each year. This will ensure that the State permitting authority can
keep track, for each control period in the future, of which units are
seeking new-unit-set-aside allowances for that control period. These
submission deadlines will give the State permitting authorities more
time to process (which may include, when appropriate, opportunity for
public comment) the requests in time to submit the allocations to the
Administrator for recordation by December 1.
    In addition, EPA proposes to adopt technical changes to the
provisions for recordation of allowance allocations. For example, the
current provisions require the Administrator to record the initial
allocations for 2010-2014 by December 1, 2006. Because State Plans were
not due until November 17, 2006, EPA cannot review and approve all
State plans in time to record allowance allocations in those plans by
December 1, 2006, which date EPA proposes to change to December 1,
2007. Further, the current provisions also require the recordation of
allocations for subsequent years to occur only after completion of the
end-of-year compliance determination process for a previous year.
Because of the need to finalize emissions data for a year before the
compliance determination process for that year can be completed, the
current provisions may delay recordation for a number of months.
However, as a matter of logic, there is no necessary connection between
one year's compliance determination and the future year's allocation
recordation. Consequently, EPA proposes to remove the connection made
in the current provisions and is setting an independent deadline
(December 1) for allocation recordation, which will result in
recordation several months earlier than under the current provisions.
    Further, EPA proposes technical changes to the provisions referring
to when an allowance transfer by the owner of an allowance to another
allowance tracking system account is ``correctly submitted.'' The
changes would clarify that a ``correctly submitted'' allowance transfer
is one that references allowances that both: Were in the owner's
allowance tracking system account when the allowance transfer form was
submitted to the Administrator; and continue to be in such account when
the allowance transfer form is processed by the Administrator.
    In addition, EPA proposes to revise the provisions for deducting
allowances to determine compliance with the allowance-holding
requirement under the trading programs. The proposed revisions would
not change the requirements that an allowance usable for compliance: Be
allocated for the year, or a year before the year, for which compliance
is being determined; and be in or covered by a proper request for
transfer into the source's compliance account by the allowance transfer
deadline. However, the statement indicating that the allowance must
also not be necessary to account for excess emissions for a prior year
would be removed because it is confusing and inconsistent with the
compliance procedures that EPA has been using in its ongoing cap-and-
trade programs (i.e., the Acid Rain Program and the NOX
Budget Trading Program).
    In addition, EPA proposes to revise certain provisions concerning
the use of substitute data when the owner or operator of a unit adds a
new stack or flue and fails to meet the deadline for monitoring
certification. EPA proposes to remove procedures that would seem to
allow for substitute data other than data reflecting maximum potential
emissions. This is proposed because EPA believes that the removed
provisions would actually still result in the use of data reflecting
maximum potential emissions.
    Further, EPA proposes to remove a provision that separately
requires units to monitor heat input. The provision is unnecessary
because heat input monitoring is already explicitly required in the
monitoring provisions in Sec.  60.4170.
    A few changes are proposed for some other provisions (e.g.,
revising the definitions of ``CAIR NOX Trading Program,''
``CAIR NOX Ozone Season Trading Program,'' and ``CAIR
SO2 Trading Program'' to be consistent with the definitions
of these terms in the CAIR trading rules) of the State model trading
rule. These other changes are similarly technical or clarifying in
nature. All of the above-proposed changes are consistent with the
analogous provisions in the proposed Federal Hg trading program.

V. Proposed Revisions of the Acid Rain Program Regulations

    A few changes are proposed for the Acid Rain Program regulations.
EPA proposes to revise the provisions concerning alternate designated
representatives in order to simplify the provisions. Specifically, EPA
proposes to remove 40 CFR 72.22(e), which allows in certain limited
circumstances the appointment of two alternate designated
representatives, rather than the customary one alternate designated
representative, for an affected source under the Acid Rain Program.
This option has rarely been used: Out of the approximately 1,500
affected plants currently in the program, only 17 currently have two
alternate designated representatives. As discussed above in Section IV
of this preamble, the Acid Rain Program regulations already allow a
designated representative or alternate designated representative to use
agents to perform online many of the same tasks that a second alternate
designated representative can perform under the existing Sec.
72.22(e). Since Sec.  72.22(e) seems to be unnecessary and is rarely
used, EPA proposes to remove it in order to simplify the provisions
applicable to alternate designated representatives.
    Further, as discussed above in Section IV of this preamble, EPA
proposes to revise the appeal provisions of 40 CFR part 78 to apply to
the appeals procedures to final actions of the Administrator under the
State Hg trading program and the Federal Hg trading program, just as
these provisions already apply to final Administrator actions under the
CAIR trading programs. 40 CFR part 78 would be revised to refer
specifically, where appropriate, to the Hg trading programs in the same
way as 40 CFR part 78 currently refers specifically, where appropriate,
to the CAIR trading programs.

VI. Units Subject to the CAMR Federal Plan and New Source Performance
Standards

    This section describes the relationship between the Federal Plan
and the NSPS finalized under CAMR in

terms of applicability and Hg emission limits. As discussed above and
in CAMR, CAMR added Hg to the list of pollutants covered under 40 CFR
part 60, subpart Da, by establishing emission limits for new sources
and guidelines for existing sources.
    CAMR finalized NSPS for new coal-fired Utility Units,
subcategorized by coal type and, in some cases, unit type. In addition
to complying with these standards, new Utility Units, along with
existing coal-fired Utility Units, subject to the Federal Plan, will be
subject to the cap-and-trade provisions finalized in CAMR and being
proposed in this Federal Plan. The State Hg emission budgets are a
permanent cap regardless of growth in the electric sector and,
therefore, States, in the case of State Plans, and EPA, in the case of
Federal Plan, have the responsibility of incorporating new Utility
Units in their Hg emissions budgets.

VII. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review

    Under Executive Order (EO) 12866 (58 FR 51735, October 4, 1993),
this action is an economically ``significant regulatory action.'' This
determination is made in view of this action's important policy
implications and potential effect on the economy of over $100 million.
Accordingly, EPA submitted this action to the Office of Management and
Budget (OMB) for review under EO 12866 and any changes made in response
to OMB recommendations have been documented in the docket for this
action.
    This Federal Plan proposal represents a Federal mandate to
implement CAMR (70 FR 28606) covering the same Hg emissions reductions
in the event that States fail to implement CAMR. For this reason, EPA
is relying on the economic analysis conducted for CAMR entitled
``Regulatory Impact Analysis of the Final Clean Air Mercury Rule.''

B. Paperwork Reduction Act

    This action does not impose an information collection burden under
the provisions for the Paperwork Reduction Act (PRA), 44 U.S.C. 3501 et
seq. The PRA requirements of this rule are satisfied through the
Information Collection Request (ICR) submitted to OMB for review and
approval as part of CAMR. The burden of this proposed rule is
essentially the same as the burden estimated for CAMR. There is a
modest transfer of burden from the States to EPA if the Federal plan is
implemented rather than the CAMR State Plan. The overall total burden
is essentially unchanged. The Office of Management and Budget (OMB)
previously approved the information collection requirements contained
in the final CAMR regulations (40 CFR 60.40Da--60.52Da; 40 CFR
60.4100--60.4199) under the provisions of the PRA, and has assigned OMB
control number 2060-0567 and EPA ICR number 2137.02. A copy of the OMB
approved ICR may be obtained from Susan Auby, Collection Strategies
Division; U.S. Environmental Protection Agency (2822T); 1200
Pennsylvania Ave., NW., Washington DC 20460, or by calling (202) 566-
1672.
    Burden means the total time, effort, or financial resources
expended by persons to generate, maintain, retain, or disclose or
provide information to or for a Federal agency. This includes the time
needed to review instructions; develop, acquire, install, and utilize
technology and systems for the purposes of collecting, validating, and
verifying information, processing and maintaining information, and
disclosing and providing information; adjust the existing ways to
comply with any previously applicable instructions and requirements;
train personnel to be able to respond to a collection of information;
search data sources; complete and review the collection of information;
and transmit or otherwise disclose the information.
    An agency may not conduct or sponsor, and a person is not required
to respond to a collection of information unless it displays a
currently valid OMB control number. The OMB control numbers for EPA's
regulations in 40 CFR, after appearing in the preamble of the final
rule, are listed in 40 CFR part 9.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires an agency
to prepare a regulatory flexibility analysis of any rule subject to
notice and comment rulemaking requirements under the Administrative
Procedure Act or any other statute unless the agency certifies that the
rule will not have a significant economic impact on a substantial
number of small entities. Small entities include small businesses,
small organizations, and small governmental jurisdictions.
    For purposes of assessing the impacts of today's rule on small
entities, small entity is defined as: (1) A small business as defined
by the Small Business Administration's (SBA) regulations at 13 CFR
121.201; a small governmental jurisdiction that is a government of a
city, county, town, school district or special district with a
population of less than 50,000; and (3) a small organization that is
any not-for-profit enterprise which is independently owned and operated
and is not dominant in its field.
    After considering the economic impacts of today's proposed rule on
small entities, I certify that this action will not have a significant
economic impact on a substantial number of small entities. As was
discussed in the final CAMR, EPA determined that it was not necessary
to prepare a regulatory flexibility analysis in conjunction with this
rulemaking. Although not required by the RFA, the Agency conducted an
additional analysis of the effects of CAMR on small entities in order
to provide additional information to States and affected sources. This
analysis is detailed in both the final CAMR and the ``Regulatory Impact
Analysis of the Final Clean Air Mercury Rule.'' This analysis found
that CAMR would not have a significant direct impact on a substantial
number of small entities. This analysis is applicable to this proposed
rule.
    We continue to be interested in the potential impacts of the
proposed rule on small entities and welcome comments on issues related
to such impacts.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) (UMRA), establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and Tribal
governments and the private sector. Under UMRA section 202, 2 U.S.C.
1532, EPA generally must prepare a written statement, including a cost-
benefit analysis, for any proposed or final rule that ``includes any
Federal mandate that may result in the expenditure by State, local, and
Tribal governments, in the aggregate, or by the private sector, of
$100,000,000 or more * * * in any one year.'' A ``Federal mandate'' is
defined under UMRA section 421(6), 2 U.S.C. 658(6), to include a
``Federal intergovernmental mandate'' and a ``Federal private sector
mandate.'' A ``Federal intergovernmental mandate,'' in turn, is defined
to include a regulation that ``would impose an enforceable duty upon
State, local, or Tribal governments,'' UMRA section 421(5)(A)(i), 2
U.S.C. 658(5)(A)(i), except for, among other things, a duty that is ``a
condition of Federal assistance,'' UMRA section 421(5)(A)(i)(I). A
``Federal private sector mandate'' includes a regulation that

``would impose an enforceable duty upon the private sector,'' with
certain exceptions, UMRA section 421(7)(A), 2 U.S.C. 658(7)(A).
    Before promulgating an EPA rule for which a written statement is
needed under UMRA section 202, UMRA section 205, 2 U.S.C. 1535,
generally requires EPA to identify and consider a reasonable number of
regulatory alternatives and adopt the least costly, most cost-
effective, or least burdensome alternative that achieves the objectives
of the rule.
    EPA has determined that this rule contains a Federal mandate that
may result in expenditures of $100 million or more for State, local,
and tribal governments, in the aggregate, or the private sector in any
one year. Accordingly, EPA prepared a written statement for the final
CAMR consistent with the requirements of UMRA section 202. Furthermore,
as EPA stated in the rule, EPA is not directly establishing any
regulatory requirements that may significantly or uniquely affect small
governments, including Tribal governments. Thus, EPA is not obligated
to develop under UMRA section 203 a small government agency plan.
Furthermore, in a manner consistent with the intergovernmental
consultation provisions of UMRA section 204, EPA carried out
consultations with the governmental entities affected by this rule.
    For the final CAMR, EPA conducted an analysis of the potential
economic impacts anticipated of CAMR on government-owned entities. The
results support EPA's assertion in the NPR that the proposed rule would
not have a disproportionate budgetary impact on government entities.
This analysis is detailed in both the final CAMR and the ``Regulatory
Impact Analysis of the Final Clean Air Mercury Rule.'' This analysis is
applicable to this proposed rule.

E. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August
10, 1999), requires EPA to develop an accountable process to ensure
``meaningful and timely input by State and local officials in the
development of regulatory policies that have federalism implications.''
``Policies that have federalism implications'' is defined in the EO to
include regulations that have ``substantial direct effects on the
States, on the relationship between the national government and the
States, or on the distribution of power and responsibilities among the
various levels of government.''
    This proposed rule does not have Federalism implications. It will
not have substantial direct effects on the States, on the relationship
between the national government and the States, or on the distribution
of power and responsibilities among the various levels of government,
as specified in EO 13132. These effects would not occur from the final
rule itself because it is the provisions of the CAA that require EPA,
after a State has failed to submit a State Plan or a complete State
Plan, to make a finding to that effect and then promulgate a Federal
Plan. Although EPA would be exercising discretion to promulgate the
Federal Plan at an early date, EPA would rescind the Federal Plan for
each State that submits a State Plan that EPA approves. Moreover, as
emphasized throughout the preamble, States are not required to adopt
the Federal Plan provisions, or any particular portion thereof, in
order for EPA to approve their State Plans. Thus, EO 13132 does not
apply to this proposed rule.
    Even so, in the spirit of EO 13132, and consistent with EPA policy
to promote communications between EPA and State and local governments,
EPA consulted with State and local officials early in the process of
developing the proposed regulation to permit them to have meaningful
and timely input into its development. EPA is including a number of
provisions for States in the proposed rule so as not to constrain
States' abilities to complete approvable State Plans, such as the
ability to submit State allocation methodologies, and intends to
withdraw the Federal Plan upon approval of State Plans.

