not Quote or Cite 35 Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

§ 52.1685 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide?

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of New York and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart II North Carolina 24. Subpart II is amended by adding § § 52.1784 and 52.1785 to read as follows:

§ 52.1784 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of North Carolina and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

§ 52.1785 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide?

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of North Carolina and for 7/ 29/ 05 Draft  Do Not Quote or Cite 36 which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart KK Ohio 25. Subpart KK is amended by adding § § 52.1891 and 52.1892 to read as follows:

§ 52.1891 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Ohio and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

§ 52.1892 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide?

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Ohio and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart NN Pennsylvania 26. Subpart NN is amended by adding § § 52.2040 and 52.2040 to read as follows: 7/ 29/ 05 Draft  Do Not Quote or Cite 37 § 52.2040 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Pennsylvania and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

§ 52.2041 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide?

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Pennsylvania and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart PP South Carolina 27. Subpart PP is amended by adding § § 52.2140 and 52.2141 to read as follows:

§ 52.2140 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of South Carolina and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must 7/ 29/ 05 Draft  Do Not Quote or Cite 38 comply with such applicable requirements.

§ 52.2141 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide?

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of South Carolina and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart RR Tennessee 28. Subpart RR is amended by adding § § 52.2240 and 52.2241 to read as follows:

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

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Tennessee and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

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

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Tennessee and for which requirements are set forth under the Federal CAIR SO2 7/ 29/ 05 Draft  Do Not Quote or Cite 39 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart SS Texas 29. Subpart SS is amended by adding § § 52.2283 and 52.2284 to read as follows:

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

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Texas and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

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

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Texas and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart VV Virginia 30. Subpart VV is amended by adding § § 52.2440 and 52.2441 to read as follows:

§ 52.2440 Interstate pollutant transport provisions; What are the 7/ 29/ 05 Draft  Do Not Quote or Cite 40 requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Virginia and for which requirements are set forth under the Federal CAIR NOX Annual and Seasonal Trading Programs in part 97 of this chapter must comply with such applicable requirements.

§ 52.2441 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide?

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Virginia and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart XX West Virginia 31. Subpart XX is amended by adding § § 52.2540 and 52.2541 to read as follows:

§ 52.2540 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of West Virginia and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements. 7/ 29/ 05 Draft  Do Not Quote or Cite 41 § 52.2541 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide?

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of West Virginia and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such applicable requirements.

Subpart YY Wisconsin 32. Subpart YY is amended by adding § § 52.2587 and 52.2587 to read as follows:

§ 52.2587 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of nitrogen oxides?

What are the FIP Regulations? The owner or operator of each NOX source located within the State of Wisconsin and for which requirements are set forth under the Federal CAIR NOX Annual and Ozone Season Trading Programs in part 97 of this chapter must comply with such applicable requirements.

§ 52.2588 Interstate pollutant transport provisions; What are the requirements for decreases in emissions of sulfur dioxide?

What are the FIP Regulations? The owner or operator of each SO2 source located within the State of Wisconsin and for which requirements are set forth under the Federal CAIR SO2 Trading Program in part 97 of this chapter must comply with such 7/ 29/ 05 Draft  Do Not Quote or Cite 42 applicable requirements.

PART 72   [ Amended]

1. The authority citation for Part 72 continues to read as follows:

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

§ 72.7 [ Amended]

2. Section 72.7 is amended by:

a. In paragraph ( f)( 4)( i), replace the words " become an affected unit under the Acid Rain Program and parts 70 and 71 of this chapter" with the words ", for purposes of applying parts 70 and 71 of this chapter, shall be treated as an affected unit under the Acid Rain Program"; and b. Revise paragraph ( f)( 2) to read as follows:

§ 72.7 New units exemption.

* * * * *

( f) * * *

( 2) For any period for which a unit is exempt under this section:

( i) For purposes of applying parts 70 and 71 of this chapter, the unit shall not be treated as an affected unit under the Acid Rain Program and shall continue to be subject to any other applicable requirements under parts 70 and 71 of this 7/ 29/ 05 Draft  Do Not Quote or Cite 43 chapter.

( ii) The unit shall not be eligible to be an opt in source under part 74 of chapter.

* * * * *

§ 72.8 [ Amended]

3. Section 72.8 is amended by:

a. In paragraph ( d)( 6)( i) introductory text, replace the words " become an affected unit under the Acid Rain Program and parts 70 and 71 of this chapter" with the words ", for purposes of applying parts 70 and 71 of this chapter, shall be treated as an affected unit under the Acid Rain Program"; and b. Revise paragraph ( d)( 4) to read as follows:

§ 72.8 Retired units exemption.

* * * * *

( d) * * *

( 4) For any period for which a unit is exempt under this section:

( i) For purposes of applying parts 70 and 71 of this chapter, the unit shall not be treated as an affected unit under the Acid Rain Program and shall continue to be subject to any other applicable requirements under parts 70 and 71 of this chapter.

( ii) The unit shall not be eligible to be an opt in source 7/ 29/ 05 Draft  Do Not Quote or Cite 44 under part 74 of chapter.

* * * * *

§ 72.20 [ Amended]

4. Section 72.20 is amended by, in paragraph ( b), replace the words " his or her actions" by the words " his or her representations, actions".

§ 72.22 [ Amended]

5. Section 72.22 is amended by, in paragraph ( b), replace the words " any action, representation, or failure to act" with the words " any representation, action, inaction, or submission"

whenever they appear.

§ 72.23 [ Amended]

6. Section 72.23 is amended by, in paragraphs ( a), ( b), and ( c)( 1), replace the words " submissions, actions, and inactions"

with the words " representations, actions, inactions, and submissions" whenever they appear.

§ 72.24 [ Amended]

7. Section 72.24 is amended by:

a. In paragraph ( a)( 6), replace the words " actions,

inactions, or submissions" with the words " representations,

actions, inactions, or submissions".

b. In paragraph ( a)( 9)( ii), replace the words " or , if such multiple" with the words ", except that, if such multiple". 7/ 29/ 05 Draft  Do Not Quote or Cite 45 § 72.25 [ Amended]

8. Section 72.25 is amended by, in paragraph ( b), replace the words " submission, action or inaction" with the words " representation, action, inaction, or submission" and replace the words " submission, action, or inaction" with the words " representation, action, inaction, or submission".

PART 73   [ Amended]

1. The authority citation for Part 73 continues to read as follows:

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

§ 73.31 [ Amended]

2. Section 73.31 is amended by, in paragraph ( c)( 1)( v),

replace the words " actions, inactions, or submissions" with the words " representations, actions, inactions, or submissions".

§ 73.33 [ Amended]

3. Section 73.33 is amended by:

a. In paragraph ( d)( 4), replace the words " action,

representation, or failure to act" with the words " representation, action, inaction, or submission" and replace the word " an action" with the words " a representation, action,

inaction, or submission".

b. In paragraph ( e), replace the word " actions" with the words " representations, actions, inactions, or submissions". 7/ 29/ 05 Draft  Do Not Quote or Cite 46 c. In paragraph ( f), replace the words " any submission to"

with the words " any representation, action, inaction, or submission to" and replace the words " the recordation of transfers submitted by" with the words " any representation,

action, inaction, or submission of".

PART 74   [ Amended]

1. The authority citation for Part 74 continues to read as follows:

Authority: 7601 and 7651 et seq.

§ 74.4 [ Amended]

2. Section 74.4( c) is removed.

PART 78   APPEAL PROCEDURES 1. The title of part 78 is revised to read as set forth above.

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

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

et seq.

§ 78.1 [ Amended]

3. Section 78.1 is amended by:

a. In paragraph ( b)( 8)( ii), replace the words " § 97.256" by the words " § 96.256".

b. Add new paragraphs ( b)( 10), ( b)( 11), and ( b)( 12) to read 7/ 29/ 05 Draft  Do Not Quote or Cite 47 as follows:

§ 78.1 Purpose and scope.

* * * * *

( b) * * *

( 10) Under subparts AA through HH of part 97 of this chapter,

( i) The decision on the allocation of CAIR NOX allowances under subpart EE of part 97 of this chapter.

( ii) The decision on the deduction of CAIR NOX allowances,

and the adjustment of the information in a submission and the decision on the deduction or transfer of CAIR NOX allowances based on the information as adjusted, under § 97.154 of this chapter;

( iii) The correction of an error in a CAIR NOX Allowance Tracking System account under § 97.156 of this chapter;

( iv) The decision on the transfer of CAIR NOX allowances under § 97.161 of this chapter;

( v) The finalization of control period emissions data,

including retroactive adjustment based on audit;

( vi) The approval or disapproval of a petition under § 97.175 of this chapter.