F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments

    Executive Order 13175, entitled ``Consultation and Coordination
with Indian Tribal Governments'' (65 FR 67249, November 9, 2000),
requires EPA to develop an accountable process to ensure ``meaningful
and timely input by Tribal officials in the development of regulatory
policies that have Tribal implications.'' This proposal does not have
``Tribal implications'' as specified in EO 13175.
    This proposal addresses pollution composed of Hg and mercuric
compounds. The final CAMR required annual Hg reductions for the power
sector in 50 States, the District of Columbia, and in Indian country,
through a cap-and-trade system that States and eligible Tribes have the
option of adopting. The CAA provides for States and eligible Tribes to
develop plans to regulate emissions of air pollutants within their
areas. The regulations clarify the statutory obligations of States and
eligible Tribes that develop plans to implement this rule. The TAR (40
CFR 49.1-49.119) gives eligible Tribes the opportunity to develop and
implement CAA programs, but it leaves to the discretion of the Tribe
whether to develop these programs and which programs, or appropriate
elements of a program, the Tribe will adopt. As noted earlier, the EPA
will implement the emission trading rule for coal-fired Utility Units
located in Indian country in accordance with the TAR unless the
relevant Tribe for the land on which a particular coal-fired Utility
Unit is located seeks and obtains TAS status and submits a TIP to
implement the allocated Hg emissions budget. Tribes which choose to do
so will be responsible for submitting a TIP analogous to the State
Plans discussed throughout this preamble, and, like States, can choose
to adopt the Model Cap-and-Trade Rule described elsewhere in this
action.
    This proposal does not have Tribal implications as defined by EO
13175. It does not have a substantial direct effect on one or more
Indian Tribes, because no Tribe has implemented a Federally enforceable
air quality management program under the CAA at this time. Furthermore,
this proposal does not affect the relationship or distribution of power
and responsibilities between the Federal government and Indian Tribes.
The CAA and the TAR establish the relationship of the Federal
government and Tribes in developing plans to attain the national
ambient air quality standards (NAAQS), and this proposal does nothing
to modify that relationship. EPA has complied with the provisions of EO
13175.
    EPA notes that in the event a Tribe does implement a TIP in the
future, this proposal could have implications for that Tribe, but it
would not impose substantial direct costs upon the Tribe, nor preempt
Tribal law. EPA has estimated that the total annual private costs for
the rule for Hg as implemented by State, local, and eligible Tribal
governments (or EPA in the absence of any Tribe seeking TAS status) is
approximately $160 million in 2010, $100 million in 2015, and $750
million in 2020 (1999$). There are currently three coal-fired Utility
Units located in Indian country that will be affected by this rule and
the percentage of Indian country that will be impacted is very small.
For eligible Tribes that choose to regulate sources in Indian country,
the costs would be attributed to inspecting regulated facilities and
enforcing adopted regulations.

    EPA consulted with Tribal officials in developing the final CAMR
and this proposal. The EPA encouraged Tribal input at an early stage. A
Tribal representative from the Navajo Nation was a member of the
official workgroup and was provided with all workgroup materials. EPA
has provided two briefings for Tribal representatives and the newly
formed National Tribal Air Association (NTAA), and other national
Tribal forums such as the National Tribal Environmental Council (NTEC)
and the National Tribal Forum during the period prior to issuance of
the CAMR NPR. Another briefing for Tribal representatives, NTAA, and
NTEC was provided post-proposal to provide opportunity for additional
input. In addition, Tribal representatives participated in EPA's
regional implementation workshops for CAMR in the summer of 2005.
    EPA conducted additional informal outreach for Tribes during the
CAMR reconsideration process. First, EPA prepared an update on the
reconsideration and CAMR Federal Plan development for the EPA Tribal
Newsletter in January 2006. Second, EPA, through both Headquarters and
Regional Offices, has worked to address Tribes' specific questions or
concerns regarding implementation of CAMR. Finally, EPA has met with
representatives from one Tribe that is concerned with the implications
of CAMR for the development of new tribal electricity generation.

G. Executive Order 13045: Protection of Children From Environmental
Health and Safety Risks

    Executive Order 13045, ``Protection of Children from Environmental
Health and Safety Risks'' (62 FR 19885, April 23, 1997) applies to any
rule that (1) Is determined to be ``economically significant'' as
defined under EO 12866, and (2) concerns an environmental health or
safety risk that EPA has reason to believe may have a disproportionate
effect on children. If the regulatory action meets both criteria,
Section 5-501 of the EO directs the Agency to evaluate the
environmental health or safety effects of the planned rule on children,
and explain why the planned regulation is preferable to other
potentially effective and reasonably feasible alternatives considered
by the Agency.
    We believe that the environmental health or safety risk addressed
by this action may have a disproportionate effect on children.
Accordingly, we have evaluated the environmental health or safety
effects of this rule on children. The results of this evaluation are
discussed in the final CAMR and in the ``Regulatory Impact Analysis for
the Final Clean Air Mercury Rule.'' EPA concluded that CAMR will
further improve air quality and will further improve children's health.

H. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use

    Executive Order 13211 (66 FR 28355, May 22, 2001) provides that
agencies shall prepare and submit to the Administrator of the Office of
Regulatory Affairs, OMB, a Statement of Energy Effects for certain
actions identified as ``significant energy actions.'' Section 4(b) of
EO 13211 defines ``significant energy actions'' as ``any action by an
agency (normally published in the Federal Register) that promulgates or
is expected to lead to the promulgation of a final rule or regulation,
including notices of inquiry, advance notices of final rulemaking, and
notices of final rulemaking: (1)(i) That is a significant regulatory
action under EO 12866 or any successor order, and (ii) is likely to
have a significant adverse effect on the supply, distribution, or use
of energy; or (2) that is designated by the Administrator of the Office
of Information and Regulatory Affairs as a ``significant energy
action.'' Although this proposal is a significant regulatory action
under EO 12866, this rule likely will not have a significant adverse
effect on the supply, distribution, or use of energy. EPA concluded
that the impact of the final CAMR is not significant because the final
rule did not have a greater than 1 percent impact on the cost of
electricity production and because it does not result in the retirement
of greater than 500 MW of coal-fired generation. EPA's analysis of the
energy impacts of the final CAMR can be found in the ``Regulatory
Impact Analysis for the Final Clean Air Mercury Rule.''

I. National Technology Transfer and Advancement Act

    As noted in the CAMR final rule, section 12(d) of the National
Technology Transfer and Advancement Act (NTTAA) of 1995 (Pub. L. 104-
113; 15 U.S.C. 272 note) directs EPA to use voluntary consensus
standards in their regulatory and procurement activities unless to do
so would be inconsistent with applicable law or otherwise
impracticable. Voluntary consensus standards are technical standards
(e.g., material specifications, test methods, sampling procedures,
business practices) developed or adopted by one or more voluntary
consensus bodies. The NTTAA requires EPA to provide Congress, through
OMB, with explanations when EPA decides not to use available and
applicable voluntary consensus standards.
    During the development of the final CAMR, EPA searched for
voluntary consensus standards that might be applicable. The search
identified three voluntary consensus standards that were considered
practical alternatives to the specified EPA test methods. An assessment
of these and other voluntary consensus standards is presented in the
preamble to the final CAMR (70 FR 28647; May 18, 2005). This proposed
action does not propose the use of any additional technical standards
beyond those cited in the final CAMR. Therefore, EPA is not considering
the use of any additional voluntary consensus standards for this
action.

J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations

    Executive Order 12898, ``Federal Actions to Address Environmental
Justice in Minority Populations and Low-Income Populations,'' requires
Federal agencies to consider the impact of programs, policies, and
activities on minority populations and low-income populations.
According to EPA guidance,\7\ agencies are to assess whether minority
or low-income populations face risks or a rate of exposure to hazards
that are significant and that ``appreciably exceed or is likely to
appreciably exceed the risk or rate to the general population or to the
appropriate comparison group.'' (EPA, 1998)
---------------------------------------------------------------------------

    \7\ U.S. Environmental Protection Agency, 1998. Guidance for
Incorporating Environmental Justice Concerns in EPA's NEPA
Compliance Analyses. Office of Federal Activities, Washington, DC,
April 1998.
---------------------------------------------------------------------------

    In accordance with EO 12898, the Agency has considered whether this
proposal may have disproportionate negative impacts on minority or low
income populations. The Agency expects this proposal to lead to
beneficial reductions in air pollution and exposures generally with a
small negative impact through increased utility bills. The increase in
the price for electric power is estimated to be 0.2 percent of retail
electricity prices when it is shared among all members of society
equally. The price increase is not considered to be a disproportionate
impact on minority populations and low-income populations. For this
reason, negative impacts to these sub-populations that appreciably
exceed

similar impacts to the general population are not expected.
    There will be beneficial outcomes to these populations as the
result of this action. In the absence of CAMR, there are health effects
that are likely to affect certain populations in the U.S., including
subsistence anglers, Native Americans, and Asian Americans. These
populations may include low income and minority populations who are
disproportionately impacted by Hg exposures due to their economic,
cultural, and religious activities that lead to higher levels of
consumption of fish than the general populations. CAMR is expected to
reduce Hg exposures among these populations. EPA's analysis of these
impacts is found in the ``Regulatory Impact Analysis for the Final
Clean Air Mercury Rule.''

List of Subjects

40 CFR Part 60

    Environmental protection, Administrative practice and procedure,
Air pollution control, Coal, Electric power plants, Intergovernmental
relations, Metals, Natural gas, Nitrogen dioxide, Particulate matter,
Reporting and recordkeeping requirements, Sulfur oxides.

40 CFR Part 62

    Environmental protection, Air pollution control, Hazardous
substances, Reporting and recordkeeping requirements.

40 CFR Part 72

    Acid rain, Administrative practice and procedure, Air pollution
control, Electric utilities, Intergovernmental relations, Nitrogen
oxides, Reporting and recordkeeping requirements, Sulfur oxides.

40 CFR Part 78

    Acid rain, Administrative practice and procedure, Air pollution
control, Electric utilities, Nitrogen oxides, Reporting and
recordkeeping requirements, Sulfur oxides.

    Dated: December 7, 2006.
Stephen L. Johnson,
Administrator.
    For the reasons set forth in the preamble, parts 60, 62, 72, and 78
of chapter 1 of title 40 of the Code of Federal Regulations are
proposed to be amended as follows:

PART 60--[AMENDED]

    1. The authority citation for part 60 continues to read as follows:

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

Sec.  60.17  [Amended]

    2. Section 60.17 is amended, in paragraph (a)(14) by revising the
words ``and 60.4102'' to read ``, 60.4120, and 62.15902''.
    3. Section 60.24 is amended as follows:
    a. In paragraph (h)(8) in the definition of ``Boiler'', by revising
the words ``fossil-or other fuel-fired'' to read ``fossil- or other-
fuel-fired'';
    b. In paragraph (h)(8) in the definition of ``Cogeneration unit'',
by revising in paragraph (2) the words ``after which'' to read ``after
the calendar year in which'';
    c. In paragraph (h)(8) in the definition of ``Combustion turbine'',
by revising in paragraph (2) the words ``heat recovery steam
generator'' to read ``duct burner, heat recovery steam generator,'';
    d. In paragraph (h)(8), by removing the definition of ``Heat
input'';
    e. In paragraph (h)(8), by revising the definition of ``Maximum
design heat input'';
    f. In paragraph (h)(8) in the definition of ``Nameplate capacity'',
by revising the words ``derates) as specified'' to read ``deratings) as
of such installation as specified'' and by revising the words
``derates), such increased maximum amount as specified'' to read
``deratings), such increased maximum amount as of such completion as
specified'';
    g. In paragraph (h)(8) in the definition of ``Sequential use of
energy'', by revising in paragraph (2) the word ``seful'' to read
``useful'';
    h. In paragraph (h)(8) in the definition of ``Useful thermal
energy'', by revising in paragraph (2) the words ``heat'' to read
``heating''; and
    i. In paragraph (h)(8), by adding new definitions of ``Municipal
waste'' and ``Solid waste incineration unit'';
    j. By adding a new paragraph (h)(9) to read as follows:

Sec.  60.24  Emission standards and compliance schedules.