( 11) Under subparts AAA through HHH of part 97 of this chapter,

( i) The decision on the deduction of CAIR SO2 allowances, and the adjustment of the information in a submission and the 7/ 29/ 05 Draft  Do Not Quote or Cite 48 decision on the deduction or transfer of CAIR SO2 allowances based on the information as adjusted, under § 97.254 of this chapter;

( ii) The correction of an error in a CAIR SO2 Allowance Tracking System account under § 97.256 of this chapter;

( iii) The decision on the transfer of CAIR SO2 allowances under § 97.261 of this chapter;

( iv) The finalization of control period emissions data,

including retroactive adjustment based on audit;

( v) The approval or disapproval of a petition under § 97.275 of this chapter.

( 12) Under subparts AAAA through HHHH of part 97 of this chapter,

( i) The decision on the allocation of CAIR NOX Ozone Season allowances under subpart EEEE of part 97 of this chapter.

( ii) The decision on the deduction of CAIR NOX Ozone Season allowances, and the adjustment of the information in a submission and the decision on the deduction or transfer of CAIR NOX Ozone Season allowances based on the information as adjusted, under § 97.354 of this chapter;

( iii) The correction of an error in a CAIR NOX Ozone Season Allowance Tracking System account under § 97.356 of this chapter;

( iv) The decision on the transfer of CAIR NOX Ozone Season allowances under § 97.361;

( v) The finalization of control period emissions data, 7/ 29/ 05 Draft  Do Not Quote or Cite 49 including retroactive adjustment based on audit;

( vi) The approval or disapproval of a petition under § 97.375 of this chapter.

* * * * *

§ 78.3 [ Amended]

4. Section 78.3 is amended by:

a. In paragraph ( b)( 3)( i), replace the words " under paragraph ( a)( 4), ( 5), or ( 6) of this section" by the words " under paragraph ( a)( 4), ( 5), ( 6), ( 7), ( 8), or ( 9) of this section";

b. In paragraph ( d)( 3), replace the words " account certificate of representation submitted by a CAIR designated representative" by the words " certificate of representation submitted by a CAIR designated representative" and replace the words " or subparts AAAA through IIII of part 96 of this chapter",

the words " subparts AAAA through IIII of part 96 of this chapter,

or under part 97 of this chapter";

c. Add new paragraphs ( a)( 7), ( a)( 8), ( a)( 9), ( d)( 8),

( d)( 9), and ( d)( 10) to read as follows:

§ 78.3 Petition for administrative review and request for evidentiary hearing.

( a) * * *

( 7) The following persons may petition for administrative 7/ 29/ 05 Draft  Do Not Quote or Cite 50 review of a decision of the Administrator that is made under subparts AA through HH of part 97 of this chapter and that is appealable under § 78.1( a):

( i) The CAIR designated representative for a unit or source,

or the CAIR authorized account representative for any CAIR NOX Allowance Tracking System account, covered by the decision; or ( ii) Any interested person.

( 8) The following persons may petition for administrative review of a decision of the Administrator that is made under subparts AAA through HHH of part 97 and that is appealable under § 78.1( a):

( i) The CAIR designated representative for a unit or source,

or the CAIR authorized account representative for any CAIR SO2 Allowance Tracking System account, covered by the decision; or ( ii) Any interested person.

( 9) The following persons may petition for administrative review of a decision of the Administrator that is made under subparts AAAA through HHHH of part 97 and that is appealable under § 78.1( a):

( i) The CAIR designated representative for a unit or source,

or the CAIR authorized account representative for any CAIR Ozone Season NOX Allowance Tracking System account, covered by the decision; or ( ii) Any interested person. 7/ 29/ 05 Draft  Do Not Quote or Cite 51 * * * * *

( d) * * *

( 8) Any provision or requirement of subparts AA through HH of part 97 of this chapter, including the standard requirements under § 97.106 of this chapter and any emission monitoring or reporting requirements.

( 9) Any provision or requirement of subparts AAA through HHH of part 97 of this chapter, including the standard requirements under § 97.206 of this chapter and any emission monitoring or reporting requirements.

( 10) Any provision or requirement of subparts AAAA through HHHH of part 97 of this chapter, including the standard requirements under § 97.306 of this chapter and any emission monitoring or reporting requirements.

PART 96   NOX BUDGET TRADING PROGRAM AND CAIR NOX AND SO2 TRADING PROGRAMS FOR STATE IMPLEMENTATION PLANS 1. The title of part 96 is revised to read as set forth above.

2. Authority citation for Part 96 continues to read as follows:

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

§ 96.102 [ Amended] 7/ 29/ 05 Draft  Do Not Quote or Cite 52 3. Section 96.102 is amended by:

a. In the definition of " Alternate CAIR designated representative", add at the end the words " If the CAIR NOX source is also subject to the Hg Budget Trading Program, then this natural person shall be the same person as the alternate Hg designated representative under the Hg Budget Trading Program."

b. In the definition of " CAIR designated representative",

add at the end the words " If the CAIR NOX source is also subject to the Hg Budget Trading Program, then this natural person shall be the same person as the Hg designated representative under the Hg Budget Trading Program."

c. In the definition of " CAIR NOX allowance", replace the words " by the permitting authority under" with the words " by the permitting authority or the Administrator under", replace the words " § 96.188" with the words " § 96.188, or under subpart EE of part 97 or § 97.188 of this chapter,", and replace the words " § 51.123( o)( 1) or ( 2) of this chapter" with the words " § 51.123( o)( 1) or ( 2) of this chapter or subpart EE of part 97 or § 97.188 of this chapter";

d. In the definition of " CAIR NOX allowance deduction or deduct CAIR NOX allowances", add, after the words " compliance account", the words ", e. g.,";

e. In the definition of " CAIR NOX Annual Trading Program",

replace the words " § 51.123 of this chapter," with the words " § 7/ 29/ 05 Draft  Do Not Quote or Cite 53 51.123 of this chapter or established by the Administrator in accordance with subparts AA through II of part 97 of this chapter and § 52.35 of this chapter,";

f. In the definition of " CAIR NOX Ozone Season Trading Program", replace the words " § 51.123 of this chapter," with the words " § 51.123 of this chapter or established by the Administrator in accordance with subparts AAAA through IIII of part 97 of this chapter and § 52.35 of this chapter,";

g. In the definition of " CAIR SO2 Trading Program", replace the words " § 51.123 of this chapter," with the words " § 51.124 of this chapter or established by the Administrator in accordance with subparts AAA through III of part 97 of this chapter and § 52.36 of this chapter,";

h. In the definition of " Cogeneration unit", replace the words " calendar year after which" with the words " calendar year after the calendar year in which";

i. In the definition of " Commence commercial operation",

replace the words " on the date the unit commences" with the words " on the later of November 15, 1990 or the date the unit commences" in paragraphs ( 1)( i), ( 1)( ii), and ( 2);

j. In the definition of " Commence operation", revise paragraph ( 1), remove paragraph ( 2), replace in paragraphs ( 3)( i)

and ( 3)( ii) the words " in paragraph ( 3)" with the words " in paragraph ( 2)", replace in paragraph ( 3)( ii) the words " in 7/ 29/ 05 Draft  Do Not Quote or Cite 54 paragraph ( 1), ( 2), or ( 3)" with the words " in paragraph ( 1) or ( 2)", and redesignate paragraph ( 3) as paragraph ( 2);

k. In the definition of " Control period", replace the words " January 1 of a calendar year and" with the words " January 1 of a calendar year, except as provided in § 97.106( c)( 2), and";

l. In the definition of " Oil fired", replace the words " in a specified year." with the words " in a specified year and not qualifying as coal fired."; and m. Add a new definitions of " Hg Budget Trading Program" and " Solid waste incineration unit" and revise to read as follows:

§ 96.102 Definitions.

* * * * *

Commence operation means:

( 1) * * *

( i) For a unit that undergoes a physical change ( other than replacement of the unit by a unit at the same source) after the date the unit commences operation as defined in paragraph ( 1) of this definition, such date shall remain the unit's date of commencement of operation.

( ii) For a unit that is replaced by a unit at the same source ( e. g., repowered) after the date the unit commences operation as defined in paragraph ( 1) of this definition, the replacement unit shall be treated as a separate unit with a separate date for commencement of operation as defined in paragraph ( 1) or ( 2) of 7/ 29/ 05 Draft  Do Not Quote or Cite 55 this definition as appropriate.

* * * * *

Hg Budget Trading Program means a multi state Hg air pollution control and emission reduction program approved and administered by the Administrator in accordance subpart HHHH of part 60 of this chapter and § 60.24( h)( 6), or established by the Administrator, as a means of reduction national Hg emissions.

* * * * *

Solid waste incineration unit means a stationary, fossil

fuelfired boiler or stationary, fossil fuel fired combustion turbine that is a " solid waste incineration unit" as defined in section 129( g)( 1) of the Clean Air Act.

* * * * *

§ 96.103 [ Amended]

4. Section 96.103 is amended by revise to read as follows:

§ 96.103 Measurements, abbreviations, and acroynyms.

Btu British thermal unit.

CO2 carbon dioxide.

H2O water.

Hg mercury.

hr hour.

kW kilowatt electrical.

kWh kilowatt hour. 7/ 29/ 05 Draft  Do Not Quote or Cite 56 lb    pound.

mmBtu million Btu.

MWe megawatt electrical.

MWh megawatt hour.

NOX nitrogen oxides.

O2 oxygen.

ppm parts per million.

scfh standard cubic feet per hour.

SO2    sulfur dioxide.

yr    year.

§ 96.104 [ Amended]

5. Section 96.104 is amended by revise the section to read as follows:

a. In the introductory text, replace the words " The following units in a State" with the words " The following units,

except as provided in paragraph ( b) of this section, in a State";

b. In paragraph ( a), replace the words " paragraph ( b)" with the words " paragraph ( a)( 2)" and replace the words " since the start up" with the words " since the later of November 15, 1990 or the start up";

c. In paragraph ( b), replace the words " paragraph ( a)" with the words " paragraph ( a)( 1)", replace the words " at any time"

with the words " at any time, since the later of November 15, 1990 or the start up of the unit's combustion chamber,", and remove 7/ 29/ 05 Draft  Do Not Quote or Cite 57 the last sentence;

d. Designate the introductory text, paragraph ( a), and paragraph ( b) as paragraph ( a), paragraph ( 1), and paragraph ( 2)

respectively; and e. Add new paragraphs ( a)( 2)( i), ( a)( 2)( ii), and ( b) to read as follows:

§ 96.104 Applicability.

( a) * * *

( 1) * * *

( 2) * * *

( i) If a unit 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)( 1)

of this section starting on January 1 after the first calendar year during which the unit first no longer qualifies as a cogeneration unit.

( ii) If a cogeneration unit that is not a CAIR NOX unit under paragraph ( a)( 2) of this section for a calendar year continues to qualify as a cogeneration unit but serves a generator supplying in a subsequent calendar year more than one third of the unit's potential electric output capacity or 219,000 MWh, whichever is greater, to any utility power distribution system for sale, the unit shall be subject to paragraph ( a)( 1) of this section 7/ 29/ 05 Draft  Do Not Quote or Cite 58 starting on January 1 after the first such calendar year during which the unit serves such a generator.

( b) A solid waste incineration unit meeting the criteria in paragraph ( b)( 1) or ( b)( 2) of this section shall not be a CAIR NOX unit:

( 1) For a solid waste incineration unit commencing operation before January 1, 1985, the average annual fuel consumption of non fossil fuels during 1985 1987 exceeded 80 percent and during any 3 consecutive calendar years after 1990 the average annual fuel consumption of non fossil fuels exceeds 80 percent.

( 2) For a solid waste incineration unit commencing operation on or after January 1, 1985, the average annual fuel consumption of non fossil fuels for the first 3 calendar years of operation exceeds 80 percent and during any 3 consecutive calendar years after 1990 the average annual fuel consumption of non fossil fuels exceeds 80 percent.

( 3) If a unit qualifies as a solid waste incineration unit but subsequently no longer so qualifies, the unit shall be subject to paragraph ( a)( 1) of this section starting on January 1 after the first calendar year during which the unit first no longer qualifies as a solid waste incineration unit.

( 4) If a unit qualifies under paragraph ( b)( 1) or ( 2) of this section as a solid waste incineration unit that is not a CAIR NOX unit for 3 consecutive calendar years but has, during any 7/ 29/ 05 Draft  Do Not Quote or Cite 59 subsequent 3 consecutive calendar years after 1990, average annual fuel consumption of non fossil fuels less than or equal to 80 percent, the unit shall be subject to paragraph ( a)( 1) of this section starting on January 1 after the first such 3

calendaryear period during which the unit has such average annual fuel consumption of non fossil fuels.

§ 96.104 Applicability.

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

( 1) 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: any stationary, fossil

fuelfired boiler or stationary, fossil fuel fired combustion turbine serving at any time, since the later of November 15, 1990 or the start up of the unit's combustion chamber, a generator with nameplate capacity of more than 25 MWe producing electricity for sale.

( 2) If a stationary, fossil fuel fired boiler or stationary,

fossil fuel fired combustion turbine that, under paragraph ( a)( 1)

of this section, is not a CAIR NOX unit begins to serve a generator with nameplate capacity of more than 25 MWe producing electricity for sale, the unit shall become a CAIR NOX unit on the date on which it first serves such generator.

( b) The units in a State that meet the requirements set 7/ 29/ 05 Draft  Do Not Quote or Cite 60 forth in paragraph ( b)( 1)( i), ( 2)( i), or ( 2)( ii) of this section shall not be CAIR NOX units:

( 1)( i) Any unit:

( A) Qualifying as a cogeneration unit during the 12 month period starting on the date the unit first produces electricity and continuing to qualify as a cogeneration unit; and ( B) Not serving at any time, since the later of November 15,

1990 or the start up of the unit's combustion chamber, a generator with nameplate capacity of more than 25 MWe supplying in any calendar year more than one third of the unit's potential electric output capacity or 219,000 MWh, whichever is greater, to any utility power distribution system for sale.

( ii) If a unit qualifies as a cogeneration unit during the 12 month period starting on the date the unit first produces electricity and meets the requirements of paragraphs ( b)( 1)( i) of this section for at least one calendar year, but subsequently no longer meets all such requirements, the unit shall become a CAIR NOX unit starting on the earlier of January 1 after the first calendar year during which the unit first no longer qualifies as a cogeneration unit or January 1 after the first calendar year during which the unit no longer meets the requirements of paragraph ( b)( 1)( i)( B) of this section.

( 2)( i) Any unit commencing operation before January 1, 1985:

( A) Qualifying as a solid waste incineration unit; and 7/ 29/ 05 Draft  Do Not Quote or Cite 61 ( B) With an average annual fuel consumption of non fossil fuel for 1985 1987 exceeding 80 percent ( on a Btu basis) and an average annual fuel consumption of non fossil fuel for any 3 consecutive calendar years after 1990 exceeding 80 percent ( on a Btu basis).

( ii) Any unit commencing operation on or after January 1,

1985:

( A) Qualifying as a solid waste incineration unit; and ( B) With an average annual fuel consumption of non fossil fuel for the first 3 calendar years of operation exceeding 80 percent ( on a Btu basis) and an average annual fuel consumption of non fossil fuel for any 3 consecutive calendar years after 1990 exceeding 80 percent ( on a Btu basis).

( iii) If a unit qualifies as a solid waste incineration unit and meets the requirements of paragraph ( b)( 2)( i) or ( ii) of this section for at least 3 consecutive calendar years, but subsequently no longer meets all such requirements, the unit shall become a CAIR NOX unit starting on the earlier of January 1 after the first calendar year during which the unit first no longer qualifies as a solid waste incineration unit or January 1 after the first 3 consecutive calendar years after 1990 for which the unit has an average annual fuel consumption of fossil fuel of 20 percent or more.

§ 96.105 [ Amended] 7/ 29/ 05 Draft  Do Not Quote or Cite 62 6. Section 96.105 is amended by:

a. In paragraph ( a)( 1), replace the words " § 96.106( c)( 4)

through ( 8)" with the words " § 96.106( c)( 4) through ( 7)" and replace the words " subparts EE through GG" with the words " subparts BB and EE through GG"; and b. In paragraph ( b)( 3), replace the words " shall retain at the source" with the words " shall retain, at the source".

§ 96.106 [ Amended]

7. Section 96.106 is amended by:

a. In paragraph ( a)( 1)( i), replace the words " in § 97.121( a)

and ( b)" with the words " in § 97.121";

b. In paragraph ( c)( 2), replace the words " under paragraph ( c)( 1) of this section" with " under paragraph ( c)( 1) of this section for the control period" and replace the words " under § 97.170( b)( 1), ( 2), or ( 5)" with the words " under § 97.170( b)( 1),

( 2), or ( 5) and for each control period thereafter";

c. In paragraph ( c)( 7), replace the words " from a CAIR NOX unit's compliance account" with the words " from a CAIR NOX source's compliance account" and replace the words " CAIR permit of the source that includes the CAIR NOX unit" with the words " CAIR permit of the source"; and d. In paragraph ( d), remove paragraph ( 2), remove the designation of paragraph ( 1), redesignate paragraph ( i) as paragraph ( 1), and redesignate paragraph ( ii) as paragraph ( 2). 7/ 29/ 05 Draft  Do Not Quote or Cite 63 § 96.113 [ Amended]

8. Section 96.113 is amended by, in paragraph ( a)( 4)( iv),

replacing the words " where a customer" with the words " where a utility or industrial customer".