* * * * *
    (h) * * *
    (8) * * *
    Maximum design heat input means the maximum amount of fuel per hour
(in Btu/hr) that a unit is capable of combusting on a steady-state
basis as of the initial installation of the unit as specified by the
manufacturer of the unit.
* * * * *
    Municipal waste means ``municipal waste'' as defined in section
129(g)(5) of the Clean Air Act.
* * * * *
    Solid waste incineration unit means a stationary, coal-fired boiler
or stationary, coal-fired combustion turbine that is a ``solid waste
incineration unit'' as defined in section 129(g)(1) of the Clean Air
Act.
* * * * *
    (9) Notwithstanding any other provision of this paragraph, a State
may adopt, and submit by May 30, 2007, a State Hg allowance allocation
methodology replacing the provisions in Sec. Sec.  62.15941 and
62.15942 of this chapter under the Federal Hg Budget Trading Program
under subpart HHHH of this part with:
    (i) Allocation provisions substantively identical to Sec. Sec.
62.15941 and 62.15942 of this chapter, under which the permitting
authority makes the allocations; or
    (ii) Any methodology for allocating Hg allowances to individual
sources under which the permitting authority makes the allocations,
provided that:
    (A) The State's methodology must not allow the permitting authority
to allocate Hg allowances for a year in excess of the amount in the
State's trading 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
Hg allowances by October 31, 2007 for 2010, 2011, and 2012 and by
October 31, 2009 and October 31 of each year thereafter for the 4th
year after the year of the notification deadline.
    (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
Hg allowances by October 31 of the year for which the Hg allowances are
allocated.
    4. Section 60.4102 is amended as follows:
    a. By revising the definition of ``Allocate or allocation'';
    b. By revising the definition of ``Allowance transfer deadline'';
    c. In the definition of ``Alternate Hg designated representative'',
by revising the words ``in accordance with Sec. Sec.  60.4110 through
60.4114,'' to read ``, in accordance with Sec. Sec.  60.4110 through
60.4115,'' and by adding four sentences at the end of the definition;
    d. In the definition of ``Automated data acquisition and handling
system or DAHS'', by revising the words ``under Sec. Sec.  60.4170
through 60.4176'' to read ``under Sec. Sec.  60.4170 through 60.4175''
and by revising the words ``required Sec. Sec.  60.4170 through
60.4176'' to read ``required by Sec. Sec.  60.4170 through 60.4175''.

    e. In the definition of ``Boiler'', by revising the words ``fossil-
or other-fuel-fired'' to read ``fossil- or other-fuel-fired'';
    f. By revising the definition of ``CAIR NOX Annual
Trading Program'';
    g. By revising the definition of ``CAIR NOX Ozone Season
Trading Program'';
    h. By revising the definition of ``CAIR SO2 Trading
Program'';
    i. In the definition of ``Cogeneration unit'', by revising in
paragraph (2) the words ``after which'' to read ``after the calendar
year in which'';
    j. In the definition of ``Combustion turbine'', by revising in
paragraph (2) the words ``heat recovery steam generator'' to read
``duct burner, heat recovery steam generator,'';
    k. By revising the definition of ``Commence commercial operation'';
    l. By revising the definition of ``Commence operation'';
    m. In the definition of ``Continuous emission monitoring system or
CEMS'', in the introductory text by revising the word ``CEMS'' to read
``continuous emission monitoring systems'' and by revising the words
``Sec. Sec.  60.4170 through 60.4176'' to read ``Sec. Sec.  60.4170
through 60.4175'' whenever they appear and in paragraphs (1) and (2) by
revising the words ``in units of'' to read ``in''.
    n. In the definition of ``Control period'', by revising the words
``January 1 of a calendar year and'' to read ``January 1 of a calendar
year, except as provided in Sec.  60.4106(c)(2), and'';
    o. In the definition of ``Emissions'', by revising the words
``Sec. Sec.  60.4170 through 60.4176'' to read ``Sec. Sec.  60.4170
through 60.4175'';
    p. In the definition of ``Heat input'', by revising the words
``Sec. Sec.  60.4170 through 60.4176'' to read ``Sec. Sec.  60.4170
through 60.4175'';
    q. By revising the definition of ``Hg allowance'';
    r. In the definition of ``Hg allowance deduction or deduct CAIR
NOX allowances'', by adding, after the words ``compliance
account'', the words ``, e.g.,'', by removing the words ``Sec. Sec.
60.4150 through 60.4157 and'', and by revising the words ``Sec. Sec.
60.4170 through 60.4176'' to read ``Sec. Sec.  60.4170 through
60.4175'';
    s. In the definition of ``Hg authorized account representative'',
by revising the words ``Sec.  60.4152'' to read ``Sec. Sec.  60.4110
through 60.4115 and Sec. Sec.  60.4150 through 60.4157'';
    t. In the definition of ``Hg Budget emissions limitation'', by
revising the words ``in ounces'' to read ``, in ounces of Hg emissions
in a control period,'' and revising the words ``for a control period''
to read ``for the control period'';
    u. By revising the definition of ``Hg Budget Trading Program'';
    v. In the definition of ``Hg designated representative'', by
revising the words ``Sec. Sec.  60.4110 through 60.4114'' to read
``Sec. Sec.  60.4110 through 60.4115'' and by adding four sentences at
the end of the definition;
    w. By revising the definition of ``Maximum design heat input'';
    x. In the definition of ``Monitoring system'', by revising the
words ``Sec. Sec.  60.4170 through 60.4176'' to read ``Sec. Sec.
60.4170 through 60.4175'';
     y. In the definition of Nameplate capacity'', by revising the
words ``other deratings) as specified'' to read ``other deratings) as
of such installation as specified'' and by revising the words ``maximum
amount as specified'' to read ``maximum amount as of such completion as
specified;
    z. In the definition of ``Ounce'', by revising the words
``Sec. Sec.  60.4170 through 60.4176'' to read ``Sec. Sec.  60.4170
through 60.4175'';
    aa. In the definition of ``Permitting authority'', by removing the
words ``in accordance with Sec. Sec.  60.4120 through 60.4124'';
    bb. In the definition of ``Receive or receipt'', by revising the
words ``correspondence log'' to read ``log'';
    cc. In the definition of ``Source'', by revising the word ``CAA''
to read ``Clean Air Act'';
    dd. In the definition of ``Title V operating permit'', by revising
the word ``CAA'' to read ``Clean Air Act'';
    ee. In the definition of ``Title V operating permit regulations'',
by revising the word ``CAA'' to read ``Clean Air Act'';
    ff. In the definition of ``Useful thermal energy'', by revising in
paragraph (2) the words ``heat application'' to read ``heating
application''; and
    gg. Adding new definitions of ``CAIR NOX Ozone Season
source'', ``CAIR NOX source'', ``CAIR SO2
source'', ``Municipal waste'', ``Replacement, replace, or replaced'',
and ``Solid waste incineration unit'':

Sec.  60.4102  Definitions.

* * * * *
    Allocate or allocation means, with regard to Hg allowances, the
determination by a permitting authority or the Administrator of the
amount of such Hg allowances to be initially credited to a Hg Budget
unit, a new unit set-aside, or other entity.
* * * * *
    Allowance transfer deadline means, for a control period, midnight
of March 1 (if it is a business day), or midnight of the first business
day thereafter (if March 1 is not a business day), immediately
following the control period and is the deadline by which a Hg
allowance transfer must be submitted for recordation in a Hg Budget
source's compliance account in order to be used to meet the source's Hg
Budget emissions limitation for such control period in accordance with
Sec.  60.4154.
* * * * *
    Alternate Hg designated representative means * * * If the Hg Budget
source is also a CAIR NOX source, then this natural person
shall be the same person as the alternate CAIR designated
representative under the CAIR NOX Annual Trading Program. If
the Hg Budget source is also a CAIR SO2 source, then this
natural person shall be the same person as the alternate CAIR
designated representative under the CAIR SO2 Trading
Program. If the Hg Budget source is also a CAIR NOX Ozone Season
source, then this natural person shall be the same person as the
alternate CAIR designated representative under the CAIR NOX Ozone
Season Trading Program. If the Hg Budget source is also subject to the
Acid Rain Program, then this natural person shall be the same person as
the alternate designated representative under the Acid Rain Program.
* * * * *
    CAIR NOX Annual Trading Program means a multi-state nitrogen oxides
air pollution control and emission reduction program approved and
administered by the Administrator in accordance with subparts AA
through II of part 96 of this chapter and Sec.  51.123(o)(1) or (2) of
this chapter or established by the Administrator in accordance with
subparts AA through II of part 97 of this chapter and Sec. Sec.
51.123(p) and 52.35 of this chapter, as a means of mitigating
interstate transport of fine particulates and nitrogen oxides.
    CAIR NOX Ozone Season source means a source that is subject to the
CAIR NOX Ozone Season Trading Program.
    CAIR NOX Ozone Season Trading Program means a multi-state nitrogen
oxides air pollution control and emission reduction program approved
and administered by the Administrator in accordance with subparts AAAA
through IIII of part 96 of this chapter and Sec.  51.123(aa)(1) or (2)
(and (bb)(1)), (bb)(2), or (dd) of this chapter or established by the
Administrator in accordance with subparts AAAA through IIII of part 97
of this chapter and Sec. Sec.  51.123(ee) and 52.35 of this chapter, as
a means of mitigating interstate transport of ozone and nitrogen
oxides.

    CAIR NOX source means a source that is subject to the CAIR
NOX Annual Trading Program.
    CAIR SO2 source means a source that is subject to the CAIR
SO2 Trading Program.
    CAIR SO2 Trading Program means a multi-state sulfur dioxide air
pollution control and emission reduction program approved and
administered by the Administrator in accordance with subparts AAA
through III of part 96 of this chapter and Sec.  51.124(o)(1) or (2) of
this chapter or established by the Administrator in accordance with
subparts AAA through III of part 97 of this chapter and Sec. Sec.
51.124(r) and 52.36 of this chapter, as a means of mitigating
interstate transport of fine particulates and sulfur dioxide.
* * * * *
    Commence commercial operation means, with regard to a unit:
    (1) To have begun to produce steam, gas, or other heated medium
used to generate electricity for sale or use, including test
generation, except as provided in Sec.  60.4105.
    (i) For a unit that is a Hg Budget unit under Sec.  60.4104 on the
later of November 15, 1990 or the date the unit commences commercial
operation as defined in paragraph (1) of this definition and that
subsequently undergoes a physical change (other than replacement of the
unit by a unit at the same source), such date shall remain the date of
commencement of commercial operation of the unit, which shall continue
to be treated as the same unit.
    (ii) For a unit that is a Hg Budget unit under Sec.  60.4104 on the
later of November 15, 1990 or the date the unit commences commercial
operation as defined in paragraph (1) of this definition and that is
subsequently replaced by a unit at the same source (e.g., repowered),
such date shall remain the replaced unit's date of commencement of
commercial operation, and the replacement unit shall be treated as a
separate unit with a separate date for commencement of commercial
operation as defined in paragraph (1) or (2) of this definition as
appropriate.
    (2) Notwithstanding paragraph (1) of this definition and except as
provided in Sec.  60.4105, for a unit that is not a Hg Budget unit
under Sec.  60.4104 on the later of November 15, 1990 or the date the
unit commences commercial operation as defined in paragraph (1) of this
definition, the unit's date for commencement of commercial operation
shall be the date on which the unit becomes a Hg Budget unit under
Sec.  60.4104.
    (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 of the unit, which shall continue
to be treated as the same unit.
    (ii) For a unit with a date for commencement of commercial
operation as defined in paragraph (2) of this definition and that is
subsequently replaced by a unit at the same source (e.g., repowered),
such date shall remain the replaced unit's date of commencement of
commercial operation, and the replacement unit shall be treated as a
separate unit with a separate date for commencement of commercial
operation as defined in paragraph (1) or (2) of this definition as
appropriate.
    Commence operation means:
    (1) To have begun any mechanical, chemical, or electronic process,
including, with regard to a unit, start-up of a unit's combustion
chamber.
    (2) 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 date of commencement of
operation of the unit, which shall continue to be treated as the same
unit.
    (3) 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, such date shall remain the replaced
unit's date of commencement of operation, and the replacement unit
shall be treated as a separate unit with a separate date for
commencement of operation as defined in paragraph (1), (2), or (3) of
this definition, as appropriate.
* * * * *
    Hg allowance means a limited authorization issued by a permitting
authority or the Administrator under provisions of a State plan that
are approved under Sec.  52.24(h)(6) of this chapter, or under
Sec. Sec.  62.15940 through 62.15943 of this chapter, to emit one ounce
of mercury during a control period of the specified calendar year for
which the authorization is allocated or of any calendar year thereafter
under the Hg Budget Trading Program. An authorization to emit mercury
that is not issued under provisions of a State plan that are approved
under Sec.  52.24(h)(6) of this chapter or under Sec. Sec.  62.15940
through 62.15943 of this chapter shall not be a ``Hg allowance.''
* * * * *
    Hg Budget Trading Program means a multi-state Hg air pollution
control and emission reduction program approved and administered by the
Administrator in accordance with this subpart and Sec.  60.24(h)(6) or
established by the Administrator in accordance with subpart LLL of part
62 of this chapter, Sec.  60.24(h)(9), and Sec.  62.13(f) of this
chapter, as a means of reducing national Hg emissions.
* * * * *
    Hg designated representative means * * * If the Hg Budget source is
also a CAIR NOX source, then this natural person shall be
the same person as the CAIR designated representative under the CAIR
NOX Annual Trading Program. If the Hg Budget source is also
a CAIR SO2 source, then this natural person shall be the
same person as the CAIR designated representative under the CAIR
SO2 Trading Program. If the Hg Budget source is also a CAIR
NOX Ozone Season source, then this natural person shall be
the same person as the CAIR designated representative under the CAIR
NOX Ozone Season Trading Program. If the Hg Budget source is
also subject to the Acid Rain Program, then this natural person shall
be the same person as the designated representative under the Acid Rain
Program.
* * * * *
    Maximum design heat input means the maximum amount of fuel per hour
(in Btu/hr) that a unit is capable of combusting on a steady-state
basis as of the initial installation of the unit as specified by the
manufacturer of the unit.
* * * * *
    Municipal waste means ``municipal waste'' as defined in section
129(g)(5) of the Clean Air Act.
* * * * *
    Replacement, replace, or replaced means, with regard to a unit, the
demolishing of a unit, or the permanent shutdown and permanent
disabling of a unit, and the construction of another unit (the
replacement unit) to be used instead of the demolished or shutdown unit
(the replaced unit).
* * * * *
    Solid waste incineration unit means a stationary, coal-fired boiler
or stationary, coal-fired combustion turbine that is a ``solid waste
incineration unit'' as defined in section 129(g)(1) of the Clean Air
Act.
* * * * *
    5. Section 60.4103 is revised to read as follows:

Sec.  60.4103  Measurements, abbreviations, and acronyms.

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

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.

Sec.  60.4104  [Amended]

    6. Section 60.4104 is amended, in paragraph (a)(1) by removing the
words ``and subparts BB through HH of this part''.

Sec.  60.4105  [Amended]

    7. Section 60.4105 is amended as follows:
    a. In paragraph (a)(1), by revising the words ``through (8), Sec.
60.4107, and Sec. Sec.  60.4150'' to read ``through (7), Sec.  60.4107,
Sec.  60.4108, Sec. Sec.  60.4110 through 60.4115, and Sec. Sec.
60.4140'';
    b. In paragraph (b)(3), by revising the words ``shall retain at the
source'' to read ``shall retain, at the source'' and
    c. In paragraph (b)(7), by revising the words ``Sec. Sec.  60.4170
through 60.4176'' to read ``Sec. Sec.  60.4170 through 60.4175'' and by
revising the words ``commences operation and commercial operation'' to
read ``commences commercial operation''.

Sec.  60.4106  [Amended]

    8. Section 60.4106 is amended as follows:
    a. In paragraph (a)(1)(i), by revising the words ``in Sec.
60.4121(a) and (b)'' to read ``in Sec.  60.4121'';
    b. In paragraph (a)(3), by revising the words ``is not required''
to read ``is not otherwise required'' whenever they appear;
    c. In paragraphs (b)(1), (b)(2), and (c)(1), by revising the words
``Sec. Sec.  60.4170 through 60.4176'' to read ``Sec. Sec.  60.4170
through 60.4175'';
    d. In paragraph (c)(2), by revising the words ``under paragraph
(c)(1) of this section'' to read ``under paragraph (c)(1) of this
section for the control period'' and by revising the words ``under
Sec.  60.4170(b)(1) or (2)'' to read ``under Sec.  60.4170(b)(1) or (2)
and for each control period thereafter'';
    e. In paragraph (c)(4), by revising the words ``Sec. Sec.
60.4160'' to read ``Sec. Sec.  60.4150'';
    f. In paragraph (c)(7), by revising the words ``Sec. Sec.
60.4150'' to read ``Sec. Sec.  60.4140'', by revising the words ``from
a Hg Budget unit's compliance account'' to read ``from a Hg Budget
source's compliance account'', and by removing the words ``that
includes the Hg Budget unit'';
    g. In paragraph (d)(1), by removing the paragraph designation
``(1)'' and by redesignating paragraph (d)(1)(i) as paragraph (d)(1);
    h. By removing paragraph (d)(2) and by redesignating paragraph
(d)(1)(ii) as paragraph (d)(2);
    i. In paragraphs (e)(1)(ii) and (e)(2), by revising the words
``Sec. Sec.  60.4170 through 60.4176'' to read ``Sec. Sec.  60.4170
through 60.4175'' whenever they appear; and
    j. In paragraph (g), by revising the word ``CAA'' to read ``Clean
Air Act''.

Sec.  60.4108  [Amended]

    9. Section 60.4108 is amended by revising the words ``shall be the
procedures'' to read ``are'' and removing the second sentence.

Sec.  60.4110  [Amended]

    10. Section 60.4110 is amended, in paragraph (e)(2), by revising
the words ``owner'' to read ``owners''.

Sec.  60.4111  [Amended]

    11. Section 60.4111 is amended, in paragraph (c), by revising the
words ``60.4151, and 60.4174,'' to read ``60.4115, and 60.4151,''.

Sec.  60.4112  [Amended]

    12. Section 60.4112 is amended, in paragraph (c)(1), by revising
the words ``a new owner'' to read ``an owner'', by revising the words
``such new owner'' to read ``such owner'', and by revising the words
``the new owner'' to read ``the owner''.

Sec.  60.4113  [Amended]

    13. Section 60.4113 is amended as follows:
    a. In paragraph (a)(1), by revising the words ``is submitted.'' to
read ``is submitted, including identification and nameplate capacity of
each generator served by each such unit''; and
    b. In paragraph (a)(4)(iv), by revising the words ``where a
customer'' to read ``where a utility or industrial customer''.
    14. Add a new Sec.  60.4115 to read as follows:

Sec.  60.4115  Delegation by Hg designated representative and alternate
Hg designated representative.

    (a) A Hg designated representative may delegate, to one or more
natural persons, his or her authority to make an electronic submission
to the Administrator provided for or required under this subpart.
    (b) An alternate Hg designated representative may delegate, to one
or more natural persons, his or her authority to make an electronic
submission to the Administrator provided for or required under this
subpart.
    (c) In order to delegate authority to make an electronic submission
to the Administrator in accordance with paragraph (a) or (b) of this
section, the Hg designated representative or alternate Hg designated
representative, as appropriate, must submit to the Administrator a
notice of delegation, in a format prescribed by the Administrator, that
includes the following elements:
    (1) The name, address, e-mail address, telephone number, and
facsimile transmission number (if any) of such Hg designated
representative or alternate Hg designated representative;
    (2) The name, address, e-mail address, telephone number, and
facsimile transmission number (if any) of each such natural person
(referred to as an ``agent'');
    (3) For each such natural person, a list of the type or types of
electronic submissions under paragraph (a) or (b) of this section for
which authority is delegated to him or her; and
    (4) The following certification statements by such Hg designated
representative or alternate Hg designated representative:
    (i) ``I agree that any electronic submission to the Administrator
that is by an agent identified in this notice of delegation and of a
type listed for such agent in this notice of delegation and that is
made when I am a Hg designated representative or alternate Hg
designated representative, as appropriate, and before this notice of
delegation is superseded by another notice of delegation under 40 CFR
60.4115(d) shall be deemed to be an electronic submission by me.''
    (ii) ``Until this notice of delegation is superseded by another
notice of delegation under 40 CFR 60.4115(d), I agree to maintain an e-
mail account and to notify the Administrator immediately of any change
in my e-mail address, unless all delegation of authority by me under 40
CFR 60.4115 is terminated.''
    (d) A notice of delegation submitted under paragraph (c) of this
section shall be effective, with regard to the Hg designated
representative or alternate Hg designated representative identified in
such notice, upon receipt of such notice by the Administrator and until

receipt by the Administrator of a superseding notice of delegation
submitted by such Hg designated representative or alternate Hg
designated representative, as appropriate. The superseding notice of
delegation may replace any previously identified agent, add a new
agent, or eliminate entirely any delegation of authority.
    (e) Any electronic submission covered by the certification in
paragraph (c)(4)(i) of this section and made in accordance with a
notice of delegation effective under paragraph (d) of this section
shall be deemed to be an electronic submission by the Hg designated
representative or alternative Hg designated representative submitting
such notice of delegation.

Sec.  60.4120  [Amended]

    15. Section 60.4120 is amended, in paragraph (a), by revising the
words ``otherwise by this section and'' to read ``otherwise by
paragraph (b) of this section, Sec.  60.4105, and''.

Sec.  60.4121  [Amended]

    16. Section 60.4121 is amended, in paragraph (a), by revising the
words ``commences operation'' to read ``commences commercial
operation''.

Sec.  60.4123  [Amended]

    17. Section 60.4123 is amended, in paragraph (b), by revising the
words ``Sec. Sec.  60.4150'' to read ``Sec. Sec.  60.4140''.

Sec.  60.4141  [Amended]

    18. Section 60.4141 is amended as follows:
    a. In paragraph (b)(1), by removing the paragraph designation
``(1)'' and by revising the words ``October 31, 2008'' to read
``October 31, 2009'';
    b. By removing paragraph (b)(2);
    c. In paragraph (c)(1), by removing the paragraph designation
``(1)''; and
    d. By removing paragraph (c)(2).
    19. Section 60.4142 is amended as follows:
    a. By revising paragraph (c) introductory text;
    b. In paragraph (c)(2), by revising the words ``The Hg allowance
allocation request must be submitted on or before July 1 of the first
control period for which Hg allowances are requested'' to read ``A
separate Hg allowance allocation request for each control period for
which Hg allowances are sought must be submitted on or before May 1 of
such control period'';
    c. In paragraph (c)(3), by revising the words ``control period
immediately before'' to read ``calendar year immediately before'';
    d. In paragraph (c)(4)(ii), by revising the words ``On or after
July 1'' to read ``On or after May 1'';
    e. In paragraph (d), by revising the words ``for 2010 through 2014,
and 97 percent for 2014'' to read ``for a control period in 2010
through 2014, and 97 percent for a control period in 2015''.

Sec.  60.4142  Hg allowance allocations.

* * * * *
    (c) For each control period in 2009 and thereafter, the permitting
authority will allocate Hg allowances to Hg Budget units in a State
that are not allocated Hg allowances under paragraph (b) of this
section because the units do not yet have a baseline heat input under
paragraph (a) of this section or because the units have a baseline heat
input but all Hg allowances available under paragraph (b) of this
section for the control period are already allocated, in accordance
with the following procedures:
* * * * *
    20. Section 60.4151 is amended as follows:
    a. By revising paragraph (b)(2) introductory text;
    b. In paragraph (b)(3)(iii)(A), by revising the words ``a new
person'' to read ``a person'', by revising the words ``such new
person'' to read ``such person'', and by revising the words ``the new
person'' to read ``the person'';
    c. In paragraph (b)(3)(iii)(B), by revising the words ``addition of
persons'' to read ``addition of a new person'';
    d. In paragraph (b)(4) introductory text, by revising the word
``representative'' to read ``representative and alternate Hg authorized
account representative'';
    e. In paragraphs (b)(4)(ii) and (iii), by revising the words
``alternative Hg'' to read ``alternate Hg'' whenever they appear; and
    f. By adding a new paragraph (b)(5) to read as follows:

Sec.  60.4151  Establishment of accounts.

* * * * *
    (b) * * *
* * * * *
    (2) Authorization of Hg authorized account representative and
alternate Hg authorized account representative. * * *
* * * * *
    (5) Delegation by Hg authorized account representative and
alternate Hg authorized account representative.
    (i) A Hg authorized account representative may delegate, to one or
more natural persons, his or her authority to make an electronic
submission to the Administrator provided for or required under this
section and Sec. Sec.  60.4152 through 60.4162.
    (ii) An alternate Hg authorized account representative may
delegate, to one or more natural persons, his or her authority to make
an electronic submission to the Administrator provided for or required
under this section and Sec. Sec.  60.4152 through 60.4162.
    (iii) In order to delegate authority to make an electronic
submission to the Administrator in accordance with paragraph (b)(5)(i)
or (ii) of this section, the Hg authorized account representative or
alternate Hg authorized account representative, as appropriate, must
submit to the Administrator a notice of delegation, in a format
prescribed by the Administrator, that includes the following elements:
    (A) The name, address, e-mail address, telephone number, and
facsimile transmission number (if any) of such Hg authorized account
representative or alternate Hg authorized account representative;
    (B) The name, address, e-mail address, telephone number, and,
facsimile transmission number (if any) of each such natural person
(referred to as an ``agent'');
    (C) For each such natural person, a list of the type or types of
electronic submissions under paragraph (b)(5)(i) or (ii) of this
section for which authority is delegated to him or her;
    (D) The following certification statement by such Hg authorized
account representative or alternate Hg authorized account
representative: ``I agree that any electronic submission to the
Administrator that is by an agent identified in this notice of
delegation and of a type listed for such agent in this notice of
delegation and that is made when I am a Hg authorized account
representative or alternate Hg authorized representative, as
appropriate, and before this notice of delegation is superseded by
another notice of delegation under 40 CFR 60.4151(b)(5)(iv) shall be
deemed to be an electronic submission by me.''; and
    (E) The following certification statement by such Hg authorized
account representative or alternate Hg authorized account
representative: ``Until this notice of delegation is superseded by
another notice of delegation under 40 CFR 60.4151 (b)(5)(iv), I agree
to maintain an e-mail account and to notify the Administrator
immediately of any change in my e-mail address unless all delegation of
authority under 40 CFR 60.4151(b)(5) is terminated.''