§ 96.142 [ Amended]

9. Section 96.142 is amended by:

a. In paragraph ( a)( 2)( ii)( C), replace the words " 3,414 Btu/ kWh" with the words " 3,413 Btu/ kWh";

b. In paragraph ( c)( 1), replace the words " 2009 through 2013" with the words " 2009 through 2014" and replace the words " in 2014" with the words " in 2015";

c. In paragraph ( c)( 2), replace the words " on or before July 1" with the words " on or before May 1"; and d. In paragraph ( c)( 4)( ii), replace the words " on or after July 1" with the words " on or after May 1".

§ 96.143 [ Amended]

10. Section 96.143 is amended by:

a. In paragraph ( d)( 3), replace the words "` Unit's allocation' is the number of CAIR NOX allowances" with the words "` Unit's allocation' is the amount of CAIR NOX allowances";

b. In paragraph ( d)( 4), replace the words " paragraph ( d)( 3)

or ( 4)" with the words " paragraph ( d)( 2) or ( 3)"; and c. In paragraph ( d)( 5), replace the words " paragraph ( d)( 5)" 7/ 29/ 05 Draft  Do Not Quote or Cite 64 with the words " paragraph ( d)( 4)".

§ 96.153 [ Amended]

11. Section 96.153 is amended by:

a. In paragraph ( a), replace the words " By December 1, 2006,

the Administrator" with the words " The Administrator"; and b. Revise paragraph ( c) to read as follows:

§ 96.153 Recordation of CAIR NOX allowance allocations.

* * * * *

( c) By December 1, 2009 and December 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 as determined by the Administrator in accordance with § 97.141( b), for the control period in the sixth year after the year of the applicable deadline for recordation under this paragraph.

* * * * *

§ 96.154 [ Amended]

12. Section 96.154 is amended by, in paragraph ( c)( 2)( ii),

replace the words " to any unit" with the words " to any entity".

§ 96.170 [ Amended]

13. Section 96.170 is amended by:

a. In paragraph ( b)( 5), replace the words " paragraphs 7/ 29/ 05 Draft  Do Not Quote or Cite 65 ( b)( 1), ( 2), and ( 4) of this section and solely for purposes of § 97.106( c)( 2), for the owner" with the words " paragraphs ( b)( 1)

and ( 2) of this section, for the owner"; and b. Add a new paragraph ( e) to read as follows:

§ 96.170 General Requirements.

* * * * *

( e) Long term cold storage. The owner or operator of a CAIR NOX unit is subject to the applicable provisions of part 75 of this chapter concerning units in long term cold storage.

§ 96.171 [ Amended]

14. Section 96.173 is amended by, in paragraph ( c), replace thee words " § 75.12, § 75.17, or subpart H of part 75" with the words " § 75.12 or § 75.17".

§ 96.173 [ Amended]

15. Section 96.173 is amended by remove the words ", except that if the unit is not subject to an Acid Rain emissions limitation, the notification is only required to be sent to the permitting authority".

§ 96.174 [ Amended]

16. Section 96.174 is amended by:

a. In paragraph ( d)( 1)( i), replace the words " 2008; or" with the words " 2008;";

b. In paragraph ( d)( 1)( ii), replace the words " 2008." with 7/ 29/ 05 Draft  Do Not Quote or Cite 66 the words " 2008;";

c. Add new paragraphs ( d)( 1)( iii) and ( iv); and d. In paragraph ( d)( 3), replace the words " or CAIR SO2 Trading Program," with the words ", CAIR SO2 Trading Program, or Hg Budget Trading Program," and replace the words " subparts F through H" with the words " subparts F through I" to read as follows:

§ 96.174 Recordkeeping and reporting.

* * * * *

( d) * * *

* * * * *

( iii) Notwithstanding paragraphs ( d)( 1)( i) and ( ii) of this section, for a unit for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under subpart II of this part, the calendar quarter corresponding to the date specified in § 97.184( b); and ( iv) Notwithstanding paragraphs ( d)( 1)( i) and ( ii) of this section, for a CAIR NOX opt in unit under subpart II of this part,

the calendar quarter corresponding to the date on which the CAIR NOX opt in unit enters the CAIR NOX Annual Trading Program as provided in § 97.184( g).

* * * * *

§ 96.184 [ Amended] 7/ 29/ 05 Draft  Do Not Quote or Cite 67 17. Section 96.184 is amended by:

a. In paragraph ( c)( 2), replace the words " for the control period under paragraph ( b)( 1)( ii) of this section and for the control period under paragraph ( b)( 2) of this section" with the words " for the control periods under paragraphs ( b)( 1)( ii) and ( 2) of this section";

b. In paragraph ( d)( 2), replace the words " for the control period under paragraph ( b)( 1)( ii) of this section and the control periods under paragraph ( b)( 2) of this section" with the words " for the control periods under paragraphs ( b)( 1)( ii) and ( 2) of this section"; and c. In paragraph ( d)( 3), replace the words " for such control period" with words " for such control periods".

§ 96.185 [ Amended]

18. Section 96.185 is amended by:

a. In paragraph ( b), replacing the words " under subpart FF or GG" with the words " under subpart FF, GG, or II"; and b. Adding a new paragraph ( c) to read as follows:

§ 96.185 CAIR opt in permit contents.

* * * * *

( c) The CAIR opt in permit shall be included, in a format specified by the permitting authority, in the CAIR permit for the source where the CAIR opt in unit is located. 7/ 29/ 05 Draft  Do Not Quote or Cite 68 § 96.186 [ Amended]

19. Section 96.186 is amended by, in paragraph ( b)( 2),

replace the words " equal in number to" with the words " equal in amount to".

§ 96.187 [ Amended]

20. Section 96.187 is amended by:

a. In paragraph ( b)( 2)( i), replace the words " equal in number to" with the words " equal in amount to"; and b. In paragraphs ( b)( 3)( ii) and ( b)( 3)( ii)( A), replace the words " number of CAIR NOX allowances" with the words " amount of CAIR NOX allowances".

§ 96.188 [ Amended]

21. Section 96.188 is amended by:

a. Revise the title of the section; and b. In paragraph ( d)( 2), replace the words " CAIR opt in unit"

with the words " CAIR NOX opt in unit" to read as follows:

§ 96.188 CAIR NOX allowance allocations to CAIR NOX opt in units.

* * * * *

§ 96.202 [ Amended]

22. Section 96.202 is amended by:

a. In the definition of " Alternative CAIR designated representative", add at the end the words " If the CAIR SO2 source is also subject to the Hg Budget Trading Program, then this 7/ 29/ 05 Draft  Do Not Quote or Cite 69 natural person shall be the same person as the alternate designated representative under the Hg Budget Trading Program."

b. In the definition of " CAIR designated representative",

add at the end the words " If the CAIR SO2 source is also subject to the Hg Budget Trading Program, then this natural person shall be the same person as the Hg designated representative under the Hg Budget Trading Program."

c. In the definition of " CAIR NOX Annual Trading Program",

replace the words " § 51.123 of this chapter," with the words " § 51.123 of this chapter or established by the Administrator in accordance with subparts AA through II of part 97 of this chapter and § 52.35 of this chapter,";

d. In the definition of " CAIR NOX Ozone Season Trading Program", replace the words " § 51.123 of this chapter," with the words " § 51.123 of this chapter or established by the Administrator in accordance with subparts AAAA through IIII of part 97 of this chapter and § 52.35 of this chapter,";

e. In the definition of " CAIR SO2 allowance", replace in the introductory text the words " under § 96.288," with the words " under § 96.288 or § 97.288 of this chapter,", designate the last sentence of the definition as paragraph ( 4), and, in paragraph ( 4), replace the words " Program or under the provisions of" with the words " Program, under provisions of" and replace the words " is approved" with the words " are approved" and replace the words 7/ 29/ 05 Draft  Do Not Quote or Cite 70 " of this chapter" with the words " of this chapter, or under § 97.288 of this chapter";

f. In the definition of " CAIR SO2 allowance deduction or deduct CAIR SO2 allowances", add, after the words " compliance account", the words ", e. g.,";

g. In the definition of " CAIR SO2 Trading Program", replace the words " § 51.123 of this chapter," with the words " § 51.124 of this chapter or established by the Administrator in accordance with subparts AAA through III of part 97 of this chapter and § 52.36 of this chapter,";

h. In the definition of " Cogeneration unit", replace the words " calendar year after which" with the words " calendar year after the calendar year in which";

i. In the definition of " Commence commercial operation",

replace the words " on the date the unit commences" with the words " on the later of November 15, 1990 or the date the unit commences" in paragraphs ( 1)( i), ( 1)( ii), and ( 2) and remove the words " or § 97.287( b)( 3)" in paragraph ( 3);

j. In the definition of " Commence operation", revise paragraph ( 1), remove paragraph ( 2), remove the words " or § 97.287( b)( 3)" in paragraph ( 3), replace the words " in paragraph ( 3)" with the words " in paragraph ( 2)" in paragraphs ( 3)( i) and ( 3)( ii), replace the words " in paragraph ( 1), ( 2), or ( 3)" with the words " in paragraph ( 1) or ( 2)", and redesignate paragraph 7/ 29/ 05 Draft  Do Not Quote or Cite 71 ( 3) as paragraph ( 2);

k. In the definition of " Control period", replace the words " January 1 of a calendar year and" with the words " January 1 of a calendar year, except as provided in § 97.206( c)( 2), and";

l. In the definition of " Useful thermal energy", replace in paragraph ( 2) the word " heat" with the word " heating"; and m. Add a new definitions of " Hg Budget Trading Program" and " Solid waste incineration unit" and revise to read as follows:

§ 96.202 Definitions.

* * * * *

Commence operation means:

( 1) * * *

( i) For a unit that undergoes a physical change ( other than replacement of the unit by a unit at the same source) after the date the unit commences operation as defined in paragraph ( 1) of this definition, such date shall remain the unit's date of commencement of operation.

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

* * * * * 7/ 29/ 05 Draft  Do Not Quote or Cite 72 Hg Budget Trading Program means a multi state Hg air pollution control and emission reduction program approved and administered by the Administrator in accordance subpart HHHH of part 60 of this chapter and § 60.24( h)( 6), or established by the Administrator, as a means of reduction national Hg emissions.

* * * * *

Solid waste incineration unit means a stationary, fossil

fuelfired boiler or stationary, fossil fuel fired combustion turbine that is a " solid waste incineration unit" as defined in section 129( g)( 1) of the Clean Air Act.

* * * * *

§ 96.203 [ Amended]

23. Section 96.203 is amended by revise to read as follows:

§ 96.203 Measurements, abbreviations, and acroynyms.

Btu British thermal unit.

CO2 carbon dioxide.

H2O water.

Hg mercury.

hr hour.

kW kilowatt electrical.

kWh kilowatt hour.

lb    pound.

mmBtu million Btu. 7/ 29/ 05 Draft  Do Not Quote or Cite 73 MWe megawatt electrical.

MWh megawatt hour.

NOX nitrogen oxides.

O2 oxygen.

ppm parts per million.

scfh standard cubic feet per hour.

SO2    sulfur dioxide.

yr    year.

§ 96.204 [ Amended]

24. Section 96.204 is amended by revise the section to read as follows:

a. In the introductory text, replace the words " The following units in a State" with the words " The following units,

except as provided in paragraph ( b) of this section, in a State";

b. In paragraph ( a), replace the words " paragraph ( b)" with the words " paragraph ( 2)" and replace the words " since the startup with the words " since the later of November 15, 1990 or the start up";

c. In paragraph ( b), replace the words " paragraph ( a)" with the words " paragraph ( a)( 1)", replace the words " at any time"

with the words " at any time, since the later of November 15, 1990 or the start up of the unit's combustion chamber,", and remove the last sentence; 7/ 29/ 05 Draft  Do Not Quote or Cite 74 d. Designate the introductory text, paragraph ( a), and paragraph ( b) as paragraph ( a), paragraph ( 1), and paragraph ( 2)

respectively; and e. Add new paragraphs ( a)( 2)( i), ( a)( 2)( ii), and ( b) to read as follows:

§ 96.204 Applicability.

( a) * * *

( 2) * * *

( i) If a unit 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)( 1)

of this section starting on January 1 after the first calendar year during which the unit first no longer qualifies as a cogeneration unit.

( ii) If a cogeneration unit that is not a CAIR SO2 unit under paragraph ( 2) of this section for a calendar year continues to qualify as a cogeneration unit but serves a generator supplying in a subsequent calendar year more than one third of the unit's potential electric output capacity or 219,000 MWh, whichever is greater, to any utility power distribution system for sale, the unit shall be subject to paragraph ( a)( 1) of this section starting on January 1 after the first such calendar year during 7/ 29/ 05 Draft  Do Not Quote or Cite 75 which the unit serves such a generator.

( b) A solid waste incineration unit meeting the criteria in paragraph ( b)( 1) or ( b)( 2) of this section shall not be a CAIR SO2 unit:

( 1) For a solid waste incineration unit commencing operation before January 1, 1985, the average annual fuel consumption of non fossil fuels during 1985 1987 exceeded 80 percent and during any 3 consecutive calendar years after 1990 the average annual fuel consumption of non fossil fuels exceeds 80 percent.

( 2) For a solid waste incineration unit commencing operation on or after January 1, 1985, the average annual fuel consumption of non fossil fuels for the first 3 calendar years of operation exceeds 80 percent and during any 3 consecutive calendar years after 1990 the average annual fuel consumption of non fossil fuels exceeds 80 percent.

( 3) If a unit qualifies as a solid waste incineration unit but subsequently no longer so qualifies, the unit shall be subject to paragraph ( a)( 1) of this section starting on January 1 after the first calendar year during which the unit first no longer qualifies as a solid waste incineration unit.

( 4) If a unit qualifies under paragraph ( b)( 1) or ( 2) of this section as a solid waste incineration unit that is not a CAIR SO2 unit for 3 consecutive calendar years but has, during any subsequent 3 consecutive calendar years after 1990, average 7/ 29/ 05 Draft  Do Not Quote or Cite 76 annual fuel consumption of non fossil fuels less than or equal to 80 percent, the unit shall be subject to paragraph ( a)( 1) of this section starting on January 1 after the first such 3

calendaryear period during which the unit has such average annual fuel consumption of non fossil fuels.

§ 96.204 Applicability.

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

( 1) The following units in a State shall be CAIR SO2 units,

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

fossilfuel fired boiler or stationary, fossil fuel fired combustion turbine serving at any time, since the later of November 15, 1990 or the start up of the unit's combustion chamber, a generator with nameplate capacity of more than 25 MWe producing electricity for sale.

( 2) If a stationary, fossil fuel fired boiler or stationary,

fossil fuel fired combustion turbine that, under paragraph ( a)( 1)

of this section, is not a CAIR SO2 unit begins to serve a generator with nameplate capacity of more than 25 MWe producing electricity for sale, the unit shall become a CAIR SO2 unit on the date on which it first serves such generator.

( b) The units in a State that meet the requirements set forth in paragraph ( b)( 1)( i), ( 2)( i), or ( 2)( ii) of this section 7/ 29/ 05 Draft  Do Not Quote or Cite 77 shall not be CAIR SO2 units:

( 1)( i) Any unit:

( A) Qualifying as a cogeneration unit during the 12 month period starting on the date the unit first produces electricity and continuing to qualify as a cogeneration unit; and ( B) Not serving at any time, since the later of November 15,

1990 or the start up of the unit's combustion chamber, a generator with nameplate capacity of more than 25 MWe supplying in any calendar year more than one third of the unit's potential electric output capacity or 219,000 MWh, whichever is greater, to any utility power distribution system for sale.

( ii) If a unit qualifies as a cogeneration unit during the 12 month period starting on the date the unit first produces electricity and meets the requirements of paragraphs ( b)( 1)( i) of this section for at least one calendar year, but subsequently no longer meets all such requirements, the unit shall become a CAIR SO2 unit starting on the earlier of January 1 after the first calendar year during which the unit first no longer qualifies as a cogeneration unit or January 1 after the first calendar year during which the unit no longer meets the requirements of paragraph ( b)( 1)( i)( B) of this section.

( 2)( i) Any unit commencing operation before January 1, 1985:

( A) Qualifying as a solid waste incineration unit; and ( B) With an average annual fuel consumption of non fossil 7/ 29/ 05 Draft  Do Not Quote or Cite 78 fuel for 1985 1987 exceeding 80 percent ( on a Btu basis) and an average annual fuel consumption of non fossil fuel for any 3 consecutive calendar years after 1990 exceeding 80 percent ( on a Btu basis).

( ii) Any unit commencing operation on or after January 1,

1985:

( A) Qualifying as a solid waste incineration unit; and ( B) With an average annual fuel consumption of non fossil fuel for the first 3 calendar years of operation exceeding 80 percent ( on a Btu basis) and an average annual fuel consumption of non fossil fuel for any 3 consecutive calendar years after 1990 exceeding 80 percent ( on a Btu basis).

( iii) If a unit qualifies as a solid waste incineration unit and meets the requirements of paragraph ( b)( 2)( i) or ( ii) of this section for at least 3 consecutive calendar years, but subsequently no longer meets all such requirements, the unit shall become a CAIR SO2 unit starting on the earlier of January 1 after the first calendar year during which the unit first no longer qualifies as a solid waste incineration unit or January 1 after the first 3 consecutive calendar years after 1990 for which the unit has an average annual fuel consumption of fossil fuel of 20 percent or more.