    (iv) A notice of delegation submitted under paragraph (b)(5)(iii)
of this section shall be effective, with regard to the Hg authorized
account representative or alternate Hg authorized account
representative identified in such notice, upon receipt of such notice
by the Administrator and until receipt by the Administrator of a
superseding notice of delegation submitted by such Hg authorized
account representative or alternate Hg authorized account
representative, as appropriate. The superseding notice of delegation
may replace any previously identified agent, add a new agent, or
eliminate entirely any delegation of authority.
    (v) Any electronic submission covered by the certification in
paragraph (b)(5(iii)(D) of this section and made in accordance with a
notice of delegation effective under paragraph (b)(5)(iv) of this
section shall be deemed to be an electronic submission by the Hg
designated representative or alternate Hg designated representative
submitting such notice of delegation.
* * * * *
    21. Section 60.4153 is amended as follows:
    a. In paragraph (a), by revising the words ``By December 1, 2006,''
to read ``By December 1, 2007,'' and by revising the words ``at a
source'' to read ``at the source'';
    b. In paragraph (b), by revising the words ``December 1, 2008'' to
read ``December 1, 2009'' and by removing the words ``or as determined
by the Administrator'';
    c. By revising paragraph (c); and
    d. In paragraph (d), by removing the words ``or determined by the
Administrator''.

Sec.  60.4153  Recordation of Hg allowance allocations.

* * * * *
    (c) By December 1, 2010 and December 1 of each year thereafter, the
Administrator will record in the Hg Budget source's compliance account
the Hg allowances allocated for the Hg Budget units at the source, as
submitted by the permitting authority in accordance with Sec.
60.4141(b), for the control period in the sixth year after the year of
the applicable deadline for recordation under this paragraph.
* * * * *

Sec.  60.4154  [Amended]

    22. Section 60.4154 is amended:
    a. In paragraph (a)(1), by revising the words ``prior year;'' to
read ``prior year; and'';
    b. In paragraph (a)(2), by revising the words ``Sec. Sec.  60.4160
through 60.4162 by the allowance transfer deadline for the control
period; and'' to read ``Sec. Sec.  60.4160 and 60.4161 by the allowance
transfer deadline for the control period.'';
    c. By removing paragraph (a)(3);
    d. In paragraph (b) introductory text, by revising the words
``Sec. Sec.  60.4160 through 60.4162'' to read ``Sec.  60.4161'';
    e. In paragraph (b)(1), by revising the words ``Sec. Sec.  60.4170
through 60.4176'' to read ``Sec. Sec.  60.4170 through 60.4175'';
    f. In paragraph (c)(2)(ii), by revising the words ``to any unit''
to read ``to any entity'';
    g. In paragraph (d)(2), by revising the word ``violation'' to read
``violations'';
    h. In paragraph (e), by revising the words ``under paragraph (b) or
(d)'' to read ``under paragraphs (b) and (d)''; and
    i. In paragraph (f)(2), by revising the words ``of this section.''
to read ``of this section, and record such deductions and transfers.''

Sec.  60.4157  [Amended]

    23. Section 60.4157 is amended in paragraphs (a) and (b) by
revising the words ``Sec.  60.4160 through 60.4162'' to read
``Sec. Sec.  60.4160 and 60.4161''.
    24. Section 60.4170 is amended as follows:
    a. In the introductory text and paragraphs (a)(1) and (a)(2), by
revising the words ``Sec. Sec.  60.4170 through 60.4176'' to read
``Sec. Sec.  60.4170 through 60.4175'';
    b. In paragraph (b) introductory text, by revising the words ``The
owner'' to read ``Except as provided in paragraph (e) of this section,
the owner'';
    c. In paragraph (c)(1), by removing the paragraph designation
``(1)'' and by revising the words ``Except as provided in paragraph
(c)(2) of this section, the owner'' to read ``The owner'';
    d. By removing paragraph (c)(2);
    e. In paragraph (d)(1), by revising the words ``Sec. Sec.  60.4171
through 60.4176'' to read ``Sec. Sec.  60.4171 through 60.4174'';
    f. In paragraph (d)(2), by revising the words ``Sec. Sec.  60.4171
through 60.4176'' to read ``Sec. Sec.  60.4171 through 60.4175'';
    g. In paragraph (d)(3), by revising the words ``the atmosphere'' to
read ``the atmosphere or heat input'' and by revising the words
``Sec. Sec.  60.4171 through 60.4176'' to read ``Sec. Sec.  60.4171
through 60.4175'';
    h. In paragraph (d)(4) introductory text, by revising the words
``this subpart'' to read ``this section and Sec. Sec.  60.4171 through
60.4175''
    i. In paragraph (d)(4)(ii), by revising the words ``Sec. Sec.
60.4171 through 60.4176'' to read ``Sec. Sec.  60.4171 through
60.4175''; and
    j. By adding a new paragraph (e) to read as follows:

Sec.  60.4170  General requirements.

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

Sec.  60.4171  [Amended]

    25. Section 60.4171 is amended as follows:
    a. In paragraph (c) introductory text, by revising the words
``(e.g.,'' to read ``(i.e.,'';
    b. In paragraph (c)(1), by revising the words ``each monitoring
system under Sec.  60.4170(a)(1)'' to read ``each continuous monitoring
system under Sec.  60.4170(a)(1)'';
    c. In paragraph (c)(3) introductory text, by revising the words
``apply the word `recertification' instead of'' to read ``replace'' and
revise the words ``and apply the word `recertified' instead of the word
`certified' '' to read ``with the word `recertification', replace the
word `certified' with the word `recertified','';
    d. In paragraph (c)(3)(v)(A), by revising the words ``Sec.
75.20(a)(4)(iii), or'' to read ``Sec.  75.20(a)(4)(iii) or'';
    e. In paragraph (c)(3)(v)(A)(1), by revising the words ``of this
chapter, and'' to read ``of this chapter.''; and
    f. In paragraph (e), by revising the words ``by the Administrator
and, if applicable, the permitting authority'' to read ``by the
Administrator''.

Sec.  60.4173  [Amended]

    26. Section 60.4173 is amended by removing 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''.
    27. Section 60.4174 is amended as follows:
    a. By revising paragraph (a);
    b. In paragraph (d)(3), by removing the words ``and Sec.
60.4176''; and
    c. In paragraph (e)(1), by removing the words ``Sec.  60.4176,'';
and
    d. Revising paragraph (e)(2).

Sec.  60.4174  Recordkeeping and reporting.

    (a) General provisions. The Hg designated representative shall
comply with all recordkeeping and reporting requirements in this
section, the applicable recordkeeping and reporting requirements of
Sec.  75.84 of this chapter, and the requirements of Sec.
60.4110(e)(1).
* * * * *
    (e) * * *
    (2) For a unit with add-on Hg emission controls, a flue gas
desulfurization system, a selective catalytic reduction system, or a
compact hybrid particulate collector system and

for all hours where Hg data are substituted in accordance with Sec.
75.34(a)(1) of this chapter,
    (i)(A) The Hg add-on emission controls, flue gas desulfurization
system, selective catalytic reduction system, or compact hybrid
particulate collector system were operating within the range of
parameters listed in the quality assurance/quality control program
under appendix B to part 75 of this chapter, or
    (B) With regard to a flue gas desulfurization system or a selective
catalytic reduction system, quality-assured SO2 emission
data recorded in accordance with part 75 of this chapter document that
the flue gas desulfurization system was operating properly or quality-
assured NOX emission data recorded in accordance with part
75 of this chapter document that the selective catalytic reduction
system was operating properly, as applicable, and
    (ii) The substitute data values do not systematically underestimate
Hg emissions.

Sec.  60.4175  [Amended]

    28. Section 60.4175 is amended by revising the words ``Hg unit'' to
read ``Hg Budget unit'' and by removing the words ``and Sec.  60.4176''
whenever they appear.

Sec.  60.4176  [Removed]

    29. Section 60.4176 is removed.

PART 62--[AMENDED]

    30. The authority citation for part 62 continues to read as
follows:

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

    31. Section 62.13 is amended by adding a new paragraph (f) to read
as follows:

Sec.  62.13  Federal plans.

* * * * *
    (f) The substantive requirements of the coal-fired electric steam
generating units mercury Federal plan are contained in subpart LLL of
this part. These requirements include emission limits, compliance
schedules, testing, monitoring, and reporting and recordkeeping
requirements.
    32. Add a new subpart LLL to read as follows:
Subpart LLL--Emission Guidelines and Compliance Times for Coal-Fired
Electric Steam Generating Units
Sec.

Hg Budget Trading Program General Provisions

62.15901 Purpose.
62.15902 Definitions.
62.15903 Measurements, abbreviations, and acronyms.
62.15904 Applicability.
62.15905 Retired unit exemption.
62.15906 Standard requirements.
62.15907 Computation of time.
62.15908 Appeal procedures.

Hg Designated Representative for Hg Budget Sources

62.15910 Authorization and responsibilities of Hg designated
representative.
62.15911 Alternate Hg designated representative.
62.15912 Changing Hg designated representative and alternate Hg
designated representative; changes in owners and operators.
62.15913 Certificate of representation.
62.15914 Objections concerning Hg designated representative.
62.15915 Delegation by Hg designated representative and alternate Hg
designated representative.

Permits

62.15920 General Hg budget trading program permit requirements.
62.15921 Submission of Hg budget permit applications.
62.15922 Information requirements for Hg budget permit applications.
62.15923 Hg budget permit contents and term.
62.15924 Hg budget permit revisions.
62.15930 [Reserved]

Hg Allowance Allocations

62.15940 State trading budgets.
62.15941 Timing requirements for Hg allowance allocations.
62.15942 Hg allowance allocations.
62.15943 Alternative of allocation of Hg allowances by permitting
authority.

Hg Allowance Tracking System

62.15950 [Reserved]
62.15951 Establishment of accounts.
62.15952 Responsibilities of Hg authorized account representative.
62.15953 Recordation of Hg allowance allocations.
62.15954 Compliance with Hg budget emissions limitation.
62.15955 Banking.
62.15956 Account error.
62.15957 Closing of general accounts.

Hg Allowance Transfers

62.15960 Submission of Hg allowance transfers.
62.15961 EPA recordation.
62.15962 Notification.

Monitoring and Reporting

62.15970 General requirements.
62.15971 Initial certification and recertification procedures.
62.15972 Out of control periods.
62.15973 Notifications.
62.15974 Recordkeeping and reporting.
62.15975 Petitions.
Appendix A to Subpart Lll of Part 62--States With Approved State
Plans Concerning Allocations

Subpart LLL--Emission Guidelines and Compliance Times for Coal-
Fired Electric Steam Generating Units

Hg Budget Trading Program General Provisions

Sec.  62.15901  Purpose.

    (a) This subpart sets forth the general provisions and the
designated representative, permitting, allowance, and monitoring
provisions for the federal mercury (Hg) Budget Trading Program, under
section 111 of the Clean Air Act (CAA), as a means of reducing national
Hg emissions.
    (b) Sources located in the following States, for which the
Administrator has made a finding of failure to submit an approvable
State plan under Sec.  60.24(h) of this chapter and have not
subsequently submitted to the Administrator an approved and currently
effective State plan under Sec.  60.24(h) of this chapter are subject
to this subpart: [Reserved].

Sec.  62.15902  Definitions.