§ 96.205 [ Amended]

25. Section 96.205 is amended by: 7/ 29/ 05 Draft  Do Not Quote or Cite 79 a. In paragraph ( a)( 1), replace the words " § 96.206( c)( 4)

through ( 8)" with the words " § 96.206( c)( 4) through ( 7)" and replace the words " subparts FFF and GGG" with the words " subparts BBB, FFF, and GGG"; and b. In paragraph ( b)( 2), replace the words " shall retain at the source" with the words " shall retain, at the source".

§ 96.206 [ Amended]

26. Section 96.206 is amended by:

a. In paragraph ( a)( 1)( i), replace the words " in § 97.221( a)

and ( b)" with the words " in § 97.221";

b. In paragraph ( c)( 2), replace the words " under paragraph ( c)( 1) of this section" with " under paragraph ( c)( 1) of this section for the control period" and replace the words " under § 97.270( b)( 1), ( 2), or ( 5)" with the words " under § 97.270( b)( 1),

( 2), or ( 5) and for each control period thereafter";

c. In paragraph ( c)( 7), replace the words " from a CAIR SO2 unit's compliance account" with the words " from a CAIR SO2 source's compliance account" and replace the words " CAIR permit of the source that includes the CAIR SO2 unit" with the words " CAIR permit of the source"; and d. In paragraph ( d), remove paragraph ( 2), remove the designation of paragraph ( 1), redesignate paragraph ( i) as paragraph ( 1), and redesignate paragraph ( ii) as paragraph ( 2). 7/ 29/ 05 Draft  Do Not Quote or Cite 80 § 96.213 [ Amended]

27. Section 96.213 is amended by, in paragraph ( a)( 4)( iv),

replacing the words " where a customer" with the words " where a utility or industrial customer".

§ 96.220 [ Amended]

28. Section 96.220 is amended by, in paragraph ( b),

replacing the words " CAIR SO2 units at the source" with the words " CAIR SO2 units at the source covered by the CAIR permit".

§ 96.254 [ Amended]

29. Section 96.254 is amended by:

a. In paragraph ( a)( 3), replace the words " deduction for excess emissions" with the words " deductions for excess emissions"; and b. In paragraphs ( c)( 2)( ii), ( c)( 2)( iv), and ( c)( 2)( vi),

replace the words " to any unit" with the words " to any entity".

c. In paragraph ( d)( 1), replace the words " 3 times the number of tons of the source's excess emissions." with the words " the sum of the following amounts:" and revise to read as follows:

§ 96.254 Compliance with CAIR SO2 emissions limitation.

* * * * *

( d) * * *

( 1) * * * 7/ 29/ 05 Draft  Do Not Quote or Cite 81 ( i) The number of tons of the source's excess emissions minus, if the source is subject to an Acid Rain emissions limitation, the amount of the CAIR SO2 allowances required to be deducted under paragraph ( b)( 1)( ii) of this section; and ( ii) Two times:

( A) The number of tons of the source's excess emissions, if the source is not subject to an Acid Rain emissions limitation;

or ( B) The number of tons of the source's excess emissions minus the amount of the CAIR SO2 allowances required to be deducted under paragraph ( b)( 1)( ii) of this section, if the source is subject to an Acid Rain emissions limitation.

§ 96.261 [ Amended]

30. Section 96.261 is amended by:

a. In paragraph ( a)( 1), replace the words " § 96.260; and"

with the words " § 96.260;";

b. In paragraph ( a)( 2), replace the words " transfer." with the words " transfer; and"; and c. Add a new paragraph ( a)( 3) to read as follows:

§ 96.261 EPA recordation.

( a)* * *

( 3) The transfer is in accordance with the limitation on transfer under § 74.42 of this chapter and § 74.47( c) of this 7/ 29/ 05 Draft  Do Not Quote or Cite 82 chapter, as applicable.

§ 96.270 [ Amended]

31. Section 96.270 is amended by:

a. In paragraph ( b)( 5), replace the words " paragraphs ( b)( 1), ( 2), or ( 4) of this section and solely for purposes of § 97.206( c)( 2), for the owner" with the words " paragraphs ( b)( 1)

and ( 2) of this section, for the owner"; and b. Add a new paragraph ( e) to read as follows:

§ 96.270 General Requirements.

* * * * *

( e) Long term cold storage. The owner or operator of a CAIR SO2 unit is subject to the applicable provisions of part 75 of this chapter concerning units in long term cold storage.

§ 96.271 [ Amended]

32. Section 96.271 is amended by remove and reserve paragraph ( c).

§ 96.273 [ Amended]

33. Section 96.273 is amended by remove the words ", except that if the unit is not subject to an Acid Rain emissions limitation, the notification is only required to be sent to the permitting authority".

§ 96.274 [ Amended]

34. Section 96.274 is amended by: 7/ 29/ 05 Draft  Do Not Quote or Cite 83 a. In paragraph ( d)( 1)( i), replace the words " 2009; or" with the words " 2009;";

b. In paragraph ( d)( 1)( ii), replace the words " 2009." with the words " 2009;";

c. Add new paragraphs ( d)( 1)( iii) and ( iv); and d. In paragraph ( d)( 3), replace the words " or CAIR NOX Ozone Season Trading Program," with the words ", CAIR NOX Ozone Season Trading Program, or Hg Budget Trading Program," and replace the words " subparts F through H" with the words " subparts F through I" to read as follows:

§ 96.274 Recordkeeping and reporting.

* * * * *

( d) * * *

( 1) * * *

( iii) Notwithstanding paragraphs ( d)( 1)( i) and ( ii) of this section, for a unit for which a CAIR opt in permit application is submitted and not withdrawn and a CAIR opt in permit is not yet issued or denied under subpart III of this part, the calendar quarter corresponding to the date specified in § 97.284( b); and ( iv) Notwithstanding paragraphs ( d)( 1)( i) and ( ii) of this section, for a CAIR SO2 opt in unit under subpart III of this part, the calendar quarter corresponding to the date on which the CAIR SO2 opt in unit enters the CAIR SO2 Trading Program as 7/ 29/ 05 Draft  Do Not Quote or Cite 84 provided in § 97.284( g).

* * * * *

§ 96.283 [ Amended]

35. Section 96.283 is amended by:

a. In paragraph ( a)( 2)( iii), replace the words " CAIR opt in unit" with the words " CAIR SO2 opt in unit"; and b. In paragraph ( b)( 1), replace the words " or permitting authority's" with the words " or the permitting authority's".

§ 96.284 [ Amended]

36. Section 96.284 is amended by:

a. In paragraph ( c)( 2), replace the words " for the control period under paragraph ( b)( 1)( ii) of this section and the control period under paragraph ( b)( 2) of this section" with the words " for the control periods under paragraphs ( b)( 1)( ii) and ( 2) of this section";

b. In paragraph ( d)( 2), replace the words " for the control period under paragraph ( b)( 1)( ii) of this section and the control periods under paragraph ( b)( 2) of this section" with the words " for the control periods under paragraphs ( b)( 1)( ii) and ( 2) of this section"; and c. In paragraph ( d)( 3), replace the words " for such control period" with words " for such control periods".

§ 96.285 [ Amended] 7/ 29/ 05 Draft  Do Not Quote or Cite 85 37. Section 96.285 is amended by:

a. In paragraph ( b), replacing the words " under subpart FFF or GGG" with the words " under subpart FFF, GGG, or III"; and b. Adding a new paragraph ( c) to read as follows:

§ 96.285 CAIR opt in permit contents.

( a) * * *

* * * * *

( c) The CAIR opt in permit shall be included, in a format specified by the permitting authority, in the CAIR permit for the source where the CAIR opt in unit is located.

§ 96.286 [ Amended]

38. Section 96.286 is amended by, in paragraph ( b)( 2),

replace the words " equal in number to" with the words " equal in amount to".

§ 96.287 [ Amended]

39. Section 96.287 is amended by:

a. In paragraph ( b)( 2)( i), replace the words " equal in number to" with the words " equal in amount to"; and b. Remove paragraph ( b)( 3).

§ 96.288 [ Amended]

40. Section 96.288 is amended by:

a. Revise the title of the section; and b. In paragraph ( d)( 2), replace the words " CAIR opt in unit" 7/ 29/ 05 Draft  Do Not Quote or Cite 86 with the words " CAIR SO2 opt in unit" to read as follows:

§ 96.288 CAIR SO2 allowance allocations to CAIR SO2 opt in units.