    The terms used in this subpart shall have the meanings set forth in
this section as follows:
    Account number means the identification number given by the
Administrator to each Hg Allowance Tracking System account.
    Acid Rain emissions limitation means a limitation on emissions of
sulfur dioxide or nitrogen oxides under the Acid Rain Program.
    Acid Rain Program means a multi-state sulfur dioxide and nitrogen
oxides air pollution control and emission reduction program established
by the Administrator under title IV of the CAA and parts 72 through 78
of this chapter.
    Administrator means the Administrator of the United States
Environmental Protection Agency or the Administrator's duly authorized
representative.
    Allocate or allocation means, with regard to Hg allowances, the
determination by a permitting authority or the Administrator of the
amount of Hg allowances to be initially credited to a Hg Budget unit, a
new unit set-aside, or other entity.
    Allowance transfer deadline means, for a control period, midnight
of March 1 (if it is a business day), or midnight of the first business
day thereafter (if March 1 is not a business day), immediately
following the control period and is the deadline by which a Hg
allowance transfer must be submitted for recordation in a Hg Budget
source's compliance account in order to be used to meet the source's Hg
Budget emissions limitation for such

control period in accordance with Sec.  62.15954.
    Alternate Hg designated representative means, for a Hg Budget
source and each Hg Budget unit at the source, the natural person who is
authorized by the owners and operators of the source and all such units
at the source, in accordance with Sec. Sec.  62.15910 through 62.15915,
to act on behalf of the Hg designated representative in matters
pertaining to the Hg Budget Trading Program. If the Hg Budget source is
also a CAIR NOX source, then this natural person shall be
the same person as the alternate CAIR designated representative under
the CAIR NOX Annual Trading Program. If the Hg Budget source
is also a CAIR SO2 source, then this natural person shall be
the same person as the alternate CAIR designated representative under
the CAIR SO2 Trading Program. If the Hg Budget source is
also a CAIR NOX Ozone Season source, then this natural
person shall be the same person as the alternate CAIR designated
representative under the CAIR NOX Ozone Season Trading
Program. If the Hg Budget source is also subject to the Acid Rain
Program, then this natural person shall be the same person as the
alternate designated representative under the Acid Rain Program.
    Automated data acquisition and handling system or DAHS means that
component of the continuous emission monitoring system (CEMS), or other
emissions monitoring system approved for use under Sec. Sec.  62.15970
though 62.15975, designed to interpret and convert individual output
signals from pollutant concentration monitors, flow monitors, diluent
gas monitors, and other component parts of the monitoring system to
produce a continuous record of the measured parameters in the
measurement units required under Sec. Sec.  62.15970 through 62.15975.
    Boiler means an enclosed fossil- or other-fuel-fired combustion
device used to produce heat and to transfer heat to recirculating
water, steam, or other medium.
    Bottoming-cycle cogeneration unit means a cogeneration unit in
which the energy input to the unit is first used to produce useful
thermal energy and at least some of the reject heat from the useful
thermal energy application or process is then used for electricity
production.
    CAIR NOX Annual Trading Program means a multi-state nitrogen oxides
air pollution control and emission reduction program established by the
Administrator in accordance with subparts AA through II of part 97 of
this chapter and Sec. Sec.  51.123(p) and 52.35 of this chapter or
approved and administered by the Administrator in accordance with
subparts AA through II of part 96 of this chapter and Sec.
51.123(o)(1) or (2) of this chapter, as a means of mitigating
interstate transport of fine particulates and nitrogen oxides.
    CAIR NOX Ozone Season source means a source that is subject to the
CAIR NOX Ozone Season Trading Program.
    CAIR NOX Ozone Season Trading Program means a multi-
state nitrogen oxides air pollution control and emission reduction
program established by the Administrator in accordance with subparts
AAAA through IIII of part 97 of this chapter and Sec. Sec.  51.123(ee)
and 52.35 of this chapter or approved and administered by the
Administrator in accordance with subparts AAAA through IIII of part 96
of this chapter and Sec.  51.123(aa)(1) or (2) (and (bb)(1)), (bb)(2),
or (dd) of this chapter, as a means of mitigating interstate transport
of ozone and nitrogen oxides.
    CAIR NOX source means a source that is subject to the CAIR
NOX Annual Trading Program.
    CAIR SO2 source means a source that is subject to the CAIR
SO2 Trading Program.
    CAIR SO2 Trading Program means a multi-state sulfur dioxide air
pollution control and emission reduction program established by the
Administrator in accordance with subparts AAA through III of part 97 of
this chapter and Sec. Sec.  51.124(r) and 52.36 of this chapter or
approved and administered by the Administrator in accordance with
subparts AAA through III of part 96 of this chapter and Sec.
51.124(o)(1) or (2) of this chapter, as a means of mitigating
interstate transport of fine particulates and sulfur dioxide.
    Certifying official means:
    (1) For a corporation, a president, secretary, treasurer, or vice-
president of the corporation in charge of a principal business function
or any other person who performs similar policy or decision-making
functions for the corporation;
    (2) For a partnership or sole proprietorship, a general partner or
the proprietor respectively; or
    (3) For a local government entity or State, Federal, or other
public agency, a principal executive officer or ranking elected
official.
    Clean Air Act or CAA means the Clean Air Act, 42 U.S.C. 7401, et
seq.
    Coal means any solid fuel classified as anthracite, bituminous,
subbituminous, or lignite by the American Society of Testing and
Materials (ASTM) Standard Specification for Classification of Coals by
Rank D388-77, 90, 91, 95, 98a, or 99 (Reapproved 2004)[egr]1
(incorporated by reference, see Sec.  60.17).
    Coal-derived fuel means any fuel (whether in a solid, liquid, or
gaseous state) produced by the mechanical, thermal, or chemical
processing of coal.
    Coal-fired means combusting any amount of coal or coal-derived
fuel, alone or in combination with any amount of any other fuel, during
any year.
    Cogeneration unit means a stationary, coal-fired boiler or
stationary, coal-fired combustion turbine:
    (1) Having equipment used to produce electricity and useful thermal
energy for industrial, commercial, heating, or cooling purposes through
the sequential use of energy; and
    (2) Producing during the 12-month period starting on the date the
unit first produces electricity and during any calendar year after the
calendar year in which the unit first produces electricity:
    (i) For a topping-cycle cogeneration unit,
    (A) Useful thermal energy not less than 5 percent of total energy
output; and
    (B) Useful power that, when added to one-half of useful thermal
energy produced, is not less then 42.5 percent of total energy input,
if useful thermal energy produced is 15 percent or more of total energy
output, or not less than 45 percent of total energy input, if useful
thermal energy produced is less than 15 percent of total energy output.
    (ii) For a bottoming-cycle cogeneration unit, useful power not less
than 45 percent of total energy input.
    Combustion turbine means:
    (1) An enclosed device comprising a compressor, a combustor, and a
turbine and in which the flue gas resulting from the combustion of fuel
in the combustor passes through the turbine, rotating the turbine; and
    (2) If the enclosed device under paragraph (1) of this definition
is combined cycle, any associated duct burner, heat recovery steam
generator, and steam turbine.
    Commence commercial operation means, with regard to a unit:
    (1) To have begun to produce steam, gas, or other heated medium
used to generate electricity for sale or use, including test
generation, except as provided in Sec.  62.15905.
    (i) For a unit that is a Hg Budget unit under Sec.  62.15904 on the
later of November 15, 1990 or the date the unit commences commercial
operation as defined in paragraph (1) of this definition and that
subsequently undergoes a physical change (other than replacement of the
unit by a unit at the same source), such date shall remain the

date of commencement of commercial operation of the unit, which shall
continue to be treated as the same unit.
    (ii) For a unit that is a Hg Budget unit under Sec.  62.15904 on
the later of November 15, 1990 or the date the unit commences
commercial operation as defined in paragraph (1) of this definition and
that is subsequently replaced by a unit at the same source (e.g.,
repowered), such date shall remain the replaced unit's date of
commencement of commercial operation, and the replacement unit shall be
treated as a separate unit with a separate date for commencement of
commercial operation as defined in paragraph (1) or (2) of this
definition as appropriate.
    (2) Notwithstanding paragraph (1) of this definition and except as
provided in Sec.  62.15905, for a unit that is not a Hg Budget unit
under Sec.  62.15904 on the later of November 15, 1990 or the date the
unit commences commercial operation as defined in paragraph (1) of this
definition, the unit's date for commencement of commercial operation
shall be the date on which the unit becomes a Hg Budget unit under
Sec.  62.15904.
    (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 date of
commencement of commercial operation of the unit, which shall continue
to be treated as the same unit.
    (ii) For a unit with a date for commencement of commercial
operation as defined in paragraph (2) of this definition and that is
subsequently replaced by a unit at the same source (e.g., repowered),
such date shall remain the replaced unit's date of commencement of
commercial operation, and the replacement unit shall be treated as a
separate unit with a separate date for commencement of commercial
operation as defined in paragraph (1) or (2) of this definition as
appropriate.
    Commence operation means:
    (1) To have begun any mechanical, chemical, or electronic process,
including, with regard to a unit, start-up of a unit's combustion
chamber.
    (2) 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 date of commencement of
operation of the unit, which shall continue to be treated as the same
unit.
    (3) 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, such date shall remain the replaced
unit's date of commencement of operation, and the replacement unit
shall be treated as a separate unit with a separate date for
commencement of operation as defined in paragraph (1), (2), or (3) of
this definition, as appropriate.
    Common stack means a single flue through which emissions from 2 or
more units are exhausted.
    Compliance account means a Hg Allowance Tracking System account,
established by the Administrator for a Hg Budget source under
Sec. Sec.  62.15950 through 62.15957, in which any Hg allowance
allocations for the Hg Budget units at the source are initially
recorded and in which are held any Hg allowances available for use for
a control period in order to meet the source's Hg Budget emissions
limitation in accordance with Sec.  62.15954.
    Continuous emission monitoring system or CEMS means the equipment
required under Sec. Sec.  62.15970 through 62.15975 to sample, analyze,
measure, and provide, by means of readings recorded at least once every
15 minutes (using an automated data acquisition and handling system
(DAHS)), a permanent record of Hg emissions, stack gas volumetric flow
rate, stack gas moisture content, and oxygen or carbon dioxide
concentration (as applicable), in a manner consistent with part 75 of
this chapter. The following systems are the principal types of
continuous emission monitoring systems required under Sec. Sec.
62.15970 through 62.15975:
    (1) A flow monitoring system, consisting of a stack flow rate
monitor and an automated data acquisition and handling system and
providing a permanent, continuous record of stack gas volumetric flow
rate, in standard cubic feet per hour (scfh);
    (2) A Hg concentration monitoring system, consisting of a Hg
pollutant concentration monitor and an automated data acquisition and
handling system and providing a permanent, continuous record of Hg
emissions in micrograms per dry standard cubic meter ([mu]g/dscm);
    (3) A moisture monitoring system, as defined in Sec.  75.11(b)(2)
of this chapter and providing a permanent, continuous record of the
stack gas moisture content, in percent H2O.
    (4) A carbon dioxide monitoring system, consisting of a
CO2 concentration monitor (or an oxygen monitor plus
suitable mathematical equations from which the CO2
concentration is derived) and an automated data acquisition and
handling system and providing a permanent, continuous record of
CO2 emissions, in percent CO2; and
    (5) An oxygen monitoring system, consisting of an O2
concentration monitor and an automated data acquisition and handling
system and providing a permanent, continuous record of O2,
in percent O2.
    Control period means the period beginning January 1 of a calendar
year, except as provided in Sec.  62.15906(c)(2), and ending on
December 31 of the same year, inclusive.
    Emissions means air pollutants exhausted from a unit or source into
the atmosphere, as measured, recorded, and reported to the
Administrator by the Hg designated representative and as determined by
the Administrator in accordance with Sec. Sec.  62.15970 through
62.15975.
    Excess emissions means any ounce of mercury emitted by the Hg
Budget units at a Hg Budget source during a control period that exceeds
the Hg Budget emissions limitation for the source.
    General account means a Hg Allowance Tracking System account,
established under Sec.  62.15951, that is not a compliance account.
    Generator means a device that produces electricity.
    Gross electrical output means, with regard to a cogeneration unit,
electricity made available for use, including any such electricity used
in the power production process (which process includes, but is not
limited to, any on-site processing or treatment of fuel combusted at
the unit and any on-site emission controls).
    Heat input means, with regard to a specified period of time, the
product (in MMBtu/time) of the gross calorific value of the fuel (in
Btu/lb) divided by 1,000,000 Btu/MMBtu and multiplied by the fuel feed
rate into a combustion device (in lb of fuel/time), as measured,
recorded, and reported to the Administrator by the Hg designated
representative and determined by the Administrator in accordance with
Sec. Sec.  62.15970 through 62.15975 and excluding the heat derived
from preheated combustion air, recirculated flue gases, or exhaust from
other sources.
    Heat input rate means the amount of heat input (in MMBtu) divided
by unit operating time (in hr) or, with regard to a specific fuel, the
amount of heat input attributed to the fuel (in MMBtu) divided by the
unit operating time (in hr) during which the unit combusts the fuel.