* * * * *

§ 96.302 [ Amended]

41. Section 96.302 is amended by:

a. In the definition of " Allocate or allocation", replace with words " under subpart EEEE" with the words " under subpart EEEE of this part or § 51.123( aa)( 2)( iii), ( bb)( 2)( iii) or ( iv),

or ( dd)( 3) or ( 4)";

b. In the definition of " Alternate CAIR designated representative", add at the end the words " If the CAIR NOX Ozone Season source is also subject to the Hg Budget Trading Program,

then this natural person shall be the same person as the alternate Hg designated representative under the Hg Budget Trading Program."

c. In the definition of " CAIR designated representative",

add at the end the words " If the CAIR NOX Ozone Season source is also subject to the Hg Budget Trading Program, then this natural person shall be the same person as the Hg designated representative under the Hg Budget Trading Program."

d. In the definition of " CAIR NOX Annual Trading Program",

replace the words " § 51.123 of this chapter," with the words " § 51.123 of this chapter or established by the Administrator in 7/ 29/ 05 Draft  Do Not Quote or Cite 87 accordance with subparts AA through II of part 97 of this chapter and § 52.35 of this chapter,";

e. In the definition of " CAIR NOX Ozone Season allowance",

replace the words " by the permitting authority under" with the words " by the permitting authority or the Administrator under",

replace the words " § 51.123( aa)( 2)( iii)( A)" with the words " § 51.123( aa)( 2)( iii)", replace the words " or ( dd)( 3) or ( 4) of this chapter" with the words " or ( dd)( 3) or ( 4) of this chapter, or under subpart EEEE of part 97 or § 97.388 of this chapter",

replace the words " NOX Budget Trading Program" with the words " NOX Budget Trading Program in accordance with § 51.121( p) of this chapter", and replace the words " or ( dd) of this chapter" with the words " or ( dd) of this chapter or subpart EEEE of part 97 or § 97.388 of this chapter";

f. In the definition of " CAIR NOX Ozone Season allowance deduction or deduct CAIR NOX Ozone Season allowances", add, after the words " compliance account", the words ", e. g.,";

g. In the definition of " CAIR NOX Ozone Season Trading Program", replace the words " § 51.123 of this chapter," with the words " § 51.123 of this chapter or established by the Administrator in accordance with subparts AAAA through IIII of part 97 of this chapter and § 52.35 of this chapter,";

h. In the definition of " CAIR SO2 Trading Program", replace 7/ 29/ 05 Draft  Do Not Quote or Cite 88 the words " § 51.123 of this chapter," with the words " § 51.124 of this chapter or established by the Administrator in accordance with subparts AAA through III of part 97 of this chapter and § 52.36 of this chapter,";

i. In the definition of " Cogeneration unit", replace the words " calendar year after which" with the words " calendar year after the calendar year in which";

j. In the definition of " Commence commercial operation", in paragraphs ( 1)( i), ( 1)( ii), and ( 2), replace the words " on the date the unit commences" with the words " on the later of November 15, 1990 or the date the unit commences";

k. In the definition of " Commence operation", revise paragraphs ( 1) and ( 2);

l. In the definition of " Control period", replace the words " January 1 of a calendar year and" with the words " January 1 of a calendar year, except as provided in § 97.306( c)( 2), and";

m. In the definition of " Oil fired", replace the words " in a specified year." with the words " in a specified year and not qualifying as coal fired.";

n. In the definition of " Useful thermal energy", replace in paragraph ( 2) the word " heat" with the word " heating"; and o. Add a new definitions of " Hg Budget Trading Program" and " Solid waste incineration unit" and revise to read as follows: 7/ 29/ 05 Draft  Do Not Quote or Cite 89 § 96.302 Definitions.

* * * * *

Commence operation means:

( 1) * * *

( i) For a unit that undergoes a physical change ( other than replacement of the unit by a unit at the same source) after the date the unit commences operation as defined in paragraph ( 1) of this definition, such date shall remain the unit's date of commencement of operation.

( ii) For a unit that is replaced by a unit at the same source ( e. g., repowered) after the date the unit commences operation as defined in paragraph ( 1) of this definition, 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) or ( 2) of this definition as appropriate.

( 2) Notwithstanding paragraph ( 1) of this definition and except as provided in § 97.305, for a unit that is a CAIR NOX Ozone Season unit under § 97.304( d), but not on the later of November 15, 1990 or the date the unit commences operation as defined in paragraph ( 1) of this definition, and is not a unit under paragraph ( 3) of this definition, the unit's date for commencement of operation shall be the date on which the unit becomes a CAIR NOX Ozone Season unit under § 97.304( d). 7/ 29/ 05 Draft  Do Not Quote or Cite 90 ( 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.

* * * * *

Hg Budget Trading Program means a multi state Hg air pollution control and emission reduction program approved and administered by the Administrator in accordance subpart HHHH of part 60 of this chapter and § 60.24( h)( 6), or established by the Administrator, as a means of reduction national Hg emissions.

* * * * *

Solid waste incineration unit means a stationary, fossil

fuelfired boiler or stationary, fossil fuel fired combustion turbine that is a " solid waste incineration unit" as defined in section 129( g)( 1) of the Clean Air Act. 7/ 29/ 05 Draft  Do Not Quote or Cite 91 * * * * *

§ 96.303 [ Amended]

42. Section 96.303 is amended by revise to read as follows:

§ 96.303 Measurements, abbreviations, and acroynyms.

Btu British thermal unit.

CO2 carbon dioxide.

H2O water.

Hg mercury.

hr hour.

kW kilowatt electrical.

kWh kilowatt hour.

lb    pound.

mmBtu million Btu.

MWe megawatt electrical.

MWh megawatt hour.

NOX nitrogen oxides.

O2 oxygen.

ppm parts per million.

scfh standard cubic feet per hour.

SO2    sulfur dioxide.

yr    year.

§ 96.304 [ Amended]

43. Section 96.304 is amended by revise the section to read 7/ 29/ 05 Draft  Do Not Quote or Cite 92 as follows:

a. In the introductory text, replace the words " The following units in a State" with the words " The following units,

except as provided in paragraph ( b) of this section, in a State";

b. In paragraph ( a), replace the words " paragraph ( b)" with the words " paragraph ( 2)" and replace the words " since the startup with the words " since the later of November 15, 1990 or the start up";

c. In paragraph ( b), replace the words " paragraph ( a)" with the words " paragraph ( a)( 1)", replace the words " at any time"

with the words " at any time, since the later of November 15, 1990 or the start up of the unit's combustion chamber,", and remove the last sentence;

d. Designate the introductory text, paragraph ( a), and paragraph ( b) as paragraph ( a), paragraph ( 1), and paragraph ( 2)

respectively; and e. Add new paragraphs ( a)( 2)( i), ( a)( 2)( ii), and ( b) to read as follows:

§ 96.304 Applicability.

( a) * * *

( 2) * * *

( i) If a unit qualifies as a cogeneration unit during the 12 month period starting on the date the unit first produces 7/ 29/ 05 Draft  Do Not Quote or Cite 93 electricity but subsequently no longer qualifies as a cogeneration unit, the unit shall be subject to paragraph ( a)( 1)

of this section starting on January 1 after the first calendar year during which the unit first no longer qualifies as a cogeneration unit.

( ii) If a cogeneration unit that is not a CAIR NOX Ozone Season unit under paragraph ( 2) of this section for a calendar year continues to qualify as a cogeneration unit but serves a generator supplying in a subsequent calendar year more than one third of the unit's potential electric output capacity or 219,000 MWh, whichever is greater, to any utility power distribution system for sale, the unit shall be subject to paragraph ( a)( 1) of this section starting on January 1 after the first such calendar year during which the unit serves such a generator.

( b) A solid waste incineration unit meeting the criteria in paragraph ( b)( 1) or ( b)( 2) of this section shall not be a CAIR NOX Ozone Season unit:

( 1) For a solid waste incineration unit commencing operation before January 1, 1985, the average annual fuel consumption of non fossil fuels during 1985 1987 exceeded 80 percent and during any 3 consecutive calendar years after 1990 the average annual fuel consumption of non fossil fuels exceeds 80 percent. 7/ 29/ 05 Draft  Do Not Quote or Cite 94 ( 2) For a solid waste incineration unit commencing operation on or after January 1, 1985, the average annual fuel consumption of non fossil fuels for the first 3 calendar years of operation exceeds 80 percent and during any 3 consecutive calendar years after 1990 the average annual fuel consumption of non fossil fuels exceeds 80 percent.

( 3) If a unit qualifies as a solid waste incineration unit but subsequently no longer so qualifies, the unit shall be subject to paragraph ( a)( 1) of this section starting on January 1 after the first calendar year during which the unit first no longer qualifies as a solid waste incineration unit.

( 4) If a unit qualifies under paragraph ( b)( 1) or ( 2) of this section as a solid waste incineration unit that is not a CAIR NOX Ozone Season unit for 3 consecutive calendar years but has, during any subsequent 3 consecutive calendar years after 1990, average annual fuel consumption of non fossil fuels less than or equal to 80 percent, the unit shall be subject to paragraph ( a)( 1) of this section starting on January 1 after the first such 3 calendar year period during which the unit has such average annual fuel consumption of non fossil fuels.

§ 96.304 Applicability.

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

( 1) The following units in a State shall be CAIR NOX Ozone 7/ 29/ 05 Draft  Do Not Quote or Cite 95 Season units, and any source that includes one or more such units shall be a CAIR NOX Ozone Season source, subject to the requirements of this subpart and subparts BBBB through HHHH of this part: any stationary, fossil fuel fired boiler or stationary, fossil fuel fired combustion turbine serving at any time, since the later of November 15, 1990 or the start up of the unit's combustion chamber, a generator with nameplate capacity of more than 25 MWe producing electricity for sale.

( 2) If a stationary, fossil fuel fired boiler or stationary,

fossil fuel fired combustion turbine that, under paragraph ( a)( 1)

of this section, is not a CAIR NOX Ozone Season unit begins to serve a generator with nameplate capacity of more than 25 MWe producing electricity for sale, the unit shall become a CAIR NOX Ozone Season unit on the date on which it first serves such generator.

( b) The units in a State that meet the requirements set forth in paragraph ( b)( 1)( i), ( 2)( i), or ( 2)( ii) of this section shall not be CAIR NOX Ozone Season units:

( 1)( i) Any unit:

( A) Qualifying as a cogeneration unit during the 12 month period starting on the date the unit first produces electricity and continuing to qualify as a cogeneration unit; and ( B) Not serving at any time, since the later of November 15, 7/ 29/ 05 Draft  Do Not Quote or Cite 96 1990 or the start up of the unit's combustion chamber, a generator with nameplate capacity of more than 25 MWe supplying in any calendar year more than one third of the unit's potential electric output capacity or 219,000 MWh, whichever is greater, to any utility power distribution system for sale.

( ii) If a unit qualifies as a cogeneration unit during the 12 month period starting on the date the unit first produces electricity and meets the requirements of paragraphs ( b)( 1)( i) of this section for at least one calendar year, but subsequently no longer meets all such requirements, the unit shall become a CAIR NOX Ozone Season unit starting on the earlier of January 1 after the first calendar year during which the unit first no longer qualifies as a cogeneration unit or January 1 after the first calendar year during which the unit no longer meets the requirements of paragraph ( b)( 1)( i)( B) of this section.

( 2)( i) Any unit commencing operation before January 1, 1985:

( A) Qualifying as a solid waste incineration unit; and ( B) With an average annual fuel consumption of non fossil fuel for 1985 1987 exceeding 80 percent ( on a Btu basis) and an average annual fuel consumption of non fossil fuel for any 3 consecutive calendar years after 1990 exceeding 80 percent ( on a Btu basis).

( ii) Any unit commencing operation on or after January 1, 7/ 29/ 05 Draft  Do Not Quote or Cite 97 1985:

( A) Qualifying as a solid waste incineration unit; and ( B) With an average annual fuel consumption of non fossil fuel for the first 3 calendar years of operation exceeding 80 percent ( on a Btu basis) and an average annual fuel consumption of non fossil fuel for any 3 consecutive calendar years after 1990 exceeding 80 percent ( on a Btu basis).

( iii) If a unit qualifies as a solid waste incineration unit and meets the requirements of paragraph ( b)( 2)( i) or ( ii) of this section for at least 3 consecutive calendar years, but subsequently no longer meets all such requirements, the unit shall become a CAIR NOX Ozone Season unit starting on the earlier of January 1 after the first calendar year during which the unit first no longer qualifies as a solid waste incineration unit or January 1 after the first 3 consecutive calendar years after 1990 for which the unit has an average annual fuel consumption of fossil fuel of 20 percent or more.

§ 96.305 [ Amended]

44. Section 96.305 is amended by:

a. In paragraph ( a)( 1), replace the words " § 96.306( c)( 4)

through ( 8)" with the words " § 96.306( c)( 4) through ( 7)" and replace the words " subparts EEEE through GGGG" with the words " subparts BBBB and EEEE through GGGG"; and 7/ 29/ 05 Draft  Do Not Quote or Cite 98 b. In paragraph ( b)( 3), replace the words " shall retain at the source" with the words " shall retain, at the source".

§ 96.306 [ Amended]

45. Section 96.306 is amended by:

a. In paragraph ( a)( 1)( i), replace the words " in § 97.321( a)

and ( b)" with the words " in § 97.321";

b. In paragraph ( c)( 2), replace the words " under paragraph ( c)( 1) of this section" with " under paragraph ( c)( 1) of this section for the control period" and replace the words " under § 97.370( b)( 1), ( 2), ( 3), or ( 7)" with the words " under § 97.370( b)( 1), ( 2), ( 3), or ( 7) and for each control period thereafter";

c. In paragraph ( c)( 7), replace the words " from a CAIR NOX Ozone Season unit's compliance account" with the words " from a CAIR NOX Ozone Season source's compliance account" and replace the words " CAIR permit of the source that includes the CAIR NOX Ozone Season unit" with the words " CAIR permit of the source"; and d. In paragraph ( d), remove paragraph ( 2), remove the designation of paragraph ( 1), redesignate paragraph ( i) as paragraph ( 1), and redesignate paragraph ( ii) as paragraph ( 2).

§ 96.313 [ Amended]

46. Section 96.313 is amended by, in paragraph ( a)( 4)( iv),

replacing the words " where a customer" with the words " where a 7/ 29/ 05 Draft  Do Not Quote or Cite 99 utility or industrial customer".

§ 96.342 [ Amended]

47. Section 96.342 is amended by:

a. In paragraph ( a)( 2)( i), replace the words " during a calendar year" by the words " during a control period in a calendar year";

b. In paragraph ( a)( 2)( ii)( C), replace the words " 3,414 Btu/ kWh" with the words " 3,413 Btu/ kWh";

c. In paragraph ( c)( 1), replace the words " 2009 through 2013" with the words " 2009 through 2014" and replace the words " in 2014" with the words " in 2015";

d. In paragraph ( c)( 2), replace the words " on or before April 1" with the words " on or before February 1"; and e. In paragraph ( c)( 4)( ii), replace the words " on or after April 1" with the words " on or after February 1".

§ 96.353 [ Amended]

48. Section 96.353 is amended by:

a. In paragraph ( a), replace the words " By December 1, 2006,

the Administrator" with the words " The Administrator"; and b. Revise paragraph ( c) to read as follows:

§ 96.353 Recordation of CAIR NOX Ozone Season allowance allocations.

* * * * * 7/ 29/ 05 Draft  Do Not Quote or Cite 100 ( c) By December 1, 2009 and December 1 of each year thereafter, the Administrator will record in the CAIR NOX Ozone Season source's compliance account the CAIR NOX Ozone Season allowances allocated for the CAIR NOX Ozone Season units at the source, as submitted by the permitting authority or as determined by the Administrator in accordance with § 97.341( b), for the control period in the sixth year after the year of the applicable deadline for recordation under this paragraph.

* * * * *

§ 96.354 [ Amended]

49. Section 96.354 is amended by, in paragraph ( c)( 2)( ii),

replace the words " to any unit" with the words " to any entity".

§ 96.370 [ Amended]

50. Section 96.370 is amended by a. In paragraph ( b)( 7), replace the words " paragraphs ( b)( 1), ( 2), and ( 3) of this section and solely for purposes of § 97.206( c)( 2), for the owner" with the words " paragraphs ( b)( 1),

( 2), and ( 3) of this section, for the owner" and replace the words " CAIR NOX Ozone Season opt in unit" with the words " CAIR NOX Ozone Season opt in unit under subpart IIII of this part"; and b. Add a new paragraph ( e) to read as follows:

§ 96.370 General Requirements.

* * * * * 7/ 29/ 05 Draft  Do Not Quote or Cite 101 ( e) Long term cold storage. The owner or operator of a CAIR NOX Ozone Season unit is subject to the applicable provisions of part 75 of this chapter concerning units in long term cold storage.

§ 96.371 [ Amended]

51. Section 96.373 is amended by, in paragraph ( c), replace thee words " § 75.12, § 75.17, or subpart H of part 75" with the words " § 75.12 or § 75.17".

§ 96.373 [ Amended]

52. Section 96.373 is amended by remove the words ", except that if the unit is not subject to an Acid Rain emissions limitation, the notification is only required to be sent to the permitting authority".

§ 96.374 [ Amended]

53. Section 96.374 is amended by:

a. In paragraph ( d)( 1)( i), replace the words " 2008; or" with the words " 2008.";

b. In paragraph ( d)( 2)( i)( A), replace the words " 2008;" with the words " 2008.";

c. Add new paragraphs ( d)( 1)( iii) and ( iv) and ( d)( 2)( iii)

and ( iv); and d. In paragraph ( d)( 3), replace the words " or CAIR SO2 Trading Program," with the words ", CAIR SO2 Trading Program, or 7/ 29/ 05 Draft  Do Not Quote or Cite 102 Hg Budget Trading Program," and replace the words " subparts F through H" with the words " subparts F through I" to read as follows:

§ 96.374 Recordkeeping and reporting.

* * * * *

( d) * * *

( 1) * * *