    Hg allowance means a limited authorization issued by a permitting
authority or the Administrator under Sec. Sec.  62.15940 through
62.15943, or under provisions of a State plan that are approved under
Sec.  52.24(h)(6) of this chapter, to emit one ounce of mercury during
a control period of the specified calendar year for which the
authorization is allocated or of any calendar year thereafter under the
Hg Budget Trading Program. An authorization to emit mercury that is not
issued under Sec. Sec.  62.15940 through 62.15943 or under provisions
of a State plan that are approved under Sec.  52.24(h)(6) of this
chapter shall not be a ``Hg allowance.''
    Hg allowance deduction or deduct Hg allowances means the permanent
withdrawal of Hg allowances by the Administrator from a compliance
account, e.g., in order to account for a specified number of ounces of
total mercury emissions from all Hg Budget units at a Hg Budget source
for a control period, determined in accordance with Sec. Sec.  62.15970
through 62.15975, or to account for excess emissions.
    Hg Allowance Tracking System means the system by which the
Administrator records allocations, deductions, and transfers of Hg
allowances under the Hg Budget Trading Program. Such allowances will be
allocated, held, deducted, or transferred only as whole allowances.
    Hg Allowance Tracking System account means an account in the Hg
Allowance Tracking System established by the Administrator for purposes
of recording the allocation, holding, transferring, or deducting of Hg
allowances.
    Hg allowances held or hold Hg allowances means the Hg allowances
recorded by the Administrator, or submitted to the Administrator for
recordation, in accordance with Sec. Sec.  62.15950 through 62.15962,
in a Hg Allowance Tracking System account.
    Hg authorized account representative means, with regard to a
general account, a responsible natural person who is authorized, in
accordance with Sec. Sec.  62.15910 through 62.15915 and Sec. Sec.
62.15950 through 62.15957, to transfer and otherwise dispose of Hg
allowances held in the general account and, with regard to a compliance
account, the Hg designated representative of the source.
    Hg Budget emissions limitation means, for a Hg Budget source, the
equivalent, in ounces of Hg emissions in a control period, of the Hg
allowances available for deduction for the source under Sec.
62.15954(a) and (b) for the control period.
    Hg Budget permit means the legally binding and Federally
enforceable written document, or portion of such document, issued by
the permitting authority under Sec. Sec.  62.15920 through 62.15924,
including any permit revisions, specifying the Hg Budget Trading
Program requirements applicable to a Hg Budget source, to each Hg
Budget unit at the source, and to the owners and operators and the Hg
designated representative of the source and each such unit.
    Hg Budget source means a source that includes one or more Hg Budget
units.
    Hg Budget Trading Program means a multi-state Hg air pollution
control and emission reduction program established by the Administrator
in accordance with this subpart, Sec.  60.24(h)(9) of this chapter, and
Sec.  62.13(f) or approved and administered by the Administrator in
accordance with subpart HHHH of part 60 and Sec.  60.24(h)(6) of this
chapter, as a means of reducing national Hg emissions.
    Hg Budget unit means a unit that is subject to the Hg Budget
Trading Program under Sec.  62.15904.
    Hg designated representative means, for a Hg Budget source and each
Hg Budget unit at the source, the natural person who is authorized by
the owners and operators of the source and all such units at the
source, in accordance with Sec. Sec.  62.15910 through 62.15915, to
represent and legally bind each owner and operator in matters
pertaining to the Hg Budget Trading Program. If the Hg Budget source is
also a CAIR NOX source, then this natural person shall be
the same person as the CAIR designated representative under the CAIR
NOX Annual Trading Program. If the Hg Budget source is also
a CAIR SO2 source, then this natural person shall be the
same person as the CAIR designated representative under the CAIR
SO2 Trading Program. If the Hg Budget source is also a CAIR
NOX Ozone Season source, then this natural person shall be
the same person as the CAIR designated representative under the CAIR
NOX Ozone Season Trading Program. If the Hg Budget source is
also subject to the Acid Rain Program, then this natural person shall
be the same person as the designated representative under the Acid Rain
Program.
    Life-of-the-unit, firm power contractual arrangement means a unit
participation power sales agreement under which a utility or industrial
customer reserves, or is entitled to receive, a specified amount or
percentage of nameplate capacity and associated energy generated by any
specified unit and pays its proportional amount of such unit's total
costs, pursuant to a contract:
    (1) For the life of the unit;
    (2) For a cumulative term of no less than 30 years, including
contracts that permit an election for early termination; or
    (3) For a period no less than 25 years or 70 percent of the
economic useful life of the unit determined as of the time the unit is
built, with option rights to purchase or release some portion of the
nameplate capacity and associated energy generated by the unit at the
end of the period.
    Lignite means coal that is classified as lignite A or B according
to the American Society of Testing and Materials (ASTM) Standard
Specification for Classification of Coals by Rank D388-77, 90, 91, 95,
98a, or 99 (Reapproved 2004) [egr]\1\ (incorporated by reference, see
Sec.  60.17).
    Maximum design heat input means the maximum amount of fuel per hour
(in Btu/hr) that a unit is capable of combusting on a steady-state
basis as of the initial installation of the unit as specified by the
manufacturer of the unit.
    Monitoring system means any monitoring system that meets the
requirements of Sec. Sec.  62.15970 through 62.15975, including a
continuous emissions monitoring system, an alternative monitoring
system, or an excepted monitoring system under part 75 of this chapter.
    Municipal waste means ``municipal waste'' as defined in section
129(g)(5) of the Clean Air Act.
    Nameplate capacity means, starting from the initial installation of
a generator, the maximum electrical generating output (in MWe) that the
generator is capable of producing on a steady-state basis and during
continuous operation (when not restricted by seasonal or other
deratings) as of such installation as specified by the manufacturer of
the generator or, starting from the completion of any subsequent
physical change in the generator resulting in an increase in the
maximum electrical generating output (in MWe) that the generator is
capable of producing on a steady-state basis and during continuous
operation (when not restricted by seasonal or other deratings), such
increased maximum amount as of such completion as specified by the
person conducting the physical change.
    Operator means any person who operates, controls, or supervises a
Hg Budget unit or a Hg Budget source and shall include, but not be
limited to, any holding company, utility system, or plant manager of
such a unit or source.

    Ounce means 2.84 x 10\7\ micrograms. For the purpose of determining
compliance with the Hg Budget emissions limitation, total ounces of
mercury emissions for a control period shall be calculated as the sum
of all recorded hourly emissions (or the mass equivalent of the
recorded hourly emission rates) in accordance with Sec. Sec.  62.15970
through 62.15975, but with any remaining fraction of an ounce equal to
or greater than 0.50 ounces deemed to equal one ounce and any remaining
fraction of an ounce less than 0.50 ounces deemed to equal zero ounces.
    Owner means any of the following persons:
    (1) With regard to a Hg Budget source or a Hg Budget unit at a
source, respectively:
    (i) Any holder of any portion of the legal or equitable title in a
Hg Budget unit at the source or the Hg Budget unit;
    (ii) Any holder of a leasehold interest in a Hg Budget unit at the
source or the Hg Budget unit; or
    (iii) Any purchaser of power from a Hg Budget unit at the source or
the Hg Budget unit under a life-of-the-unit, firm power contractual
arrangement; provided that, unless expressly provided for in a
leasehold agreement, owner shall not include a passive lessor, or a
person who has an equitable interest through such lessor, whose rental
payments are not based (either directly or indirectly) on the revenues
or income from such Hg Budget unit; or
    (2) With regard to any general account, any person who has an
ownership interest with respect to the Hg allowances held in the
general account and who is subject to the binding agreement for the Hg
authorized account representative to represent the person's ownership
interest with respect to Hg allowances.
    Permitting authority means the State air pollution control agency,
local agency, other State agency, or other agency authorized by the
Administrator to issue or revise permits to meet the requirements of
the Hg Budget Trading Program or, if no such agency has been so
authorized, the Administrator.
    Potential electrical output capacity means 33 percent of a unit's
maximum design heat input, divided by 3,413 Btu/kWh, divided by 1,000
kWh/MWh, and multiplied by 8,760 hr/yr.
    Receive or receipt of means, when referring to the permitting
authority or the Administrator, to come into possession of a document,
information, or correspondence (whether sent in hard copy or by
authorized electronic transmission), as indicated in an official log,
or by a notation made on the document, information, or correspondence,
by the permitting authority or the Administrator in the regular course
of business.
    Recordation, record, or recorded means, with regard to Hg
allowances, the movement of Hg allowances by the Administrator into or
between Hg Allowance Tracking System accounts, for purposes of
allocation, transfer, or deduction.
    Reference method means any direct test method of sampling and
analyzing for an air pollutant as specified in Sec.  75.22 of this
chapter.
    Replacement, replace, or replaced means, with regard to a unit, the
demolishing of a unit, or the permanent shutdown and permanent
disabling of a unit, and the construction of another unit (the
replacement unit) to be used instead of the demolished or shutdown unit
(the replaced unit).
    Repowered means, with regard to a unit, replacement of a coal-fired
boiler with one of the following coal-fired technologies at the same
source as the coal-fired boiler:
    (1) Atmospheric or pressurized fluidized bed combustion;
    (2) Integrated gasification combined cycle;
    (3) Magnetohydrodynamics;
    (4) Direct and indirect coal-fired turbines;
    (5) Integrated gasification fuel cells; or
    (6) As determined by the Administrator in consultation with the
Secretary of Energy, a derivative of one or more of the technologies
under paragraphs (1) through (5) of this definition and any other coal-
fired technology capable of controlling multiple combustion emissions
simultaneously with improved boiler or generation efficiency and with
significantly greater waste reduction relative to the performance of
technology in widespread commercial use as of January 1, 2005.
    Sequential use of energy means:
    (1) For a topping-cycle cogeneration unit, the use of reject heat
from electricity production in a useful thermal energy application or
process; or
    (2) For a bottoming-cycle cogeneration unit, the use of reject heat
from useful thermal energy application or process in electricity
production.
    Serial number means, for a Hg allowance, the unique identification
number assigned to each Hg allowance by the Administrator.
    Solid waste incineration unit means a stationary, coal-fired boiler
or stationary, coal-fired combustion turbine that is a ``solid waste
incineration unit'' as defined in section 129(g)(1) of the Clean Air
Act.
    Source means all buildings, structures, or installations located in
one or more contiguous or adjacent properties under common control of
the same person or persons. For purposes of section 502(c) of the Clean
Air Act, a ``source,'' including a ``source'' with multiple units,
shall be considered a single ``facility.''
    State means:
    (1) For purposes of referring to a governing entity, one of the
States in the United States, the District of Columbia, or, if approved
for treatment as a State under part 49 of this chapter, the Navajo
Nation or Ute Indian Tribe where such governing entity is subject to a
finding by the Administrator of failure to submit an approvable State
plan under Sec.  60.24(h) of this chapter and has not subsequently
submitted to the Administrator an approved and currently effective
State plan under Sec.  60.24(h) of this chapter; or
    (2) For purposes of referring to geographic areas, one of the
States in the United States, the District of Columbia, the Navajo
Nation Indian country, or the Ute Tribe Indian country that is not
covered by an Administrator approved and currently effective State or
Tribal plan.
    Subbituminous means coal that is classified as subbituminous A, B,
or C, according to the American Society of Testing and Materials (ASTM)
Standard Specification for Classification of Coals by Rank D388-77, 90,
91, 95, 98a, or 99 (Reapproved 2004) \1\ (incorporated by reference,
see Sec.  60.17).
    Submit or serve means to send or transmit a document, information,
or correspondence to the person specified in accordance with the
applicable regulation:
    (1) In person;
    (2) By United States Postal Service; or
    (3) By other means of dispatch or transmission and delivery.
Compliance with any ``submission'' or ``service'' deadline shall be
determined by the date of dispatch, transmission, or mailing and not
the date of receipt.
    Title V operating permit means a permit issued under title V of the
Clean Air Act and part 70 or part 71 of this chapter.
    Title V operating permit regulations means the regulations that the
Administrator has approved or issued as meeting the requirements of
title V of the Clean Air Act and part 70 or 71 of this chapter.
    Topping-cycle cogeneration unit means a cogeneration unit in which
the energy input to the unit is first used to produce useful power,
including

electricity, and at least some of the reject heat from the electricity
production is then used to provide useful thermal energy.
    Total energy input means, with regard to a cogeneration unit, total
energy of all forms supplied to the cogeneration unit, excluding energy
produced by the cogeneration unit itself.
    Total energy output means, with regard to a cogeneration unit, the
sum of useful power and useful thermal energy produced by the
cogeneration unit.
    Unit means a stationary, coal-fired boiler or a stationary, coal-
fired combustion turbine.
    Unit operating day means a calendar day in which a unit combusts
any fuel.
    Unit operating hour or hour of unit operation means an hour in
which a unit combusts any fuel.
    Useful power means, with regard to a cogeneration unit, electricity
or mechanical energy made available for use, excluding any such energy
used in the power production process (which process includes, but is
not limited to, any on-site processing or treatment of fuel combusted
at the unit and any on-site emission controls).
    Useful thermal energy means, with regard to a cogeneration unit,
thermal energy that is:
    (1) Made available to an industrial or commercial process (not a
power production process), excluding any heat contained in condensate
return or makeup water;
    (2) Used in a heating application (e.g., space heating or domestic
hot water heating); or
    (3) Used in a space cooling application (i.e., thermal energy used
by an absorption chiller).
    Utility power distribution system means the portion of an
electricity grid owned or operated by a utility and dedicated to
delivering electricity to customers.

Sec.  62.15903  Measurements, abbreviations, and acronyms.

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

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.

Sec.  62.15904  Applicability.

    (a) Except as provided in paragraph (b) of this section:
    (1) The following units in a State shall be Hg Budget units, and
any source that includes one or more such units shall be a Hg Budget
source, subject to the requirements of this subpart: Any stationary,
coal-fired boiler or stationary, coal-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 boiler or stationary combustion turbine that,
under paragraph (a)(1) of this section, is not a Hg Budget unit begins
to combust coal or coal-derived fuel or to serve a generator with
nameplate capacity of more than 25 MWe producing electricity for sale,
the unit shall become a Hg Budget unit as provided in paragraph (a)(1)
of this section on the first date on which it both combusts coal or
coal-derived fuel and serves such generator.
    (b) The units in a State that meet the requirements set forth in
paragraph (b)(1)(i) or (b)(2) of this section shall not be Hg Budget
units:
    (1)(i) Any unit that is a Hg Budget unit under paragraph (a)(1) or
(2) of this section:
    (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 Hg Budget 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) Any unit that is a Hg Budget unit under paragraph (a)(1) or (2)
of this section, is a solid waste incineration unit combusting
municipal waste, and is subject to the requirements of:
    (i) A State Plan approved by the Administrator in accordance with
subpart Cb of part 60 of this chapter (emissions guidelines and
compliance times for certain large municipal waste combustors);
    (ii) Subpart Eb of part 60 of this chapter (standards of
performance for certain large municipal waste combustors);
    (iii) Subpart AAAA of part 60 of this chapter (standards of
performance for certain small municipal waste combustors);
    (iv) A State Plan approved by the Administrator in accordance with
subpart BBBB of part 60 of this chapter (emission guidelines and
compliance times for certain small municipal waste combustion units);
    (v) Subpart FFF, of part 62 of this chapter (Federal Plan
requirements for certain large municipal waste combustors); or
    (vi) Subpart JJJ of part 62 of this chapter (Federal Plan
requirements for certain small municipal waste combustion units).
    (c) A certifying official of an owner or operator of any combustion
device may petition the Administrator at any time for a determination
concerning the applicability, under paragraphs (a) and (b) of this
section, of the Hg Budget Trading Program to the combustion device.
    (1) Petition content. The petition shall be in writing and include
the identification of the combustion device and the relevant facts
about the combustion device. The petition and any other documents
provided to the Administrator in connection with the petition shall
include the following certification statement, signed by the certifying
official: ``I am authorized to make this submission on behalf of the
owners and operators of the combustion device for which the submission
is made. I certify under penalty of law that I have personally
examined, and am familiar with, the statements and information
submitted in this document and all its attachments. Based on my inquiry
of those individuals with primary responsibility for obtaining the
information, I certify that the statements and information are to the
best of my knowledge and belief true, accurate, and complete. I am
aware that there are significant penalties for submitting false
statements and information or omitting

required statements and information, including the possibility of fine
or imprisonment.''
    (2) Submission. The petition and any other documents provided in
connection with the petition shall be submitted to the Director of the
Clean Air Markets Division (or its successor), U.S. Environmental
Protection Agency, who will act on the petition as the Administrator's
duly authorized representative.
    (3) Response. The Administrator will issue a written response to
the petition and may request supplemental information relevant to such
petition. The Administrator's determination concerning the
applicability, under paragraphs (a) and (b) of this section, of the Hg
Budget Trading Program to the combustion device shall be binding on the
permitting authority unless the petition or other information or
documents provided in connection with the petition are found to have
contained significant, relevant errors or omissions.

Sec.  62.15905  Retired unit exemption.

    (a)(1) Any Hg Budget unit that is permanently retired shall be
exempt from the Hg Budget Trading Program, except for the provisions of
this section, Sec.  62.15902, Sec.  62.15903, Sec.  62.15904, Sec.
62.15906(c)(4) through (7), Sec.  62.15907, Sec.  62.15908, Sec. Sec.
62.15910 through 62.15915, and Sec. Sec.  62.15940 through 62.15962.
    (2) The exemption under paragraph (a)(1) of this section shall
become effective the day on which the Hg Budget unit is permanently
retired. Within 30 days of the unit's permanent retirement, the Hg
designated representative shall submit a statement to the permitting
authority otherwise responsible for administering any Hg Budget permit
for the unit and shall submit a copy of the statement to the
Administrator. The statement shall state, in a format prescribed by the
permitting authority, that the unit was permanently retired on a
specific date and will comply with the requirements of paragraph (b) of
this section.
    (3) After receipt of the statement under paragraph (a)(2) of this
section, the permitting authority will amend any permit under
Sec. Sec.  62.15920 through 62.15924 covering the source at which the
unit is located to add the provisions and requirements of the exemption
under paragraphs (a)(1) and (b) of this section.
    (b) Special provisions.
    (1) A unit exempt under paragraph (a) of this section shall not
emit any mercury, starting on the date that the exemption takes effect.
    (2) The Administrator or the permitting authority will allocate Hg
allowances under Sec. Sec.  62.15940 through 62.15943 to a unit exempt
under paragraph (a) of this section.
    (3) For a period of 5 years from the date the records are created,
the owners and operators of a unit exempt under paragraph (a) of this
section shall retain, at the source that includes the unit, records
demonstrating that the unit is permanently retired. The 5-year period
for keeping records may be extended for cause, at any time before the
end of the period, in writing by the permitting authority or the
Administrator. The owners and operators bear the burden of proof that
the unit is permanently retired.
    (4) The owners and operators and, to the extent applicable, the Hg
designated representative of a unit exempt under paragraph (a) of this
section shall comply with the requirements of the Hg Budget Trading
Program concerning all periods for which the exemption is not in
effect, even if such requirements arise, or must be complied with,
after the exemption takes effect.
    (5) A unit exempt under paragraph (a) of this section and located
at a source that is required, or but for this exemption would be
required, to have a title V operating permit shall not resume operation
unless the Hg designated representative of the source submits a
complete Hg Budget permit application under Sec.  62.15922 for the unit
not less than 18 months (or such lesser time provided by the permitting
authority) before the later of January 1, 2010 or the date on which the
unit resumes operation.
    (6) On the earlier of the following dates, a unit exempt under
paragraph (a) of this section shall lose its exemption:
    (i) The date on which the Hg designated representative submits a Hg
Budget permit application for the unit under paragraph (b)(5) of this
section;
    (ii) The date on which the Hg designated representative is required
under paragraph (b)(5) of this section to submit a Hg Budget permit
application for the unit; or
    (iii) The date on which the unit resumes operation, if the Hg
designated representative is not required to submit a Hg Budget permit
application for the unit.
    (7) For the purpose of applying monitoring, reporting, and
recordkeeping requirements under Sec. Sec.  62.15970 through 62.15975,
a unit that loses its exemption under paragraph (a) of this section
shall be treated as a unit that commences commercial operation on the
first date on which the unit resumes operation.

Sec.  62.15906  Standard requirements.

    (a) Permit requirements.
    (1) The Hg designated representative of each Hg Budget source
required to have a title V operating permit and each Hg Budget unit
required to have a title V operating permit at the source shall:
    (i) Submit to the permitting authority a complete Hg Budget permit
application under Sec.  62.15922 in accordance with the deadlines
specified in Sec.  62.15921; and
    (ii) Submit in a timely manner any supplemental information that
the permitting authority determines is necessary in order to review a
Hg Budget permit application and issue or deny a Hg Budget permit.
    (2) The owners and operators of each Hg Budget source required to
have a title V operating permit and each Hg Budget unit required to
have a title V operating permit at the source shall have a Hg Budget
permit issued by the permitting authority under Sec. Sec.  62.15920
through 62.15924 for the source and operate the source and the unit in
compliance with such Hg Budget permit.
    (3) The owners and operators of a Hg Budget source that is not
otherwise required to have a title V operating permit and each Hg
Budget unit that is not otherwise required to have a title V operating
permit are not required to submit a Hg Budget permit application, and
to have a Hg Budget permit, under Sec. Sec.  62.15920 through 62.15924
for such Hg Budget source and such Hg Budget unit.
    (b) Monitoring, reporting, and recordkeeping requirements.
    (1) The owners and operators, and the Hg designated representative,
of each Hg Budget source and each Hg Budget unit at the source shall
comply with the monitoring, reporting, and recordkeeping requirements
of Sec. Sec.  62.15970 through 62.15975.
    (2) The emissions measurements recorded and reported in accordance
with Sec. Sec.  62.15970 through 62.15975 shall be used to determine
compliance by each Hg Budget source with the Hg Budget emissions
limitation under paragraph (c) of this section.
    (c) Mercury emission requirements.
    (1) As of the allowance transfer deadline for a control period, the
owners and operators of each Hg Budget source and each Hg Budget unit
at the source shall hold, in the source's compliance account, Hg
allowances available for compliance deductions for the control period
under Sec.  62.15954(a) in an amount not less than the ounces of total
mercury emissions for the control period from all Hg Budget units at
the source, as determined in

accordance with Sec. Sec.  62.15970 through 62.15975.
    (2) A Hg Budget unit shall be subject to the requirements under
paragraph (c)(1) of this section for the control period starting on the
later of January 1, 2010 or the deadline for meeting the unit's monitor
certification requirements under Sec.  62.15970(b)(1) or (2) and for
each control period thereafter.
    (3) A Hg allowance shall not be deducted, for compliance with the
requirements under paragraph (c)(1) of this section, for a control
period in a calendar year before the year for which the Hg allowance
was allocated.
    (4) Hg allowances shall be held in, deducted from, or transferred
into or among Hg Allowance Tracking System accounts in accordance with
Sec. Sec.  62.15940 through 62.15962.
    (5) A Hg allowance is a limited authorization to emit one ounce of
mercury in accordance with the Hg Budget Trading Program. No provision
of the Hg Budget Trading Program, the Hg Budget permit application, the
Hg Budget permit, or an exemption under Sec.  62.15905 and no provision
of law shall be construed to limit the authority of the United States
to terminate or limit such authorization.
    (6) A Hg allowance does not constitute a property right.
    (7) Upon recordation by the Administrator under Sec. Sec.  62.15940
through 62.15962, every allocation, transfer, or deduction of a Hg
allowance to or from a Hg Budget source's compliance account is
incorporated automatically in any Hg Budget permit of the source.
    (d) Excess emissions requirements. If a Hg Budget source emits
mercury during any control period in excess of the Hg Budget emissions
limitation, then:
    (1) The owners and operators of the source and each Hg Budget unit
at the source shall surrender the Hg allowances required for deduction
under Sec.  62.15954(d)(1) and pay any fine, penalty, or assessment or
comply with any other remedy imposed, for the same violations, under
the Clean Air Act or applicable State law; and
    (2) Each ounce of such excess emissions and each day of such
control period shall constitute a separate violation of this subpart,
the Clean Air Act, and applicable State law.
    (e) Recordkeeping and reporting requirements.
    (1) Unless otherwise provided, the owners and operators of the Hg
Budget source and each Hg Budget unit at the source shall keep on site
at the source each of the following documents for a period of 5 years
from the date the document is created. This period may be extended for
cause, at any time before the end of 5 years, in writing by the
permitting authority or the Administrator.
    (i) The certificate of representation under Sec.  62.15913 for the
Hg designated representative for the source and each Hg Budget unit at
the source and all documents that demonstrate the truth of the
statements in the certificate of representation; provided that the
certificate and documents shall be retained on site at the source
beyond such 5-year period until such documents are superseded because
of the submission of a new certificate of representation under Sec.
62.15913 changing the Hg designated representative.
    (ii) All emissions monitoring information, in accordance with
Sec. Sec.  62.15970 through 62.15975, provided that to the extent that
Sec. Sec.  62.15970 through 62.15975 provides for a 3-year period for
recordkeeping, the 3-year period shall apply.
    (iii) Copies of all reports, compliance certifications, and other
submissions and all records made or required under the Hg Budget
Trading Program.
    (iv) Copies of all documents used to complete a Hg Budget permit
application and any other submission under the Hg Budget Trading
Program or to demonstrate compliance with the requirements of the Hg
Budget Trading Program.
    (2) The Hg designated representative of a Hg Budget source and each
Hg Budget unit at the source shall submit the reports required under
the Hg Budget Trading Program, including those under Sec. Sec.
62.15970 through 62.15975.
    (f) Liability.
    (1) Each Hg Budget source and each Hg Budget unit shall meet the
requirements of the Hg Budget Trading Program.
    (2) Any provision of the Hg Budget Trading Program that applies to
a Hg Budget source or the Hg designated representative of a Hg Budget
source shall also apply to the owners and operators of such source and
of the Hg Budget units at the source.
    (3) Any provision of the Hg Budget Trading Program that applies to
a Hg Budget unit or the Hg designated representative of a Hg Budget
unit shall also apply to the owners and operators of such unit.
    (g) Effect on other authorities. No provision of the Hg Budget
Trading Program, a Hg Budget permit application, a Hg Budget permit, or
an exemption under Sec.  62.15905 shall be construed as exempting or
excluding the owners and operators, and the Hg designated
representative, of a Hg Budget source or Hg Budget unit from compliance
with any other provision of the applicable, approved State
implementation plan, a Federally enforceable permit, or the Clean Air
Act.

Sec.  62.15907  Computation of time.

    (a) Unless otherwise stated, any time period scheduled, under the
Hg Budget Trading Program, to begin on the occurrence of an act or
event shall begin on the day the act or event occurs.
    (b) Unless otherwise stated, any time period scheduled, under the
Hg Budget Trading Program, to begin before the occurrence of an act or
event shall be computed so that the period ends the day before the act
or event occurs.
    (c) Unless otherwise stated, if the final day of any time period,
under the Hg Budget Trading Program, falls on a weekend or a State or
Federal holiday, the time period shall be extended to the next business
day.

Sec.  62.15908  Appeal procedures.

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

Hg Designated Representative for Hg Budget Sources

Sec.  62.15910  Authorization and responsibilities of Hg designated
representative.

    (a) Except as provided under Sec.  62.15911, each Hg Budget source,
including all Hg Budget units at the source, shall have one and only